[House Report 118-785]
[From the U.S. Government Publishing Office]


118th Congress    }                                 {    Rept. 118-785
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                 {          Part 1

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



 
           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2023

                                _______
                                

                December 3, 2024.--Ordered to be printed

                                _______
                                

 Mr. Westerman, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                      [To accompany H.J. Res. 96]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the joint resolution (H.J. Res. 96) to approve the 2023 
Agreement to Amend the U.S.-FSM Compact, and related 
agreements, between the Government of the United States of 
America and the Government of the Federated States of 
Micronesia, the 2023 Agreement to Amend the U.S.-RMI Compact, 
and certain related agreements between the Government of the 
United States of America and the Government of the Republic of 
the Marshall Islands, and the 2023 U.S.-Palau Compact Review 
Agreement between the Government of the United States of 
America and the Government of the Republic of Palau, to 
appropriate funds to carry out the agreements, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the joint resolution do 
pass.

                       Purpose of the Legislation

    The purpose of H.J. Res. 96 is to approve the 2023 
Agreement to Amend the U.S.-FSM Compact, and related 
agreements, between the Government of the United States of 
America and the Government of the Federated States of 
Micronesia, the 2023 Agreement to Amend the U.S.-RMI Compact, 
and certain related agreements between the Government of the 
United States of America and the Government of the Republic of 
the Marshall Islands, and the 2023 U.S.-Palau Compact Review 
Agreement between the Government of the United States of 
America and the Government of the Republic of Palau, to 
appropriate funds to carry out the agreements, and for other 
purposes.

                  Background and Need for Legislation


                        FREELY ASSOCIATED STATES

    In 1986, the Freely Associated States (FAS) emerged from 
the U.S. administered United Nations (UN) Trust Territory of 
the Pacific Islands in Micronesia that had been established 
after World War II.\1\ The Marshall Island group became the 
Republic of the Marshall Islands (RMI), and the Caroline Island 
group became the Republic of Palau and the Federated States of 
Micronesia (FSM).\2\ The FAS cover a maritime area comparable 
in size to the continental United States, govern over 1,000 
islands, and have a combined population of approximately 
100,000 people.\3\ The FAS economies face structural challenges 
similar to many other Pacific Island countries, including a 
lack of economies of scale, small land areas, limited natural 
and human resources, remote locations, and poor 
infrastructure.\4\ Each Freely Associated State is an 
independent nation with full membership in the UN and the 
Pacific Islands Forum.\5\
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    \1\``The Freely Associated States and Issues for Congress.'' 
Congressional Research Service. https://crsreports.congress.gov/
product/pdf/R/R46705.
    \2\``Marshall Islands.'' Encyclopedia Britannica. https://
www.britannica.com/place/Marshall-Islands and ``Caroline Islands.'' 
Encyclopedia Britannica. Accessed. https://www.britannica.com/place/
Caroline-Islands.
    \3\``The Freely Associated States and Issues for Congress.'' 
Congressional Research Service and ``Freely Associated States 2023.'' 
World Population Review. https://worldpopulationreview.com/country-
rankings/freely-associated-states.
    \4\For more information on the FAS see ``The Freely Associated 
States and Issues for Congress.'' Congressional Research Service. 
https://crsreports.congress.gov/product/pdf/R/R46573/2.
    \5\The Pacific Islands Forum. https://www.forumsec.org/who-we-
arepacific-islands-forum/ and ``Member States.'' United Nations. 
https://www.un.org/en/about-us/member-states#gotoF.
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    Federated States of Micronesia: The FSM is comprised of 
island chains located between the RMI and Palau. It has a 
federal constitutional system comprising the states of Pohnpei, 
Chuuk, Yap and Kosrae.\6\ The capital is located at Pohnpei.\7\ 
It derives revenues from licensed international fishing in its 
vast territorial waters and hosts a small but thriving tourism 
sector.\8\
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    \6\``Micronesia.'' Encyclopedia Britannica. https://
www.britannica.com/place/Micronesia-republic-Pacific-Ocean.
    \7\Id.
    \8\Id.
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    Republic of the Marshall Islands: The RMI consists of 
hundreds of islands in two parallel chains of coral atolls--the 
Ratak, or Sunrise, island chain to the east and the Ralik, or 
Sunset, island chain to the west--in the central Pacific 
Ocean.\9\ The chains lie about 125 miles (200 km) apart and 
extend some 800 miles northwest to southeast. The capital of 
the RMI is Majuro.\10\
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    \9\``Marshall Islands.'' Encyclopedia Britannica. https://
www.britannica.com/place/Marshall-Islands.
    \10\Id.
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    Republic of Palau: Palau is the western-most of the FAS, 
with its capital at Koror.\11\ It's internationally renowned 
``Rock Islands'' are a strong tourist draw, driving a thriving 
tourism industry.\12\ Palau is also host to a growing U.S. 
military presence that includes highly advanced radar and 
surveillance capabilities vital to U.S. regional strategic 
interests.\13\ Palau also derives revenues from licensed 
international fishing and subsistence agriculture.\14\
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    \11\``Palau.'' Encyclopedia Britannica. https://www.britannica.com/
place/Palau.
    \12\``Rock Islands Southern Lagoon.'' UNESCO World Heritage Centre. 
https://whc.unesco.org/en/list/1386/.
    \13\Wright, Stephen. ``US Plans Over-the-Horizon Radar Facility in 
Palau.'' Radio Free Asia. https://www.rfa.org/english/news/pacific/
palau-radar-01112023015016.html.
    \14\``Department of State: 2014 Investment Climate Statement.'' 
U.S. Department of State. https://2009-2017.state.gov/documents/
organization/228600.pdf.
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                      COMPACTS OF FREE ASSOCIATION

    The FAS are diplomatically, militarily, and economically 
connected to the U.S. through the Compacts of Free Association 
(COFA or COFAs), which are mutually beneficial agreements that 
serve as the primary line of defense against the People's 
Republic of China (PRC) influence operations in the Indo-
Pacific region in several ways. First, they serve as a reminder 
to the FAS that the U.S. is committed and values the special 
relationship formed under free association. Second, the 
Compacts enable the U.S. and the FAS to counter the PRC's 
attempts to undermine democracy through economic coercion.\15\ 
U.S. economic assistance to the FAS provides tools and 
stability for local governments to prevent democratic erosion.
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    \15\Shullman, David, ed. ``Chinese Malign Influence and the 
Corrosion of Democracy.'' International Republican Institute. https://
www.iri.org/wp-content/uploads/legacy/iri.org/
china_malign_influence_executive_summary_booklet.pdf.
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    Under the COFAs, the U.S. secures unprecedented and 
unmatched security and defense rights based in the FAS nations, 
in exchange for vital U.S. economic assistance and defense 
guarantees. These rights allow the U.S. to establish military 
facilities in the FAS in accordance with the COFA terms and to 
exercise the right of strategic denial. The right of strategic 
denial allows the U.S. to deny any foreign military, including 
the PRC, access to an FAS territory.\16\
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    \16\Hills, Howard. Free Association for Micronesia and the Marshall 
Islands: A Transitional Political Status Model. University of Hawaii 
Law Review, Vol. 27/1. Winter 2004.
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    Within the RMI, the U.S. has an army garrison located in 
Kwajalein Atoll, that features the Ronald Reagan Ballistic 
Missile Defense Test Site (RTS).\17\ The RTS is a vital 
strategic asset as it supports U.S. missile and missile defense 
testing, space launch, and space surveillance activities.\18\ 
In the FSM, the U.S. Department of Defense (DOD) is seeking to 
use Micronesia as a location for U.S. Air Force Agile Combat 
Employment operations.\19\ Palau is also host to a growing U.S. 
military presence that includes highly advanced radar and 
surveillance capabilities vital to U.S. regional strategic 
interests.\20\
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    \17\Army Space and Missile Defense Command. https://
www.smdc.army.mil/Portals/38/Documents/Publications/Fact_Sheets/
RTS.pdf.
    \18\``In Focus: The Compacts of Free Association.'' Congressional 
Research Service, August 15, 2022. https://crsreports.congress.gov/
product/pdf/IF/IF12194/1.
    \19\Id.
    \20\Wright, Stephen. ``US Plans Over-the-Horizon Radar Facility in 
Palau.'' Radio Free Asia, March 27, 2023. https://www.rfa.org/english/
news/pacific/palau-radar-01112023015016.html.
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    Additionally, the U.S. Coast Guard (USCG) holds an active 
presence in the region as its cutters and patrol boats tend to 
be better suited than U.S. Navy vessels for the waterways 
surrounding the FAS.\21\ The USCG 14th District regularly 
performs maritime safety and security missions, prevention of 
illegal unlicensed fishing, protection of natural resources, 
and emergency response in the region.\22\
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    \21\Maritime challenges and opportunities--Daniel K. Inouye Asia-
Pacific . . . Accessed June 7, 2023. https://dkiapcss.edu/wp-content/
uploads/2022/09/Blue-Pacific-Security-11-Long-Turvold-McCann-
MaritimeChallenges-1.pdf.
    \22\``United States Coast Guard Pacific Area: Strategic Intent.'' 
United States Coast Guard, January 2016. https://
www.pacificarea.uscg.mil/Portals/8/Documents/PACAREA%20
Strategic%20Intent%20-%202016%20-%20final%20for%20release.pdf.
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    Barring termination of the COFA by the parties according to 
the provisions of the agreement, the security and defense 
provisions of the COFA do not expire and continue indefinitely. 
However, the economic provisions that also sustain the COFA 
require periodic renewal.\23\ The COFA agreements with the RMI 
and the FSM came into force in Fiscal Year (FY) 1986 with 
economic assistance lasting for fifteen years, until FY 
2001.\24\ While renewal negotiations stalled for two years, 
grant assistance to the FSM and the RMI continued until the 
COFA agreements with both countries were renewed in 2003 for 
twenty years under a single piece of legislation from FY 2004 
through FY 2023 (2003 FSM & RMI COFA).\25\
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    \23\P.L. 99-239, 48 U.S.C. 1681 note, 59 Stat. 1031, Section 211, 
and H.J. Res. 626, Nov. 14, 1986, P.L. 99-658, 61 Stat. 3301, Section 
432.
    \24\P.L. 99-239, 48 U.S.C. 1681 note, 59 Stat. 1031, Section 
211(a).
    \25\Public Law 108-188. 117 Stat. 2720, Section 211(a).
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    In the case of Palau, the final terms for implementation of 
the COFA approved by Congress in 1986 were set forth in the 
Implementation of Compact of Free Association with Palau Act. 
The Palau COFA was ratified by Palau's National Congress in 
1993 and entered into force in 1994 with funding commencing in 
FY 1995 for 15 years, through FY 2009.\26\ The U.S. and Palau 
agreed to extend the economic assistance from the U.S. through 
a Compact Review Agreement (CRA) for 15 years, from FY 2010 
through FY 2024, also known as the ``2010 CRA.''\27\ However, 
Congress did not approve the agreement until 2017 and so Palau 
received discretionary appropriations from FY 2010 through FY 
2017 through a CR. The funding levels from the CR were less 
than what Palau was originally scheduled to receive under the 
2010 CRA. The 2010 CRA came into effect when Congress passed an 
agreement in 2017 to amend the CRA, referred to as the ``2010 
CRA Amendment.''\28\ The 2010 CRA Amendment provided the 
authorization for Palau to receive the full amount that was 
originally scheduled under the 2010 Palau CRA from FY 2018 
through FY 2024.
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    \26\``The Freely Associated States and Issues for Congress.'' 
Congressional Research Service. https://crsreports.congress.gov/
product/pdf/R/R46705 and H.J. Res. 626, Nov. 14, 1986, P.L. 99-658, 61 
Stat. 3301; P.L. 101-219, 103 Stat. 1870, December 12, 1989.
    \27\Agreement Following the Compact of Free Association Section 432 
Review, Signed at Honolulu, September 3, 2010.
    \28\P.L. 115-91, 131 Stat. 1687, December 12, 2017.
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    At the time the Committee considered this legislation, the 
U.S. and the FAS are seeking a renewal of their respective COFA 
agreements. While the COFA with Palau does not expire until the 
end of FY 2024, the Palau government requested to be renewed on 
a parallel track along with the RMI and the FSM.
    H.J. Res. 96, the ``Compact of Free Association Amendments 
Act of 2023'' (COFAA 2023) would approve the 2023 negotiated 
and updated COFAs with the FSM, Palau, and RMI, and related 
subsidiary agreements. This legislation is necessary because 
the economic provisions within the current COFAs\29\ with the 
RMI and the FSM expired in FY 2023, and the COFA\30\ with Palau 
will expire in FY 2024. Through the revised COFAs, economic 
assistance would be provided over the next 20 years to 
implement the 2023 amended COFA agreements with the FAS 
countries, and for continued U.S. Postal Service services to 
the FAS. The bill includes strengthened oversight and 
accountability measures for U.S. implementation and management 
of the COFAs economic provisions by authorizing the Comptroller 
General, Secretary of the Interior, Secretary of State, and the 
Postmaster General oversight responsibilities to implement the 
2023 COFA agreements. When these agreements are approved by 
Congress they will be in place until the end of FY 2043.
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    \29\P.L. 108-188.
    \30\``Agreement Between the Government of the United States of 
America and the Government of the Republic of Palau Following the 
Compact of Free Association Section 432 Review.'' U.S. Department of 
the Interior. Accessed December 11, 2023. https://www.doi.gov/sites/
doi.gov/files/uploads/us-palau-compact-review-agreement-signed-9-19-
2018.pdf.
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Key Provisions:

    The Compact of Free Association Amendments Act of 2023 
would approve and incorporate by reference agreements signed 
between the U.S. and the FAS for the new COFA period, from FY 
2024 through FY 2043. These agreements are as follows:
           2023 Agreement to Amend the U.S.-FSM 
        Compact: An agreement between the U.S. and the FSM 
        governments to amend the 2003 U.S.-FSM COFA by renewing 
        economic provisions. The agreement sets a new funding 
        schedule from FY 2024 through FY 2043 for the various 
        funding categories, including the FSM's trust fund, as 
        agreed upon between the FSM and U.S. governments. The 
        agreement also sets biennial reporting requirements on 
        the FSM government to send reports on the use of U.S. 
        economic assistance and the FSM governments' progress 
        in meeting program and economic goals.
           2023 U.S.-FSM Fiscal Procedures Agreement: 
        An agreement on the procedures for the implementation 
        of economic assistance provided to the FSM government 
        by the U.S. government. This agreement sets guidelines, 
        requirements, and conditions for the U.S. government 
        and the FSM government when implementing the U.S.-FSM 
        COFA economic provisions. The agreement sets parameters 
        for the various categories of sector grants, which are 
        funds dedicated for use for projects within sectors 
        that the U.S. and the FSM have designated as priorities 
        such as education, health, and private sector 
        development. This would ensure evaluation the FSM's 
        progress in meeting economic and financial objectives 
        and provides recommendations for increasing 
        effectiveness of U.S. Compact assistance.
           2023 U.S.-FSM Trust Fund Agreement: An 
        agreement on the rules and conditions of the trust fund 
        established by the U.S. for the FSM. The FSM's trust 
        fund would receive a total of $500 million for the 
        period from FY 2024 through FY 2043 under the U.S.-FSM 
        COFA. This agreement sets legal status, account 
        structure, funding levels and conditions for 
        distribution, audit and reporting requirements, and 
        withdrawal conditions for the FSM's trust fund.
           2023 U.S.-FSM Federal Programs and Services 
        Agreement (FPSA): An agreement on what U.S. Federal 
        programs and services would be provided to the FSM and 
        the conditions for those services. These Federal 
        programs and services will include the National Oceanic 
        and Atmospheric Administration's (NOAA) National 
        Weather Service, the Federal Aviation Administration's 
        (FAA) civil aviation services, the Federal Emergency 
        Management Agency (FEMA), the U.S. Postal Service 
        (USPS), and the Federal Deposit Insurance Corporation 
        (FDIC).
           2023 Agreement to Amend the U.S.-RMI 
        Compact: An agreement between the U.S. and the RMI 
        governments to amend the current U.S.-RMI COFA by 
        renewing economic provisions. This agreement would set 
        a new funding schedule from FY 2024 through FY 2043 for 
        U.S. economic assistance to the RMI including the RMI's 
        trust fund, agreed upon between the two governments. 
        The agreement would also set reporting requirements on 
        the RMI government to send reports on the RMI 
        government's progress in meeting program and economic 
        goals.
           2023 U.S.-RMI Fiscal Procedures Agreement: 
        An agreement on the procedures for the implementation 
        of economic assistance provided to the RMI government 
        by the U.S. government. This agreement sets guidelines, 
        requirements, and conditions for the U.S. government 
        and the RMI government when implementing the U.S.-RMI 
        COFA economic provisions. This agreement also sets 
        parameters for the various categories of sector grants 
        to ensure review of the audits and reports required 
        under the Compact.
           2023 U.S.-RMI Trust Fund Agreement: An 
        agreement on the rules and conditions of the trust fund 
        established by the U.S. for the RMI. $700 million for 
        the period of FY 2024 through FY 2043 under the U.S.-
        RMI COFA will be available for the RMI trust fund. This 
        agreement would set the legal status, account 
        structure, funding levels and conditions for 
        distribution, audit and reporting requirements, and 
        withdrawal conditions for the RMI's trust fund.
           2023 U.S.-Palau Compact Review Agreement: An 
        agreement between the U.S. and Palau governments 
        resulting from Section 432 of the U.S.-Palau compact. 
        The 2023 agreement was the result of the thirtieth 
        anniversary review of the Compact. The agreement sets a 
        new funding schedule from FY 2024 through FY 2043 for 
        the various funding categories, including Palau's trust 
        fund, agreed upon between the Palau and U.S. 
        governments. The agreement also sets the fiscal 
        procedures for the implementation of economic 
        assistance provisions, including setting annual 
        reporting requirements for Palau.

                      OVERSIGHT AND ACCOUNTABILITY

    The COFAA 2023 would also strengthen oversight and 
accountability measures for U.S. implementation and management 
of the COFA economic provisions. The COFAA 2023 builds upon 
existing measures within Public Law 108-188 and the 2010 Palau 
CRA, but also creates additional requirements for the 
Administration to report to Congress on COFA activities every 
four years.
    The COFAA 2023 requires the U.S. members of the Economic 
Management and Accountability Committees, the U.S.-FSM Joint 
Trust Fund Committee, and U.S.-RMI Joint Trust Fund Committee 
to have strong experience in finance and accounting and sets 
term limits for the committee members. Furthermore, the COFAA 
2023 would require the Secretary of the Interior to submit 
reports by these committees to Congress detailing the actions 
of the committees and their recommendations. The COFAA 2023 
would also require the members of the Economic Advisory Group 
appointed by the Secretary of the Interior to have 
qualifications in private sector business development, economic 
development, or national development.
    The COFAA 2023 also carries forward the authorities of the 
Comptroller General to carry out its oversight responsibilities 
under the COFAs. The COFAA 2023 would also place reporting 
requirements on the Comptroller General to submit to Congress a 
report on the economic performance of the FAS, the impact of 
U.S. economic assistance to the FAS, and the effectiveness of 
U.S. administrative oversight over the COFAs. This would expand 
the requirements set by Public Law 108-188 by including 
reporting on Palau. The COFAA 2023 also carries forward the 
authorities of the Secretary of the Interior and the Postmaster 
General to carry out oversight responsibilities.
    The COFAA 2023 would also require the Secretary of the 
Interior to submit to Congress a compilation of the COFA 
agreements with the FSM, the RMI, and Palau. This would improve 
the readability of the COFA agreements.
    The COFAs are essential to U.S. interests in and 
relationships with the FAS, and ultimately the Indo-Pacific 
region. Renewing economic assistance and continuing federal 
programs and services to the FAS reaffirms the United States' 
commitment to its allies and reliability as a partner. This 
commitment through the COFAs is essential to counter the PRC's 
malign influence and to maintain the United States' capacity to 
secure its interests.

                            Committee Action

    H.J. Res. 96 was introduced on November 2, 2023, by Rep. 
Bruce Westerman (R-AR). The bill was referred to the Committee 
on Natural Resources. The bill was also referred to the 
Committees on Foreign Affairs, Education and the Workforce, 
Veterans' Affairs, Oversight and Accountability, Agriculture, 
and Ways and Means. On October 19, 2023, the Subcommittee on 
Indian and Insular Affairs held a hearing on the discussion 
draft of the bill. On November 8, 2023, the Committee on 
Natural Resources met to consider the bill. The bill was 
ordered favorably reported to the House of Representatives by 
unanimous consent.

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Indian and Insular Affairs held 
on October 19, 2023.

                      Section-by-Section Analysis


Section 1. Short title

    This joint resolution may be cited as the ``Compact of Free 
Association Amendments Act of 2023''.

Section 2. Definitions

    Section 2 defines key terms used within the bill.

Section 3. Approval of 2023 Agreement to Amend the U.S.-FSM Compact, 
        2023 Agreement to Amend the U.S.-RMI Compact, 2023 U.S.-Palau 
        Compact Review Agreement, and Subsidiary Agreements

    Section 3 grants congressional approval of the 2023 Compact 
agreements between the U.S. and FSM, the U.S. and RMI, and the 
U.S. and Palau, respectively, and acknowledges submission of 
related subsidiary agreements.
            Section 3(a) Federated States of Micronesia
    Section 3(a) approves the 2023 Agreement to amend the U.S.-
FSM Compact, the 2023 U.S.-FSM Trust Fund Agreement and the 
2023 U.S.-FSM Fiscal Procedures Agreement, as provided to 
Congress, and the U.S.-FSM Federal Programs and Services 
Agreement. Further, the subsection authorizes the President to 
bring into force and implement these agreements.
            Section 3(b) Republic of the Marshall Islands
    Section 3(b) approves the 2023 Agreement to amend the U.S.-
RMI Compact, the 2023 U.S.-RMI Trust Fund Agreement, and the 
2023 U.S.-RMI Fiscal Procedures Agreement. Further, the 
subsection authorizes the President to bring into force and 
implement these agreements.
            Section 3(c) Republic of Palau
    Section 3(c) approves the 2023 U.S.-Palau Compact Review 
Agreement, as provided to Congress. Further, the subsection 
authorizes the President to bring into force and implement this 
agreement.
            Section 3(d) Amendments, changes, or termination to 
                    Compacts and certain agreements
    Section 3(d) provides that approval in an Act of Congress 
is required before any amendments or changes to or termination 
of the Compacts with FSM, RMI, or Palau, or certain subsidiary 
agreements to them, enter into force.
            Section 3(e) Entry into force of future amendments to 
                    subsidiary agreements
    Section 3(e) provides that a change to any ``subsidiary 
agreements'' accompanying the respective Compacts, shall not 
enter into force until 90 days after the President transmits to 
the President of the Senate and Speaker of the House of 
Representatives the relevant agreement to amend the subsidiary 
agreement, along with an explanation and a description of the 
reasons for it.

Section 4. Agreements with the Federated States of Micronesia

    Section 4 sets forth provisions related to the Federated 
States of Micronesia.
            Section 4(a) Law Enforcement Assistance
    Section 4(a) reaffirms that the U.S. shall, as appropriate, 
continue to provide non-reimbursable U.S. law enforcement 
technical and training assistance to the FSM, including 
training for postal inspection of illicit drugs and other 
contraband (as provided in section 102(a) of Public Law 108-
188).
            Section 4(b) United States appointees to Joint Economic 
                    Management Committee
    Section 4(b) requires that the three U.S. appointees to the 
Joint Economic Management Committee, as established under 
section 213 of the 2003 Amended U.S.-FSM Compact (Public Law 
108-188), shall be U.S. government officers or employees with 
qualifications in accounting, auditing, budget analysis, 
compliance, grant administration or program management. 
Further, this section states that the three U.S. members on the 
Committee shall be appointed by 1) the Secretary of State, in 
consultation with the Secretary of the Treasury, 2) the 
Secretary of the Interior, in consultation with the Secretary 
of the Treasury, and 3) the Interagency Group on Freely 
Associated States; and shall be appointed for a term of 2 years 
and may only be reappointed twice, serving a maximum of 6 
years.
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports required under the 2023 Amended 
U.S.-FSM Compact or relevant subsidiary agreement to Congress, 
including along with an attestation that the report either is 
complete and accurate or not submitted by the deadline provided 
for in the relevant agreement.
            Section 4(c) United States appointees to Joint Trust Fund 
                    Committee
    Section 4(c) requires that the three U.S. appointees to the 
Joint Trust Fund Committee, as established under section 
462(b)(5) of the 2003 Amended U.S.-FSM Compact (Public Law 108-
188), shall be U.S. government officers or employees with 
qualifications in accounting, auditing, budget analysis, 
compliance, financial investment, grant administration or 
program management. Further, this section states that the three 
U.S. members on the Committee shall be appointed by 1) the 
Secretary of State, 2) the Secretary of the Interior, and 3) 
the Secretary of the Treasury; and shall be appointed for a 
term of 2 years and may only be reappointed twice, serving a 
maximum of 6 years.
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports required under the 2023 Amended 
U.S.-FSM Compact or relevant subsidiary agreement to Congress, 
including along with an attestation that the report either is 
complete and accurate or not submitted by the deadline provided 
for in the relevant agreement.

Section 5. Agreements with and Other Provisions Related to the Republic 
        of the Marshall Islands

    Section 5 sets forth provisions related to the Republic of 
the Marshall Islands.
            Section 5(a) Law Enforcement Assistance
    Section 5(a) reaffirms that the U.S. may continue to 
provide non-reimbursable U.S. law enforcement technical and 
training assistance to the RMI, including training for postal 
inspection of illicit drugs and other contraband (as provided 
in section 103(a) of Public Law 108-188).
            Section 5(b) Espousal Provisions
    Section 5(b) reaffirms Congress' intent that Section 177 of 
the Compact of Free Association with the RMI (Public Law 99-
239) and the separate Section 177 Agreement constitute a full 
and final settlement with RMI of all claims described under 
Articles X and XI of the Section 177 Agreement, related to 
compensation for nuclear testing.
            Section 5(c) Certain Section 177 Agreement Provisions
    Section 5(c) restates provisions regarding changed 
circumstances and consultation described under Articles IX and 
XIII of the Section 177 Agreement, related to compensation for 
nuclear testing.
            Section 5(d) United States appointees to Joint Economic 
                    Management and Financial Accountability Committee
    Section 5(d) requires that the two U.S. appointees to the 
Joint Economic Management and Financial Accountability 
Committee, as established under section 214 of the 2003 Amended 
U.S.-RMI Compact (Public Law 108-188), shall be U.S. government 
officers or employees with qualifications in accounting, 
auditing, budget analysis, compliance, grant administration or 
program management. Further, this section states that the three 
U.S. members on the Committee shall be appointed by 1) the 
Secretary of State, in consultation with the Secretary of the 
Treasury and 2) the Secretary of the Interior, in consultation 
with the Secretary of the Treasury; and shall be appointed for 
a term of 2 years and may only be reappointed twice, serving a 
maximum of 6 years.
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports required under the 2023 Amended 
U.S.-RMI Compact or relevant subsidiary agreement to Congress, 
including along with an attestation that the report either is 
complete and accurate or not submitted by the deadline provided 
for in the relevant agreement.
            Section 5(e) United States appointees to Trust Fund 
                    Committee
    Section 5(e) requires that the three U.S. appointees to the 
Trust Fund Committee, as established under section 462(b)(5) of 
the 2003 Amended U.S.-RMI Compact (Public Law 108-188), shall 
be U.S. government officers or employees with qualifications in 
accounting, auditing, budget analysis, compliance, financial 
investment, grant administration or program management. 
Further, this section states that the three U.S. members on the 
Committee shall be appointed by 1) the Secretary of State, 2) 
the Secretary of the Interior, and 3) the Secretary of the 
Treasury; and shall be appointed for a term of 2 years and may 
only be reappointed twice, serving a maximum of 6 years.
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports required under the 2023 Amended 
U.S.-RMI Compact or relevant subsidiary agreement to Congress, 
including along with an attestation that the report either is 
complete and accurate or not submitted by the deadline provided 
for in the relevant agreement.
            Section 5(f) Four Atoll Health Care Program
    Section 5(f) repeats the language from Public Law 99-239 
and Public Law 108-188 regarding the Four Atoll Health Care 
Program and the administration of certain health care funds for 
the people of Bikini, Enewetak, Rongelap, and Utrik and their 
descendants.
            Section 5(g) Radiological Health Care Program
    Section 5(g) repeats the language from Public Law 99-239 
and Public Law 108-188 regarding the radiological health care 
for certain populations in the Republic of the Marshall Islands 
affected by U.S. nuclear tests.
            Section 5(h) Agricultural and Food Programs
    Section 5(g) repeats the language from Public Law 99-239 
and Public Law 108-188 regarding food and agricultural programs 
for certain populations in the Republic of the Marshall Islands 
affected by U.S. nuclear tests. This section also continues the 
Secretary of the Interior authority to carry out the Enewetak 
planting and agricultural maintenance program.
           This subsection authorizes the Secretary of 
        Agriculture to provide food programs to the people of 
        the Republic of the Marshall Islands.

Section 6. Agreements with and other provisions related to the Republic 
        of Palau

    Section 6 sets forth provisions related to the Republic of 
Palau.
            Section 6(a) Bilateral Economic Consultations
    Section 6(a) requires annual economic consultations to be 
by U.S. government officers or employees, as referred to in 
Article 8 of the 2023 U.S.-Palau Compact Review Agreement.
            Section 6(b) Economic Advisory Group
    Section 6(b) requires that the members of the Economic 
Advisory Group, referred to in Article 7 of the 2023 U.S.-Palau 
Compact Review Agreement, who are appointed by the Secretary of 
the Interior, have qualifications in private sector business 
development, economic development, or national development. The 
subsection also authorizes the Secretary of the Interior to use 
available funds for certain activities of the Economic Advisory 
Group.
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports completed by the Economic 
Advisory Group.
            Section 6(c) Reports to Congress
    This subsection requires that the Secretary of the Interior 
submit to Congress any reports required under the 2023 U.S.-
Palau Compact Review Agreement or relevant subsidiary agreement 
to Congress, including along with an attestation that the 
report either is complete and accurate or not submitted by the 
deadline provided for in the relevant agreement.

Section 7. Oversight Provisions

    Section 7 sets forth oversight provisions for the Compacts 
of Free Association between the United States and FSM, the 
United States and RMI, and the United States and Palau.
            Section 7(a) Authorities and Duties of the Comptroller 
                    General of the United States
    Section 7(a) authorizes the Comptroller General to carry 
out their oversight and audit responsibilities under the 2023 
Amended U.S.-FSM Compact and the U.S.-FSM subsidiary 
agreements, the 2023 Amended U.S.-RMI Compact and the U.S.-RMI 
subsidiary agreements, and the 2023 U.S.-Palau Compact Review 
Agreement and subsidiary agreements.
    This section also requires the Comptroller General to 
submit reports to Congress every 4 years on implementation of 
the 2023 Amended U.S.-FSM Compact, the 2023 Amended U.S.-RMI 
Compact, the 2023 U.S.-Palau Compact Review Agreement, and 
relevant subsidiary agreements; and the effectiveness of 
administrative oversight by the United States of the Freely 
Associated States.
            Section 7(b) Secretary of the Interior oversight authority
    Section 7(b) provides the Secretary of the Interior with 
the necessary authorities to fulfill their oversight 
responsibilities under the Act.
            Section 7(c) Postmaster General oversight authority
    Section 7(c) provides the Postmaster General the necessary 
authorities to fulfill their oversight responsibilities under 
the Act.
            Section 7(d) Interagency Group on Freely Associated States
    Section 7(d) requires that the President establish an 
Interagency Group on Freely Associated States, co-led by the 
Department of State and the Department of the Interior, to meet 
annually and to provide policy guidance and recommendations on 
implementation of the Compacts of Free Association with the 
FSM, RMI and Palau and on relations with those countries more 
generally. The subsection requires the Interagency Group to 
submit an annual report to Congress on its activities and 
recommendations during the applicable year.
            Section 7(e) Federal agency coordination
    Section 7(e) requires all federal agencies providing 
programs and services within the Freely Associated States to 
coordinate with the Secretary of the Interior and Secretary of 
State.
            Section 7(f) Foreign loans or debt
    Section 7(f) reaffirms that the United States Government is 
not responsible for foreign loans or debt of the FSM, RMI or 
Palau.
            Section 7(g) Compact Compilation
    Section 7(g) requires the Secretary of the Interior to 
compile the Compacts of Free Association with the Federated 
State of Micronesia, the Republic of the Marshall Islands, and 
the Republic of Palau and submit the Compact compilation to 
Congress.
            Section 7(h) Publication; Revision by the Office of the Law 
                    Revision Counsel
    Section 7(h) directs the Office of the Law Revision Counsel 
to revise the United States Code to incorporate amendments to 
the Compacts of Free Association with the Federated State of 
Micronesia, and the Republic of the Marshall Islands.

Section 8. United States Policy regarding the Freely Associated States

    Section 8 sets forth policies and authorizations to carry 
out Federal programs and services related to the Freely 
Associated States.
            Section 8(a) Authorization for Veterans' Services
    Section 8(a) authorizes the Department of Veterans Affairs 
to provide health and medical services to veterans living in 
the FAS.
            Section 8(b) Authorization of Education Programs
    Section 8(b) authorizes the Department of Education to 
continue to provide the FAS access to services and programs for 
elementary and secondary education, career and technical 
education, special education, and adult education. This section 
makes technical amendments to these Acts to implement the 
relevant 2023 Compact agreements.
    This subsection authorizes the Department of Education to 
continue to provide eligible institutions of higher education 
and students living in the FAS access to Federal Work Study 
Programs, Spell Grants, and Federal Supplemental Educational 
Opportunity Grants. This subsection grants in-state tuition to 
FAS citizens attending an institution of higher education in 
the United States or territories. This subsection also provides 
eligible institutions, schools, and organizations in the FAS 
access to competitive grants under the Higher Education Act of 
1965 (20 U.S.C. 1001).
    This subsection also amends the Head Start Act to provide 
eligibility to Head Start services for children and families 
living in the FAS.
    This subsection also requires the Secretary of the Interior 
to coordinate with the Secretary of Education and the Secretary 
of Health and Human Services to avoid duplication of economic 
assistance for education.
            Section 8(c) Authorization of Department of Defense 
                    Programs
    Section 8(c) reaffirms the Secretary of Defense authority 
regarding use of the Department of Defense medical facilities 
by patients referred from the FSM, RMI and Palau and the 
affected areas on a space available and reimbursable basis. 
Further, the subsection continues to authorize the Department 
of Defense to extend the Armed Services Vocational Aptitude 
Battery (ASVAB) Student Testing Program and the ASVAB Career 
Exploration Program to certain secondary schools in the, FSM, 
RMI and Palau.
            Section 8(d) Judicial Training
    Section 8(d) continues to authorize the Secretary of the 
Interior to provide financial assistance to train judges and 
officials of the judiciary in the FSM, RMI and Palau, in 
cooperation with the Pacific Islands Committee of the Ninth 
Circuit Judicial Council.
            Section 8(e) Eligibility for the Republic of Palau
    Section 8(e) extends eligibility to the Republic of Palau 
for certain federal programs and services for which FSM and RMI 
are already eligible pursuant to Public Law 108-188. This 
includes the National Health Service Corps, Legal Services 
Corporation, Public Health Service, the Rural Housing Service, 
the Small Business Administration, Economic Development 
Administration, Rural Utilities Services, Department of Labor's 
Workforce Investment Act, and the Department of Commerce's 
tourism and marine resource programs.
            Section 8(f) Compact impact fairness
    Section 8(f) restores eligibility for FAS citizens lawfully 
living in the United States by extending Federal benefits 
available to other lawful permanent residents.
            Section 8(g) Consultation with international financial 
                    institutions
    Section 8(g) states that the Secretary of the Treasury, in 
coordination with the Secretary of State and the Secretary of 
the Interior, shall consult with appropriate officials of the 
Asian Development Bank and relevant international financial 
institutions, with respect to overall economic conditions in 
the FSM, RMI, and Palau.
            Section 8(h) Chief of Mission
    Section 8(h) amends section 105(b)(5) of Public Law 108-188 
to specify that all U.S. Government employees in FSM, RMI and 
Palau fall under the authority of the United States Chief of 
Mission in that country, except for employees identified as 
excluded in U.S. law or Presidential directive.
            Section 8(i) Establishment of a unit for the Freely 
                    Associated States in the Bureau of East Asian and 
                    Pacific Affairs of the Department of State and 
                    Increasing Personnel Focused on Oceania
    Section 8(i) establishes a unit to manage bilateral 
relations with the Freely Associated States in the Bureau of 
East Asian and Pacific Affairs of the Department of State and 
encourages the Secretary to dedicate additional personnel to 
support the work of this unit and relations with the Pacific 
Islands.
            Section 8(j) Technical Assistance
    Section 8(j) continues the authorization for certain 
Federal agencies pursuant to section 224 of the 2023 Compacts 
to provide non-reimbursable technical assistance related to 
historic preservation at the request of the FSM and RMI and 
amends section 105(j) of Public Law 108-188 to extend 
eligibility of this technical assistance to Palau.
            Section 8(k) Continuing Trust Territory Authorization
    Repeats the language from Public Law 99-239 and Public Law 
108-188 regarding any continuing authorizations from the Trust 
Territory period.
            Section 8(l) Technical amendments
    Section 8(l) makes technical amendments to Section 2(f) of 
the Public Health Service Act (42 U.S.C. 201(f)) and section 
104(e) of Public Law 108-188.

Section 9. Additional authorities

    Section 9 sets forth additional authorities related to the 
Compacts.
            Section 9(a) Agencies, departments, and instrumentalities
    Section 9(a) provides authorization for Federal agencies 
and departments to carry out international obligations under 
the 2023 Compact agreements and requires that appropriations to 
carry out these international obligations shall be made 
directly to the Federal agencies, departments, and 
instrumentalities.
            Section 9(b) Additional assistance
    Section 9(b) states that any additional assistance provided 
pursuant to sections 4(a), 5(a), 6(b) and 8 of this Act shall 
be in addition to the amounts paid to the FAS under the 
Compacts and shall not be charged against them.
            Section 9(c) Remaining balances
    Section 9(c) provides authority to program remaining 
balances of funds appropriated to carry out the 2003 amended 
Compacts with FSM and Palau (Public Law 108-188) and the 2010 
Compact Review Agreement with Palau (Public Law 115-141) 
pursuant to the 2023 Compact agreements.
            Section 9(d) Grants
    Section 9(d) clarifies that funding provided under the 2023 
Compact agreements may be provided as grants for purposes of 
implementation and clarifies authority to place federal funds 
in interest bearing accounts.
            Section 9(e) Rule of construction
    Section 9(e) clarifies that the provisions of prior Compact 
of Free Association Acts (Public Law 99-239; Public Law 108-
188; Public Law 115-91; and Public Law 115-141) are not amended 
by this Act unless otherwise stated.
            Section 9(f) Clarification relating to appropriated funds

Section 10. Compact appropriations

    Section 10 provides $7.1 billion in mandatory funding over 
the next 20 years for the Compacts with the Marshall Islands, 
Micronesia, and Palau, which includes $6.5 billion in economic 
assistance to the FAS and $634 million for continued United 
States Postal Service in the FAS.
            Section 10(a) Funding for Activities of the Secretary of 
                    the Interior
    Section 10(a) states that there is appropriated to the 
Department of the Interior's Compact of Free Association 
account for FY 2024 to FY 2043 to carry out the 2023 Amended 
U.S.-FSM Compact, the 2023 Amended U.S.-RMI Compact, and the 
2023 U.S.-Palau Compact Review Agreement ($6.5 billion total 
over 20 years).
            Section 10(b) Funding for Activities of the United States 
                    Postal Service
    Section 10(b) states that there is appropriated to the 
United States Postal Service for FY 2024 to FY 2043 to carry 
out their obligations under the 2023 Amended U.S.-FSM Compact, 
the 2023 Amended U.S.-RMI Compact, and the 2023 U.S.-Palau 
Compact Review Agreement ($634 million total over 20 years).
            Section 10(c) Funding for Judicial Training
    Section 10(c) states that there is appropriated to the 
Secretary of the Interior to carry out Section 8(d) $550,000 
for each of FY 2024 through FY 2043 ($11 million total over 20 
years).

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    The bill would
           Amend each Compact of Free Association 
        (COFA) and the subsidiary agreements between the United 
        States and the Federated States of Micronesia, Republic 
        of the Marshall Islands, and Republic of Palau, often 
        called freely associated states (FAS)
           Provide funds for the FAS over the 2024-2043 
        period
           Appropriate funds each year for the Postal 
        Service to provide service in the FAS
           Expand access to certain mandatory programs 
        for COFA migrants living in the United States
           Authorize the Department of Veterans Affairs 
        to cover some medical costs for certain veterans in the 
        FAS
           Provide training for judges in the FAS
    Estimated budgetary effects would mainly stem from
           Mandatory spending for grants and trust fund 
        contributions for the FAS
           Mandatory spending to provide mail service 
        to the FAS

                TABLE 1.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.J. RES. 96, THE COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2023
                                   As ordered reported by the House Committee on Natural Resources on November 8, 2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      By fiscal year, millions of dollars--
                                                       -------------------------------------------------------------------------------------------------
                                                                                                                                         2024-    2024-
                                                         2024    2025    2026    2027    2028    2029    2030    2031    2032    2033     2028     2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Federated States of Micronesia
    Budget Authority..................................     263     261       9       8       6       4       2       1      -1      -3      547      550
    Estimated Outlays.................................     263     261       9       8       6       4       2       1      -1      -3      547      550
Republic of the Marshall Islands
    Budget Authority..................................     411     172     172      72     -29     -29     -29     -29     -29     -29      798      653
    Estimated Outlays.................................     411     172     172      72     -29     -29     -29     -29     -29     -29      798      653
Republic of Palau
    Budget Authority..................................      90      91      41      42      42      43      34      34      35      36      306      488
    Estimated Outlays.................................      90      91      41      42      42      43      34      34      35      36      306      488
Postal Service Funda
    Budget Authority..................................      32      32      32      32      32      32      32      32      32      32      160      320
    Estimated Outlays.................................      29      32      32      32      32      32      32      32      32      32      157      317
Compact Impact Fairness
    Estimated Budget Authority........................       6      14      20      27      31      34      36      39      43      47       98      297
    Estimated Outlays.................................       6      14      20      27      31      34      36      39      43      47       98      297
Veterans' Health Care
    Estimated Budget Authority........................       2       3       3       4       4       5       5       6       7       8       16       47
    Estimated Outlays.................................       2       3       3       4       4       5       5       6       7       8       16       47
Judicial Training
    Budget Authority..................................       1       *       1       *       1       *       1       *       1       1        3        6
    Estimated Outlays.................................       1       *       1       *       1       *       1       *       1       1        3        6
Total Changes in Direct Spending
    Estimated Budget Authority........................     805     573     278     185      87      89      81      83      88      92    1,928    2,361
    Estimated Outlays.................................     802     573     278     185      87      89      81      83      88      92    1,925    2,358
    On-Budget Outlays.................................     805     573     278     185      87      89      81      83      88      92    1,928    2,361
    Off-Budget Outlays................................      -3       0       0       0       0       0       0       0       0       0       -3       -3
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO has not estimated the effects of spending subject to appropriation; * = between zero and $500,000.
a Includes on-budget and off-budget effects. Postal Service cash flows are recorded in the Postal Service Fund in the federal budget and are classified
  as off-budget. Section 10 of the legislation would require funds from the Treasury to be deposited into the Postal Service Fund; that transfer would
  be classified as an on-budget transaction.

    H.J. Res. 96 would amend each Compact of Free Association 
(COFA) and the subsidiary agreements between the United States 
and the Federated States of Micronesia, Republic of the 
Marshall Islands, and Republic of Palau, often called freely 
associated states (FAS). The compacts and subsidiary agreements 
govern political, economic, and military relationships between 
the United States and those entities.
    Direct Spending: CBO estimates that enacting H.J. Res. 96 
would increase direct spending by about $2.4 billion over the 
2024-2033 period, relative to CBO's baseline projections. In 
keeping with section 257 of the Balanced Budget and Emergency 
Deficit Control Act of 1985, the cost of extending current 
spending under those COFAs between the Federated States of 
Micronesia and the Republic of the Marshall Islands (about $2.3 
billion through 2033) are included in CBO's baseline and 
therefore are not included in the costs attributable to this 
legislation.
    Federated States of Micronesia. Over the 2024-2033 period, 
H.J. Res. 96 would provide $550 million in additional grants 
and trust fund contributions and would increase spending by the 
same amount.
    Republic of the Marshall Islands. Over the 2024-2033 
period, H.J. Res. 96 would provide an additional $653 million 
in funds available for grants, trust fund contributions, 
development in the Kwajalein Atoll, and establishment of a 
museum and would increase spending by the same amount.
    Republic of Palau. Over the 2024-2033 period, H.J. Res. 96 
would provide $488 million in grant funds and would increase 
spending by the same amount.
    Postal Service Fund. Section 10 would appropriate $32 
million annually to the Postal Service to provide service in 
each FAS. Those amounts would be deposited into the Postal 
Service Fund. Cash flows for that fund are classified as off-
budget direct spending. Using historical spending patterns for 
similar activities, CBO estimates that enacting H.J. Res. 96 
would increase direct spending by $317 million over the 2024-
2033 period.
    Compact Impact Fairness. Section 8(f) would expand access 
to certain federal programs for COFA migrants living in the 
United States. In particular, CBO estimates that, over the 
2024-2033 period, spending would increase by $84 million for 
Supplemental Security Income, by $106 million for the 
Supplemental Nutrition Assistance Program, and by $19 million 
for federal student loans. CBO estimates that Medicaid outlays 
would increase by $88 million over the same period because some 
people newly receiving Supplemental Security Income would be 
eligible for Medicaid. Those estimates are based on current 
participation rates among COFA migrants in the United States 
and on projected changes in that population over the 2024-2033 
period.
    Veterans' Health Care. H.J. Res. 96 would authorize the 
Department of Veterans Affairs (VA) to pay for hospital care 
and medical care through contracts, reimbursement, or direct 
care for certain veterans ineach FAS. The legislation also 
would authorize VA to pay for travel and related expenses for 
certain veterans traveling in, to, or from an FAS to receive 
authorized care. CBO estimates that enacting those provisions 
would increase direct spending by $47 million over the 2024-
2033 period.
    Judicial Training. Section 10 would appropriate $550,000 
annually to the Department of the Interior to train judges in 
each FAS.
    Spending subject to appropriation: H.J. Res. 96 also would 
reauthorize services that are currently provided by the federal 
government to each FAS and which are funded through annual 
appropriations. CBO has not estimated the discretionary costs 
of implementing the legislation.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to approve the 2023 Agreement to 
Amend the U.S.-FSM Compact, and related agreements, between the 
Government of the United States of America and the Government 
of the Federated States of Micronesia, the 2023 Agreement to 
Amend the U.S.-RMI Compact, and certain related agreements 
between the Government of the United States of America and the 
Government of the Republic of the Marshall Islands, and the 
2023 U.S.-Palau Compact Review Agreement between the Government 
of the United States of America and the Government of the 
Republic of Palau, to appropriate funds to carry out the 
agreements, and for other purposes.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    According to the Congressional Budget Office, H.J. Res. 96 
contains no unfunded mandates as defined by the Unfunded 
Mandates Reform Act.

                           Existing Programs

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                Preemption of State, Local or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

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

                      TITLE 38, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 1--GENERAL

           *       *       *       *       *       *       *


Sec. 111. Payments or allowances for beneficiary travel

  (a) Under regulations prescribed by the President pursuant to 
the provisions of this section, the Secretary may pay the 
actual necessary expense of travel (including lodging and 
subsistence), or in lieu thereof an allowance based upon 
mileage (at a rate of 41.5 cents per mile), of any person to or 
from a Department facility or other place in connection with 
vocational rehabilitation, counseling required by the Secretary 
pursuant to chapter 34 or 35 of this title, or for the purpose 
of examination, treatment, or care. Actual necessary expense of 
travel includes the reasonable costs of airfare if travel by 
air is the only practical way to reach a Department facility. 
In addition to the mileage allowance authorized by this 
section, there may be allowed reimbursement for the actual cost 
of ferry fares, and bridge, road, and tunnel tolls.
  (b)(1) Except as provided in subsection (c) of this section 
and notwithstanding subsection (g)(2) of this section or any 
other provision of law, if, with respect to any fiscal year, 
the Secretary exercises the authority under this section to 
make any payments, the Secretary shall make the payments 
provided for in this section to or for the following persons 
for travel during such fiscal year for examination, treatment, 
or care for which the person is eligible:
          (A) A veteran or other person whose travel is in 
        connection with treatment or care for a service-
        connected disability.
          (B) A veteran with a service-connected disability 
        rated at 30 percent or more.
          (C) A veteran receiving pension under section 1521 of 
        this title.
          (D) A veteran (i) who is not traveling by air and 
        whose annual income (as determined under section 1503 
        of this title) does not exceed the maximum annual rate 
        of pension which would be payable to such veteran if 
        such veteran were eligible for pension under section 
        1521 of this title, or (ii) who is determined, under 
        regulations prescribed by the Secretary, to be unable 
        to defray the expenses of the travel for which payment 
        under this section is claimed.
          (E) Subject to paragraph (3) of this subsection, a 
        veteran or other person whose travel to or from a 
        Department facility is medically required to be 
        performed by a special mode of travel and who is 
        determined under such regulations to be unable to 
        defray the expenses of the travel for which payment 
        under this section is claimed.
          (F) A veteran whose travel to a Department facility 
        is incident to a scheduled compensation and pension 
        examination.
          (G) A veteran with vision impairment, a veteran with 
        a spinal cord injury or disorder, or a veteran with 
        double or multiple amputations whose travel is in 
        connection with care provided through a special 
        disabilities rehabilitation program of the Department 
        (including programs provided by spinal cord injury 
        centers, blind rehabilitation centers, and prosthetics 
        rehabilitation centers) if such care is provided--
                  (i) on an in-patient basis; or
                  (ii) during a period in which the Secretary 
                provides the veteran with temporary lodging at 
                a facility of the Department to make such care 
                more accessible to the veteran.
  (2) The Secretary may make payments provided for in this 
section to or for any person not covered by paragraph (1) of 
this subsection for travel by such person for examination, 
treatment, or care. Such payments shall be made in accordance 
with regulations which the Secretary shall prescribe.
  (3)(A) Except as provided in subparagraph (B) of this 
paragraph, the Secretary shall not make payments under this 
section for travel performed by a special mode of travel unless 
(i) the travel by such mode is medically required and is 
authorized by the Secretary before the travel begins, or (ii) 
the travel by such mode is in connection with a medical 
emergency of such a nature that the delay incident to obtaining 
authorization from the Secretary to use that mode of travel 
would have been hazardous to the person's life or health.
  (B) In the case of travel by a person to or from a Department 
facility by special mode of travel, the Secretary may provide 
payment under this section to the provider of the 
transportation by special mode before determining the 
eligibility of such person for such payment if the Secretary 
determines that providing such payment is in the best interest 
of furnishing care and services. Such a payment shall be made 
subject to subsequently recovering from such person the amount 
of the payment if such person is determined to have been 
ineligible for payment for such travel.
  (C) In the case of transportation of a person to or from a 
Department facility by ambulance, the Secretary may pay the 
provider of the transportation the lesser of the actual charge 
for the transportation or the amount determined by the fee 
schedule established under section 1834(l) of the Social 
Security Act (42 U.S.C. 1395m(l)) unless the Secretary has 
entered into a contract for that transportation with the 
provider.
  (4) In determining for purposes of subsection (a) whether 
travel by air is the only practical way for a veteran to reach 
a Department facility, the Secretary shall consider the medical 
condition of the veteran and any other impediments to the use 
of ground transportation by the veteran.
  (c)(1) Except as otherwise provided in this subsection, the 
Secretary, in making a payment under this section to or for a 
person described in subparagraph (A), (B), (C), or (D) of 
subsection (b)(1) of this section for travel for examination, 
treatment, or care, shall deduct from the amount otherwise 
payable an amount equal to $3 for each one-way trip.
  (2) In the case of a person who is determined by the 
Secretary to be a person who is required to make six or more 
one-way trips for needed examination, treatment, or care during 
the remainder of the calendar month in which the determination 
is made or during any subsequent calendar month during the one-
year period following the last day of the month in which the 
determination is made, the amount deducted by the Secretary 
pursuant to paragraph (1) of this subsection from payments for 
trips made to or from such facility during any such month shall 
not exceed $18.
  (3) No deduction shall be made pursuant to paragraph (1) of 
this subsection in the case of a person whose travel to or from 
a Department facility is performed by a special mode of travel 
for which payment under this section is authorized under 
subsection (b)(3) of this section.
  (4) The Secretary may waive the deduction requirement of 
paragraph (1) of this subsection in the case of the travel of 
any veteran for whom the imposition of the deduction would 
cause severe financial hardship. The Secretary shall prescribe 
in regulations the conditions under which a finding of severe 
financial hardship is warranted for purposes of this paragraph.
  (d) Payment of the following expenses or allowances in 
connection with vocational rehabilitation, counseling, or upon 
termination of examination, treatment, or care, may be made 
before the completion of travel:
          (1) The mileage allowance authorized by subsection 
        (a) of this section.
          (2) Actual local travel expenses.
          (3) The expense of hiring an automobile or ambulance, 
        or the fee authorized for the services of a nonemployee 
        attendant.
  (e)(1) Except as provided in paragraph (2), when any person 
entitled to mileage under this section requires an attendant 
(other than an employee of the Department) in order to perform 
such travel, the attendant may be allowed expenses of travel 
upon the same basis as such person.
  (2)(A) Without regard to whether an eligible veteran entitled 
to mileage under this section for travel to a Department 
facility for the purpose of medical examination, treatment, or 
care requires an attendant in order to perform such travel, an 
attendant of such veteran described in subparagraph (B) may be 
allowed expenses of travel (including lodging and subsistence) 
upon the same basis as such veteran during--
          (i) the period of time in which such veteran is 
        traveling to and from a Department facility for the 
        purpose of medical examination, treatment, or care; and
          (ii) the duration of the medical examination, 
        treatment, or care episode for such veteran.
  (B) An attendant of a veteran described in this subparagraph 
is a provider of personal care services for such veteran who is 
approved under paragraph (6) of section 1720G(a) of this title 
or designated under paragraph (7) of such section 1720G(a).
  (C) The Secretary may prescribe regulations to carry out this 
paragraph. Such regulations may include provisions--
          (i) to limit the number of attendants that may 
        receive expenses of travel under this paragraph for a 
        single medical examination, treatment, or care episode 
        of an eligible veteran; and
          (ii) to require such attendants to use certain travel 
        services.
  (D) In this subsection, the term ``eligible veteran'' has the 
meaning given that term in section 1720G(a)(2) of this title.
  (f) The Secretary may provide for the purchase of printed 
reduced-fare requests for use by veterans and their authorized 
attendants when traveling at their own expense to or from any 
Department facility.
  (g)(1) Beginning one year after the date of the enactment of 
the Caregivers and Veterans Omnibus Health Services Act of 
2010, the Secretary may adjust the mileage rate described in 
subsection (a) to be equal to the mileage reimbursement rate 
for the use of privately owned vehicles by Government employees 
on official business (when a Government vehicle is available), 
as prescribed by the Administrator of General Services under 
section 5707(b) of title 5.
  (2) If an adjustment in the mileage rate under paragraph (1) 
results in a lower mileage rate than the mileage rate otherwise 
specified in subsection (a), the Secretary shall, not later 
than 60 days before the date of the implementation of the 
mileage rate as so adjusted, submit to Congress a written 
report setting forth the adjustment in the mileage rate under 
this subsection, together with a justification for the decision 
to make the adjustment in the mileage rate under this 
subsection.
  (h)(1) Notwithstanding any other provision of law, the 
Secretary may make payments to or for any person traveling in, 
to, or from the Freely Associated States for receipt of care or 
services authorized under section 1724(f) of this title.
  (2) A person who has received payment for travel in a country 
pursuant to this subsection shall remain eligible for payment 
for such travel in that country regardless of whether the 
country continues to qualify as a Freely Associated State for 
purposes of this subsection.
  (3) The Secretary shall prescribe regulations to carry out 
this subsection.
  (4) In this subsection, the term ``Freely Associated States'' 
means--
          (A) the Federated States of Micronesia, during such 
        time as it is a party to the Compact of Free 
        Association set forth in section 201 of the Compact of 
        Free Association Act of 1985 (Public Law 99-239; 48 
        U.S.C. 1901 note);
          (B) the Republic of the Marshall Islands, during such 
        time as it is a party to the Compact of Free 
        Association set forth in section 201 of the Compact of 
        Free Association Act of 1985 (Public Law 99-239; 48 
        U.S.C. 1901 note); and
          (C) the Republic of Palau, during such time as it is 
        a party to the Compact of Free Association between the 
        United States and the Government of Palau set forth in 
        section 201 of Joint Resolution entitled ``Joint 
        Resolution to approve the `Compact of Free Association' 
        between the United States and the Government of Palau, 
        and for other purposes'' (Public Law 99-658; 48 U.S.C. 
        1931 note).

           *       *       *       *       *       *       *


PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *


CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE

           *       *       *       *       *       *       *


   SUBCHAPTER III--MISCELLANEOUS PROVISIONS RELATING TO HOSPITAL AND 
NURSING HOME CARE AND MEDICAL TREATMENT OF VETERANS

           *       *       *       *       *       *       *


Sec. 1724. Hospital care, medical services, and nursing home care 
                    abroad

  (a) Except as provided in [subsections (b) and (c)] 
subsections (b), (c), and (f), the Secretary shall not furnish 
hospital or domiciliary care or medical services outside any 
State.
  (b)(1) The Secretary may furnish hospital care and medical 
services outside a State to a veteran who is otherwise eligible 
to receive hospital care and medical services if the Secretary 
determines that such care and services are needed for the 
treatment of a service-connected disability of the veteran or 
as part of a rehabilitation program under chapter 31 of this 
title.
  (2) Care and services for a service-connected disability of a 
veteran who is not a citizen of the United States may be 
furnished under this subsection only--
          (A) if the veteran is in the Republic of the 
        Philippines or in Canada; or
          (B) if the Secretary determines, as a matter of 
        discretion and pursuant to regulations which the 
        Secretary shall prescribe, that it is appropriate and 
        feasible to furnish such care and services.
  (c) Within the limits of those facilities of the Veterans 
Memorial Medical Center at Manila, Republic of the Philippines, 
for which the Secretary may contract, the Secretary may furnish 
necessary hospital care to a veteran for any non-service-
connected disability if such veteran is unable to defray the 
expenses of necessary hospital care. The Secretary may enter 
into contracts to carry out this section.
  (d) The Secretary may furnish nursing home care, on the same 
terms and conditions set forth in section 1720(a) of this 
title, to any veteran who has been furnished hospital care in 
the Philippines pursuant to this section, but who requires a 
protracted period of nursing home care.
  (e) Within the limits of an outpatient clinic in the Republic 
of the Philippines that is under the direct jurisdiction of the 
Secretary, the Secretary may furnish a veteran who has a 
service-connected disability with such medical services as the 
Secretary determines to be needed.
  (f)(1) The Secretary may furnish hospital care and medical 
services in the Freely Associated States to a veteran who is 
otherwise eligible to receive hospital care and medical 
services.
  (2) In furnishing hospital care and medical services under 
paragraph (1), the Secretary may furnish hospital care and 
medical services through--
          (A) contracts or other agreements;
          (B) reimbursement; or
          (C) the direct provision of care by health care 
        personnel of the Department.
  (3) In furnishing hospital care and medical services under 
paragraph (1), the Secretary may furnish hospital care and 
medical services for any condition regardless of whether the 
condition is connected to the service of the veteran in the 
Armed Forces.
  (4)(A) A veteran who has received hospital care or medical 
services in a country pursuant to this subsection shall remain 
eligible, to the extent determined advisable and practicable by 
the Secretary, for hospital care or medical services in that 
country regardless of whether the country continues to qualify 
as a Freely Associated State for purposes of this subsection.
  (B) If the Secretary determines it is no longer advisable or 
practicable to allow veterans described in subparagraph (A) to 
remain eligible for hospital care or medical services pursuant 
to such subparagraph, the Secretary shall--
          (i) provide direct notice of that determination to 
        such veterans; and
          (ii) publish that determination and the reasons for 
        that determination in the Federal Register.
  (5) In this subsection, the term ``Freely Associated States'' 
means--
          (A) the Federated States of Micronesia, during such 
        time as it is a party to the Compact of Free 
        Association set forth in section 201 of the Compact of 
        Free Association Act of 1985 (Public Law 99-239; 48 
        U.S.C. 1901 note);
          (B) the Republic of the Marshall Islands, during such 
        time as it is a party to the Compact of Free 
        Association set forth in section 201 of the Compact of 
        Free Association Act of 1985 (Public Law 99-239; 48 
        U.S.C. 1901 note); and
          (C) the Republic of Palau, during such time as it is 
        a party to the Compact of Free Association between the 
        United States and the Government of Palau set forth in 
        section 201 of Joint Resolution entitled ``Joint 
        Resolution to approve the `Compact of Free Association' 
        between the United States and the Government of Palau, 
        and for other purposes'' (Public Law 99-658; 48 U.S.C. 
        1931 note).

           *       *       *       *       *       *       *


Sec. 1730C. Licensure of health care professionals providing treatment 
                    via telemedicine

  (a) In General.--Notwithstanding any provision of law 
regarding the licensure of health care professionals, a covered 
health care professional may practice the health care 
profession of the health care professional at any location in 
[any State] any State or any of the Freely Associated States 
(as defined in section 1724(f) of this title), regardless of 
where the covered health care professional or the patient is 
located, if the covered health care professional is using 
telemedicine to provide treatment to an individual under this 
chapter.
  (b) Covered Health Care Professionals.--For purposes of this 
section, a covered health care professional is any of the 
following individuals:
          (1) A health care professional who--
                  (A) is an employee of the Department 
                appointed under section 7306, 7401, 7405, 7406, 
                or 7408 of this title or under title 5;
                  (B) is authorized by the Secretary to provide 
                health care under this chapter;
                  (C) is required to adhere to all standards 
                for quality relating to the provision of health 
                care in accordance with applicable policies of 
                the Department; and
                  (D)(i) has an active, current, full, and 
                unrestricted license, registration, or 
                certification in a State to practice the health 
                care profession of the health care 
                professional; or
                  (ii) with respect to a health care profession 
                listed under section 7402(b) of this title, has 
                the qualifications for such profession as set 
                forth by the Secretary.
          (2) A postgraduate health care employee who--
                  (A) is appointed under section 7401(1), 
                7401(3), or 7405 of this title or title 5 for 
                any category of personnel described in 
                paragraph (1) or (3) of section 7401 of this 
                title;
                  (B) must obtain an active, current, full, and 
                unrestricted license, registration, or 
                certification or meet qualification standards 
                set forth by the Secretary within a specified 
                time frame; and
                  (C) is under the clinical supervision of a 
                health care professional described in paragraph 
                (1); or
          (3) A health professions trainee who--
                  (A) is appointed under section 7405 or 7406 
                of this title; and
                  (B) is under the clinical supervision of a 
                health care professional described in paragraph 
                (1).
  (c) Property of Federal Government.--Subsection (a) shall 
apply to a covered health care professional providing treatment 
to a patient regardless of whether the covered health care 
professional or patient is located in a facility owned by the 
Federal Government during such treatment.
  (d) Relation to State Law.--(1) The provisions of this 
section shall supersede any provisions of the law of any State 
to the extent that such provision of State law are inconsistent 
with this section.
  (2) No State shall deny or revoke the license, registration, 
or certification of a covered health care professional who 
otherwise meets the qualifications of the State for holding the 
license, registration, or certification on the basis that the 
covered health care professional has engaged or intends to 
engage in activity covered by subsection (a).
  (e) Rule of Construction.--Nothing in this section may be 
construed to remove, limit, or otherwise affect any obligation 
of a covered health care professional under the Controlled 
Substances Act (21 U.S.C. 801 et seq.).
  (f) State Defined.--In this section, the term ``State'' means 
a State, as defined in section 101(20) of this title, or a 
political subdivision of a State.

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                              ----------                              


              INDIVIDUALS WITH DISABILITIES EDUCATION ACT



           *       *       *       *       *       *       *
   PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF 
                    APPROPRIATIONS.

  (a) Grants to States.--
          (1) Purpose of grants.--The Secretary shall make 
        grants to States, outlying areas, and freely associated 
        States, and provide funds to the Secretary of the 
        Interior, to assist them to provide special education 
        and related services to children with disabilities in 
        accordance with this part.
          (2) Maximum amount.--The maximum amount of the grant 
        a State may receive under this section--
                  (A) for fiscal years 2005 and 2006 is--
                          (i) the number of children with 
                        disabilities in the State who are 
                        receiving special education and related 
                        services--
                                  (I) aged 3 through 5 if the 
                                State is eligible for a grant 
                                under section 619; and
                                  (II) aged 6 through 21; 
                                multiplied by
                          (ii) 40 percent of the average per-
                        pupil expenditure in public elementary 
                        schools and secondary schools in the 
                        United States; and
                  (B) for fiscal year 2007 and subsequent 
                fiscal years is--
                          (i) the number of children with 
                        disabilities in the 2004-2005 school 
                        year in the State who received special 
                        education and related services--
                                  (I) aged 3 through 5 if the 
                                State is eligible for a grant 
                                under section 619; and
                                  (II) aged 6 through 21; 
                                multiplied by
                          (ii) 40 percent of the average per-
                        pupil expenditure in public elementary 
                        schools and secondary schools in the 
                        United States; adjusted by
                          (iii) the rate of annual change in 
                        the sum of--
                                  (I) 85 percent of such 
                                State's population described in 
                                subsection (d)(3)(A)(i)(II); 
                                and
                                  (II) 15 percent of such 
                                State's population described in 
                                subsection (d)(3)(A)(i)(III).
  (b) Outlying Areas and Freely Associated States; Secretary of 
the Interior.--
          (1) Outlying areas and freely associated states.--
                  [(A) Funds reserved.--From the amount 
                appropriated for any fiscal year under 
                subsection (i), the Secretary shall reserve not 
                more than 1 percent, which shall be used--
                          [(i) to provide assistance to the 
                        outlying areas in accordance with their 
                        respective populations of individuals 
                        aged 3 through 21; and
                          [(ii) to provide each freely 
                        associated State a grant in the amount 
                        that such freely associated State 
                        received for fiscal year 2003 under 
                        this part, but only if the freely 
                        associated State meets the applicable 
                        requirements of this part, as well as 
                        the requirements of section 
                        611(b)(2)(C) as such section was in 
                        effect on the day before the date of 
                        enactment of the Individuals with 
                        Disabilities Education Improvement Act 
                        of 2004.]
                  (A) Funds reserved.--From the amount 
                appropriated for any fiscal year under 
                subsection (i), the Secretary shall reserve not 
                more than 1 percent, which shall be used as 
                follows:
                          (i) To provide assistance to the 
                        outlying areas in accordance with their 
                        respective populations of individuals 
                        aged 3 through 21.
                          (ii)(I) To provide each freely 
                        associated State a grant so that no 
                        freely associated State receives a 
                        lesser share of the total funds 
                        reserved for the freely associated 
                        State than the freely associated State 
                        received of those funds for fiscal year 
                        2023.
                          (II) Each freely associated State 
                        shall establish its eligibility under 
                        this subparagraph consistent with the 
                        requirements for a State under section 
                        612.
                          (III) The funds provided to each 
                        freely associated State under this part 
                        may be used to provide, to each infant 
                        or toddler with a disability (as 
                        defined in section 632), either a free 
                        appropriate public education, 
                        consistent with section 612, or early 
                        intervention services consistent with 
                        part C, notwithstanding the application 
                        and eligibility requirements of 
                        sections 634(2), 635, and 637.
                  (B) Special rule.--The provisions of Public 
                Law 95-134, permitting the consolidation of 
                grants by the outlying areas, shall not apply 
                to funds provided to the outlying areas or the 
                freely associated States under this section.
                  (C) Definition.--In this paragraph, the term 
                ``freely associated States'' means the Republic 
                of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
          (2) Secretary of the interior.--From the amount 
        appropriated for any fiscal year under subsection (i), 
        the Secretary shall reserve 1.226 percent to provide 
        assistance to the Secretary of the Interior in 
        accordance with subsection (h).
  (c) Technical Assistance.--
          (1) In general.--The Secretary may reserve not more 
        than \1/2\ of 1 percent of the amounts appropriated 
        under this part for each fiscal year to provide 
        technical assistance activities authorized under 
        section 616(i).
          (2) Maximum amount.--The maximum amount the Secretary 
        may reserve under paragraph (1) for any fiscal year is 
        $25,000,000, cumulatively adjusted by the rate of 
        inflation as measured by the percentage increase, if 
        any, from the preceding fiscal year in the Consumer 
        Price Index For All Urban Consumers, published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (d) Allocations to States.--
          (1) In general.--After reserving funds for technical 
        assistance, and for payments to the outlying areas, the 
        freely associated States, and the Secretary of the 
        Interior under subsections (b) and (c) for a fiscal 
        year, the Secretary shall allocate the remaining amount 
        among the States in accordance with this subsection.
          (2) Special rule for use of fiscal year 1999 
        amount.--If a State received any funds under this 
        section for fiscal year 1999 on the basis of children 
        aged 3 through 5, but does not make a free appropriate 
        public education available to all children with 
        disabilities aged 3 through 5 in the State in any 
        subsequent fiscal year, the Secretary shall compute the 
        State's amount for fiscal year 1999, solely for the 
        purpose of calculating the State's allocation in that 
        subsequent year under paragraph (3) or (4), by 
        subtracting the amount allocated to the State for 
        fiscal year 1999 on the basis of those children.
          (3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal 
        year is equal to or greater than the amount allocated 
        to the States under this paragraph for the preceding 
        fiscal year, those allocations shall be calculated as 
        follows:
                  (A) Allocation of increase.--
                          (i) In general.--Except as provided 
                        in subparagraph (B), the Secretary 
                        shall allocate for the fiscal year--
                                  (I) to each State the amount 
                                the State received under this 
                                section for fiscal year 1999;
                                  (II) 85 percent of any 
                                remaining funds to States on 
                                the basis of the States' 
                                relative populations of 
                                children aged 3 through 21 who 
                                are of the same age as children 
                                with disabilities for whom the 
                                State ensures the availability 
                                of a free appropriate public 
                                education under this part; and
                                  (III) 15 percent of those 
                                remaining funds to States on 
                                the basis of the States' 
                                relative populations of 
                                children described in subclause 
                                (II) who are living in poverty.
                          (ii) Data.--For the purpose of making 
                        grants under this paragraph, the 
                        Secretary shall use the most recent 
                        population data, including data on 
                        children living in poverty, that are 
                        available and satisfactory to the 
                        Secretary.
                  (B) Limitations.--Notwithstanding 
                subparagraph (A), allocations under this 
                paragraph shall be subject to the following:
                          (i) Preceding year allocation.--No 
                        State's allocation shall be less than 
                        its allocation under this section for 
                        the preceding fiscal year.
                          (ii) Minimum.--No State's allocation 
                        shall be less than the greatest of--
                                  (I) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for fiscal 
                                        year 1999; and
                                          (bb) \1/3\ of 1 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (i) for the 
                                        fiscal year exceeds the 
                                        amount appropriated for 
                                        this section for fiscal 
                                        year 1999;
                                  (II) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated for this 
                                        section from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  (III) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        for this section from 
                                        the preceding fiscal 
                                        year.
                          (iii) Maximum.--Notwithstanding 
                        clause (ii), no State's allocation 
                        under this paragraph shall exceed the 
                        sum of--
                                  (I) the amount the State 
                                received under this section for 
                                the preceding fiscal year; and
                                  (II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated under this 
                                section from the preceding 
                                fiscal year.
                  (C) Ratable reduction.--If the amount 
                available for allocations under this paragraph 
                is insufficient to pay those allocations in 
                full, those allocations shall be ratably 
                reduced, subject to subparagraph (B)(i).
          (4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal 
        year is less than the amount allocated to the States 
        under this section for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                  (A) Amounts greater than fiscal year 1999 
                allocations.--If the amount available for 
                allocations is greater than the amount 
                allocated to the States for fiscal year 1999, 
                each State shall be allocated the sum of--
                          (i) the amount the State received 
                        under this section for fiscal year 
                        1999; and
                          (ii) an amount that bears the same 
                        relation to any remaining funds as the 
                        increase the State received under this 
                        section for the preceding fiscal year 
                        over fiscal year 1999 bears to the 
                        total of all such increases for all 
                        States.
                  (B) Amounts equal to or less than fiscal year 
                1999 allocations.--
                          (i) In general.--If the amount 
                        available for allocations under this 
                        paragraph is equal to or less than the 
                        amount allocated to the States for 
                        fiscal year 1999, each State shall be 
                        allocated the amount the State received 
                        for fiscal year 1999.
                          (ii) Ratable reduction.--If the 
                        amount available for allocations under 
                        this paragraph is insufficient to make 
                        the allocations described in clause 
                        (i), those allocations shall be ratably 
                        reduced.
  (e) State-Level Activities.--
          (1) State administration.--
                  (A) In general.--For the purpose of 
                administering this part, including paragraph 
                (3), section 619, and the coordination of 
                activities under this part with, and providing 
                technical assistance to, other programs that 
                provide services to children with 
                disabilities--
                          (i) each State may reserve for each 
                        fiscal year not more than the maximum 
                        amount the State was eligible to 
                        reserve for State administration under 
                        this section for fiscal year 2004 or 
                        $800,000 (adjusted in accordance with 
                        subparagraph (B)), whichever is 
                        greater; and
                          (ii) each outlying area may reserve 
                        for each fiscal year not more than 5 
                        percent of the amount the outlying area 
                        receives under subsection (b)(1) for 
                        the fiscal year or $35,000, whichever 
                        is greater.
                  (B) Cumulative annual adjustments.--For each 
                fiscal year beginning with fiscal year 2005, 
                the Secretary shall cumulatively adjust--
                          (i) the maximum amount the State was 
                        eligible to reserve for State 
                        administration under this part for 
                        fiscal year 2004; and
                          (ii) $800,000,
                by the rate of inflation as measured by the 
                percentage increase, if any, from the preceding 
                fiscal year in the Consumer Price Index For All 
                Urban Consumers, published by the Bureau of 
                Labor Statistics of the Department of Labor.
                  (C) Certification.--Prior to expenditure of 
                funds under this paragraph, the State shall 
                certify to the Secretary that the arrangements 
                to establish responsibility for services 
                pursuant to section 612(a)(12)(A) are current.
                  (D) Part C.--Funds reserved under 
                subparagraph (A) may be used for the 
                administration of part C, if the State 
                educational agency is the lead agency for the 
                State under such part.
          (2) Other state-level activities.--
                  (A) State-level activities.--
                          (i) In general.--Except as provided 
                        in clause (iii), for the purpose of 
                        carrying out State-level activities, 
                        each State may reserve for each of the 
                        fiscal years 2005 and 2006 not more 
                        than 10 percent from the amount of the 
                        State's allocation under subsection (d) 
                        for each of the fiscal years 2005 and 
                        2006, respectively. For fiscal year 
                        2007 and each subsequent fiscal year, 
                        the State may reserve the maximum 
                        amount the State was eligible to 
                        reserve under the preceding sentence 
                        for fiscal year 2006 (cumulatively 
                        adjusted by the rate of inflation as 
                        measured by the percentage increase, if 
                        any, from the preceding fiscal year in 
                        the Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of 
                        Labor Statistics of the Department of 
                        Labor).
                          (ii) Small state adjustment.--
                        Notwithstanding clause (i) and except 
                        as provided in clause (iii), in the 
                        case of a State for which the maximum 
                        amount reserved for State 
                        administration is not greater than 
                        $850,000, the State may reserve for the 
                        purpose of carrying out State-level 
                        activities for each of the fiscal years 
                        2005 and 2006, not more than 10.5 
                        percent from the amount of the State's 
                        allocation under subsection (d) for 
                        each of the fiscal years 2005 and 2006, 
                        respectively. For fiscal year 2007 and 
                        each subsequent fiscal year, such State 
                        may reserve the maximum amount the 
                        State was eligible to reserve under the 
                        preceding sentence for fiscal year 2006 
                        (cumulatively adjusted by the rate of 
                        inflation as measured by the percentage 
                        increase, if any, from the preceding 
                        fiscal year in the Consumer Price Index 
                        For All Urban Consumers, published by 
                        the Bureau of Labor Statistics of the 
                        Department of Labor).
                          (iii) Exception.--If a State does not 
                        reserve funds under paragraph (3) for a 
                        fiscal year, then--
                                  (I) in the case of a State 
                                that is not described in clause 
                                (ii), for fiscal year 2005 or 
                                2006, clause (i) shall be 
                                applied by substituting ``9.0 
                                percent'' for ``10 percent''; 
                                and
                                  (II) in the case of a State 
                                that is described in clause 
                                (ii), for fiscal year 2005 or 
                                2006, clause (ii) shall be 
                                applied by substituting ``9.5 
                                percent'' for ``10.5 percent''.
                  (B) Required activities.--Funds reserved 
                under subparagraph (A) shall be used to carry 
                out the following activities:
                          (i) For monitoring, enforcement, and 
                        complaint investigation.
                          (ii) To establish and implement the 
                        mediation process required by section 
                        615(e), including providing for the 
                        cost of mediators and support 
                        personnel.
                  (C) Authorized activities.--Funds reserved 
                under subparagraph (A) may be used to carry out 
                the following activities:
                          (i) For support and direct services, 
                        including technical assistance, 
                        personnel preparation, and professional 
                        development and training.
                          (ii) To support paperwork reduction 
                        activities, including expanding the use 
                        of technology in the IEP process.
                          (iii) To assist local educational 
                        agencies in providing positive 
                        behavioral interventions and supports 
                        and appropriate mental health services 
                        for children with disabilities.
                          (iv) To improve the use of technology 
                        in the classroom by children with 
                        disabilities to enhance learning.
                          (v) To support the use of technology, 
                        including technology with universal 
                        design principles and assistive 
                        technology devices, to maximize 
                        accessibility to the general education 
                        curriculum for children with 
                        disabilities.
                          (vi) Development and implementation 
                        of transition programs, including 
                        coordination of services with agencies 
                        involved in supporting the transition 
                        of children with disabilities to 
                        postsecondary activities.
                          (vii) To assist local educational 
                        agencies in meeting personnel 
                        shortages.
                          (viii) To support capacity building 
                        activities and improve the delivery of 
                        services by local educational agencies 
                        to improve results for children with 
                        disabilities.
                          (ix) Alternative programming for 
                        children with disabilities who have 
                        been expelled from school, and services 
                        for children with disabilities in 
                        correctional facilities, children 
                        enrolled in State-operated or State-
                        supported schools, and children with 
                        disabilities in charter schools.
                          (x) To support the development and 
                        provision of appropriate accommodations 
                        for children with disabilities, or the 
                        development and provision of alternate 
                        assessments that are valid and reliable 
                        for assessing the performance of 
                        children with disabilities, in 
                        accordance with sections 1111(b) and 
                        1201 of the Elementary and Secondary 
                        Education Act of 1965.
                          (xi) To provide technical assistance 
                        to schools and local educational 
                        agencies, and direct services, 
                        including direct student services 
                        described in section 1003A(c)(3) of the 
                        Elementary and Secondary Education Act 
                        of 1965 to children with disabilities, 
                        to schools or local educational 
                        agencies implementing comprehensive 
                        support and improvement activities or 
                        targeted support and improvement 
                        activities under section 1111(d) of the 
                        Elementary and Secondary Education Act 
                        of 1965 on the basis of consistent 
                        underperformance of the disaggregated 
                        subgroup of children with disabilities, 
                        including providing professional 
                        development to special and regular 
                        education teachers, who teach children 
                        with disabilities, based on 
                        scientifically based research to 
                        improve educational instruction, in 
                        order to improve academic achievement 
                        based on the challenging academic 
                        standards described in section 
                        1111(b)(1) of such Act.
          (3) Local educational agency risk pool.--
                  (A) In general.--
                          (i) Reservation of funds.--For the 
                        purpose of assisting local educational 
                        agencies (including a charter school 
                        that is a local educational agency or a 
                        consortium of local educational 
                        agencies) in addressing the needs of 
                        high need children with disabilities, 
                        each State shall have the option to 
                        reserve for each fiscal year 10 percent 
                        of the amount of funds the State 
                        reserves for State-level activities 
                        under paragraph (2)(A)--
                                  (I) to establish and make 
                                disbursements from the high 
                                cost fund to local educational 
                                agencies in accordance with 
                                this paragraph during the first 
                                and succeeding fiscal years of 
                                the high cost fund; and
                                  (II) to support innovative 
                                and effective ways of cost 
                                sharing by the State, by a 
                                local educational agency, or 
                                among a consortium of local 
                                educational agencies, as 
                                determined by the State in 
                                coordination with 
                                representatives from local 
                                educational agencies, subject 
                                to subparagraph (B)(ii).
                          (ii) Definition of local educational 
                        agency.--In this paragraph the term 
                        ``local educational agency'' includes a 
                        charter school that is a local 
                        educational agency, or a consortium of 
                        local educational agencies.
                  (B) Limitation on uses of funds.--
                          (i) Establishment of high cost 
                        fund.--A State shall not use any of the 
                        funds the State reserves pursuant to 
                        subparagraph (A)(i), but may use the 
                        funds the State reserves under 
                        paragraph (1), to establish and support 
                        the high cost fund.
                          (ii) Innovative and effective cost 
                        sharing.--A State shall not use more 
                        than 5 percent of the funds the State 
                        reserves pursuant to subparagraph 
                        (A)(i) for each fiscal year to support 
                        innovative and effective ways of cost 
                        sharing among consortia of local 
                        educational agencies.
                  (C) State plan for high cost fund.--
                          (i) Definition.--The State 
                        educational agency shall establish the 
                        State's definition of a high need child 
                        with a disability, which definition 
                        shall be developed in consultation with 
                        local educational agencies.
                          (ii) State plan.--The State 
                        educational agency shall develop, not 
                        later than 90 days after the State 
                        reserves funds under this paragraph, 
                        annually review, and amend as 
                        necessary, a State plan for the high 
                        cost fund. Such State plan shall--
                                  (I) establish, in 
                                coordination with 
                                representatives from local 
                                educational agencies, a 
                                definition of a high need child 
                                with a disability that, at a 
                                minimum--
                                          (aa) addresses the 
                                        financial impact a high 
                                        need child with a 
                                        disability has on the 
                                        budget of the child's 
                                        local educational 
                                        agency; and
                                          (bb) ensures that the 
                                        cost of the high need 
                                        child with a disability 
                                        is greater than 3 times 
                                        the average per pupil 
                                        expenditure (as defined 
                                        in section 8101 of the 
                                        Elementary and 
                                        Secondary Education Act 
                                        of 1965) in that State;
                                  (II) establish eligibility 
                                criteria for the participation 
                                of a local educational agency 
                                that, at a minimum, takes into 
                                account the number and 
                                percentage of high need 
                                children with disabilities 
                                served by a local educational 
                                agency;
                                  (III) develop a funding 
                                mechanism that provides 
                                distributions each fiscal year 
                                to local educational agencies 
                                that meet the criteria 
                                developed by the State under 
                                subclause (II); and
                                  (IV) establish an annual 
                                schedule by which the State 
                                educational agency shall make 
                                its distributions from the high 
                                cost fund each fiscal year.
                          (iii) Public availability.--The State 
                        shall make its final State plan 
                        publicly available not less than 30 
                        days before the beginning of the school 
                        year, including dissemination of such 
                        information on the State website.
                  (D) Disbursements from the high cost fund.--
                          (i) In general.--Each State 
                        educational agency shall make all 
                        annual disbursements from the high cost 
                        fund established under subparagraph 
                        (A)(i) in accordance with the State 
                        plan published pursuant to subparagraph 
                        (C).
                          (ii) Use of disbursements.--Each 
                        State educational agency shall make 
                        annual disbursements to eligible local 
                        educational agencies in accordance with 
                        its State plan under subparagraph 
                        (C)(ii).
                          (iii) Appropriate costs.--The costs 
                        associated with educating a high need 
                        child with a disability under 
                        subparagraph (C)(i) are only those 
                        costs associated with providing direct 
                        special education and related services 
                        to such child that are identified in 
                        such child's IEP.
                  (E) Legal fees.--The disbursements under 
                subparagraph (D) shall not support legal fees, 
                court costs, or other costs associated with a 
                cause of action brought on behalf of a child 
                with a disability to ensure a free appropriate 
                public education for such child.
                  (F) Assurance of a free appropriate public 
                education.--Nothing in this paragraph shall be 
                construed--
                          (i) to limit or condition the right 
                        of a child with a disability who is 
                        assisted under this part to receive a 
                        free appropriate public education 
                        pursuant to section 612(a)(1) in the 
                        least restrictive environment pursuant 
                        to section 612(a)(5); or
                          (ii) to authorize a State educational 
                        agency or local educational agency to 
                        establish a limit on what may be spent 
                        on the education of a child with a 
                        disability.
                  (G) Special rule for risk pool and high need 
                assistance programs in effect as of january 1, 
                2004.--Notwithstanding the provisions of 
                subparagraphs (A) through (F), a State may use 
                funds reserved pursuant to this paragraph for 
                implementing a placement neutral cost sharing 
                and reimbursement program of high need, low 
                incidence, catastrophic, or extraordinary aid 
                to local educational agencies that provides 
                services to high need students based on 
                eligibility criteria for such programs that 
                were created not later than January 1, 2004, 
                and are currently in operation, if such program 
                serves children that meet the requirement of 
                the definition of a high need child with a 
                disability as described in subparagraph 
                (C)(ii)(I).
                  (H) Medicaid services not affected.--
                Disbursements provided under this paragraph 
                shall not be used to pay costs that otherwise 
                would be reimbursed as medical assistance for a 
                child with a disability under the State 
                medicaid program under title XIX of the Social 
                Security Act.
                  (I) Remaining funds.--Funds reserved under 
                subparagraph (A) in any fiscal year but not 
                expended in that fiscal year pursuant to 
                subparagraph (D) shall be allocated to local 
                educational agencies for the succeeding fiscal 
                year in the same manner as funds are allocated 
                to local educational agencies under subsection 
                (f) for the succeeding fiscal year.
          (4) Inapplicability of certain prohibitions.--A State 
        may use funds the State reserves under paragraphs (1) 
        and (2) without regard to--
                  (A) the prohibition on commingling of funds 
                in section 612(a)(17)(B); and
                  (B) the prohibition on supplanting other 
                funds in section 612(a)(17)(C).
          (5) Report on use of funds.--As part of the 
        information required to be submitted to the Secretary 
        under section 612, each State shall annually describe 
        how amounts under this section--
                  (A) will be used to meet the requirements of 
                this title; and
                  (B) will be allocated among the activities 
                described in this section to meet State 
                priorities based on input from local 
                educational agencies.
          (6) Special rule for increased funds.--A State may 
        use funds the State reserves under paragraph (1)(A) as 
        a result of inflationary increases under paragraph 
        (1)(B) to carry out activities authorized under clause 
        (i), (iii), (vii), or (viii) of paragraph (2)(C).
          (7) Flexibility in using funds for part c.--Any State 
        eligible to receive a grant under section 619 may use 
        funds made available under paragraph (1)(A), subsection 
        (f)(3), or section 619(f)(5) to develop and implement a 
        State policy jointly with the lead agency under part C 
        and the State educational agency to provide early 
        intervention services (which shall include an 
        educational component that promotes school readiness 
        and incorporates preliteracy, language, and numeracy 
        skills) in accordance with part C to children with 
        disabilities who are eligible for services under 
        section 619 and who previously received services under 
        part C until such children enter, or are eligible under 
        State law to enter, kindergarten, or elementary school 
        as appropriate.
  (f) Subgrants to Local Educational Agencies.--
          (1) Subgrants required.--Each State that receives a 
        grant under this section for any fiscal year shall 
        distribute any funds the State does not reserve under 
        subsection (e) to local educational agencies (including 
        public charter schools that operate as local 
        educational agencies) in the State that have 
        established their eligibility under section 613 for use 
        in accordance with this part.
          (2) Procedure for allocations to local educational 
        agencies.--For each fiscal year for which funds are 
        allocated to States under subsection (d), each State 
        shall allocate funds under paragraph (1) as follows:
                  (A) Base payments.--The State shall first 
                award each local educational agency described 
                in paragraph (1) the amount the local 
                educational agency would have received under 
                this section for fiscal year 1999, if the State 
                had distributed 75 percent of its grant for 
                that year under section 611(d) as section 
                611(d) was then in effect.
                  (B) Allocation of remaining funds.--After 
                making allocations under subparagraph (A), the 
                State shall--
                          (i) allocate 85 percent of any 
                        remaining funds to those local 
                        educational agencies on the basis of 
                        the relative numbers of children 
                        enrolled in public and private 
                        elementary schools and secondary 
                        schools within the local educational 
                        agency's jurisdiction; and
                          (ii) allocate 15 percent of those 
                        remaining funds to those local 
                        educational agencies in accordance with 
                        their relative numbers of children 
                        living in poverty, as determined by the 
                        State educational agency.
          (3) Reallocation of funds.--If a State educational 
        agency determines that a local educational agency is 
        adequately providing a free appropriate public 
        education to all children with disabilities residing in 
        the area served by that local educational agency with 
        State and local funds, the State educational agency may 
        reallocate any portion of the funds under this part 
        that are not needed by that local educational agency to 
        provide a free appropriate public education to other 
        local educational agencies in the State that are not 
        adequately providing special education and related 
        services to all children with disabilities residing in 
        the areas served by those other local educational 
        agencies.
  (g) Definitions.--In this section:
          (1) Average per-pupil expenditure in public 
        elementary schools and secondary schools in the united 
        states.--The term ``average per-pupil expenditure in 
        public elementary schools and secondary schools in the 
        United States' means--
                  (A) without regard to the source of funds--
                          (i) the aggregate current 
                        expenditures, during the second fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the 50 
                        States and the District of Columbia; 
                        plus
                          (ii) any direct expenditures by the 
                        State for the operation of those 
                        agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom those agencies 
                provided free public education during that 
                preceding year.
          (2) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
  (h) Use of Amounts by Secretary of the Interior.--
          (1) Provision of amounts for assistance.--
                  (A) In general.--The Secretary of Education 
                shall provide amounts to the Secretary of the 
                Interior to meet the need for assistance for 
                the education of children with disabilities on 
                reservations aged 5 to 21, inclusive, enrolled 
                in elementary schools and secondary schools for 
                Indian children operated or funded by the 
                Secretary of the Interior. The amount of such 
                payment for any fiscal year shall be equal to 
                80 percent of the amount allotted under 
                subsection (b)(2) for that fiscal year. Of the 
                amount described in the preceding sentence--
                          (i) 80 percent shall be allocated to 
                        such schools by July 1 of that fiscal 
                        year; and
                          (ii) 20 percent shall be allocated to 
                        such schools by September 30 of that 
                        fiscal year.
                  (B) Calculation of number of children.--In 
                the case of Indian students aged 3 to 5, 
                inclusive, who are enrolled in programs 
                affiliated with the Bureau of Indian Affairs 
                (referred to in this subsection as the ``BIA'') 
                schools and that are required by the States in 
                which such schools are located to attain or 
                maintain State accreditation, and which schools 
                have such accreditation prior to the date of 
                enactment of the Individuals with Disabilities 
                Education Act Amendments of 1991, the school 
                shall be allowed to count those children for 
                the purpose of distribution of the funds 
                provided under this paragraph to the Secretary 
                of the Interior. The Secretary of the Interior 
                shall be responsible for meeting all of the 
                requirements of this part for those children, 
                in accordance with paragraph (2).
                  (C) Additional requirement.--With respect to 
                all other children aged 3 to 21, inclusive, on 
                reservations, the State educational agency 
                shall be responsible for ensuring that all of 
                the requirements of this part are implemented.
          (2) Submission of information.--The Secretary of 
        Education may provide the Secretary of the Interior 
        amounts under paragraph (1) for a fiscal year only if 
        the Secretary of the Interior submits to the Secretary 
        of Education information that--
                  (A) demonstrates that the Department of the 
                Interior meets the appropriate requirements, as 
                determined by the Secretary of Education, of 
                sections 612 (including monitoring and 
                evaluation activities) and 613;
                  (B) includes a description of how the 
                Secretary of the Interior will coordinate the 
                provision of services under this part with 
                local educational agencies, tribes and tribal 
                organizations, and other private and Federal 
                service providers;
                  (C) includes an assurance that there are 
                public hearings, adequate notice of such 
                hearings, and an opportunity for comment 
                afforded to members of tribes, tribal governing 
                bodies, and affected local school boards before 
                the adoption of the policies, programs, and 
                procedures related to the requirements 
                described in subparagraph (A);
                  (D) includes an assurance that the Secretary 
                of the Interior will provide such information 
                as the Secretary of Education may require to 
                comply with section 618;
                  (E) includes an assurance that the Secretary 
                of the Interior and the Secretary of Health and 
                Human Services have entered into a memorandum 
                of agreement, to be provided to the Secretary 
                of Education, for the coordination of services, 
                resources, and personnel between their 
                respective Federal, State, and local offices 
                and with State and local educational agencies 
                and other entities to facilitate the provision 
                of services to Indian children with 
                disabilities residing on or near reservations 
                (such agreement shall provide for the 
                apportionment of responsibilities and costs, 
                including child find, evaluation, diagnosis, 
                remediation or therapeutic measures, and (where 
                appropriate) equipment and medical or personal 
                supplies as needed for a child to remain in 
                school or a program); and
                  (F) includes an assurance that the Department 
                of the Interior will cooperate with the 
                Department of Education in its exercise of 
                monitoring and oversight of this application, 
                and any agreements entered into between the 
                Secretary of the Interior and other entities 
                under this part, and will fulfill its duties 
                under this part.
          (3) Applicability.--The Secretary shall withhold 
        payments under this subsection with respect to the 
        information described in paragraph (2) in the same 
        manner as the Secretary withholds payments under 
        section 616(e)(6).
          (4) Payments for education and services for indian 
        children with disabilities aged 3 through 5.--
                  (A) In general.--With funds appropriated 
                under subsection (i), the Secretary of 
                Education shall make payments to the Secretary 
                of the Interior to be distributed to tribes or 
                tribal organizations (as defined under section 
                4 of the Indian Self-Determination and 
                Education Assistance Act) or consortia of 
                tribes or tribal organizations to provide for 
                the coordination of assistance for special 
                education and related services for children 
                with disabilities aged 3 through 5 on 
                reservations served by elementary schools and 
                secondary schools for Indian children operated 
                or funded by the Department of the Interior. 
                The amount of such payments under subparagraph 
                (B) for any fiscal year shall be equal to 20 
                percent of the amount allotted under subsection 
                (b)(2).
                  (B) Distribution of funds.--The Secretary of 
                the Interior shall distribute the total amount 
                of the payment under subparagraph (A) by 
                allocating to each tribe, tribal organization, 
                or consortium an amount based on the number of 
                children with disabilities aged 3 through 5 
                residing on reservations as reported annually, 
                divided by the total of those children served 
                by all tribes or tribal organizations.
                  (C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or 
                tribal organization shall submit such figures 
                to the Secretary of the Interior as required to 
                determine the amounts to be allocated under 
                subparagraph (B). This information shall be 
                compiled and submitted to the Secretary of 
                Education.
                  (D) Use of funds.--The funds received by a 
                tribe or tribal organization shall be used to 
                assist in child find, screening, and other 
                procedures for the early identification of 
                children aged 3 through 5, parent training, and 
                the provision of direct services. These 
                activities may be carried out directly or 
                through contracts or cooperative agreements 
                with the BIA, local educational agencies, and 
                other public or private nonprofit 
                organizations. The tribe or tribal organization 
                is encouraged to involve Indian parents in the 
                development and implementation of these 
                activities. The tribe or tribal organization 
                shall, as appropriate, make referrals to local, 
                State, or Federal entities for the provision of 
                services or further diagnosis.
                  (E) Biennial report.--To be eligible to 
                receive a grant pursuant to subparagraph (A), 
                the tribe or tribal organization shall provide 
                to the Secretary of the Interior a biennial 
                report of activities undertaken under this 
                paragraph, including the number of contracts 
                and cooperative agreements entered into, the 
                number of children contacted and receiving 
                services for each year, and the estimated 
                number of children needing services during the 
                2 years following the year in which the report 
                is made. The Secretary of the Interior shall 
                include a summary of this information on a 
                biennial basis in the report to the Secretary 
                of Education required under this subsection. 
                The Secretary of Education may require any 
                additional information from the Secretary of 
                the Interior.
                  (F) Prohibitions.--None of the funds 
                allocated under this paragraph may be used by 
                the Secretary of the Interior for 
                administrative purposes, including child count 
                and the provision of technical assistance.
          (5) Plan for coordination of services.--The Secretary 
        of the Interior shall develop and implement a plan for 
        the coordination of services for all Indian children 
        with disabilities residing on reservations covered 
        under this title. Such plan shall provide for the 
        coordination of services benefiting those children from 
        whatever source, including tribes, the Indian Health 
        Service, other BIA divisions, and other Federal 
        agencies. In developing the plan, the Secretary of the 
        Interior shall consult with all interested and involved 
        parties. The plan shall be based on the needs of the 
        children and the system best suited for meeting those 
        needs, and may involve the establishment of cooperative 
        agreements between the BIA, other Federal agencies, and 
        other entities. The plan shall also be distributed upon 
        request to States, State educational agencies and local 
        educational agencies, and other agencies providing 
        services to infants, toddlers, and children with 
        disabilities, to tribes, and to other interested 
        parties.
          (6) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(21), the Secretary of 
        the Interior shall establish, under the BIA, an 
        advisory board composed of individuals involved in or 
        concerned with the education and provision of services 
        to Indian infants, toddlers, children, and youth with 
        disabilities, including Indians with disabilities, 
        Indian parents or guardians of such children, teachers, 
        service providers, State and local educational 
        officials, representatives of tribes or tribal 
        organizations, representatives from State Interagency 
        Coordinating Councils under section 641 in States 
        having reservations, and other members representing the 
        various divisions and entities of the BIA. The 
        chairperson shall be selected by the Secretary of the 
        Interior. The advisory board shall--
                  (A) assist in the coordination of services 
                within the BIA and with other local, State, and 
                Federal agencies in the provision of education 
                for infants, toddlers, and children with 
                disabilities;
                  (B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary of 
                the Interior's responsibilities described in 
                this subsection;
                  (C) develop and recommend policies concerning 
                effective inter- and intra-agency 
                collaboration, including modifications to 
                regulations, and the elimination of barriers to 
                inter- and intra-agency programs and 
                activities;
                  (D) provide assistance and disseminate 
                information on best practices, effective 
                program coordination strategies, and 
                recommendations for improved early intervention 
                services or educational programming for Indian 
                infants, toddlers, and children with 
                disabilities; and
                  (E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          (7) Annual reports.--
                  (A) In general.--The advisory board 
                established under paragraph (6) shall prepare 
                and submit to the Secretary of the Interior and 
                to Congress an annual report containing a 
                description of the activities of the advisory 
                board for the preceding year.
                  (B) Availability.--The Secretary of the 
                Interior shall make available to the Secretary 
                of Education the report described in 
                subparagraph (A).
  (i) Authorization of Appropriations.--For the purpose of 
carrying out this part, other than section 619, there are 
authorized to be appropriated--
          (1) $12,358,376,571 for fiscal year 2005;
          (2) $14,648,647,143 for fiscal year 2006;
          (3) $16,938,917,714 for fiscal year 2007;
          (4) $19,229,188,286 for fiscal year 2008;
          (5) $21,519,458,857 for fiscal year 2009;
          (6) $23,809,729,429 for fiscal year 2010;
          (7) $26,100,000,000 for fiscal year 2011; and
          (8) such sums as may be necessary for fiscal year 
        2012 and each succeeding fiscal year.

           *       *       *       *       *       *       *

                              ----------                              


             ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965



           *       *       *       *       *       *       *
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

           *       *       *       *       *       *       *


PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES

           *       *       *       *       *       *       *


                         Subpart 2--Allocations

SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
                    INTERIOR.

  (a) Reservation of Funds.--Subject to subsection (e), from 
the amount appropriated for payments to States for any fiscal 
year under section 1002(a), the Secretary shall--
          (1) reserve 0.4 percent to provide assistance to the 
        outlying areas in accordance with subsection (b); and
          (2) reserve 0.7 percent to provide assistance to the 
        Secretary of the Interior in accordance with subsection 
        (d).
  (b) Assistance to Outlying Areas.--
          (1) Funds reserved.--From the amount made available 
        for any fiscal year under subsection (a)(1), the 
        Secretary shall--
                  [(A) first reserve $1,000,000 for the 
                Republic of Palau, until Palau enters into an 
                agreement for extension of United States 
                educational assistance under the Compact of 
                Free Association, and subject to such terms and 
                conditions as the Secretary may establish, 
                except that Public Law 95-134, permitting the 
                consolidation of grants, shall not apply; and]
                  (A) first reserve $1,000,000 for the Republic 
                of Palau, subject to such terms and conditions 
                as the Secretary may establish, except that 
                Public Law 95-134, permitting the consolidation 
                of grants, shall not apply; and
                  (B) use the remaining funds to award grants 
                to the outlying areas in accordance with 
                paragraphs (2) through (5).
          (2) Amount of grants.--The Secretary shall allocate 
        the amount available under paragraph (1)(B) to the 
        outlying areas in proportion to their relative numbers 
        of children, aged 5 to 17, inclusive, from families 
        below the poverty level, on the basis of the most 
        recent satisfactory data available from the Department 
        of Commerce.
          (3) Hold-harmless amounts.--For each fiscal year, the 
        amount made available to each outlying area under this 
        subsection shall be--
                  (A) not less than 95 percent of the amount 
                made available for the preceding fiscal year if 
                the number of children counted under paragraph 
                (2) is not less than 30 percent of the total 
                number of children aged 5 to 17 years, 
                inclusive, in the outlying area;
                  (B) not less than 90 percent of the amount 
                made available for the preceding fiscal year if 
                the percentage described in subparagraph (A) is 
                between 15 percent and 30 percent; and
                  (C) not less than 85 percent of the amount 
                made available for the preceding fiscal year if 
                the percentage described in subparagraph (A) is 
                below 15 percent.
          (4) Ratable reductions.--If the amount made available 
        under paragraph (1)(B) for any fiscal year is 
        insufficient to pay the full amounts that the outlying 
        areas are eligible to receive under paragraphs (2) and 
        (3) for that fiscal year, the Secretary shall ratably 
        reduce those amounts.
          (5) Uses.--Grant funds awarded under paragraph (1)(A) 
        may be used only--
                  (A) for programs described in this Act, 
                including teacher training, curriculum 
                development, instructional materials, or 
                general school improvement and reform; and
                  (B) to provide direct educational services 
                that assist all students with meeting the 
                challenging State academic standards.
  (c) Definitions.--For the purpose of this section, the term 
``outlying area'' means the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana 
Islands.
  (d) Allotment to the Secretary of the Interior.--
          (1) In general.--The amount allotted for payments to 
        the Secretary of the Interior under subsection (a)(2) 
        for any fiscal year shall be used, in accordance with 
        such criteria as the Secretary may establish, to meet 
        the unique educational needs of--
                  (A) Indian children on reservations served by 
                elementary schools and secondary schools for 
                Indian children operated or supported by the 
                Department of the Interior; and
                  (B) out-of-State Indian children in 
                elementary schools and secondary schools in 
                local educational agencies under special 
                contracts with the Department of the Interior.
          (2) Payments.--From the amount allotted for payments 
        to the Secretary of the Interior under subsection 
        (a)(2), the Secretary of the Interior shall make 
        payments to local educational agencies, on such terms 
        as the Secretary determines will best carry out the 
        purposes of this part, with respect to out-of-State 
        Indian children described in paragraph (1). The amount 
        of such payment may not exceed, for each such child, 
        the greater of--
                  (A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                  (B) 48 percent of such expenditure in the 
                United States.
  (e) Limitation on Applicability.--If, by reason of the 
application of subsection (a) for any fiscal year, the total 
amount available for allocation to all States under this part 
would be less than the amount allocated to all States for 
fiscal year 2016 under this part, the Secretary shall provide 
assistance to the outlying areas and the Secretary of the 
Interior in accordance with this section, as in effect on the 
day before the date of enactment of the Every Student Succeeds 
Act.

           *       *       *       *       *       *       *


                     TITLE VIII--GENERAL PROVISIONS

                          PART A--DEFINITIONS

SEC. 8101. DEFINITIONS.

   Except as otherwise provided, in this Act:
          (1) Average daily attendance.--
                  (A) In general.--Except as provided otherwise 
                by State law or this paragraph, the term 
                ``average daily attendance'' means--
                          (i) the aggregate number of days of 
                        attendance of all students during a 
                        school year; divided by
                          (ii) the number of days school is in 
                        session during that year.
                  (B) Conversion.--The Secretary shall permit 
                the conversion of average daily membership (or 
                other similar data) to average daily attendance 
                for local educational agencies in States that 
                provide State aid to local educational agencies 
                on the basis of average daily membership (or 
                other similar data).
                  (C) Special rule.--If the local educational 
                agency in which a child resides makes a tuition 
                or other payment for the free public education 
                of the child in a school located in another 
                school district, the Secretary shall, for the 
                purpose of this Act--
                          (i) consider the child to be in 
                        attendance at a school of the agency 
                        making the payment; and
                          (ii) not consider the child to be in 
                        attendance at a school of the agency 
                        receiving the payment.
                  (D) Children with disabilities.--If a local 
                educational agency makes a tuition payment to a 
                private school or to a public school of another 
                local educational agency for a child with a 
                disability, as defined in section 602 of the 
                Individuals with Disabilities Education Act, 
                the Secretary shall, for the purpose of this 
                Act, consider the child to be in attendance at 
                a school of the agency making the payment.
          (2) Average per-pupil expenditure.--The term 
        ``average per-pupil expenditure'' means, in the case of 
        a State or of the United States--
                  (A) without regard to the source of funds--
                          (i) the aggregate current 
                        expenditures, during the third fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the State 
                        or, in the case of the United States, 
                        for all States (which, for the purpose 
                        of this paragraph, means the 50 States 
                        and the District of Columbia); plus
                          (ii) any direct current expenditures 
                        by the State for the operation of those 
                        agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom those agencies 
                provided free public education during that 
                preceding year.
          (3) Child.--The term ``child'' means any person 
        within the age limits for which the State provides free 
        public education.
          (4) Child with a disability.--The term ``child with a 
        disability'' has the same meaning given that term in 
        section 602 of the Individuals with Disabilities 
        Education Act.
          (5) Community-based organization.--The term 
        ``community-based organization'' means a public or 
        private nonprofit organization of demonstrated 
        effectiveness that--
                  (A) is representative of a community or 
                significant segments of a community; and
                  (B) provides educational or related services 
                to individuals in the community.
          (6) Consolidated local application.--The term 
        ``consolidated local application'' means an application 
        submitted by a local educational agency pursuant to 
        section 8305.
          (7) Consolidated local plan.--The term ``consolidated 
        local plan'' means a plan submitted by a local 
        educational agency pursuant to section 8305.
          (8) Consolidated state application.--The term 
        ``consolidated State application'' means an application 
        submitted by a State educational agency pursuant to 
        section 8302.
          (9) Consolidated state plan.--The term ``consolidated 
        State plan'' means a plan submitted by a State 
        educational agency pursuant to section 8302.
          (10) County.--The term ``county'' means one of the 
        divisions of a State used by the Secretary of Commerce 
        in compiling and reporting data regarding counties.
          (11) Covered program.--The term ``covered program'' 
        means each of the programs authorized by--
                  (A) part A of title I;
                  (B) part C of title I;
                  (C) part D of title I;
                  (D) part A of title II;
                  (E) part A of title III;
                  (F) part A of title IV;
                  (G) part B of title IV; and
                  (H) subpart 2 of part B of title V.
          (12) Current expenditures.--The term ``current 
        expenditures'' means expenditures for free public 
        education--
                  (A) including expenditures for 
                administration, instruction, attendance and 
                health services, pupil transportation services, 
                operation and maintenance of plant, fixed 
                charges, and net expenditures to cover deficits 
                for food services and student body activities; 
                but
                  (B) not including expenditures for community 
                services, capital outlay, and debt service, or 
                any expenditures made from funds received under 
                title I.
          (13) Department.--The term ``Department'' means the 
        Department of Education.
          (14) Distance learning.--The term ``distance 
        learning'' means the transmission of educational or 
        instructional programming to geographically dispersed 
        individuals and groups via telecommunications.
          (15) Dual or concurrent enrollment program.--The term 
        ``dual or concurrent enrollment program'' means a 
        program offered by a partnership between at least one 
        institution of higher education and at least one local 
        educational agency through which a secondary school 
        student who has not graduated from high school with a 
        regular high school diploma is able to enroll in one or 
        more postsecondary courses and earn postsecondary 
        credit that--
                  (A) is transferable to the institutions of 
                higher education in the partnership; and
                  (B) applies toward completion of a degree or 
                recognized educational credential as described 
                in the Higher Education Act of 1965 (20 U.S.C. 
                1001 et seq.).
          (16) Early childhood education program.--The term 
        ``early childhood education program'' has the meaning 
        given the term in section 103 of the Higher Education 
        Act of 1965 (20 U.S.C. 1003).
          (17) Early college high school.--The term ``early 
        college high school'' means a partnership between at 
        least one local educational agency and at least one 
        institution of higher education that allows 
        participants to simultaneously complete requirements 
        toward earning a regular high school diploma and earn 
        not less than 12 credits that are transferable to the 
        institutions of higher education in the partnership as 
        part of an organized course of study toward a 
        postsecondary degree or credential at no cost to the 
        participant or participant's family.
          (18) Educational service agency.--The term 
        ``educational service agency'' means a regional public 
        multiservice agency authorized by State statute to 
        develop, manage, and provide services or programs to 
        local educational agencies.
          (19) Elementary school.--The term ``elementary 
        school'' means a nonprofit institutional day or 
        residential school, including a public elementary 
        charter school, that provides elementary education, as 
        determined under State law.
          (20) English learner.--The term ``English learner'', 
        when used with respect to an individual, means an 
        individual--
                  (A) who is aged 3 through 21;
                  (B) who is enrolled or preparing to enroll in 
                an elementary school or secondary school;
                  (C)(i) who was not born in the United States 
                or whose native language is a language other 
                than English;
                  (ii)(I) who is a Native American or Alaska 
                Native, or a native resident of the outlying 
                areas; and
                  (II) who comes from an environment where a 
                language other than English has had a 
                significant impact on the individual's level of 
                English language proficiency; or
                  (iii) who is migratory, whose native language 
                is a language other than English, and who comes 
                from an environment where a language other than 
                English is dominant; and
                  (D) whose difficulties in speaking, reading, 
                writing, or understanding the English language 
                may be sufficient to deny the individual--
                          (i) the ability to meet the 
                        challenging State academicstandards;
                          (ii) the ability to successfully 
                        achieve in classrooms where the 
                        language of instruction is English; or
                          (iii) the opportunity to participate 
                        fully in society.
          (21) Evidence-based.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``evidence-based'', 
                when used with respect to a State, local 
                educational agency, or school activity, means 
                an activity, strategy, or intervention that--
                          (i) demonstrates a statistically 
                        significant effect on improving student 
                        outcomes or other relevant outcomes 
                        based on--
                                  (I) strong evidence from at 
                                least 1 well-designed and well-
                                implemented experimental study;
                                  (II) moderate evidence from 
                                at least 1 well-designed and 
                                well-implemented quasi-
                                experimental study; or
                                  (III) promising evidence from 
                                at least 1 well-designed and 
                                well-implemented correlational 
                                study with statistical controls 
                                for selection bias; or
                          (ii)(I) demonstrates a rationale 
                        based on high-quality research findings 
                        or positive evaluation that such 
                        activity, strategy, or intervention is 
                        likely to improve student outcomes or 
                        other relevant outcomes; and
                                  (II) includes ongoing efforts 
                                to examine the effects of such 
                                activity, strategy, or 
                                intervention.
                  (B) Definition for specific activities funded 
                under this act.--When used with respect to 
                interventions or improvement activities or 
                strategies funded under section 1003, the term 
                ``evidence-based'' means a State, local 
                educational agency, or school activity, 
                strategy, or intervention that meets the 
                requirements of subclause (I), (II), or (III) 
                of subparagraph (A)(i).
          (22) Expanded learning time.--The term ``expanded 
        learning time'' means using a longer school day, week, 
        or year schedule to significantly increase the total 
        number of school hours, in order to include additional 
        time for--
                  (A) activities and instruction for enrichment 
                as part of a well-rounded education; and
                  (B) instructional and support staff to 
                collaborate, plan, and engage in professional 
                development (including professional development 
                on family and community engagement) within and 
                across grades and subjects.
          (23) Extended-year adjusted cohort graduation rate.--
                  (A) In general.--The term ``extended-year 
                adjusted cohort graduation rate'' means the 
                fraction--
                          (i) the denominator of which consists 
                        of the number of students who form the 
                        original cohort of entering first-time 
                        students in grade 9 enrolled in the 
                        high school no later than the date by 
                        which student membership data must be 
                        collected annually by State educational 
                        agencies for submission to the National 
                        Center for Education Statistics under 
                        section 153 of the Education Sciences 
                        Reform Act of 2002 (20 U.S.C. 9543), 
                        adjusted by--
                                  (I) adding the students who 
                                joined that cohort, after the 
                                date of the determination of 
                                the original cohort; and
                                  (II) subtracting only those 
                                students who left that cohort, 
                                after the date of the 
                                determination of the original 
                                cohort, as described in 
                                subparagraph (B); and
                          (ii) the numerator of which--
                                  (I) consists of the sum of--
                                          (aa) the number of 
                                        students in the cohort, 
                                        as adjusted under 
                                        clause (i), who earned 
                                        a regular high school 
                                        diploma before, during, 
                                        or at the conclusion 
                                        of--
                                                  (AA) one or 
                                                more additional 
                                                years beyond 
                                                the fourth year 
                                                of high school; 
                                                or
                                                  (BB) a summer 
                                                session 
                                                immediately 
                                                following the 
                                                additional year 
                                                of high school; 
                                                and
                                          (bb) all students 
                                        with the most 
                                        significant cognitive 
                                        disabilities in the 
                                        cohort, as adjusted 
                                        under clause (i), 
                                        assessed using the 
                                        alternate assessment 
                                        aligned to alternate 
                                        academic achievement 
                                        standards under section 
                                        1111(b)(2)(D) and 
                                        awarded a State-defined 
                                        alternate diploma that 
                                        is--
                                                  (AA) 
                                                standards-
                                                based;
                                                  (BB) aligned 
                                                with the State 
                                                requirements 
                                                for the regular 
                                                high school 
                                                diploma; and
                                                  (CC) obtained 
                                                within the time 
                                                period for 
                                                which the State 
                                                ensures the 
                                                availability of 
                                                a free 
                                                appropriate 
                                                public 
                                                education under 
                                                section 
                                                612(a)(1) of 
                                                the Individuals 
                                                with 
                                                Disabilities 
                                                Education Act 
                                                (20 U.S.C. 
                                                1412(a)(1)); 
                                                and
                                  (II) shall not include any 
                                student awarded a recognized 
                                equivalent of a diploma, such 
                                as a general equivalency 
                                diploma, certificate of 
                                completion, certificate of 
                                attendance, or similar lesser 
                                credential.
                  (B) Cohort removal.--To remove a student from 
                a cohort, a school or local educational agency 
                shall require documentation, or obtain 
                documentation from the State educational 
                agency, to confirm that the student has 
                transferred out, emigrated to another country, 
                or transferred to a prison or juvenile 
                facility, or is deceased.
                  (C) Transferred out.--For purposes of this 
                paragraph, the term ``transferred out'' has the 
                meaning given the term in clauses (i), (ii), 
                and (iii) of paragraph (25)(C).
                  (D) Special rules.--
                          (i) Schools starting after grade 9.--
                        For those high schools that start after 
                        grade 9, the original cohort shall be 
                        calculated for the earliest high school 
                        grade students attend no later than the 
                        date by which student membership data 
                        is collected annually by State 
                        educational agencies for submission to 
                        the National Center for Education 
                        Statistics pursuant to section 153 of 
                        the Education Sciences Reform Act of 
                        2002 (20 U.S.C. 9543).
                          (ii) Very small schools.--A State 
                        educational agency may calculate the 
                        extended year adjusted cohort 
                        graduation rate described under this 
                        paragraph for a high school with an 
                        average enrollment over a 4-year period 
                        of less than 100 students for the 
                        purposes of section 1111(c)(4) by--
                                  (I) averaging the extended-
                                year adjusted cohort graduation 
                                rate of the school over a 
                                period of three years; or
                                  (II) establishing a minimum 
                                number of students that must be 
                                included in the cohort 
                                described in clause (i) of 
                                subparagraph (A) that will 
                                provide a valid graduation rate 
                                calculation as determined by 
                                the Secretary, below which the 
                                school shall be exempt from 
                                differentiation and 
                                identification under such 
                                section.
          (24) Family literacy services.--The term ``family 
        literacy services'' means services provided to 
        participants on a voluntary basis that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family, and that integrate all of the following 
        activities:
                  (A) Interactive literacy activities between 
                parents and their children.
                  (B) Training for parents regarding how to be 
                the primary teacher for their children and full 
                partners in the education of their children.
                  (C) Parent literacy training that leads to 
                economic self-sufficiency.
                  (D) An age-appropriate education to prepare 
                children for success in school and life 
                experiences.
          (25) Four-year adjusted cohort graduation rate.--
                  (A) In general.--The term ``four-year 
                adjusted cohort graduation rate'' means the 
                fraction--
                          (i) the denominator of which consists 
                        of the number of students who form the 
                        original cohort of entering first-time 
                        students in grade 9 enrolled in the 
                        high school no later than the date by 
                        which student membership data is 
                        collected annually by State educational 
                        agencies for submission to the National 
                        Center for Education Statistics 
                        pursuant to section 153 of the 
                        Education Sciences Reform Act of 2002 
                        (20 U.S.C. 9543), adjusted by--
                                  (I) adding the students who 
                                joined that cohort, after the 
                                date of the determination of 
                                the original cohort; and
                                  (II) subtracting only those 
                                students who left that cohort, 
                                after the date of the 
                                determination of the original 
                                cohort, as described in 
                                subparagraph (B); and
                          (ii) the numerator of which--
                                  (I) consists of the sum of--
                                          (aa) the number of 
                                        students in the cohort, 
                                        as adjusted under 
                                        clause (i), who earned 
                                        a regular high school 
                                        diploma before, during, 
                                        or at the conclusion 
                                        of--
                                                  (AA) the 
                                                fourth year of 
                                                high school; or
                                                  (BB) a summer 
                                                session 
                                                immediately 
                                                following the 
                                                fourth year of 
                                                high school; 
                                                and
                                          (bb) all students 
                                        with the most 
                                        significant cognitive 
                                        disabilities in the 
                                        cohort, as adjusted 
                                        under clause (i), 
                                        assessed using the 
                                        alternate assessment 
                                        aligned to alternate 
                                        academic achievement 
                                        standards under section 
                                        1111(b)(2)(D) and 
                                        awarded a State-defined 
                                        alternate diploma that 
                                        is--
                                                  (AA) 
                                                standards-
                                                based;
                                                  (BB) aligned 
                                                with the State 
                                                requirements 
                                                for the regular 
                                                high school 
                                                diploma; and
                                                  (CC) obtained 
                                                within the time 
                                                period for 
                                                which the State 
                                                ensures the 
                                                availability of 
                                                a free 
                                                appropriate 
                                                public 
                                                education under 
                                                section 
                                                612(a)(1) of 
                                                the Individuals 
                                                with 
                                                Disabilities 
                                                Education Act 
                                                (20 U.S.C. 
                                                1412(a)(1); and
                                  (II) shall not include any 
                                student awarded a recognized 
                                equivalent of a diploma, such 
                                as a general equivalency 
                                diploma, certificate of 
                                completion, certificate of 
                                attendance, or similar lesser 
                                credential.
                  (B) Cohort removal.--To remove a student from 
                a cohort, a school or local educational agency 
                shall require documentation, or obtain 
                documentation from the State educational 
                agency, to confirm that the student has 
                transferred out, emigrated to another country, 
                or transferred to a prison or juvenile 
                facility, or is deceased.
                  (C) Transferred out.--
                          (i) In general.--For purposes of this 
                        paragraph, the term ``transferred out'' 
                        means that a student, as confirmed by 
                        the high school or local educational 
                        agency in accordance with clause (ii), 
                        has transferred to--
                                  (I) another school from which 
                                the student is expected to 
                                receive a regular high school 
                                diploma; or
                                  (II) another educational 
                                program from which the student 
                                is expected to receive a 
                                regular high school diploma or 
                                an alternate diploma that meets 
                                the requirements of 
                                subparagraph (A)(ii)(I)(bb).
                          (ii) Confirmation requirements.--
                                  (I) Documentation required.--
                                The confirmation of a student's 
                                transfer to another school or 
                                educational program described 
                                in clause (i) requires 
                                documentation of such transfer 
                                from the receiving school or 
                                program in which the student 
                                enrolled.
                                  (II) Lack of confirmation.--A 
                                student who was enrolled in a 
                                high school, but for whom there 
                                is no confirmation of the 
                                student having transferred out, 
                                shall remain in the adjusted 
                                cohort.
                          (iii) Programs not providing 
                        credit.--Except as provided in 
                        subparagraph (A)(ii)(I)(bb), a student 
                        who is retained in grade or who is 
                        enrolled in a program leading to a 
                        general equivalency diploma, or other 
                        alternative educational program that 
                        does not issue or provide credit toward 
                        the issuance of a regular high school 
                        diploma, shall not be considered 
                        transferred out and shall remain in the 
                        adjusted cohort.
                  (D) Special rules.--
                          (i) Schools starting after grade 9.--
                        For those high schools that start after 
                        grade 9, the original cohort shall be 
                        calculated for the earliest high school 
                        grade students attend no later than the 
                        date by which student membership data 
                        must be collected annually by State 
                        educational agencies for submission to 
                        the National Center for Education 
                        Statistics pursuant to section 153 of 
                        the Education Sciences Reform Act of 
                        2002 (20 U.S.C. 9543).
                          (ii) Very small schools.--A State 
                        educational agency may calculate the 
                        four-year adjusted cohort graduation 
                        rate described under this paragraph for 
                        a high school with an average 
                        enrollment over a 4-year period of less 
                        than 100 students for the purposes of 
                        section 1111(c)(4) by--
                                  (I) averaging the four-year 
                                adjusted cohort graduation rate 
                                of the school over a period of 
                                three years; or
                                  (II) establishing a minimum 
                                number of students that must be 
                                included in the cohort 
                                described in clause (i) of 
                                subparagraph (A) that will 
                                provide a valid graduation rate 
                                calculation as determined by 
                                the Secretary, below which the 
                                school shall be exempt from 
                                differentiation and 
                                identification under such 
                                section.
          (26) Free public education.--The term ``free public 
        education'' means education that is provided--
                  (A) at public expense, under public 
                supervision and direction, and without tuition 
                charge; and
                  (B) as elementary school or secondary school 
                education as determined under applicable State 
                law, except that the term does not include any 
                education provided beyond grade 12.
          (27) Gifted and talented.--The term ``gifted and 
        talented'', when used with respect to students, 
        children, or youth, means students, children, or youth 
        who give evidence of high achievement capability in 
        areas such as intellectual, creative, artistic, or 
        leadership capacity, or in specific academic fields, 
        and who need services or activities not ordinarily 
        provided by the school in order to fully develop those 
        capabilities.
          (28) High school.--The term ``high school'' means a 
        secondary school that--
                  (A) grants a diploma, as defined by the 
                State; and
                  (B) includes, at least, grade 12.
          (29) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given that term in section 101(a) of the Higher 
        Education Act of 1965.
          (30) Local educational agency.--
                  (A) In general.--The term ``local educational 
                agency'' means a public board of education or 
                other public authority legally constituted 
                within a State for either administrative 
                control or direction of, or to perform a 
                service function for, public elementary schools 
                or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or of or for a 
                combination of school districts or counties 
                that is recognized in a State as an 
                administrative agency for its public elementary 
                schools or secondary schools.
                  (B) Administrative control and direction.--
                The term includes any other public institution 
                or agency having administrative control and 
                direction of a public elementary school or 
                secondary school.
                  (C)  bureau of indian education schools.--The 
                term includes an elementary school or secondary 
                school funded by the Bureau of Indian Education 
                but only to the extent that including the 
                school makes the school eligible for programs 
                for which specific eligibility is not provided 
                to the school in another provision of law and 
                the school does not have a student population 
                that is smaller than the student population of 
                the local educational agency receiving 
                assistance under this Act with the smallest 
                student population, except that the school 
                shall not be subject to the jurisdiction of any 
                State educational agency other than the Bureau 
                of Indian Education.
                  (D) Educational service agencies.--The term 
                includes educational service agencies and 
                consortia of those agencies.
                  (E) State educational agency.--The term 
                includes the State educational agency in a 
                State in which the State educational agency is 
                the sole educational agency for all public 
                schools.
          (31) Mentoring.--The term ``mentoring'', except when 
        used to refer to teacher mentoring, means a process by 
        which a responsible adult, postsecondary student, or 
        secondary school student works with a child to provide 
        a positive role model for the child, to establish a 
        supportive relationship with the child, and to provide 
        the child with academic assistance and exposure to new 
        experiences and examples of opportunity that enhance 
        the ability of the child to become a responsible adult.
          (32) Middle grades.--The term middle grades means any 
        of grades 5 through 8.
          (33) Multi-tier system of supports.--The term 
        ``multi-tier system of supports'' means a comprehensive 
        continuum of evidence-based, systemic practices to 
        support a rapid response to students' needs, with 
        regular observation to facilitate data-based 
        instructional decisionmaking.
          (34) Native american and native american language.--
        The terms ``Native American'' and ``Native American 
        language'' have the same meaning given those terms in 
        section 103 of the Native American Languages Act of 
        1990.
          (35) Other staff.--The term ``other staff'' means 
        specialized instructional support personnel, 
        librarians, career guidance and counseling personnel, 
        education aides, and other instructional and 
        administrative personnel.
          [(36) Outlying area.--The term ``outlying area''--
                  [(A) means American Samoa, the Commonwealth 
                of the Northern Mariana Islands, Guam, and the 
                United States Virgin Islands;
                  [(B) means the Republic of Palau, to the 
                extent permitted under section 105(f)(1)(B)(ix) 
                of the Compact of Free Association Amendments 
                Act of 2003 (Public Law 108-188; 117 Stat. 
                2751) and until an agreement for the extension 
                of United States education assistance under the 
                Compact of Free Association becomes effective 
                for the Republic of Palau; and
                  [(C) for the purpose of any discretionary 
                grant program under this Act, includes the 
                Republic of the Marshall Islands and the 
                Federated States of Micronesia, to the extent 
                permitted under section 105(f)(1)(B)(viii) of 
                the Compact of Free Association Amendments Act 
                of 2003 (Public Law 108-188; 117 Stat. 2751).]
          (36) Outlying area.--The term ``outlying area''--
                  (A) means American Samoa, the Commonwealth of 
                the Northern Mariana Islands, Guam, and the 
                United States Virgin Islands; and
                  (B) for the purpose of any discretionary 
                grant program under this Act, includes the 
                Republic of the Marshall Islands, the Federated 
                States of Micronesia, and the Republic of 
                Palau, to the extent that any such grant 
                program continues to be available to State and 
                local governments in the United States.
          (37) Paraprofessional.--The term 
        ``paraprofessional'', also known as a ``paraeducator'', 
        includes an education assistant and instructional 
        assistant.
          (38) Parent.--The term ``parent'' includes a legal 
        guardian or other person standing in loco parentis 
        (such as a grandparent or stepparent with whom the 
        child lives, or a person who is legally responsible for 
        the child's welfare).
          (39) Parental involvement.--The term ``parental 
        involvement'' means the participation of parents in 
        regular, two-way, and meaningful communication 
        involving student academic learning and other school 
        activities, including ensuring--
                  (A) that parents play an integral role in 
                assisting their child's learning;
                  (B) that parents are encouraged to be 
                actively involved in their child's education at 
                school;
                  (C) that parents are full partners in their 
                child's education and are included, as 
                appropriate, in decisionmaking and on advisory 
                committees to assist in the education of their 
                child; and
                  (D) the carrying out of other activities, 
                such as those described in section 1116.
          (40) Pay for success initiative.--The term ``pay for 
        success initiative'' means a performance-based grant, 
        contract, or cooperative agreement awarded by a public 
        entity in which a commitment is made to pay for 
        improved outcomes that result in social benefit and 
        direct cost savings or cost avoidance to the public 
        sector. Such an initiative shall include--
                  (A) a feasibility study on the initiative 
                describing how the proposed intervention is 
                based on evidence of effectiveness;
                  (B) a rigorous, third-party evaluation that 
                uses experimental or quasi-experimental design 
                or other research methodologies that allow for 
                the strongest possible causal inferences to 
                determine whether the initiative has met its 
                proposed outcomes;
                  (C) an annual, publicly available report on 
                the progress of the initiative; and
                  (D) a requirement that payments are made to 
                the recipient of a grant, contract, or 
                cooperative agreement only when agreed upon 
                outcomes are achieved, except that the entity 
                may make payments to the third party conducting 
                the evaluation described in subparagraph (B).
          (41) Poverty line.--The term ``poverty line'' means 
        the poverty line (as defined by the Office of 
        Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act) applicable to a family of the 
        size involved.
          (42) Professional development.--The term 
        ``professional development'' means activities that--
                  (A) are an integral part of school and local 
                educational agency strategies for providing 
                educators (including teachers, principals, 
                other school leaders, specialized instructional 
                support personnel, paraprofessionals, and, as 
                applicable, early childhood educators) with the 
                knowledge and skills necessary to enable 
                students to succeed in a well-rounded education 
                and to meet the challenging State academic 
                standards; and
                  (B) are sustained (not stand-alone, 1-day, or 
                short term workshops), intensive, 
                collaborative, job-embedded, data-driven, and 
                classroom-focused, and may include activities 
                that--
                          (i) improve and increase teachers'--
                                  (I) knowledge of the academic 
                                subjects the teachers teach;
                                  (II) understanding of how 
                                students learn; and
                                  (III) ability to analyze 
                                student work and achievement 
                                from multiple sources, 
                                including how to adjust 
                                instructional strategies, 
                                assessments, and materials 
                                based on such analysis;
                          (ii) are an integral part of broad 
                        schoolwide and districtwide educational 
                        improvement plans;
                          (iii) allow personalized plans for 
                        each educator to address the educator's 
                        specific needs identified in 
                        observation or other feedback;
                          (iv) improve classroom management 
                        skills;
                          (v) support the recruitment, hiring, 
                        and training of effective teachers, 
                        including teachers who became certified 
                        through State and local alternative 
                        routes to certification;
                          (vi) advance teacher understanding 
                        of--
                                  (I) effective instructional 
                                strategies that are evidence-
                                based; and
                                  (II) strategies for improving 
                                student academic achievement or 
                                substantially increasing the 
                                knowledge and teaching skills 
                                of teachers;
                          (vii) are aligned with, and directly 
                        related to, academic goals of the 
                        school or local educational agency;
                          (viii) are developed with extensive 
                        participation of teachers, principals, 
                        other school leaders, parents, 
                        representatives of Indian tribes (as 
                        applicable), and administrators of 
                        schools to be served under this Act;
                          (ix) are designed to give teachers of 
                        English learners, and other teachers 
                        and instructional staff, the knowledge 
                        and skills to provide instruction and 
                        appropriate language and academic 
                        support services to those children, 
                        including the appropriate use of 
                        curricula and assessments;
                          (x) to the extent appropriate, 
                        provide training for teachers, 
                        principals, and other school leaders in 
                        the use of technology (including 
                        education about the harms of copyright 
                        piracy), so that technology and 
                        technology applications are effectively 
                        used in the classroom to improve 
                        teaching and learning in the curricula 
                        and academic subjects in which the 
                        teachers teach;
                          (xi) as a whole, are regularly 
                        evaluated for their impact on increased 
                        teacher effectiveness and improved 
                        student academic achievement, with the 
                        findings of the evaluations used to 
                        improve the quality of professional 
                        development;
                          (xii) are designed to give teachers 
                        of children with disabilities or 
                        children with developmental delays, and 
                        other teachers and instructional staff, 
                        the knowledge and skills to provide 
                        instruction and academic support 
                        services, to those children, including 
                        positive behavioral interventions and 
                        supports, multi-tier system of 
                        supports, and use of accommodations;
                          (xiii) include instruction in the use 
                        of data and assessments to inform and 
                        instruct classroom practice;
                          (xiv) include instruction in ways 
                        that teachers, principals, other school 
                        leaders, specialized instructional 
                        support personnel, and school 
                        administrators may work more 
                        effectively with parents and families;
                          (xv) involve the forming of 
                        partnerships with institutions of 
                        higher education, including, as 
                        applicable, Tribal Colleges and 
                        Universities as defined in section 
                        316(b) of the Higher Education Act of 
                        1965 (20 U.S.C. 1059c(b)), to establish 
                        school-based teacher, principal, and 
                        other school leader training programs 
                        that provide prospective teachers, 
                        novice teachers, principals, and other 
                        school leaders with an opportunity to 
                        work under the guidance of experienced 
                        teachers, principals, other school 
                        leaders, and faculty of such 
                        institutions;
                          (xvi) create programs to enable 
                        paraprofessionals (assisting teachers 
                        employed by a local educational agency 
                        receiving assistance under part A of 
                        title I) to obtain the education 
                        necessary for those paraprofessionals 
                        to become certified and licensed 
                        teachers;
                          (xvii) provide follow-up training to 
                        teachers who have participated in 
                        activities described in this paragraph 
                        that are designed to ensure that the 
                        knowledge and skills learned by the 
                        teachers are implemented in the 
                        classroom; and
                          (xviii) where practicable, provide 
                        jointly for school staff and other 
                        early childhood education program 
                        providers, to address the transition to 
                        elementary school, including issues 
                        related to school readiness.
          (43) Regular high school diploma.--The term ``regular 
        high school diploma''--
                  (A) means the standard high school diploma 
                awarded to the preponderance of students in the 
                State that is fully aligned with State 
                standards, or a higher diploma, except that a 
                regular high school diploma shall not be 
                aligned to the alternate academic achievement 
                standards described in section 1111(b)(1)(E); 
                and
                  (B) does not include a recognized equivalent 
                of a diploma, such as a general equivalency 
                diploma, certificate of completion, certificate 
                of attendance, or similar lesser credential.
          (44) School leader.--The term ``school leader'' means 
        a principal, assistant principal, or other individual 
        who is--
                  (A) an employee or officer of an elementary 
                school or secondary school, local educational 
                agency, or other entity operating an elementary 
                school or secondary school; and
                  (B) responsible for the daily instructional 
                leadership and managerial operations in the 
                elementary school or secondary school building.
          (45) Secondary school.--The term ``secondary school'' 
        means a nonprofit institutional day or residential 
        school, including a public secondary charter school, 
        that provides secondary education, as determined under 
        State law, except that the term does not include any 
        education beyond grade 12.
          (46) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (47) Specialized instructional support personnel; 
        specialized instructional support services.--
                  (A) Specialized instructional support 
                personnel.--The term ``specialized 
                instructional support personnel'' means--
                          (i) school counselors, school social 
                        workers, and school psychologists; and
                          (ii) other qualified professional 
                        personnel, such as school nurses, 
                        speech language pathologists, and 
                        school librarians, involved in 
                        providing assessment, diagnosis, 
                        counseling, educational, therapeutic, 
                        and other necessary services (including 
                        related services as that term is 
                        defined in section 602 of the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1401)) as part of a 
                        comprehensive program to meet student 
                        needs.
                  (B) Specialized instructional support 
                services.--The term ``specialized instructional 
                support services'' means the services provided 
                by specialized instructional support personnel.
          (48) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each of the outlying areas.
          (49) State educational agency.--The term ``State 
        educational agency'' means the agency primarily 
        responsible for the State supervision of public 
        elementary schools and secondary schools.
          (50) Technology.--The term ``technology'' means 
        modern information, computer and communication 
        technology products, services, or tools, including, the 
        Internet and other communications networks, computer 
        devices and other computer and communications hardware, 
        software applications, data systems, and other 
        electronic content (including multimedia content) and 
        data storage.
          (51) Universal design for learning.--The term 
        ``universal design for learning'' has the meaning given 
        the term in section 103 of the Higher Education Act of 
        1965 (20 U.S.C. 1003).
          (52) Well-rounded education.--The term ``well-rounded 
        education'' means courses, activities, and programming 
        in subjects such as English, reading or language arts, 
        writing, science, technology, engineering, mathematics, 
        foreign languages, civics and government, economics, 
        arts, history, geography, computer science, music, 
        career and technical education, health, physical 
        education, and any other subject, as determined by the 
        State or local educational agency, with the purpose of 
        providing all students access to an enriched curriculum 
        and educational experience.

           *       *       *       *       *       *       *

                              ----------                              


           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003



           *       *       *       *       *       *       *
      TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; 
 INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND 
U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM 
                    COMPACT AND U.S.-RMI COMPACT.

  (a) Human Rights.--In approving the U.S.-FSM Compact and the 
U.S.-RMI Compact, Congress notes the conclusion in the 
Statement of Intent of the Report of The Future Political 
Status Commission of the Congress of Micronesia in July, 1969, 
that ``our recommendation of a free associated state is 
indissolubly linked to our desire for such a democratic, 
representative, constitutional government'' and notes that such 
desire and intention are reaffirmed and embodied in the 
Constitutions of the Federated States of Micronesia and the 
Republic of the Marshall Islands. Congress also notes and 
specifically endorses the preamble to the U.S.-FSM Compact and 
the U.S.-RMI Compact, which affirms that the governments of the 
parties to the U.S.-FSM Compact and the U.S.-RMI Compact are 
founded upon respect for human rights and fundamental freedoms 
for all. The Secretary of State shall include in the annual 
reports on the status of internationally recognized human 
rights in foreign countries, which are submitted to Congress 
pursuant to sections 116 and 502B of the Foreign Assistance Act 
of 1961, ``22 U.S.C. 2151n, 2304'' a full and complete report 
regarding the status of internationally recognized human rights 
in the Federated States of Micronesia and the Republic of the 
Marshall Islands.
  (b) Immigration and Passport Security.--
          (1) Naturalized citizens.--The rights of a bona fide 
        naturalized citizen of the Federated States of 
        Micronesia or the Republic of the Marshall Islands to 
        enter the United States, to lawfully engage therein in 
        occupations, and to establish residence therein as a 
        nonimmigrant, to the extent such rights are provided 
        under section 141 of the U.S.-FSM Compact and the U.S.-
        RMI Compact, shall not be deemed to extend to any such 
        naturalized citizen with respect to whom circumstances 
        associated with the acquisition of the status of a 
        naturalized citizen are such as to allow a reasonable 
        inference, on the part of appropriate officials of the 
        United States and subject to United States procedural 
        requirements, that such naturalized status was acquired 
        primarily in order to obtain such rights.
          (2) Passports.--It is the sense of Congress that up 
        to $250,000 of the grant assistance provided to the 
        Federated States of Micronesia pursuant to section 
        211(a)(4) of the U.S.-FSM Compact, and up to $250,000 
        of the grant assistance provided to the Republic of the 
        Marshall Islands pursuant to section 211(a)(4) of the 
        U.S.-RMI Compact (or a greater amount of the section 
        211(a)(4) grant, if mutually agreed between the 
        Government of the United States and the government of 
        the Federated States of Micronesia or the government of 
        the Republic of the Marshall Islands), be used for the 
        purpose of increasing the machine-readability and 
        security of passports issued by such jurisdictions. It 
        is further the sense of Congress that such funds be 
        obligated by September 30, 2004 and in the amount and 
        manner specified by the Secretary of State in 
        consultation with the Secretary of Homeland Security 
        and, respectively, with the government of the Federated 
        States of Micronesia and the government of the Republic 
        of the Marshall Islands. The United States Government 
        is authorized to require that passports used for the 
        purpose of seeking admission under section 141 of the 
        U.S.-FSM Compact and the U.S.-RMI Compact contain the 
        security enhancements funded by such assistance.
          (3) Information-sharing.--It is the sense of Congress 
        that the governments of the Federated States of 
        Micronesia and the Republic of the Marshall Islands 
        develop, prior to October 1, 2004, the capability to 
        provide reliable and timely information as may 
        reasonably be required by the Government of the United 
        States in enforcing criminal and security-related 
        grounds of inadmissibility and deportability under the 
        Immigration and Nationality Act, as amended, and shall 
        provide such information to the Government of the 
        United States.
          (4) Transition; construction of sections 141(a)(3) 
        and 141(a)(4) of the u.s.-fsm compact and u.s.-rmi 
        compact.--The words ``the effective date of this 
        Compact, as amended'' in sections 141(a)(3) and 
        141(a)(4) of the U.S.-FSM Compact and the U.S.-RMI 
        Compact shall be construed to read, ``on the day prior 
        to the enactment by the United States Congress of the 
        Compact of Free Association Amendments Act of 2003.''.
  (c) Nonalienation of Lands.--Congress endorses and encourages 
the maintenance of the policies of the Government of the 
Federated States of Micronesia and the Government of the 
Republic of the Marshall Islands to regulate, in accordance 
with their Constitutions and laws, the alienation of permanent 
interests in real property so as to restrict the acquisition of 
such interests to persons of Federated States of Micronesia 
citizenship and the Republic of the Marshall Islands 
citizenship, respectively.
  (d) Nuclear Waste Disposal.--In approving the U.S.-FSM 
Compact and the U.S.-RMI Compact, Congress understands that the 
Government of the Federated States of Micronesia and the 
Government of the Republic of the Marshall Islands will not 
permit any other government or any nongovernmental party to 
conduct, in the Republic of the Marshall Islands or in the 
Federated States of Micronesia, any of the activities specified 
in subsection (a) of section 314 of the U.S.-FSM Compact and 
the U.S.-RMI Compact.
  (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact 
on the State of Hawaii, Guam, the Commonwealth of the Northern 
Mariana Islands and American Samoa; Related Authorization and 
Continuing Appropriation.--
          (1) Statement of congressional intent.--In 
        reauthorizing the U.S.-FSM Compact and the U.S.-RMI 
        Compact, it is not the intent of Congress to cause any 
        adverse consequences for an affected jurisdiction.
          (2) Definitions.--For the purposes of this title--
                  (A) the term ``affected jurisdiction'' means 
                American Samoa, Guam, the Commonwealth of the 
                Northern Mariana Islands, or the State of 
                Hawaii; and
                  (B) the term ``qualified nonimmigrant'' means 
                a person, or their children under the age of 
                18, admitted or resident pursuant to section 
                141 of the U.S.-RMI or U.S.-FSM Compact, or 
                section 141 of the Palau Compact who, as of a 
                date referenced in the most recently published 
                enumeration is a resident of an affected 
                jurisdiction. As used in this subsection, the 
                term ``resident'' shall be a person who has a 
                ``residence,'' as that term is defined in 
                section 101(a)(33) of the Immigration and 
                Nationality Act, as amended.
          (3) Authorization and continuing appropriation.--
        There is hereby authorized and appropriated to the 
        Secretary of the Interior, out of any funds in the 
        Treasury not otherwise appropriated, to remain 
        available until expended, for each fiscal year from 
        2004 through 2023, $30,000,000 for grants to affected 
        jurisdictions to aid in defraying costs incurred by 
        affected jurisdictions as a result of increased demands 
        placed on health, educational, social, or public safety 
        services or infrastructure related to such services due 
        to the residence in affected jurisdictions of qualified 
        nonimmigrants from the Republic of the Marshall 
        Islands, the Federated States of Micronesia, or the 
        Republic of Palau. The grants shall be--
                  (A) awarded and administered by the 
                Department of the Interior, Office of Insular 
                Affairs, or any successor thereto, in 
                accordance with regulations, policies and 
                procedures applicable to grants so awarded and 
                administered; and
                  (B) used only for health, educational, 
                social, or public safety services, or 
                infrastructure related to such services, 
                specifically affected by qualified 
                nonimmigrants.
          (4) Enumeration.--The Secretary of the Interior shall 
        conduct periodic enumerations of qualified 
        nonimmigrants in each affected jurisdiction. The 
        enumerations--
                  (A) shall be conducted at such intervals as 
                the Secretary of the Interior shall determine, 
                but no less frequently than every five years, 
                [beginning in fiscal year 2003] during the 
                period of fiscal years 2003 through 2023;
                  (B) shall be supervised by the United States 
                Bureau of the Census or such other organization 
                as the Secretary of the Interior may select; 
                and
                  (C) [after fiscal year 2003] for the period 
                of fiscal years 2004 through 2023, shall be 
                funded by the Secretary of the Interior by 
                deducting such sums as are necessary, but not 
                to exceed $300,000 as adjusted for inflation 
                pursuant to section 217 of the U.S.-FSM Compact 
                with fiscal year 2003 as the base year, per 
                enumeration, from funds appropriated pursuant 
                to the authorization contained in paragraph (3) 
                of this subsection.
          [(5) Allocation.--The Secretary of the Interior shall 
        allocate to the government of each affected 
        jurisdiction, on the basis of the results of the most 
        recent enumeration, grants in an aggregate amount equal 
        to the total amount of funds appropriated under 
        paragraph (3) of this subsection, as reduced by any 
        deductions authorized by subparagraph (C) of paragraph 
        (4) of this subsection, multiplied by a ratio derived 
        by dividing the number of qualified nonimmigrants in 
        such affected jurisdiction by the total number of 
        qualified nonimmigrants in all affected jurisdictions.]
          [(6)] (5) Authorization for health care 
        reimbursement.--There are hereby authorized to be 
        appropriated to the Secretary of the Interior such sums 
        as may be necessary to reimburse health care 
        institutions in the affected jurisdictions for costs 
        resulting from the migration of citizens of the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia and the Republic of Palau to the affected 
        jurisdictions as a result of the implementation of the 
        Compact of Free Association, approved by Public Law 99-
        239, or the approval of the U.S.-FSM Compact and the 
        U.S.-RMI Compact by this resolution.
          [(7)] (6) Use of dod medical facilities and national 
        health service corps.--
                  (A) DOD medical facilities.--The Secretary of 
                Defense shall make available, on a space 
                available and reimbursable basis, the medical 
                facilities of the Department of Defense for use 
                by citizens of the Federated States of 
                Micronesia and the Republic of the Marshall 
                Islands who are properly referred to the 
                facilities by government authorities 
                responsible for provision of medical services 
                in the Federated States of Micronesia, the 
                Republic of the Marshall Islands, the Republic 
                of Palau and the affected jurisdictions.
                  (B) National health service corps.--The 
                Secretary of Health and Human Services shall 
                continue to make the services of the National 
                Health Service Corps available to the residents 
                of the Federated States of Micronesia and the 
                Republic of the Marshall Islands to the same 
                extent and for so long as such services are 
                authorized to be provided to persons residing 
                in any other areas within or outside the United 
                States.
                  (C) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this paragraph such sums as are necessary for 
                each fiscal year.
          [(8)] (7) Reporting requirement.--Not later than one 
        year after the date of enactment of this joint 
        resolution, and at one year intervals thereafter, the 
        Governors of Guam, the State of Hawaii, the 
        Commonwealth of the Northern Mariana Islands, and 
        American Samoa may provide to the Secretary of the 
        Interior by February 1 of each year their comments with 
        respect to the impacts of the Compacts on their 
        respective jurisdiction. The Secretary of the Interior, 
        upon receipt of any such comments, shall report to the 
        Congress not later than May 1 of each year and include 
        the following:
                  (A) The Governor's comments on the impacts of 
                the Compacts as well as the Administration's 
                analysis of such impact.
                  (B) The Administration views on any 
                recommendations for corrective action to 
                eliminate those consequences as proposed by 
                such Governors.
                  (C) With regard to immigration, statistics 
                concerning the number of persons availing 
                themselves of the rights described in section 
                141(a) of the Compact during the year covered 
                by each report.
                  (D) With regard to trade, an analysis of the 
                impact on the economy of American Samoa 
                resulting from imports of canned tuna into the 
                United States from the Federated States of 
                Micronesia, and the Republic of the Marshall 
                Islands.
          [(9)] (8) Reconciliation of unreimbursed impact 
        expenses.--
                  (A) In general.--Notwithstanding any other 
                provision of law, the President, to address 
                previously accrued and unreimbursed impact 
                expenses, may, at the request of the Governor 
                of Guam or the Governor of the Commonwealth of 
                the Northern Mariana Islands, reduce, release, 
                or waive all or part of any amounts owed by the 
                Government of Guam or the Government of the 
                Commonwealth of the Northern Mariana Islands 
                (or either government's autonomous agencies or 
                instrumentalities), respectively, to any 
                department, agency, independent agency, office, 
                or instrumentality of the United States.
                  (B) Terms and conditions.--
                          (i) Substantiation of impact costs.--
                        Not later than 120 days after the date 
                        of the enactment of this resolution, 
                        the Governor of Guam and the Governor 
                        of the Commonwealth of the Northern 
                        Mariana Islands shall each submit to 
                        the Secretary of the Interior a report, 
                        prepared in consultation with an 
                        independent accounting firm, 
                        substantiating unreimbursed impact 
                        expenses claimed for the period from 
                        January 14, 1986, through September 30, 
                        2003. Upon request of the Secretary of 
                        the Interior, the Governor of Guam and 
                        the Governor of the Commonwealth of the 
                        Northern Mariana Islands shall submit 
                        to the Secretary of the Interior copies 
                        of all documents upon which the report 
                        submitted by that Governor under this 
                        clause was based.
                          (ii) Congressional notification.--The 
                        President shall notify Congress of his 
                        intent to exercise the authority 
                        granted in subparagraph (A).
                          (iii) Congressional review and 
                        comment.--Any reduction, release, or 
                        waiver under this Act shall not take 
                        effect until 60 days after the 
                        President notifies Congress of his 
                        intent to approve a request of the 
                        Governor of Guam or the Governor of the 
                        Commonwealth of the Northern Mariana 
                        Islands. In exercising his authority 
                        under this section and in determining 
                        whether to give final approval to a 
                        request, the President shall take into 
                        consideration comments he may receive 
                        after Congressional review.
                          (iv) Expiration.--The authority 
                        granted in subparagraph (A) shall 
                        expire on February 28, 2005.
          [(10)] (9) Authorization of appropriations for 
        grants.--There are hereby authorized to the Secretary 
        of the Interior for each of fiscal years 2004 through 
        2023 such sums as may be necessary for grants to the 
        governments of Guam, the State of Hawaii, the 
        Commonwealth of the Northern Mariana Islands, and 
        American Samoa, as a result of increased demands placed 
        on educational, social, or public safety services or 
        infrastructure related to such services due to the 
        presence in Guam, Hawaii, the Commonwealth of the 
        Northern Mariana Islands, and American Samoa of 
        qualified nonimmigrants from the Federated States of 
        Micronesia, the Republic of the Marshall Islands, and 
        the Republic of Palau.
  (f) Foreign Loans.--Congress hereby reaffirms the United 
States position that the United States Government is not 
responsible for foreign loans or debt obtained by the 
Governments of the Federated States of Micronesia and the 
Republic of the Marshall Islands.
  (g) Sense of Congress Concerning Funding of Public 
Infrastructure.--It is the sense of Congress that not less than 
30 percent of the United States annual grant assistance 
provided under section 211 of the Compact of Free Association, 
as amended, between the Government of the United States of 
America and the Government of the Federated States of 
Micronesia, and not less than 30 percent of the total amount of 
section 211 funds allocated to each of the States of the 
Federated States of Micronesia, shall be invested in 
infrastructure improvements and maintenance in accordance with 
section 211(a)(6). It is further the sense of Congress that not 
less than 30 percent of the United States annual grant 
assistance provided under section 211 of the Compact of Free 
Association, as amended, between the Government of the United 
States of America and the Government of the Republic of the 
Marshall Islands, shall be invested in infrastructure 
improvements and maintenance in accordance with section 211(d).
  (h) Reports and Reviews.--
          (1) Report by the president.--Not later than the end 
        of the first full calendar year following enactment of 
        this resolution, and not later than December 31 of each 
        year thereafter, the President shall report to Congress 
        regarding the Federated States of Micronesia and the 
        Republic of the Marshall Islands, including but not 
        limited to--
                  (A) general social, political, and economic 
                conditions, including estimates of economic 
                growth, per capita income, and migration rates;
                  (B) the use and effectiveness of United 
                States financial, program, and technical 
                assistance;
                  (C) the status of economic policy reforms 
                including but not limited to progress toward 
                establishing self-sufficient tax rates;
                  (D) the status of the efforts to increase 
                investment including: the rate of 
                infrastructure investment of U.S. financial 
                assistance under the U.S.-FSM Compact and the 
                U.S.-RMI Compact; non-U.S. contributions to the 
                trust funds, and the level of private 
                investment; and
                  (E) recommendations on ways to increase the 
                effectiveness of United States assistance and 
                to meet overall economic performance 
                objectives, including, if appropriate, 
                recommendations to Congress to adjust the 
                inflation rate or to adjust the contributions 
                to the Trust Funds based on non-U.S. 
                contributions.
          (2) Review.--During the year of the fifth, tenth, and 
        fifteenth anniversaries of the date of enactment of 
        this resolution, the Government of the United States 
        shall review the terms of the respective Compacts and 
        consider the overall nature and development of the 
        U.S.-FSM and U.S.-RMI relationships including the 
        topics set forth in subparagraphs (A) through (E) of 
        paragraph (1). In conducting the reviews, the 
        Government of the United States shall consider the 
        operating requirements of the Government of the 
        Federated States of Micronesia and the Government of 
        the Republic of the Marshall Islands and their progress 
        in meeting the development objectives set forth in 
        their respective development plans. The President shall 
        include in the annual reports to Congress for the years 
        following the reviews the comments of the Government of 
        the Federated States of Micronesia and the Government 
        of the Republic of the Marshall Islands on the topics 
        described in this paragraph, the President's response 
        to the comments, the findings resulting from the 
        reviews, and any recommendations for actions to respond 
        to such findings.
  (i) Construction of Section 141(f).--Section 141(f)(2) of the 
Compact of Free Association, as amended, between the Government 
of the United States of America and the Government of the 
Federated States of Micronesia and of the Compact of Free 
Association, as amended, between the Government of the United 
States of America and the Government of the Republic of the 
Marshall Islands, shall be construed as though, after ``may by 
regulations prescribe'', there were included the following: ``, 
except that any such regulations that would have a significant 
effect on the admission, stay and employment privileges 
provided under this section shall not become effective until 90 
days after the date of transmission of the regulations to the 
Committee on Energy and Natural Resources and the Committee on 
the Judiciary of the Senate and the Committee on Resources, the 
Committee on International Relations, and the Committee on the 
Judiciary of the House of Representatives''.
  (j) Inflation Adjustment.--As of Fiscal Year 2015, if the 
United States Gross Domestic Product Implicit Price Deflator 
average for Fiscal Years 2009 through 2013 is greater than 
United States Gross Domestic Product Implicit Price Deflator 
average for Fiscal Years 2004 through 2008 (as reported in the 
Survey of Current Business or subsequent publication and 
compiled by the Department of the Interior), then section 217 
of the U.S.-FSM Compact, paragraph 5 of Article II of the U.S.-
FSM Fiscal Procedures Agreement, section 218 of the U.S.-RMI 
Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal 
Procedures Agreement shall be construed as if ``the full'' 
appeared in place of ``two-thirds of the'' each place those 
words appear. If an inflation adjustment is made under this 
subsection, the base year for calculating the inflation 
adjustment shall be fiscal year 2014.
  (k) Participation by Secondary Schools in the Armed Services 
Vocational Aptitude Battery (ASVAB) Student Testing Program.--
In furtherance of the provisions of Title Three, Article IV, 
Section 341 of the U.S.-FSM and the U.S.-RMI Compacts, the 
purpose of which is to establish the privilege to volunteer for 
service in the U.S. Armed Forces, it is the sense of Congress 
that, to facilitate eligibility of FSM and RMI secondary school 
students to qualify for such service, the Department of Defense 
may extend the Armed Services Vocational Aptitude Battery 
(ASVAB) Student Testing Program (STP) and the ASVAB Career 
Exploration Program to selected secondary Schools in the FSM 
and the RMI to the extent such programs are available to 
Department of Defense Dependent Schools located in foreign 
jurisdictions.

SEC. 105. SUPPLEMENTAL PROVISIONS.

  (a) Domestic Program Requirements.--Except as may otherwise 
be provided in this joint resolution, all United States Federal 
programs and services extended to or operated in the Federated 
States of Micronesia or the Republic of the Marshall Islands 
are and shall remain subject to all applicable criteria, 
standards, reporting requirements, auditing procedures, and 
other rules and regulations applicable to such programs when 
operating in the United States (including its territories and 
commonwealths).
  (b) Relations With the Federated States of Micronesia and the 
Republic of the Marshall Islands.--
          (1) Appropriations made pursuant to Article I of 
        Title Two and subsection (a)(2) of section 221 of 
        article II of Title Two of the U.S.-FSM Compact and the 
        U.S.-RMI Compact shall be made to the Secretary of the 
        Interior, who shall have the authority necessary to 
        fulfill his responsibilities for monitoring and 
        managing the funds so appropriated consistent with the 
        U.S.-FSM Compact and the U.S.-RMI Compact, including 
        the agreements referred to in section 462(b)(4) of the 
        U.S.-FSM Compact and U.S.-RMI Compact (relating to 
        Fiscal Procedures) and the agreements referred to in 
        section 462(b)(5) of the U.S.-FSM Compact and the U.S.-
        RMI Compact (regarding the Trust Funds).
          (2) Appropriations made pursuant to subsections 
        (a)(1) and (a)(3) through (6) of section 221 of Article 
        II of Title Two of the U.S.-FSM Compact and subsection 
        (a)(1) and (a)(3) through (5) of the U.S.-RMI Compact 
        shall be made directly to the agencies named in those 
        subsections.
          (3) Appropriations for services and programs referred 
        to in subsection (b) of section 221 of Article II of 
        Title Two of the U.S.-FSM Compact or U.S.-RMI Compact 
        and appropriations for services and programs referred 
        to in sections 105(f) and 108(a) of this joint 
        resolution shall be made to the relevant agencies in 
        accordance with the terms of the appropriations for 
        such services and programs.
          (4) Federal agencies providing programs and services 
        to the Federated States of Micronesia and the Republic 
        of the Marshall Islands shall coordinate with the 
        Secretaries of the Interior and State regarding 
        provision of such programs and services. The 
        Secretaries of the Interior and State shall consult 
        with appropriate officials of the Asian Development 
        Bank and with the Secretary of the Treasury regarding 
        overall economic conditions in the Federated States of 
        Micronesia and the Republic of the Marshall Islands and 
        regarding the activities of other donors of assistance 
        to the Federated States of Micronesia and the Republic 
        of the Marshall Islands.
          [(5) United States Government employees in either the 
        Federated States of Micronesia or the Republic of the 
        Marshall Islands are subject to the authority of the 
        United States Chief of Mission, including as elaborated 
        in section 207 of the Foreign Service Act and the 
        President's Letter of Instruction to the United States 
        Chief of Mission and any order or directive of the 
        President in effect from time to time.]
          (5) Pursuant to section 207 of the Foreign Service 
        Act of 1980 (22 U.S.C. 3927), all United States 
        Government executive branch employees in the Federated 
        States of Micronesia, the Republic of the Marshall 
        Islands, and the Republic of Palau fall under the 
        authority of the respective applicable chief of 
        mission, except for employees identified as excepted 
        from the authority under Federal law or by Presidential 
        directive.
          (6) Interagency group on freely associated states' 
        affairs.--
                  (A) In general.--The President is hereby 
                authorized to appoint an Interagency Group on 
                Freely Associated States' Affairs to provide 
                policy guidance and recommendations on 
                implementation of the U.S.-FSM Compact and the 
                U.S.-RMI Compact to Federal departments and 
                agencies.
                  (B) Secretaries.--It is the sense of Congress 
                that the Secretary of State and the Secretary 
                of the Interior shall be represented on the 
                Interagency Group.
          (7) United states appointees to joint committees.--
                  (A) Joint economic management committee.--
                          (i) In general.--The three United 
                        States appointees (United States chair 
                        plus two members) to the Joint Economic 
                        Management Committee provided for in 
                        section 213 of the U.S.-FSM Compact and 
                        Article III of the U.S.-FSM Fiscal 
                        Procedures Agreement referred to in 
                        section 462(b)(4) of the U.S.-FSM 
                        Compact shall be United States 
                        Government officers or employees.
                          (ii) Departments.--It is the sense of 
                        Congress that 2 of the 3 appointees 
                        should be designated from the 
                        Department of State and the Department 
                        of the Interior, and that U.S. 
                        officials of the Asian Development Bank 
                        shall be consulted in order to properly 
                        coordinate U.S. and Asian Development 
                        Bank financial, program, and technical 
                        assistance.
                          (iii) Additional scope.--Section 213 
                        of the U.S.-FSM Compact shall be 
                        construed to read as though the phrase, 
                        ``the implementation of economic policy 
                        reforms to encourage investment and to 
                        achieve self-sufficient tax rates,'' 
                        were inserted after ``with particular 
                        focus on those parts of the plan 
                        dealing with the sectors identified in 
                        subsection (a) of section 211''.
                  (B) Joint economic management and financial 
                accountability committee.--
                          (i) In general.--The three United 
                        States appointees (United States chair 
                        plus two members) to the Joint Economic 
                        Management and Financial Accountability 
                        Committee provided for in section 214 
                        of the U.S.-RMI Compact and Article III 
                        of the U.S.-RMI Fiscal Procedures 
                        Agreement referred to in section 
                        462(b)(4) of the U.S.-RMI Compact shall 
                        be United States Government officers or 
                        employees.
                          (ii) Departments.--It is the sense of 
                        Congress that 2 of the 3 appointees 
                        should be designated from the 
                        Department of State and the Department 
                        of the Interior, and that U.S. 
                        officials of the Asian Development Bank 
                        shall be consulted in order to properly 
                        coordinate U.S. and Asian Development 
                        Bank financial, program, and technical 
                        assistance.
                          (iii) Additional scope.--Section 214 
                        of the U.S.-RMI Compact shall be 
                        construed to read as though the phrase, 
                        ``the implementation of economic policy 
                        reforms to encourage investment and to 
                        achieve self-sufficient tax rates,'' 
                        were inserted after ``with particular 
                        focus on those parts of the framework 
                        dealing with the sectors and areas 
                        identified in subsection (a) of section 
                        211''.
          (8) Oversight and coordination.--It is the sense of 
        Congress that the Secretary of State and the Secretary 
        of the Interior shall ensure that there are personnel 
        resources committed in the appropriate numbers and 
        locations to ensure effective oversight of United 
        States assistance, and effective coordination of 
        assistance among United States agencies and with other 
        international donors such as the Asian Development 
        Bank.
          (9) The United States voting members (United States 
        chair plus two or more members) of the Trust Fund 
        Committee appointed by the Government of the United 
        States pursuant to Article 7 of the Trust Fund 
        Agreement implementing section 215 of the U.S.-FSM 
        Compact and referred to in section 462(b)(5) of the 
        U.S.-FSM Compact and any alternates designated by the 
        Government of the United States shall be United States 
        Government officers or employees. The United States 
        voting members (United States chair plus two or more 
        members) of the Trust Fund Committee appointed by the 
        Government of the United States pursuant to Article 7 
        of the Trust Fund Agreement implementing section 216 of 
        the U.S.-RMI Compact and referred to in section 
        462(b)(5) of the U.S.-RMI Compact and any alternates 
        designated by the Government of the United States shall 
        be United States Government officers or employees. It 
        is the sense of Congress that the appointees should be 
        designated from the Department of State, the Department 
        of the Interior, and the Department of the Treasury.
          (10) The Trust Fund Committee provided for in Article 
        7 of the U.S.-FSM Trust Fund Agreement implementing 
        section 215 of the U.S.-FSM Compact shall be a 
        nonprofit corporation incorporated under the laws of 
        the District of Columbia. To the extent that any law, 
        rule, regulation or ordinance of the District of 
        Columbia, or of any State or political subdivision 
        thereof in which the Trust Fund Committee is 
        incorporated or doing business, impedes or otherwise 
        interferes with the performance of the functions of the 
        Trust Fund Committee pursuant to this joint resolution, 
        such law, rule, regulation, or ordinance shall be 
        deemed to be preempted by this joint resolution. The 
        Trust Fund Committee provided for in Article 7 of the 
        U.S.-RMI Trust Fund Agreement implementing section 216 
        of the U.S.-RMI Compact shall be a non-profit 
        corporation incorporated under the laws of the District 
        of Columbia. To the extent that any law, rule, 
        regulation or ordinance of the District of Columbia, or 
        of any State or political subdivision thereof in which 
        the Trust Fund Committee is incorporated or doing 
        business, impedes or otherwise interferes with the 
        performance of the functions of the Trust Fund 
        Committee pursuant to this joint resolution, such law, 
        rule, regulation, or ordinance shall be deemed to be 
        preempted by this joint resolution.
  (c) Continuing Trust Territory Authorization.--The 
authorization provided by the Act of June 30, 1954, as amended 
(68 Stat. 330) shall remain available after the effective date 
of the Compact with respect to the Federated States of 
Micronesia and the Republic of the Marshall Islands for the 
following purposes:
          (1) Prior to October 1, 1986, for any purpose 
        authorized by the Compact or the joint resolution of 
        January 14, 1986 (Public Law 99-239).
          (2) Transition purposes, including but not limited 
        to, completion of projects and fulfillment of 
        commitments or obligations; termination of the Trust 
        Territory Government and termination of the High Court; 
        health and education as a result of exceptional 
        circumstances; ex gratia contributions for the 
        populations of Bikini, Enewetak, Rongelap, and Utrik; 
        and technical assistance and training in financial 
        management, program administration, and maintenance of 
        infrastructure.
  (d) Survivability.--In furtherance of the provisions of Title 
Four, Article V, sections 452 and 453 of the U.S.-FSM Compact 
and the U.S.-RMI Compact, any provisions of the U.S.-FSM 
Compact or the U.S.-RMI Compact which remain effective after 
the termination of the U.S.-FSM Compact or U.S.-RMI Compact by 
the act of any party thereto and which are affected in any 
manner by provisions of this title shall remain subject to such 
provisions.
  (e) Noncompliance Sanctions; Actions Incompatible With United 
States Authority.--Congress expresses its understanding that 
the Governments of the Federated States of Micronesia and the 
Republic of the Marshall Islands will not act in a manner 
incompatible with the authority and responsibility of the 
United States for security and defense matters in or related to 
the Federated States of Micronesia or the Republic of the 
Marshall Islands pursuant to the U.S.-FSM Compact or the U.S.-
RMI Compact, including the agreements referred to in sections 
462(a)(2) of the U.S.-FSM Compact and 462(a)(5) of the U.S.-RMI 
Compact. Congress further expresses its intention that any such 
act on the part of either such Government will be viewed by the 
United States as a material breach of the U.S.-FSM Compact or 
U.S.-RMI Compact. The Government of the United States reserves 
the right in the event of such a material breach of the U.S.-
FSM Compact by the Government of the Federated States of 
Micronesia or the U.S.-RMI Compact by the Government of the 
Republic of the Marshall Islands to take action, including (but 
not limited to) the suspension in whole or in part of the 
obligations of the Government of the United States to that 
Government.
  (f) Continuing Programs and Laws.--
          (1) Federated states of micronesia and republic of 
        the marshall islands.--In addition to the programs and 
        services set forth in section 221 of the Compact, and 
        pursuant to section 222 of the Compact, the programs 
        and services of the following agencies shall be made 
        available to the Federated States of Micronesia and to 
        the Republic of the Marshall Islands:
                  (A) Emergency and disaster assistance.--
                          (i) In general.--Subject to clause 
                        (ii), section 221(a)(6) of the U.S.-FSM 
                        Compact and section 221(a)(5) of the 
                        U.S.-RMI Compact shall each be 
                        construed and applied in accordance 
                        with the two Agreements to Amend 
                        Article X of the Federal Programs and 
                        Service Agreements signed on June 30, 
                        2004, and on June 18, 2004, 
                        respectively, provided that all 
                        activities carried out by the United 
                        States Agency for International 
                        Development and the Federal Emergency 
                        Management Agency under Article X of 
                        the Federal Programs and Services 
                        Agreements may be carried out 
                        notwithstanding any other provision of 
                        law. In the sections referred to in 
                        this clause, the term ``United States 
                        Agency for International Development, 
                        Office of Foreign Disaster Assistance'' 
                        shall be construed to mean ``the United 
                        States Agency for International 
                        Development''.
                          (ii) Definition of will provide 
                        funding.--In the second sentence of 
                        paragraph 12 of each of the Agreements 
                        described in clause (i), the term 
                        ``will provide funding'' means will 
                        provide funding through a transfer of 
                        funds using Standard Form 1151 or a 
                        similar document or through an 
                        interagency, reimbursable agreement.
                  (B) Treatment of additional programs.--
                          (i) Consultation.--The United States 
                        appointees to the committees 
                        established pursuant to section 213 of 
                        the U.S.-FSM Compact and section 214 of 
                        the U.S.-RMI Compact shall consult with 
                        the Secretary of Education regarding 
                        the objectives, use, and monitoring of 
                        United States financial, program, and 
                        technical assistance made available for 
                        educational purposes.
                          (ii) Continuing programs.--The 
                        Government of the United States--
                                  (I) shall continue to make 
                                available to the Federated 
                                States of Micronesia and the 
                                Republic of the Marshall 
                                Islands for fiscal years 2004 
                                through 2023, the services to 
                                individuals eligible for such 
                                services under the Individuals 
                                with Disabilities Education Act 
                                (20 U.S.C. 1400 et seq.) to the 
                                extent that such services 
                                continue to be available to 
                                individuals in the United 
                                States; and
                                  (II) shall continue to make 
                                available to eligible 
                                institutions in the Federated 
                                States of Micronesia and the 
                                Republic of the Marshall 
                                Islands, and to students 
                                enrolled in such institutions, 
                                and in institutions in the 
                                United States, its territories, 
                                and the Republic of Palau for 
                                fiscal years 2004 through 2023, 
                                grants under subpart 1 of part 
                                A of title IV of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1070a et seq.) to the 
                                extent that such grants 
                                continue to be available to 
                                institutions and students in 
                                the United States.
                          (iii) Supplemental education 
                        grants.--In lieu of eligibility for 
                        appropriations under part A of title I 
                        of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6311 
                        et seq.), titles I (other than subtitle 
                        C) and II of the Workforce Innovation 
                        and Opportunity Act, title I of the 
                        Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 2321 
                        et seq.), the Head Start Act (42 U.S.C. 
                        9831 et seq.), and subpart 3 of part A, 
                        and part C, of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070b 
                        et seq., 42 U.S.C. 2751 et seq.), there 
                        are authorized to be appropriated to 
                        the Secretary of Education to 
                        supplement the education grants under 
                        section 211(a)(1) of the U.S.-FSM 
                        Compact and section 211(a)(1) of the 
                        U.S.-RMI Compact, respectively, the 
                        following amounts:
                                  (I) $12,230,000 for the 
                                Federated States of Micronesia 
                                for fiscal year 2005 and an 
                                equivalent amount, as adjusted 
                                for inflation under section 217 
                                of the U.S.-FSM Compact, for 
                                each of fiscal years 2005 
                                through 2023; and
                                  (II) $6,100,000 for the 
                                Republic of the Marshall 
                                Islands for fiscal year 2005 
                                and an equivalent amount, as 
                                adjusted for inflation under 
                                section 218 of the U.S.-RMI 
                                Compact, for each of fiscal 
                                years 2005 through 2023,
                        except that citizens of the Federated 
                        States of Micronesia and the Republic 
                        of the Marshall Islands who attend an 
                        institution of higher education in the 
                        United States or its territories, the 
                        Federated States of Micronesia, the 
                        Republic of the Marshall Islands, or 
                        the Republic of Palau on the date of 
                        enactment of this joint resolution may 
                        continue to receive assistance under 
                        such subpart 3 of part A or part C, for 
                        not more than 4 academic years after 
                        such date to enable such citizens to 
                        complete their program of study.
                          (iv) Fiscal procedures.--
                        Appropriations made pursuant to clause 
                        (iii) shall be used and monitored in 
                        accordance with an agreement between 
                        the Secretary of Education, the 
                        Secretary of Labor, the Secretary of 
                        Health and Human Services, and the 
                        Secretary of the Interior, and in 
                        accordance with the respective Fiscal 
                        Procedures Agreements referred to in 
                        section 462(b)(4) of the U.S.-FSM 
                        Compact and section 462(b)(4) of the 
                        U.S.-RMI Compact. The agreement between 
                        the Secretary of Education, the 
                        Secretary of Labor, the Secretary of 
                        Health and Human Services, and the 
                        Secretary of the Interior shall provide 
                        for the transfer, not later than 60 
                        days after the appropriations made 
                        pursuant to clause (iii) become 
                        available to the Secretary of 
                        Education, the Secretary of Labor, and 
                        the Secretary of Health and Human 
                        Services, from the Secretary of 
                        Education, the Secretary of Labor, and 
                        the Secretary of Health and Human 
                        Services, to the Secretary of the 
                        Interior for disbursement.
                          (v) Formula education grants.--For 
                        fiscal years 2005 through 2023, except 
                        as provided in clause (ii) and the 
                        exception provided under clause (iii), 
                        the Governments of the Federated States 
                        of Micronesia and the Republic of the 
                        Marshall Islands shall not receive any 
                        grant under any formula-grant program 
                        administered by the Secretary of 
                        Education or the Secretary of Labor, 
                        nor any grant provided through the Head 
                        Start Act (42 U.S.C. 9831 et seq.) 
                        administered by the Secretary of Health 
                        and Human Services.
                          (vi) Transition.--For fiscal year 
                        2004, the Governments of the Federated 
                        States of Micronesia and the Republic 
                        of the Marshall Islands shall continue 
                        to be eligible for appropriations and 
                        to receive grants under the provisions 
                        of law specified in clauses (ii) and 
                        (iii).
                          (vii) Technical assistance.--The 
                        Federated States of Micronesia and the 
                        Republic of the Marshall Islands may 
                        request technical assistance from the 
                        Secretary of Education, the Secretary 
                        of Health and Human Services, or the 
                        Secretary of Labor the terms of which, 
                        including reimbursement, shall be 
                        negotiated with the participation of 
                        the appropriate cabinet officer for 
                        inclusion in the Federal Programs and 
                        Services Agreement.
                          (viii) Continued eligibility for 
                        competitive grants.--The Governments of 
                        the Federated States of Micronesia and 
                        the Republic of the Marshall Islands 
                        shall continue to be eligible for 
                        competitive grants administered by the 
                        Secretary of Education, the Secretary 
                        of Health and Human Services, and the 
                        Secretary of Labor to the extent that 
                        such grants continue to be available to 
                        State and local governments in the 
                        United States.
                          [(ix) Applicability.--The government, 
                        institutions, and people of Palau shall 
                        remain eligible for appropriations and 
                        to receive grants under the provisions 
                        of law specified in clauses (ii) and 
                        (iii) until the end of fiscal year 
                        2024, to the extent the government, 
                        institutions, and people of Palau were 
                        so eligible under such provisions in 
                        fiscal year 2003.]
                  (C) The Legal Services Corporation, which 
                shall also continue to be available to the 
                citizens of the Federated States of Micronesia, 
                the Republic of Palau, and the Republic of the 
                Marshall Islands who legally reside in the 
                United States (including territories and 
                possessions).
                  (D) The Public Health Service.
                  (E) The Rural Housing Service (formerly, the 
                Farmers Home Administration) in the Marshall 
                Islands and each of the four States of the 
                Federated States of Micronesia: Provided, That 
                in lieu of continuation of the program in the 
                Federated States of Micronesia, the President 
                may agree to transfer to the Government of the 
                Federated States of Micronesia without cost, 
                the portfolio of the Rural Housing Service 
                applicable to the Federated States of 
                Micronesia and provide such technical 
                assistance in management of the portfolio as 
                may be requested by the Federated States of 
                Micronesia.
          (2) Tort claims.--The provisions of section 178 of 
        the U.S.-FSM Compact and the U.S.-RMI Compact regarding 
        settlement and payment of tort claims shall apply to 
        employees of any Federal agency of the Government of 
        the United States (and to any other person employed on 
        behalf of any Federal agency of the Government of the 
        United States on the basis of a contractual, 
        cooperative, or similar agreement) which provides any 
        service or carries out any other function pursuant to 
        or in furtherance of any provisions of the U.S.-FSM 
        Compact or the U.S.-RMI Compact or this joint 
        resolution, except for provisions of Title Three of the 
        Compact and of the subsidiary agreements related to 
        such Title, in such area to which such Agreement 
        formerly applied.
          (3) PCB cleanup.--The programs and services of the 
        Environmental Protection Agency regarding PCBs shall, 
        to the extent applicable, as appropriate, and in 
        accordance with applicable law, be construed to be made 
        available to such islands for the cleanup of PCBs 
        imported prior to 1987. The Secretary of the Interior 
        and the Secretary of Defense shall cooperate and assist 
        in any such cleanup activities.
  (g) College of Micronesia.--Until otherwise provided by Act 
of Congress, or until termination of the U.S.-FSM Compact and 
the U.S.-RMI Compact, the College of Micronesia shall retain 
its status as a land-grant institution and its eligibility for 
all benefits and programs available to such land-grant 
institutions.
  (h) Trust Territory Debts to U.S. Federal Agencies.--Neither 
the Government of the Federated States of Micronesia nor the 
Government of the Marshall Islands shall be required to pay to 
any department, agency, independent agency, office, or 
instrumentality of the United States any amounts owed to such 
department, agency, independent agency, office, or 
instrumentality by the Government of the Trust Territory of the 
Pacific Islands as of the effective date of the Compact. There 
is authorized to be appropriated such sums as may be necessary 
to carry out the purposes of this subsection.
  (i) Judicial Training.--
          (1) In general.--In addition to amounts provided 
        under section 211(a)(4) of the U.S.-FSM Compact and the 
        U.S.-RMI Compact, the Secretary of the Interior shall 
        annually provide $300,000 for the training of judges 
        and officials of the judiciary in the Federated States 
        of Micronesia and the Republic of the Marshall Islands 
        in cooperation with the Pacific Islands Committee of 
        the Ninth Circuit Judicial Council and in accordance 
        with and to the extent provided in the Federal Programs 
        and Services Agreement and the Fiscal Procedure 
        Agreement, as appropriate.
          (2) Authorization and continuing appropriation.--
        There is hereby authorized and appropriated to the 
        Secretary of the Interior, out of any funds in the 
        Treasury not otherwise appropriated, to remain 
        available until expended, for each fiscal year from 
        2004 through 2023, $300,000, as adjusted for inflation 
        under section 218 of the U.S.-FSM Compact and the U.S.-
        RMI Compact, to carry out the purposes of this section.
  [(j) Technical Assistance.--Technical assistance may be 
provided pursuant to section 224 of the U.S.-FSM Compact or the 
U.S.-RMI Compact by Federal agencies and institutions of the 
Government of the United States to the extent such assistance 
may be provided to States, territories, or units of local 
government. Such assistance by the Forest Service, the Natural 
Resources Conservation Service, the Fish and Wildlife Service, 
the National Marine Fisheries Service, the United States Coast 
Guard, and the Advisory Council on Historic Preservation, the 
Department of the Interior, and other agencies providing 
assistance under division A of subtitle III of title 54, United 
States Code, shall be on a nonreimbursable basis. During the 
period the U.S.-FSM Compact and the U.S.-RMI Compact are in 
effect, the grant programs under the National Historic 
Preservation Act shall continue to apply to the Federated 
States of Micronesia and the Republic of the Marshall Islands 
in the same manner and to the same extent as prior to the 
approval of the Compact. Any funds provided pursuant to 
sections 102(a), 103(a), 103(b), 103(f), 103(g), 103(h), 
103(j), 105(c), 105(g), 105(h), 105(i), 105(j), 105(k), 105(l), 
and 105(m) of this joint resolution shall be in addition to and 
not charged against any amounts to be paid to either the 
Federated States of Micronesia or the Republic of the Marshall 
Islands pursuant to the U.S.-FSM Compact, the U.S.-RMI Compact, 
or their related subsidiary agreements.]
  (j) Technical Assistance.--
          (1) In general.--Technical assistance may be provided 
        pursuant to section 224 of the 2023 Amended U.S.-FSM 
        Compact, section 224 of the 2023 Amended U.S.-RMI 
        Compact, or section 222 of the U.S.-Palau Compact (as 
        those terms are defined in section 2 of the Compact of 
        Free Association Amendments Act of 2023) by Federal 
        agencies and institutions of the Government of the 
        United States to the extent the assistance shall be 
        provided to States, territories, or units of local 
        government.
          (2) Historic preservation.--
                  (A) In general.--Any technical assistance 
                authorized under paragraph (1) that is provided 
                by the Forest Service, the Natural Resources 
                Conservation Service, the United States Fish 
                and Wildlife Service, the National Marine 
                Fisheries Service, the United States Coast 
                Guard, the Advisory Council on Historic 
                Preservation, the Department of the Interior, 
                or any other Federal agency providing 
                assistance under division A of subtitle III of 
                title 54, United States Code, may be provided 
                on a nonreimbursable basis.
                  (B) Grants.--During the period in which the 
                2023 Amended U.S.-FSM Compact (as so defined) 
                and the 2023 Amended U.S.-RMI Compact (as so 
                defined) are in force, the grant programs under 
                division A of subtitle III of title 54, United 
                States Code, shall continue to apply to the 
                Federated States of Micronesia and the Republic 
                of the Marshall Islands in the same manner and 
                to the same extent as those programs applied 
                prior to the approval of the U.S.-FSM Compact 
                and U.S.-RMI Compact.
          (3) Additional funds.--Any funds provided pursuant to 
        this subsection, subsections (c), (g), (h), (i), (k), 
        (l), and (m), section 102(a), and subsections (a), (b), 
        (f), (g), (h), and (j) of section 103 shall be in 
        addition to, and not charged against, any amounts to be 
        paid to the Federated States of Micronesia or the 
        Republic of the Marshall Islands pursuant to--
                  (A) the U.S.-FSM Compact;
                  (B) the U.S.-RMI Compact; or
                  (C) any related subsidiary agreement.
  (k) Prior Service Benefits Program.--Notwithstanding any 
other provision of law, persons who on January 1, 1985, were 
eligible to receive payment under the Prior Service Benefits 
Program established within the Social Security System of the 
Trust Territory of the Pacific Islands because of their 
services performed for the United States Navy or the Government 
of the Trust Territory of the Pacific Islands prior to July 1, 
1968, shall continue to receive such payments on and after the 
effective date of the Compact.
  (l) Indefinite Land Use Payments.--There are authorized to be 
appropriated such sums as may be necessary to complete 
repayment by the United States of any debts owed for the use of 
various lands in the Federated States of Micronesia and the 
Marshall Islands prior to January 1, 1985.
  (m) Communicable Disease Control Program.--There are 
authorized to be appropriated for grants to the Government of 
the Federated States of Micronesia, the Government of the 
Republic of the Marshall Islands, and the governments of the 
affected jurisdictions, such sums as may be necessary for 
purposes of establishing or continuing programs for the control 
and prevention of communicable diseases, including (but not 
limited to) cholera, tuberculosis, and Hansen's Disease. The 
Secretary of the Interior shall assist the Government of the 
Federated States of Micronesia, the Government of the Republic 
of the Marshall Islands and the governments of the affected 
jurisdictions in designing and implementing such a program.
  (n) User Fees.--Any person in the Federated States of 
Micronesia or the Republic of the Marshall Islands shall be 
liable for user fees, if any, for services provided in the 
Federated States of Micronesia or the Republic of the Marshall 
Islands by the Government of the United States to the same 
extent as any person in the United States would be liable for 
fees, if any, for such services in the United States.
  (o) Treatment of Judgments of Courts of the Federated States 
of Micronesia, the Republic of the Marshall Islands, and the 
Republic of Palau.--No judgment, whenever issued, of a court of 
the Federated States of Micronesia, the Republic of the 
Marshall Islands, or the Republic of Palau, against the United 
States, its departments and agencies, or officials of the 
United States or any other individuals acting on behalf of the 
United States within the scope of their official duty, shall be 
honored by the United States, or be subject to recognition or 
enforcement in a court in the United States, unless the 
judgment is consistent with the interpretation by the United 
States of international agreements relevant to the judgment. In 
determining the consistency of a judgment with an international 
agreement, due regard shall be given to assurances made by the 
Executive Branch to Congress of the United States regarding the 
proper interpretation of the international agreement.
  (p) Establishment of Trust Funds; Expedition of Process.--
          (1) In general.--The Trust Fund Agreement executed 
        pursuant to the U.S.-FSM Compact and the Trust Fund 
        Agreement executed pursuant to the U.S.-RMI Compact 
        each provides for the establishment of a trust fund.
          (2) Method of establishment.--The trust fund may be 
        established by--
                  (A) creating a new legal entity to constitute 
                the trust fund; or
                  (B) assuming control of an existing legal 
                entity including, without limitation, a trust 
                fund or other legal entity that was established 
                by or at the direction of the Government of the 
                United States, the Government of the Federated 
                States of Micronesia, the Government of the 
                Republic of the Marshall Islands, or otherwise 
                for the purpose of facilitating or expediting 
                the establishment of the trust fund pursuant to 
                the applicable Trust Fund Agreement.
          (3) Obligations.--For the purpose of expediting the 
        commencement of operations of a trust fund under either 
        Trust Fund Agreement, the trust fund may, but shall not 
        be obligated to, assume any obligations of an existing 
        legal entity and take assignment of any contract or 
        other agreement to which the existing legal entity is 
        party.
          (4) Assistance.--Without limiting the authority that 
        the United States Government may otherwise have under 
        applicable law, the United States Government may, but 
        shall not be obligated to, provide financial, 
        technical, or other assistance directly or indirectly 
        to the Government of the Federated States of Micronesia 
        or the Government of the Republic of the Marshall 
        Islands for the purpose of establishing and operating a 
        trust fund or other legal entity that will solicit bids 
        from, and enter into contracts with, parties willing to 
        serve in such capacities as trustee, depositary, money 
        manager, or investment advisor, with the intention that 
        the contracts will ultimately be assumed by and 
        assigned to a trust fund established pursuant to a 
        Trust Fund Agreement.

           *       *       *       *       *       *       *

                              ----------                              


                             HEAD START ACT



           *       *       *       *       *       *       *
                   TITLE VI--HUMAN SERVICES PROGRAMS

  Subtitle A--Authorizations Savings for Fiscal Years 1982, 1983, and 
1984

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CHAPTER 8--COMMUNITY SERVICES PROGRAMS

           *       *       *       *       *       *       *


Subchapter B--Head Start Programs

           *       *       *       *       *       *       *


                              definitions

  Sec. 637. For purposes of this subchapter:
          (1) The term ``child with a disability'' means--
                  (A) a child with a disability, as defined in 
                section 602(3) of the Individuals with 
                Disabilities Education Act; and
                  (B) an infant or toddler with a disability, 
                as defined in section 632(5) of such Act.
          (2) The term ``delegate agency'' means a public, 
        private nonprofit (including a community-based 
        organization, as defined in section 8101 of the 
        Elementary and Secondary EducationAct of 1965), or for-
        profit organization or agency to which a grantee has 
        delegated all or part of the responsibility of the 
        grantee for operating a Head Start program.
          (3) The term ``family literacy services'' means 
        services that are of sufficient intensity in terms of 
        hours, and of sufficient duration, to make sustainable 
        changes in a family, and that integrate all of the 
        following activities:
                  (A) Interactive literacy activities between 
                parents and their children.
                  (B) Training for parents regarding how to be 
                the primary teacher for their children and full 
                partners in the education of their children.
                  (C) Parent literacy training that leads to 
                economic self-sufficiency, and financial 
                literacy..
                  (D) An age-appropriate education to prepare 
                children for success in school and life 
                experiences.
          (4) The term ``financial assistance'' includes 
        assistance provided by grant, agreement, or contract, 
        and payments may be made in installments and in advance 
        or by way of reimbursement with necessary adjustments 
        on account of overpayments or underpayments.
          (5) The term ``full calendar year'' means all days of 
        the year other than Saturday, Sunday, and a legal 
        public holiday.
          (6) The term ``full-working-day'' means not less than 
        10 hours per day. Nothing in this paragraph shall be 
        construed to require an agency to provide services to a 
        child who has not reached the age of compulsory school 
        attendance for more than the number of hours per day 
        permitted by State law (including regulation) for the 
        provision of services to such a child.
          (7) The term ``Head Start classroom'' means a group 
        of children supervised and taught by two paid staff 
        members (a teacher and a teacher's aide or two 
        teachers) and, where possible, a volunteer.
          (8) The term ``Head Start family day care'' means 
        Head Start services provided in a private residence 
        other than the residence of the child receiving such 
        services.
          (9) The term ``home-based Head Start program'' means 
        a Head Start program that provides Head Start services 
        in the private residence of the child receiving such 
        services.
          (10) The term ``Indian tribe'' means any tribe, band, 
        nation, pueblo, or other organized group or community 
        of Indians, including any Native village described in 
        section 3(c) of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602(c)) or established pursuant to such Act 
        (43 U.S.C. 1601 et seq.), that is recognized as 
        eligible for the special programs and services provided 
        by the United States to Indians because of their status 
        as Indians.
          (11) The term ``local educational agency'' has the 
        meaning given such term in the Elementary and Secondary 
        Education Act of 1965.
          (12) The term ``migrant or seasonal Head Start 
        program'' means--
                  (A) with respect to services for migrant 
                farmworkers, a Head Start program that serves 
                families who are engaged in agricultural labor 
                and who have changed their residence from one 
                geographic location to another in the preceding 
                2-year period; and
                  (B) with respect to services for seasonal 
                farmworkers, a Head Start program that serves 
                families who are engaged primarily in seasonal 
                agricultural labor and who have not changed 
                their residence to another geographic location 
                in the preceding 2-year period.
          (13) The term ``mobile Head Start program'' means the 
        provision of Head Start services utilizing 
        transportable equipment set up in various community-
        based locations on a routine, weekly schedule, 
        operating in conjunction with home-based Head Start 
        programs, or as a Head Start classroom.
          (14) The term ``poverty line'' means the official 
        poverty line (as defined by the Office of Management 
        and Budget)--
                  (A) adjusted to reflect the percentage change 
                in the Consumer Price Index For All Urban 
                Consumers, issued by the Bureau of Labor 
                Statistics, occurring in the 1-year period or 
                other interval immediately preceding the date 
                such adjustment is made; and
                  (B) adjusted for family size.
          (15) The term ``scientifically based reading 
        research''--
                  (A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                  (B) shall include research that--
                          (i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          (ii) involves rigorous data analyses 
                        that are adequate to test the stated 
                        hypotheses and justify the general 
                        conclusions drawn;
                          (iii) relies on measurements or 
                        observational methods that provide 
                        valid data across evaluators and 
                        observers and across multiple 
                        measurements and observations; and
                          (iv) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.
          (16) The term ``Secretary'' means the Secretary of 
        Health and Human Services.
          (17) The term ``State'' means a State, the 
        Commonwealth of Puerto Rico, the District of Columbia, 
        Guam, American Samoa, the Virgin Islands of the United 
        States, and the Commonwealth of the Northern Mariana 
        Islands. [The term includes the Republic of Palau for 
        fiscal years 2008 and 2009, and (if the legislation 
        described in section 640(a)(2)(B)(v) has not been 
        enacted by September 30, 2009) for fiscal years 2010 
        through 2012.] The term State includes the Federated 
        States of Micronesia, the Republic of the Marshall 
        Islands, and the Republic of Palau.
          (18) The term ``deficiency'' means--
                  (A) a systemic or substantial material 
                failure of an agency in an area of performance 
                that the Secretary determines involves--
                          (i) a threat to the health, safety, 
                        or civil rights of children or staff;
                          (ii) a denial to parents of the 
                        exercise of their full roles and 
                        responsibilities related to program 
                        operations;
                          (iii) a failure to comply with 
                        standards related to early childhood 
                        development and health services, family 
                        and community partnerships, or program 
                        design and management;
                          (iv) the misuse of funds received 
                        under this subchapter;
                          (v) loss of legal status (as 
                        determined by the Secretary) or 
                        financial viability, loss of permits, 
                        debarment from receiving Federal grants 
                        or contracts, or the improper use of 
                        Federal funds; or
                          (vi) failure to meet any other 
                        Federal or State requirement that the 
                        agency has shown an unwillingness or 
                        inability to correct, after notice from 
                        the Secretary, within the period 
                        specified;
                  (B) systemic or material failure of the 
                governing body of an agency to fully exercise 
                its legal and fiduciary responsibilities; or
                  (C) an unresolved area of noncompliance.
          (19) The term ``homeless children'' has the meaning 
        given the term ``homeless children and youths'' in 
        section 725(2) of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11434a(2)).
          (20) The term ``institution of higher education'' has 
        the meaning given the term in section 101(a) of the 
        Higher Education Act of 1965 (20 U.S.C. 1001(a)).
          (21) The term ``interrater reliability'' means the 
        extent to which 2 or more independent raters or 
        observers consistently obtain the same result when 
        using the same assessment tool.
          (22) The term ``limited English proficient'', used 
        with respect to a child, means a child--
                  (A)(i) who was not born in the United States 
                or whose native language is a language other 
                than English;
                  (ii)(I) who is a Native American (as defined 
                in section 8101 of the Elementary and Secondary 
                Education Act of 1965), an Alaska Native, or a 
                native resident of an outlying area (as defined 
                in such section 8101); and
                  (II) who comes from an environment where a 
                language other than English has had a 
                significant impact on the child's level of 
                English language proficiency; or
                  (iii) who is migratory, whose native language 
                is a language other than English, and who comes 
                from an environment where a language other than 
                English is dominant; and
                  (B) whose difficulties in speaking or 
                understanding the English language may be 
                sufficient to deny such child--
                          (i) the ability to successfully 
                        achieve in a classroom in which the 
                        language of instruction is English; or
                          (ii) the opportunity to participate 
                        fully in society.
          (23) The term ``principles of scientific research'' 
        means principles of research that--
                  (A) applies rigorous, systematic, and 
                objective methodology to obtain reliable and 
                valid knowledge relevant to education 
                activities and programs;
                  (B) presents findings and makes claims that 
                are appropriate to and supported by methods 
                that have been employed; and
                  (C) includes, as appropriate to the research 
                being conducted--
                          (i) use of systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          (ii) use of data analyses that are 
                        adequate to support the general 
                        findings;
                          (iii) reliance on measurements or 
                        observational methods that provide 
                        reliable and generalizable findings;
                          (iv) strong claims of causal 
                        relationships, only with research 
                        designs that eliminate plausible 
                        competing explanations for observed 
                        results, such as, but not limited to, 
                        random assignment experiments;
                          (v) presentation of studies and 
                        methods in sufficient detail and 
                        clarity to allow for replication or, at 
                        a minimum, to offer the opportunity to 
                        build systematically on the findings of 
                        the research;
                          (vi) acceptance by a peer-reviewed 
                        journal or critique by a panel of 
                        independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review; and
                          (vii) consistency of findings across 
                        multiple studies or sites to support 
                        the generality of results and 
                        conclusions.
          (24) The term ``professional development'' means 
        high-quality activities that will improve the knowledge 
        and skills of Head Start teachers and staff, as 
        relevant to their roles and functions, in program 
        administration and the provision of services and 
        instruction, as appropriate, in a manner that improves 
        service delivery to enrolled children and their 
        families, including activities that--
                  (A) are part of a sustained effort to improve 
                overall program quality and outcomes for 
                enrolled children and their families;
                  (B) are developed or selected with extensive 
                participation of administrators and teachers 
                from Head Start programs;
                  (C) are developmentally appropriate for the 
                children being served;
                  (D) include instruction in ways that Head 
                Start teachers and staff may work more 
                effectively with parents, as appropriate;
                  (E) are designed to give Head Start teachers 
                and staff the knowledge and skills to provide 
                instruction and appropriate support services to 
                children of diverse backgrounds, as 
                appropriate;
                  (F) may include a 1-day or short-term 
                workshop or conference, if the workshop or 
                conference is consistent with the goals in the 
                professional development plan described in 
                section 648A(f) and will be delivered by an 
                institution of higher education or other 
                entity, with expertise in delivering training 
                in early childhood development, training in 
                family support, and other assistance designed 
                to improve the delivery of Head Start services; 
                and
                  (G) in the case of teachers, assist teachers 
                with--
                          (i) the acquisition of the content 
                        knowledge and teaching strategies 
                        needed to provide effective instruction 
                        and other school readiness services 
                        regarding early language and literacy, 
                        early mathematics, early science, 
                        cognitive skills, approaches to 
                        learning, creative arts, physical 
                        health and development, and social and 
                        emotional development linked to school 
                        readiness;
                          (ii) meeting the requirements in 
                        paragraphs (1) and (2) of section 
                        648A(a), as appropriate;
                          (iii) improving classroom management 
                        skills, as appropriate;
                          (iv) advancing their understanding of 
                        effective instructional strategies that 
                        are--
                                  (I) based on scientifically 
                                valid research; and
                                  (II) aligned with--
                                          (aa) the Head Start 
                                        Child Outcomes 
                                        Framework developed by 
                                        the Secretary and, as 
                                        appropriate, State 
                                        early learning 
                                        standards; and
                                          (bb) curricula, 
                                        ongoing assessments, 
                                        and other instruction 
                                        and services, designed 
                                        to help meet the 
                                        standards described in 
                                        section 641A(a)(1);
                          (v) acquiring the knowledge and 
                        skills to provide instruction and 
                        appropriate language and support 
                        services to increase the English 
                        language skills of limited English 
                        proficient children, as appropriate; or
                          (vi) methods of teaching children 
                        with disabilities, as appropriate.
          (25) The term ``scientifically valid research'' 
        includes applied research, basic research, and field-
        initiated research in which the rationale, design, and 
        interpretation are soundly developed in accordance with 
        principles of scientific research.
          (26) The term ``unresolved area of noncompliance'' 
        means failure to correct a noncompliance item within 
        120 days, or within such additional time (if any) as is 
        authorized by the Secretary, after receiving from the 
        Secretary notice of such noncompliance item, pursuant 
        to section 641A(c).

           *       *       *       *       *       *       *


             allotment of funds; limitations on assistance

  Sec. 640. (a)(1) Using the sums appropriated pursuant to 
section 639 for a fiscal year, the Secretary shall allocate 
such sums in accordance with paragraphs (2) through (5).
  (2)(A) The Secretary shall determine an amount for each 
fiscal year for each State that is equal to the amount received 
through base grants for the prior fiscal year by the Head Start 
agencies (including Early Head Start agencies) in the State 
that are not described in clause (ii) or (iii) of subparagraph 
(B).
  (B) The Secretary shall reserve for each fiscal year such 
sums as are necessary--
          (i) to provide each amount determined for a State 
        under subparagraph (A) to the Head Start agencies 
        (including Early Head Start agencies) in the State that 
        are not described in clause (ii) or (iii), by allotting 
        to each agency described in this clause an amount equal 
        to that agency's base grant for the prior fiscal year;
          (ii) to provide an amount for the Indian Head Start 
        programs that is equal to the amount provided for base 
        grants for such programs under this subchapter for the 
        prior fiscal year, by allotting to each Head Start 
        agency (including each Early Head Start agency) 
        administering an Indian Head Start program an amount 
        equal to that agency's base grant for the prior fiscal 
        year;
          (iii) to provide an amount for the migrant and 
        seasonal Head Start programs, on a nationwide basis, 
        that is equal to the amount provided nationwide for 
        base grants for such programs under this subchapter for 
        the prior fiscal year, by allotting to each Head Start 
        agency administering a migrant or seasonal Head Start 
        program an amount equal to that agency's base grant for 
        the prior fiscal year;
          (iv) to provide an amount for each of Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Republic of Palau, and the Virgin Islands 
        of the United States (for Head Start agencies 
        (including Early Head Start agencies) in the 
        jurisdiction) that is equal to the amount provided for 
        base grants for such jurisdiction under this subchapter 
        for the prior fiscal year, by allotting to each agency 
        described in this clause an amount equal to that 
        agency's base grant for the prior fiscal year;
          [(v) to provide an amount for the Republic of Palau 
        (for Head Start agencies (including Early Head Start 
        agencies) in the jurisdiction) for each of fiscal years 
        2008 and 2009, and (if legislation approving a new 
        agreement regarding United States assistance for the 
        Republic of Palau has not been enacted by September 30, 
        2009) for each of fiscal years 2010 through 2012, that 
        is equal to the amount provided for base grants for 
        such jurisdiction under this subchapter for the prior 
        fiscal year, by allotting to each agency described in 
        this clause an amount equal to that agency's base grant 
        for the prior fiscal year; and]
          (v) if a base grant has been established through 
        appropriations for the Federated States of Micronesia 
        or the Republic of the Marshall Islands, to provide an 
        amount for that jurisdiction (for Head Start agencies 
        (including Early Head Start agencies) in the 
        jurisdiction) that is equal to the amount provided for 
        base grants for such jurisdiction under this subchapter 
        for the prior fiscal year, by allotting to each agency 
        described in this clause an amount equal to that 
        agency's base grant for the prior fiscal year; and
          (vi) to provide an amount for a collaboration grant 
        under section 642B(a) for each State, for the Indian 
        Head Start programs, and for the migrant and seasonal 
        Head Start programs, in the same amount as the 
        corresponding collaboration grant provided under this 
        subchapter for fiscal year 2007.
  (C)(i) The Secretary shall reserve for each fiscal year an 
amount that is not less than 2.5 percent and not more than 3 
percent of the sums appropriated pursuant to section 639 for 
that fiscal year, to fund training and technical assistance 
activities, from which reserved amount--
          (I) the Secretary shall set aside a portion, but not 
        less than 20 percent, to be used to fund training and 
        technical assistance activities for Early Head Start 
        programs, in accordance with section 645A(g)(2); and
          (II) the Secretary shall set aside a portion, equal 
        to the rest of the reserved amount, to fund training 
        and technical assistance activities for other Head 
        Start programs, in accordance with section 648, of 
        which portion--
                  (aa) not less than 50 percent shall be made 
                available to Head Start agencies to use 
                directly, which may include at their discretion 
                the establishment of local or regional 
                agreements with community experts, institutions 
                of higher education, or private consultants, to 
                make program improvements identified by such 
                agencies, by carrying out the training and 
                technical assistance activities described in 
                section 648(d);
                  (bb) not less than 25 percent shall be 
                available to the Secretary to support a State-
                based training and technical assistance system, 
                or a national system, described in section 
                648(e) for supporting program quality; and
                  (cc) the remainder of the portion set aside 
                under this subclause shall be available to the 
                Secretary to assist Head Start agencies in 
                meeting and exceeding the standards described 
                in section 641A(a)(1) by carrying out 
                activities described in subsections (a), (b), 
                (c), (f), and (g) of section 648, including 
                helping Head Start programs address weaknesses 
                identified by monitoring activities conducted 
                by the Secretary under section 641A(c), except 
                that not less than $3,000,000 of the remainder 
                shall be made available to carry out activities 
                described in section 648(a)(3)(B)(ii).
  (ii) In determining the portion set aside under clause (i)(I) 
and the amount reserved under this subparagraph, the Secretary 
shall consider the number of Early Head Start programs newly 
funded for that fiscal year.
  (D) The Secretary shall reserve not more than $20,000,000 to 
fund research, demonstration, and evaluation activities under 
section 649, of which not more than $7,000,000 for each of 
fiscal years 2008 through 2012 shall be available to carry out 
impact studies under section 649(g).
  (E) The Secretary shall reserve not more than $42,000,000 for 
discretionary payments by the Secretary, including payments for 
all costs (other than compensation of Federal employees) for 
activities carried out under subsection (c) or (e) of section 
641A.
  (F) If the sums appropriated under section 639 are not 
sufficient to provide the amounts required to be reserved under 
subparagraphs (B) through (E), the amounts shall be reduced 
proportionately.
  (G) Nothing in this section shall be construed to deny the 
Secretary the authority, consistent with sections 641, 641A, 
and 646 to terminate, suspend, or reduce funding to a Head 
Start agency.
  (3)(A) From any amount remaining for a fiscal year after the 
Secretary carries out paragraph (2) (referred to in this 
paragraph as the ``remaining amount''), the Secretary shall--
          (i) subject to clause (ii)--
                  (I) provide a cost of living increase for 
                each Head Start agency (including each Early 
                Head Start agency) funded under this subchapter 
                for that fiscal year, to maintain the level of 
                services provided during the prior year; and
                  (II) subject to subparagraph (B), provide 
                $10,000,000 for Indian Head Start programs 
                (including Early Head Start programs), and 
                $10,000,000 for migrant and seasonal Head Start 
                programs, to increase enrollment in the 
                programs involved;
          (ii) subject to clause (iii), if the remaining amount 
        is not sufficient to carry out clause (i)--
                  (I) for each of fiscal years 2008, 2009, and 
                2010--
                          (aa) subject to subparagraph (B), 
                        provide 5 percent of that amount for 
                        Indian Head Start programs (including 
                        Early Head Start programs), and 5 
                        percent of that amount for migrant and 
                        seasonal Head Start programs, to 
                        increase enrollment in the programs 
                        involved; and
                          (bb) use 90 percent of that amount to 
                        provide, for each Head Start agency 
                        (including each Early Head Start 
                        agency) funded as described in clause 
                        (i)(I), the same percentage (but not 
                        less than 50 percent) of the cost of 
                        living increase described in clause 
                        (i); and
                  (II) for fiscal year 2011 and each subsequent 
                fiscal year--
                          (aa) provide, for each Head Start 
                        agency (including each Early Head Start 
                        agency) funded as described in clause 
                        (i)(I), the cost of living increase 
                        described in clause (i); and
                          (bb) subject to subparagraph (B), 
                        with any portion of the remaining 
                        amount that is not used under item 
                        (aa), provide equal amounts for Indian 
                        Head Start programs (including Early 
                        Head Start programs), and for migrant 
                        and seasonal Head Start programs, to 
                        increase enrollment in the programs 
                        involved; and
          (iii) if the remaining amount is not sufficient to 
        carry out clause (ii) for the fiscal year involved, use 
        that amount to provide, for each Head Start agency 
        (including each Early Head Start agency) funded as 
        described in clause (i)(I), the same percentage of the 
        cost of living increase described in clause (i).
  (B)(i) Notwithstanding any other provision of this paragraph, 
the Indian Head Start programs shall not receive more than a 
total cumulative amount of $50,000,000 for all fiscal years, 
and the migrant and seasonal Head Start programs shall not 
receive more than a total cumulative amount of $50,000,000 for 
all fiscal years, under clause (i)(II), and subclauses (I)(aa) 
and (II)(bb) of clause (ii), of subparagraph (A) (referred to 
in this subsection as the ``special expansion provisions''), to 
increase enrollment in the programs involved.
  (ii)(I) Funds that are appropriated under section 639 for a 
fiscal year, and made available to Indian Head Start programs 
or migrant or seasonal Head Start programs under the special 
expansion provisions, shall remain available until the end of 
the following fiscal year.
  (II) For purposes of subclause (I)--
          (aa) if no portion is reallocated under clause (iii), 
        those funds shall remain available to the programs 
        involved; or
          (bb) if a portion is reallocated under clause (iii), 
        the portion shall remain available to the recipients of 
        the portion.
  (iii) Of the funds made available as described in clause 
(ii), the Secretary shall reallocate the portion that the 
Secretary determines is unobligated 18 months after the funds 
are made available. The Secretary shall add that portion to the 
balance described in paragraph (4), and reallocate the portion 
in accordance with paragraph (4), for the following fiscal year 
referred to in clause (ii).
  (4)(A) Except as provided in subparagraph (B), from any 
amount remaining for a fiscal year after the Secretary carries 
out paragraphs (2) and (3) (referred to in this paragraph as 
the ``balance''), the Secretary shall--
          (i) reserve 40 percent to carry out subparagraph (C) 
        and paragraph (5);
          (ii) reserve 45 percent to carry out subparagraph 
        (D); and
          (iii) reserve 15 percent (which shall remain 
        available through the end of fiscal year 2012) to 
        provide funds for carrying out section 642B(b)(2).
  (B)(i) Under the circumstances described in clause (ii), from 
the balance, the Secretary shall--
          (I) reserve 45 percent to carry out subparagraph (C) 
        and paragraph (5); and
          (II) reserve 55 percent to carry out subparagraph 
        (D).
  (ii) The Secretary shall make the reservations described in 
clause (i) for a fiscal year if--
          (I) the total cumulative amount reserved under 
        subparagraph (A)(iii) for all preceding fiscal years 
        equals $100,000,000; or
          (II) in the 2-year period preceding such fiscal year, 
        funds were reserved under subparagraph (A)(iii) in an 
        amount that totals not less than $15,000,000 and the 
        Secretary received no approvable applications for such 
        funds.
  (iii) The total cumulative amount reserved under subparagraph 
(A)(iii) for all fiscal years may not be greater than 
$100,000,000.
  (C) The Secretary shall fund the quality improvement 
activities described in paragraph (5) using the amount reserved 
under subparagraph (A)(i) or subparagraph (B)(i)(I), as 
appropriate, of which--
          (i) a portion that is less than 10 percent may be 
        reserved by the Secretary to provide funding to Head 
        Start agencies (including Early Head Start agencies) 
        that demonstrate the greatest need for additional 
        funding for such activities, as determined by the 
        Secretary; and
          (ii) a portion that is not less than 90 percent shall 
        be reserved by the Secretary to allot, to each Head 
        Start agency (including each Early Head Start agency), 
        an amount that bears the same ratio to such portion as 
        the number of enrolled children served by the agency 
        involved bears to the number of enrolled children 
        served by all the Head Start agencies (including Early 
        Head Start agencies), except that the Secretary shall 
        account for the additional costs of serving children in 
        Early Head Start programs and may consider whether an 
        agency is providing a full-day program or whether an 
        agency is providing a full-year program.
  (D) The Secretary shall fund expansion of Head Start programs 
(including Early Head Start programs) using the amount reserved 
under subparagraph (A)(ii) or subparagraph (B)(i)(II), as 
appropriate, of which the Secretary shall--
          (i) use 0.2 percent for Head Start programs funded 
        under clause (iv) or (v) of paragraph (2)(B) (other 
        than Early Head Start programs);
          (ii) for any fiscal year after the last fiscal year 
        for which Indian Head Start programs receive funds 
        under the special expansion provisions, use 3 percent 
        for Head Start programs funded under paragraph 
        (2)(B)(ii) (other than Early Head Start programs), 
        except that the Secretary may increase that percentage 
        if the Secretary determines that the results of the 
        study conducted under section 649(k) indicate that the 
        percentage should be increased;
          (iii) for any fiscal year after the last fiscal year 
        for which migrant or seasonal Head Start programs 
        receive funds under the special expansion provisions, 
        use 4.5 percent for Head Start programs funded under 
        paragraph (2)(B)(iii) (other than Early Head Start 
        programs), except that the Secretary may increase that 
        percentage if the Secretary determines that the results 
        of the study conducted under section 649(l) indicate 
        that the percentage should be increased; and
          (iv) from the remainder of the reserved amount--
                  (I) use 50 percent for Head Start programs 
                funded under paragraph (2)(B)(i) (other than 
                Early Head Start programs), of which--
                          (aa) the covered percentage shall be 
                        allocated among the States serving less 
                        than 60 percent (as determined by the 
                        Secretary) of children who are 3 or 4 
                        years of age from families whose income 
                        is below the poverty line, by 
                        allocating to each of those States an 
                        amount that bears the same relationship 
                        to that covered percentage as the 
                        number of children who are less than 5 
                        years of age from families whose income 
                        is below the poverty line (referred to 
                        in this subclause as ``young low-income 
                        children'') in that State bears to the 
                        number of young low-income children in 
                        all those States; and
                          (bb) the remainder shall be allocated 
                        proportionately among the States on the 
                        basis of the number of young low-income 
                        children; and
                  (II) use 50 percent for Early Head Start 
                programs.
  (E) In this paragraph, the term ``covered percentage'' 
means--
          (i) for fiscal year 2008, 30 percent;
          (ii) for fiscal year 2009, 40 percent;
          (iii) for fiscal year 2010, 50 percent;
          (iv) for fiscal year 2011, 55 percent; and
          (v) for fiscal year 2012, 55 percent.
  (5)(A) Not less than 50 percent of the amount reserved under 
subparagraph (A)(i) or subparagraph (B)(i)(I), as appropriate, 
of paragraph (4) to carry out quality improvement activities 
under paragraph (4)(C) and this paragraph shall be used to 
improve the compensation (including benefits) of educational 
personnel, family service workers, and child counselors, as 
described in sections 644(a) and 653, in the manner determined 
by the Head Start agencies (including Early Head Start 
agencies) involved, to--
          (i) ensure that compensation is adequate to attract 
        and retain qualified staff for the programs involved in 
        order to enhance program quality;
          (ii) improve staff qualifications and assist with the 
        implementation of career development programs for staff 
        that support ongoing improvement of their skills and 
        expertise; and
          (iii) provide education and professional development 
        to enable teachers to be fully competent to meet the 
        professional standards established under section 
        648A(a)(1), including--
                  (I) providing assistance to complete 
                postsecondary course work;
                  (II) improving the qualifications and skills 
                of educational personnel to become certified 
                and licensed as bilingual education teachers, 
                or as teachers of English as a second language; 
                and
                  (III) improving the qualifications and skills 
                of educational personnel to teach and provide 
                services to children with disabilities.
  (B) Any remaining funds from the reserved amount described in 
subparagraph (A) shall be used to carry out any of the 
following activities:
          (i) Supporting staff training, child counseling, and 
        other services, necessary to address the challenges of 
        children from immigrant, refugee, and asylee families, 
        homeless children, children in foster care, limited 
        English proficient children, children of migrant or 
        seasonal farmworker families, children from families in 
        crisis, children referred to Head Start programs 
        (including Early Head Start programs) by child welfare 
        agencies, and children who are exposed to chronic 
        violence or substance abuse.
          (ii) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective 
        program services to children and families, and are 
        accessible to children with disabilities and other 
        individuals with disabilities.
          (iii) Employing additional qualified classroom staff 
        to reduce the child-to-teacher ratio in the classroom 
        and additional qualified family service workers to 
        reduce the family-to-staff ratio for those workers.
          (iv) Ensuring that Head Start programs have qualified 
        staff that promote the language skills and literacy 
        growth of children and that provide children with a 
        variety of skills that have been identified, through 
        scientifically based reading research, as predictive of 
        later reading achievement.
          (v) Increasing hours of program operation, 
        including--
                  (I) conversion of part-day programs to full-
                working-day programs; and
                  (II) increasing the number of weeks of 
                operation in a calendar year.
          (vi) Improving communitywide strategic planning and 
        needs assessments for Head Start programs and 
        collaboration efforts for such programs, including 
        outreach to children described in clause (i).
          (vii) Transporting children in Head Start programs 
        safely, except that not more than 10 percent of funds 
        made available to carry out this paragraph may be used 
        for such purposes.
          (viii) Improving the compensation and benefits of 
        staff of Head Start agencies, in order to improve the 
        quality of Head Start programs.
  (6) No sums appropriated under this subchapter may be 
combined with funds appropriated under any provision other than 
this subchapter if the purpose of combining funds is to make a 
single discretionary grant or a single discretionary payment, 
unless such sums appropriated under this subchapter are 
separately identified in such grant or payment and are used for 
the purposes of this subchapter.
  (7) In this subsection:
          (A) The term ``base grant'', used with respect to a 
        fiscal year, means the amount of permanent ongoing 
        funding (other than funding described in sections 
        645A(g)(2)(A)(i) and paragraph (2)(C)(i)(II)(aa)) 
        provided to a Head Start agency (including an Early 
        Head Start agency) under this subchapter for that 
        fiscal year.
          (B) The term ``cost-of-living increase'', used with 
        respect to an agency for a fiscal year, means an 
        increase in the funding for that agency, based on the 
        percentage change in the Consumer Price Index for All 
        Urban Consumers (issued by the Bureau of Labor 
        Statistics) for the prior fiscal year, calculated on 
        the amount of the base grant for that agency for the 
        prior fiscal year.
          (C) For the purposes of this subsection, the term 
        ``State'' does not include Guam, American Samoa, the 
        Virgin Islands of the United States, the Commonwealth 
        of the Northern Mariana Islands, the Federated States 
        of Micronesia, the Republic of the Marshall Islands, 
        and the Republic of Palau.
  (b) Financial assistance extended under this subchapter for a 
Head Start program shall not exceed 80 percent of the approved 
costs of the assisted program or activities, except that the 
Secretary may approve assistance in excess of such percentage 
if the Secretary determines that such action is required in 
furtherance of the purposes of this subchapter. For the purpose 
of making such determination, the Secretary shall take into 
consideration with respect to the Head Start program involved--
          (1) the lack of resources available in the community 
        that may prevent the Head Start agency from providing 
        all or a portion of the non-Federal contribution that 
        may be required under this subsection;
          (2) the impact of the cost the Head Start agency may 
        incur in initial years it carries out such program;
          (3) the impact of an unanticipated increase in the 
        cost the Head Start agency may incur to carry out such 
        program;
          (4) whether the Head Start agency is located in a 
        community adversely affected by a major disaster; and
          (5) the impact on the community that would result if 
        the Head Start agency ceased to carry out such program.
Non-Federal contributions may be in cash or in kind, fairly 
evaluated, including plant, equipment, or services. The 
Secretary shall not require non-Federal contributions in excess 
of 20 percent of the approved costs of programs or activities 
assisted under this subchapter.
  (c) No programs shall be approved for assistance under this 
subchapter unless the Secretary is satisfied that the services 
to be provided under such program will be in addition to, and 
not in substitution for, comparable services previously 
provided without Federal assistance. The requirement imposed by 
the preceding sentence shall be subject to such regulations as 
the Secretary may prescribe.
  (d)(1) The Secretary shall establish policies and procedures 
to assure that, for fiscal year 2009 and thereafter, not less 
than 10 percent of the total number of children actually 
enrolled by each Head Start agency and each delegate agency 
will be children with disabilities who are determined to be 
eligible for special education and related services, or early 
intervention services, as appropriate, as determined under the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
seq.), by the State or local agency providing services under 
section 619 or part C of the Individuals with Disabilities 
Education Act (20 U.S.C. 1419, 1431 et seq.).
  (2) Such policies and procedures shall ensure the provision 
of early intervening services, such as educational and 
behavioral services and supports, to meet the needs of children 
with disabilities, prior to an eligibility determination under 
the Individuals with Disabilities Education Act.
  (3) Such policies and procedures shall require Head Start 
agencies to provide timely referral to and collaborate with the 
State or local agency providing services under section 619 or 
part C of the Individuals with Disabilities Education Act to 
ensure the provision of special education and related services 
and early intervention services, and the coordination of 
programmatic efforts, to meet the special needs of such 
children.
  (4) The Secretary shall establish policies and procedures to 
provide Head Start agencies with waivers of the requirements of 
paragraph (1) for not more than 3 years. Such policies and 
procedures shall require Head Start agencies, in order to 
receive such waivers, to provide evidence demonstrating that 
the Head Start agencies are making reasonable efforts on an 
annual basis to comply with the requirements of that paragraph.
  (5) Nothing in this subsection shall be construed to limit or 
create a right to a free appropriate public education under the 
Individuals with Disabilities Education Act.
  (e) The Secretary shall adopt approximate administrative 
measures to assure that the benefits of this subchapter will be 
distributed equitably between residents of rural and urban 
areas.
  (f)(1) Not later than 1 year after the date of enactment of 
the Improving Head Start for School Readiness Act of 2007, the 
Secretary shall establish procedures to enable Head Start 
agencies to develop locally designed or specialized service 
delivery models to address local community needs, including 
models that leverage the capacity and capabilities of the 
delivery system of early childhood education and development 
services or programs.
  (2) In establishing the procedures the Secretary shall 
establish procedures to provide for--
          (A) the conversion of part-day programs to full-
        working-day programs or part-day slots to full-working-
        day slots; and
          (B) serving additional infants and toddlers pursuant 
        to section 645(a)(5).
  (g)(1) For the purpose of expanding Head Start programs the 
Secretary shall take into consideration--
          (A) the quality of the applicant's programs 
        (including Head Start and other child care or child 
        development programs) in existence on the date of the 
        allocation, including, in the case of Head Start 
        programs in existence on the date of the allocation, 
        the extent to which such programs meet or exceed 
        standards described in section 641A(a)(1) and other 
        requirements under this subchapter, and the performance 
        history of the applicant in providing services under 
        other Federal programs (other than the program carried 
        out under this subchapter);
          (B) the applicant's capacity to expand services 
        (including, in the case of Head Start programs in 
        existence on the date of the allocation, whether the 
        applicant accomplished any prior expansions in an 
        effective and timely manner);
          (C) the extent to which the applicant has undertaken 
        a communitywide strategic planning and needs assessment 
        involving other entities, including community 
        organizations, and Federal, State, and local public 
        agencies (including the local educational agency 
        liaison designated under section 722(g)(1)(J)(ii) of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11432(g)(1)(J)(ii))), that provide services to children 
        and families, such as--
                  (i) family support services;
                  (ii) child abuse prevention services;
                  (iii) protective services;
                  (iv) foster care;
                  (v) services for families in whose homes 
                English is not the language customarily spoken;
                  (vi) services for children with disabilities; 
                and
                  (vii) services for homeless children;
          (D) the extent to which the family needs assessment 
        and communitywide strategic planning and needs 
        assessment of the applicant reflect a need to provide 
        full-working-day or full calendar year services and the 
        extent to which, and manner in which, the applicant 
        demonstrates the ability to collaborate and participate 
        with the State and local community providers of child 
        care or preschool services to provide full-working-day 
        full calendar year services;
                  (E) the number of eligible children, as 
                described in clause (i) or (ii) of section 
                645(a)(1)(B), in each community who are not 
                participating in a Head Start program or any 
                other publicly funded early childhood education 
                and development program;
          (F) the concentration of low-income families in each 
        community;
          (G) the extent to which the applicant proposes to 
        foster partnerships with other service providers in a 
        manner that will leverage the existing delivery systems 
        of such services and enhance the resource capacity of 
        the applicant; and
          (H) the extent to which the applicant, in providing 
        services, successfully coordinated activities with the 
        local educational agency serving the community involved 
        (including the local educational agency liaison 
        designated under section 722(g)(1)(J)(ii) of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11432(g)(1)(J)(ii))), and with schools in which 
        children participating in such applicant's program will 
        enroll following such program, with respect to such 
        services and the education services provided by such 
        local educational agency.
  (2) Notwithstanding paragraph (1), in using funds made 
available for expansion under subsection (a)(4)(D), the 
Secretary shall first allocate the funds to qualified 
applicants proposing to use such funds to serve children from 
families with incomes below the poverty line. Agencies that 
receive such funds are subject to the eligibility and 
enrollment requirements under section 645(a)(1).
  (3)(A) In the event that the amount appropriated to carry out 
the program under this subchapter for a fiscal year does not 
exceed the amount appropriated for the prior fiscal year, or is 
not sufficient to maintain services comparable to the services 
provided under this subchapter during the prior fiscal year, a 
Head Start agency may negotiate with the Secretary a reduced 
funded enrollment level without a reduction in the amount of 
the grant received by the agency under this subchapter, if such 
agency can reasonably demonstrate that such reduced funded 
enrollment level is necessary to maintain the quality of 
services.
  (B) In accordance with this paragraph, the Secretary shall 
set up a process for Head Start agencies to negotiate the 
reduced funded enrollment levels referred to in subparagraph 
(A) for the fiscal year involved.
  (C) In the event described in subparagraph (A), the Secretary 
shall be required to notify Head Start agencies of their 
ability to negotiate the reduced funded enrollment levels if 
such an agency can reasonably demonstrate that such reduced 
funded enrollment level is necessary to maintain the quality of 
services.
  (h) Financial assistance provided under this subchapter may 
be used by each Head Start program to provide full-working-day 
Head Start services to any eligible child throughout the full 
calendar year.
  (i) The Secretary shall issue regulations establishing 
requirements for the safety features, and the safe operation, 
of vehicles used by Head Start agencies to transport children 
participating in Head Start programs. The regulations shall 
also establish requirements to ensure the appropriate 
supervision of, and appropriate background checks for, 
individuals with whom the agencies contract to transport those 
children.
  (j) Any agency that receives financial assistance under this 
subchapter to improve the compensation of staff who provide 
services under this Act shall use the financial assistance to 
improve the compensation of such staff, regardless of whether 
the agency has the ability to improve the compensation of staff 
employed by the agency who do not provide Head Start services.
  (k)(1) The Secretary shall allow center-based Head Start 
programs the flexibility to satisfy the total number of hours 
of service required by the regulations in effect on the date of 
enactment of the Human Services Amendments of 1994, to be 
provided to children in Head Start programs so long as such 
agencies do not--
          (A) provide less than 3 hours of service per day;
          (B) reduce the number of days of service per week; or
          (C) reduce the number of days of service per year.
  (2) The provisions of this subsection shall not be construed 
to restrict the authority of the Secretary to fund alternative 
program variations authorized under section 1306.35 of title 45 
of the Code of Federal Regulations in effect on the date of 
enactment of the Human Services Amendments of 1994.
  (l)(1) With funds made available under this subchapter to 
expand migrant and seasonal Head Start programs, the Secretary 
shall give priority to migrant and seasonal Head Start programs 
that serve eligible children of migrant or seasonal farmworker 
families whose work requires them to relocate most frequently.
  (2) In determining the need and demand for migrant and 
seasonal Head Start programs (and services provided through 
such programs), the Secretary shall consult with appropriate 
entities, including providers of services for migrant and 
seasonal Head Start programs. The Secretary shall, after taking 
into consideration the need and demand for migrant and seasonal 
Head Start programs (and such services), ensure that there is 
an adequate level of such services for eligible children of 
migrant farmworker families before approving an increase in the 
allocation of funds provided under this subchapter for unserved 
eligible children of seasonal farmworker families. In serving 
the eligible children of seasonal farmworker families, the 
Secretary shall ensure that services provided by migrant and 
seasonal Head Start programs do not duplicate or overlap with 
other Head Start services available to eligible children of 
such farmworker families.
  (3) In carrying out this subchapter, the Secretary shall 
continue the administrative arrangement at the national level 
for meeting the needs of Indian children and children of 
migrant and seasonal farmworker families and shall ensure--
          (A) the provision of training and technical 
        assistance by staff with knowledge of and experience in 
        working with such populations; and
          (B) the appointment of a national Indian Head Start 
        collaboration director and a national migrant and 
        seasonal Head Start collaboration director.
  (4)(A) For the purposes of paragraph (3), the Secretary shall 
conduct an annual consultation in each affected Head Start 
region, with tribal governments operating Head Start (including 
Early Head Start) programs.
  (B) The consultations shall be for the purpose of better 
meeting the needs of Indian, including Alaska Native, children 
and their families, in accordance with this subchapter, taking 
into consideration funding allocations, distribution formulas, 
and other issues affecting the delivery of Head Start services 
in their geographic locations.
  (C) The Secretary shall publish a notification of the 
consultations in the Federal Register before conducting the 
consultations.
  (D) The Secretary shall ensure that a detailed report of each 
consultation shall be prepared and made available, within 90 
days after the consultation, to all tribal governments 
receiving funds under this subchapter.
  (m) The Secretary shall issue rules to establish policies and 
procedures to remove barriers to the enrollment and 
participation of homeless children in Head Start programs. Such 
rules shall require Head Start agencies--
          (1) to implement policies and procedures to ensure 
        that homeless children are identified and prioritized 
        for enrollment;
          (2) to allow families of homeless children to apply 
        to, enroll in, and attend Head Start programs while 
        required documents, such as proof of residency, 
        immunization and other medical records, birth 
        certificates, and other documents, are obtained within 
        a reasonable time frame; and
          (3) to coordinate individual Head Start programs with 
        efforts to implement subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 
        et seq.).
  (n) Nothing in this subchapter shall be construed to require 
a State to establish a publicly funded program of early 
childhood education and development, or to require any child to 
participate in such a publicly funded program, including a 
State-funded preschool program, or to participate in any 
initial screening before participating in a publicly funded 
program of early childhood education and development, except as 
provided under sections 612(a)(3) and 635(a)(5) of the 
Individuals with Disabilities Education Act (20 U.S.C. 
1412(a)(3), 1435(a)(5)).
  (o) All curricula funded under this subchapter shall be based 
on scientifically valid research, and be age and 
developmentally appropriate. The curricula shall reflect all 
areas of child development and learning and be aligned with the 
Head Start Child Outcomes Framework. Parents shall have the 
opportunity to examine any such curricula or instructional 
materials funded under this subchapter.

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                              ----------                              


PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996



           *       *       *       *       *       *       *
TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

           *       *       *       *       *       *       *


Subtitle A--Eligibility for Federal Benefits

           *       *       *       *       *       *       *


SEC. 402. LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR CERTAIN FEDERAL 
                    PROGRAMS.

  (a) Limited Eligibility for Specified Federal Programs.--
          (1) In general.--Notwithstanding any other provision 
        of law and except as provided in paragraph (2), an 
        alien who is a qualified alien (as defined in section 
        431) is not eligible for any specified Federal program 
        (as defined in paragraph (3)).
          (2) Exceptions.--
                  (A) Time-limited exception for refugees and 
                asylees.--With respect to the specified Federal 
                programs described in paragraph (3), paragraph 
                (1) shall not apply to an alien until 7 years 
                after the date--
                          (i) an alien is admitted to the 
                        United States as a refugee under 
                        section 207 of the Immigration and 
                        Nationality Act;
                          (ii) an alien is granted asylum under 
                        section 208 of such Act;
                          (iii) an alien's deportation is 
                        withheld under section 243(h) of such 
                        Act (as in effect immediately before 
                        the effective date of section 307 of 
                        division C of Public Law 104-208) or 
                        section 241(b)(3) of such Act (as 
                        amended by section 305(a) of division C 
                        of Public Law 104-208);
                          (iv) an alien is granted status as a 
                        Cuban and Haitian entrant (as defined 
                        in section 501(e) of the Refugee 
                        Education Assistance Act of 1980); or
                          (v) an alien is admitted to the 
                        United States as an Amerasian immigrant 
                        pursuant to section 584 of the Foreign 
                        Operations, Export Financing, and 
                        Related Programs Appropriations Act, 
                        1988 (as contained in section 101(e) of 
                        Public Law 100-202 and amended by the 
                        9th proviso under migration and refugee 
                        assistance in title II of the Foreign 
                        Operations, Export Financing, and 
                        Related Programs Appropriations Act, 
                        1989, Public Law 100-461, as amended).
                  (B) Certain permanent resident aliens.--
                Paragraph (1) shall not apply to an alien who--
                          (i) is lawfully admitted to the 
                        United States for permanent residence 
                        under the Immigration and Nationality 
                        Act; and
                          (ii)(I) has worked 40 qualifying 
                        quarters of coverage as defined under 
                        title II of the Social Security Act or 
                        can be credited with such qualifying 
                        quarters as provided under section 435, 
                        and (II) in the case of any such 
                        qualifying quarter creditable for any 
                        period beginning after December 31, 
                        1996, did not receive any Federal 
                        means-tested public benefit (as 
                        provided under section 403) during any 
                        such period.
                  (C) Veteran and active duty exception.--
                Paragraph (1) shall not apply to an alien who 
                is lawfully residing in any State and is--
                          (i) a veteran (as defined in section 
                        101, 1101, or 1301, or as described in 
                        section 107 of title 38, United States 
                        Code) with a discharge characterized as 
                        an honorable discharge and not on 
                        account of alienage and who fulfills 
                        the minimum active-duty service 
                        requirements of section 5303A(d) of 
                        title 38, United States Code,
                          (ii) on active duty (other than 
                        active duty for 
                        training) in the Armed Forces of the 
                        United States, or
                          (iii) the spouse or unmarried 
                        dependent child of an individual 
                        described in clause (i) or (ii) or the 
                        unremarried surviving spouse of an 
                        individual described in clause (i) or 
                        (ii) who is deceased if the marriage 
                        fulfills the requirements of section 
                        1304 of title 38, United States Code.
                  (D) Transition for aliens currently receiving 
                benefits.--
                          (i) SSI.--
                                  (I) In general.--With respect 
                                to the specified Federal 
                                program described in paragraph 
                                (3)(A), during the period 
                                beginning on the date of the 
                                enactment of this Act and 
                                ending on September 30, 1998, 
                                the Commissioner of Social 
                                Security shall redetermine the 
                                eligibility of any individual 
                                who is receiving benefits under 
                                such program as of the date of 
                                the enactment of this Act and 
                                whose eligibility for such 
                                benefits may terminate by 
                                reason of the provisions of 
                                this subsection.
                                  (II) Redetermination 
                                criteria.--With respect to any 
                                redetermination under subclause 
                                (I), the Commissioner of Social 
                                Security shall apply the 
                                eligibility criteria for new 
                                applicants for benefits under 
                                such program.
                                  (III) Grandfather 
                                provision.--The provisions of 
                                this subsection and the 
                                redetermination under subclause 
                                (I), shall only apply with 
                                respect to the benefits of an 
                                individual described in 
                                subclause (I) for months 
                                beginning on or after September 
                                30, 1998.
                                  (IV) Notice.--Not later than 
                                March 31, 1997, the 
                                Commissioner of Social Security 
                                shall notify an individual 
                                described in subclause (I) of 
                                the provisions of this clause.
                          (ii) Food stamps.--
                                  (I) In general.--With respect 
                                to the specified Federal 
                                program described in paragraph 
                                (3)(B), ineligibility under 
                                paragraph (1) shall not apply 
                                until April 1, 1997, to an 
                                alien who received benefits 
                                under such program on the date 
                                of enactment of this Act, 
                                unless such alien is determined 
                                to be ineligible to receive 
                                such benefits under the Food 
                                Stamp Act of 1977. The State 
                                agency shall recertify the 
                                eligibility of all such aliens 
                                during the period beginning 
                                April 1, 1997, and ending 
                                August 22, 1997.
                                  (II) Recertification 
                                criteria.--With respect to any 
                                recertification under subclause 
                                (I), the State agency shall 
                                apply the eligibility criteria 
                                for applicants for benefits 
                                under such program.
                                  (III) Grandfather 
                                provision.--The provisions of 
                                this subsection and the 
                                recertification under subclause 
                                (I) shall only apply with 
                                respect to the eligibility of 
                                an alien for a program for 
                                months beginning on or after 
                                the date of recertification, if 
                                on the date of enactment of 
                                this Act the alien is lawfully 
                                residing in any State and is 
                                receiving benefits under such 
                                program on such date of 
                                enactment.
                  (E) Aliens receiving ssi on august 22, 
                1996.--With respect to eligibility for benefits 
                for the program defined in paragraph (3)(A) 
                (relating to the supplemental security income 
                program), paragraph (1) shall not apply to an 
                alien who is lawfully residing in the United 
                States and who was receiving such benefits on 
                August 22, 1996.
                  (F) Disabled aliens lawfully residing in the 
                united states on august 22, 1996.--With respect 
                to eligibility for benefits for the specified 
                Federal programs described in paragraph (3), 
                paragraph (1) shall not apply to an alien who--
                          (i) in the case of the specified 
                        Federal program described in paragraph 
                        (3)(A)--
                                  (I) was lawfully residing in 
                                the United States on August 22, 
                                1996; and
                                  (II) is blind or disabled (as 
                                defined in paragraph (2) or (3) 
                                of section 1614(a) of the 
                                Social Security Act (42 U.S.C. 
                                1382c(a))); and
                          (ii) in the case of the specified 
                        Federal program described in paragraph 
                        (3)(B), is receiving benefits or 
                        assistance for blindness or disability 
                        (within the meaning of section 3(j) of 
                        the Food Stamp Act of 1977 (7 U.S.C. 
                        2012(r))).
                  (G) Exception for certain indians.--With 
                respect to eligibility for benefits for the 
                specified Federal programs described in 
                paragraph (3), section 401(a) and paragraph (1) 
                shall not apply to any individual--
                          (i) who is an American Indian born in 
                        Canada to whom the provisions of 
                        section 289 of the Immigration and 
                        Nationality Act (8 U.S.C. 1359) apply; 
                        or
                          (ii) who is a member of an Indian 
                        tribe (as defined in section 4(e) of 
                        the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 
                        450b(e))).
                  (H) SSI exception for certain recipients on 
                the basis of very old applications.--With 
                respect to eligibility for benefits for the 
                program defined in paragraph (3)(A) (relating 
                to the supplemental security income program), 
                paragraph (1) shall not apply to any 
                individual--
                          (i) who is receiving benefits under 
                        such program for months after July 1996 
                        on the basis of an application filed 
                        before January 1, 1979; and
                          (ii) with respect to whom the 
                        Commissioner of Social Security lacks 
                        clear and convincing evidence that such 
                        individual is an alien ineligible for 
                        such benefits as a result of the 
                        application of this section.
                  (I) Food stamp exception for certain elderly 
                individuals.--With respect to eligibility for 
                benefits for the specified Federal program 
                described in paragraph (3)(B), paragraph (1) 
                shall not apply to any individual who on August 
                22, 1996--
                          (i) was lawfully residing in the 
                        United States; and
                          (ii) was 65 years of age or older.
                  (J) Food stamp exception for certain 
                children.--With respect to eligibility for 
                benefits for the specified Federal program 
                described in paragraph (3)(B), paragraph (1) 
                shall not apply to any individual who is under 
                18 years of age.
                  (K) Food stamp exception for certain hmong 
                and highland laotians.--With respect to 
                eligibility for benefits for the specified 
                Federal program described in paragraph (3)(B), 
                paragraph (1) shall not apply to--
                          (i) any individual who--
                                  (I) is lawfully residing in 
                                the United States; and
                                  (II) was a member of a Hmong 
                                or Highland Laotian tribe at 
                                the time that the tribe 
                                rendered assistance to United 
                                States personnel by taking part 
                                in a military or rescue 
                                operation during the Vietnam 
                                era (as defined in section 101 
                                of title 38, United States 
                                Code);
                          (ii) the spouse, or an unmarried 
                        dependent child, of such an individual; 
                        or
                          (iii) the unremarried surviving 
                        spouse of such an individual who is 
                        deceased.
                  (L) Food stamp exception for certain 
                qualified aliens.--With respect to eligibility 
                for benefits for the specified Federal program 
                described in paragraph (3)(B), paragraph (1) 
                shall not apply to any qualified alien who has 
                resided in the United States with a status 
                within the meaning of the term ``qualified 
                alien'' for a period of 5 years or more 
                beginning on the date of the alien's entry into 
                the United States.
                  (M) SSI extensions through fiscal year 
                2011.--
                          (i) Two-year extension for certain 
                        aliens and victims of trafficking.--
                                  (I) In general.--Subject to 
                                clause (ii), with respect to 
                                eligibility for benefits under 
                                subparagraph (A) for the 
                                specified Federal program 
                                described in paragraph (3)(A) 
                                of qualified aliens (as defined 
                                in section 431(b)) and victims 
                                of trafficking in persons (as 
                                defined in section 107(b)(1)(C) 
                                of division A of the Victims of 
                                Trafficking and Violence 
                                Protection Act of 2000 (Public 
                                Law 106-386) or as granted 
                                status under section 
                                101(a)(15)(T)(ii) of the 
                                Immigration and Nationality 
                                Act), the 7-year period 
                                described in subparagraph (A) 
                                shall be deemed to be a 9-year 
                                period during fiscal years 2009 
                                through 2011 in the case of 
                                such a qualified alien or 
                                victim of trafficking who 
                                furnishes to the Commissioner 
                                of Social Security the 
                                declaration required under 
                                subclause (IV) (if applicable) 
                                and is described in subclause 
                                (III).
                                  (II) Aliens and victims whose 
                                benefits ceased in prior fiscal 
                                years.--Subject to clause (ii), 
                                beginning on the date of the 
                                enactment of the SSI Extension 
                                for Elderly and Disabled 
                                Refugees Act, any qualified 
                                alien (as defined in section 
                                431(b)) or victim of 
                                trafficking in persons (as 
                                defined in section 107(b)(1)(C) 
                                of division A of the Victims of 
                                Trafficking and Violence 
                                Protection Act of 2000 (Public 
                                Law 106-386) or as granted 
                                status under section 
                                101(a)(15)(T)(ii) of the 
                                Immigration and Nationality 
                                Act) rendered ineligible for 
                                the specified Federal program 
                                described in paragraph (3)(A) 
                                during the period beginning on 
                                August 22, 1996, and ending on 
                                September 30, 2008, solely by 
                                reason of the termination of 
                                the 7-year period described in 
                                subparagraph (A) shall be 
                                eligible for such program for 
                                an additional 2-year period in 
                                accordance with this clause, if 
                                such qualified alien or victim 
                                of trafficking meets all other 
                                eligibility factors under title 
                                XVI of the Social Security Act, 
                                furnishes to the Commissioner 
                                of Social Security the 
                                declaration required under 
                                subclause (IV) (if applicable), 
                                and is described in subclause 
                                (III).
                                  (III) Aliens and victims 
                                described.--For purposes of 
                                subclauses (I) and (II), a 
                                qualified alien or victim of 
                                trafficking described in this 
                                subclause is an alien or victim 
                                who--
                                          (aa) has been a 
                                        lawful permanent 
                                        resident for less than 
                                        6 years and such status 
                                        has not been abandoned, 
                                        rescinded under section 
                                        246 of the Immigration 
                                        and Nationality Act, or 
                                        terminated through 
                                        removal proceedings 
                                        under section 240 of 
                                        the Immigration and 
                                        Nationality Act, and 
                                        the Commissioner of 
                                        Social Security has 
                                        verified such status, 
                                        through procedures 
                                        established in 
                                        consultation with the 
                                        Secretary of Homeland 
                                        Security;
                                          (bb) has filed an 
                                        application, within 4 
                                        years from the date the 
                                        alien or victim began 
                                        receiving supplemental 
                                        security income 
                                        benefits, to become a 
                                        lawful permanent 
                                        resident with the 
                                        Secretary of Homeland 
                                        Security, and the 
                                        Commissioner of Social 
                                        Security has verified, 
                                        through procedures 
                                        established in 
                                        consultation with such 
                                        Secretary, that such 
                                        application is pending;
                                          (cc) has been granted 
                                        the status of Cuban and 
                                        Haitian entrant, as 
                                        defined in section 
                                        501(e) of the Refugee 
                                        Education Assistance 
                                        Act of 1980 (Public Law 
                                        96-422), for purposes 
                                        of the specified 
                                        Federal program 
                                        described in paragraph 
                                        (3)(A);
                                          (dd) has had his or 
                                        her deportation 
                                        withheld by the 
                                        Secretary of Homeland 
                                        Security under section 
                                        243(h) of the 
                                        Immigration and 
                                        Nationality Act (as in 
                                        effect immediately 
                                        before the effective 
                                        date of section 307 of 
                                        division C of Public 
                                        Law 104-208), or whose 
                                        removal is withheld 
                                        under section 241(b)(3) 
                                        of such Act;
                                          (ee) has not attained 
                                        age 18; or
                                          (ff) has attained age 
                                        70.
                                  (IV) Declaration required.--
                                          (aa) In general.--For 
                                        purposes of subclauses 
                                        (I) and (II), the 
                                        declaration required 
                                        under this subclause of 
                                        a qualified alien or 
                                        victim of trafficking 
                                        described in either 
                                        such subclause is a 
                                        declaration under 
                                        penalty of perjury 
                                        stating that the alien 
                                        or victim has made a 
                                        good faith effort to 
                                        pursue United States 
                                        citizenship, as 
                                        determined by the 
                                        Secretary of Homeland 
                                        Security. The 
                                        Commissioner of Social 
                                        Security shall develop 
                                        criteria as needed, in 
                                        consultation with the 
                                        Secretary of Homeland 
                                        Security, for 
                                        consideration of such 
                                        declarations.
                                          (bb) Exception for 
                                        children.--A qualified 
                                        alien or victim of 
                                        trafficking described 
                                        in subclause (I) or 
                                        (II) who has not 
                                        attained age 18 shall 
                                        not be required to 
                                        furnish to the 
                                        Commissioner of Social 
                                        Security a declaration 
                                        described in item (aa) 
                                        as a condition of being 
                                        eligible for the 
                                        specified Federal 
                                        program described in 
                                        paragraph (3)(A) for an 
                                        additional 2-year 
                                        period in accordance 
                                        with this clause.
                                  (V) Payment of benefits to 
                                aliens whose benefits ceased in 
                                prior fiscal years.--Benefits 
                                paid to a qualified alien or 
                                victim described in subclause 
                                (II) shall be paid 
                                prospectively over the duration 
                                of the qualified alien's or 
                                victim's renewed eligibility.
                          (ii) Special rule in case of pending 
                        or approved naturalization 
                        application.--With respect to 
                        eligibility for benefits for the 
                        specified program described in 
                        paragraph (3)(A), paragraph (1) shall 
                        not apply during fiscal years 2009 
                        through 2011 to an alien described in 
                        one of clauses (i) through (v) of 
                        subparagraph (A) or a victim of 
                        trafficking in persons (as defined in 
                        section 107(b)(1)(C) of division A of 
                        the Victims of Trafficking and Violence 
                        Protection Act of 2000 (Public Law 106-
                        386) or as granted status under section 
                        101(a)(15)(T)(ii) of the Immigration 
                        and Nationality Act), if such alien or 
                        victim (including any such alien or 
                        victim rendered ineligible for the 
                        specified Federal program described in 
                        paragraph (3)(A) during the period 
                        beginning on August 22, 1996, and 
                        ending on September 30, 2008, solely by 
                        reason of the termination of the 7-year 
                        period described in subparagraph (A)) 
                        has filed an application for 
                        naturalization that is pending before 
                        the Secretary of Homeland Security or a 
                        United States district court based on 
                        section 336(b) of the Immigration and 
                        Nationality Act, or has been approved 
                        for naturalization but not yet sworn in 
                        as a United States citizen, and the 
                        Commissioner of Social Security has 
                        verified, through procedures 
                        established in consultation with the 
                        Secretary of Homeland Security, that 
                        such application is pending or has been 
                        approved.
                  (N) Exception for citizens of freely 
                associated states.--With respect to eligibility 
                for benefits for any specified Federal program, 
                paragraph (1) shall not apply to any individual 
                who lawfully resides in the United States in 
                accordance with section 141 of the Compacts of 
                Free Association between the Government of the 
                United States and the Governments of the 
                Federated States of Micronesia, the Republic of 
                the Marshall Islands, and the Republic of 
                Palau.
          (3) Specified federal program defined.--For purposes 
        of this title, the term ``specified Federal program'' 
        means any of the following:
                  (A) SSI.--The supplemental security income 
                program under title XVI of the Social Security 
                Act, including supplementary payments pursuant 
                to an agreement for Federal administration 
                under section 1616(a) of the Social Security 
                Act and payments pursuant to an agreement 
                entered into under section 212(b) of Public Law 
                93-66.
                  (B) Food stamps.--The food stamp program as 
                defined in section 3(l) of the Food Stamp Act 
                of 1977.
  (b) Limited Eligibility for Designated Federal 
Programs.--
          (1) In general.--Notwithstanding any other provision 
        of law and except as provided in section 403 and 
        paragraph (2), a State is authorized to determine the 
        eligibility of an alien who is a qualified alien (as 
        defined in section 431) for any designated Federal 
        program (as defined in paragraph (3)).
          (2) Exceptions.--Qualified aliens under this 
        paragraph shall be eligible for any designated Federal 
        program.
                  (A) Time-limited exception for refugees and 
                asylees.--
                          (i) Medicaid.--With respect to the 
                        designated Federal program described in 
                        paragraph (3)(C), paragraph (1) shall 
                        not apply to an alien until 7 years 
                        after the date--
                                  (I) an alien is admitted to 
                                the United States as a refugee 
                                under section 207 of the 
                                Immigration and Nationality 
                                Act;
                                  (II) an alien is granted 
                                asylum under section 208 of 
                                such Act;
                                  (III) an alien's deportation 
                                is withheld under section 
                                243(h) of such Act (as in 
                                effect immediately before the 
                                effective date of section 307 
                                of division C of Public Law 
                                104-208) or section 241(b)(3) 
                                of such Act (as amended by 
                                section 305(a) of division C of 
                                Public Law 104-208);
                                  (IV) an alien is granted 
                                status as a Cuban and Haitian 
                                entrant (as defined in section 
                                501(e) of the Refugee Education 
                                Assistance Act of 1980); or
                          (V) an alien admitted to the United 
                        States as an Amerasian immigrant as 
                        described in subsection (a)(2)(A)(i)(V) 
                        until 5 years after the date of such 
                        alien's entry into the United States.
                          (ii) Other designated federal 
                        programs.--With respect to the 
                        designated Federal programs under 
                        paragraph (3) (other than subparagraph 
                        (C)), paragraph (1) shall not apply to 
                        an alien until 5 years after the date--
                                  (I) an alien is admitted to 
                                the United States as a refugee 
                                under section 207 of the 
                                Immigration and Nationality 
                                Act;
                                  (II) an alien is granted 
                                asylum under section 208 of 
                                such Act;
                                  (III) an alien's deportation 
                                is withheld under section 
                                243(h) of such Act;
                                  (IV) an alien is granted 
                                status as a Cuban and Haitian 
                                entrant (as defined in section 
                                501(e) of the Refugee Education 
                                Assistance Act of 1980); or
                          (V) an alien admitted to the United 
                        States as an Amerasian immigrant as 
                        described in subsection (a)(2)(A)(i)(V) 
                        until 5 years after the date of such 
                        alien's entry into the United States.
                  (B) Certain permanent resident aliens.--An 
                alien who--
                          (i) is lawfully admitted to the 
                        United States for permanent residence 
                        under the Immigration and Nationality 
                        Act; and
                          (ii)(I) has worked 40 qualifying 
                        quarters of coverage as defined under 
                        title II of the Social Security Act or 
                        can be credited with such qualifying 
                        quarters as provided under section 435, 
                        and (II) in the case of any such 
                        qualifying quarter creditable for any 
                        period beginning after December 31, 
                        1996, did not receive any Federal 
                        means-tested public benefit (as 
                        provided under section 403) during any 
                        such period.
                  (C) Veteran and active duty exception.--An 
                alien who is lawfully residing in any State and 
                is--
                          (i) a veteran (as defined in section 
                        101, 1101, or 1301, or as described in 
                        section 107 of title 38, United States 
                        Code) with a discharge characterized as 
                        an honorable discharge and not on 
                        account of alienage and who fulfills 
                        the minimum active-duty service 
                        requirements of section 5303A(d) of 
                        title 38, United States Code,
                          (ii) on active duty (other than 
                        active duty for 
                        training) in the Armed Forces of the 
                        United States, or
                          (iii) the spouse or unmarried 
                        dependent child of an individual 
                        described in clause (i) or (ii) or the 
                        unremarried surviving spouse of an 
                        individual described in clause (i) or 
                        (ii) who is deceased if the marriage 
                        fulfills the requirements of section 
                        1304 of title 38, United States Code.
                  (D) Transition for those currently receiving 
                benefits.--An alien who on the date of the 
                enactment of this Act is lawfully residing in 
                any State and is receiving benefits under such 
                program on the date of the enactment of this 
                Act shall continue to be eligible to receive 
                such benefits until January 1, 1997.
                  (E) Medicaid exception for certain indians.--
                With respect to eligibility for benefits for 
                the program defined in paragraph (3)(C) 
                (relating to the medicaid program), section 
                401(a) and paragraph (1) shall not apply to any 
                individual described in subsection (a)(2)(G).
                  (F) Medicaid exception for aliens receiving 
                ssi.--An alien who is receiving benefits under 
                the program defined in subsection (a)(3)(A) 
                (relating to the supplemental security income 
                program) shall be eligible for medical 
                assistance under a State plan under title XIX 
                of the Social Security Act (42 U.S.C. 1396 et 
                seq.) under the same terms and conditions that 
                apply to other recipients of benefits under the 
                program defined in such subsection.
                  (G)  [Medicaid exception for] Exception for 
                citizens of freely associated states.--With 
                respect to eligibility for benefits for [the 
                designated Federal program defined in paragraph 
                (3)(C) (relating to the Medicaid program)] any 
                designated Federal program, paragraph (1) shall 
                not apply to any individual who lawfully 
                resides in 1 of the 50 States or the District 
                of Columbia in accordance with the Compacts of 
                Free Association between the Government of the 
                United States and the Governments of the 
                Federated States of Micronesia, the Republic of 
                the Marshall Islands, and the Republic of Palau 
                and shall not apply, at the option of the 
                Governor of Puerto Rico, the Virgin Islands, 
                Guam, the Northern Mariana Islands, or American 
                Samoa as communicated to the Secretary of 
                Health and Human Services in writing, to any 
                individual who lawfully resides in the 
                respective territory in accordance with such 
                Compacts.
          (3) Designated federal program defined.--For purposes 
        of this title, the term ``designated Federal program'' 
        means any of the following:
                  (A) Temporary assistance for needy 
                families.--The program of block grants to 
                States for temporary assistance for needy 
                families under part A of title IV of the Social 
                Security Act.
                  (B) Social services block grant.--The program 
                of block grants to States for social services 
                under title XX of the Social Security Act.
                  (C) Medicaid.--A State plan approved under 
                title XIX of the Social Security Act, other 
                than medical assistance described in section 
                401(b)(1)(A).

SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR FEDERAL 
                    MEANS-TESTED PUBLIC BENEFIT.

  (a) In General.--Notwithstanding any other provision of law 
and except as provided in subsections (b), (c), and (d), an 
alien who is a qualified alien (as defined in section 431) and 
who enters the United States on or after the date of the 
enactment of this Act is not eligible for any Federal means-
tested public benefit for a period of 5 years beginning on the 
date of the alien's entry into the United States with a status 
within the meaning of the term ``qualified alien''.
  (b) Exceptions.--The limitation under subsection (a) shall 
not apply to the following aliens:
          (1) Exception for refugees and asylees.--
                  (A) An alien who is admitted to the United 
                States as a refugee under section 207 of the 
                Immigration and Nationality Act.
                  (B) An alien who is granted asylum under 
                section 208 of such Act.
                  (C) An alien whose deportation is being 
                withheld under section 243(h) of such Act (as 
                in effect immediately before the effective date 
                of section 307 of division C of Public Law 104-
                208) or section 241(b)(3) of such Act (as 
                amended by section 305(a) of division C of 
                Public Law 104-208).
                  (D) An alien who is a Cuban and Haitian 
                entrant as defined in section 501(e) of the 
                Refugee Education Assistance Act of 1980.
                  (E) An alien admitted to the United States as 
                an Amerasian immigrant as described in section 
                402(a)(2)(A)(i)(V).
          (2) Veteran and active duty exception.--An alien who 
        is lawfully residing in any State and is--
                  (A) a veteran (as defined in section 101, 
                1101, or 1301, or as described in section 107 
                of title 38, United States Code) with a 
                discharge characterized as an honorable 
                discharge and not on account of alienage and 
                who fulfills the minimum active-duty service 
                requirements of section 5303A(d) of title 38, 
                United States Code,
                  (B) on active duty (other than active duty 
                for training) in the Armed Forces of the United 
                States, or
                  (C) the spouse or unmarried dependent child 
                of an individual described in subparagraph (A) 
                or (B) or the unremarried surviving spouse of 
                an individual described in clause (i) or (ii) 
                who is deceased if the marriage fulfills the 
                requirements of section 1304 of title 38, 
                United States Code.
          (3) Exception for citizens of freely associated 
        states.--An individual described in section 
        402(b)(2)(G)[, but only with respect to the designated 
        Federal program defined in section 402(b)(3)(C)].
  (c) Application of Term Federal Means-tested Public 
Benefit.--
          (1) The limitation under subsection (a) shall not 
        apply to assistance or benefits under paragraph (2).
          (2) Assistance and benefits under this paragraph are 
        as follows:
                  (A) Medical assistance described in section 
                401(b)(1)(A).
                  (B) Short-term, non-cash, in-kind emergency 
                disaster relief.
                  (C) Assistance or benefits under the Richard 
                B. Russell National School Lunch Act.
                  (D) Assistance or benefits under the Child 
                Nutrition Act of 1966.
                  (E) Public health assistance (not including 
                any assistance under title XIX of the Social 
                Security Act) for immunizations with respect to 
                immunizable diseases and for testing and 
                treatment of symptoms of communicable diseases 
                whether or not such symptoms are caused by a 
                communicable disease.
                  (F) Payments for foster care and adoption 
                assistance under parts B and E of title IV of 
                the Social Security Act for a parent or a child 
                who would, in the absence of subsection (a), be 
                eligible to have such payments made on the 
                child's behalf under such part, but only if the 
                foster or adoptive parent (or parents) of such 
                child is a qualified alien (as defined in 
                section 431).
                  (G) Programs, services, or assistance (such 
                as soup kitchens, crisis counseling and 
                intervention, and short-term shelter) specified 
                by the Attorney General, in the Attorney 
                General's sole and unreviewable discretion 
                after consultation with appropriate Federal 
                agencies and departments, which (i) deliver in-
                kind services at the community level, including 
                through public or private nonprofit agencies; 
                (ii) do not condition the provision of 
                assistance, the amount of assistance provided, 
                or the cost of assistance provided on the 
                individual recipient's income or resources; and 
                (iii) are necessary for the protection of life 
                or safety.
                  (H) Programs of student assistance under 
                titles IV, V, IX, and X of the Higher Education 
                Act of 1965, and titles III, VII, and VIII of 
                the Public Health Service Act.
                  (I) Means-tested programs under the 
                Elementary and Secondary Education Act of 1965.
                  (J) Benefits under the Head Start Act.
                  (K) Benefits under the title I of the 
                Workforce Investment Act of 1998.
                  (L) Assistance or benefits provided to 
                individuals under the age of 18 under the Food 
                Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
  (d) Benefits for Certain Groups.--Notwithstanding any other 
provision of law, the limitations under section 401(a) and 
subsection (a) shall not apply to--
          (1) an individual described in section 402(a)(2)(G), 
        but only with respect to the programs specified in 
        subsections (a)(3) and (b)(3)(C) of section 402; or
          (2) an individual, spouse, or dependent described in 
        section 402(a)(2)(K), but only with respect to the 
        specified Federal program described in section 
        402(a)(3)(B).

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                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

  (a) In General.--Except as otherwise provided in this title, 
the terms used in this title have the same meaning given such 
terms in section 101(a) of the Immigration and Nationality Act.
  (b) Qualified Alien.--For purposes of this title, the term 
``qualified alien'' means an alien who, at the time the alien 
applies for, receives, or attempts to receive a Federal public 
benefit, is--
          (1) an alien who is lawfully admitted for permanent 
        residence under the Immigration and Nationality Act,
          (2) an alien who is granted asylum under section 208 
        of such Act,
          (3) a refugee who is admitted to the United States 
        under section 207 of such Act,
          (4) an alien who is paroled into the United States 
        under section 212(d)(5) of such Act for a period of at 
        least 1 year,
          (5) an alien whose deportation is being withheld 
        under section 243(h) of such Act (as in effect 
        immediately before the effective date of section 307 of 
        division C of Public Law 104-208) or section 241(b)(3) 
        of such Act (as amended by section 305(a) of division C 
        of Public Law 104-208),
          (6) an alien who is granted conditional entry 
        pursuant to section 203(a)(7) of such Act as in effect 
        prior to April 1, 1980,
          (7) an alien who is a Cuban and Haitian entrant (as 
        defined in section 501(e) of the Refugee Education 
        Assistance Act of 1980), or
          (8) an individual who lawfully resides in the United 
        States in accordance with a Compact of Free Association 
        referred to in section 402(b)(2)(G)[, but only with 
        respect to the designated Federal program defined in 
        section 402(b)(3)(C) (relating to the Medicaid 
        program)].
  (c) Treatment of Certain Battered Aliens as Qualified 
Aliens.--For purposes of this title, the term ``qualified 
alien'' includes--
          (1) an alien who--
                  (A) has been battered or subjected to extreme 
                cruelty in the United States by a spouse or a 
                parent, or by a member of the spouse or 
                parent's family residing in the same household 
                as the alien and the spouse or parent consented 
                to, or acquiesced in, such battery or cruelty, 
                but only if (in the opinion of the agency 
                providing such benefits) there is a substantial 
                connection between such battery or cruelty and 
                the need for the benefits to be provided; and
                  (B) has been approved or has a petition 
                pending which sets forth a prima facie case 
                for--
                          (i) status as a spouse or a child of 
                        a United States citizen pursuant to 
                        clause (ii), (iii), or (iv) of section 
                        204(a)(1)(A) of the Immigration and 
                        Nationality Act,
                          (ii) classification pursuant to 
                        clause (ii) or (iii) of section 
                        204(a)(1)(B) of the Act (as in effect 
                        prior to April 1, 1997),
                          (iii) suspension of deportation under 
                        section 244(a)(3) of the Immigration 
                        and Nationality Act (as in effect 
                        before the title III-A effective date 
                        in section 309 of the Illegal 
                        Immigration Reform and Immigrant 
                        Responsibility Act of 1996).
                          (iv) status as a spouse or child of a 
                        United States citizen pursuant to 
                        clause (i) of section 204(a)(1)(A) of 
                        such Act, or classification pursuant to 
                        clause (i) of section 204(a)(1)(B) of 
                        such Act;
                          (v) cancellation of removal pursuant 
                        to section 240A(b)(2) of such Act;
          (2) an alien--
                  (A) whose child has been battered or 
                subjected to extreme cruelty in the United 
                States by a spouse or a parent of the alien 
                (without the active participation of the alien 
                in the battery or cruelty), or by a member of 
                the spouse or parent's family residing in the 
                same household as the alien and the spouse or 
                parent consented or acquiesced to such battery 
                or cruelty, and the alien did not actively 
                participate in such battery or cruelty, but 
                only if (in the opinion of the agency providing 
                such benefits) there is a substantial 
                connection between such battery or cruelty and 
                the need for the benefits to be provided; and
                  (B) who meets the requirement of subparagraph 
                (B) of paragraph (1);
          (3) an alien child who--
                  (A) resides in the same household as a parent 
                who has been battered or subjected to extreme 
                cruelty in the United States by that parent's 
                spouse or by a member of the spouse's family 
                residing in the same household as the parent 
                and the spouse consented or acquiesced to such 
                battery or cruelty, but only if (in the opinion 
                of the agency providing such benefits) there is 
                a substantial connection between such battery 
                or cruelty and the need for the benefits to be 
                provided; and
                  (B) who meets the requirement of subparagraph 
                (B) of paragraph (1); or
          (4) an alien who has been granted nonimmigrant status 
        under section 101(a)(15)(T) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(T)) or who has a 
        pending application that sets forth a prima facie case 
        for eligibility for such nonimmigrant status.
This subsection shall not apply to an alien during any period 
in which the individual responsible for such battery or cruelty 
resides in the same household or family eligibility unit as the 
individual subjected to such battery or cruelty.
          
  After consultation with the Secretaries of Health and Human 
Services, Agriculture, and Housing and Urban Development, the 
Commissioner of Social Security, and with the heads of such 
Federal agencies administering benefits as the Attorney General 
considers appropriate, the Attorney General shall issue 
guidance (in the Attorney General's sole and unreviewable 
discretion) for purposes of this subsection and section 421(f), 
concerning the meaning of the terms ``battery'' and ``extreme 
cruelty'', and the standards and methods to be used for 
determining whether a substantial connection exists between 
battery or cruelty suffered and an individual's need for 
benefits under a specific Federal, State, or local program.

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                       PUBLIC HEALTH SERVICE ACT

TITLE I--SHORT TITLE AND DEFINITIONS

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                              definitions

  Sec. 2. When used in this Act--
  (a) The term ``Service'' means the Public Health Service;
  (b) The term ``Surgeon General'' means the Surgeon General of 
the Public Health Service;
  (c) Unless the context otherwise requires, the term 
``Secretary'' means the Secretary of Health and Human Services;
  (d) The term ``regulations'', except when otherwise 
specified, means rules and regulations made by the Surgeon 
General with the approval of the Secretary;
  (e) The term ``executive department'' means any executive 
department, agency, or independent establishment of the United 
States or any corporation wholly owned by the United States;
  (f) Except as provided in sections 314(g)(4)(B), 318(c)(1), 
331(h)(3), 355(5), 361(d), 701(9), 1002(c), 1401(13), and 
1531(1), the term ``State'' includes, in addition to the 
several States, only the District of Columbia, Guam, the 
Commonwealth of Puerto Rico, the Northern Mariana Islands, the 
Virgin Islands, American Samoa, [and the Trust Territory of the 
Pacific Islands] the Federated States of Micronesia, the 
Republic of the Marshall Islands, and the Republic of Palau.
  (g) The term ``possession'' includes, among other 
possessions, Puerto Rico and the Virgin Islands;
  (i) The term ``vessel'' includes every description of 
watercraft or other artificial contrivance used, or capable of 
being used, as a means of transportation on water, exclusive of 
aircraft and amphibious contrivances;
  (j) The term ``habit-forming narcotic drug'' or ``narcotic'' 
means opium and coca leaves and the several alkaloids derived 
therefrom, the best known of these alkaloids being morphia, 
heroin, and codeine, obtained from opium, and cocaine derived 
from the coca plant; all compounds, salts, preparations, or 
other derivatives obtained either from the raw material or from 
the various alkaloids; Indian hemp and its various derivatives, 
compounds, and preparations, and peyote in its various forms; 
isonipecaine and its derivatives, compounds, salts and 
preparations; opiates (as defined in section 3228(f) of the 
Internal Revenue Code);
  (k) The term ``addict'' means any person who habitually uses 
any habit-forming narcotic drugs so as to endanger the public 
morals, health, safety, or welfare, or who is or has been so 
far addicted to the use of such habit-forming narcotic drugs as 
to have lost the power of self-control with reference to his 
addiction;
  (l) The term ``psychiatric disorders'' includes diseases of 
the nervous system which affect mental health;
  (m) The term ``State mental health authority'' means the 
State health authority, except that, in the case of any State 
in which there is a single State agency, other than the State 
health authority, charged with responsibility for administering 
the mental health program of the State, it means such other 
State agency;
  (n) The term ``heart diseases'' means diseases of the heart 
and circulation;
  (o) The term ``dental diseases and conditions'' means 
diseases and conditions affecting teeth and their supporting 
structures, and other related diseases of the mouth;
  (p) The term ``uniformed service'' means the Army, Navy, Air 
Force, Marine Corps, Coast Guard, Public Health Service, or 
Coast and Geodetic Survey; and
  (q) The term ``drug dependent person'' means a person who is 
using a controlled substance (as defined in section 102 of the 
Controlled Substances Act) and who is in a state of psychic or 
physical dependence, or both, arising from the use of that 
substance on a continuous basis. Drug dependence is 
characterized by behavioral and other responses which include a 
strong compulsion to take the substance on a continuous basis 
in order to experience its psychic effects or to avoid the 
discomfort caused by its absence.

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