To provide for an increase of $250 in benefits under certain Federal cash benefit programs for one month in 2010 to compensate for the lack of a cost-of-living adjustment for that year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restoring the Social Security COLA 
Act''.

SEC. 2. INCREASE IN MONTHLY CASH BENEFIT FOR ONE MONTH PAYABLE IN 2010.

    (a) In General.--Except as provided in this section, each 
individual who is entitled to a monthly cash benefit under a covered 
Federal cash benefit program (as defined in subsection (b)) for the 
month in which this Act is enacted and is also entitled to such benefit 
for the applicable increase month (as defined in subsection (c)) shall 
be entitled to an increase in such monthly cash benefit for the 
applicable increase month in the amount of $250.
    (b) Covered Federal Cash Benefit Program.--For purposes of this 
section, the term ``covered Federal cash benefit program'' means a 
Federal program providing--
            (1) Social Security benefits (as defined in section 86(d) 
        of the Internal Revenue Code of 1986 (without regard to 
        paragraph (3) thereof)),
            (2) benefits under chapter 11, 13, or 15 of title 38, 
        United States Code, or
            (3) benefits under chapter 83 or 84 of title 5, United 
        States Code.
    (c) Applicable Increase Month.--For purposes of this section, the 
term ``applicable increase month'' means the first month beginning 
after the earlier of--
            (1) 120 days after the date of the enactment of this Act, 
        or
            (2) November 30, 2010.
    (d) Restriction of Increase to One Month.--Nothing in this section 
shall affect the amount of a monthly cash benefit under any Federal 
cash benefit program for any month other than the applicable increase 
month.
    (e) Notice.--Not later than the date of the monthly cash benefit to 
each individual which reflects the benefit increase under this section, 
the Secretary of the Treasury shall issue to such individual a written 
notice which includes the following statement: ``Your monthly cash 
benefit for ______ reflects a one-time increase in the monthly benefit 
for that month of $250 which is in lieu of an annual cost-of-living 
increase in benefits for 2010.'', with the blank space therein being 
filled with a reference to the calendar month which is the applicable 
increase month.
    (f) Simultaneous Entitlements.--In any case in which an individual 
is entitled to 2 or more monthly cash benefits under a covered Federal 
cash benefit program for the applicable increase month, the increase 
provided in subsection (a) shall apply to the total amount of such 
benefits for the applicable increase month, after application of any 
provision under such program providing for coordination of multiple 
benefits for any month, in lieu of the amount of each benefit which is 
so payable.
    (g) Effect on Family Maximums.--The amount of the increase in 
monthly cash benefits provided under subsection (a) in connection with 
a covered Federal cash benefit program shall be disregarded in 
determining reductions under such program in benefits under any 
provision under such program providing for reductions in benefits based 
on the same work record or in connection with family membership.
    (h) Increase To Be Disregarded for Purposes of All Federal and 
Federally Assisted Programs.--
            (1) In general.--The increase under subsection (a) shall 
        not be regarded as income and shall not be regarded as a 
        resource for the applicable increase month and the following 9 
        months, for purposes of determining the eligibility of the 
        recipient (or the recipient's spouse or family) for benefits or 
        assistance, or the amount or extent of benefits or assistance, 
        under any Federal program or under any State or local program 
        financed in whole or in part with Federal funds.
            (2) Federal retirement.--The increase under subsection (a) 
        shall not be taken into account--
                    (A) for purposes of applying section 8340(g) of 
                title 5, United States Code; or
                    (B) for purposes of any computation under section 
                8342(e) or 8424(f) of such title.
    (i) Increase Not Considered Income for Purposes of Taxation.--The 
increase under subsection (a) shall not be considered as gross income 
for purposes of the Internal Revenue Code of 1986.
    (j) Benefits Not Otherwise Payable.--Nothing in this section shall 
be construed to provide, in connection with the increase under this 
section of any monthly cash benefit under a covered Federal cash 
benefit program, for a payment of any amount of such monthly cash 
benefit to any individual if--
            (1) such monthly cash benefit is not otherwise payable or 
        is suspended or reduced by reason of--
                    (A) confinement of the individual in a jail, 
                prison, or other penal institution or correctional 
                facility, confinement of the individual in an 
                institution at public expense, flight by the individual 
                to avoid criminal prosecution or custody or confinement 
                after conviction of a crime, or violation by the 
                individual of a condition of probation or parole, or
                    (B) failure of the individual to make child support 
                payments required under applicable law, or
            (2) such individual is an alien who is not lawfully present 
        in the United States.

SEC. 3. FUNDING.

    (a) In General.--Effective February 1, 2010, of the unobligated 
balance of the discretionary appropriations made available by division 
A of the American Recovery and Reinvestment Act of 2009 (Public Law 
111-5), there is rescinded the amount determined by the Director of the 
Office of Management and Budget to be required to offset the increase 
in spending resulting from the provisions of section 2.
    (b) Application.--The rescission made by subsection (a) shall be 
applied proportionately--
            (1) to each discretionary account; and
            (2) within each such account, to each program, project, and 
        activity (with programs, projects, and activities as delineated 
        in the appropriation Act or accompanying reports for the 
        relevant fiscal year covering such account, or for accounts not 
        included in an appropriation Act, as delineated in the most 
        recently submitted President's budget).
    (c) OMB Report.--Not later than March 1, 2010, the Director of the 
Office of Management and Budget shall submit to the House of 
Representatives and the Senate a report specifying the reductions made 
to each account, program, project, and activity pursuant to this 
section.

Summary: Restoring the Social Security COLA Act - Authorizes an increase of $250 in Social Security, certain veterans, Civil Service Retirement (CSRS), and Federal Employees Retirement (FERS) benefits for one month in 2010 to compensate for the lack of a cost-of-living adjustment for that year. Rescinds the unobligated balance of the discretionary appropriations made available by division A of the American Recovery and Reinvestment Act of 2009 in an amount determined by the Director of the Office of Management and Budget (OMB) to be required to offset the increase in spending resulting from such increase.