U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

59–012 2007

110th Congress, 1st Session – – – – – – – – – – – – – House Document 110–18 

A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL 

YEAR 2008 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

A REQUEST TO CANCEL $3.1 BILLION OF FUNDING FROM LOWERPRIORITY FEDERAL PROGRAMS AND EXCESS FUNDS—RECEIVED 

MARCH 12, 2007 

MARCH 12, 2007.—Message and accompanying papers referred to the 

Committee on Appropriations and ordered to be printed 


jcorcoran on PROD1PC62 with REPORTSE:\Seals\Congress.#13

jcorcoran on PROD1PC62 with REPORTS
(1) 

THE WHITE HOUSE, 

Washington, March 9, 2007. 

Hon. NANCY PELOSI, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MADAM SPEAKER: I ask the Congress to consider the enclosed FY 2007 request to cancel $3.1 billion of funding from lowerpriority Federal programs and excess funds. This request would offset fully the funds needed to address the $3.1 billion FY 2007 funding shortfall for the Department of Defense to implement the recommendations of the 2005 Base Realignment and Closure Commission. The proposed cancellations would affect the Departments of 

Agriculture, Commerce, Education, Energy, Health and Human 

Services, Housing and Urban Development, the Interior, and 

Transportation, as well as the Corps of Engineers. 

The details of this request are set forth in the enclosed letter 

from the Director of the Office of Management and Budget. 

Sincerely, 

GEORGE W. BUSH. 


jcorcoran on PROD1PC62 with REPORTS

jcorcoran on PROD1PC62 with REPORTS
(3) 

[Estimate No. 2, 110th Cong., 1st Sess.] 

EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET, 

Washington, DC, March 9, 2007. 

The PRESIDENT, The White House. 

Submitted for your consideration is an FY 2007 request to cancel 

$3.1 billion of funding from lower-priority Federal programs and 

excess funds. These proposals would offset fully funds needed to 

address the $3.1 billion FY 2007 funding shortfall for the Department of Defense (DOD) to implement the recommendations of the 

2005 Base Realignment and Closure (BRAC) Commission. These 

funds are necessary for DOD to continue scheduled redeployments 

of military personnel and their families from overseas stations to 

the United States and support the training, mobilization and deployment of military forces in support of the Global War on Terror. 

In addition, these funds are required to maintain the legislated 

schedule for BRAC realignments and closures, which is important 

to communities that have already made specific plans and commitments. 

As described below and in more detail in the enclosures, the cancellation proposals include the following: 

Department of Agriculture 

$245.3 million from the Department of Agriculture, which includes $39.6 million from the Rural Business Enterprise Grants of 

the Rural Business and Cooperative Service; $50.0 million from the 

Foreign Agricultural Service Trade Adjustment Assistance; $130.0 

million from the Hatch Act formula grant program; and $25.7 million from the High Energy Cost Grants program. 

Department of Commerce 

• $79.1 million from the Advanced Technology Program. 

Department of Education 

• $891.7 million from the Department of Education, which includes $65.0 million to eliminate the Leveraging Educational Assistance Partnership program; $381.0 million to reduce funding for 

Career and Technical Education State Grants; $104.8 million to 

eliminate Tech-Prep State Grants; $272.3 million to eliminate the 

Enhancing Education Through Technology State Grants program; 

and $68.7 million to reduce funding for Even Start. 

Department of Energy 

• $200.0 million of excess funding from the Environmental Management program. 


jcorcoran on PROD1PC62 with REPORTS
4 

Department of Health and Human Services 

• $118.0 million from the Centers for Disease Control and Prevention, which includes $68.0 million from a duplicative block 

grant and $50.0 million from buildings and facilities activities. 

Department of Housing and Urban Development 

• $740.0 million of excess funding from the Community Development Block Grant program. 

Department of the Interior 

• $77.3 million of excess funding from the Department of the Interior, which includes $49.3 million from the Bureau of Indian Affairs’ Education Construction program and nearly $28.0 million 

from the Land and Water Conservation Fund State Grants program. 

Department of Transportation 

• $677.0 million from the Department of Transportation, which 

includes $121.0 million from Operating Subsidy Grants to the National Railroad Passenger Corporation and $272.0 million from 

Capital Grants to the National Railroad Passenger Corporation. 

Also included is a request to cancel $284.0 million of available contract authority from the Airport Improvement Program. 

Corps of Engineers—Civil Works 

• $50.0 million from lower-priority programs in the Corps of Engineers Investigations account. 

Recommendation 

I have carefully reviewed these proposals and am satisfied that 

they are necessary at this time. Therefore, I join the heads of the 

affected departments and agencies in recommending that you 

transmit this request to the Congress. 

Sincerely, 

ROB PORTMAN. 

Enclosures. 


jcorcoran on PROD1PC62 with REPORTS
5 

DEPARTMENT OF AGRICULTURE 

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION

SERVICE

RESEARCH AND EDUCATION ACTIVITIES

Of the funds made available under this heading pursuant to Public Law 110–5, $130,000,000 are cancelled. 

The proposal would cancel $130.0 million from the Hatch Act formula grant program, which provides funding to land grant universities. While Public Law 110–5 eliminated $166 million of earmarks, it increased the Hatch Act formula grant by $146 million 

(82 percent over the President’s FY 2007 Budget request). The Administration has consistently emphasized that funding through 

peer-reviewed competitive research programs generates the highest 

quality research, and therefore believes that providing significant 

amounts of additional funding to statutorily-derived formula programs is not the most effective use of taxpayer dollars. 

DEPARTMENT OF AGRICULTURE 

RURAL DEVELOPMENT PROGRAMS

RURAL COMMUNITY ADVANCEMENT PROGRAM

Of the funds made available under this heading pursuant to Public Law 110–5, $39,600,000 are cancelled. 

The proposal would cancel $39.6 million from the Rural Business 

Enterprise Grants of the Department of Agriculture’s (USDA’s) 

Rural Business and Cooperative Service. The program provides 

grants to public bodies, nonprofits, and tribal groups to support development of small businesses in rural communities. The proposed 

cancellation would eliminate funding for a program that is duplicative of many other grant programs within USDA and the Federal 

Government. 

DEPARTMENT OF AGRICULTURE 

RURAL UTILITIES SERVICE

HIGH ENERGY COST GRANTS

Of the funds made available under this heading pursuant to Public Law 110–5, $25,740,000 are cancelled. 

The proposal would cancel $25.7 million from the High Energy 

Cost Grants program of the Department of Agriculture’s Rural 

Utilities Service (RUS). The program provides grants for areas 

where the cost to deliver energy is significantly higher than the national average. The proposed cancellation is possible because there 

is nearly $18 million in carryover balances to cover needs in FY 

2007. In addition, those eligible for grants are also eligible for lowcost electric loans through RUS. 


jcorcoran on PROD1PC62 with REPORTS
6 

DEPARTMENT OF AGRICULTURE 

FOREIGN AGRICULTURAL SERVICE

TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Of the funds made available for fiscal year 2007 in section 298 

of Title II of the Trade Act of 1974, as amended by Public Law 107–

210, $50,000,000 are cancelled. 

The proposal would cancel $50.0 million from the Foreign Agricultural Service Trade Adjustment Assistance (TAA) for Farmers 

program. The TAA for Farmers program provides technical and financial assistance for agricultural producers and fishermen who 

suffer lower prices due to imports. The proposed cancellation is possible because applications for TAA for Farmers have fallen drastically below expected levels. 

DEPARTMENT OF COMMERCE 

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

INDUSTRIAL TECHNOLOGY SERVICES

Of the funds made available under this heading pursuant to Public Law 110–5, $79,077,650 are cancelled. 

The proposal would cancel $79.1 million from the Advanced 

Technology Program (ATP). No funding for new starts was provided in FY 2006, and initial appropriations action for FY 2007 

would have provided no further funding for the program. ATP is 

a grant program for businesses that was intended to develop new 

technologies for commercial use. Given the growth of venture capital and other financing sources for high-tech projects, the program 

is no longer warranted in today’s research and development environment. Large shares of ATP funding have gone to major corporations, and past Government Accountability Office studies found 

that projects often have been similar to those conducted by firms 

not receiving such subsidies. ATP subsidizes research that should 

be funded by private industry, which has the means and incentive 

for these research investments. 

DEPARTMENT OF EDUCATION 

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

EDUCATION FOR THE DISADVANTAGED

Of the funds made available under this heading pursuant to Public Law 110–5, $68,700,000 are cancelled. 

Of the $7.2 billion made available July 1, 2007 in this account, 

$68.7 million would be cancelled from the Even Start program. Sufficient funds would remain to fund Even Start continuation 

awards. 


jcorcoran on PROD1PC62 with REPORTS
7 

DEPARTMENT OF EDUCATION 

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

SCHOOL IMPROVEMENT PROGRAMS

Of the funds made available under this heading pursuant to Public Law 110–5, $272,250,000 are cancelled. 

The proposal would cancel $272.3 million from this account to 

eliminate the Enhancing Education Through Technology State 

Grants program. This program supports funding for States and 

local school districts to use technology to improve instruction and 

student learning. While educational technology may have a positive 

impact on student achievement, schools can use other Education 

program funding to support technology uses, including Title I 

Grants to Local Educational Agencies and Teacher Quality State 

Grants. This cancellation is consistent with proposals to terminate 

this program in the President’s FY 2007 and FY 2008 Budgets. 

DEPARTMENT OF EDUCATION 

OFFICE OF VOCATIONAL AND ADULT EDUCATION

VOCATIONAL AND ADULT EDUCATION

Of the funds made available under this heading pursuant to Public Law 110–5, $485,755,000 are cancelled. 

Of the $485.8 million proposed for cancellation, $381.0 million 

would come from Career and Technical Education (CTE) State 

Grants, which was funded at $1.2 billion in FY 2006. CTE State 

Grants provides grants to States to support high schools and community college activities related to vocational and technical education. The proposed cancellation is possible because States have 

already received a $791 million advance appropriation for expenses 

in the 2007–2008 school year. In addition, $104.8 million would be cancelled for Tech-Prep State Grants, which was funded at $105 million in FY 2006. The 

Tech-Prep State Grants program supports partnerships that develop structural links between secondary schools and postsecondary 

institutions to integrate academic and vocational education. The 

populations served and services provided under this program are 

duplicative of the much larger Career and Technical Education 

State Grants program. 

DEPEPARTMENT OF EDUCATION 

OFFICE OF FEDERAL STUDENT AID

STUDENT FINANCIAL ASSISTANCE

Of the funds made available under this heading pursuant to Public Law 110–5, $64,986,570 are cancelled. 

The proposal would cancel $65.0 million from the Student Financial Assistance account to eliminate the Leveraging Educational 

Assistance Partnership program. The Performance Assessment 

Rating Tool analysis determined this program had not demVerDate Aug 31 2005 06:10 Mar 13, 2007 Jkt 059012 PO 00000 Frm 00009 Fmt 6602 Sfmt 6602 E:\HR\OC\HD018.XXX HD018

jcorcoran on PROD1PC62 with REPORTS
8 

onstrated results. State grant levels have expanded greatly over 

the years, and most States significantly exceed the statutory 

matching requirements. State matching funds in the academic year 

1999–2000, for example, totaled nearly $1 billion, or more than $950 million over the level generated by a dollar-for-dollar match. 

The program would be terminated, consistent with proposals in the 

President’s FY 2007 and FY 2008 Budgets. 

DEPARTMENT OF ENERGY 

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

DEFENSE ENVIRONMENTAL CLEANUP

Of the funds made available under this heading pursuant to Public Law 110–5, $200,000,000 are cancelled. 

The proposal would cancel $200.0 million from the Environmental Management program. The program’s mission is to clean up 

radioactive and hazardous waste at Department of Energy sites 

that supported the development and production of nuclear weapons. The program’s FY 2007 plans reflect significantly reduced requirements due to the completion of the Rocky Flats site (Colorado) 

in FY 2006. The additional resources provided by P.L. 110–5 cannot be effectively spent in the remaining months of FY 2007. 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

Of the funds made available under this heading pursuant to Public Law 110–5, $118,000,000 are cancelled. 

Of the $118.0 million proposed for cancellation, $68.0 million 

would come from the Disease Control, Research, and Training account because it duplicates existing categorical grants, and does 

not have performance metrics. This proposal is consistent with the 

President’s FY 2007 and FY 2008 Budgets. Existing categorical 

grants will continue to support chronic disease prevention activities 

throughout the Nation. 

In addition, $50.0 million would be cancelled from the Centers 

for Disease Control and Prevention (CDC) buildings and facilities, 

to allow for a more sustainable funding path for this activity. CDC 

will still be able to make substantial improvements to agency facilities and will be able to support routine maintenance and improvement activities within available resources. 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

COMMUNITY PLANNING AND DEVELOPMENT

COMMUNITY DEVELOPMENT FUND

Of the funds made available under this heading pursuant to Public Law 110–5, $740,000 are cancelled. 


jcorcoran on PROD1PC62 with REPORTS
9 

The proposal would cancel $740.0 million from the Community 

Development Block Grant (CDBG) program. This program was proposed to be reduced in the President’s FY 2007 and FY 2008 Budgets, and P.L. 110–5 provides funding significantly above these requests. The current CDBG program is not well-targeted and program results have not been adequately demonstrated or reported. 

The Administration continues to support CDBG legislative reforms, 

similar to the CDBG Reform Act, which was transmitted to the 

Congress in May 2006. 

DEPARTMENT OF THE INTERIOR 

BUREAU OF INDIAN AFFAIRS

CONSTRUCTION

Of the funds made available under this heading pursuant to Public Law 110–5, $49,346,000 are cancelled. 

The proposal would cancel $49.3 million from the Bureau of Indian Affairs (BIA) Education Construction program. The program 

provides safe and functional schools and dormitories through replacement of buildings or improvement and repair projects. Approximately 46,000 Indian students attend 184 BIA-funded schools 

in Indian communities located in 23 States. The proposal cancels 

funding provided by the Congress above the President’s FY 2007 

Budget request and is not identified with specific projects. The proposed cancellation would allow BIA time to catch up on previously 

funded school construction projects. The program has had difficulty 

absorbing funding increases and managing projects during the past 

several years. 

DEPARTMENT OF THE INTERIOR 

NATIONAL PARK SERVICE

LAND ACQUISITION AND STATE ASSISTANCE

Of the funds made available under this heading pursuant to Public Law 110–5, $27,995,000 are permanently cancelled. 

The proposal would cancel $28.0 million from the Land and 

Water Conservation Fund State grants program in the National 

Park Service. The program provides grants to States for land acquisition and improvements to State and local parks. No funds for this 

program were requested in the FYs 2006, 2007, or 2008 President’s 

Budgets on the grounds that paying to improve State and local 

parks are decisions better left to State and local taxpayers. A Program Assessment Rating Tool review found that this grant program had not been able to measure performance or demonstrate results. The proposed cancellation would not affect funds to administer program or prior-year balances that are not obligated, but 

have been allocated to the States. 


jcorcoran on PROD1PC62 with REPORTS
10 

DEPARTMENT OF TRANSPORTATION 

FEDERAL RAILROAD ADMINISTRATION

OPERATING SUBSIDY GRANTS TO THE NATIONAL RAILROAD PASSENGER

CORPORATION

Of the funds made available under this heading pursuant to Public Law 110–5, $121,000,000 are cancelled. 

This proposal would cancel $121.0 million from the Operating 

Subsidy Grants to the National Railroad Passenger Corporation. 

Amtrak carried forward more than $200 million in operating funds 

into FY 2007, which is an unusually large amount. With this available balance, Amtrak should have adequate working capital reserves so that its actual FY 2007 operating budget would not be 

substantially affected by a cancellation. This proposal would further an Administration reform proposal to force the railroad to operate more like a business. 

DEPARTMENT OF TRANSPORTATION 

FEDERAL RAILROAD ADMINISTRATION

CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL RAILROAD

PASSENGER CORPORATION

Of the funds made available under this heading pursuant to Public Law 110–5, $272,000,000 are cancelled. 

This proposal would cancel $272.0 million from the Capital 

Grants to the National Railroad Passenger Corporation. In FY 

2007, Amtrak received an appropriation of $772 million for capital 

expenses and debt service payments, which incorrectly implies that 

repaying Amtrak’s debt service is a Federal responsibility. There is 

no obligation by the Federal Government to fund this expense, particularly because Amtrak is a private corporation that independently decided to take on its debt. This proposal would eliminate 

Amtrak’s set-aside for debt service, furthering an Administration 

reform proposal and forcing the railroad to operate more like a 

business. 

DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION

GRANTS-IN-AID FOR AIRPORTS

(LIQUIDATION OF CONTRACT AUTHORITY)

(LIMITATION ON OBLIGATIONS)

(AIRPORT AND AIRWAY TRUST FUND)

Notwithstanding section 101 of P.L. 110–5, the limitation on obligations under this heading shall not exceed $3,416,000,000. 


jcorcoran on PROD1PC62 with REPORTS
11 

GRANTS-IN-AID FOR AIRPORTS

(AIRPORT AND AIRWAY TRUST FUND)

(CANCELLATION OF CONTRACT AUTHORITY)

Of the amounts authorized for the fiscal year ending September 

30, 2007 and prior years under sections 48103 and 48112 of title 

49, United States Code, $284,000,000 are cancelled. 

The proposal cancels $284.0 million of available contract authority from the Airport Improvement Program (AlP) and sets the obligation limitation at $3,416 million for 2007, which is a reduction 

of $98.5 million from the level provided in P.L. 110–5. AlP provides 

grants to airports to address capacity, safety, and security needs. 

This cancels a total of $284 million in contract authority, comprised 

of $185.5 million in contract authority in excess of the current obligation limitation provided in P.L. 110–5 as the bill did not cancel 

this available contract authority. This also cancels $98.5 million in 

contract authority as well as reduces the obligation limitation by 

the same amount. The obligation limitation provided in P.L. 110–

5 of $3.5 billion was $765 million above the President’s Request for 

2007. 

CORPS OF ENGINEERS—CIVIL WORKS 

INVESTIGATIONS

Of the funds made available under this heading pursuant to Public Law 110–5, $50,000,000 are cancelled. 

The proposal would cancel $50.0 million from the Corps of Engineers Investigations account. This account funds planning, engineering and design, data collection, interagency coordination and 

research. This proposal would allow the Administration to fund 

only priority, high-performing projects and not lower-performing 

projects that increase the Corps backlog of projects awaiting construction. 

Æ 


jcorcoran on PROD1PC62 with REPORTS