34–803 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–107 

MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS 

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2007, 

AND FOR OTHER PURPOSES 

APRIL 24, 2007.—Ordered to be printed 

Mr. OBEY, from the Committee on Conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 1591] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the Senate to the bill (H.R. 

1591), ‘‘making emergency supplemental appropriations for the fiscal year ending September 30, 2007, and for other purposes’’, having met, after full and free conference, have agreed to recommend 

and do recommend to their respective Houses as follows: 

That the House recede from its disagreement to the amendment of the Senate, and agree to the same with an amendment, as 

follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert: 

That the following sums are appropriated, out of any money in the 

Treasury not otherwise appropriated, for the fiscal year ending September 30, 2007, and for other purposes, namely: 


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TITLE I 

GLOBAL WAR ON TERROR SUPPLEMENTAL 

APPROPRIATIONS 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE 

FOREIGN AGRICULTURAL SERVICE

PUBLIC LAW 480 TITLE II GRANTS

For an additional amount for ‘‘Public Law 480 Title II Grants’’, 

during the current fiscal year, not otherwise recoverable, and unrecovered prior years’ costs, including interest thereon, under the Agricultural Trade Development and Assistance Act of 1954, for commodities supplied in connection with dispositions abroad under title 

II of said Act, $460,000,000, to remain available until expended. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 1101. There is hereby appropriated $40,000,000 to reimburse the Commodity Credit Corporation for the release of eligible 

commodities under section 302(f)(2)(A) of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1): Provided, That any such funds 

made available to reimburse the Commodity Credit Corporation 

shall only be used to replenish the Bill Emerson Humanitarian 

Trust. 

CHAPTER 2 

DEPARTMENT OF JUSTICE 

LEGAL ACTIVITIES

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

For an additional amount for ‘‘Salaries and Expenses, General 

Legal Activities’’, $1,648,000, to remain available until September 

30, 2008. 

SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

For an additional amount for ‘‘Salaries and Expenses, United 

States Attorneys’’, $5,000,000, to remain available until September 

30, 2008. 

UNITED STATES MARSHALS SERVICE

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$6,450,000, to remain available until September 30, 2008. 

NATIONAL SECURITY DIVISION

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$1,736,000, to remain available until September 30, 2008. 


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FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$268,000,000, of which $258,000,000 is to remain available until 

September 30, 2008 and $10,000,000 is to remain available until expended to implement corrective actions in response to the findings 

and recommendations in the Department of Justice Office of Inspector General report entitled, ‘‘A Review of the Federal Bureau of Investigation’s Use of National Security Letters’’, of which $500,000 

shall be transferred to and merged with ‘‘Department of Justice, Office of the Inspector General’’. 

DRUG ENFORCEMENT ADMINISTRATION

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$12,166,000, to remain available until September 30, 2008. 

BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$4,000,000, to remain available until September 30, 2008. 

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$17,000,000, to remain available until September 30, 2008. 

CHAPTER 3 

DEPARTMENT OF DEFENSE—MILITARY 

MILITARY PERSONNEL 

MILITARY PERSONNEL, ARMY

For an additional amount for ‘‘Military Personnel, Army’’, 

$8,853,350,000. 

MILITARY PERSONNEL, NAVY

For an additional amount for ‘‘Military Personnel, Navy’’, 

$1,100,410,000. 

MILITARY PERSONNEL, MARINE CORPS

For an additional amount for ‘‘Military Personnel, Marine 

Corps’’, $1,495,827,000. 

MILITARY PERSONNEL, AIR FORCE

For an additional amount for ‘‘Military Personnel, Air Force’’, 

$1,218,587,000. 


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RESERVE PERSONNEL, ARMY

For an additional amount for ‘‘Reserve Personnel, Army’’, 

$147,244,000. 

RESERVE PERSONNEL, NAVY

For an additional amount for ‘‘Reserve Personnel, Navy’’, 

$86,023,000. 

RESERVE PERSONNEL, MARINE CORPS

For an additional amount for ‘‘Reserve Personnel, Marine 

Corps’’, $5,660,000. 

RESERVE PERSONNEL, AIR FORCE

For an additional amount for ‘‘Reserve Personnel, Air Force’’, 

$11,573,000. 

NATIONAL GUARD PERSONNEL, ARMY

For an additional amount for ‘‘National Guard Personnel, 

Army’’, $545,286,000. 

NATIONAL GUARD PERSONNEL, AIR FORCE

For an additional amount for ‘‘National Guard Personnel, Air 

Force’’, $44,033,000. 

OPERATION AND MAINTENANCE 

OPERATION AND MAINTENANCE, ARMY

For an additional amount for ‘‘Operation and Maintenance, 

Army’’, $20,373,379,000. 

OPERATION AND MAINTENANCE, NAVY

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Operation and Maintenance, 

Navy’’, $4,676,670,000, of which up to $120,293,000 shall be transferred to Coast Guard, ‘‘Operating Expenses’’, for reimbursement for 

activities which support activities requested by the Navy. 

OPERATION AND MAINTENANCE, MARINE CORPS

For an additional amount for ‘‘Operation and Maintenance, 

Marine Corps’’, $1,146,594,000. 

OPERATION AND MAINTENANCE, AIR FORCE

For an additional amount for ‘‘Operation and Maintenance, Air 

Force’’, $6,650,881,000. 

OPERATION AND MAINTENANCE, DEFENSE-WIDE

For an additional amount for ‘‘Operation and Maintenance, Defense-Wide’’, $2,714,487,000, of which—


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(1) not to exceed $25,000,000 may be used for the Combatant Commander Initiative Fund, to be used in support of Operation Iraqi Freedom and Operation Enduring Freedom; and 

(2) not to exceed $200,000,000, to remain available until expended, may be used for payments to reimburse Pakistan, Jordan, and other key cooperating nations, for logistical, military, 

and other support provided to United States military operations, notwithstanding any other provision of law: Provided, 

That such payments may be made in such amounts as the Secretary of Defense, with the concurrence of the Secretary of State, 

and in consultation with the Director of the Office of Management and Budget, may determine, in his discretion, based on 

documentation determined by the Secretary of Defense to adequately account for the support provided, and such determination is final and conclusive upon the accounting officers of the 

United States, and 15 days following notification to the appropriate congressional committees: Provided further, That the Secretary of Defense shall provide quarterly reports to the congressional defense committees on the use of funds provided in this 

paragraph. 

OPERATION AND MAINTENANCE, ARMY RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Army Reserve’’, $74,049,000. 

OPERATION AND MAINTENANCE, NAVY RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Navy Reserve’’, $111,066,000. 

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For an additional amount for ‘‘Operation and Maintenance, 

Marine Corps Reserve’’, $13,591,000. 

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For an additional amount for ‘‘Operation and Maintenance, Air 

Force Reserve’’, $10,160,000. 

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For an additional amount for ‘‘Operation and Maintenance, 

Army National Guard’’, $83,569,000. 

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For an additional amount for ‘‘Operation and Maintenance, Air 

National Guard’’, $38,429,000. 

AFGHANISTAN SECURITY FORCES FUND

For an additional amount for ‘‘Afghanistan Security Forces 

Fund’’, $5,906,400,000, to remain available until September 30, 

2008. 


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IRAQ SECURITY FORCES FUND

For an additional amount for ‘‘Iraq Security Forces Fund’’, 

$3,842,300,000, to remain available until September 30, 2008. 

IRAQ FREEDOM FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Iraq Freedom Fund’’, 

$355,600,000, to remain available for transfer until September 30, 

2008: Provided, That up to $50,000,000 may be obligated and expended for purposes of the Task Force to Improve Business and Stability Operations in Iraq. 

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

For an additional amount for ‘‘Joint Improvised Explosive Device Defeat Fund’’, $2,432,800,000, to remain available until September 30, 2009. 

STRATEGIC RESERVE READINESS FUND

(INCLUDING TRANSFER OF FUNDS)

In addition to amounts provided in this or any other Act, for 

training, operations, repair of equipment, purchases of equipment, 

and other expenses related to improving the readiness of non-deployed United States military forces, $2,000,000,000, to remain 

available until September 30, 2009; of which $1,000,000,000 shall 

be transferred to ‘‘National Guard and Reserve Equipment’’ for the 

purchase of equipment for the Army National Guard; and of which 

$1,000,000,000 shall be transferred by the Secretary of Defense only 

to appropriations for military personnel, operation and maintenance, procurement, and defense working capital funds to accomplish the purposes provided herein: Provided, That the funds transferred shall be merged with and shall be available for the same purposes and for the same time period as the appropriation to which 

transferred: Provided further, That the Secretary of Defense shall, 

not fewer than thirty days prior to making transfers under this authority, notify the congressional defense committees in writing of the 

details of any such transfers made pursuant to this authority: Provided further, That funds shall be transferred to the appropriation 

accounts not later than 120 days after the enactment of this Act: 

Provided further, That the transfer authority provided in this paragraph is in addition to any other transfer authority available to the 

Department of Defense: Provided further, That upon a determination that all or part of the funds transferred from this appropriation 

are not necessary for the purposes provided herein, such amounts 

may be transferred back to this appropriation. 

PROCUREMENT 

AIRCRAFT PROCUREMENT, ARMY

For an additional amount for ‘‘Aircraft Procurement, Army’’, 

$619,750,000, to remain available until September 30, 2009. 


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MISSILE PROCUREMENT, ARMY

For an additional amount for ‘‘Missile Procurement, Army’’, 

$111,473,000, to remain available until September 30, 2009. 

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, 

ARMY

For an additional amount for ‘‘Procurement of Weapons and 

Tracked Combat Vehicles, Army’’, $3,404,315,000, to remain available until September 30, 2009. 

PROCUREMENT OF AMMUNITION, ARMY

For an additional amount for ‘‘Procurement of Ammunition, 

Army’’, $681,500,000, to remain available until September 30, 2009. 

OTHER PROCUREMENT, ARMY

For an additional amount for ‘‘Other Procurement, Army’’, 

$11,076,137,000, to remain available until September 30, 2009. 

AIRCRAFT PROCUREMENT, NAVY

For an additional amount for ‘‘Aircraft Procurement, Navy’’, 

$1,090,287,000, to remain available until September 30, 2009. 

WEAPONS PROCUREMENT, NAVY

For an additional amount for ‘‘Weapons Procurement, Navy’’, 

$163,813,000, to remain available until September 30, 2009. 

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For an additional amount for ‘‘Procurement of Ammunition, 

Navy and Marine Corps’’, $159,833,000, to remain available until 

September 30, 2009. 

OTHER PROCUREMENT, NAVY

For an additional amount for ‘‘Other Procurement, Navy’’, 

$748,749,000, to remain available until September 30, 2009. 

PROCUREMENT, MARINE CORPS

For an additional amount for ‘‘Procurement, Marine Corps’’, 

$2,252,749,000, to remain available until September 30, 2009. 

AIRCRAFT PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Aircraft Procurement, Air 

Force’’, $2,106,468,000, to remain available until September 30, 

2009. 

MISSILE PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Missile Procurement, Air Force’’, 

$94,900,000, to remain available until September 30, 2009. 


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PROCUREMENT OF AMMUNITION, AIR FORCE

For an additional amount for ‘‘Procurement of Ammunition, Air 

Force’’, $6,000,000, to remain available until September 30, 2009. 

OTHER PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Other Procurement, Air Force’’, 

$2,096,200,000, to remain available until September 30, 2009. 

PROCUREMENT, DEFENSE-WIDE

For an additional amount for ‘‘Procurement, Defense-Wide’’, 

$980,050,000, to remain available until September 30, 2009. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For an additional amount for ‘‘Research, Development, Test and 

Evaluation, Army’’, $100,006,000, to remain available until September 30, 2008. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For an additional amount for ‘‘Research, Development, Test and 

Evaluation, Navy’’, $298,722,000, to remain available until September 30, 2008. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For an additional amount for ‘‘Research, Development, Test and 

Evaluation, Air Force’’, $187,176,000, to remain available until September 30, 2008. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For an additional amount for ‘‘Research, Development, Test and 

Evaluation, Defense-Wide’’, $512,804,000, to remain available until 

September 30, 2008. 

REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

For an additional amount for ‘‘Defense Working Capital 

Funds’’, $1,315,526,000. 

NATIONAL DEFENSE SEALIFT FUND

For an additional amount for ‘‘National Defense Sealift Fund’’, 

$5,000,000. 

OTHER DEPARTMENT OF DEFENSE PROGRAMS 

DEFENSE HEALTH PROGRAM

For an additional amount for ‘‘Defense Health Program’’, 

$3,251,853,000; of which $2,802,153,000 shall be for operation and 

maintenance, including $600,000,000 which shall be available for 

the treatment of Traumatic Brain Injury and Post Traumatic Stress 


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Disorder and remain available until September 30, 2008; of which 

$118,000,000 shall be for procurement, to remain available until 

September 30, 2009; and of which $331,700,000 shall be for research, development, test and evaluation, to remain available until 

September 30, 2008: Provided, That if the Secretary of Defense determines that funds made available herein for the treatment of 

Traumatic Brain Injury and Post Traumatic Stress Disorder are in 

excess to the requirements of the Department of Defense he may 

transfer amounts in excess of that requirement to the Department of 

Veterans Affairs to be available only for the same purpose. 

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

For an additional amount for ‘‘Drug Interdiction and CounterDrug Activities, Defense’’, $254,665,000, to remain available until 

expended. 

RELATED AGENCIES 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

For an additional amount for ‘‘Intelligence Community Management Account’’, $71,726,000. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1301. Appropriations provided in this chapter are available for obligation until September 30, 2007, unless otherwise provided in this chapter. 

(TRANSFER OF FUNDS)

SEC. 1302. Upon his determination that such action is necessary in the national interest, the Secretary of Defense may transfer 

between appropriations up to $3,500,000,000 of the funds made 

available to the Department of Defense in this chapter: Provided, 

That the Secretary shall notify the Congress promptly of each transfer made pursuant to the authority in this section: Provided further, 

That the authority provided in this section is in addition to any 

other transfer authority available to the Department of Defense and 

is subject to the same terms and conditions as the authority provided in section 8005 of the Department of Defense Appropriations 

Act, 2007 (Public Law 109–289; 120 Stat. 1257), except for the 

fourth proviso: Provided further, That funds previously transferred 

to the ‘‘Joint Improvised Explosive Device Defeat Fund’’ and the 

‘‘Iraq Security Forces Fund’’ under the authority of section 8005 of 

Public Law 109–289 and transferred back to their source appropriations accounts shall not be taken into account for purposes of the 

limitation on the amount of funds that may be transferred under 

section 8005. 

SEC. 1303. Funds appropriated in this chapter, or made available by the transfer of funds in or pursuant to this chapter, for intelligence activities are deemed to be specifically authorized by the 

Congress for purposes of section 504(a)(1) of the National Security 

Act of 1947 (50 U.S.C. 414(a)(1)). 

SEC. 1304. None of the funds provided in this chapter may be 

used to finance programs or activities denied by Congress in fiscal 

years 2006 or 2007 appropriations to the Department of Defense or 


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to initiate a procurement or research, development, test and evaluation new start program without prior written notification to the congressional defense committees. 

(TRANSFER OF FUNDS)

SEC. 1305. During fiscal year 2007, the Secretary of Defense may transfer not to exceed $6,300,000 of the amounts in or credited 

to the Defense Cooperation Account, pursuant to 10 U.S.C. 2608, to 

such appropriations or funds of the Department of Defense as he 

shall determine for use consistent with the purposes for which such 

funds were contributed and accepted: Provided, That such amounts 

shall be available for the same time period as the appropriation to 

which transferred: Provided further, That the Secretary shall report 

to the Congress all transfers made pursuant to this authority. 

SEC. 1306. (a) AUTHORITY TO PROVIDE SUPPORT.—Of the 

amount appropriated by this chapter under the heading, ‘‘Drug 

Interdiction and Counter-Drug Activities, Defense’’, not to exceed 

$60,000,000 may be used for support for counter-drug activities of 

the Governments of Afghanistan and Pakistan: Provided, That such 

support shall be in addition to support provided for the counterdrug activities of such Governments under any other provision of 

the law. 

(b) TYPES OF SUPPORT.— (1) Except as specified in subsection (b)(2) of this section, 

the support that may be provided under the authority in this 

section shall be limited to the types of support specified in section 1033(c)(1) of the National Defense Authorization Act for 

Fiscal Year 1998 (Public Law 105–85, as amended by Public 

Laws 106–398, 108–136, and 109–364) and conditions on the 

provision of support as contained in section 1033 shall apply 

for fiscal year 2007. 

(2) The Secretary of Defense may transfer vehicles, aircraft, 

and detection, interception, monitoring and testing equipment 

to said Governments for counter-drug activities. 

SEC. 1307. (a) From funds made available for operation and 

maintenance in this chapter to the Department of Defense, not to exceed $456,400,000 may be used, notwithstanding any other provision of law, to fund the Commanders’ Emergency Response Program, for the purpose of enabling military commanders in Iraq and 

Afghanistan to respond to urgent humanitarian relief and reconstruction requirements within their areas of responsibility by carrying out programs that will immediately assist the Iraqi and Afghan people. 

(b) QUARTERLY REPORTS.—Not later than 15 days after the end 

of each fiscal year quarter, the Secretary of Defense shall submit to 

the congressional defense committees a report regarding the source 

of funds and the allocation and use of funds during that quarter 

that were made available pursuant to the authority provided in this 

section or under any other provision of law for the purposes of the 

programs under subsection (a). 

SEC. 1308. Section 9010 of division A of Public Law 109–289 

is amended by striking ‘‘2007’’ each place it appears and inserting 

‘‘2008’’. 

SEC. 1309. During fiscal year 2007, supervision and administration costs associated with projects carried out with funds approVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00010 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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priated to ‘‘Afghanistan Security Forces Fund’’ or ‘‘Iraq Security 

Forces Fund’’ in this chapter may be obligated at the time a construction contract is awarded: Provided, That for the purpose of this 

section, supervision and administration costs include all in-house 

Government costs. 

SEC. 1310. Section 1005(c)(2) of the National Defense Authorization Act, Fiscal Year 2007 (Public Law 109–364) is amended by 

striking ‘‘$310,277,000’’ and inserting ‘‘$376,446,000’’. 

SEC. 1311. None of the funds appropriated or otherwise made 

available by this or any other Act shall be obligated or expended by 

the United States Government for a purpose as follows: 

(1) To establish any military installation or base for the 

purpose of providing for the permanent stationing of United 

States Armed Forces in Iraq. 

(2) To exercise United States control over any oil resource 

of Iraq. 

SEC. 1312. None of the funds made available in this Act may 

be used in contravention of the following laws enacted or regulations promulgated to implement the United Nations Convention 

Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (done at New York on December 10, 1984): 

(1) Section 2340A of title 18, United States Code; 

(2) Section 2242 of the Foreign Affairs Reform and Restructuring Act of 1998 (division G of Public Law 105–277; 112 Stat. 

2681–822; 8 U.S.C. 1231 note) and regulations prescribed thereto, including regulations under part 208 of title 8, Code of Federal Regulations, and part 95 of title 22, Code of Federal Regulations; and 

(3) Sections 1002 and 1003 of the Department of Defense, 

Emergency Supplemental Appropriations to Address Hurricanes 

in the Gulf of Mexico, and Pandemic Influenza Act, 2006 (Public Law 109–148). 

SEC. 1313. (a) REPORT BY SECRETARY OF DEFENSE.—Not later 

than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that contains individual transition readiness assessments by unit of Iraq and Afghan security forces. The Secretary of 

Defense shall submit to the congressional defense committees updates of the report required by this subsection every 90 days after 

the date of the submission of the report until October 1, 2008. The 

report and updates of the report required by this subsection shall 

be submitted in classified form. 

(b) REPORT BY OMB.—

(1) The Director of the Office of Management and Budget, 

in consultation with the Secretary of Defense; the Commander, 

Multi-National Security Transition Command—Iraq; and the 

Commander, Combined Security Transition Command—Afghanistan, shall submit to the congressional defense committees 

not later than 120 days after the date of the enactment of this 

Act and every 90 days thereafter a report on the proposed use 

of all funds under each of the headings ‘‘Iraq Security Forces 

Fund’’ and ‘‘Afghanistan Security Forces Fund’’ on a project-byproject basis, for which the obligation of funds is anticipated 

during the three-month period from such date, including estiVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00011 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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mates by the commanders referred to in this paragraph of the 

costs required to complete each such project. 

(2) The report required by this subsection shall include the 

following: 

(A) The use of all funds on a project-by-project basis for 

which funds appropriated under the headings referred to in 

paragraph (1) were obligated prior to the submission of the 

report, including estimates by the commanders referred to 

in paragraph (1) of the costs to complete each project. 

(B) The use of all funds on a project-by-project basis for 

which funds were appropriated under the headings referred 

to in paragraph (1) in prior appropriations Acts, or for 

which funds were made available by transfer, reprogramming, or allocation from other headings in prior appropriations Acts, including estimates by the commanders referred 

to in paragraph (1) of the costs to complete each project. 

(C) An estimated total cost to train and equip the Iraq 

and Afghan security forces, disaggregated by major program and sub-elements by force, arrayed by fiscal year. 

(c) NOTIFICATION.—The Secretary of Defense shall notify the 

congressional defense committees of any proposed new projects or 

transfers of funds between sub-activity groups in excess of 

$15,000,000 using funds appropriated by this Act under the headings ‘‘Iraq Security Forces Fund’’ and ‘‘Afghanistan Security Forces 

Fund’’. 

SEC. 1314. None of the funds appropriated or otherwise made 

available by this chapter may be obligated or expended to provide 

award fees to any defense contractor contrary to the provisions of 

section 814 of the National Defense Authorization Act, Fiscal Year 

2007 (Public Law 109–364). 

SEC. 1315. Not more than 85 percent of the funds appropriated 

in this chapter for operation and maintenance shall be available for 

obligation unless and until the Secretary of Defense submits to the 

congressional defense committees a report detailing the use of Department of Defense funded service contracts conducted in the theater of operations in support of United States military and reconstruction activities in Iraq and Afghanistan: Provided, That the report shall provide detailed information specifying the number of 

contracts and contract costs used to provide services in fiscal year 

2006, with sub-allocations by major service categories: Provided further, That the report also shall include estimates of the number of 

contracts to be executed in fiscal year 2007: Provided further, That 

the report shall include the number of contractor personnel in Iraq 

and Afghanistan funded by the Department of Defense: Provided 

further, That the report shall be submitted to the congressional defense committees not later than August 1, 2007. 

SEC. 1316. Section 1477 of title 10, United States Code, is 

amended—

(1) in subsection (a), by striking ‘‘A death gratuity’’ and inserting ‘‘Subject to subsection (d), a death gratuity’’; 

(2) by redesignating subsection (d) as subsection (e) and, in 

such subsection, by striking ‘‘If an eligible survivor dies before 

he’’ and inserting ‘‘If a person entitled to all or a portion of a 

death gratuity under subsection (a) or (d) dies before the person’’; and 


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(3) by inserting after subsection (c) the following new subsection (d): 

‘‘(d) During the period beginning on the date of the enactment 

of this subsection and ending on September 30, 2007, a person covered by section 1475 or 1476 of this title may designate another person to receive not more than 50 percent of the amount payable under 

section 1478 of this title. The designation shall indicate the percentage of the amount, to be specified only in 10 percent increments up 

to the maximum of 50 percent, that the designated person may receive. The balance of the amount of the death gratuity shall be paid 

to or for the living survivors of the person concerned in accordance 

with paragraphs (1) through (5) of subsection (a).’’. SEC. 1317. Section 9007 of Public Law 109–289 is amended by 

striking ‘‘20’’ and inserting ‘‘287’’. 

SEC. 1318. INSPECTION OF MILITARY MEDICAL TREATMENT FACILITIES, MILITARY QUARTERS HOUSING MEDICAL HOLD PERSONNEL, AND MILITARY QUARTERS HOUSING MEDICAL HOLDOVER

PERSONNEL. (a) PERIODIC INSPECTION REQUIRED.— (1) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this Act, and annually thereafter, the Secretary of Defense shall inspect each facility of the Department 

of Defense as follows: 

(A) Each military medical treatment facility. 

(B) Each military quarters housing medical hold personnel. 

(C) Each military quarters housing medical holdover 

personnel. 

(2) PURPOSE.—The purpose of an inspection under this subsection is to ensure that the facility or quarters concerned meets 

acceptable standards for the maintenance and operation of 

medical facilities, quarters housing medical hold personnel, or 

quarters housing medical holdover personnel, as applicable. 

(b) ACCEPTABLE STANDARDS.—For purposes of this section, acceptable standards for the operation and maintenance of military 

medical treatment facilities, military quarters housing medical hold 

personnel, or military quarters housing medical holdover personnel 

are each of the following: 

(1) Generally accepted standards for the accreditation of 

medical facilities, or for facilities used to quarter individuals 

with medical conditions that may require medical supervision, 

as applicable, in the United States. 

(2) Where appropriate, standards under the Americans 

with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). 

(c) ADDITIONAL INSPECTIONS ON IDENTIFIED DEFICIENCIES.—

(1) IN GENERAL.—In the event a deficiency is identified pursuant to subsection (a) at a facility or quarters described in 

paragraph (1) of that subsection—

(A) the commander of such facility or quarters, as applicable, shall submit to the Secretary a detailed plan to 

correct the deficiency; and 

(B) the Secretary shall reinspect such facility or quarters, as applicable, not less often than once every 180 days 

until the deficiency is corrected. 

(2) CONSTRUCTION WITH OTHER INSPECTIONS.—An inspection of a facility or quarters under this subsection is in addition 


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to any inspection of such facility or quarters under subsection 

(a). 

(d) REPORTS ON INSPECTIONS.—A complete copy of the report on 

each inspection conducted under subsections (a) and (c) shall be 

submitted in unclassified form to the applicable military medical 

command and to the congressional defense committees. 

(e) REPORT ON STANDARDS.—In the event no standards for the 

maintenance and operation of military medical treatment facilities, 

military quarters housing medical hold personnel, or military quarters housing medical holdover personnel exist as of the date of the 

enactment of this Act, or such standards as do exist do not meet acceptable standards for the maintenance and operation of such facilities or quarters, as the case may be, the Secretary shall, not later 

than 30 days after that date, submit to the congressional defense 

committees a report setting forth the plan of the Secretary to ensure— (1) the adoption by the Department of standards for the 

maintenance and operation of military medical facilities, military quarters housing medical hold personnel, or military quarters housing medical holdover personnel, as applicable, that 

meet— (A) acceptable standards for the maintenance and operation of such facilities or quarters, as the case may be; and 

(B) where appropriate, standards under the Americans 

with Disabilities Act of 1990; and 

(2) the comprehensive implementation of the standards 

adopted under paragraph (1) at the earliest date practicable. 

SEC. 1319. From funds made available for the ‘‘Iraq Security 

Forces Fund’’ for fiscal year 2007, up to $155,500,000 may be used, 

notwithstanding any other provision of law, to provide assistance, 

with the concurrence of the Secretary of State, to the Government of 

Iraq to support the disarmament, demobilization, and reintegration 

of militias and illegal armed groups. 

SEC. 1320. INDEPENDENT ASSESSMENT OF CAPABILITIES OF

IRAQI SECURITY FORCES. (a) IN GENERAL.—Of the amount appropriated or otherwise made available for the Department of Defense, 

$750,000 is provided to commission an independent, private-sector 

entity, which operates as a 501(c)(3) with recognized credentials and 

expertise in military affairs, to prepare an independent report assessing the following: 

(1) The readiness of the Iraqi Security Forces (ISF) to assume responsibility for maintaining the territorial integrity of 

Iraq, denying international terrorists a safe haven, and bringing greater security to Iraq’s 18 provinces in the next 12–18 

months, and bringing an end to sectarian violence to achieve 

national reconciliation. 

(2) The training; equipping; command, control and intelligence capabilities; and logistics capacity of the ISF. 

(3) The likelihood that, given the ISF’s record of preparedness to date, following years of training and equipping by U.S. 

forces, the continued support of U.S. troops will contribute to 

the readiness of the ISF to fulfill the missions outlined in subparagraph (1). 

(b) REPORT.—Not later than 120 days after passage of this Act, 

the designated private sector entity shall provide an unclassified reVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00014 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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port, with a classified annex, containing its findings, to the House 

and Senate Committees on Armed Services, Appropriations, Foreign 

Relations, and Intelligence. 

SEC. 1321. AWARD OF MEDAL OF HONOR TO WOODROW W. 

KEEBLE FOR VALOR DURING KOREAN WAR. (a) WAIVER OF TIME LIMITATIONS.—Notwithstanding any applicable time limitation under 

section 3744 of title 10, United States Code, or any other time limitation with respect to the award of certain medals to individuals 

who served in the Armed Forces, the President may award to Woodrow W. Keeble the Medal of Honor under section 3741 of that title 

for the acts of valor described in subsection (b). 

(b) ACTS OF VALOR.—The acts of valor referred to in subsection 

(a) are the acts of Woodrow W. Keeble, then-acting platoon leader, 

carried out on October 20, 1951, during the Korean War. 

(TRANSFER OF FUNDS)

SEC. 1322. Of the amount appropriated under the heading 

‘‘Other Procurement, Army’’, in title III of division A of Public Law 

109–148, $6,250,000 shall be transferred to ‘‘Military Construction, 

Army’’. 

(TRANSFER OF FUNDS)

SEC. 1323. Notwithstanding any other provision of law, not to 

exceed $110,000,000 may be transferred to the ‘‘Economic Support 

Fund’’, Department of State, for use in programs in Pakistan from 

amounts appropriated by this Act as follows: 

‘‘Military Personnel, Army’’, $70,000,000; 

‘‘National Guard Personnel, Army’’, $13,183,000; and 

‘‘Defense Health Program’’, $26,817,000. 

CHAPTER 4 

DEPARTMENT OF ENERGY 

ATOMIC ENERGY DEFENSE ACTIVITIES 

NATIONAL NUCLEAR SECURITY ADMINISTRATION

DEFENSE NUCLEAR NONPROLIFERATION

For an additional amount for ‘‘Defense Nuclear Nonproliferation’’, $150,000,000, to remain available until expended. 

GENERAL PROVISION—THIS CHAPTER 

(TRANSFER OF FUNDS)

SEC. 1401. The Administrator of the National Nuclear Security 

Administration is authorized to transfer up to $1,000,000 from Defense Nuclear Nonproliferation to the Office of the Administrator 

during fiscal year 2007 supporting nuclear nonproliferation activities. 


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CHAPTER 5 

DEPARTMENT OF HOMELAND SECURITY 

ANALYSIS AND OPERATIONS

For an additional amount for ‘‘Analysis and Operations’’, 

$15,000,000, to remain available until September 30, 2008, to be 

used for support of the State and Local Fusion Center program. 

UNITED STATES CUSTOMS AND BORDER PROTECTION

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Salaries and Expenses’’, 

$115,000,000, to remain available until September 30, 2008, to be 

used to increase the number of officers, intelligence analysts and 

support staff responsible for container security inspections, and for 

other efforts to improve supply chain security: Provided, That up to 

$5,000,000 shall be transferred to Federal Law Enforcement Training Center ‘‘Salaries and Expenses’’, for basic training costs. 

AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND

PROCUREMENT

For an additional amount for ‘‘Air and Marine Interdiction, 

Operations, Maintenance, and Procurement’’, for air and marine operations on the Northern Border, including the final Northern Border air wing, $120,000,000, to remain available until September 30, 

2008. 

UNITED STATES IMMIGRATION AND CUSTOMS ENFORCEMENT

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$10,000,000, to remain available until September 30, 2008. 

TRANSPORTATION SECURITY ADMINISTRATION

AVIATION SECURITY

For an additional amount for ‘‘Aviation Security’’, 

$970,000,000; of which $815,000,000 shall be for procurement and 

installation of checked baggage explosives detection systems, to remain available until expended; of which $45,000,000 shall be for expansion of checkpoint explosives detection pilot systems, to remain 

available until expended; and of which $110,000,000 shall be for air 

cargo security, to remain available until September 30, 2009. 

FEDERAL AIR MARSHALS

For an additional amount for ‘‘Federal Air Marshals’’, 

$8,000,000, to remain available until September 30, 2008. 


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NATIONAL PROTECTION AND PROGRAMS

INFRASTRUCTURE PROTECTION AND INFORMATION SECURITY

For an additional amount for ‘‘Infrastructure Protection and Information Security’’, $37,000,000, to remain available until September 30, 2008. 

OFFICE OF HEALTH AFFAIRS

For an additional amount for ‘‘Office of Health Affairs’’ for nuclear event public health assessment and planning and other activities, $15,000,000, to remain available until September 30, 2008. 

FEDERAL EMERGENCY MANAGEMENT AGENCY

MANAGEMENT AND ADMINISTRATION

For expenses for management and administration of the Fed- eral Emergency Management Agency, $25,000,000, to remain available until September 30, 2008: Provided, That none of such funds 

made available under this heading may be obligated until the Committees on Appropriations of the Senate and the House of Representatives receive and approve a plan for expenditure: Provided further, 

That unobligated amounts in the ‘‘Administrative and Regional Operations’’ and ‘‘Readiness, Mitigation, Response, and Recovery’’ accounts shall be transferred to ‘‘Management and Administration’’ and may be used for any purpose authorized for such amounts and 

subject to limitation on the use of such amounts. 

STATE AND LOCAL PROGRAMS

For an additional amount for ‘‘State and Local Programs’’, $552,500,000; of which $190,000,000 shall be for port security 

grants pursuant to section 70107(l) of title 46 United States Code; 

of which $325,000,000 shall be for intercity rail passenger transportation, freight rail, and transit security grants; of which 

$35,000,000 shall be for regional grants and regional technical assistance to high risk urban areas for catastrophic event planning 

and preparedness; and of which $2,500,000 shall be for technical 

assistance: Provided, That none of the funds made available under 

this heading may be obligated for such regional grants and regional 

technical assistance until the Committees on Appropriations of the 

Senate and the House of Representatives receive and approve a plan 

for expenditure: Provided further, That funds for such regional 

grants and regional technical assistance shall remain available 

until September 30, 2008. 

EMERGENCY MANAGEMENT PERFORMANCE GRANTS

For an additional amount for ‘‘Emergency Management Performance Grants’’, $100,000,000. 

UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES

For an additional amount for expenses of ‘‘United States Citizenship and Immigration Services’’ to address backlogs of security 

checks associated with pending applications and petitions, 

$10,000,000, to remain available until September 30, 2008: Provided, That none of the funds made available under this heading 


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shall be available for obligation until the Secretary of Homeland Security, in consultation with the United States Attorney General, submits to the Committees on Appropriations of the Senate and the 

House of Representatives a plan to eliminate the backlog of security 

checks that establishes information sharing protocols to ensure 

United States Citizenship and Immigration Services has the information it needs to carry out its mission. 

SCIENCE AND TECHNOLOGY

RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

For an additional amount for ‘‘Research, Development, Acquisition, and Operations’’ for air cargo security research, $10,000,000, 

to remain available until expended. 

DOMESTIC NUCLEAR DETECTION OFFICE

RESEARCH, DEVELOPMENT, AND OPERATIONS

For an additional amount for ‘‘Research, Development, and Operations’’ for non-container, rail, aviation and intermodal radiation 

detection activities, $39,000,000, to remain available until expended. 

SYSTEMS ACQUISITION

For an additional amount for ‘‘Systems Acquisition’’, 

$223,500,000, to remain available until expended: Provided, That 

none of the funds appropriated under this heading shall be obligated for full scale procurement of Advanced Spectroscopic Portal 

Monitors until the Secretary of Homeland Security has certified 

through a report to the Committees on Appropriations of the Senate 

and the House of Representatives that a significant increase in operational effectiveness will be achieved. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1501. (a) AMENDMENTS.—Section 550 of the Department of 

Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note) is 

amended by: 

(1) in subsection (c), by striking ‘‘consistent with similar’’

and inserting ‘‘identical to the protections given’’; 

(2) in subsection (c), by striking ‘‘, site security plans, and 

other information submitted to or obtained by the Secretary 

under this section, and related vulnerability or security information, shall be treated as if the information were classified 

material’’ and inserting ‘‘and site security plans shall be treated 

as sensitive security information (as that term is used in section 

1520.5 of title 49, Code of Federal Regulations, or any subsequent regulations relating to the same matter)’’; and 

(3) by adding at the end of the section the following: 

‘‘(h) This section shall not preclude or deny any right of any 

State or political subdivision thereof to adopt or enforce any regulation, requirement, or standard of performance with respect to chemical facility security that is more stringent than a regulation, requirement, or standard of performance issued under this section, or 

otherwise impair any right or jurisdiction of any State with respect 

to chemical facilities within that State.’’. 


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(b) REGULATORY CLARIFICATION.—Not later than 60 days after 

the date of the enactment of this Act, the Secretary of Homeland Security shall update the regulations administered by the Secretary 

that govern sensitive security information, including 49 CFR 1520, 

to ensure the protection of all information required to be protected 

under section 550(c) of the Department of Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note), as amended by paragraph (a). 

SEC. 1502. None of the funds provided in this Act, or Public 

Law 109–295, shall be available to carry out section 872 of Public 

Law 107–296. 

SEC. 1503. LINKING OF AWARD FEES UNDER DEPARTMENT OF

HOMELAND SECURITY CONTRACTS TO SUCCESSFUL ACQUISITION

OUTCOMES. The Secretary of Homeland Security shall require that 

all contracts of the Department of Homeland Security that provide 

award fees link such fees to successful acquisition outcomes (which 

outcomes shall be specified in terms of cost, schedule, and performance). 

CHAPTER 6 

LEGISLATIVE BRANCH 

HOUSE OF REPRESENTATIVES 

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $6,437,000, as follows: 

ALLOWANCES AND EXPENSES

For an additional amount for allowances and expenses as au- thorized by House resolution or law, $6,437,000 for business continuity and disaster recovery, to remain available until expended. 

GOVERNMENT ACCOUNTABILITY OFFICE 

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ of the Government Accountability Office, $374,000, to remain available 

until September 30, 2008. 

CHAPTER 7 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION, ARMY

For an additional amount for ‘‘Military Construction, Army’’, $1,255,890,000, to remain available until September 30, 2008: Provided, That notwithstanding any other provision of law, such funds 

may be obligated and expended to carry out planning and design 

and military construction projects not otherwise authorized by law: 

Provided further, That of the funds provided under this heading, 

not to exceed $173,700,000 shall be available for study, planning, 

design, and architect and engineer services: Provided further, That 

of the funds made available under this heading, $369,690,000 shall 


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not be obligated or expended until the Secretary of Defense submits 

a detailed report explaining how military road construction is coordinated with NATO and coalition nations: Provided further, That 

of the funds made available under this heading, $401,700,000 shall 

not be obligated or expended until the Secretary of Defense submits 

a detailed stationing plan to support Army end-strength growth to 

the Committees on Appropriations of the House of Representatives 

and Senate: Provided further, That of the funds provided under this 

heading, $274,800,000 shall not be obligated or expended until the 

Secretary of Defense certifies that none of the funds are to be used 

for the purpose of providing facilities for the permanent basing of 

U.S. military personnel in Iraq. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

For an additional amount for ‘‘Military Construction, Navy and 

Marine Corps’’, $370,990,000, to remain available until September 

30, 2008: Provided, That notwithstanding any other provision of 

law, such funds may be obligated and expended to carry out planning and design and military construction projects not otherwise 

authorized by law: Provided further, That of the funds provided 

under this heading, not to exceed $49,600,000 shall be available for 

study, planning, design, and architect and engineer services: Provided further, That of the funds made available under this heading, 

$324,270,000 shall not be obligated or expended until the Secretary 

of Defense submits a detailed stationing plan to support Marine 

Corps end-strength growth to the Committees on Appropriations of 

the House of Representatives and Senate. 

MILITARY CONSTRUCTION, AIR FORCE

For an additional amount for ‘‘Military Construction, Air 

Force’’, $43,300,000, to remain available until September 30, 2008: 

Provided, That notwithstanding any other provision of law, such 

funds may be obligated and expended to carry out planning and design and military construction projects not otherwise authorized by 

law: Provided further, That of the funds provided under this heading, not to exceed $3,000,000 shall be available for study, planning, 

design, and architect and engineer services. 

DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005 

For deposit into the Department of Defense Base Closure Account 2005, established by section 2906A(a)(1) of the Defense Base 

Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), 

$3,136,802,000, to remain available until expended: Provided, That 

within 30 days of the enactment of this Act, the Secretary of Defense 

shall submit a detailed spending plan to the Committees on Appropriations of the House of Representatives and Senate. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1701. Notwithstanding any other provision of law, none of 

the funds in this or any other Act may be used to close Walter Reed 

Army Medical Center until equivalent medical facilities at the Walter Reed National Military Medical Center at Naval Medical Center, 

Bethesda, Maryland, and/or the Fort Belvoir, Virginia, Community 


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Hospital have been constructed and equipped: Provided, That to ensure that the quality of care provided by the Military Health System 

is not diminished during this transition, the Walter Reed Army 

Medical Center shall be adequately funded, to include necessary 

renovation and maintenance of existing facilities, to maintain the 

maximum level of inpatient and outpatient services. 

SEC. 1702. Notwithstanding any other provision of law, none of 

the funds in this or any other Act shall be used to reorganize or relocate the functions of the Armed Forces Institute of Pathology 

(AFIP) until the Secretary of Defense has submitted, not later than 

December 31, 2007, a detailed plan and timetable for the proposed 

reorganization and relocation to the Committees on Appropriations 

and Armed Services of the Senate and House of Representatives. 

The plan shall take into consideration the recommendations of a 

study being prepared by the Government Accountability Office 

(GAO), provided that such study is available not later than 45 days 

before the date specified in this section, on the impact of dispersing 

selected functions of AFIP among several locations, and the possibility of consolidating those functions at one location. The plan 

shall include an analysis of the options for the location and operation of the Program Management Office for second opinion 

consults that are consistent with the recommendations of the Base 

Realignment and Closure Commission, together with the rationale 

for the option selected by the Secretary. 

CHAPTER 8 

DEPARTMENT OF STATE AND RELATED AGENCY 

DEPARTMENT OF STATE 

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Diplomatic and Consular Programs’’, $870,658,000, to remain available until September 30, 

2008, of which $96,500,000 for World Wide Security Upgrades is 

available until expended: Provided, That of the funds appropriated 

under this heading, not more than $20,000,000 shall be made available for public diplomacy programs: Provided further, That prior to 

the obligation of funds pursuant to the previous proviso, the Secretary of State shall submit a report to the Committees on Appropriations describing a comprehensive public diplomacy strategy, 

with goals and expected results, for fiscal years 2007 and 2008: Provided further, That of the amount available under this heading, 

$258,000 shall be transferred to, and merged with, funds available 

in fiscal year 2007 for expenses for the United States Commission 

on International Religious Freedom: Provided further, That 20 percent of the amount available for Iraq operations shall not be obligated until the Committees on Appropriations receive and approve 

a detailed plan for expenditure, prepared by the Secretary of State, 

and submitted within 60 days after the date of enactment of this 

Act: Provided further, That within 15 days of enactment of this Act, 

the Office of Management and Budget shall apportion $15,000,000 


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from amounts appropriated or otherwise made available by chapter 

8 of title II of division B of Public Law 109–148 under the heading ‘‘Emergencies in the Diplomatic and Consular Service’’ for emergency evacuations: Provided further, That of the amount made 

available under this heading for Iraq, not to exceed $20,000,000 

may be transferred to, and merged with, funds in the ‘‘Emergencies 

in the Diplomatic and Consular Service’’ appropriations account, to 

be available only for terrorism rewards. 

OFFICE OF THE INSPECTOR GENERAL

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Office of Inspector General’’, 

$36,500,000, to remain available until December 31, 2008: Provided, That $35,000,000 shall be transferred to the Special Inspector General for Iraq Reconstruction for reconstruction oversight. 

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

For an additional amount for ‘‘Educational and Cultural Exchange Programs’’, $20,000,000, to remain available until expended. 

INTERNATIONAL ORGANIZATIONS

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

For an additional amount for ‘‘Contributions to International 

Organizations’’, $50,000,000, to remain available until September 

30, 2008. 

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

For an additional amount for ‘‘Contributions for International 

Peacekeeping Activities’’, $288,000,000, to remain available until 

September 30, 2008. 

RELATED AGENCY 

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

For an additional amount for ‘‘International Broadcasting Operations’’ for activities related to broadcasting to the Middle East, 

$10,000,000, to remain available until September 30, 2008. 

BILATERAL ECONOMIC ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Child Survival and Health Programs Fund’’, $161,000,000, to remain available until September 

30, 2008: Provided, That notwithstanding any other provision of 

law, if the President determines and reports to the Committees on 

Appropriations that the human-to-human transmission of the avian 


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influenza virus is efficient and sustained, and is spreading internationally, funds made available under the heading ‘‘Millennium 

Challenge Corporation’’ and ‘‘Global HIV/AIDS Initiative’’ in prior 

Acts making appropriations for foreign operations, export financing, 

and related programs may be transferred to, and merged with, 

funds made available under this heading to combat avian influenza: Provided further, That funds made available pursuant to the 

authority of the previous proviso shall be subject to the regular notification procedures of the Committees on Appropriations. 

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

For an additional amount for ‘‘International Disaster and Famine Assistance’’, $165,000,000, to remain available until expended. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

For an additional amount for ‘‘Operating Expenses of the 

United States Agency for International Development’’, $8,700,000, to 

remain available until September 30, 2008. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For an additional amount for ‘‘Operating Expenses of the 

United States Agency for International Development Office of Inspector General’’, $3,500,000, to remain available until September 

30, 2008. 

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

For an additional amount for ‘‘Economic Support Fund’’, 

$2,649,300,000, to remain available until September 30, 2008: Provided, That of the funds appropriated under this heading, 

$57,400,000 shall be made available to nongovernmental organizations in Iraq for economic and social development programs and activities in areas of conflict: Provided further, That the responsibility 

for policy decisions and justifications for the use of funds appropriated by the previous proviso shall be the responsibility of the 

United States Chief of Mission in Iraq: Provided further, That none 

of the funds appropriated under this heading in this Act or in prior 

Acts making appropriations for foreign operations, export financing, 

and related programs may be made available for the Political Participation Fund and the National Institutions Fund: Provided further, That of the funds made available under the heading ‘‘Economic Support Fund’’ in Public Law 109–234 for Iraq to promote 

democracy, rule of law and reconciliation, $2,000,000 should be 

made available for the United States Institute of Peace for programs 

and activities in Afghanistan to remain available until September 

30, 2008. 

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

For an additional amount for ‘‘Assistance for Eastern Europe 

and the Baltic States’’, $229,000,000, to remain available until September 30, 2008, for assistance for Kosovo. 


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DEPARTMENT OF STATE

DEMOCRACY FUND

For an additional amount for ‘‘Democracy Fund’’, $260,000,000, 

to remain available until September 30, 2008: Provided, That of the 

funds appropriated under this heading, not less than $190,000,000 

shall be made available for the Human Rights and Democracy 

Fund of the Bureau of Democracy, Human Rights, and Labor, Department of State, and not less than $60,000,000 shall be made 

available for the United States Agency for International Development, for democracy, human rights and rule of law programs in 

Iraq: Provided further, That not later than 60 days after enactment 

of this Act, the Secretary of State shall submit a report to the Committees on Appropriations describing a comprehensive, long-term 

strategy, with goals and expected results, for strengthening and advancing democracy in Iraq. 

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

(INCLUDING RESCISSION OF FUNDS)

For an additional amount for ‘‘International Narcotics Control 

and Law Enforcement’’, $257,000,000, to remain available until 

September 30, 2008. 

Of the amounts made available for procurement of a maritime 

patrol aircraft for the Colombian Navy under this heading in Public 

Law 109–234, $13,000,000 are rescinded. 

MIGRATION AND REFUGEE ASSISTANCE

For an additional amount for ‘‘Migration and Refugee Assistance’’, $130,500,000, to remain available until September 30, 2008, 

of which not less than $5,000,000 shall be made available to rescue 

Iraqi scholars. 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

For an additional amount for ‘‘United States Emergency Refugee and Migration Assistance Fund’’, $55,000,000, to remain available until expended. 

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

For an additional amount for ‘‘Nonproliferation, Anti-Terrorism, Demining and Related Programs’’, $57,500,000, to remain 

available until September 30, 2008. 

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

For an additional amount for ‘‘International Affairs Technical 

Assistance’’, $2,750,000, to remain available until September 30, 

2008. 


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MILITARY ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

For an additional amount for ‘‘Foreign Military Financing Program’’, $265,000,000, to remain available until September 30, 2008. 

PEACEKEEPING OPERATIONS

For an additional amount for ‘‘Peacekeeping Operations’’, 

$230,000,000, to remain available until September 30, 2008: Provided, That of the funds appropriated under this heading, not less 

than $40,000,000 shall be made available, notwithstanding section 

660 of the Foreign Assistance Act of 1961, for assistance for Liberia 

for security sector reform: Provided further, That not later than 30 

days after enactment of this Act and every 30 days thereafter until 

September 30, 2008, the Secretary of State shall submit a report to 

the Committees on Appropriations detailing the obligation and expenditure of funds made available under this heading in this Act 

and in prior Acts making appropriations for foreign operations, export financing, and related programs. 

GENERAL PROVISIONS—THIS CHAPTER 

AUTHORIZATION OF FUNDS

SEC. 1801. Funds appropriated by this title may be obligated 

and expended notwithstanding section 10 of Public Law 91–672 (22 

U.S.C. 2412), section 15 of the State Department Basic Authorities 

Act of 1956 (22 U.S.C. 2680), section 313 of the Foreign Relations 

Authorization Act, Fiscal Years 1994 and 1995 (22 U.S.C. 6212), 

and section 504(a)(1) of the National Security Act of 1947 (50 

U.S.C. 414(a)(1)). 

EXTENSION OF OVERSIGHT AUTHORITY

SEC. 1802. Section 3001(o)(1)(B) of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of 

Iraq and Afghanistan, 2004 (Public Law 108–106; 117 Stat. 1238; 

5 U.S.C. App., note to section 8G of Public Law 95–452), as amended by section 1054(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 

2397) and section 2 of the Iraq Reconstruction Accountability Act of 

2006 (Public Law 109–440), is amended by inserting ‘‘or fiscal year 

2007’’ after ‘‘fiscal year 2006’’. 

LEBANON

SEC. 1803. (a) LIMITATION ON ECONOMIC SUPPORT FUND ASSISTANCE FOR LEBANON.—None of the funds made available in this 

Act under the heading ‘‘Economic Support Fund’’ for cash transfer 

assistance for the Government of Lebanon may be made available 

for obligation until the Secretary of State reports to the Committees 

on Appropriations on Lebanon’s economic reform plan and on the 

specific conditions and verifiable benchmarks that have been agreed 

upon by the United States and the Government of Lebanon pursuVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00025 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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ant to the Memorandum of Understanding on cash transfer assistance for Lebanon. 

(b) LIMITATION ON FOREIGN MILITARY FINANCING PROGRAM

AND INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

ASSISTANCE FOR LEBANON.—None of the funds made available in 

this Act under the heading ‘‘Foreign Military Financing Program’’

or ‘‘International Narcotics Control and Law Enforcement’’ for military or police assistance to Lebanon may be made available for obligation until the Secretary of State submits to the Committees on Appropriations a report on procedures established to determine eligibility of members and units of the armed forces and police forces of 

Lebanon to participate in United States training and assistance 

programs and on the end use monitoring of all equipment provided 

under such programs to the Lebanese armed forces and police 

forces. 

(c) CERTIFICATION REQUIRED.—Prior to the initial obligation of 

funds made available in this Act for assistance for Lebanon under 

the headings ‘‘Foreign Military Financing Program’’ and ‘‘Nonproliferation, Anti-Terrorism, Demining and Related Programs’’, the 

Secretary of State shall certify to the Committees on Appropriations 

that all practicable efforts have been made to ensure that such assistance is not provided to or through any individual, or private or 

government entity, that advocates, plans, sponsors, engages in, or 

has engaged in, terrorist activity. 

(d) REPORT REQUIRED.—Not later than 45 days after the date 

of the enactment of this Act, the Secretary of State shall submit to 

the Committees on Appropriations a report on the Government of 

Lebanon’s actions to implement section 14 of United Nations Security Council Resolution 1701 (August 11, 2006). 

(e) SPECIAL AUTHORITY.—This section shall be effective notwithstanding section 534(a) of Public Law 109–102, which is made applicable to funds appropriated for fiscal year 2007 by the Continuing Appropriations Resolution, 2007 (division B of Public Law 

109–289, as amended by Public Law 110–5). 

DEBT RESTRUCTURING

SEC. 1804. Amounts appropriated for fiscal year 2007 for ‘‘Bilateral Economic Assistance—Department of the Treasury—Debt Restructuring’’ may be used to assist Liberia in retiring its debt arrearages to the International Monetary Fund, the International 

Bank for Reconstruction and Development, and the African Development Bank. 

GOVERNMENT ACCOUNTABILITY OFFICE

SEC. 1805. To facilitate effective oversight of programs and activities in Iraq by the Government Accountability Office (GAO), the 

Department of State shall provide GAO staff members the country 

clearances, life support, and logistical and security support necessary for GAO personnel to establish a presence in Iraq for periods 

of not less than 45 days. 

HUMAN RIGHTS AND DEMOCRACY FUND

SEC. 1806. The Assistant Secretary of State for Democracy, 

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ing, and programming decisions regarding funds made available 

under this Act and prior Acts making appropriations for foreign operations, export financing and related programs for the Human 

Rights and Democracy Fund of the Bureau of Democracy, Human 

Rights, and Labor. 

INSPECTOR GENERAL OVERSIGHT OF IRAQ AND AFGHANISTAN

SEC. 1807. (a) IN GENERAL.—Subject to paragraph (2), the Inspector General of the Department of State and the Broadcasting 

Board of Governors (referred to in this section as the ‘‘Inspector 

General’’) may use personal services contracts to engage citizens of 

the United States to facilitate and support the Office of the Inspector 

General’s oversight of programs and operations related to Iraq and 

Afghanistan. Individuals engaged by contract to perform such services shall not, by virtue of such contract, be considered to be employees of the United States Government for purposes of any law administered by the Office of Personnel Management. The Secretary of 

State may determine the applicability to such individuals of any 

law administered by the Secretary concerning the performance of 

such services by such individuals. 

(b) CONDITIONS.—The authority under paragraph (1) is subject 

to the following conditions: 

(1) The Inspector General determines that existing personnel resources are insufficient. 

(2) The contract length for a personal services contractor, 

including options, may not exceed 1 year, unless the Inspector 

General makes a finding that exceptional circumstances justify 

an extension of up to 1 additional year. 

(3) Not more than 10 individuals may be employed at any 

time as personal services contractors under the program. 

(c) TERMINATION OF AUTHORITY.—The authority to award personal services contracts under this section shall terminate on December 31, 2007. A contract entered into prior to the termination 

date under this paragraph may remain in effect until not later than 

December 31, 2009. 

(d) OTHER AUTHORITIES NOT AFFECTED.—The authority under 

this section is in addition to any other authority of the Inspector 

General to hire personal services contractors. 

FUNDING TABLES

SEC. 1808. (a) Funds provided in this Act for the following accounts shall be made available for programs and countries in the 

amounts contained in the respective tables included in the report accompanying this Act: 

‘‘Diplomatic and Consular Programs’’. 

‘‘Economic Support Fund’’. 

‘‘Democracy Fund’’. 

‘‘International Narcotics Control and Law Enforcement’’. 

‘‘Migration and Refugee Assistance’’. 

(b) Any proposed increases or decreases to the amounts contained in the tables in the accompanying report shall be subject to 

the regular notification procedures of the Committees on Appropriations and section 634A of the Foreign Assistance Act of 1961. 


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SPENDING PLAN AND NOTIFICATION PROCEDURES

SEC. 1809. Not later than 45 days after enactment of this Act 

the Secretary of State shall submit to the Committees on Appropriations a report detailing planned expenditures for funds appropriated 

under the headings in this chapter, except for funds appropriated 

under the heading ‘‘International Disaster and Famine Assistance’’: 

Provided, That funds appropriated under the headings in this chapter, except for funds appropriated under the heading named in this 

section, shall be subject to the regular notification procedures of the 

Committees on Appropriations. 

CONDITIONS ON ASSISTANCE FOR PAKISTAN

SEC. 1810. None of the funds made available for assistance for 

the central Government of Pakistan under the heading ‘‘Economic 

Support Fund’’ in this title may be made available for non-project 

assistance until the Secretary of State submits to the Committees on 

Appropriations a report on the oversight mechanisms, performance 

benchmarks, and implementation processes for such funds: Provided, That notwithstanding any other provision of law, funds 

made available for non-project assistance pursuant to the previous 

proviso shall be subject to the regular notification procedures of the 

Committees on Appropriations: Provided further, That of the funds 

made available for assistance for Pakistan under the heading ‘‘Economic Support Fund’’ in this title, $5,000,000 shall be made available for the Human Rights and Democracy Fund of the Bureau of 

Democracy, Human Rights, and Labor, Department of State, for political party development and election observation programs. 

CIVILIAN RESERVE CORPS

SEC. 1811. Of the funds appropriated by this Act under the 

heading ‘‘Diplomatic and Consular Programs’’, up to $50,000,000 

may be made available to support and maintain a civilian reserve 

corps: Provided, That none of the funds for a civilian reserve corps 

may be obligated without specific authorization in a subsequent Act 

of Congress: Provided further, That funds made available under 

this section shall be subject to the regular notification procedures of 

the Committees on Appropriations. 

COORDINATOR FOR IRAQ ASSISTANCE

SEC. 1812. (a) COORDINATOR FOR IRAQ ASSISTANCE.—Not later 

than 30 days after the date of the enactment of this Act, the President shall appoint a Coordinator for Iraq Assistance (hereinafter in 

this section referred to as the ‘‘Coordinator’’), by and with the advice 

and consent of the Senate, who shall report directly to the President. 

(b) DUTIES.—The Coordinator shall be responsible for—

(1) Developing and implementing an overall strategy for political, economic, and military assistance for Iraq; 

(2) Coordinating and ensuring coherence of Iraq assistance 

programs and policy among all departments and agencies of 

the Government of the United States that are implementing assistance programs in Iraq, including the Department of State, 

the United States Agency for International Development, the 

Department of Defense, the Department of the Treasury, and the 

Department of Justice; 


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(3) Working with the Government of Iraq in meeting the 

benchmarks described in section 1904(a) of this Act in order to 

ensure Iraq continues to be eligible to receive United States assistance described in such section; 

(4) Coordinating with other donors and international organizations that are providing assistance for Iraq; 

(5) Ensuring adequate management and accountability of 

United States assistance programs for Iraq; 

(6) Resolving policy and program disputes among departments and agencies of the United States Government that are 

implementing assistance programs in Iraq; and 

(7) Coordinating United States assistance programs with 

the reconstruction programs funded and implemented by the 

Government of Iraq. 

(c) RANK AND STATUS.—The Coordinator shall have the rank 

and status of ambassador. 

CHAPTER 9 

GENERAL PROVISIONS—THIS TITLE 

SEC. 1901. (a) Congress finds that it is Defense Department policy that units should not be deployed for combat unless they are 

rated ‘‘fully mission capable’’. (b) None of the funds appropriated or otherwise made available 

in this or any other Act may be used to deploy any unit of the 

Armed Forces to Iraq unless the chief of the military department 

concerned has certified in writing to the Committees on Appropriations and the Committees on Armed Services at least 15 days in advance of the deployment that the unit is fully mission capable. 

(c) For purposes of subsection (b), the term ‘‘fully mission capable’’ means capable of performing assigned mission essential tasks 

to prescribed standards under the conditions expected in the theater 

of operations, consistent with the guidelines set forth in the Department of Defense readiness reporting system. 

(d) The President, by certifying in writing to the Committees on 

Appropriations and the Committees on Armed Services that the deployment to Iraq of a unit that is not assessed fully mission capable 

is required for reasons of national security and by submitting along 

with the certification a report in classified and unclassified form detailing the particular reason or reasons why the unit’s deployment 

is necessary despite the chief of the military department’s assessment that the unit is not fully mission capable, may waive the limitation prescribed in subsection (b) on a unit-by-unit basis. 

SEC. 1902. (a) Congress finds that it is Defense Department policy that Army, Army Reserve, and National Guard units should not 

be deployed for combat beyond 365 days or that Marine Corps and 

Marine Corps Reserve units should not be deployed for combat beyond 210 days. 

(b) None of the funds appropriated or otherwise made available 

in this or any other Act may be obligated or expended to initiate the 

development of, continue the development of, or execute any order 

that has the effect of extending the deployment for Operation Iraqi 

Freedom of—

(1) any unit of the Army, Army Reserve or Army National 

Guard beyond 365 days; or 


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(2) any unit of the Marine Corps or Marine Corps Reserve 

beyond 210 days. 

(c) The limitation prescribed in subsection (b) shall not be construed to require force levels in Iraq to be decreased below the total 

United States force levels in Iraq prior to January 10, 2007. 

(d) The President, by certifying in writing to the Committees on 

Appropriations and the Committees on Armed Services that the extension of a unit’s deployment in Iraq beyond the periods specified 

in subsection (b) is required for reasons of national security and by 

submitting along with the certification a report in classified and unclassified form detailing the particular reason or reasons why the 

unit’s extended deployment is necessary, may waive the limitations 

prescribed in subsection (b) on a unit-by-unit basis. 

SEC. 1903. (a) Congress finds that it is Defense Department policy that Army, Army Reserve, and National Guard units should not 

be redeployed for combat if the unit has been deployed within the 

previous 365 consecutive days or that Marine Corps and Marine 

Corps Reserve units should not be redeployed for combat if the unit 

has been deployed within the previous 210 days. 

(b) None of the funds appropriated or otherwise made available 

in this or any other Act may be obligated or expended to initiate the 

development of, continue the development of, or execute any order 

that has the effect of deploying for Operation Iraqi Freedom of—

(1) any unit of the Army, Army Reserve or Army National 

Guard if such unit has been deployed within the previous 365 

consecutive days; or 

(2) any unit of the Marine Corps or Marine Corps Reserve 

if such unit has been deployed within the previous 210 consecutive days. 

(c) The limitation prescribed in subsection (b) shall not be construed to require force levels in Iraq to be decreased below the total 

United States force levels in Iraq prior to January 10, 2007. 

(d) The President, by certifying in writing to the Committees on 

Appropriations and the Committees on Armed Services that the redeployment of a unit to Iraq in advance of the periods specified in 

subsection (b) is required for reasons of national security and by 

submitting along with the certification a report in classified and unclassified form detailing the particular reason or reasons why the 

unit’s redeployment is necessary, may waive the limitations prescribed in subsection (b) on a unit-by-unit basis. 

SEC. 1904. (a) The President shall make and transmit to Congress the following determinations, along with reports in classified 

and unclassified form detailing the basis for each determination, on 

or before July 1, 2007: 

(1) whether the Government of Iraq has given United States 

Armed Forces and Iraqi Security Forces the authority to pursue 

all extremists, including Sunni insurgents and Shiite militias, 

and is making substantial progress in delivering necessary 

Iraqi Security Forces for Baghdad and protecting such Forces 

from political interference; intensifying efforts to build balanced 

security forces throughout Iraq that provide even-handed security for all Iraqis; ensuring that Iraq’s political authorities are 

not undermining or making false accusations against members 

of the Iraqi Security Forces; eliminating militia control of local 

security; establishing a strong militia disarmament program; 


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ensuring fair and just enforcement of laws; establishing political, media, economic, and service committees in support of the 

Baghdad Security Plan; and eradicating safe havens; 

(2) whether the Government of Iraq is making substantial 

progress in meeting its commitment to pursue reconciliation initiatives, including enactment of a hydro-carbon law; adoption of 

legislation necessary for the conduct of provincial and local 

elections; reform of current laws governing the deBaathification process; amendment of the Constitution of Iraq; 

and allocation of Iraqi revenues for reconstruction projects; 

(3) whether the Government of Iraq and United States 

Armed Forces are making substantial progress in reducing the 

level of sectarian violence in Iraq; and 

(4) whether the Government of Iraq is ensuring the rights 

of minority political parties in the Iraqi Parliament are protected. 

(b) If the President fails to make any of the determinations specified in subsection (a), the Secretary of Defense shall commence the 

redeployment of the Armed Forces from Iraq no later than July 1, 

2007, with a goal of completing such redeployment within 180 days. 

(c) If the President makes the determinations specified in subsection (a), the Secretary of Defense shall commence the redeployment of the Armed Forces from Iraq not later than October 1, 2007, 

with a goal of completing such redeployment within 180 days. 

(d) Notwithstanding any other provision of law, funds appropriated or otherwise made available in this or any other Act are immediately available for obligation and expenditure to plan and execute a safe and orderly redeployment of the Armed Forces from Iraq, 

as specified in subsections (b) and (c). 

(e) After the conclusion of the redeployment specified in subsections (b) and (c), the Secretary of Defense may not deploy or 

maintain members of the Armed Forces in Iraq for any purpose 

other than the following: 

(1) Protecting American diplomatic facilities and American 

citizens, including members of the U.S. armed forces; 

(2) Serving in roles consistent with customary diplomatic 

positions; 

(3) Engaging in targeted special actions limited in duration 

and scope to killing or capturing members of al-Qaeda and 

other terrorist organizations with global reach; and 

(4) Training and equipping members of the Iraqi Security 

Forces. 

(f) Notwithstanding any other provision of law, 50 percent of 

the funds appropriated by title I of this Act for assistance to Iraq 

under each of the headings ‘‘Economic Support Fund’’ and ‘‘International Narcotics Control and Law Enforcement’’ shall be withheld 

from obligation until the President has made a certification to Congress that the Government of Iraq has enacted a broadly accepted 

hydro-carbon law that equitably shares oil revenues among all 

Iraqis; adopted legislation necessary for the conduct of provincial 

and local elections, taken steps to implement such legislation, and 

set a schedule to conduct provincial and local elections; reformed 

current laws governing the de-Baathification process to allow for 

more equitable treatment of individuals affected by such laws; 

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tained in Article 137 of such constitution; and allocated and begun 

expenditure of $10,000,000,000 in Iraqi revenues for reconstruction 

projects, including delivery of essential services, on an equitable 

basis. 

(g) The requirement to withhold funds from obligation pursuant 

to subsection (f) shall not apply with respect to funds made available under the heading ‘‘Economic Support Fund’’ for continued 

support for the Community Action Program and Community Stabilization Program in Iraq administered by the United States Agency for International Development or for programs and activities to 

promote democracy in Iraq. 

(h) Beginning on September 1, 2007, and every 60 days thereafter, the Commander, Multi-National Forces—Iraq and the United 

States Ambassador to Iraq shall jointly submit to Congress a report 

describing and assessing in detail the current progress being made 

by the Government of Iraq regarding the criteria set forth in subsection (a). 

TITLE II 

ADDITIONAL HURRICANE DISASTER RELIEF AND 

RECOVERY 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE 

GENERAL PROVISION—THIS CHAPTER 

SEC. 2101. Section 1231(k)(2) of the Food Security Act of 1985 

(16 U.S.C. 3831(k)(2)) is amended by striking ‘‘During calendar year 

2006, the’’ and inserting ‘‘The’’. 

CHAPTER 2 

DEPARTMENT OF JUSTICE 

OFFICE OF JUSTICE PROGRAMS

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, for discretionary grants authorized by subpart 2 

of part E, of title I of the Omnibus Crime Control and Safe Streets 

Act of 1968 as in effect on September 30, 2006, notwithstanding the 

provisions of section 511 of said Act, $50,000,000, to remain available until expended: Provided, That the amount made available 

under this heading shall be for local law enforcement initiatives in 

the Gulf Coast region related to the aftermath of Hurricanes 

Katrina and Rita: Provided further, That these funds shall be apportioned among the States in quotient to their level of violent crime 

as estimated by the Federal Bureau of Investigation’s Uniform 

Crime Report for the year 2005. 


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DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facilities’’, for necessary expenses related to the consequences of Hurricanes Katrina and Rita on the shrimp and fishing industries, 

$110,000,000, to remain available until September 30, 2008. 

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 

EXPLORATION CAPABILITIES

For an additional amount for ‘‘Exploration Capabilities’’ for 

necessary expenses related to the consequences of Hurricane 

Katrina, $35,000,000, to remain available until September 30, 2009. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 2201. Up to $48,000,000 of amounts made available to the 

National Aeronautics and Space Administration in Public Law 

109–148 and Public Law 109–234 for emergency hurricane and 

other natural disaster-related expenses may be used to reimburse 

hurricane-related costs incurred by NASA in fiscal year 2005. 

CHAPTER 3 

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

CONSTRUCTION

For an additional amount for ‘‘Construction’’ for necessary expenses related to the consequences of Hurricane Katrina and other 

hurricanes of the 2005 season, $25,300,000, to remain available 

until expended, which may be used to continue construction of 

projects related to interior drainage for the greater New Orleans 

metropolitan area. 

FLOOD CONTROL AND COASTAL EMERGENCIES

For an additional amount for ‘‘Flood Control and Coastal 

Emergencies’’, as authorized by section 5 of the Act of August 18, 

1941 (33 U.S.C. 701n), for necessary expenses relating to the consequences of Hurricanes Katrina and Rita and for other purposes, 

$1,407,700,000, to remain available until expended: Provided, That 

$1,300,000,000 of the amount provided may be used by the Secretary of the Army to carry out projects and measures for the West 

Bank and Vicinity and Lake Ponchartrain and Vicinity, Louisiana, 

projects, as described under the heading ‘‘Flood Control and Coastal 

Emergencies’’, in chapter 3 of Public Law 109–148: Provided further, That $107,700,000 of the amount provided may be used to implement the projects for hurricane storm damage reduction, flood 

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ance with the Report of the Chief of Engineers dated December 31, 

2006, and entitled ‘‘Mississippi, Coastal Improvements Program Interim Report, Hancock, Harrison, and Jackson Counties, Mississippi’’: Provided further, That projects authorized for implementation under this Chief’s report shall be carried out at full Federal 

expense, except that the non-Federal interests shall be responsible 

for providing for all costs associated with operation and maintenance of the project: Provided further, That any project using funds 

appropriated under this heading shall be initiated only after nonFederal interests have entered into binding agreements with the Secretary requiring the non-Federal interests to pay 100 percent of the 

operation, maintenance, repair, replacement, and rehabilitation 

costs of the project and to hold and save the United States free from 

damages due to the construction or operation and maintenance of 

the project, except for damages due to the fault or negligence of the 

United States or its contractors: Provided further, That the Chief of 

Engineers, acting through the Assistant Secretary of the Army for 

Civil Works, shall provide a monthly report to the House and Senate Committees on Appropriations detailing the allocation and obligation of these funds, beginning not later than 60 days after enactment of the Act. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2301. The Secretary is authorized and directed to determine the value of eligible reimbursable expenses incurred by local 

governments in storm-proofing pumping stations, constructing safe 

houses for operators, and other interim flood control measures in 

and around the New Orleans metropolitan area that the Secretary 

determines to be integral to the overall plan to ensure operability of 

the stations during hurricanes, storms and high water events and 

the flood control plan for the area. 

SEC. 2302. (a) The Secretary of the Army is authorized and directed to utilize funds remaining available for obligation from the 

amounts appropriated in chapter 3 of Public Law 109–234 under 

the heading ‘‘Flood Control and Coastal Emergencies’’ for projects 

in the greater New Orleans metropolitan area to prosecute these 

projects in a manner which promotes the goal of continuing work 

at an optimal pace, while maximizing, to the greatest extent practicable, levels of protection to reduce the risk of storm damage to 

people and property. 

(b) The expenditure of funds as provided in subsection (a) may 

be made without regard to individual amounts or purposes specified 

in chapter 3 of Public Law 109–234. 

(c) Any reallocation of funds that are necessary to accomplish 

the goal established in subsection (a) are authorized, subject to the 

approval of the House and Senate Committees on Appropriation. 

SEC. 2303. The Chief of Engineers shall investigate the overall 

technical advantages, disadvantages and operational effectiveness of 

operating the new pumping stations at the mouths of the 17th 

Street, Orleans Avenue and London Avenue canals in the New Orleans area directed for construction in Public Law 109–234 concurrently or in series with existing pumping stations serving these canals and the advantages, disadvantages and technical operational 

effectiveness of removing the existing pumping stations and configuring the new pumping stations and associated canals to handle all 


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needed discharges; and the advantages, disadvantages and technical operational effectiveness of replacing or improving the 

floodwalls and levees adjacent to the three outfall canals: Provided, 

That the analysis should be conducted at Federal expense: Provided 

further, That the analysis shall be completed and furnished to the 

Congress not later than three months after enactment of this Act. 

SEC. 2304. Using funds made available in Chapter 3 under title 

II of Public Law 109–234, under the heading ‘‘Investigations’’, the 

Secretary of the Army, in consultation with other agencies and the 

State of Louisiana shall accelerate completion as practicable the 

final report of the Chief of Engineers recommending a comprehensive plan to deauthorize deep draft navigation on the Mississippi 

River Gulf Outlet: Provided, That the plan shall incorporate and 

build upon the Interim Mississippi River Gulf Outlet Deep-Draft 

De-Authorization Report submitted to Congress in December 2006 

pursuant to Public Law 109–234. 

CHAPTER 4 

SMALL BUSINESS ADMINISTRATION 

DISASTER LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Of the unobligated balances under the heading ‘‘Small Business 

Administration, Disaster Loans Program Account’’, $25,069,000, to 

remain available until expended, shall be used for administrative 

expenses to carry out the disaster loan program, which may be 

transferred to and merged with ‘‘Small Business Administration, 

Salaries and Expenses’’. 

Of the unobligated balances under the heading ‘‘Small Business 

Administration, Disaster Loans Program Account’’, $25,000,000 

shall be used for loans under section 7(b)(2) of the Small Business 

Act for businesses located in an area for which the President declared a major disaster because of the hurricanes in the Gulf of 

Mexico in calendar year 2005, of which not to exceed $8,750,000 is 

for direct administrative expenses and may be transferred to and 

merged with ‘‘Small Business Administration, Salaries and Expenses’’ to carry out the disaster loan program of the Small Business Administration. 

CHAPTER 5 

DEPARTMENT OF HOMELAND SECURITY 

FEDERAL EMERGENCY MANAGEMENT AGENCY

DISASTER RELIEF

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Disaster Relief’’, $4,610,000,000, 

to remain available until expended: Provided, That $4,000,000 shall 

be transferred to ‘‘Office of Inspector General’’. 


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GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2501. (a) IN GENERAL.—Notwithstanding any other provision of law, including any agreement, the Federal share of assistance, including direct Federal assistance, provided for the States of 

Louisiana, Mississippi, Florida, Alabama, and Texas in connection 

with Hurricanes Katrina, Wilma, Dennis, and Rita under sections 

403, 406, 407, and 408 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5170b, 5172, 5173, and 5174) 

shall be 100 percent of the eligible costs under such sections. 

(b) APPLICABILITY.—The Federal share provided by subsection 

(a) shall apply to disaster assistance applied for before the date of 

enactment of this Act. 

SEC. 2502. (a) COMMUNITY DISASTER LOAN ACT.— (1) IN GENERAL.—Section 2(a) of the Community Disaster 

Loan Act of 2005 (Public Law 109–88) is amended by striking ‘‘Provided further, That notwithstanding section 417(c)(1) of the 

Stafford Act, such loans may not be canceled:’’. (2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) shall be effective on the date of enactment of the Community 

Disaster Loan Act of 2005 (Public Law 109–88). 

(b) EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT.—

(1) IN GENERAL.—Chapter 4 of title II of the Emergency 

Supplemental Appropriations Act for Defense, the Global War 

on Terror, and Hurricane Recovery, 2006 (Public Law 109–234) 

is amended under Federal Emergency Management Agency, 

‘‘Disaster Assistance Direct Loan Program Account’’ by striking 

‘‘Provided further, That notwithstanding section 417(c)(1) of 

such Act, such loans may not be canceled:’’. 

(2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) shall be effective on the date of enactment of the Emergency 

Supplemental Appropriations Act for Defense, the Global War 

on Terror, and Hurricane Recovery, 2006 (Public Law 109–234). 

SEC. 2503. (a) IN GENERAL.—Section 2401 of the Emergency 

Supplemental Appropriations Act for Defense, the Global War on 

Terror, and Hurricane Recovery, 2006 (Public Law 109–234) is 

amended by striking ‘‘12 months’’ and inserting ‘‘24 months’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall be effective on the date of enactment of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, 

and Hurricane Recovery, 2006 (Public Law 109–234). 

CHAPTER 6 

DEPARTMENT OF THE INTERIOR 

NATIONAL PARK SERVICE

HISTORIC PRESERVATION FUND

For an additional amount for the ‘‘Historic Preservation Fund’’

for necessary expenses related to the consequences of Hurricane 

Katrina and other hurricanes of the 2005 season, $10,000,000, to remain available until September 30, 2008: Provided, That the funds 

provided under this heading shall be provided to the State Historic 

Preservation Officer, after consultation with the National Park 

Service, for grants for disaster relief in areas of Louisiana impacted 


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by Hurricanes Katrina or Rita: Provided further, That grants shall 

be for the preservation, stabilization, rehabilitation, and repair of 

historic properties listed in or eligible for the National Register of 

Historic Places, for planning and technical assistance: Provided further, That grants shall only be available for areas that the President determines to be a major disaster under section 102(2) of the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5122(2)) due to Hurricanes Katrina or Rita: Provided further, That individual grants shall not be subject to a non-Federal 

matching requirement: Provided further, That no more than 5 percent of funds provided under this heading for disaster relief grants 

may be used for administrative expenses. 

GENERAL PROVISION—THIS CHAPTER 

(INCLUDING TRANSFER OF FUNDS)

SEC. 2601. Of the disaster relief funds from Public Law 109–

234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, ‘‘National Park 

Service—Historic Preservation Fund’’, for necessary expenses related 

to the consequences of Hurricane Katrina and other hurricanes of 

the 2005 season that were allocated to the State of Mississippi by 

the National Park Service, $500,000 is hereby transferred to the 

‘‘National Park Service—National Recreation and Preservation’’ appropriation: Provided, That these funds may be used to reconstruct 

destroyed properties that at the time of destruction were listed in the 

National Register of Historic Places and are otherwise qualified to 

receive these funds: Provided further, That the State Historic Preservation Officer certifies that, for the community where that destroyed 

property was located, the property is iconic to or essential to illustrating that community’s historic identity, that no other property in 

that community with the same associative historic value has survived, and that sufficient historical documentation exists to ensure 

an accurate reproduction. 

CHAPTER 7 

DEPARTMENT OF EDUCATION 

HIGHER EDUCATION

For an additional amount under part B of title VII of the Higher Education Act of 1965 (‘‘HEA’’) for institutions of higher education (as defined in section 101 or section 102(c) of that Act) that 

are located in an area in which a major disaster was declared in 

accordance with section 401 of the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act related to Hurricanes Katrina or 

Rita, $30,000,000: Provided, That such funds shall be available to 

the Secretary of Education only for payments to help defray the expenses (which may include lost revenue, reimbursement for expenses 

already incurred, and construction) incurred by such institutions of 

higher education that were forced to close, relocate or significantly 

curtail their activities as a result of damage directly caused by such 

hurricanes and for payments to enable such institutions to provide 

grants to students who attend such institutions for academic years 

beginning on or after July 1, 2006: Provided further, That such payments shall be made in accordance with criteria established by the 


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Secretary and made publicly available without regard to section 437 

of the General Education Provisions Act, section 553 of title 5, 

United States Code, or part B of title VII of the HEA. 

HURRICANE EDUCATION RECOVERY

For carrying out activities authorized by subpart 1 of part D of 

title V of the Elementary and Secondary Education Act of 1965, 

$30,000,000, to remain available until expended, for use by the 

States of Louisiana, Mississippi, and Alabama primarily for recruiting, retaining, and compensating new and current teachers, 

school principals, assistant principals, principal resident directors, 

assistant directors, and other educators, who commit to work for at 

least three years in school-based positions in public elementary and 

secondary schools located in an area with respect to which a major 

disaster was declared under section 401 of the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) by 

reason of Hurricane Katrina or Hurricane Rita, including through 

such mechanisms as paying salary premiums, performance bonuses, 

housing subsidies, signing bonuses, and relocation costs and providing loan forgiveness, with priority given to teachers and schoolbased school principals, assistant principals, principal resident directors, assistant directors, and other educators who previously 

worked or lived in one of the affected areas, are currently employed 

(or become employed) in such a school in any of the affected areas 

after those disasters, and commit to continue that employment for 

at least 3 years, Provided, That funds available under this heading 

to such States may also be used for 1 or more of the following activities: (1) to build the capacity, knowledge, and skill of teachers and 

school-based school principals, assistant principals, principal resident directors, assistant directors, and other educators in such public elementary and secondary schools to provide an effective education, including the design, adaptation, and implementation of 

high-quality formative assessments; (2) the establishment of partnerships with nonprofit entities with a demonstrated track record in 

recruiting and retaining outstanding teachers and other schoolbased school principals, assistant principals, principal resident directors, and assistant directors; and (3) paid release time for teachers and principals to identify and replicate successful practices from 

the fastest-improving and highest-performing schools: Provided further, That the Secretary of Education shall allocate amounts available under this heading among such States that submit applications; that such allocation shall be based on the number of public 

elementary and secondary schools in each State that were closed for 

19 days or more during the period beginning on August 29, 2005, 

and ending on December 31, 2005, due to Hurricane Katrina or 

Hurricane Rita; and that such States shall in turn allocate funds 

to local educational agencies, with priority given first to such agencies with the highest percentages of public elementary and secondary schools that are closed as a result of such hurricanes as of 

the date of enactment of this Act and then to such agencies with the 

highest percentages of public elementary and secondary schools with 

a student-teacher ratio of at least 25 to 1, and with any remaining 

amounts to be distributed to such agencies with demonstrated need, 

as determined by the State Superintendent of Education: Provided 

further, That, in the case of any State that chooses to use amounts 


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available under this heading for performance bonuses, not later 

than 60 days after the date of enactment of this Act, and in collaboration with local educational agencies, teachers’ unions, local principals’ organizations, local parents’ organizations, local business organizations, and local charter schools organizations, the State educational agency shall develop a plan for a rating system for performance bonuses, and if no agreement has been reached that is satisfactory to all consulting entities by such deadline, the State educational agency shall immediately send a letter notifying Congress 

and shall, not later than 30 days after such notification, establish 

and implement a rating system that shall be based on classroom observation and feedback more than once annually, conducted by multiple sources (including, but not limited to, principals and master 

teachers), and evaluated against research-based rubrics that use 

planning, instructional, and learning environment standards to 

measure teacher performance, except that the requirements of this 

proviso shall not apply to a State that has enacted a State law in 

2006 authorizing performance pay for teachers. 

PROGRAMS TO RESTART SCHOOL OPERATIONS

Funds made available under section 102 of the Hurricane Education Recovery Act (title IV of division B of Public Law 109–148) 

may be used by the States of Louisiana, Mississippi, Alabama, and 

Texas, in addition to the uses of funds described in section 102(e), 

for the following costs: (1) recruiting, retaining, and compensating 

new and current teachers, school principals, assistant principals, 

principal resident directors, assistant directors, and other educators 

for school-based positions in public elementary and secondary 

schools impacted by Hurricane Katrina or Hurricane Rita, including through such mechanisms as paying salary premiums, performance bonuses, housing subsidies, signing bonuses, and relocation 

costs and providing loan forgiveness; (2) activities to build the capacity, knowledge, and skills of teachers and school-based school 

principals, assistant principals, principal resident directors, assistant directors, and other educators in such public elementary and 

secondary schools to provide an effective education, including the 

design, adaptation, and implementation of high-quality formative 

assessments; (3) the establishment of partnerships with nonprofit 

entities with a demonstrated track record in recruiting and retaining outstanding teachers and school-based school principals, assistant principals, principal resident directors, and assistant directors; 

and (4) paid release time for teachers and principals to identify and 

replicate successful practices from the fastest-improving and highest-performing schools. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2701. Section 105(b) of title IV of division B of Public Law 

109–148 is amended by adding at the end the following new sentence: ‘‘With respect to the program authorized by section 102 of this 

Act, the waiver authority in subsection (a) of this section shall be 

available until the end of fiscal year 2008.’’ SEC. 2702. Notwithstanding section 2002(c) of the Social Security Act (42 U.S.C. 1397a(c)), funds made available under the heading ‘‘Social Services Block Grant’’ in division B of Public Law 109–


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148 shall be available for expenditure by the States through the end 

of fiscal year 2009. 

SEC. 2703. (a) In the event that Louisiana, Mississippi, Alabama, or Texas fails to meet its match requirement with funds appropriated in fiscal years 2006 or 2007, for fiscal years 2008 and 

2009, the Secretary of Health and Human Services may waive the 

application of section 2617(d)(4) of the Public Health Service Act for 

Louisiana, Mississippi, Alabama, and Texas. 

(b) The Secretary may not exercise the waiver authority available under subsection (a) to allow a grantee to provide less than a 

25 percent matching grant. 

(c) For grant years beginning in 2008, Louisiana, Mississippi, 

Alabama, and Texas and any eligible metropolitan area in Louisiana, Mississippi, Alabama, and Texas shall comply with each of 

the applicable requirements under title XXVI of the Public Health 

Service Act (42 U.S.C. 300ff–11 et seq.). 

CHAPTER 8 

DEPARTMENT OF TRANSPORTATION 

FEDERAL HIGHWAY ADMINISTRATION

FEDERAL-AID HIGHWAYS

EMERGENCY RELIEF PROGRAM

(INCLUDING RESCISSION OF FUNDS)

For an additional amount for the Emergency Relief Program as 

authorized under section 125 of title 23, United States Code, 

$682,942,000, to remain available until expended: Provided, That 

section 125(d)(1) of title 23, United States Code, shall not apply to 

emergency relief projects that respond to damage caused by the 

2005–2006 winter storms in the State of California: Provided further, That of the unobligated balances of funds apportioned to each 

State under chapter 1 of title 23, United States Code, $682,942,000 

are rescinded: Provided further, That such rescission shall not 

apply to the funds distributed in accordance with sections 130(f) 

and 104(b)(5) of title 23, United States Code; sections 133(d)(1) and 

163 of such title, as in effect on the day before the date of enactment 

of Public Law 109–59; and the first sentence of section 133(d)(3)(A) 

of such title. 

FEDERAL TRANSIT ADMINISTRATION

FORMULA GRANTS

For an additional amount to be allocated by the Secretary to recipients of assistance under chapter 53 of title 49, United States 

Code, directly affected by Hurricanes Katrina and Rita, 

$35,000,000, for the operating and capital costs of transit services, 

to remain available until expended: Provided, That the Federal 

share for any project funded from this amount shall be 100 percent. 


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF INSPECTOR GENERAL

For an additional amount for the Office of Inspector General, 

for the necessary costs related to the consequences of Hurricanes 

Katrina and Rita, $7,000,000, to remain available until expended. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 2801. The third proviso under the heading ‘‘Department of 

Housing and Urban Development—Public and Indian Housing—

Tenant-Based Rental Assistance’’ in chapter 9 of title I of division 

B of Public Law 109–148 (119 Stat. 2779) is amended by striking 

‘‘for up to 18 months’’ and inserting ‘‘until December 31, 2007’’. 

SEC. 2802. Section 21033 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by adding after the third proviso: ‘‘: 

Provided further, That notwithstanding the previous proviso, except 

for applying the 2007 Annual Adjustment Factor and making any 

other specified adjustments, public housing agencies specified in 

category 1 below shall receive funding for calendar year 2007 based 

on the higher of the amounts the agencies would receive under the 

previous proviso or the amounts the agencies received in calendar 

year 2006, and public housing agencies specified in categories 2 and 

3 below shall receive funding for calendar year 2007 equal to the 

amounts the agencies received in calendar year 2006, except that 

public housing agencies specified in categories 1 and 2 below shall 

receive funding under this proviso only if, and to the extent that, 

any such public housing agency submits a plan, approved by the 

Secretary, that demonstrates that the agency can effectively use 

within 12 months the funding that the agency would receive under 

this proviso that is in addition to the funding that the agency would 

receive under the previous proviso: (1) public housing agencies that 

are eligible for assistance under section 901 in Public Law 109–148 

(119 Stat. 2781) or are located in the same counties as those eligible 

under section 901 and operate voucher programs under section 8(o) 

of the U.S. Housing Act of 1937 but do not operate public housing 

under section 9 of such Act, and any public housing agency that 

otherwise qualifies under this category must demonstrate that they 

have experienced a loss of rental housing stock as a result of the 

2005 hurricanes; (2) public housing agencies that would receive less 

funding under the previous proviso than they would receive under 

this proviso and that have been placed in receivership or the Secretary has declared to be in breach of an Annual Contributions Contract by June 1, 2007; and (3) public housing agencies that spent 

more in calendar year 2006 than the total of the amounts of any 

such public housing agency’s allocation amount for calendar year 

2006 and the amount of any such public housing agency’s available 

housing assistance payments undesignated funds balance from calendar year 2005 and the amount of any such public housing agency’s available administrative fees undesignated funds balance 

through calendar year 2006’’. 

SEC. 2803. Section 901 of Public Law 109–148 is amended by 

deleting ‘‘calendar year 2006’’ and inserting ‘‘calendar years 2006 

and 2007’’. 


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TITLE III 

OTHER EMERGENCY APPROPRIATIONS 

CHAPTER 1 

DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facilities’’, $60,400,000, to remain available until September 30, 2008: 

Provided, That the National Marine Fisheries Service shall cause 

such amounts to be distributed among eligible recipients of assistance for the commercial fishery failure designated under section 

312(a) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(a)) and declared by the Secretary of 

Commerce on August 10, 2006. 

CHAPTER 2 

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

OPERATION AND MAINTENANCE

For an additional amount for ‘‘Operation and Maintenance’’ to 

dredge navigation channels related to the consequences of hurricanes of the 2005 season, $3,000,000, to remain available until expended. 

FLOOD CONTROL AND COASTAL EMERGENCIES

For an additional amount for ‘‘Flood Control and Coastal 

Emergencies’’, as authorized by section 5 of the Act of August 18, 

1941 (33 U.S.C. 701n), to support emergency operations, repairs and 

other activities in response to flood, drought and earthquake emergencies as authorized by law, $150,000,000, to remain available 

until expended: Provided, That the Chief of Engineers, acting 

through the Assistant Secretary of the Army for Civil Works, shall 

provide a monthly report to the House and Senate Committees on 

Appropriations detailing the allocation and obligation of these 

funds, beginning not later than 60 days after enactment of the Act. 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

For an additional amount for ‘‘Water and Related Resources’’, 

$18,000,000, to remain available until expended for drought assistance: Provided, That drought assistance may be provided under the 

Reclamation States Drought Emergency Act or other applicable Reclamation authorities to assist drought plagued areas of the West. 


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CHAPTER 3 

DEPARTMENT OF THE INTERIOR 

BUREAU OF LAND MANAGEMENT

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Wildland Fire Management’’, $100,000,000, to remain available until expended, for urgent 

wildland fire suppression activities: Provided, That such funds 

shall only become available if funds previously provided for 

wildland fire suppression will be exhausted imminently and the 

Secretary of the Interior notifies the House and Senate Committees 

on Appropriations in writing of the need for these additional funds: 

Provided further, That such funds are also available for repayment 

to other appropriations accounts from which funds were transferred 

for wildfire suppression. 

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

For an additional amount for ‘‘Resource Management’’ for the 

detection of highly pathogenic avian influenza in wild birds, including the investigation of morbidity and mortality events, targeted 

surveillance in live wild birds, and targeted surveillance in huntertaken birds, $7,398,000, to remain available until September 30, 

2008. 

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for ‘‘Operation of the National Park 

System’’ for the detection of highly pathogenic avian influenza in 

wild birds, including the investigation of morbidity and mortality 

events, $525,000, to remain available until September 30, 2008. 

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

For an additional amount for ‘‘Surveys, Investigations, and Research’’ for the detection of highly pathogenic avian influenza in 

wild birds, including the investigation of morbidity and mortality 

events, targeted surveillance in live wild birds, and targeted surveillance in hunter-taken birds, $5,270,000, to remain available until 

September 30, 2008. 

DEPARTMENT OF AGRICULTURE 

FOREST SERVICE

NATIONAL FOREST SYSTEM

For an additional amount for ‘‘National Forest System’’ for the 

implementation of a nationwide initiative to increase protection of 

national forest lands from drug-trafficking organizations, including 


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funding for additional law enforcement personnel, training, equipment and cooperative agreements, $12,000,000, to remain available 

until expended. 

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Wildland Fire Management’’, 

$400,000,000, to remain available until expended, for urgent 

wildland fire suppression activities: Provided, That such funds 

shall only become available if funds provided previously for 

wildland fire suppression will be exhausted imminently and the 

Secretary of Agriculture notifies the House and Senate Committees 

on Appropriations in writing of the need for these additional funds: 

Provided further, That such funds are also available for repayment 

to other appropriation accounts from which funds were transferred 

for wildfire suppression. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 3301. (a) For fiscal year 2007, payments shall be made 

from any revenues, fees, penalties, or miscellaneous receipts described in sections 102(b)(3) and 103(b)(2) of the Secure Rural 

Schools and Community Self-Determination Act of 2000 (Public 

Law 106–393; 16 U.S.C. 500 note), not to exceed $100,000,000, and 

the payments shall be made, to the maximum extent practicable, in 

the same amounts, for the same purposes, and in the same manner 

as were made to States and counties in 2006 under that Act. 

(b) There is appropriated $425,000,000, to remain available 

until December 31, 2007, to be used to cover any shortfall for payments made under this section from funds not otherwise appropriated. 

(c) Titles II and III of Public Law 106–393 are amended, effective September 30, 2006, by striking ‘‘2006’’ and ‘‘2007’’ each place 

they appear and inserting ‘‘2007’’ and ‘‘2008’’, respectively. 

CHAPTER 4 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH AND TRAINING

For an additional amount for ‘‘Department of Health and 

Human Services, Centers for Disease Control and Prevention, Disease Control, Research and Training’’, to carry out section 501 of the 

Federal Mine Safety and Health Act of 1977 and section 6 of the 

Mine Improvement and New Emergency Response Act of 2006, 

$13,000,000 for research to develop mine safety technology, including necessary repairs and improvements to leased laboratories: Provided, That progress reports on technology development shall be 

submitted to the House and Senate Committees on Appropriations 

and the Committee on Health, Education, Labor and Pensions of 

the Senate and the Committee on Education and Labor of the House 

of Representatives on a quarterly basis: Provided further, That the 


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amount provided under this heading shall remain available until 

September 30, 2008. 

For an additional amount for ‘‘Department of Health and 

Human Services, Centers for Disease Control and Prevention, Disease Control, Research and Training’’, to carry out activities under 

section 5011(b) of the Emergency Supplemental Appropriations Act 

to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (Public Law 109–148), $50,000,000, to remain available 

until expended. 

ADMINISTRATION FOR CHILDREN AND FAMILIES

LOW-INCOME HOME ENERGY ASSISTANCE

For an additional amount for ‘‘Low-Income Home Energy Assistance’’ under section 2604(a) through (d) of the Low-Income Home 

Energy Assistance Act of 1981 (42 U.S.C. 8623(a) through (d)), 

$200,000,000. 

For an additional amount for ‘‘Low-Income Home Energy Assistance’’ under section 2604(e) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), $200,000,000. 

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘Public Health and Social Services Emergency Fund’’ to prepare for and respond to an influenza 

pandemic, $625,000,000, to remain available until expended: Provided, That this amount shall be for activities including the development and purchase of vaccine, antivirals, necessary medical supplies, diagnostics, and other surveillance tools: Provided further, 

That products purchased with these funds may, at the discretion of 

the Secretary of Health and Human Services, be deposited in the 

Strategic National Stockpile: Provided further, That notwithstanding section 496(b) of the Public Health Service Act, funds may 

be used for the construction or renovation of privately owned facilities for the production of pandemic vaccine and other biologicals, 

where the Secretary finds such a contract necessary to secure sufficient supplies of such vaccines or biologicals: Provided further, That 

funds appropriated herein may be transferred to other appropriation accounts of the Department of Health and Human Services, as 

determined by the Secretary to be appropriate, to be used for the 

purposes specified in this sentence. 

COVERED COUNTERMEASURE PROCESS FUND

For carrying out section 319F–4 of the Public Health Service 

Act (42 U.S.C. 247d–6e) to compensate individuals for injuries 

caused by H5N1 vaccine, in accordance with the declaration regarding avian influenza viruses issued by the Secretary of Health and 

Human Services on January 26, 2007, pursuant to section 319F–

3(b) of such Act (42 U.S.C. 247d–6d(b)), $25,000,000, to remain 

available until expended. 


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GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING RESCISSIONS)

SEC. 3401. (a). From unexpended balances available for the 

Training and Employment Services account under the Department 

of Labor, the following amounts are hereby rescinded: 

(1) $3,589,000 transferred pursuant to the 2001 Emergency 

Supplemental Appropriations Act for Recovery from and Response to Terrorist Attacks on the United States (Public Law 

107–38); 

(2) $834,000 transferred pursuant to the Emergency Supplemental Appropriations Act of 1994 (Public Law 103–211); 

and 

(3) $71,000 for the Consortium for Worker Education pursuant to the Emergency Supplemental Act, 2002 (Public Law 

107–117). 

(b) From unexpended balances available for the State Unemployment Insurance and Employment Service Operations account 

under the Department of Labor pursuant to the Emergency Supplemental Act, 2002 (Public Law 107–117), $4,100,000 are hereby rescinded. 

SEC. 3402. (a) For an additional amount under ‘‘Department of 

Education, Safe Schools and Citizenship Education’’, $8,594,000 

shall be available for Safe and Drug-Free Schools National Programs for competitive grants to local educational agencies to address youth violence and related issues. 

(b) The competition under subsection (a) shall be limited to 

local educational agencies that operate schools currently identified 

as persistently dangerous under section 9532 of the Elementary and 

Secondary Education Act of 1965. 

CHAPTER 5 

LEGISLATIVE BRANCH 

ARCHITECT OF THE CAPITOL 

CAPITOL POWER PLANT

For an additional amount for ‘‘Capitol Power Plant’’, 

$50,000,000, for utility tunnel repairs and asbestos abatement, to 

remain available until September 30, 2011: Provided, That the Architect of the Capitol may not obligate any of the funds appropriated under this heading without approval of an obligation plan 

by the Committees on Appropriations of the Senate and House of 

Representatives. 

CHAPTER 6 

DEPARTMENT OF VETERANS AFFAIRS 

VETERANS HEALTH ADMINISTRATION

MEDICAL SERVICES

For an additional amount for ‘‘Medical Services’’, $466,778,000, 

to remain available until expended, of which $30,000,000 shall be 


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for the establishment of at least one new Level I comprehensive 

polytrauma center; $9,440,000 shall be for the establishment of 

polytrauma residential transitional rehabilitation programs; 

$10,000,000 shall be for additional transition caseworkers; 

$20,000,000 shall be for substance abuse treatment programs; 

$20,000,000 shall be for readjustment counseling; $10,000,000 shall 

be for blind rehabilitation services; $100,000,000 shall be for enhancements to mental health services; $8,000,000 shall be for 

polytrauma support clinic teams; $5,356,000 shall be for additional 

polytrauma points of contact; $228,982,000 shall be for treatment of 

Operation Enduring Freedom and Operation Iraqi Freedom veterans; and $25,000,000 shall be for prosthetics. 

MEDICAL ADMINISTRATION

For an additional amount for ‘‘Medical Administration’’, $250,000,000, to remain available until expended. 

MEDICAL FACILITIES

For an additional amount for ‘‘Medical Facilities’’, $595,000,000, to remain available until expended, of which 

$45,000,000 shall be used for facility and equipment upgrades at 

the Department of Veterans Affairs polytrauma network sites; and 

$550,000,000 shall be for non-recurring maintenance as identified 

in the Department of Veterans Affairs Facility Condition Assessment 

report: Provided, That the amount provided under this heading for 

non-recurring maintenance shall be allocated in a manner not subject to the Veterans Equitable Resource Allocation: Provided further, 

That within 30 days of enactment of this Act the Secretary shall 

submit to the Committees on Appropriations of both Houses of Congress an expenditure plan, by project, for non-recurring maintenance prior to obligation: Provided further, That semi-annually, on 

October 1 and April 1, the Secretary shall submit to the Committees 

on Appropriations of both Houses of Congress a report on the status 

of funding for non-recurring maintenance, including obligations 

and unobligated balances for each project identified in the expenditure plan. 

MEDICAL AND PROSTHETIC RESEARCH

For an additional amount for ‘‘Medical and Prosthetic Research’’, $32,500,000, to remain available until expended, which 

shall be used for research related to the unique medical needs of returning Operation Enduring Freedom and Operation Iraqi Freedom 

veterans. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ‘‘General Operating Expenses’’, 

$83,200,000, to remain available until expended, of which 

$1,250,000 shall be for digitization of military records; $60,750,000 

shall be for expenses related to hiring and training new claims processing personnel; up to $1,200,000 for an independent study of the 

organizational structure, management and coordination processes, 


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including seamless transition, utilized by the Department of Veterans Affairs to provide health care and benefits to active duty personnel and veterans, including those returning Operation Enduring 

Freedom and Operation Iraqi Freedom veterans; and $20,000,000 

shall be for disability examinations: Provided, That not to exceed 

$1,250,000 of the amount appropriated under this heading may be 

transferred to the Department of Defense for the digitization of military records used to verify stressors for benefits claims. 

INFORMATION TECHNOLOGY SYSTEMS

For an additional amount for ‘‘Information Technology Systems’’, $35,100,000, to remain available until expended, of which 

$20,000,000 shall be for information technology support and improvements for processing of Operation Enduring Freedom and Operation Iraqi Freedom veterans benefits claims, including making 

electronic Department of Defense medical records available for 

claims processing and enabling electronic benefits applications by 

veterans; and $15,100,000 shall be for electronic data breach remediation and prevention. 

CONSTRUCTION, MINOR PROJECTS

For an additional amount for ‘‘Construction, Minor Projects’’, 

$326,000,000, to remain available until expended, of which up to 

$36,000,000 shall be for construction costs associated with the establishment of polytrauma residential transitional rehabilitation 

programs. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 3601. The Director of the Congressional Budget Office 

shall, not later than November 15, 2007, submit to the Committees 

on Appropriations of the House of Representatives and the Senate 

a report projecting appropriations necessary for the Departments of 

Defense and Veterans Affairs to continue providing necessary health 

care to veterans of the conflicts in Iraq and Afghanistan. The projections should span several scenarios for the duration and number of 

forces deployed in Iraq and Afghanistan, and more generally, for 

the long-term health care needs of deployed troops engaged in the 

global war on terrorism over the next ten years. 

SEC. 3602. Notwithstanding any other provision of law, appropriations made by Public Law 110–5, which the Secretary of Veterans Affairs contributes to the Department of Defense/Department 

of Veterans Affairs Health Care Sharing Incentive Fund under the 

authority of section 8111(d) of title 38, United States Code, shall remain available until expended for any purpose authorized by section 

8111 of title 38, United States Code. 

SEC. 3603. (a)(1) Notwithstanding any other provision of law, 

the Secretary of Veterans Affairs (referred to in this section as the 

‘‘Secretary’’) may convey to the State of Texas, without consideration, all right, title, and interest of the United States in and to the 

parcel of real property comprising the location of the Marlin, Texas, 

Department of Veterans Affairs Medical Center. 

(2) The property conveyed under paragraph (1) shall be used by 

the State of Texas for the purposes of a prison. 


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(b) In carrying out the conveyance under subsection (a), the Secretary—

(1) shall not be required to comply with, and shall not be 

held liable under, any Federal law (including a regulation) relating to the environment or historic preservation; but 

(2) may, at the discretion of the Secretary, conduct environmental cleanup on the parcel to be conveyed, at a cost not to 

exceed $500,000, using amounts made available for environmental cleanup of sites under the jurisdiction of the Secretary. 

TITLE IV 

OTHER MATTERS 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE 

FARM SERVICE AGENCY

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ of the 

Farm Service Agency, $37,500,000, to remain available until September 30, 2008: Provided, That this amount shall only be available 

for network and database/application stabilization. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4101. Of the funds made available through appropriations 

to the Food and Drug Administration for fiscal year 2007, not less 

than $4,000,000 shall be for the Office of Women’s Health of such 

Administration. 

SEC. 4102. None of the funds made available to the Department 

of Agriculture for fiscal year 2007 may be used to implement the 

risk-based inspection program in the 30 prototype locations announced on February 22, 2007, by the Under Secretary for Food 

Safety, or at any other locations, until the USDA Office of Inspector 

General has provided its findings to the Food Safety and Inspection 

Service and the Committees on Appropriations of the House of Representatives and the Senate on the data used in support of the development and design of the risk-based inspection program and FSIS 

has addressed and resolved issues identified by OIG. 

CHAPTER 2 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4201. Hereafter, federal employees at the National Energy 

Technology Laboratory shall be classified as inherently governmental for the purpose of the Federal Activities Inventory Reform 

Act of 1998 (31 U.S.C. 501 note). 

SEC. 4202. PROHIBITION ON CERTAIN USES OF FUNDS BY BPA. 

None of the funds made available under this or any other Act shall 

be used during fiscal year 2007 to make, or plan or prepare to 

make, any payment on bonds issued by the Administrator of the 

Bonneville Power Administration (referred in this section as the 


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‘‘Administrator’’) or for an appropriated Federal Columbia River 

Power System investment, if the payment is both— (1) greater, during any fiscal year, than the payments calculated in the rate hearing of the Administrator to be made 

during that fiscal year using the repayment method used to establish the rates of the Administrator as in effect on October 1, 

2006; and 

(2) based or conditioned on the actual or expected net secondary power sales receipts of the Administrator. 

CHAPTER 3 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4301. (a) Section 102(a)(3)(B) of the Help America Vote Act 

of 2002 (42 U.S.C. 15302(a)(3)(B)) is amended by striking ‘‘January 

1, 2006’’ and inserting ‘‘March 1, 2008’’. (b) The amendment made by subsection (a) shall take effect as 

if included in the enactment of the Help America Vote Act of 2002. 

SEC. 4302. The structure of any of the offices or components 

within the Office of National Drug Control Policy shall remain as 

they were on October 1, 2006. None of the funds appropriated or 

otherwise made available in the Continuing Appropriations Resolution, 2007 (Public Law 110–5) may be used to implement a reorganization of offices within the Office of National Drug Control Policy 

without the explicit approval of the Committees on Appropriations 

of the House of Representatives and the Senate. 

SEC. 4303. From the amount provided by section 21067 of the 

Continuing Appropriations Resolution, 2007 (Public Law 110–5), 

the National Archives and Records Administration may obligate 

monies necessary to carry out the activities of the Public Interest Declassification Board. 

SEC. 4304. Notwithstanding the notice requirement of the 

Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act, 2006, 119 Stat. 2509 (Public Law 109–115), as continued in section 104 of the Continuing Appropriations Resolution, 

2007 (Public Law 110–5), the District of Columbia Courts may reallocate not more than $1,000,000 of the funds provided for fiscal 

year 2007 under the Federal Payment to the District of Columbia 

Courts for facilities among the items and entities funded under that 

heading for operations. 

SEC. 4305. (a) Not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury, in coordination with 

the Securities and Exchange Commission and in consultation with 

the Departments of State and Energy, shall prepare and submit to 

the Senate Committee on Appropriations, the House Committee on 

Appropriations, the Senate Committee on Banking, Housing, and 

Urban Affairs, the House Committee on Financial Services, the Senate Foreign Relations Committee, and the House Foreign Affairs 

Committee a written report, which may include a classified annex, 

containing the names of companies which either directly or through 

a parent or subsidiary company, including partly-owned subsidiaries, are known to conduct significant business operations in 

Sudan relating to natural resource extraction, including oil-related 

activities and mining of minerals. The reporting provision shall not 


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apply to companies operating under licenses from the Office of Foreign Assets Control or otherwise expressly exempted under United 

States law from having to obtain such licenses in order to operate 

in Sudan. 

(b) Not later than 45 days following the submission to Congress 

of the list of companies conducting business operations in Sudan relating to natural resource extraction as required above, the General 

Services Administration shall determine whether the United States 

Government has an active contract for the procurement of goods or 

services with any of the identified companies, and provide notification to the appropriate committees of Congress, which may include 

a classified annex, regarding the companies, nature of the contract, 

and dollar amounts involved. 

(INCLUDING RESCISSION)

SEC. 4306. (a) Of the funds provided for the General Services 

Administration, ‘‘Office of Inspector General’’ in section 21061 of the 

Continuing Appropriations Resolution, 2007 (division B of Public 

Law 109–289, as amended by Public Law 110–5), $4,500,000 are rescinded. 

(b) For an additional amount for the General Services Administration, ‘‘Office of Inspector General’’, $4,500,000, to remain available until September 30, 2008. 

SEC. 4307. Section 21073 of the Continuing Appropriations Resolution, 2007 (Public Law 110–5) is amended by adding a new subsection (j) as follows: 

‘‘(j) Notwithstanding section 101, any appropriation or funds 

made available to the District of Columbia pursuant to this division 

for ‘Federal Payment for Foster Care Improvement in the District of 

Columbia’ shall be available in accordance with an expenditure 

plan submitted by the Mayor of the District of Columbia not later 

than 60 days after the enactment of this section which details the 

activities to be carried out with such Federal Payment.’’. 

CHAPTER 4 

DEPARTMENT OF HOMELAND SECURITY 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4401. Not to exceed $30,000,000 from unobligated balances remaining from prior appropriations for United States Coast 

Guard, ‘‘Retired Pay’’, shall remain available until expended in the 

account and for the purposes for which the appropriations were provided, including the payment of obligations otherwise chargeable to 

lapsed or current appropriations for this purpose. 

SEC. 4402. (a) IN GENERAL.—Any contract, subcontract, task or 

delivery order described in subsection (b) shall contain the following: 

(1) A requirement for a technical review of all designs, design changes, and engineering change proposals, and a requirement to specifically address all engineering concerns identified 

in the review before the obligation of further funds may occur. 

(2) A requirement that the Coast Guard maintain technical 

warrant holder authority, or the equivalent, for major assets. 


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(3) A requirement that no procurement subject to subsection 

(b) for lead asset production or the implementation of a major 

design change shall be entered into unless an independent third 

party with no financial interest in the development, construction, or modification of any component of the asset, selected by 

the Commandant, determines that such action is advisable. 

(4) A requirement for independent life-cycle cost estimates 

of lead assets and major design and engineering changes. 

(5) A requirement for the measurement of contractor and 

subcontractor performance based on the status of all work performed. For contracts under the Integrated Deepwater Systems 

program, such requirement shall include a provision that links 

award fees to successful acquisition outcomes (which shall be 

defined in terms of cost, schedule, and performance). 

(6) A requirement that the Commandant of the Coast 

Guard assign an appropriate officer or employee of the Coast 

Guard to act as chair of each integrated product team and 

higher-level team assigned to the oversight of each integrated 

product team. 

(7) A requirement that the Commandant of the Coast 

Guard may not award or issue any contract, task or delivery 

order, letter contract modification thereof, or other similar contract, for the acquisition or modification of an asset under a 

procurement subject to subsection (b) unless the Coast Guard 

and the contractor concerned have formally agreed to all terms 

and conditions or the head of contracting activity for the Coast 

Guard determines that a compelling need exists for the award 

or issue of such instrument. 

(b) CONTRACTS, SUBCONTRACTS, TASK AND DELIVERY ORDERS

COVERED.—Subsection (a) applies to—

(1) any major procurement contract, first-tier subcontract, 

delivery or task order entered into by the Coast Guard; 

(2) any first-tier subcontract entered into under such a contract; 

(3) any task or delivery order issued pursuant to such a 

contract or subcontract. 

(c) EXPENDITURE OF DEEPWATER FUNDS.—Of the funds available for the Integrated Deepwater Systems program, $650,000,000 

may not be obligated until the Committees on Appropriations of the 

Senate and the House of Representatives receive an expenditure 

plan directly from the Coast Guard that—

(1) defines activities, milestones, yearly costs, and life-cycle 

costs for each procurement of a major asset, including an independent cost estimate for each; 

(2) identifies life-cycle staffing and training needs of Coast 

Guard project managers and of procurement and contract staff; 

(3) identifies competition to be conducted in each procurement; 

(4) describes procurement plans that do not rely on a single 

industry entity or contract; 

(5) contains very limited indefinite delivery/indefinite 

quantity contracts and explains the need for any indefinite delivery/indefinite quantity contracts; 


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(6) complies with all applicable acquisition rules, requirements, and guidelines, and incorporates the best systems acquisition management practices of the Federal Government; 

(7) complies with the capital planning and investment control requirements established by the Office of Management and 

Budget, including circular A–11, part 7; 

(8) includes a certification by the head of contracting activity for the Coast Guard and the Chief Procurement Officer of 

the Department of Homeland Security that the Coast Guard has 

established sufficient controls and procedures and has sufficient 

staffing to comply with all contracting requirements, and that 

any conflicts of interest have been sufficiently addressed; 

(9) includes a description of the process used to act upon 

deviations from the contractually specified performance requirements and clearly explains the actions taken on such deviations; 

(10) includes a certification that the Assistant Commandant of the Coast Guard for Engineering and Logistics is 

designated as the technical authority for all engineering, design, and logistics decisions pertaining to the Integrated Deepwater Systems program; and 

(11) identifies progress in complying with the requirements 

of subsection (a). 

(d) REPORTS.—(1) Not later than 30 days after the date of enactment of this Act, the Commandant of the Coast Guard shall submit to the Committees on Appropriations of the Senate and the 

House of Representatives; the Committee on Commerce, Science and 

Transportation of the Senate; and the Committee on Transportation 

and Infrastructure of the House of Representatives: (i) a report on 

the resources (including training, staff, and expertise) required by 

the Coast Guard to provide appropriate management and oversight 

of the Integrated Deepwater Systems program; and (ii) a report on 

how the Coast Guard will utilize full and open competition for any 

contract that provides for the acquisition or modification of assets 

under, or in support of, the Integrated Deepwater Systems program, 

entered into after the date of enactment of this Act; and (2) within 

30 days following the submission of the expenditure plan required 

under subsection (c), the Government Accountability Office shall review the plan and brief the Committees on Appropriations of the 

Senate and the House of Representatives on its findings. 

SEC. 4403. None of the funds provided in this Act or any other 

Act may be used to alter or reduce operations within the Civil Engineering Program of the Coast Guard nationwide, including the civil 

engineering units, facilities, design and construction centers, maintenance and logistics command centers, the Coast Guard Academy 

and the Coast Guard Research and Development Center, except as 

specifically authorized by a statute enacted after the date of enactment of this Act. 

(INCLUDING RESCISSIONS OF FUNDS)

SEC. 4404. (a) RESCISSIONS.—The following unobligated balances made available pursuant to section 505 of Public Law 109–

90 are rescinded: $1,200,962 from the ‘‘Office of the Secretary and 

Executive Management’’; $512,855 from the ‘‘Office of the Under 

Secretary for Management’’; $461,874 from the ‘‘Office of the Chief 


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Information Officer’’; $45,080 from the ‘‘Office of the Chief Financial 

Officer’’; $968,211 from Preparedness ‘‘Management and Administration’’; $1,215,486 from Science and Technology ‘‘Management 

and Administration’’; $450,000 from United States Secret Service ‘‘Salaries and Expenses’’; $450,000 from Federal Emergency Management Agency ‘‘Administrative and Regional Operations’’; and 

$25,595,532 from United States Coast Guard ‘‘Operating Expenses’’. (b) ADDITIONAL APPROPRIATIONS.— (1) For an additional amount for United States Coast 

Guard ‘‘Acquisition, Construction, and Improvements’’, $30,000,000, to remain available until September 30, 2009, to 

mitigate the Service’s patrol boat operational gap; and 

(2) For an additional amount for the ‘‘Office of the Under 

Secretary for Management’’, $900,000, for an independent study 

to compare the Department of Homeland Security senior career 

and political staffing levels and senior career training programs with those of similarly structured cabinet-level agencies. 

SEC. 4405. (a) IN GENERAL.—With respect to contracts entered 

into after June 1, 2007, and except as provided in subsection (b), no 

entity performing lead system integrator functions in the acquisition 

of a major system by the Department of Homeland Security may 

have any direct financial interest in the development or construction 

of any individual system or element of any system of systems. 

(b) EXCEPTION.—An entity described in subsection (a) may have 

a direct financial interest in the development or construction of an 

individual system or element of a system of systems if— (1) the Secretary of Homeland Security certifies to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Homeland Security of the House 

of Representatives, the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on 

Homeland Security and Governmental Affairs of the Senate, 

and the Committee on Commerce, Science and Transportation 

of the Senate that—

(A) the entity was selected by the Department of Homeland Security as a contractor to develop or construct the 

system or element concerned through the use of competitive 

procedures; and 

(B) the Department took appropriate steps to prevent 

any organizational conflict of interest in the selection process; or 

(2) the entity was selected by a subcontractor to serve as a 

lower-tier subcontractor, through a process over which the entity exercised no control. 

(c) CONSTRUCTION.—Nothing in this section shall be construed 

to preclude an entity described in subsection (a) from performing 

work necessary to integrate two or more individual systems or elements of a system of systems with each other. 

(d) REGULATIONS UPDATE.—Not later than June 1, 2007, the 

Secretary of Homeland Security shall update the acquisition regulations of the Department of Homeland Security in order to specify 

fully in such regulations the matters with respect to lead system integrators set forth in this section. Included in such regulations shall 

be (1) a precise and comprehensive definition of the term ‘‘lead system integrator’’, modeled after that used by the Department of DeVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00054 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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fense, and (2) a specification of various types of contracts and fee 

structures that are appropriate for use by lead system integrators in 

the production, fielding, and sustainment of complex systems. 

CHAPTER 5 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4501. Section 20515 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by inserting before the period: ‘‘; and 

of which, not to exceed $143,628,000 shall be available for contract 

support costs under the terms and conditions contained in Public 

Law 109–54’’. SEC. 4502. Section 20512 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by inserting after the first dollar 

amount: ‘‘, of which not to exceed $7,300,000 shall be transferred to 

the ‘Indian Health Facilities’ account; the amount in the second pro- viso shall be $18,000,000; the amount in the third proviso shall be 

$525,099,000; the amount in the ninth proviso shall be 

$269,730,000; and the $15,000,000 allocation of funding under the 

eleventh proviso shall not be required’’. SEC. 4503. Section 20501 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by inserting after ‘‘$55,663,000’’ the 

following: ‘‘of which $13,000,000 shall be for Save America’s Treasures’’. 

SEC. 4504. Funds made available to the United States Fish and 

Wildlife Service for fiscal year 2007 under the heading ‘‘Land Acquisition’’ may be used for land conservation partnerships authorized by the Highlands Conservation Act of 2004. 

CHAPTER 6 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

NATIONAL INSTITUTES OF HEALTH

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

(TRANSFER OF FUNDS)

Of the amount provided by the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) for ‘‘National Institute of Allergy and Infectious 

Diseases’’, $49,500,000 shall be transferred to ‘‘Public Health and 

Social Services Emergency Fund’’ to carry out activities relating to 

advanced research and development as provided by section 319L of 

the Public Health Service Act. 

OFFICE OF THE DIRECTOR

(TRANSFER OF FUNDS)

Of the amount provided by the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) for ‘‘Office of the Director’’, $49,500,000 shall be 

transferred to ‘‘Public Health and Social Services Emergency Fund’’


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to carry out activities relating to advanced research and development as provided by section 319L of the Public Health Service Act. 

NATIONAL COUNCIL ON DISABILITY

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, 

$300,000, to remain available until expended, for necessary expenses 

related to the requirements of the Post-Katrina Emergency Management Reform Act of 2006, as enacted by the Department of Homeland Security Appropriations Act, 2007 (Public Law 109–295). 

GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING TRANSFERS OF FUNDS AND RESCISSION)

SEC. 4601. Section 20602 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by inserting the following after 

‘‘$5,000,000’’: ‘‘(together with an additional $7,000,000 which shall 

be transferred by the Pension Benefit Guaranty Corporation as an 

authorized administrative cost), to remain available through September 30, 2008,’’. 

SEC. 4602. Section 20607 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by inserting ‘‘of which $9,666,000 

shall be for the Women’s Bureau,’’ after ‘‘for child labor activities,’’. 

SEC. 4603. Of the amount provided for ‘‘Department of Health 

and Human Services, Health Resources and Services Administration, Health Resources and Services’’ in the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as 

amended by Public Law 110–5), $23,000,000 shall be for Poison 

Control Centers. 

SEC. 4604. From the amounts made available by the Continuing Appropriations Resolution, 2007 (division B of Public Law 

109–289, as amended by Public Law 110–5) for the Office of the 

Secretary, General Departmental Management under the Department of Health and Human Services, $1,000,000 are rescinded. 

SEC. 4605. Section 20625(b)(1) of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as 

amended by Public Law 110–5) is amended by—

(1) striking ‘‘$7,172,994,000’’ and inserting 

‘‘$7,176,431,000’’; 

(2) amending subparagraph (A) to read as follows: ‘‘(A) 

$5,454,824,000 shall be for basic grants under section 1124 of 

the Elementary and Secondary Education Act of 1965 (ESEA), 

of which up to $3,437,000 shall be available to the Secretary of 

Education on October 1, 2006, to obtain annually updated educational-agency-level census poverty data from the Bureau of 

the Census;’’; and 

(3) amending subparagraph (C) to read as follows: ‘‘(C) not 

to exceed $2,352,000 may be available for section 1608 of the 

ESEA and for a clearinghouse on comprehensive school reform 

under part D of title V of the ESEA;’’. 

SEC. 4606. The provision in the first proviso under the heading ‘‘Rehabilitation Services and Disability Research’’ in the Department 


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of Education Appropriations Act, 2006, relating to alternative financing programs under section 4(b)(2)(D) of the Assistive Technology Act of 1998 shall not apply to funds appropriated by the 

Continuing Appropriations Resolution, 2007. 

SEC. 4607. Notwithstanding sections 20639 and 20640 of the 

Continuing Appropriations Resolution, 2007, as amended by section 

2 of the Revised Continuing Appropriations Resolution, 2007 (Public 

Law 110–5), the Chief Executive Officer of the Corporation for National and Community Service may transfer an amount of not more 

than $1,360,000 from the account under the heading ‘‘National and 

Community Service Programs, Operating Expenses’’ under the heading ‘‘Corporation for National and Community Service’’, to the account under the heading ‘‘Salaries and Expenses’’ under the heading 

‘‘Corporation for National and Community Service’’. 

SEC. 4608. (a) Section 1310.12(a) of title 45, Code of Federal 

Regulations, shall take effect 30 days after the date of enactment of 

this Act. 

(b)(1) Notwithstanding subsection (a), any vehicle used to transport children for a Head Start program as of January 1, 2007, shall 

not be subject to a requirement under such section (including a requirement based on the definitions set forth or referenced in section 

1310.3 or any other provision set forth or referenced in part 1310 

of such title, or any corresponding similar regulation or ruling) regarding rear emergency exit doors, for 1 year after that date of enactment. 

(2) Not later than 60 days after the National Highway Traffic 

Safety Administration of the Department of Transportation submits 

its study on occupant protection on Head Start transit vehicles (related to Government Accountability Office report GAO–06–767R), 

the Secretary of Health and Human Services shall review and shall 

revise as necessary the allowable alternate vehicle standards described in that part 1310 (or any corresponding similar regulation 

or ruling) relating to allowable alternate vehicles used to transport 

children for a Head Start program. In making any such revision, 

the Secretary shall revise the standards to be consistent with the 

findings contained in such study, including making a determination 

on the exemption of such a vehicle from Federal seat spacing requirements, and Federal supporting seating requirements related to 

compartmentalization, if such vehicle meets all other applicable 

Federal motor vehicle safety standards, including standards for 

seating systems, occupant crash protection, seat belt assemblies, and 

child restraint anchorage systems consistent with that part 1310 (or 

any corresponding similar regulation or ruling). 

(3) Notwithstanding subsection (a), until such date as the Secretary of Health and Human Services completes the review and any 

necessary revision specified in paragraph (2), the provisions of section 1310.12(a) relating to Federal seat spacing requirements, and 

Federal supporting seating requirements related to 

compartmentalization, for allowable alternate vehicles used to 

transport children for a Head Start program, shall not apply to 

such a vehicle if such vehicle meets all other applicable Federal 

motor vehicle safety standards, as described in paragraph (2). 


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CHAPTER 7 

LEGISLATIVE BRANCH 

HOUSE OF REPRESENTATIVES 

PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF

CONGRESS

For payment to Gloria W. Norwood, widow of Charles W. Norwood, Jr., late a Representative from the State of Georgia, $165,200. 

CHAPTER 8 

GENERAL PROVISIONS—THIS CHAPTER 

TECHNICAL AMENDMENT

SEC. 4801. (a) Notwithstanding any other provision of law, subsection (c) under the heading ‘‘Assistance for the Independent States 

of the Former Soviet Union’’ in Public Law 109–102, shall not apply 

to funds appropriated by the Continuing Appropriations Resolution, 

2007 (Public Law 109–289, division B) as amended by Public Laws 

109–369, 109–383, and 110–5. 

(b) Section 534(k) of the Foreign Operations, Export Financing, 

and Related Programs Appropriations Act, 2006 (Public Law 109–

102) is amended, in the second proviso, by inserting after ‘‘subsection (b) of that section’’ the following: ‘‘and the requirement that 

a majority of the members of the board of directors be United States 

citizens provided in subsection (d)(3)(B) of that section’’. 

(c) Subject to section 101(c)(2) of the Continuing Appropriations 

Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5), the amount of funds appropriated for ‘‘Foreign 

Military Financing Program’’ pursuant to such Resolution shall be 

construed to be the total of the amount appropriated for such program by section 20401 of that Resolution and the amount made 

available for such program by section 591 of the Foreign Operations, Export Financing, and Related Programs Appropriations 

Act, 2006 (Public Law 109–102) which is made applicable to the fiscal year 2007 by the provisions of such Resolution. 

SEC. 4802. Notwithstanding any provision of title I of division 

B of the Continuing Appropriations Resolution, 2007 (division B of 

Public Law 109–289, as amended by Public Laws 109–369, 109–

383, and 110–5), the dollar amount limitation of the first proviso 

under the heading, ‘‘Administration of Foreign Affairs, Diplomatic 

and Consular Programs’’, in title IV of the Science, State, Justice, 

Commerce, and Related Agencies Appropriations Act, 2006 (Public 

Law 109–108; 119 Stat. 2319) shall not apply to funds appropriated 

under such heading for fiscal year 2007. 


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CHAPTER 9 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For an additional amount to carry out the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, $6,150,000, 

to remain available until expended, to be derived from the Federal 

Housing Enterprises Oversight Fund and to be subject to the same 

terms and conditions pertaining to funds provided under this heading in Public Law 109–115: Provided, That not to exceed the total 

amount provided for these activities for fiscal year 2007 shall be 

available from the general fund of the Treasury to the extent necessary to incur obligations and make expenditures pending the receipt of collections to the Fund: Provided further, That the general 

fund amount shall be reduced as collections are received during the 

fiscal year so as to result in a final appropriation from the general 

fund estimated at not more than $0. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 4901. Hereafter, funds limited or appropriated for the Department of Transportation may be obligated or expended to grant 

authority to a Mexican motor carrier to operate beyond United 

States municipalities and commercial zones on the United StatesMexico border only to the extent that— (1) granting such authority is first tested as part of a pilot 

program; 

(2) such pilot program complies with the requirements of 

section 350 of Public Law 107–87 and the requirements of section 31315(c) of title 49, United States Code, related to pilot 

programs; and 

(3) simultaneous and comparable authority to operate within Mexico is made available to motor carriers domiciled in the 

United States. 

SEC. 4902. Funds provided for the ‘‘National Transportation 

Safety Board, Salaries and Expenses’’ in section 21031 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 

109–289, as amended by Public Law 110–5) include amounts necessary to make lease payments due in fiscal year 2007 only, on an 

obligation incurred in 2001 under a capital lease. 

SEC. 4903. Section 21033 of the Continuing Appropriations Resolution, 2007 (division B of Public Law 109–289, as amended by 

Public Law 110–5) is amended by adding after the second proviso: 

‘‘: Provided further, That paragraph (2) under such heading in Public Law 109–115 (119 Stat. 2441) shall be funded at $149,300,000, 

but additional section 8 tenant protection rental assistance costs 

may be funded in 2007 by using unobligated balances, notwithstanding the purposes for which such amounts were appropriated, 

including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development 

under this heading, the heading ‘Annual Contributions for Assisted 


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Housing’, the heading ‘Housing Certificate Fund’, and the heading ‘Project-Based Rental Assistance’ for fiscal year 2006 and prior fiscal years: Provided further, That paragraph (3) under such heading 

in Public Law 109–115 (119 Stat. 2441) shall be funded at $47,500,000: Provided further, That paragraph (4) under such 

heading in Public Law 109–115 (119 Stat. 2441) shall be funded at $5,900,000: Provided further, That paragraph (5) under such heading in Public Law 109–115 (119 Stat. 2441) shall be funded at $1,281,100,000, of which $1,251,100,000 shall be allocated for the 

calendar year 2007 funding cycle on a pro rata basis to public housing agencies based on the amount public housing agencies were eligible to receive in calendar year 2006, and of which up to 

$30,000,000 shall be available to the Secretary to allocate to public 

housing agencies that need additional funds to administer their section 8 programs, with up to $20,000,000 to be for fees associated 

with section 8 tenant protection rental assistance’’. SEC. 4904. Section 232(b) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2001 (Public Law 106–377) is amended to 

read as follows: ‘‘(b) APPLICABILITY.—In the case of any dwelling unit that, upon 

the date of the enactment of this Act, is assisted under a housing 

assistance payment contract under section 8(o)(13) as in effect before 

such enactment, or under section 8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)) as in effect before the enactment of the Quality Housing and Work Responsibility Act of 1998 

(title V of Public Law 105–276), assistance may be renewed or extended under such section 8(o)(13), as amended by subsection (a), 

provided that the initial contract term and rent of such renewed or 

extended assistance shall be determined pursuant to subparagraphs 

(F) and (H), and subparagraphs (C) and (D) of such section shall 

not apply to such extensions or renewals.’’. 

CHAPTER 10 

GENERAL PROVISIONS—THIS ACT 

AVAILABILITY OF FUNDS

SEC. 4950. No part of any appropriation contained in this Act 

shall remain available for obligation beyond the current fiscal year 

unless expressly so provided herein. 

DESIGNATION FOR TITLE I

SEC. 4951. Amounts in title I are designated as emergency requirements pursuant to section 402 of H. Con. Res. 95 (109th Congress), and as making appropriations for contingency operations directly related to the global war on terrorism and other unanticipated defense-related operations pursuant to section 402 of H. Con. 

Res. 376 (109th Congress) as made applicable to the House of Representatives by section 511(a)(4) of H. Res. 6 (110th Congress). 

EMERGENCY DESIGNATION FOR OTHER TITLES

SEC. 4952. Amounts in titles II, III, V, and VI are designated 

as emergency requirements pursuant to section 402 of H. Con. Res. 

95 (109th Congress), and pursuant to section 501 of H. Con. Res. 


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376 (109th Congress) as made applicable to the House of Representatives by section 511(a)(4) of H. Res. 6 (110th Congress). 

TITLE V 

AGRICULTURAL ASSISTANCE 

SEC. 5101. CROP DISASTER ASSISTANCE. 

(a) ASSISTANCE AVAILABLE.—There are hereby appropriated to 

the Secretary of Agriculture such sums as are necessary, to remain 

available until expended, to make emergency financial assistance 

available to producers on a farm that incurred qualifying quantity 

or quality losses for the 2005 or 2006 crop, or that part of the 2007 

crop year before February 28, 2007, due to damaging weather or 

any related condition (including losses due to crop diseases, insects, 

and delayed planting), as determined by the Secretary. However, to 

be eligible for assistance, the crop subject to the loss must have been 

planted before February 28, 2007 or, in the case of prevented planting or other total loss, would have been planted before February 28, 

2007 in the absence of the damaging weather or any related condition. 

(b) ELECTION OF CROP YEAR.—If a producer incurred qualifying 

crop losses in more than one of the 2005, 2006, or 2007 crop years, 

the producer shall elect to receive assistance under this section for 

losses incurred in only one of such crop years. The producer may not 

receive assistance under this section for more than one crop year. 

(c) ADMINISTRATION.—

(1) IN GENERAL.—Except as provided in paragraph (2), the 

Secretary of Agriculture shall make assistance available under 

this section in the same manner as provided under section 815 

of the Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations Act, 2001 (Public 

Law 106–387; 114 Stat. 1549A–55), including using the same 

loss thresholds for quantity and economic losses as were used 

in administering that section, except that the payment rate 

shall be 50 percent of the established price, instead of 65 percent. 

(2) LOSS THRESHOLDS FOR QUALITY LOSSES.—In the case of 

a payment for quality loss for a crop under subsection (a), the 

loss thresholds for quality loss for the crop shall be determined 

under subsection (d). 

(d) QUALITY LOSSES.—

(1) IN GENERAL.—Subject to paragraph (3), the amount of 

a payment made to producers on a farm for a quality loss for 

a crop under subsection (a) shall be equal to the amount obtained by multiplying—

(A) 65 percent of the payment quantity determined 

under paragraph (2); by 

(B) 50 percent of the payment rate determined under 

paragraph (3). 

(2) PAYMENT QUANTITY.—For the purpose of paragraph 

(1)(A), the payment quantity for quality losses for a crop of a 

commodity on a farm shall equal the lesser of—

(A) the actual production of the crop affected by a quality loss of the commodity on the farm; or 


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(B) the quantity of expected production of the crop affected by a quality loss of the commodity on the farm, using 

the formula used by the Secretary of Agriculture to determine quantity losses for the crop of the commodity under 

subsection (a). 

(3) PAYMENT RATE.—For the purpose of paragraph (1)(B) 

and in accordance with paragraphs (5) and (6), the payment 

rate for quality losses for a crop of a commodity on a farm shall 

be equal to the difference between—

(A) the per unit market value that the units of the crop 

affected by the quality loss would have had if the crop had 

not suffered a quality loss; and 

(B) the per unit market value of the units of the crop 

affected by the quality loss. 

(4) ELIGIBILITY.—For producers on a farm to be eligible to 

obtain a payment for a quality loss for a crop under subsection 

(a), the amount obtained by multiplying the per unit loss determined under paragraph (1) by the number of units affected by 

the quality loss shall be at least 25 percent of the value that all 

affected production of the crop would have had if the crop had 

not suffered a quality loss. 

(5) MARKETING CONTRACTS.—In the case of any production 

of a commodity that is sold pursuant to one or more marketing 

contracts (regardless of whether the contract is entered into by 

the producers on the farm before or after harvest) and for which 

appropriate documentation exists, the quantity designated in 

the contracts shall be eligible for quality loss assistance based 

on the one or more prices specified in the contracts. 

(6) OTHER PRODUCTION.—For any additional production of 

a commodity for which a marketing contract does not exist or 

for which production continues to be owned by the producer, 

quality losses shall be based on the average local market discounts for reduced quality, as determined by the appropriate 

State committee of the Farm Service Agency. 

(7) QUALITY ADJUSTMENTS AND DISCOUNTS.—The appropriate State committee of the Farm Service Agency shall identify the appropriate quality adjustment and discount factors to 

be considered in carrying out this subsection, including—

(A) the average local discounts actually applied to a 

crop; and 

(B) the discount schedules applied to loans made by the 

Farm Service Agency or crop insurance coverage under the 

Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 

(8) ELIGIBLE PRODUCTION.—The Secretary of Agriculture 

shall carry out this subsection in a fair and equitable manner 

for all eligible production, including the production of fruits 

and vegetables, other specialty crops, and field crops. 

(e) PAYMENT LIMITATIONS.—

(1) LIMIT ON AMOUNT OF ASSISTANCE.—Assistance provided 

under this section to a producer for losses to a crop, together 

with the amounts specified in paragraph (2) applicable to the 

same crop, may not exceed 95 percent of what the value of the 

crop would have been in the absence of the losses, as estimated 

by the Secretary of Agriculture. 


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(2) OTHER PAYMENTS.—In applying the limitation in paragraph (1), the Secretary shall include the following: 

(A) Any crop insurance payment made under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or payment 

under section 196 of the Federal Agriculture Improvement 

and Reform Act of 1996 (7 U.S.C. 7333) that the producer 

receives for losses to the same crop. 

(B) The value of the crop that was not lost (if any), as 

estimated by the Secretary. 

(f) ELIGIBILITY REQUIREMENTS AND LIMITATIONS.—The producers on a farm shall not be eligible for assistance under this section with respect to losses to an insurable commodity or noninsurable commodity if the producers on the farm— (1) in the case of an insurable commodity, did not obtain 

a policy or plan of insurance for the insurable commodity under 

the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the 

crop incurring the losses; 

(2) in the case of a noninsurable commodity, did not file the 

required paperwork, and pay the administrative fee by the applicable State filing deadline, for the noninsurable commodity 

under section 196 of the Federal Agriculture Improvement and 

Reform Act of 1996 (7 U.S.C. 7333) for the crop incurring the 

losses; or 

(3) were not in compliance with highly erodible land conservation and wetland conservation provisions. 

(g) TIMING.— (1) IN GENERAL.—Subject to paragraph (2), the Secretary of 

Agriculture shall make payments to producers on a farm for a 

crop under this section not later than 60 days after the date the 

producers on the farm submit to the Secretary a completed application for the payments. 

(2) INTEREST.—If the Secretary does not make payments to 

the producers on a farm by the date described in paragraph (1), 

the Secretary shall pay to the producers on a farm interest on 

the payments at a rate equal to the current (as of the sign-up 

deadline established by the Secretary) market yield on outstanding, marketable obligations of the United States with maturities of 30 years. 

(h) DEFINITIONS.—In this section: 

(1) INSURABLE COMMODITY.—The term ‘‘insurable commodity’’ means an agricultural commodity (excluding livestock) 

for which the producers on a farm are eligible to obtain a policy 

or plan of insurance under the Federal Crop Insurance Act (7 

U.S.C. 1501 et seq.). 

(2) NONINSURABLE COMMODITY.—The term ‘‘noninsurable 

commodity’’ means a crop for which the producers on a farm 

are eligible to obtain assistance under section 196 of the Federal 

Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7333). 

SEC. 5102. LIVESTOCK ASSISTANCE. 

(a) LIVESTOCK COMPENSATION PROGRAM.— (1) AVAILABILITY OF ASSISTANCE.—There are hereby appropriated to the Secretary of Agriculture such sums as are necessary, to remain available until expended, to carry out the livestock compensation program established under subpart B of 


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part 1416 of title 7, Code of Federal Regulations, as announced 

by the Secretary on February 12, 2007 (72 Fed. Reg. 6443), to 

provide compensation for livestock losses between January 1, 

2005 and February 28, 2007, due to a disaster, as determined 

by the Secretary (including losses due to blizzards that started 

in 2006 and continued into January 2007). However, the payment rate for compensation under this subsection shall be 70 

percent of the payment rate otherwise applicable under such 

program. In addition, section 1416.102(b)(2)(ii) of title 7, Code 

of Federal Regulations (72 Fed. Reg. 6444) shall not apply. 

(2) ELIGIBLE APPLICANTS.—In carrying out the program described in paragraph (1), the Secretary shall provide assistance 

to any applicant that— (A) conducts a livestock operation that is located in a 

disaster county with eligible livestock specified in paragraph (1) of section 1416.102(a) of title 7, Code of Federal 

Regulations (72 Fed. Reg. 6444), an animal described in 

section 10806(a)(1) of the Farm Security and Rural Investment Act of 2002 (21 U.S.C. 321d(a)(1)), or other animals 

designated by the Secretary as livestock for purposes of this 

subsection; and 

(B) meets the requirements of paragraphs (3) and (4) of 

section 1416.102(a) of title 7, Code of Federal Regulations, 

and all other eligibility requirements established by the 

Secretary for the program. 

(3) ELECTION OF LOSSES.— (A) If a producer incurred eligible livestock losses in 

more than one of the 2005, 2006, or 2007 calendar years, 

the producer shall elect to receive payments under this subsection for losses incurred in only one of such calendar 

years, and such losses must have been incurred in a county 

declared or designated as a disaster county in that same 

calendar year. 

(B) Producers may elect to receive compensation for 

losses in the calendar year 2007 grazing season that are attributable to wildfires occurring during the applicable period, as determined by the Secretary. 

(4) MITIGATION.—In determining the eligibility for or 

amount of payments for which a producer is eligible under the 

livestock compensation program, the Secretary shall not penalize a producer that takes actions (recognizing disaster conditions) that reduce the average number of livestock the producer 

owned for grazing during the production year for which assistance is being provided. 

(5) DEFINITIONS.—In this subsection: 

(A) DISASTER COUNTY.—The term ‘‘disaster county’’

means—

(i) a county included in the geographic area covered by a natural disaster declaration; and 

(ii) each county contiguous to a county described in 

clause (i). 

(B) NATURAL DISASTER DECLARATION.—The term ‘‘natural disaster declaration’’ means— (i) a natural disaster declared by the Secretary between January 1, 2005 and February 28, 2007 under 


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section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)); 

(ii) a major disaster or emergency designated by 

the President between January 1, 2005 and February 

28, 2007 under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

or 

(iii) a determination of a Farm Service Agency Administrator’s Physical Loss Notice if such notice applies to a county included under (ii). 

(b) LIVESTOCK INDEMNITY PAYMENTS.— (1) AVAILABILITY OF ASSISTANCE.—There are hereby appropriated to the Secretary of Agriculture such sums as are necessary, to remain available until expended, to make livestock indemnity payments to producers on farms that have incurred 

livestock losses between January 1, 2005 and February 28, 

2007, due to a disaster, as determined by the Secretary (including losses due to blizzards that started in 2006 and continued 

into January 2007) in a disaster county. To be eligible for assistance, applicants must meet all eligibility requirements established by the Secretary for the program. 

(2) ELECTION OF LOSSES.—If a producer incurred eligible 

livestock losses in more than one of the 2005, 2006, or 2007 calendar years, the producer shall elect to receive payments under 

this subsection for losses incurred in only one of such calendar 

years. The producer may not receive payments under this subsection for more than one calendar year. 

(3) PAYMENT RATES.—Indemnity payments to a producer on 

a farm under paragraph (1) shall be made at a rate of not less 

than 30 percent of the market value of the applicable livestock 

on the day before the date of death of the livestock, as determined by the Secretary. 

(4) LIVESTOCK DEFINED.—In this subsection, the term ‘‘livestock’’ means an animal that— (A) is specified in clause (i) of section 1416.203(a)(2) of 

title 7, Code of Federal Regulations (72 Fed. Reg. 6445), or 

is designated by the Secretary as livestock for purposes of 

this subsection; and 

(B) meets the requirements of clauses (iii) and (iv) of 

such section. 

(5) DEFINITIONS.—In this subsection: 

(A) DISASTER COUNTY.—The term ‘‘disaster county’’

means—

(i) a county included in the geographic area covered by a natural disaster declaration; and 

(ii) each county contiguous to a county described in 

clause (i). 

(B) NATURAL DISASTER DECLARATION.—The term ‘‘natural disaster declaration’’ means—

(i) a natural disaster declared by the Secretary between January 1, 2005 and February 28, 2007 under 

section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)); 

(ii) a major disaster or emergency designated by 

the President between January 1, 2005 and February 


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28, 2007 under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

or 

(iii) a determination of a Farm Service Agency Administrator’s Physical Loss Notice if such notice applies to a county included under (ii). 

SEC. 5103. EMERGENCY CONSERVATION PROGRAM. 

There is hereby appropriated to the Secretary of Agriculture 

$20,000,000, to remain available until expended, to provide assistance under the Emergency Conservation Program under title IV of 

the Agriculture Credit Act of 1978 (16 U.S.C. 2201 et seq.) for the 

cleanup and restoration of farm and agricultural production lands. 

SEC. 5104. PAYMENT LIMITATIONS. 

(a) REDUCTION IN PAYMENTS TO REFLECT PAYMENTS FOR SAME

OR SIMILAR LOSSES.—The amount of any payment for which a producer is eligible under sections 5101 and 5102 shall be reduced by 

any amount received by the producer for the same loss or any similar loss under—

(1) the Department of Defense, Emergency Supplemental 

Appropriations to Address Hurricanes in the Gulf of Mexico, 

and Pandemic Influenza Act, 2006 (Public Law 109–148; 119 

Stat. 2680); 

(2) an agricultural disaster assistance provision contained 

in the announcement of the Secretary on January 26, 2006, or 

August 29, 2006; or 

(3) the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 

(Public Law 109–234; 120 Stat. 418). 

(b) ADJUSTED GROSS INCOME LIMITATION.—Section 1001D of 

the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall apply with 

respect to assistance provided under sections 5101, 5102, and 5103. 

SEC. 5105. ADMINISTRATION. 

(a) REGULATIONS.—The Secretary of Agriculture may promulgate such regulations as are necessary to implement sections 5101 

and 5102. 

(b) PROCEDURE.—The promulgation of the implementing regulations and the administration of sections 5101 and 5102 shall be 

made without regard to—

(1) the notice and comment provisions of section 553 of title 

5, United States Code; 

(2) the Statement of Policy of the Secretary of Agriculture 

effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices 

of proposed rulemaking and public participation in rulemaking; 

and 

(3) chapter 35 of title 44, United States Code (commonly 

known as the ‘‘Paperwork Reduction Act’’). 

(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In carrying out this section, the Secretary of Agriculture shall use the authority provided under section 808 of title 5, United States Code. 

(d) USE OF COMMODITY CREDIT CORPORATION; LIMITATION.—In 

implementing sections 5101 and 5102, the Secretary of Agriculture 

may use the facilities, services, and authorities of the Commodity 

Credit Corporation. The Corporation shall not make any expendiVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00066 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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tures to carry out sections 5101 and 5102 unless funds have been 

specifically appropriated for such purpose. 

SEC. 5106. MILK INCOME LOSS CONTRACT PROGRAM. 

Section 1502(c)(3) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 7982(c)(3)) is amended—

(1) in subparagraph (A), by adding ‘‘and’’ at the end; 

(2) in subparagraph (B), by striking ‘‘August’’ and all that 

follows through the end and inserting ‘‘September 30, 2007, 34 

percent.’’; and 

(3) by striking subparagraph (C). 

SEC. 5107. DAIRY ASSISTANCE. 

There is hereby appropriated $20,000,000 to make payments to 

dairy producers for dairy production losses in disaster counties, as 

defined in section 5102 of this title, to remain available until expended. 

SEC. 5108. NONINSURED CROP ASSISTANCE PROGRAM. 

For states in which there is a shortage of claims adjustors, as 

determined by the Secretary, the Secretary shall permit the use of 

one claims adjustor certified by the Secretary in carrying out 7 CFR 

1437.401. 

SEC. 5109. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT 

AND SEASONAL FARMWORKERS. 

There is hereby appropriated $21,000,000 to carry out section 

2281 of the Food, Agriculture, Conservation and Trade Act of 1990 

(42 U.S.C. 5177a), to remain available until expended. 

SEC. 5110. CONSERVATION SECURITY PROGRAM. 

Section 20115 of Public Law 110–5 is amended by striking ‘‘section 726’’ and inserting in lieu thereof ‘‘section 726; section 741’’. 

SEC. 5111. ADMINISTRATIVE EXPENSES. 

There is hereby appropriated $30,000,000 for the ‘Farm Service 

Agency, Salaries and Expenses’, to remain available until September 30, 2008. 

SEC. 5112. CONTRACT WAIVER. 

In carrying out crop disaster and livestock assistance in this 

title, the Secretary shall require forage producers to have participated in a crop insurance pilot program or the Non-Insured Crop 

Disaster Assistance Program during the crop year for which compensation is received. 

TITLE VI 

ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR MEDICARE AND MEDICAID SERVICES STATE

CHILDREN’S HEALTH INSURANCE FUND

For an additional amount to provide additional allotments to 

remaining shortfall States under section 2104(h)(4) of the Social Security Act, as inserted by section 6001, such sums as may be necessary, but not to exceed $650,000,000 for fiscal year 2007, to remain available until expended. 


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SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUNDING SHORTFALLS FOR FISCAL YEAR 2007. 

(a) ELIMINATION OF REMAINDER OF FUNDING SHORTFALLS, 

TIERED MATCH, AND OTHER LIMITATION ON EXPENDITURES.—Section 2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as 

added by section 201(a) of the National Institutes of Health Reform 

Act of 2006 (Public Law 109–482), is amended—

(1) in the heading for paragraph (2), by striking ‘‘REMAINDER OF REDUCTION’’ and inserting ‘‘PART’’; and 

(2) by striking paragraph (4) and inserting the following: 

‘‘(4) ADDITIONAL AMOUNTS TO ELIMINATE REMAINDER OF

FISCAL YEAR 2007 FUNDING SHORTFALLS.—

‘‘(A) IN GENERAL.—From the amounts provided in advance in appropriations Acts, the Secretary shall allot to 

each remaining shortfall State described in subparagraph 

(B) such amount as the Secretary determines will eliminate 

the estimated shortfall described in such subparagraph for 

the State for fiscal year 2007. 

‘‘(B) REMAINING SHORTFALL STATE DESCRIBED.—For 

purposes of subparagraph (A), a remaining shortfall State 

is a State with a State child health plan approved under 

this title for which the Secretary estimates, on the basis of 

the most recent data available to the Secretary as of the 

date of the enactment of this paragraph, that the projected 

Federal expenditures under such plan for the State for fiscal year 2007 will exceed the sum of—

‘‘(i) the amount of the State’s allotments for each of 

fiscal years 2005 and 2006 that will not be expended 

by the end of fiscal year 2006; 

‘‘(ii) the amount of the State’s allotment for fiscal 

year 2007; and 

‘‘(iii) the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance 

with paragraphs (1) and (2).’’. 

(b) CONFORMING AMENDMENTS.—Section 2104(h) of such Act 

(42 U.S.C. 1397dd(h)) (as so added), is amended—

(1) in paragraph (1)(B), by striking ‘‘subject to paragraph 

(4)(B) and’’; 

(2) in paragraph (2)(B), by striking ‘‘subject to paragraph 

(4)(B) and’’; 

(3) in paragraph (5)(A), by striking ‘‘and (3)’’ and inserting 

‘‘(3), and (4)’’; and 

(4) in paragraph (6)—

(A) in the first sentence—

(i) by inserting ‘‘or allotted’’ after ‘‘redistributed’’; 

and 

(ii) by inserting ‘‘or allotments’’ after ‘‘redistributions’’; and 

(B) by striking ‘‘and (3)’’ and inserting ‘‘(3), and (4)’’. 

SEC. 6002. (a) PROHIBITION.—

(1) LIMITATION ON SECRETARIAL AUTHORITY.—Notwithstanding any other provision of law, the Secretary of Health 

and Human Services shall not, prior to the date that is 1 year 

after the date of enactment of this Act, take any action (through 


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promulgation of regulation, issuance of regulatory guidance, or 

other administrative action) to— (A) finalize or otherwise implement provisions contained in the proposed rule published on January 18, 2007, 

on pages 2236 through 2248 of volume 72, Federal Register 

(relating to parts 433, 447, and 457 of title 42, Code of Federal Regulations); 

(B) promulgate or implement any rule or provisions 

similar to the provisions described in subparagraph (A) 

pertaining to the Medicaid program established under title 

XIX of the Social Security Act or the State Children’s 

Health Insurance Program established under title XXI of 

such Act; or 

(C) promulgate or implement any rule or provisions restricting payments for graduate medical education under 

the Medicaid program. 

(2) CONTINUATION OF OTHER SECRETARIAL AUTHORITY.—

The Secretary of Health and Human Service shall not be prohibited during the period described in paragraph (1) from taking any action (through promulgation of regulation, issuance of 

regulatory guidance, or other administrative action) to enforce 

a provision of law in effect as of the date of enactment of this 

Act with respect to the Medicaid program or the State Children’s Health Insurance Program, or to promulgate or implement a new rule or provision during such period with respect 

to such programs, other than a rule or provision described in 

paragraph (1) and subject to the prohibition set forth in that 

paragraph. 

(b) REQUIREMENT FOR USE OF TAMPER-RESISTANT PRESCRIPTION PADS UNDER THE MEDICAID PROGRAM.—

(1) IN GENERAL.—Section 1903(i) of the Social Security Act 

(42 U.S.C. 1396b(i)) is amended— (A) by striking ‘‘or’’ at the end of paragraph (21); 

(B) by striking the period at the end of paragraph (22) 

and inserting ‘‘; or’’; and 

(C) by inserting after paragraph (22) the following new 

paragraph: 

‘‘(23) with respect to amounts expended for medical assistance for covered outpatient drugs (as defined in section 

1927(k)(2)) for which the prescription was executed in written 

(and non-electronic) form unless the prescription was executed 

on a tamper-resistant pad.’’. 

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall apply to prescriptions executed after September 

30, 2007. 

(c) EXTENSION OF CERTAIN PHARMACY PLUS WAIVERS.—

(1) AUTHORITY TO CONTINUE TO OPERATE WAIVERS.—Notwithstanding any other provision of law, any State that is operating a Pharmacy Plus waiver described in paragraph (2) 

which would otherwise expire on June 30, 2007, may elect to 

continue to operate the waiver through December 31, 2009. 

(2) PHARMACY PLUS WAIVER DESCRIBED.—For purposes of 

paragraph (1), a Pharmacy Plus waiver described in this paragraph is a waiver approved by the Secretary of Health and 

Human Services under the authority of section 1115 of the SoVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00069 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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cial Security Act (42 U.S.C. 1315) that provides coverage for 

prescription drugs for individuals who have attained age 65 

and whose family income does not exceed 200 percent of the 

poverty line (as defined in section 2110(c)(5) of such Act (42 

U.S.C. 1397jj(c)(5)). 

TITLE VII 

FAIR MINIMUM WAGE AND TAX RELIEF 

Subtitle A—Fair Minimum Wage 

SEC. 7000. SHORT TITLE. 

This subtitle may be cited as the ‘‘Fair Minimum Wage Act of 

2007’’. 

SEC. 7001. MINIMUM WAGE. 

(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor Standards 

Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows: 

‘‘(1) except as otherwise provided in this section, not less 

than—

‘‘(A) $5.85 an hour, beginning on the 60th day after the 

date of enactment of the Fair Minimum Wage Act of 2007; 

‘‘(B) $6.55 an hour, beginning 12 months after that 

60th day; and 

‘‘(C) $7.25 an hour, beginning 24 months after that 

60th day;’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect 60 days after the date of enactment of this Act. 

SEC. 7002. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 

AND THE COMMONWEALTH OF THE NORTHERN MARIANA 

ISLANDS. 

(a) IN GENERAL.—Section 6 of the Fair Labor Standards Act of 

1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mariana Islands. 

(b) TRANSITION.—Notwithstanding subsection (a)—

(1) the minimum wage applicable to the Commonwealth of 

the Northern Mariana Islands under section 6(a)(1) of the Fair 

Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be—

(A) $3.55 an hour, beginning on the 60th day after the 

date of enactment of this Act; and 

(B) increased by $0.50 an hour (or such lesser amount 

as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of 

enactment of this Act and each year thereafter until the 

minimum wage applicable to the Commonwealth of the 

Northern Mariana Islands under this paragraph is equal 

to the minimum wage set forth in such section; and 

(2) the minimum wage applicable to American Samoa 

under section 6(a)(1) of the Fair Labor Standards Act of 1938 

(29 U.S.C. 206(a)(1)) shall be—

(A) the applicable wage rate in effect for each industry 

and classification under section 697 of title 29, Code of 

Federal Regulations, on the date of enactment of this Act; 

(B) increased by $0.50 an hour, beginning on the 60th 

day after the date of enactment of this Act; and 


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(C) increased by $0.50 an hour (or such lesser amount 

as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of 

enactment of this Act and each year thereafter until the 

minimum wage applicable to American Samoa under this 

paragraph is equal to the minimum wage set forth in such 

section. 

(c) CONFORMING AMENDMENTS.— (1) IN GENERAL.—The Fair Labor Standards Act of 1938 is 

amended—

(A) by striking sections 5 and 8; and 

(B) in section 6(a), by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and 

(4), respectively. 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall take effect 60 days after the date of enactment of 

this Act. 

SEC. 7003. STUDY ON PROJECTED IMPACT. 

(a) STUDY.—Beginning on the date that is 26 months after the 

date of enactment of this Act, the Secretary of Labor shall, through 

the Bureau of Labor Statistics, conduct a study to—

(1) assess the impact of the wage increases required by this 

Act through such date; and 

(2) to project the impact of any further wage increase, 

on living standards and rates of employment in American Samoa 

and the Commonwealth of the Northern Mariana Islands. 

(b) REPORT.—Not later than the date that is 32 months after 

the date of enactment of this Act, the Secretary of Labor shall transmit to Congress a report on the findings of the study required by 

subsection (a). 

Subtitle B—Small Business Incentives 

SEC. 7004. SHORT TITLE. 

This subtitle may be cited as the ‘‘Small Business and Work 

Opportunity Act of 2007’’. 

SEC. 7005. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL BUSINESSES. 

(a) IN GENERAL.—Section 212 of the Small Business Regulatory 

Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended 

by striking subsection (a) and inserting the following: 

‘‘(a) COMPLIANCE GUIDE.—

‘‘(1) IN GENERAL.—For each rule or group of related rules 

for which an agency is required to prepare a final regulatory 

flexibility analysis under section 605(b) of title 5, United States 

Code, the agency shall publish 1 or more guides to assist small 

entities in complying with the rule and shall entitle such publications ‘small entity compliance guides’. 

‘‘(2) PUBLICATION OF GUIDES.—The publication of each 

guide under this subsection shall include—

‘‘(A) the posting of the guide in an easily identified location on the website of the agency; and 

‘‘(B) distribution of the guide to known industry contacts, such as small entities, associations, or industry leaders affected by the rule. 


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‘‘(3) PUBLICATION DATE.—An agency shall publish each 

guide (including the posting and distribution of the guide as 

described under paragraph (2))—

‘‘(A) on the same date as the date of publication of the 

final rule (or as soon as possible after that date); and 

‘‘(B) not later than the date on which the requirements 

of that rule become effective. 

‘‘(4) COMPLIANCE ACTIONS.—

‘‘(A) IN GENERAL.—Each guide shall explain the actions 

a small entity is required to take to comply with a rule. 

‘‘(B) EXPLANATION.—The explanation under subparagraph (A)—

‘‘(i) shall include a description of actions needed to 

meet the requirements of a rule, to enable a small entity to know when such requirements are met; and 

‘‘(ii) if determined appropriate by the agency, may 

include a description of possible procedures, such as 

conducting tests, that may assist a small entity in 

meeting such requirements, except that, compliance 

with any procedures described pursuant to this section 

does not establish compliance with the rule, or establish a presumption or inference of such compliance. 

‘‘(C) PROCEDURES.—Procedures described under subparagraph (B)(ii)—

‘‘(i) shall be suggestions to assist small entities; 

and 

‘‘(ii) shall not be additional requirements, or diminish requirements, relating to the rule. 

‘‘(5) AGENCY PREPARATION OF GUIDES.—The agency shall, 

in its sole discretion, taking into account the subject matter of 

the rule and the language of relevant statutes, ensure that the 

guide is written using sufficiently plain language likely to be 

understood by affected small entities. Agencies may prepare separate guides covering groups or classes of similarly affected 

small entities and may cooperate with associations of small entities to develop and distribute such guides. An agency may prepare guides and apply this section with respect to a rule or a 

group of related rules. 

‘‘(6) REPORTING.—Not later than 1 year after the date of enactment of the Fair Minimum Wage Act of 2007, and annually 

thereafter, the head of each agency shall submit a report to the 

Committee on Small Business and Entrepreneurship of the Senate, the Committee on Small Business of the House of Representatives, and any other committee of relevant jurisdiction 

describing the status of the agency’s compliance with paragraphs (1) through (5).’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 211(3) 

of the Small Business Regulatory Enforcement Fairness Act of 1996 

(5 U.S.C. 601 note) is amended by inserting ‘‘and entitled’’ after 

‘‘designated’’. 

SEC. 7006. SMALL BUSINESS CHILD CARE GRANT PROGRAM. 

(a) ESTABLISHMENT.—The Secretary of Health and Human 

Services (referred to in this section as the ‘‘Secretary’’) shall establish a program to award grants to States, on a competitive basis, 


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to assist States in providing funds to encourage the establishment 

and operation of employer-operated child care programs. 

(b) APPLICATION.—To be eligible to receive a grant under this 

section, a State shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including an assurance that the 

funds required under subsection (e) will be provided. 

(c) AMOUNT AND PERIOD OF GRANT.—The Secretary shall determine the amount of a grant to a State under this section based on 

the population of the State as compared to the population of all 

States receiving grants under this section. The Secretary shall make 

the grant for a period of 3 years. 

(d) USE OF FUNDS.—

(1) IN GENERAL.—A State shall use amounts provided 

under a grant awarded under this section to provide assistance 

to small businesses (or consortia formed in accordance with 

paragraph (3)) located in the State to enable the small businesses (or consortia) to establish and operate child care programs. Such assistance may include—

(A) technical assistance in the establishment of a child 

care program; 

(B) assistance for the startup costs related to a child 

care program; 

(C) assistance for the training of child care providers; 

(D) scholarships for low-income wage earners; 

(E) the provision of services to care for sick children or 

to provide care to school-aged children; 

(F) the entering into of contracts with local resource 

and referral organizations or local health departments; 

(G) assistance for care for children with disabilities; 

(H) payment of expenses for renovation or operation of 

a child care facility; or 

(I) assistance for any other activity determined appropriate by the State. 

(2) APPLICATION.—In order for a small business or consortium to be eligible to receive assistance from a State under this 

section, the small business involved shall prepare and submit 

to the State an application at such time, in such manner, and 

containing such information as the State may require. 

(3) PREFERENCE.—

(A) IN GENERAL.—In providing assistance under this 

section, a State shall give priority to an applicant that desires to form a consortium to provide child care in a geographic area within the State where such care is not generally available or accessible. 

(B) CONSORTIUM.—For purposes of subparagraph (A), 

a consortium shall be made up of 2 or more entities that 

shall include small businesses and that may include large 

businesses, nonprofit agencies or organizations, local governments, or other appropriate entities. 

(4) LIMITATIONS.—With respect to grant funds received 

under this section, a State may not provide in excess of 

$500,000 in assistance from such funds to any single applicant. 

(e) MATCHING REQUIREMENT.—To be eligible to receive a grant 

under this section, a State shall provide assurances to the Secretary 


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that, with respect to the costs to be incurred by a covered entity receiving assistance in carrying out activities under this section, the 

covered entity will make available (directly or through donations 

from public or private entities) non-Federal contributions to such 

costs in an amount equal to—

(1) for the first fiscal year in which the covered entity receives such assistance, not less than 50 percent of such costs ($1 

for each $1 of assistance provided to the covered entity under 

the grant); 

(2) for the second fiscal year in which the covered entity receives such assistance, not less than 662⁄3 percent of such costs 

($2 for each $1 of assistance provided to the covered entity 

under the grant); and 

(3) for the third fiscal year in which the covered entity receives such assistance, not less than 75 percent of such costs ($3 

for each $1 of assistance provided to the covered entity under 

the grant). 

(f) REQUIREMENTS OF PROVIDERS.—To be eligible to receive assistance under a grant awarded under this section, a child care provider— 

(1) who receives assistance from a State shall comply with 

all applicable State and local licensing and regulatory requirements and all applicable health and safety standards in effect 

in the State; and 

(2) who receives assistance from an Indian tribe or tribal 

organization shall comply with all applicable regulatory standards. 

(g) STATE-LEVEL ACTIVITIES.—A State may not retain more 

than 3 percent of the amount described in subsection (c) for State 

administration and other State-level activities. 

(h) ADMINISTRATION.— 

(1) STATE RESPONSIBILITY.—A State shall have responsibility for administering a grant awarded for the State under 

this section and for monitoring covered entities that receive assistance under such grant. 

(2) AUDITS.—A State shall require each covered entity receiving assistance under the grant awarded under this section 

to conduct an annual audit with respect to the activities of the 

covered entity. Such audits shall be submitted to the State. 

(3) MISUSE OF FUNDS.— 

(A) REPAYMENT.—If the State determines, through an 

audit or otherwise, that a covered entity receiving assistance under a grant awarded under this section has misused the assistance, the State shall notify the Secretary of 

the misuse. The Secretary, upon such a notification, may 

seek from such a covered entity the repayment of an 

amount equal to the amount of any such misused assistance plus interest. 

(B) APPEALS PROCESS.—The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph. 

(i) REPORTING REQUIREMENTS.— 

(1) 2-YEAR STUDY.— 


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(A) IN GENERAL.—Not later than 2 years after the date 

on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine— (i) the capacity of covered entities to meet the child 

care needs of communities within States; 

(ii) the kinds of consortia that are being formed 

with respect to child care at the local level to carry out 

programs funded under this section; and 

(iii) who is using the programs funded under this 

section and the income levels of such individuals. 

(B) REPORT.—Not later than 28 months after the date 

on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the 

study conducted in accordance with subparagraph (A). 

(2) 4-YEAR STUDY.—

(A) IN GENERAL.—Not later than 4 years after the date 

on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine the 

number of child care facilities that are funded through covered entities that received assistance through a grant 

awarded under this section and that remain in operation, 

and the extent to which such facilities are meeting the child 

care needs of the individuals served by such facilities. 

(B) REPORT.—Not later than 52 months after the date 

on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the 

study conducted in accordance with subparagraph (A). 

(j) DEFINITIONS.—In this section: 

(1) COVERED ENTITY.—The term ‘‘covered entity’’ means a 

small business or a consortium formed in accordance with subsection (d)(3). 

(2) INDIAN COMMUNITY.—The term ‘‘Indian community’’

means a community served by an Indian tribe or tribal organization. 

(3) INDIAN TRIBE; TRIBAL ORGANIZATION.—The terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings given 

the terms in section 658P of the Child Care and Development 

Block Grant Act of 1990 (42 U.S.C. 9858n). 

(4) SMALL BUSINESS.—The term ‘‘small business’’ means an 

employer who employed an average of at least 2 but not more 

than 50 employees on the business days during the preceding 

calendar year. 

(5) STATE.—The term ‘‘State’’ has the meaning given the 

term in section 658P of the Child Care and Development Block 

Grant Act of 1990 (42 U.S.C. 9858n). 

(k) APPLICATION TO INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—In this section: 

(1) IN GENERAL.—Except as provided in subsection (f)(1), 

and in paragraphs (2) and (3), the term ‘‘State’’ includes an Indian tribe or tribal organization. 

(2) GEOGRAPHIC REFERENCES.—The term ‘‘State’’ includes 

an Indian community in subsections (c) (the second and third 

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pears), (d)(3)(A) (the second place the term appears), and 

(i)(1)(A)(i). 

(3) STATE-LEVEL ACTIVITIES.—The term ‘‘State-level activities’’ includes activities at the tribal level. 

(l) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated to 

carry out this section, $50,000,000 for the period of fiscal years 

2008 through 2012. 

(2) STUDIES AND ADMINISTRATION.—With respect to the 

total amount appropriated for such period in accordance with 

this subsection, not more than $2,500,000 of that amount may 

be used for expenditures related to conducting studies required 

under, and the administration of, this section. 

(m) TERMINATION OF PROGRAM.—The program established 

under subsection (a) shall terminate on September 30, 2012. 

SEC. 7007. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF 

EARNED INCOME CREDIT. 

Not later than 180 days after the date of the enactment of this 

Act, the Secretary of the Treasury shall report to Congress on a 

study of the benefits, costs, risks, and barriers to workers and to 

businesses (with a special emphasis on small businesses) if the advance earned income tax credit program (under section 3507 of the 

Internal Revenue Code of 1986) included all recipients of the earned 

income tax credit (under section 32 of such Code) and what steps 

would be necessary to implement such inclusion. 

SEC. 7008. RENEWAL GRANTS FOR WOMEN’S BUSINESS CENTERS. 

(a) IN GENERAL.—Section 29 of the Small Business Act (15 

U.S.C. 656) is amended by adding at the end the following: 

‘‘(m) CONTINUED FUNDING FOR CENTERS.—

‘‘(1) IN GENERAL.—A nonprofit organization described in 

paragraph (2) shall be eligible to receive, subject to paragraph 

(3), a 3-year grant under this subsection. 

‘‘(2) APPLICABILITY.—A nonprofit organization described in 

this paragraph is a nonprofit organization that has received 

funding under subsection (b) or (l). 

‘‘(3) APPLICATION AND APPROVAL CRITERIA.—

‘‘(A) CRITERIA.—Subject to subparagraph (B), the Administrator shall develop and publish criteria for the consideration and approval of applications by nonprofit organizations under this subsection. 

‘‘(B) CONTENTS.—Except as otherwise provided in this 

subsection, the conditions for participation in the grant program under this subsection shall be the same as the conditions for participation in the program under subsection (l), 

as in effect on the date of enactment of this Act. 

‘‘(C) NOTIFICATION.—Not later than 60 days after the 

date of the deadline to submit applications for each fiscal 

year, the Administrator shall approve or deny any application under this subsection and notify the applicant for each 

such application. 

‘‘(4) AWARD OF GRANTS.—

‘‘(A) IN GENERAL.—Subject to the availability of appropriations, the Administrator shall make a grant for the 


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Federal share of the cost of activities described in the application to each applicant approved under this subsection. 

‘‘(B) AMOUNT.—A grant under this subsection shall be 

for not more than $150,000, for each year of that grant. 

‘‘(C) FEDERAL SHARE.—The Federal share under this 

subsection shall be not more than 50 percent. 

‘‘(D) PRIORITY.—In allocating funds made available for 

grants under this section, the Administrator shall give applications under this subsection or subsection (l) priority 

over first-time applications under subsection (b). 

‘‘(5) RENEWAL.—

‘‘(A) IN GENERAL.—The Administrator may renew a 

grant under this subsection for additional 3-year periods, if 

the nonprofit organization submits an application for such 

renewal at such time, in such manner, and accompanied by 

such information as the Administrator may establish. 

‘‘(B) UNLIMITED RENEWALS.—There shall be no limitation on the number of times a grant may be renewed under 

subparagraph (A). 

‘‘(n) PRIVACY REQUIREMENTS.—

‘‘(1) IN GENERAL.—A women’s business center may not disclose the name, address, or telephone number of any individual 

or small business concern receiving assistance under this section without the consent of such individual or small business 

concern, unless—

‘‘(A) the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or 

‘‘(B) the Administrator considers such a disclosure to 

be necessary for the purpose of conducting a financial audit 

of a women’s business center, but a disclosure under this 

subparagraph shall be limited to the information necessary 

for such audit. 

‘‘(2) ADMINISTRATION USE OF INFORMATION.—This subsection shall not—

‘‘(A) restrict Administration access to program activity 

data; or 

‘‘(B) prevent the Administration from using client information (other than the information described in subparagraph (A)) to conduct client surveys. 

‘‘(3) REGULATIONS.—The Administrator shall issue regulations to establish standards for requiring disclosures during a 

financial audit under paragraph (1)(B).’’. 

(b) REPEAL.—Section 29(l) of the Small Business Act (15 U.S.C. 

656(l)) is repealed effective October 1 of the first full fiscal year after 

the date of enactment of this Act. 

(c) TRANSITIONAL RULE.—Notwithstanding any other provision 

of law, a grant or cooperative agreement that was awarded under 

subsection (l) of section 29 of the Small Business Act (15 U.S.C. 

656), on or before the day before the date described in subsection (b) 

of this section, shall remain in full force and effect under the terms, 

and for the duration, of such grant or agreement. 


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SEC. 7009. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND 

SUPPLIES MANUFACTURED OUTSIDE THE UNITED 

STATES. 

Section 2 of the Buy American Act (41 U.S.C. 10a) is amended— (1) by striking ‘‘Notwithstanding’’ and inserting the following: 

‘‘(a) IN GENERAL.—Notwithstanding’’; and 

(2) by adding at the end the following: ‘‘(b) REPORTS.— ‘‘(1) IN GENERAL.—Not later than 180 days after the end of 

each of fiscal years 2007 through 2011, the head of each Federal agency shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee 

on Oversight and Government Reform of the House of Representatives a report on the amount of the acquisitions made by 

the agency in that fiscal year of articles, materials, or supplies 

purchased from entities that manufacture the articles, materials, or supplies outside of the United States. ‘‘(2) CONTENTS OF REPORT.—The report required by paragraph (1) shall separately include, for the fiscal year covered by 

such report— ‘‘(A) the dollar value of any articles, materials, or supplies that were manufactured outside the United States; ‘‘(B) an itemized list of all waivers granted with respect 

to such articles, materials, or supplies under this Act, and 

a citation to the treaty, international agreement, or other 

law under which each waiver was granted; ‘‘(C) if any articles, materials, or supplies were acquired from entities that manufacture articles, materials, 

or supplies outside the United States, the specific exception 

under this section that was used to purchase such articles, 

materials, or supplies; and ‘‘(D) a summary of—

‘‘(i) the total procurement funds expended on articles, materials, and supplies manufactured inside the 

United States; and 

‘‘(ii) the total procurement funds expended on articles, materials, and supplies manufactured outside the 

United States. 

‘‘(3) PUBLIC AVAILABILITY.—The head of each Federal agency submitting a report under paragraph (1) shall make the report publicly available to the maximum extent practicable. 

‘‘(4) EXCEPTION FOR INTELLIGENCE COMMUNITY.—This subsection shall not apply to acquisitions made by an agency, or 

component thereof, that is an element of the intelligence community as specified in, or designated under, section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).’’. 

Subtitle C—Small Business Tax Incentives 

SEC. 7510. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Small 

Business and Work Opportunity Tax Act of 2007’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

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pressed in terms of an amendment to, or repeal of, a section or other 

provision, the reference shall be considered to be made to a section 

or other provision of the Internal Revenue Code of 1986. 

(c) TABLE OF CONTENTS.—The table of contents of this subtitle 

is as follows: 

Subtitle C—Small Business Tax Incentives 

Sec. 7510. Short title; amendment of Code; table of contents. 

PART I—SMALL BUSINESS TAX RELIEF PROVISIONS

SUBPART A—GENERAL PROVISIONS

Sec. 7511. Extension and modification of work opportunity tax credit. 

Sec. 7512. Extension and increase of expensing for small business. 

Sec. 7513. Determination of credit for certain taxes paid with respect to employee 

cash tips. 

Sec. 7514. Waiver of individual and corporate alternative minimum tax limits on 

work opportunity credit and credit for taxes paid with respect to employee cash tips. 

Sec. 7515. Family business tax simplification. 

SUBPART B—GULF OPPORTUNITY ZONE TAX INCENTIVES

Sec. 7521. Extension of increased expensing for qualified section 179 Gulf Opportunity Zone property. 

Sec. 7522. Extension and expansion of low-income housing credit rules for buildings 

in the GO Zones. 

Sec. 7523. Special tax-exempt bond financing rule for repairs and reconstructions of 

residences in the GO Zones. 

Sec. 7524. GAO study of practices employed by State and local governments in allocating and utilizing tax incentives provided pursuant to the Gulf Opportunity Zone Act of 2005. 

SUBPART C—SUBCHAPTER S PROVISIONS

Sec. 7531. Capital gain of S corporation not treated as passive investment income. 

Sec. 7532. Treatment of bank director shares. 

Sec. 7533. Special rule for bank required to change from the reserve method of accounting on becoming S corporation. 

Sec. 7534. Treatment of the sale of interest in a qualified subchapter S subsidiary. 

Sec. 7535. Elimination of all earnings and profits attributable to pre-1983 years for 

certain corporations. 

Sec. 7536. Deductibility of interest expense on indebtedness incurred by an electing 

small business trust to acquire S corporation stock. 

PART II—REVENUE PROVISIONS

Sec. 7541. Increase in age of minor children whose unearned income is taxed as if 

parent’s income. 

Sec. 7542. Suspension of certain penalties and interest. 

Sec. 7543. Modification of collection due process procedures for employment tax liabilities. 

Sec. 7544. Permanent extension of IRS user fees. 

Sec. 7545. Increase in penalty for bad checks and money orders. 

Sec. 7546. Understatement of taxpayer liability by return preparers. 

Sec. 7547. Penalty for filing erroneous refund claims. 

Sec. 7548. Time for payment of corporate estimated taxes. 


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PART I—SMALL BUSINESS TAX RELIEF 

PROVISIONS 

Subpart A—General Provisions 

SEC. 7511. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY 

TAX CREDIT. 

(a) EXTENSION.—Section 51(c)(4)(B) (relating to termination) is 

amended by striking ‘‘December 31, 2007’’ and inserting ‘‘August 31, 

2011’’. 

(b) INCREASE IN MAXIMUM AGE FOR DESIGNATED COMMUNITY

RESIDENTS.—

(1) IN GENERAL.—Paragraph (5) of section 51(d) is amended to read as follows: 

‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—

‘‘(A) IN GENERAL.—The term ‘designated community 

resident’ means any individual who is certified by the designated local agency—

‘‘(i) as having attained age 18 but not age 40 on 

the hiring date, and 

‘‘(ii) as having his principal place of abode within 

an empowerment zone, enterprise community, renewal 

community, or rural renewal county. 

‘‘(B) INDIVIDUAL MUST CONTINUE TO RESIDE IN ZONE, 

COMMUNITY, OR COUNTY.—In the case of a designated community resident, the term ‘qualified wages’ shall not include wages paid or incurred for services performed while 

the individual’s principal place of abode is outside an empowerment zone, enterprise community, renewal community, or rural renewal county. 

‘‘(C) RURAL RENEWAL COUNTY.—For purposes of this 

paragraph, the term ‘rural renewal county’ means any 

county which—

‘‘(i) is outside a metropolitan statistical area (defined as such by the Office of Management and Budget), and 

‘‘(ii) during the 5-year periods 1990 through 1994 

and 1995 through 1999 had a net population loss.’’. 

(2) CONFORMING AMENDMENT.—Subparagraph (D) of section 51(d)(1) is amended to read as follows: 

‘‘(D) a designated community resident,’’. 

(c) CLARIFICATION OF TREATMENT OF INDIVIDUALS UNDER INDIVIDUAL WORK PLANS.—Subparagraph (B) of section 51(d)(6) (relating to vocational rehabilitation referral) is amended by striking ‘‘or’’

at the end of clause (i), by striking the period at the end of clause 

(ii) and inserting ‘‘, or’’, and by adding at the end the following new 

clause: 

‘‘(iii) an individual work plan developed and implemented by an employment network pursuant to subsection (g) of section 1148 of the Social Security Act 

with respect to which the requirements of such subsection are met.’’. 

(d) TREATMENT OF DISABLED VETERANS UNDER THE WORK OPPORTUNITY TAX CREDIT.—


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(1) DISABLED VETERANS TREATED AS MEMBERS OF TAR- GETED GROUP.— (A) IN GENERAL.—Subparagraph (A) of section 51(d)(3) 

(relating to qualified veteran) is amended by striking 

‘‘agency as being a member of a family’’ and all that follows and inserting ‘‘agency as— ‘‘(i) being a member of a family receiving assistance under a food stamp program under the Food 

Stamp Act of 1977 for at least a 3-month period ending 

during the 12-month period ending on the hiring date, 

or ‘‘(ii) entitled to compensation for a service-connected disability, and— ‘‘(I) having a hiring date which is not more 

that 1 year after having been discharged or released from active duty in the Armed Forces of the 

United States, or ‘‘(II) having aggregate periods of unemployment during the 1-year period ending on the hiring 

date which equal or exceed 6 months.’’. (B) DEFINITIONS.—Paragraph (3) of section 51(d) is 

amended by adding at the end the following new subparagraph: 

‘‘(C) OTHER DEFINITIONS.—For purposes of subparagraph (A), the terms ‘compensation’ and ‘service-connected’

have the meanings given such terms under section 101 of 

title 38, United States Code.’’. 

(2) INCREASE IN AMOUNT OF WAGES TAKEN INTO ACCOUNT

FOR DISABLED VETERANS.—Paragraph (3) of section 51(b) is 

amended—

(A) by inserting ‘‘($12,000 per year in the case of any 

individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii))’’ before the period at the end, and 

(B) by striking ‘‘ONLY FIRST $6,000 OF’’ in the heading 

and inserting ‘‘LIMITATION ON’’. (e) EFFECTIVE DATE.—The amendments made by this section 

shall apply to individuals who begin work for the employer after the 

date of the enactment of this Act. 

SEC. 7512. EXTENSION AND INCREASE OF EXPENSING FOR SMALL 

BUSINESS. 

(a) EXTENSION.—Subsections (b)(1), (b)(2), (b)(5), (c)(2), and 

(d)(1)(A)(ii) of section 179 (relating to election to expense certain depreciable business assets) are each amended by striking ‘‘2010’’ and 

inserting ‘‘2011’’. 

(b) INCREASE IN LIMITATIONS.—Subsection (b) of section 179 is 

amended—

(1) by striking ‘‘$100,000 in the case of taxable years beginning after 2002’’ in paragraph (1) and inserting ‘‘$125,000 in 

the case of taxable years beginning after 2006’’, and 

(2) by striking ‘‘$400,000 in the case of taxable years beginning after 2002’’ in paragraph (2) and inserting ‘‘$500,000 in 

the case of taxable years beginning after 2006’’. 

(c) INFLATION ADJUSTMENT.—Subparagraph (A) of section 

179(b)(5) is amended—

(1) by striking ‘‘2003’’ and inserting ‘‘2007’’, 


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(2) by striking ‘‘$100,000 and $400,000’’ and inserting ‘‘$125,000 and $500,000’’, and 

(3) by striking ‘‘2002’’ in clause (ii) and inserting ‘‘2006’’. (d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

SEC. 7513. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID 

WITH RESPECT TO EMPLOYEE CASH TIPS. 

(a) IN GENERAL.—Subparagraph (B) of section 45B(b)(1) is 

amended by inserting ‘‘as in effect on January 1, 2007, and’’ before ‘‘determined without regard to’’. (b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to tips received for services performed after December 

31, 2006. 

SEC. 7514. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE 

MINIMUM TAX LIMITS ON WORK OPPORTUNITY CREDIT 

AND CREDIT FOR TAXES PAID WITH RESPECT TO EMPLOYEE CASH TIPS. 

(a) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.—Subparagraph (B) of section 38(c)(4) is amended by striking ‘‘and’’ at 

the end of clause (i), by inserting a comma at the end of clause (ii), 

and by adding at the end the following new clauses: ‘‘(iii) the credit determined under section 45B, and 

‘‘(iv) the credit determined under section 51.’’. (b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to credits determined under sections 45B and 51 of the 

Internal Revenue Code of 1986 in taxable years beginning after December 31, 2006, and to carrybacks of such credits. 

SEC. 7515. FAMILY BUSINESS TAX SIMPLIFICATION. 

(a) IN GENERAL.—Section 761 (defining terms for purposes of 

partnerships) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new 

subsection: ‘‘(f) QUALIFIED JOINT VENTURE.— ‘‘(1) IN GENERAL.—In the case of a qualified joint venture 

conducted by a husband and wife who file a joint return for the 

taxable year, for purposes of this title— ‘‘(A) such joint venture shall not be treated as a partnership, ‘‘(B) all items of income, gain, loss, deduction, and 

credit shall be divided between the spouses in accordance 

with their respective interests in the venture, and 

‘‘(C) each spouse shall take into account such spouse’s 

respective share of such items as if they were attributable 

to a trade or business conducted by such spouse as a sole 

proprietor. 

‘‘(2) QUALIFIED JOINT VENTURE.—For purposes of paragraph (1), the term ‘qualified joint venture’ means any joint 

venture involving the conduct of a trade or business if—

‘‘(A) the only members of such joint venture are a husband and wife, ‘‘(B) both spouses materially participate (within the 

meaning of section 469(h) without regard to paragraph (5) 

thereof) in such trade or business, and ‘‘(C) both spouses elect the application of this subsection.’’. 


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(b) NET EARNINGS FROM SELF-EMPLOYMENT.—

(1) Subsection (a) of section 1402 (defining net earnings 

from self-employment) is amended by striking ‘‘, and’’ at the end 

of paragraph (15) and inserting a semicolon, by striking the period at the end of paragraph (16) and inserting ‘‘; and’’, and by 

inserting after paragraph (16) the following new paragraph: 

‘‘(17) notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified 

joint venture shall be taken into account as provided in section 

761(f) in determining net earnings from self-employment of such 

spouse.’’. 

(2) Subsection (a) of section 211 of the Social Security Act 

(defining net earnings from self-employment) is amended by 

striking ‘‘and’’ at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ‘‘; and’’, and by 

inserting after paragraph (15) the following new paragraph: 

‘‘(16) Notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified 

joint venture shall be taken into account as provided in section 

761(f) of the Internal Revenue Code of 1986 in determining net 

earnings from self-employment of such spouse.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

Subpart B—Gulf Opportunity Zone Tax Incentives 

SEC. 7521. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED 

SECTION 179 GULF OPPORTUNITY ZONE PROPERTY. 

Paragraph (2) of section 1400N(e) (relating to qualified section 

179 Gulf Opportunity Zone property) is amended—

(1) by striking ‘‘this subsection, the term’’ and inserting 

‘‘this subsection—

‘‘(A) IN GENERAL.—The term’’, and 

(2) by adding at the end the following new subparagraph: 

‘‘(B) EXTENSION FOR CERTAIN PROPERTY.—In the case 

of property substantially all of the use of which is in one 

or more specified portions of the GO Zone (as defined by 

subsection (d)(6)), such term shall include section 179 property (as so defined) which is described in subsection (d)(2), 

determined—

‘‘(i) without regard to subsection (d)(6), and 

‘‘(ii) by substituting ‘2008’ for ‘2007’ in subparagraph (A)(v) thereof.’’. 

SEC. 7522. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING 

CREDIT RULES FOR BUILDINGS IN THE GO ZONES. 

(a) TIME FOR MAKING LOW-INCOME HOUSING CREDIT ALLOCATIONS.—Subsection (c) of section 1400N (relating to low-income 

housing credit) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new 

paragraph: 

‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING CREDIT ALLOCATIONS.—Section 42(h)(1)(B) shall not apply to an allocation 

of housing credit dollar amount to a building located in the 

Gulf Opportunity Zone, the Rita GO Zone, or the Wilma GO 


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Zone, if such allocation is made in 2006, 2007, or 2008, and 

such building is placed in service before January 1, 2011.’’. 

(b) EXTENSION OF PERIOD FOR TREATING GO ZONES AS DIFFICULT DEVELOPMENT AREAS.—

(1) IN GENERAL.—Subparagraph (A) of section 1400N(c)(3) 

is amended by striking ‘‘2006, 2007, or 2008’’ and inserting ‘‘the 

period beginning on January 1, 2006, and ending on December 

31, 2010’’. 

(2) CONFORMING AMENDMENT.—Clause (ii) of section 

1400N(c)(3)(B) is amended by striking ‘‘such period’’ and inserting ‘‘the period described in subparagraph (A)’’. 

(c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT TAKEN INTO

ACCOUNT IN DETERMINING IF BUILDINGS ARE FEDERALLY SUBSIDIZED.—Subsection (c) of section 1400N (relating to low-income 

housing credit), as amended by this Act, is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: 

‘‘(6) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT TAKEN

INTO ACCOUNT IN DETERMINING IF BUILDINGS ARE FEDERALLY

SUBSIDIZED.—For purpose of applying section 42(i)(2)(D) to any 

building which is placed in service in the Gulf Opportunity 

Zone, the Rita GO Zone, or the Wilma GO Zone during the period beginning on January 1, 2006, and ending on December 

31, 2010, a loan shall not be treated as a below market Federal 

loan solely by reason of any assistance provided under section 

106, 107, or 108 of the Housing and Community Development 

Act of 1974 by reason of section 122 of such Act or any provision of the Department of Defense Appropriations Act, 2006, or 

the Emergency Supplemental Appropriations Act for Defense, 

the Global War on Terror, and Hurricane Recovery, 2006.’’. 

SEC. 7523. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND RECONSTRUCTIONS OF RESIDENCES IN THE 

GO ZONES. 

Subsection (a) of section 1400N (relating to tax-exempt bond financing) is amended by adding at the end the following new paragraph: 

‘‘(7) SPECIAL RULE FOR REPAIRS AND RECONSTRUCTIONS.—

‘‘(A) IN GENERAL.—For purposes of section 143 and this 

subsection, any qualified GO Zone repair or reconstruction 

shall be treated as a qualified rehabilitation. 

‘‘(B) QUALIFIED GO ZONE REPAIR OR RECONSTRUCTION.—For purposes of subparagraph (A), the term ‘qualified GO Zone repair or reconstruction’ means any repair of 

damage caused by Hurricane Katrina, Hurricane Rita, or 

Hurricane Wilma to a building located in the Gulf Opportunity Zone, the Rita GO Zone, or the Wilma GO Zone (or 

reconstruction of such building in the case of damage constituting destruction) if the expenditures for such repair or 

reconstruction are 25 percent or more of the mortgagor’s adjusted basis in the residence. For purposes of the preceding 

sentence, the mortgagor’s adjusted basis shall be determined as of the completion of the repair or reconstruction 

or, if later, the date on which the mortgagor acquires the 

residence. 


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‘‘(C) TERMINATION.—This paragraph shall apply only 

to owner-financing provided after the date of the enactment 

of this paragraph and before January 1, 2011.’’. 

SEC. 7524. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND 

LOCAL GOVERNMENTS IN ALLOCATING AND UTILIZING 

TAX INCENTIVES PROVIDED PURSUANT TO THE GULF OPPORTUNITY ZONE ACT OF 2005. 

(a) IN GENERAL.—The Comptroller General of the United States 

shall conduct a study of the practices employed by State and local 

governments, and subdivisions thereof, in allocating and utilizing 

tax incentives provided pursuant to the Gulf Opportunity Zone Act 

of 2005 and this Act. 

(b) SUBMISSION OF REPORT.—Not later than one year after the 

date of the enactment of this Act, the Comptroller General shall submit a report on the findings of the study conducted under subsection 

(a) and shall include therein recommendations (if any) relating to 

such findings. The report shall be submitted to the Committee on 

Ways and Means of the House of Representatives and the Committee 

on Finance of the Senate. 

(c) CONGRESSIONAL HEARINGS.—In the case that the report submitted under this section includes findings of significant fraud, 

waste or abuse, each Committee specified in subsection (b) shall, 

within 60 days after the date the report is submitted under subsection (b), hold a public hearing to review such findings. 

Subpart C—Subchapter S Provisions 

SEC. 7531. CAPITAL GAIN OF S CORPORATION NOT TREATED AS PASSIVE INVESTMENT INCOME. 

(a) IN GENERAL.—Section 1362(d)(3) is amended by striking 

subparagraphs (B), (C), (D), (E), and (F) and inserting the following 

new subparagraph: 

‘‘(B) PASSIVE INVESTMENT INCOME DEFINED.—

‘‘(i) IN GENERAL.—Except as otherwise provided in 

this subparagraph, the term ‘passive investment income’ means gross receipts derived from royalties, 

rents, dividends, interest, and annuities. 

‘‘(ii) EXCEPTION FOR INTEREST ON NOTES FROM

SALES OF INVENTORY.—The term ‘passive investment 

income’ shall not include interest on any obligation acquired in the ordinary course of the corporation’s trade 

or business from its sale of property described in section 1221(a)(1). 

‘‘(iii) TREATMENT OF CERTAIN LENDING OR FINANCE

COMPANIES.—If the S corporation meets the requirements of section 542(c)(6) for the taxable year, the term 

‘passive investment income’ shall not include gross receipts for the taxable year which are derived directly 

from the active and regular conduct of a lending or finance business (as defined in section 542(d)(1)). 

‘‘(iv) TREATMENT OF CERTAIN DIVIDENDS.—If an S 

corporation holds stock in a C corporation meeting the 

requirements of section 1504(a)(2), the term ‘passive investment income’ shall not include dividends from such 

C corporation to the extent such dividends are attribVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00085 Fmt 6659 Sfmt 6603 E:\HR\OC\HR107.XXX HR107

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utable to the earnings and profits of such C corporation derived from the active conduct of a trade or business. ‘‘(v) EXCEPTION FOR BANKS, ETC.—In the case of a 

bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of 

the Federal Deposit Insurance Act (12 U.S.C. 

1813(w)(1)), the term ‘passive investment income’ shall 

not include— ‘‘(I) interest income earned by such bank or 

company, or ‘‘(II) dividends on assets required to be held by 

such bank or company, including stock in the Federal Reserve Bank, the Federal Home Loan Bank, 

or the Federal Agricultural Mortgage Bank or participation certificates issued by a Federal Intermediate Credit Bank.’’. (b) CONFORMING AMENDMENT.—Clause (i) of section 

1042(c)(4)(A) is amended by striking ‘‘section 1362(d)(3)(C)’’ and inserting ‘‘section 1362(d)(3)(B)’’. (c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 7532. TREATMENT OF BANK DIRECTOR SHARES. 

(a) IN GENERAL.—Section 1361 (defining S corporation) is 

amended by adding at the end the following new subsection: ‘‘(f) RESTRICTED BANK DIRECTOR STOCK.— ‘‘(1) IN GENERAL.—Restricted bank director stock shall not 

be taken into account as outstanding stock of the S corporation 

in applying this subchapter (other than section 1368(f)). ‘‘(2) RESTRICTED BANK DIRECTOR STOCK.—For purposes of 

this subsection, the term ‘restricted bank director stock’ means 

stock in a bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of the 

Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), if such 

stock— ‘‘(A) is required to be held by an individual under applicable Federal or State law in order to permit such individual to serve as a director, and ‘‘(B) is subject to an agreement with such bank or company (or a corporation which controls (within the meaning 

of section 368(c)) such bank or company) pursuant to which 

the holder is required to sell back such stock (at the same 

price as the individual acquired such stock) upon ceasing 

to hold the office of director. 

‘‘(3) CROSS REFERENCE.—

‘‘For treatment of certain distributions with respect to restricted bank director stock, 

see section 1368(f)’’. 

(b) DISTRIBUTIONS.—Section 1368 (relating to distributions) is 

amended by adding at the end the following new subsection: 

‘‘(f) RESTRICTED BANK DIRECTOR STOCK.—If a director receives 

a distribution (not in part or full payment in exchange for stock) 

from an S corporation with respect to any restricted bank director 

stock (as defined in section 1361(f)), the amount of such distribution—


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‘‘(1) shall be includible in gross income of the director, and 

‘‘(2) shall be deductible by the corporation for the taxable 

year of such corporation in which or with which ends the taxable year in which such amount in included in the gross income 

of the director.’’. 

(c) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

(2) SPECIAL RULE FOR TREATMENT AS SECOND CLASS OF

STOCK.—In the case of any taxable year beginning after December 31, 1996, restricted bank director stock (as defined in section 1361(f) of the Internal Revenue Code of 1986, as added by 

this section) shall not be taken into account in determining 

whether an S corporation has more than 1 class of stock. 

SEC. 7533. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE 

RESERVE METHOD OF ACCOUNTING ON BECOMING S CORPORATION. 

(a) IN GENERAL.—Section 1361, as amended by this Act, is 

amended by adding at the end the following new subsection: 

‘‘(g) SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE

RESERVE METHOD OF ACCOUNTING ON BECOMING S CORPORATION.—In the case of a bank which changes from the reserve method 

of accounting for bad debts described in section 585 or 593 for its 

first taxable year for which an election under section 1362(a) is in 

effect, the bank may elect to take into account any adjustments 

under section 481 by reason of such change for the taxable year immediately preceding such first taxable year.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 

SEC. 7534. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED 

SUBCHAPTER S SUBSIDIARY. 

(a) IN GENERAL.—Subparagraph (C) of section 1361(b)(3) (relating to treatment of terminations of qualified subchapter S subsidiary status) is amended—

(1) by striking ‘‘For purposes of this title,’’ and inserting the 

following: 

‘‘(i) IN GENERAL.—For purposes of this title,’’, and 

(2) by inserting at the end the following new clause: 

‘‘(ii) TERMINATION BY REASON OF SALE OF STOCK.—

If the failure to meet the requirements of subparagraph 

(B) is by reason of the sale of stock of a corporation 

which is a qualified subchapter S subsidiary, the sale 

of such stock shall be treated as if—

‘‘(I) the sale were a sale of an undivided interest in the assets of such corporation (based on the 

percentage of the corporation’s stock sold), and 

‘‘(II) the sale were followed by an acquisition 

by such corporation of all of its assets (and the assumption by such corporation of all of its liabilities) in a transaction to which section 351 applies.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2006. 


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SEC. 7535. ELIMINATION OF ALL EARNINGS AND PROFITS ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN CORPORATIONS. 

In the case of a corporation which is—

(1) described in section 1311(a)(1) of the Small Business 

Job Protection Act of 1996, and 

(2) not described in section 1311(a)(2) of such Act, 

the amount of such corporation’s accumulated earnings and profits 

(for the first taxable year beginning after the date of the enactment 

of this Act) shall be reduced by an amount equal to the portion (if 

any) of such accumulated earnings and profits which were accumulated in any taxable year beginning before January 1, 1983, for 

which such corporation was an electing small business corporation 

under subchapter S of the Internal Revenue Code of 1986. 

SEC. 7536. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS 

INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO 

ACQUIRE S CORPORATION STOCK. 

(a) IN GENERAL.—Subparagraph (C) of section 641(c)(2) (relating to modifications) is amended by inserting after clause (iii) the 

following new clause: 

‘‘(iv) Any interest expense paid or accrued on indebtedness incurred to acquire stock in an S corporation.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after December 31, 2006. 

PART II—REVENUE PROVISIONS 

SEC. 7541. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED 

INCOME IS TAXED AS IF PARENT’S INCOME. 

(a) IN GENERAL.—Subparagraph (A) of section 1(g)(2) (relating 

to child to whom subsection applies) is amended to read as follows: 

‘‘(A) such child—

‘‘(i) has not attained age 18 before the close of the 

taxable year, or 

‘‘(ii)(I) has attained age 18 before the close of the 

taxable year and meets the age requirements of section 

152(c)(3) (determined without regard to subparagraph 

(B) thereof), and 

‘‘(II) whose earned income (as defined in section 

911(d)(2)) for such taxable year does not exceed onehalf of the amount of the individual’s support (within 

the meaning of section 152(c)(1)(D) after the application of section 152(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year,’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to taxable years beginning after the date of the enactment of this Act. 

SEC. 7542. SUSPENSION OF CERTAIN PENALTIES AND INTEREST. 

(a) IN GENERAL.—Paragraphs (1)(A) and (3)(A) of section 

6404(g) are each amended by striking ‘‘18-month period’’ and inserting ‘‘36-month period’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to notices provided by the Secretary of the Treasury, or 


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his delegate, after the date which is 6 months after the date of the 

enactment of this Act. 

SEC. 7543. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES FOR EMPLOYMENT TAX LIABILITIES. 

(a) IN GENERAL.—Section 6330(f) (relating to jeopardy and 

State refund collection) is amended—

(1) by striking ‘‘; or’’ at the end of paragraph (1) and inserting a comma, 

(2) by adding ‘‘or’’ at the end of paragraph (2), and 

(3) by inserting after paragraph (2) the following new paragraph: 

‘‘(3) the Secretary has served a disqualified employment tax 

levy,’’. 

(b) DISQUALIFIED EMPLOYMENT TAX LEVY.—Section 6330 of 

such Code (relating to notice and opportunity for hearing before 

levy) is amended by adding at the end the following new subsection: 

‘‘(h) DISQUALIFIED EMPLOYMENT TAX LEVY.—For purposes of 

subsection (f), a disqualified employment tax levy is any levy in connection with the collection of employment taxes for any taxable period if the person subject to the levy (or any predecessor thereof) requested a hearing under this section with respect to unpaid employment taxes arising in the most recent 2-year period before the beginning of the taxable period with respect to which the levy is served. 

For purposes of the preceding sentence, the term ‘employment taxes’

means any taxes under chapter 21, 22, 23, or 24.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to levies served on or after the date that is 120 days 

after the date of the enactment of this Act. 

SEC. 7544. PERMANENT EXTENSION OF IRS USER FEES. 

Section 7528 (relating to Internal Revenue Service user fees) is 

amended by striking subsection (c). 

SEC. 7545. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY ORDERS. 

(a) IN GENERAL.—Section 6657 (relating to bad checks) is 

amended—

(1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, and 

(2) by striking ‘‘$15’’ and inserting ‘‘$25’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

apply to checks or money orders received after the date of the enactment of this Act. 

SEC. 7546. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN 

PREPARERS. 

(a) APPLICATION OF RETURN PREPARER PENALTIES TO ALL TAX

RETURNS.—

(1) DEFINITION OF TAX RETURN PREPARER.—Paragraph (36) 

of section 7701(a) (relating to income tax preparer) is amended—

(A) by striking ‘‘income’’ each place it appears in the 

heading and the text, and 

(B) in subparagraph (A), by striking ‘‘subtitle A’’ each 

place it appears and inserting ‘‘this title’’. 

(2) CONFORMING AMENDMENTS.—


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(A)(i) Section 6060 is amended by striking ‘‘INCOME 

TAX RETURN PREPARERS’’ in the heading and inserting ‘‘TAX RETURN PREPARERS’’. (ii) Section 6060(a) is amended— (I) by striking ‘‘an income tax return preparer’’ each place it appears and inserting ‘‘a tax return preparer’’, 

(II) by striking ‘‘each income tax return preparer’’ and inserting ‘‘each tax return preparer’’, and 

(III) by striking ‘‘another income tax return preparer’’ and inserting ‘‘another tax return preparer’’. (iii) The item relating to section 6060 in the table of 

sections for subpart F of part III of subchapter A of chapter 

61 is amended by striking ‘‘income tax return preparers’’ and inserting ‘‘tax return preparers’’. (iv) Subpart F of part III of subchapter A of chapter 61 

is amended by striking ‘‘Income Tax Return Preparers’’ in the heading and inserting ‘‘Tax Return Preparers’’. (v) The item relating to subpart F in the table of subparts for part III of subchapter A of chapter 61 is amended 

by striking ‘‘income tax return preparers’’ and inserting ‘‘tax 

return preparers’’. (B) Section 6103(k)(5) is amended— (i) by striking ‘‘income tax return preparer’’ each 

place it appears and inserting ‘‘tax return preparer’’, and 

(ii) by striking ‘‘income tax return preparers’’ each 

place it appears and inserting ‘‘tax return preparers’’. (C)(i) Section 6107 is amended— (I) by striking ‘‘INCOME TAX RETURN PREPARER’’ in the heading and inserting ‘‘TAX RETURN PREPARER’’, (II) by striking ‘‘an income tax return preparer’’ each place it appears in subsections (a) and (b) and inserting ‘‘a tax return preparer’’, 

(III) by striking ‘‘INCOME TAX RETURN PREPARER’’ in the heading for subsection (b) and inserting ‘‘TAX

RETURN PREPARER’’, and 

(IV) in subsection (c), by striking ‘‘income tax return preparers’’ and inserting ‘‘tax return preparers’’. (ii) The item relating to section 6107 in the table of sections for subchapter B of chapter 61 is amended by striking 

‘‘Income tax return preparer’’ and inserting ‘‘Tax return preparer’’. 

(D) Section 6109(a)(4) is amended— (i) by striking ‘‘an income tax return preparer’’ and 

inserting ‘‘a tax return preparer’’, and 

(ii) by striking ‘‘INCOME RETURN PREPARER’’ in the 

heading and inserting ‘‘TAX RETURN PREPARER’’. (E) Section 6503(k)(4) is amended by striking ‘‘Income 

tax return preparers’’ and inserting ‘‘Tax return preparers’’. (F)(i) Section 6694 is amended— (I) by striking ‘‘INCOME TAX RETURN PREPARER’’ in the heading and inserting ‘‘TAX RETURN PREPARER’’, 


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(II) by striking ‘‘an income tax return preparer’’ each place it appears and inserting ‘‘a tax return preparer’’, 

(III) in subsection (c)(2), by striking ‘‘the income 

tax return preparer’’ and inserting ‘‘the tax return preparer’’, 

(IV) in subsection (e), by striking ‘‘subtitle A’’ and 

inserting ‘‘this title’’, and 

(V) in subsection (f), by striking ‘‘income tax return 

preparer’’ and inserting ‘‘tax return preparer’’. (ii) The item relating to section 6694 in the table of sections for part I of subchapter B of chapter 68 is amended 

by striking ‘‘income tax return preparer’’ and inserting ‘‘tax 

return preparer’’. (G)(i) Section 6695 is amended— (I) by striking ‘‘INCOME’’ in the heading, and 

(II) by striking ‘‘an income tax return preparer’’ each place it appears and inserting ‘‘a tax return preparer’’. (ii) Section 6695(f) is amended— (I) by striking ‘‘subtitle A’’ and inserting ‘‘this 

title’’, and 

(II) by striking ‘‘the income tax return preparer’’ and inserting ‘‘the tax return preparer’’. (iii) The item relating to section 6695 in the table of 

sections for part I of subchapter B of chapter 68 is amended 

by striking ‘‘income’’. (H) Section 6696(e) is amended by striking ‘‘subtitle A’’ each place it appears and inserting ‘‘this title’’. (I)(i) Section 7407 is amended— (I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ in the heading and inserting ‘‘TAX RETURN PREPARERS’’, (II) by striking ‘‘an income tax return preparer’’

each place it appears and inserting ‘‘a tax return preparer’’, 

(III) by striking ‘‘income tax preparer’’ both places 

it appears in subsection (a) and inserting ‘‘tax return 

preparer’’, and 

(IV) by striking ‘‘income tax return’’ in subsection 

(a) and inserting ‘‘tax return’’. 

(ii) The item relating to section 7407 in the table of sections for subchapter A of chapter 76 is amended by striking 

‘‘income tax return preparers’’ and inserting ‘‘tax return 

preparers’’. 

(J)(i) Section 7427 is amended—

(I) by striking ‘‘INCOME TAX RETURN PREPARERS’’ in the heading and inserting ‘‘TAX RETURN PREPARERS’’, and 

(II) by striking ‘‘an income tax return preparer’’

and inserting ‘‘a tax return preparer’’. 

(ii) The item relating to section 7427 in the table of sections for subchapter B of chapter 76 is amended to read as 

follows: 

‘‘Sec. 7427. Tax return preparers.’’. 


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(b) MODIFICATION OF PENALTY FOR UNDERSTATEMENT OF TAX- PAYER’S LIABILITY BY TAX RETURN PREPARER.—Subsections (a) and 

(b) of section 6694 are amended to read as follows: ‘‘(a) UNDERSTATEMENT DUE TO UNREASONABLE POSITIONS.— ‘‘(1) IN GENERAL.—Any tax return preparer who prepares 

any return or claim for refund with respect to which any part 

of an understatement of liability is due to a position described 

in paragraph (2) shall pay a penalty with respect to each such 

return or claim in an amount equal to the greater of— ‘‘(A) $1,000, or 

‘‘(B) 50 percent of the income derived (or to be derived) 

by the tax return preparer with respect to the return or 

claim. 

‘‘(2) UNREASONABLE POSITION.—A position is described in 

this paragraph if— ‘‘(A) the tax return preparer knew (or reasonably 

should have known) of the position, ‘‘(B) there was not a reasonable belief that the position 

would more likely than not be sustained on its merits, and ‘‘(C)(i) the position was not disclosed as provided in 

section 6662(d)(2)(B)(ii), or ‘‘(ii) there was no reasonable basis for the position. ‘‘(3) REASONABLE CAUSE EXCEPTION.—No penalty shall be 

imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith. 

‘‘(b) UNDERSTATEMENT DUE TO WILLFUL OR RECKLESS CON- DUCT.— ‘‘(1) IN GENERAL.—Any tax return preparer who prepares 

any return or claim for refund with respect to which any part 

of an understatement of liability is due to a conduct described 

in paragraph (2) shall pay a penalty with respect to each such 

return or claim in an amount equal to the greater of— ‘‘(A) $5,000, or 

‘‘(B) 50 percent of the income derived (or to be derived) 

by the tax return preparer with respect to the return or 

claim. 

‘‘(2) WILLFUL OR RECKLESS CONDUCT.—Conduct described 

in this paragraph is conduct by the tax return preparer which 

is— ‘‘(A) a willful attempt in any manner to understate the 

liability for tax on the return or claim, or 

‘‘(B) a reckless or intentional disregard of rules or regulations. 

‘‘(3) REDUCTION IN PENALTY.—The amount of any penalty 

payable by any person by reason of this subsection for any return or claim for refund shall be reduced by the amount of the 

penalty paid by such person by reason of subsection (a).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to returns prepared after the date of the enactment of 

this Act. 

SEC. 7547. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS. 

(a) IN GENERAL.—Part I of subchapter B of chapter 68 (relating 

to assessable penalties) is amended by inserting after section 6675 

the following new section: 


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‘‘SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT. 

‘‘(a) CIVIL PENALTY.—If a claim for refund or credit with respect 

to income tax (other than a claim for a refund or credit relating to 

the earned income credit under section 32) is made for an excessive 

amount, unless it is shown that the claim for such excessive amount 

has a reasonable basis, the person making such claim shall be liable for a penalty in an amount equal to 20 percent of the excessive 

amount. ‘‘(b) EXCESSIVE AMOUNT.—For purposes of this section, the term ‘excessive amount’ means in the case of any person the amount by 

which the amount of the claim for refund or credit for any taxable 

year exceeds the amount of such claim allowable under this title for 

such taxable year. ‘‘(c) COORDINATION WITH OTHER PENALTIES.—This section shall 

not apply to any portion of the excessive amount of a claim for refund or credit which is subject to a penalty imposed under part II 

of subchapter A of chapter 68.’’. (b) CONFORMING AMENDMENT.—The table of sections for part I 

of subchapter B of chapter 68 is amended by inserting after the item 

relating to section 6675 the following new item: 

‘‘Sec. 6676. Erroneous claim for refund or credit.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to any claim filed or submitted after the date of the enactment of this Act. 

SEC. 7548. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

Subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking ‘‘106.25 

percent’’ and inserting ‘‘114.25 percent’’. This Act may be cited as the ‘‘U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations 

Act, 2007’’. And the Senate agree to the same. 

DAVID R. OBEY, 

ROSA L. DELAURO, 

JOHN P. MURTHA, 

PETER J. VISCLOSKY, 

NITA LOWEY, 

CAROLYN KILPATRICK, 

NORMAN D. DICKS, 

CHET EDWARDS, 

ALAN B. MOLLOHAN, 

JOHN OLVER, 

JOSE ́ E. SERRANO, 

DEBBIE WASSERMAN SCHULTZ, 

JAMES E. CLYBURN, 

Managers on the Part of the House. 

ROBERT C. BYRD, 

DANIEL K. INOUYE, 

PATRICK J. LEAHY, 

TOM HARKIN, 

BARBARA A. MIKULSKI, 

HERB KOHL, 

PATTY MURRAY, 

BYRON L. DORGAN, 


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DIANNE FEINSTEIN, RICHARD J. DURBIN, TIM JOHNSON, MARY L. LANDRIEU, JACK REED, FRANK R. LAUTENBERG, BEN NELSON, Managers on the Part of the Senate. 


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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the Senate to the bill (H.R. 1591) making emergency 

supplemental appropriations for the fiscal year ending September 

30, 2007, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effects of 

the action agreed upon by the managers and recommended in the 

accompanying conference report. 

Report language included by the House in the report accompanying H.R. 1591 (H. Rept. 110–60) and included by the Senate 

in the report accompanying S. 965 (S. Rept. 110–37) should be complied with unless specifically addressed in this statement of the 

managers. The statement of the managers, while repeating some 

report language for emphasis, is not intended to negate the language referred to above unless expressly provided herein. 

The conference agreement designates amounts in title I as 

emergency requirements pursuant to section 402 of H. Con. Res. 95 

(109th Congress) and as making appropriations for contingency operations directly related to the global war on terrorism and other 

unanticipated defense-related operations pursuant to section 402 of 

H. Con. Res. 376 (109th Congress). Further, the agreement designates amounts in titles II, III, V, and VI as emergency requirements pursuant to section 402 of H. Con. Res. 95 (109th Congress) 

and pursuant to section 501 of H. Con. Res. 376 (109th Congress). 

The House proposed designations under H. Con. Res. 376 on an 

item-by-item basis, while the Senate included designations under 

H. Con. Res. 95 title-by-title. 

TITLE I—SUPPLEMENTAL APPROPRIATIONS FOR THE 

GLOBAL WAR ON TERROR 

CHAPTER 1—DEPARTMENT OF AGRICULTURE 

FOREIGN AGRICULTURAL SERVICE

PUBLIC LAW 480 TITLE II GRANTS

The conference agreement provides $460,000,000, to be available until expended, for Public Law 480 Title II grants, instead of 

$450,000,000 as proposed by the House and $475,000,000 as proposed by the Senate. 

The Farm Security and Rural Investment Act of 2002 required 

the establishment of a micronutrient fortification program relating 

to the utilization of foods for humanitarian assistance programs 

such as title II of Public Law 480. The conferees encourage the Secretary of Agriculture to move forward with such a program. The 


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conferees direct that any such funds used for this purpose during 

fiscal year 2007 should be used for internal federal agency operations to develop a framework for this program and not be used for 

the purpose of executing any grant, contract, or cooperative agreement with a non-federal entity. 

GENERAL PROVISION—THIS CHAPTER 

SEC. 1101. The conference agreement provides $40,000,000, instead of $82,000,000 as proposed by the Senate, for replenishment 

of the Bill Emerson Humanitarian Trust. 

The conferees direct the Secretary to provide quarterly reports 

to the Committees on Appropriations of the House of Representatives and the Senate on the available cash, amount of commodity 

by type, and detail of disbursements made during that quarterly 

period. 

CHAPTER 2—DEPARTMENT OF JUSTICE 

LEGAL ACTIVITIES

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

The conference agreement includes $1,648,000 for General 

Legal Activities for the Criminal Division as proposed by the 

House, instead of $4,093,000 as proposed by the Senate and requested by the President. The funds are provided for litigation support services to the Special Inspector General for Iraqi Reconstruction for ongoing investigations and cases involving corruption in 

the reconstruction of Iraq. The conference agreement does not include $2,445,000 as requested by the President and as proposed by 

the Senate to create Iraq and Afghanistan Support Units within 

General Legal Activities, Criminal Division. While the conferees 

support these activities, they can be provided for with funds available to the Secretary of State. 

SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

The conference agreement includes $5,000,000 for the United 

States Attorneys as proposed by the House and requested by the 

President, instead of $12,500,000 as proposed by the Senate. The 

funds are provided for extraordinary litigation expenses associated 

with terrorism prosecutions. 

UNITED STATES MARSHALS SERVICE

SALARIES AND EXPENSES

The conference agreement includes $6,450,000 for the United 

States Marshals Service, instead of $2,750,000 as proposed by the 

House and $32,500,000 as proposed by the Senate. The funds are 

provided for security at high-threat terrorist trials in the United 

States and to support judicial and witness security in Afghanistan. 

The conference agreement does not include a rescission of 

$15,000,000 from funds made available in this Act for Department 

of State Educational and Cultural Exchange Programs, as proposed 

by the Senate. 


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The conferees are aware of substandard conditions in space occupied by U.S. Marshals Service employees in the Moultrie Courthouse Building in the District of Columbia. The Senate bill included funds within chapter 2 of title I for the U.S. Marshals to address some of the problems, but the conference agreement does not 

include these funds. The conferees direct the U.S. Marshals and 

the District of Columbia Courts to work together in a coordinated 

manner to develop a renovation and improvement plan that addresses these issues. The conferees believe that the Committees on 

Appropriations should consider progress in these plans when developing the fiscal year 2008 appropriations bills. 

The conferees also direct that the Inspector General of the Department of Justice shall conduct a review of the health, safety, 

and security conditions in the Moultrie Courthouse Building space 

occupied by the U.S. Marshals. Not later than 90 days after the 

date of the enactment of this Act, the Inspector General of the Department of Justice shall submit to the Committees on Appropriations a written report that contains the findings of the review and 

includes recommendations, as may be appropriate. 

NATIONAL SECURITY DIVISION

SALARIES AND EXPENSES

The conference agreement includes $1,736,000 for the National 

Security Division for investigations and prosecutions as proposed 

by the House and Senate. 

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

The conference agreement includes $268,000,000 for the Fed- eral Bureau of Investigation (FBI) instead of $118,260,000 as proposed by the House and as requested by the President and 

$348,260,000 as proposed by the Senate. Funding is provided for 

counterterrorism and weapons of mass destruction operations and 

support requirements. 

The conferees concur with the language in the Senate report 

regarding the March 2007 report by the Office of Inspector General 

(OIG) regarding the FBI’s use of national security letters. The conferees are extremely concerned by the OIG report and the failings 

of the FBI to correct the actions earlier in the investigation. The 

conference agreement includes $10,000,000 as proposed by the Senate to ensure that the Inspector General’s recommendations are implemented by the FBI in an expeditious manner. The conference 

agreement includes bill language transferring $500,000 to the OIG 

from the FBI for continued audits and investigations related to national security letters. 

DRUG ENFORCEMENT ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $12,166,000 for the Drug 

Enforcement Administration (DEA) instead of $8,468,000 as proposed by the House and as requested by the President and 


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$25,100,000 as proposed by the Senate. The funds provided above 

the amount requested by the President are provided to hire additional DEA special agents and support personnel related to the 

Global War on Terror. The conferees concur with language in the 

House report directing the DEA Administrator to submit a report 

on a plan to target and arrest Afghan Drug Kingpins. 

BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES

SALARIES AND EXPENSES

The conference agreement includes $4,000,000 for the Bureau 

of Alcohol, Tobacco, Firearms and Explosives, as proposed by the 

House and the Senate and as requested by the President. 

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

The conference agreement includes $17,000,000 for the Federal 

Prison System, as proposed by the House and the Senate and as 

requested by the President. 

CHAPTER 3 

DEPARTMENT OF DEFENSE—MILITARY 

The conference agreement provides $95,528,670,000 for the Department of Defense, instead of $95,529,712,000, as proposed by 

the House, and $93,532,793,000, as proposed by the Senate. 

The following table provides details of the supplemental appropriations for the Department of Defense—Military. 


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REPORTING REQUIREMENTS

The conferees direct the Secretary of Defense to provide a report to the congressional defense committees within 30 days after 

the date of enactment of this legislation on the allocation of the 

funds within the accounts listed in this chapter. The Secretary 

shall submit updated reports 30 days after the end of each fiscal 

quarter until funds listed in this chapter are no longer available for 

obligation. The conferees direct that these reports shall include: a 

detailed accounting of obligations and expenditures of appropriations provided in this chapter by program and sub activity group 

for the continuation of the war in Iraq and Afghanistan; a listing 

of equipment procured using funds provided in this chapter. The 


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conferees expect that in order to meet unanticipated requirements, 

the Department of Defense may need to transfer funds within 

these appropriations accounts for purposes other than those specified in this report. The conferees direct the Department of Defense 

to follow normal prior approval reprogramming procedures should 

it be necessary to transfer funding between different appropriations 

accounts in this chapter. 

MINE RESISTANT AMBUSH PROTECTED VEHICLES (MRAPS) 

The amended supplemental budget request includes 

$1,832,300,000 for Mine Resistant Ambush Protected (MRAPs) Vehicles. These vehicles provide superior protection to our troops from 

Improvised Explosive Devices (IEDs). Recognizing the survivability 

enhancements brought to our warfighters by MRAPs, Congress previously appropriated $592,000,000 for MRAPs in fiscal year 2007. 

Since IEDs continue to be the biggest threat to our troops in theater, the conferees believe it is imperative that these critical force 

protection items be provided to the warfighter as quickly as possible. Therefore, based on the most current information provided by 

the military services, the conferees provide $1,200,000,000 above 

the request for a total of $3,032,300,000 for MRAPs in the conference agreement. Further, the conferees designate MRAPs as a 

congressional interest item. The table below delineates MRAP 

funding in the conference agreement by appropriations account. 

Given this program’s critical importance, the conferees expect 

funds to be placed on contract expeditiously and direct the military 

services to jointly report to the congressional defense committees 

no later than 30 days after the enactment of this Act on the MRAP 

program’s status, requirements, and the execution of funds provided in the conference agreement. Further, the conferees direct 

the services to provide updates to the congressional defense committees every 30 days thereafter until all funds provided in the 

conference agreement are fully obligated. 

FY 2007 SUPPLEMENTAL MRAP FUNDING 

[In thousands of dollars] 

Supplemental 

Request Conference Conference vs. Request 

Operation and Maintenance, Navy ................................................. 24,000 24,000 ............................

Other Procurement Army, line 129 ................................................. 770,000 1,217,000 +447,000 

Other Procurement, Navy, line 124 ................................................ 122,000 130,040 +8,040 

Procurement, Marine Corps, line 70 ............................................... 678,000 1,263,360 +585,360 

Other Procurement, Air Force, line 8 (Air Force) ............................ 15,200 139,040 +123,840 

Procurement, Defense-wide, line 59 (SOCOM) ............................... 73,100 108,860 +35,760 

Procurement, Defense-wide, line 61 (SOCOM) ............................... 150,000 150,000 ............................

Total, MRAPs .......................................................................... 1,832,300 3,032,300 +1,200,000 

CLASSIFIED PROGRAMS

Recommended adjustments to classified programs are addressed in a classified annex accompanying this conference report. 


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MILITARY PERSONNEL 

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

The conference agreement provides $13,507,993,000 for Military Personnel, instead of $ 13,566,940,000 as proposed by the 

House, and $13,435,445,000 as proposed by the Senate. The conferees provide $1,148,369,000 above the President’s request to fully 

fund all identified shortfalls for Basic Allowance for Housing for 

the remainder of fiscal year 2007. 

The conferees are encouraged by the recent success of the 

Armed Forces to meet or exceed their established recruiting and retention goals and urge the Services to continue pursuing innovative 

and cost-effective programs to attract and retain high-quality personnel. However, recruiting and retaining challenges still exist, 

particularly within highly specialized occupational disciplines. 

For this reason, the conference agreement fully funds the supplemental request for recruiting and retention incentives and provides an additional $10,000,000 to specific reserve components that 

identified recruitment and retention shortfalls. 


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MILITARY PERSONNEL, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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ARMY PHYSICAL DISABILITY SYSTEM

The conferees direct the Secretary of the Army to take the necessary actions to implement the recommendations of the Army Inspector General to improve legal representation for soldiers pursuing claims through the Army Physical Disability Evaluation System. 


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MILITARY PERSONNEL, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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MILITARY PERSONNEL, MARINE CORPS

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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MILITARY PERSONNEL, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESERVE PERSONNEL, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESERVE PERSONNEL, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESERVE PERSONNEL, MARINE CORPS

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

RESERVE PERSONNEL, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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NATIONAL GUARD PERSONNEL, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

NATIONAL GUARD PERSONNEL, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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OPERATION AND MAINTENANCE 

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

The conference agreement provides $50,429,975,000 for Operation and Maintenance, instead of $52,499,979,000 as proposed by 

the House, and $48,784,490,000 as proposed by the Senate. The 

conferees provide a net increase of $171,368,000 above the President’s request. The level of funding agreed to by the conferees fully 

funds critical ground combat operations, flying hours, military intelligence activities, logistical support, fuel purchases, base support, depot maintenance and over-ocean transportation related to 

the wars in Iraq and Afghanistan. 

The conferees believe that military operations in Afghanistan 

are vital to defeating terrorism and therefore provide an additional 

$750,000,000 for Operation Enduring Freedom above the original 

budget request as follows: 

Operation Enduring Freedom 

[In millions of dollars] 

Army ....................................................................................................................... +510

Navy ........................................................................................................................ +100 

Marine Corps .......................................................................................................... +45 

Air Force ................................................................................................................. +80 

Defense-wide .......................................................................................................... +15 

Total OEF ................................................................................................. +750 


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OPERATION AND MAINTENANCE, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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COMMANDERS’ EMERGENCY RESPONSE PROGRAM

Within the funds provided for Operation and Maintenance, 

Army, the conference agreement includes $456,400,000 for the 

Commanders’ Emergency Response Program (CERP). Within this 

amount, $350,400,000 shall be for CERP activities in Iraq and 

$106,000,000 for activities in Afghanistan. 

The following table provides details within Operation and 

Maintenance, Army line items recommended by the conferees: 

Line and Category Conference 

Recommendation 

135 OIF/OEF Operations and Sustainment ................................................................................................. $3,472,494 

135 LOGCAP ................................................................................................................................................ 2,511,402 

135 Subsistence .......................................................................................................................................... 965,300 

135 IBA/RFI/Other Force Protection ............................................................................................................. 1,543,712 

135 Predeployment Training and Support .................................................................................................. 1,484,768 

135 Active Component Overstrength (30K) ................................................................................................ 386,189 

135 Soldier and Family Support ................................................................................................................. 863,365 

135 Contract Linguists/Cultural Advisors ................................................................................................... 884,902 

135 CONUS Base Support/Security ............................................................................................................. 851,903 

135 Recruiting and Retention ..................................................................................................................... 215,869 

135 Reconstruction Support (GRD/PCO) ..................................................................................................... 790,082 

135 BCT Acceleration .................................................................................................................................. 177,245 

135 Theater Plus Up/Surge ......................................................................................................................... 3,029,745 

135 COCOM Regional War on Terror ........................................................................................................... 90,832 

135 Other GWOT .......................................................................................................................................... 218,949 

135 Intelligence Activities ........................................................................................................................... 119,859 

Subtotal Additional Activities ................................................................................................................ 17,606,616 

136 CERP .................................................................................................................................................... 456,400 

411 Security programs ................................................................................................................................ 597,614 

421 Second Destination Transportation ...................................................................................................... 1,712,749 

Grand Total, Operation and Maintenance, Army ......................................................................... $20,373,379 


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OPERATION AND MAINTENANCE, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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UNEXECUTABLE DEPOT MAINTENANCE

In the fiscal year 2007 emergency supplemental request, the 

Navy requested funding for additional depot maintenance associated with the surge of combat forces to Iraq and the CENTCOM 

area of responsibility. Based on more recent analysis of depot maintenance requirements subsequent to the budget submission, the 

conferees reduce the amount of funding identified by the Navy as 

being unexecutable in fiscal year 2007. 


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OPERATION AND MAINTENANCE, MARINE CORPS

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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UNEXECUTABLE FUNDING

Subsequent to the budget submission, the Marine Corps identified $300,000,000 that is unexecutable in fiscal year 2007 based on 

unanticipated lag time associated with current funding execution. 

OPERATION AND MAINTENANCE, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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OPERATION AND MAINTENANCE, DEFENSE-WIDE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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EXPEDITIONARY VIRTUAL NETWORK (EVNO) 

The conference agreement deletes funds requested within the 

Defense Information Systems Agency for the expeditionary virtual 

network. The conferees direct that these activities shall be funded 

within funds made available in this Act for the Iraq Security 

Forces Fund. 


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SOAR VIRTUAL SCHOOL DISTRICT

The conferees direct that the Deputy Undersecretary of Defense for Military Community and Family Policy shall release a request for proposal as soon as practicable for funding provided in 

the fiscal year 2007 Defense Appropriations Act for Student Online 

Achievement Resources (SOAR Virtual School District), an Internet-based initiative designed to assist children from military families reap the greatest benefit from their public education, especially 

as families relocate and students move from school to school. This 

effort shall involve online assessments to identify strengths and 

weaknesses in both literacy and math and will be provided by a 

teacher education program of an institution of higher education 

that has experience working with teachers to provide curricula for 

children of Armed Forces personnel. Further, this project shall link 

schools through a ‘‘virtual school district,’’ providing a vehicle by 

which a student’s individual performance records can transfer to a 

student’s new school. 

FAMILY ADVOCACY PROGRAMS

The conference agreement provides $10,000,000 for Family Advocacy Programs, instead of $17,000,000 as proposed by the House. 

Of the additional amounts provided, $4,000,000 is to fund initiatives to bolster Guard and Reserve family pre-deployment and post 

deployment support programs. These initiatives should utilize Joint 

Reserve & Guard Family Assistance Centers. The conferees also 

provide $6,000,000 to support the child care needs of deployed 

Guard and Reserve members in their local communities, to include 

respite and emergency child care. 

The conferees also are aware of and concerned about the growing need for family members to have access to professional counseling to help alleviate the mental stresses associated with deployments. At select bases around the country, it has been reported 

that children of service members are experiencing higher truancy 

rates and falling grades in school. As such, the conferees urge the 

family advocacy programs to work with the Department’s Health 

Affairs office, specifically the Defense Health Program, to coordinate efforts to ensure that counseling is provided to all family 

members of the active duty and reserve component members on deployment or preparing for deployment overseas. 

GLOBAL TRAIN AND EQUIP

The conference report does not contain an emergency appropriation requested by the Administration for Global Train and 

Equip authorized under section 1206 of the Fiscal Year 2006 National Defense Authorization Act. Based upon discussions with the 

Department of Defense, the conferees understand that the Department, working with other federal agencies, has identified requirements associated with Global Train and Equip activities, and is developing a reprogramming request for consideration by the congressional defense committees. The conferees await such a request and 

anticipate favorable consideration of the reprogramming, provided 

that the sources of funds meet the committees’ approval. 


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HANDGUN REPLACEMENT STUDY

The conferees provide $5,000,000 only for a study that examines joint sidearm requirements (including service-unique requirements, as appropriate), the M9 9mm handgun’s capabilities (including its lethality), and handgun and ammunition alternatives that 

address these requirements. The conferees understand that it will 

be necessary to purchase up to 50 handguns and associated ammunition to conduct this study. In order to inform deliberations on the 

fiscal year 2008 appropriations bill for the Department of Defense, 

the conferees direct that the results of the study be provided in a 

written report to the congressional defense committees by August 

31, 2007. 

OPERATION AND MAINTENANCE, ARMY RESERVE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

OPERATION AND MAINTENANCE, NAVY RESERVE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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OPERATION AND MAINTENANCE, AIR FORCE RESERVE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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130 

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

AFGHANISTAN SECURITY FORCES FUND

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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131 

IRAQ SECURITY FORCES FUND

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

IRAQ SECURITY FORCES FUND

The conference agreement includes $3,842,300,000, the same 

level as proposed by both the House and the Senate for the Iraq 

Security Forces Fund. Within this amount, the conference agreement includes $155,500,000 for assistance to the Government of 

Iraq to disarm, demobilize and reintegrate militias and illegal 

armed groups. The House had proposed to delete these funds. 

The conference agreement modifies a general provision proposed by the House that required certain reports before the obligation of more than 50 percent of the funds made available under 

this heading. 

The conference agreement deletes the withholding of funds 

under this heading until the reports are provided and, in lieu 

thereof, requires the submission of the aforementioned reports to 

the congressional defense committees. The conferees note the pressing need for the data mandated in these reports and fully expect 

the Department of Defense and the Office of Management and 

Budget to submit these reports, and any updates thereto, within 

the timeframes identified in the provision. 


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IRAQ FREEDOM FUND

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

The conference agreement provides $2,432,800,000 for the 

Joint Improvised Explosive Device Defeat Organization (JIEDDO), 

as requested, and proposed by both the House and the Senate. 

Both chambers have expressed concerns with JIEDDO’s management practices, and the conferees concur with the findings made by 

the respective Committees. The conferees direct the Joint Improvised Explosive Device Defeat Organization to adhere to the reporting requirements as set forth in Senate Report 110–37 and the direction and reprogramming requirements as set forth in House Report 110–60. 

The conferees agree to provide substantial resources to the 

JIEDDO in support of the prescribed objective to develop and field 

innovative solutions and countermeasures to mitigate the critical 

threat posed by improvised explosive devices. However, the conferees remain concerned with the organization’s financial management practices, including its continued failure to provide a plan for 

obligation and expenditures for previously appropriated and for 

currently requested funding. The conferees are concerned that the 

organization is not effectively managing its resources to deliver effective counter-IED solutions to theater. Furthermore, the conferees are concerned with the JIEDDO’s inability to provide timely 

and detailed responses to the congressional defense committees’ inquiries for specific information regarding its budget requests. The 

conferees will be hard-pressed to fully fund future budget requests 

unless the JIEDDO improves its financial management practices 

and its responsiveness. 

STRATEGIC RESERVE READINESS FUND

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

STRATEGIC RESERVE READINESS FUND

The conference agreement provides $2,000,000,000 to establish 

the Strategic Reserve Readiness Fund, instead of $2,500,000,000 as 

proposed by the House. From the amount provided, $1,000,000,000 

shall be transferred to the National Guard and Reserve Equipment 

appropriation to support improvements to the readiness of the 

Army National Guard. 


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PROCUREMENT 

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

AIRCRAFT COMBAT LOSSES

The conferees have agreed to fund procurement of aircraft to 

replace combat losses. The conference agreement includes funding 

for three F/A-18E/F aircraft to directly replace F/A–18 aircraft lost 

in combat and to fund a single EA–18G aircraft which is a functional replacement for an EA–6B Prowler combat loss. Additionally, 

funding is provided to bolster the readiness and capabilities of 

aviation assets operating in extremely high rates. As such, the conferees agree to fund six UH–60 helicopters and five C–130 aircraft. 

FUNDING FOR EFFORTS IN BASE BUDGET

The conferees agree to delete funding for procurement items 

that are better suited to receive funding through the normal budget 

process. Replacing obsolete computer equipment and installing nonemergency equipment modifications or upgrades should be funded 

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aged to appropriately identify their needs so that only emergency 

items are requested in the supplementals and routine procurements are funded in the normal budget process. Additionally, the 

Department is reminded that supplemental funding should not be 

requested for items that can not be executed in a timely fashion. 

AIRCRAFT PROCUREMENT, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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MISSILE PROCUREMENT, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, 

ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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PROCUREMENT OF AMMUNITION, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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OTHER PROCUREMENT, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM

(SINCGARS) FAMILY

The conferees are concerned that the Army may not be using 

all the available and qualified industrial capacity to deliver funded 

quantities of SINCGARS radios to units in the field. The conferees 

strongly encourage the Army to pursue aggressively the necessary 


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industrial capacity to produce the needed SINCGARS radios and to 

equip the units of the Army, including the Army Reserve Components, in a timely manner. The conferees recommend $458,709,000 

for SINCGARS radios, a reduction of $75,000,000 from the amended budget request. Additionally, $175,000,000 of the amount provided may not be obligated by the Army until 15 days after the 

Secretary of the Army provides a report to the congressional defense committees that includes an evaluation of SINCGARS capable commercial off-the-shelf tactical radios that can meet operational needs and that explains the Army’s strategy to leverage 

available industrial capacity in order to produce the needed radios 

at a significantly faster rate. 

AIRCRAFT PROCUREMENT, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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WEAPONS PROCUREMENT, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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OTHER PROCUREMENT, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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PROCUREMENT, MARINE CORPS

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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AIRCRAFT PROCUREMENT, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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MISSILE PROCUREMENT, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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PROCUREMENT OF AMMUNITION, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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HANDGUN REPLACEMENT PROGRAM

The supplemental request includes $89,800,000 to replace the 

Air Force M9 9mm handgun and associated ammunition. The conferees understand that the Army, Marine Corps, Navy, and Special 

Operations Command procure the M9 9mm handgun as their 

standard issue sidearm. Therefore, the conferees believe that a replacement or upgrade to the 9mm handgun should address joint requirements. Since this coordination did not occur prior to the supplemental budget submission, the conferees deny the requested 

funding for a single service replacement program. However, recognizing the importance of a reliable and lethal sidearm to the 

warfighter, the conferees provide $5,000,000 only for a study that 

examines joint sidearm requirements (including service-unique requirements, as appropriate), the M9 9mm handgun capabilities (including its lethality), and handgun and ammunition alternatives 

that address these requirements. The conferees understand that it 

will be necessary to purchase up to 50 handguns and associated 

ammunition to conduct this study. In order to inform deliberations 

on the fiscal year 2008 appropriations bill for the Department of 

Defense, the conferees direct that the results of the study be provided in a written report to the congressional defense committees 

by August 31, 2007. 


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OTHER PROCUREMENT, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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GLOBAL BROADCAST SERVICE—RUCKSACK PORTABLE RECEIVE SUITE

The conferees understand that additional research and development would further reduce the weight of the Global Broadcast 

Service—Rucksack Portable Receive Suite (GBS–RPRS). Due to the 

premature request, the conferees deny funding for this item, without prejudice. The conferees encourage the Air Force to proceed 

with the development effort and intend to review the program 

should a request be received for funding in fiscal year 2008. 


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PROCUREMENT, DEFENSE-WIDE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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NATIONAL GUARD AND RESERVE EQUIPMENT

The conference agreement provides funding for National Guard 

and Reserve Equipment for the Army National Guard in the Strategic Reserve Readiness Fund instead of in the National Guard and 

Reserve Equipment account as proposed by the Senate. 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION 

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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REVOLVING AND MANAGEMENT FUNDS 

DEFENSE WORKING CAPITAL FUNDS

The conference agreement provides $1,315,526,000, as proposed by both the House and the Senate. 

NATIONAL DEFENSE SEALIFT FUND

The conference agreement provides $5,000,000 as proposed by 

both the House and the Senate. 

OTHER DEPARTMENT OF DEFENSE PROGRAMS 

DEFENSE HEALTH PROGRAM

The conference agreement on items addressed by either the 

House or the Senate is as follows: 


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The conference agreement provides $3,251,853,000 for the Defense Health Program, instead of $2,789,703,000 as proposed by 

the House and $2,466,847,000 as proposed by the Senate. 

TRAUMATIC BRAIN INJURY (TBI) AND POST TRAUMATIC STRESS

DISORDER (PTSD) TREATMENT AND RESEARCH

The conferees believe that, if a service member is correctly diagnosed with TBI or PTSD, the better chance he or she has of a 

full recovery. It is critical that health care providers are given the 

resources necessary to make accurate, timely referrals for appropriate treatment and that service members have high priority access to such services. Therefore, the conference agreement provides 

$900,000,000 for access, treatment and research for TBI and PTSD. 

Of the amount provided, $600,000,000 is for operation and maintenance and $300,000,000 is for research, development, test and evaluation to conduct peer reviewed research. 

By increasing funding for TBI and PTSD, the conferees believe 

that the Defense Department now will have significant resources to 

dramatically improve screening for risk factors, diagnosis, treatment, counseling, research, facilities and equipment to prevent or 

treat these illnesses. 

If the Secretary of Defense determines that funds made available within the operation and maintenance account for the treatment of TBI and PTSD are excess to the requirements of the Department of Defense, the conference agreement provides the authority to transfer excess amounts to the Department of Veterans 

Affairs to be available only for the same purpose. 

CARE GIVER SUPPORT PROGRAMS

The conference agreement provides $12,000,000 for care giver 

support programs, to be allocated as recommended in House Report 

110–60, in order to assist the military medical facilities’ nurses and 

doctors who are treating the wounded by ensuring they have sufficient stress prevention and management programs. 

AMPUTEE HEALTH CARE

The conference agreement provides a total of $61,950,000 for 

amputee health care. The additional monies, to be allocated consistent with House Report 110–60, will enhance health care services and operations at Walter Reed, Brooke Army Medical Center/ 

Center for the Intrepid, Landstuhl Regional Medical Center and 

National Naval Medical Center—Balboa. 

SUSTAINING THE MILITARY HEALTH CARE BENEFIT

When the fiscal year 2007 budget request was submitted, it assumed savings anticipated from legislation that would have significantly increased fees and premiums paid by military members. The 

legislation was not enacted by Congress. The conference agreement 

provides $660,750,000 to fully fund the Defense Health Program 

for fiscal year 2007. The conferees strongly urge the Department to 

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gress to enact legislation that would increase the out-of-pocket 

costs to the beneficiaries. 

MILITARY HEALTH CARE BUDGET—‘‘EFFICIENCY WEDGE’’

The conference agreement provides $500,000,000 in operation 

and maintenance and procurement funding to reverse ‘‘efficiency 

wedge’’ savings mandated by the Department of Defense. The monies are to be allocated consistent with Senate Report 110–37 and 

will return funding to appropriate levels within the Direct Care 

system and allow the services to address critical needs. 

HEALTH CARE IN SUPPORT OF ARMY MODULAR FORCE CONVERSION

AND GLOBAL POSITIONING

The conferees are concerned that the Army has been directed 

to cover costs associated with health care support of Army modular 

force (AMF) conversion and global positioning. The cost of these 

movements is estimated at $68,000,000 and will enable the Army 

to provide the capacity to meet increases in the demand for health 

care created as the Army repositions forces. This necessary funding 

is required to ensure that soldiers, particularly those returning 

from combat, and their families are able to access military health 

care. 

The conferees direct the Assistant Secretary of Defense for 

Health Affairs and the Surgeon General of the Army to coordinate 

an effort and report back to the congressional defense committees 

by June 29, 2007, on how these anticipated costs will be funded to 

ensure soldiers and their families affected by AMF and global positioning will have access to the health care they deserve. 

TRAUMATIC BRAIN INJURY

The conferees direct the Assistant Secretary of Defense for 

Health Affairs to submit a report to the congressional defense committees regarding the extent of, treatment of, and outreach to patients with traumatic brain injury, through military hospitals and 

outpatient clinics and their families. The report shall be submitted 

within 120 days after enactment of this Act, and it shall describe 

the Department’s diagnosis and screening processes, communication procedures and policies for family members, and provide an accounting of funds budgeted and expended for this type of injury. 


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DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

The conference agreement provides $254,665,000, as proposed 

by the Senate, instead of $259,115,000 as proposed by the House. 

The conference agreement on items addressed by either the 

House or the Senate is as follows: 

RELATED AGENCIES 

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

The conference agreement provides $71,726,000 as proposed by 

the Senate instead of $57,426,000 as proposed by the House. 

GENERAL PROVISIONS—THIS CHAPTER 

The conference agreement retains a provision (Section 1301), 

as proposed by both the House and Senate, which provides for the 

obligation of appropriations made available in this chapter until 

September 30, 2007. 

The conference agreement includes a provision (Section 1302), 

as proposed by the Senate, relating to general transfer authority. 

The conference agreement retains a provision (Section 1303), 

as proposed by both the House and Senate, which provides for the 

obligation and expenditure of funds related to activities pursuant 

to section 504(a)(1) of the National Security Act of 1947. 

The conference agreement retains a provision (Section 1304), 

as proposed by both the House and Senate, which prohibits funds 

provided in this chapter to finance programs or activities denied by 

Congress, or to initiate a new start program without prior notification to the congressional defense committees. 

The conference agreement includes a provision (Section 1305), 

as proposed by the Senate, relating to amounts transferred or credited to the Defense Cooperation Account. 

The conference agreement modifies a provision (Section 1306), 

as proposed by both the House and Senate, which provides funds 


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for support for counter-drug activities of the Governments of Afghanistan and Pakistan. 

The conference agreement includes a provision (Section 1307), 

as proposed by the Senate, relating to the Commanders’ Emergency 

Response Program. 

The conference agreement includes a provision (Section 1308), 

as proposed by the House, relating to submission of the Measuring 

Stability in Iraq report. 

The conference agreement includes a provision (Section 1309), 

as proposed by the Senate, relating to supervision and administrative costs associated with construction contracts in Iraq and Afghanistan. 

The conference agreement retains a provision (Section 1310), 

as proposed by both the House and Senate, relating to U.S. contributions to NATO common-funded budgets. 

The conference agreement retains a provision (Section 1311), 

as proposed by both the House and Senate, relating to permanent 

bases in Iraq. 

The conference agreement includes a provision (Section 1312), 

as proposed by the Senate, which prohibits funds to contravene 

laws or regulations promulgated to implement the United Nations 

Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. 

The conference agreement deletes a provision, as proposed by 

the House (Section 1312), permitting the transfer of up to 

$100,000,000 from Operation and Maintenance, Defense-Wide to 

the Department of State ‘‘Economic Support Fund’’ to support provincial reconstruction teams in Iraq and Afghanistan. The conference agreement includes funds for this activity within the appropriation for the Iraq Freedom Fund. 

The conference agreement modifies a provision (Section 1313), 

as proposed by the House, relating to the withholding of funds appropriated under certain headings until the Department of Defense 

and the Office of Management and Budget submit certain reports 

relating to Iraq and Afghanistan security forces. 

The conference agreement modifies a provision (Section 1314), 

as proposed by the House, relating to contractor award fees. 

The conference agreement modifies a provision (Section 1315), 

as proposed by the House, relating to the cost of Department of Defense contracts and number of contracted personnel in Iraq and Afghanistan by deleting the reduction of $815,000,000, increasing the 

amounts withheld pending a DoD report on contract costs and personnel, and clarifying the reporting requirements. 

The conference agreement includes a provision (Section 1316), 

as proposed by the House, which provides temporary authority to 

allow service members to designate a portion of their death gratuity benefit to someone other than next of kin. 

The conference agreement includes a provision (Section 1317), 

as proposed by the Senate, which provides up to 287 heavy armored vehicles for force protection purposes in Iraq and Afghanistan. 

The conference agreement modifies a provision (Section 1318), 

as proposed by the Senate, which requires the Secretary of Defense 


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to inspect all military medical treatment facilities and military 

quarters housing medical hold and medical holdover personnel. 

The conference agreement does not include a provision, as proposed by the House (Section 1320), relating to the legal representation for soldiers pursuing claims through the Army Physical Disability Evaluation System. The conference agreement addresses 

this matter elsewhere in the joint explanatory statement. 

The conference agreement includes a provision (Section 1319), 

as proposed by the Senate, regarding the disarming of militias. 

The conference agreement modifies a provision (Section 1320), 

as proposed by the Senate, relating to an independent assessment 

of the capabilities of the Iraqi security forces. 

The conference agreement includes a provision (Section 1321) 

which provides a one-time waiver of time limitations for the award 

of the Medal of Honor. 

The conference agreement includes a provision (Section 1322) 

that from funds appropriated in ‘‘Other Procurement, Army’’, in the 

Department of Defense Appropriations Act, 2006, $6,250,000 shall 

be transferred to ‘‘Military Construction, Army’’. 

The conference agreement includes a provision (Section 1323) 

permitting the transfer of up to $110,000,000 from various appropriations to the Department of State ‘‘Economic Support Fund’’ to 

support programs in Pakistan. 

The conference agreement deletes a provision, as proposed by 

the House (Section 1319), which would have amended section 

l403(a) of the Floyd D. Spence National Defense Authorization Act 

for fiscal year 2001 (as amended). 

The conference agreement deletes a provision, as proposed by 

the Senate (Section 1318), relating to the redevelopment of the industrial sector in Iraq. The conference agreement addresses this 

issue within the appropriation for the Iraq Freedom Fund. 

The conference agreement deletes a provision, as proposed by 

the Senate (Section 1319), to provide $1,500,000,000 for Mine Resistant Ambush Protected Vehicles. This matter is addressed within various appropriations in this chapter. 

CHAPTER 4 

DEPARTMENT OF ENERGY 

ATOMIC ENERGY DEFENSE ACTIVITIES 

NATIONAL NUCLEAR SECURITY ADMINISTRATION

DEFENSE NUCLEAR NONPROLIFERATION

The conference agreement provides $150,000,000 for Defense 

Nuclear Nonproliferation activities by the National Nuclear Security Administration, as proposed by the House instead of 

$63,000,000 as proposed by the Senate. Within the amounts provided, $136,000,000 is included for the International Nuclear Materials Protection and Cooperation program, including $25,000,000 

for Rosatom Weapons Complex activities to begin comprehensive 

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work; $87,000,000 for the Megaports initiative to accelerate activities in host countries with seaports that have signed implementation agreements but are currently not funded to complete deployment of radiation detection equipment for scanning cargo containers; and $24,000,000 for additional high priority activities. Further the recommendation includes $14,000,000 for the Global 

Threat Reduction Initiative for Kazakhstan spent fuel security activities. 

Sec. 1401. The conference agreement includes a provision regarding National Nuclear Security Administration transfer authority. 

CHAPTER 5 

DEPARTMENT OF HOMELAND SECURITY 

OFFICE OF THE UNDER SECRETARY FOR MANAGEMENT

The conferees agree with the Senate’s concern that the management and administrative challenges facing the Department will 

increase unless a stronger focus is placed on hiring, training, and 

maintaining career leaders. In particular, the conferees are concerned that the Department and its components will not be able to 

function effectively when the change in administration occurs in 

2009. The conferees direct the Department to provide, by July 20, 

2007, a report on senior staffing, as proposed by the Senate. The 

conferees further direct the Government Accountability Office to 

assess the strengths and weaknesses of the report within 90 days 

after the Department submits the report. In addition, the conferees 

provide $900,000 in title IV of the bill for the Under Secretary for 

Management to award a grant or contract to the National Academy 

of Public Administration (NAPA) to undertake a study to compare 

the Department of Homeland Security’s reported senior career and 

political staffing levels and senior career training programs with 

those of similarly structured cabinet-level agencies. NAPA is an 

independent, non-partisan organization chartered by Congress to 

assist Federal, State, and local governments in improving their effectiveness, efficiency, and accountability. The conferees direct the 

Department to execute such grant or contract no later than the 

July 20, 2007, report submission date, and for NAPA to submit its 

report within six months thereafter. 

OFFICE OF THE CHIEF INFORMATION OFFICER

The Chief Information Officer is directed to submit to the Committees on Appropriations no later than 30 days after the date of 

enactment of this Act a report on the full costs to transition information to the Department of Homeland Security’s primary data 

center. This report is to include, by departmental component: a 

schedule for data transition; costs for each fiscal year required to 

complete the transition; identification of items associated with the 

transition required to be procured and related procurement schedule; and identification of any transition costs provided in fiscal year 

2007 or requested in the fiscal year 2008 President’s budget. A report on the same elements for the data center to be selected in the 

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priations no later than 30 days after a final selection has been 

made. 

ANALYSIS AND OPERATIONS

The conferees provide an additional $15,000,000 in support of 

the State and local fusion center program, instead of $35,000,000 

as proposed by the House. The Senate bill contains no similar provision. These funds, along with amounts made available to date in 

fiscal year 2007, will allow DHS to support 35 fully-operational 

centers by the end of 2008. 

Consistent with the House report, the conferees direct the Department’s Chief Intelligence Officer to provide on-going, quarterly 

updates to the Committees on Appropriations, starting on July 1, 

2007, that detail progress in placing DHS homeland security intelligence professionals in State and local fusion centers. These reports shall include: the qualification criteria used by DHS to decide 

where and how to place DHS intelligence analysts and related 

technology; total expenditures to support each center to date and 

during the most recent quarter of the current fiscal year, in the 

same categorization as materials submitted to the Committees on 

Appropriations on March 23, 2007; the location of each fusion center, including identification of those with DHS personnel, both 

operational and planned; the schedule for operational stand-up of 

planned fusion centers; the number of DHS-funded employees located at each fusion center, including details on whether the employees are contract or government staff; the privacy protection 

policies of each center, including the number of facility personnel 

trained in Federal privacy, civil rights, and civil liberties laws and 

standards; and the number of local law enforcement agents at each 

center approved or pending approval to receive and review classified intelligence information. 

UNITED STATES CUSTOMS AND BORDER PROTECTION

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

The conferees provide an additional $115,000,000 for Salaries and Expenses, instead of $100,000,000 as proposed by the House 

and $140,000,000 as proposed by the Senate. Included in this 

amount are funds to: 

(1) implement Security and Accountability For Every Port Act 

of 2006 (Public Law 109–347) requirements and advance goals of 

the Secure Freight Initiative to improve significantly the ability of 

United States Customs and Border Protection (CBP) to target and 

analyze U.S.-bound cargo containers; expand the screening of such 

cargo overseas and the capacity to physically inspect containers; 

procure and integrate non-intrusive inspection equipment into inspection and radiation detection operations; and improve supply 

chain security, to include enhanced analytic and targeting systems 

using data collected via commercial and government technologies 

and databases; 

(2) support hiring of not less than an additional 600 CBP Officers, and additional intelligence and trade specialist and support 


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positions for targeting and screening on the Northern Border, at 

overseas locations, and at the National Targeting Center, and staffing required for Northern Border Air and Marine Operations; and 

(3) transfer up to $5,000,000 to the Federal Law Enforcement 

Training Center for basic training costs associated with the additional personnel funded in this Act. 

The conferees direct CBP to submit expenditure and staffing 

plans for these additional funds to the Committees on Appropriations no later than 30 days after the date of enactment of this Act 

and prior to the obligation of the funds. 

The conferees direct CBP to sustain the current level of Border 

Patrol staffing on the Northern Border and to inform the Committees on Appropriations immediately if CBP does not expect to 

achieve its plan of having at least 1,179 Border Patrol agents permanently deployed to the Northern Border by the end of fiscal year 

2007. 

ALIEN SMUGGLING TRACKING

The conferees are aware that CBP has established an Office of 

Alien Smuggling Interdiction (ASI), including three field-level Regional Carrier Liaison Groups. According to CBP, ASI facilitates 

the exchange of intelligence and information within CBP and between CBP and external agencies related to alien trafficking and 

smuggling; coordinates such efforts within CBP; and maintains 

close working relationships with other offices, including the Human 

Smuggling and Trafficking Center (HSTC), the Border Patrol, and 

the U.S. Coast Guard. The conferees agree such efforts are consistent with the CBP mission to interdict smuggling, but also coordination requires active CBP participation in the multi-agency 

HSTC. The conferees direct CBP and ICE jointly to brief the Committees on Appropriations no later than 60 days after the date of 

enactment of this Act on the role each agency plays in enforcing 

laws against human smuggling, how those missions are coordinated, and the timeline for placement of CBP detailees at the 

HSTC. 

CONSTRUCTION

The conferees have recently become aware of significant CBP 

construction program management lapses that may adversely impact deployment of new Border Patrol agents and endanger the 

successful implementation of border security initiatives. The conferees direct CBP to review and assess the staffing levels committed to facilities management and oversight and submit the Construction Master Plan required by Public Law 109–295 to the Committees on Appropriations as expeditiously as possible. 

PERMANENT BORDER PATROL CHECKPOINT

The conferees understand that CBP agrees that no permanent 

checkpoint will be planned for Southern Arizona without significant and direct community involvement. Any planned permanent 

checkpoint must: (1) be part of an overall network of border security technology and infrastructure, as well as an increase in personnel; (2) be designed to significantly reduce the number of illegal 


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immigrants and the amount of contraband entering the U.S. 

through Arizona, and increase the security of our nation by employing technology and capabilities to detect individuals or implements 

associated with terrorism; and (3) contain attributes that reduce to 

a minimum the impact on the commerce and quality of life of communities. Prior to the operation of a possible permanent checkpoint 

in Southern Arizona, CBP must ensure that any temporary checkpoint be administered in a manner consistent with current case 

law, and address the checkpoint’s impact on residents, legitimate 

travelers, and public safety. 

AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND

PROCUREMENT

The conferees provide an additional $120,000,000 for Air and 

Marine Interdiction, Operations, Maintenance, and Procurement, 

instead of $150,000,000 as proposed by the House and $75,000,000 

as proposed by the Senate. Included in this amount are funds to 

accelerate planned deployment of Northern Border Air and Marine 

operations. This includes: establishment of the final Northern Border air wing; procurement of assets, such as fixed wing aircraft, 

helicopters, unmanned aerial systems, marine and riverine vessels, 

and other equipment; relocation of aircraft; site acquisition; and the 

design and building of facilities. The conferees direct CBP to submit an expenditure plan for the use of these funds to the Committees on Appropriations no later than 30 days after the date of enactment of this Act and prior to the obligation of the funds. 

UNITED STATES IMMIGRATION AND CUSTOMS ENFORCEMENT

SALARIES AND EXPENSES

The conferees provide an additional $10,000,000 for Salaries and Expenses instead of $20,000,000 as proposed by the Senate. 

The House bill contains no similar provision. Of this amount, 

$5,000,000 is provided to create a security advisory opinion review 

unit within the Visa Security Program consistent with the Senate 

report. The remaining $5,000,000 is provided for the Human Smuggling and Trafficking Center (HSTC). The conferees intend that 

U.S. Immigration and Customs Enforcement (ICE) serve as the Department’s lead at the HSTC, but also direct CBP, given its border 

protection, inspection, and interdiction missions, to fully participate 

in the HSTC. The conferees direct ICE to submit an expenditure 

plan for the use of the HSTC funds to the Committees on Appropriations no later than 30 days after the date of enactment of this 

Act and prior to the obligation of the funds. 

TRANSPORTATION SECURITY ADMINISTRATION

AVIATION SECURITY

The conferees provide an additional $970,000,000 for Aviation 

Security instead of $1,250,000,000 as proposed by the House and 

$660,000,000 as proposed by the Senate. Within this total, 

$815,000,000 is for the procurement and installation of checked 

baggage explosives detection systems; $45,000,000 is for the expansion of checkpoint explosives detection pilot systems; and 


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$110,000,000 is for air cargo security. Funding for the procurement 

and installation of checked baggage explosives detection systems 

and checkpoint explosives detection pilots is available until expended. Funding for air cargo security is available until September 

30, 2009. 

The conferees direct the Transportation Security Administration (TSA) to utilize funding for explosives detection systems at airports that would derive significant security benefits, consistent 

with the optimal screening solutions prioritized in TSA’s strategic 

plan for electronic baggage screening. As directed by the Senate, 

TSA shall submit a revised fiscal year 2007 explosives detection 

system expenditure plan to the Committees on Appropriations no 

later than 90 days after the date of enactment of this Act. The conferees provide $45,000,000 for the deployment and pilot 

testing of advanced checkpoint explosives detection equipment and 

screening technologies to determine preferred operational and 

equipment protocols. The fiscal year 2008 budget request identifies 

a number of emerging technologies that could be expedited so that 

airline passengers and carry-on baggage are screened for explosives, weapons, and other threat objects by the most advanced 

equipment currently under development. TSA has lagged behind in 

this area and should use this funding to accelerate this work. The 

conferees are disappointed that TSA failed to meet a January 23, 

2007, deadline to submit a strategic plan for deployment of checkpoint technologies and direct TSA to expeditiously submit that 

strategic plan, as directed in the joint explanatory statement of 

managers accompanying the fiscal year 2007 conference report (Report 109–699), and include these additional funds as part of this 

effort. 

The conferees provide $110,000,000 for air cargo security. This 

funding sets a path for all cargo carried on passenger aircraft to 

be screened. Within the amount provided, the conferees direct TSA 

to: (1) hire no fewer than 150 additional air cargo inspectors to establish a more robust enforcement and compliance regime; (2) complete air cargo vulnerability assessments, as described in TSA’s recent report on air cargo security for all Category X airports; (3) expand the National Explosives Detection Canine Program by no 

fewer than 170 additional canine teams; and (4) procure and install 

explosives detection systems, explosives trace machines, and other 

technologies to screen air cargo. The conferees permit a portion of 

these funds to be used for proprietary canine teams led by TSA, as 

proposed by the Senate. In addition, the conferees direct TSA to 

pursue canine screening methods utilized internationally, which 

focus on air samples taken from air cargo for explosives detection. 

Within 90 days after the date of enactment of this Act, TSA shall 

provide an expenditure plan detailing how it will utilize the 

$110,000,000 to increase the screening of air cargo carried on passenger aircraft. 

FEDERAL AIR MARSHALS

The conferees provide an additional $8,000,000 for Federal Air 

Marshals instead of $15,000,000 as proposed by the Senate. The 

House bill contains no similar provision. Funding shall be used to 

support higher coverage on critical flights that would otherwise 


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have had insufficient coverage. The conferees direct TSA to report 

back within 30 days from the date of enactment of this Act on how 

these additional funds will be allocated. 

NATIONAL PROTECTION AND PROGRAMS

INFRASTRUCTURE PROTECTION AND INFORMATION SECURITY

The conferees provide an additional $37,000,000 for Infrastructure Protection and Information Security instead of $25,000,000 as 

proposed by the House and $18,000,000 as proposed by the Senate. 

Of this total amount, $25,000,000 shall be to develop State and 

local interoperability plans in support of the state interoperable 

grant program; and $12,000,000 shall be to support implementation of new chemical security regulations. 

As outlined in the House report, the conferees direct the Office 

of Emergency Communications to work in conjunction with the 

Science and Technology Office of Interoperable Communications 

and the Federal Emergency Management Agency to support the efforts of State and local governments as they develop state interoperable communications plans. Within 30 days from the date of 

enactment of this Act, DHS is directed to provide the Committees 

on Appropriations a detailed expenditure plan for execution of a 

nationwide state interoperable communications planning effort, including key milestones for achievement of the decisions necessary 

to support the Public Safety Interoperable Communications Grant 

Program. The conferees encourage the Department to allow States 

that do not use reallocated public safety spectrum to be eligible for 

the Public Safety Interoperable grant funds as long as their systems are compatible with those using reallocated spectrum. 

The conferees provide $12,000,000 to ensure that DHS is able 

to implement chemical facility security regulations efficiently and 

effectively as described in the Senate report. 

The conferees are concerned with the process used by the Office of Cyber Security to acquire access to a facility for a Secret 

Service-led computer forensics training program. While the conferees strongly support the Department’s efforts to fight cybercrime, the Department’s first notification to Congress of this program was via a press release announcing the Secretary’s ribbon 

cutting at the planned center. This approach represents a violation 

of the spirit, if not the letter, of section 503 of the Department of 

Homeland Security Appropriations Act, 2007 (Public Law 109–295). 

Within 30 days from the date of enactment of this Act, the Secretary is directed to submit to the Committees on Appropriations 

a report providing a detailed description of the source and amount 

of funds to be used in support of the new program, the original purpose of each of the funding sources, a legal opinion providing the 

legal basis for the actions taken in establishing this activity, and 

the process that will be used in the future to ensure that Congress 

is informed in advance of any activity that could be construed as 

either creating new programs or making awards that do not involve 

an appropriate competitive solicitation of participants or service 

providers. In addition, the report shall include a justification outlining why this activity is properly undertaken by the Secret ServVerDate Aug 31 2005 12:29 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00188 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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ice and DHS rather than the Federal Bureau of Investigation and 

the Department of Justice. 

OFFICE OF HEALTH AFFAIRS

The conferees provide $15,000,000 for the Office of Health Af- fairs instead of $18,000,000 as proposed by the Senate. The House 

bill contains no similar funding. Of this amount, $4,000,000 is to 

support medical readiness, planning, and other activities tasked to 

this Office. 

The remaining $11,000,000 is for nuclear event public health 

assessment and planning. The Office of Health Affairs, in conjunction with appropriate agencies and national labs, shall: expeditiously develop plans for the response to, and model the effects of, 

a 0.1, 1.0 and 10 kiloton nuclear explosion on each tier one Urban 

Area Security Initiative (UASI) city, where such analysis has not 

already been completed; assess whether current response and recovery plans of all levels of government provide the greatest public 

health benefit; document what modifications and appropriate practices for responding to such an event would improve health outcomes; assess if identified affected distribution systems would be 

sufficient to support the proposed response; and set a strategy, in 

consultation with the Federal Emergency Management Agency and 

other appropriate agencies, to ensure consistent and sufficient delivery of information to the public, medical community, and first responders on appropriate protective actions to prepare for and respond to a nuclear attack. 

The Office of Health Affairs shall provide quarterly briefings to 

the Committees on Appropriations on the status of this assessment 

beginning three months after the date of enactment of this Act. 

In addition, of the amount made available for the assessment, 

up to $2,000,000 is for the National Academy of Sciences (NAS) to 

evaluate the Department’s estimates of the effects of a nuclear attack and the current level of preparation in tier one UASI cities. 

NAS shall report on: available healthcare capacity to treat the affected population; treatments available for pertinent radiation illnesses; efficacy of medical countermeasures; the likely capability of 

the Federal, State, and local authorities to deliver available medical countermeasures in a timely enough way to be effective; and 

the overall expected benefit of available countermeasures and those 

in the development pipeline. NAS shall also assess the availability, 

quality, and benefit of public and medical education on reducing 

the illness and death associated with a nuclear attack. NAS shall 

submit its report to the Committees on Appropriations within 18 

months after the date of enactment of this Act. 

The conferees note the Department has not finalized its Protective Action Guides for Radiological Dispersal Devices and Improvised Nuclear Device Incidents for Federal agencies, State and local 

governments, emergency responders, and the general public. This 

guidance would be critical in planning and responding to radiological incidents. The conferees direct the Department to finalize 

this guidance as quickly as possible. 

The conferees direct the Office of Health Affairs to submit an 

expenditure plan prior to the obligation of any funds provided 

under this heading. Funds are available until September 30, 2008. 


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FEDERAL EMERGENCY MANAGEMENT AGENCY

MANAGEMENT AND ADMINISTRATION

The conferees provide $25,000,000 for Management and Administration instead of $25,000,000 as proposed by the House for 

Salaries and Expenses and $20,000,000 as proposed by the Senate 

for Administrative and Regional Operations. Within the funding 

provided, $10,000,000 is for disaster communications equipment to 

be placed in Federal Emergency Management Agency (FEMA) regions across the country; $2,500,000 is to strengthen interstate mutual aid agreements; $5,000,000 is for regional strike teams; 

$6,000,000 is for improvements for financial and information systems; $500,000 is for the Law Enforcement Liaison Office; $500,000 

is for the Disability Coordinator; and $500,000 is for the National 

Advisory Council. The conferees include bill language prohibiting 

the obligation of this $25,000,000 until the Committees on Appropriations receive and approve an expenditure plan. Such plan 

should be submitted within 45 days after the date of enactment of 

this Act. Funds are available until September 30, 2008. 

The ‘‘Management and Administration’’ account combines the 

former ‘‘Administrative and Regional Operations’’ and ‘‘Readiness, 

Mitigation, Response, and Recovery’’ accounts. A provision is included to transfer all funds in the ‘‘Administrative and Regional 

Operations’’ and ‘‘Readiness, Mitigation, Response, and Recovery’’

accounts into the new ‘‘Management and Administration’’ account. 

NUCLEAR PREPAREDNESS

The conferees are concerned that cities have little guidance 

available to them to better prepare their populations to react in the 

critical moments shortly after a nuclear event. The conferees direct 

FEMA, in conjunction with the Office of Health Affairs, to report 

on the general status and adequacy of public fallout shelters and 

other protective measures, as appropriate, and pre-planned guidance to the public in the tier one UASI cities. Further, FEMA shall 

report on how it is coordinating with State and local governments 

and the Department of Health and Human Services for delivery of 

prepackaged announcements with major radio and television outlets to assure immediate and helpful guidance after a nuclear attack. 

STATE AND LOCAL PROGRAMS

The conferees provide an additional $552,500,000 for State and 

Local Programs instead of $415,000,000 as proposed by the House 

and $850,000,000 proposed by the Senate. Within the funding provided, $190,000,000 is for port security grants pursuant to the Security and Accountability For Every Port Act of 2006 (Public Law 

109–347); $325,000,000 is for intercity rail passenger transportation, freight rail, and transit security grants; $35,000,000 is for 

regional catastrophic event planning grants and regional technical 

assistance; and $2,500,000 is for technical assistance programs. 

The conferees continue to be concerned about the Department’s 

poor track record for awarding security grants on a timely basis. 

The additional funding provided in this Act for port security and 


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rail and mass transit security grants shall be awarded by September 30, 2007. The conferees direct the Department to provide 

potential grant recipients with pending applications an opportunity 

to apply for these additional funds. 

The conferees provide $35,000,000 for all-hazard regional catastrophic event planning grants and regional technical assistance as 

proposed by the Senate. These funds are provided for grants and 

technical assistance to tier one UASI cities and other participating 

governments for the purpose of developing all-hazard regional catastrophic event plans and preparedness. FEMA Regional Offices are 

directed to work with the UASI areas in this effort. Plans and preparedness efforts must address every risk and include logistics, response (including mass evacuation and shelter-in-place), recovery, 

public education, and business outreach. The conferees include bill 

language prohibiting the obligation of funds for regional catastrophic event planning grants and regional technical assistance 

until the Committees on Appropriations receive and approve an expenditure plan. The conferees direct FEMA to provide the expenditure plan by July 1, 2007, so as not to delay this important initiative. The Department shall report to the Committees on Appropriations no later than January 15, 2008, regarding the results of this 

effort. 

The conferees recognize that the majority of grant dollars are 

spent on first responder equipment at the State and local level. To 

be effective, it is imperative that first responders are also trained 

to properly use and maintain the equipment. Therefore, the conferees provide $2,500,000 to the technical assistance program for 

operation and maintenance training on detection and response 

equipment. The program must be competitively awarded. Funds 

are available until September 30, 2007. 

EMERGENCY MANAGEMENT PERFORMANCE GRANTS

The conferees provide an additional $100,000,000 for Emergency Management Performance Grants. The conferees do not include bill language proposed by the Senate to provide funds for expenses related to the Nationwide Plan Review. 

The conferees are concerned by the findings of the Department’s Plan Review, which found that emergency management 

plans across the country are not up-to-date or systematic. State 

and local emergency management agencies use Emergency Management Performance Grants to enhance their emergency management capabilities and to link efforts regionally and nationwide. The 

conferees direct FEMA to provide guidelines encouraging State and 

local governments to address the findings identified in the Nationwide Plan Review. The conferees also direct FEMA to brief the 

Committees on Appropriations regarding the status of successfully 

addressing the Nationwide Plan Review findings no later than 

June 29, 2007. 

UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES

The conferees agree to provide an additional $10,000,000 for 

United States Citizenship and Immigration Services instead of 

$30,000,000 as proposed by the Senate. The House bill contains no 


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similar provision. The conferees understand that there are approximately 170,000 immigration applications and petitions awaiting security checks by the Federal Bureau of Investigation. These funds 

are provided under the terms and conditions listed in the Senate 

report, including a restriction from obligation until the Committees 

on Appropriations receive a specific plan that describes how this security check backlog will be addressed comprehensively. 

SCIENCE AND TECHNOLOGY

RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

The conferees provide an additional $10,000,000 for Research, Development, Acquisition, and Operations instead of $15,000,000 

as proposed by the Senate. The House bill contains no similar provision. The conferees direct that this funding be used for research 

on improved air cargo screening technologies to protect aircraft 

from explosives and other harmful materials, as discussed in the 

Senate report. None of the funds shall be used to continue, beyond 

the current timeframe, ongoing air cargo pilots. The benefits and 

findings from these pilots should be made available to all stakeholders as quickly as possible. 

DOMESTIC NUCLEAR DETECTION OFFICE

RESEARCH, DEVELOPMENT, AND OPERATIONS

The conferees provide an additional $39,000,000 for Research, 

Development and Operations as proposed by the Senate. The 

House bill contains no similar provision. Within the funding provided, $5,000,000 is to enhance detection links between seaports 

and railroads as authorized in Section 121(i) of Security and Accountability For Every Port Act of 2006 (Public Law 109–347); $8,000,000 is to accelerate development and deployment of detection systems at international rail border crossings; and $26,000,000 

is for development and deployment of a variety of screening technologies at aviation facilities as discussed in the Senate report. 

Funding is available until expended. 

SYSTEMS ACQUISITION

The conferees provide an additional $223,500,000 for Systems Acquisition instead of $400,000,000 as proposed by the House. The 

Senate bill contains no similar provision. Funding shall be used to 

acquire and deploy additional radiation portal monitors at all locations DHS determines necessary. No funds shall be used to acquire 

advanced spectroscopic portal monitors until the Secretary of 

Homeland Security certifies that these systems will achieve a significant increase in operational effectiveness. If the Secretary is unable to certify an increase in operational effectiveness, the conferees direct the Domestic Nuclear Detection Office to acquire currently available radiation portal monitors. Funds are available 

until expended. 

GENERAL PROVISIONS

Section 1501.—The conferees modify a provision proposed by 

both the House and Senate that clarifies Federal preemption of 


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State and local chemical site security regulations. The conferees 

also modify a House provision on information security standards 

for chemical facility vulnerability information. 

Sec. 1502.—The conferees include a provision proposed by the 

Senate that precludes the Department from using funds in this Act 

or provided by P.L. 109–295 to carry out reorganization authority. 

The House bill contains no similar provision. 

Sec. 1503.—The conferees include a provision proposed by the 

Senate that mandates that the Department of Homeland Security 

require all contracts that provide award fees to link such fees to 

successful acquisition outcomes. The House bill contains no similar 

provision. 

The conferees do not include a provision proposed by the Senate regarding the Domestic Preparedness Equipment Technical Assistance Program. 

CHAPTER 6 

HOUSE OF REPRESENTATIVES 

SALARIES AND EXPENSES

The conferees agree to provide $6,437,000 for the House of 

Representatives for business continuity and disaster recovery. Inasmuch as this item relates solely to the House, and in accord with 

long practice under which each body determines its own housekeeping requirements and the other concurs without intervention, 

the managers on the part of the Senate, at the request of the managers on the part of the House, have receded to the amendment of 

the House. 

GOVERNMENT ACCOUNTABILITY OFFICE 

SALARIES AND EXPENSES

The conference agreement provides $374,000 to the Government Accountability Office to remain available until September 30, 

2008. This is the same amount as proposed by the Senate. The 

House bill carried no such provision. 

CHAPTER 7 

DEPARTMENT OF DEFENSE 

NATO Security Investment Program (NSIP) reimbursement for 

military construction in Afghanistan.—The conferees understand 

that military construction projects carried out in Afghanistan may 

be eligible for reimbursement under NSIP. The conferees therefore 

direct the Department of Defense to aggressively pursue NSIP 

funding for military construction in Afghanistan and review all future projects for NSIP eligibility. 

MILITARY CONSTRUCTION, ARMY

The conferees agree to provide $1,255,890,000 for Military Construction, Army, instead of $1,329,240,000 as proposed by the 

House and $1,261,390,000 as proposed by the Senate. The funds 

are provided as follows: 


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Location Project description Request Conference 

agreement 

CO Fort Carson ....................................... Unit Operations Facilities ...................... .............................. 18,000,000 

GA: Fort Stewart ..................................... Unit Operations Facilities ...................... .............................. 30,500,000 

KS: Fort Riley .......................................... Site Prep, Accelerated BCT ................... 1,500,000 1,500,000 

KS: Fort Riley .......................................... Unit Operations Facilities ...................... .............................. 24,000,000 

KY: Fort Campbell .................................. Unit Operations Facilities ...................... .............................. 18,000,000 

MD: Fort Meade ...................................... Military Intelligence Admin/Ops Center 42,000,000 42,000,000 

MO: Fort Leonard Wood .......................... Trainee Barracks Complex ..................... .............................. 77,100,000 

NY: Fort Drum ......................................... Unit Operations Facilities ...................... .............................. 14,600,000 

NC: Fort Bragg ....................................... Unit Operations Facilities ...................... .............................. 11,800,000 

TX: Fort Bliss .......................................... Unit Operations Facilities ...................... .............................. 38,000,000 

TX: Fort Hood .......................................... Unit Operations Facilities ...................... .............................. 18,000,000 

WW: Unspecified ..................................... Growing the Force Projects, Various 

Locs.

..............................

Afghanistan: Bagram AB ....................... Bulk Fuel Storage, Phase 1 .................. 9,500,000 9,500,000 

Afghanistan: Bagram AB ....................... Bulk Fuel Storage, Phase 2 .................. 25,000,000 25,000,000 

Afghanistan: Bagram AB ....................... CMU Barracks ........................................ 17,000,000 17,000,000 

Afghanistan: Bagram AB ....................... Communications System Facility .......... 8,200,000 8,200,000 

Afghanistan: Bagram AB ....................... Electrical Distribution/Utility Chase ...... 17,500,000 17,500,000 

Afghanistan: Bagram AB ....................... New Roads ............................................. 26,000,000 ..............................

Afghanistan: Bagram AB ....................... Perimeter Fence and Guard Towers ...... 8,900,000 8,900,000 

Afghanistan: Bagram AB ....................... RSOI Surge Area .................................... 14,000,000 14,000,000 

Afghanistan: Bagram AB ....................... Storm Water Collection .......................... 5,600,000 5,600,000 

Afghanistan: Bagram AB ....................... Water Treatment and Distribution ........ 22,000,000 22,000,000 

Afghanistan: Bagram AB ....................... WWTP and Sewer Collection .................. 16,500,000 16,500,000 

Afghanistan: Various Locations ............. Road—Freedom/Asabalad to Blessing 17,500,000 17,500,000 

Afghanistan: Various Locations ............. Road—Naray to Kamdash .................... 27,000,000 27,000,000 

Afghanistan: Various Locations ............. Road—Asmar to Naray ......................... 9,700,000 9,700,000 

Afghanistan: Various Locations ............. Road—Jalalabad to Shali Kot .............. 15,000,000 15,000,000 

Afghanistan: Various Locations ............. Road—South of Jalalabad .................... 6,800,000 6,800,000 

Afghanistan: Various Locations ............. Road—Through Sharana ...................... 7,300,000 7,300,000 

Afghanistan: Various Locations ............. Road—West of Orgun-E ....................... 7,300,000 7,300,000 

Afghanistan: Various Locations ............. Road—South of Sharana ...................... 33,000,000 33,000,000 

Afghanistan: Various Locations ............. Road—Khowst to BSP9 ........................ 7,900,000 7,900,000 

Afghanistan: Various Locations ............. Road—FB Chamkani to Pakistan Border.13,000,000 13,000,000 

Afghanistan: Various Locations ............. Road—West of Khowst ......................... 9,700,000 9,700,000 

Afghanistan: Various Locations ............. Road—North of Waza Kwah ................. 36,000,000 36,000,000 

Afghanistan: Various Locations ............. Road—Qalat to Mazan ......................... 30,000,000 30,000,000 

Afghanistan: Various Locations ............. Road—Qalat to Shinkay ....................... 57,000,000 57,000,000 

Afghanistan: Various Locations ............. Road—Tarin Kowt to Oshay ................. 34,000,000 34,000,000 

Afghanistan: Various Locations ............. Road—Crossings 1 to 2 (BAF to 

Kabul).

3,550,000 3,550,000 

Afghanistan: Various Locations ............. Road—Crossings 2 to 3 (BAF to 

Kabul).

790,000 790,000 

Afghanistan: Various Locations ............. Road—Crossing 3 to 5KM (BAF to 

Kabul).

3,550,000 3,550,000 

Afghanistan: Various Locations ............. Dry Stream Bed Crossing 1 (BAF to 

Kabul).

8,300,000 8,300,000 

Afghanistan: Various Locations ............. Dry Stream Bed Crossing 2 (BAF to 

Kabul).

8,300,000 8,300,000 

Afghanistan: Various Locations ............. Dry Stream Bed Crossing 3 (BAF to 

Kabul).

34,000,000 34,000,000 

Iraq: AI Asad .......................................... Detainee Interrogation Facility .............. 5,500,000 ..............................

Iraq: AI Asad .......................................... Electrical Infrastructure Upgrades ........ 14,600,000 14,600,000 

Iraq: AI Asad .......................................... Heavy Aircraft Apron ............................. 14,400,000 14,400,000 

Iraq: AI Asad .......................................... Runway With Shelters ........................... 13,600,000 13,600,000 

Iraq: AI Asad .......................................... Transient Aircraft Apron ........................ 4,150,000 4,150,000 

Iraq: AI Asad .......................................... Water Storage Tanks ............................. 14,000,000 14,000,000 

Iraq: Camp Anaconda ............................ CJSOAC Operations Center .................... 3,450,000 3,450,000 

Iraq: Camp Anaconda ............................ North Entry Control Point ...................... 7,400,000 7,400,000 

Iraq: Camp Anaconda ............................ POL Tanks .............................................. 9,900,000 9,900,000 

Iraq: Camp Anaconda ............................ South Entry Control Point ...................... 7,500,000 7,500,000 

Iraq: Camp Anaconda ............................ Truck Lane Access Road ....................... 2,600,000 2,600,000 

Iraq: Camp Anaconda ............................ Water Storage Tanks ............................. 10,000,000 10,000,000 

Iraq: Camp Anaconda ............................ Water Wells ............................................ 2,200,000 2,200,000 


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Location Project description Request Conference 

agreement 

Iraq: Various Locations .......................... Facilities Replacement .......................... 96,000,000 ..............................

Iraq: AI Asad .......................................... Facilities Replacement .......................... .............................. 23,000,000 

Iraq: Camp Adder ................................... Facilities Replacement .......................... .............................. 1,800,000 

Iraq: Camp Anaconda ............................ Facilities Replacement .......................... .............................. 7,000,000 

Iraq: Camp Speicher .............................. Facilities Replacement .......................... .............................. 19,000,000 

Iraq: Oayyarah West ............................... Facilities Replacement .......................... .............................. 1,800,000 

Iraq: Scania ............................................ Facilities Replacement .......................... .............................. 2,400,000 

Iraq: Victory Base ................................... Facilities Replacement .......................... .............................. 33,000,000 

Iraq: Various Locations .......................... Facilities Replacement—AT/FP ............. .............................. 8,000,000 

Iraq: Various Locations .......................... Life Support Areas ................................. 75,000,000 ..............................

Iraq: AI Asad .......................................... Life Support Areas ................................. .............................. 16,500,000 

Iraq: Camp Adder ................................... Life Support Areas ................................. .............................. 8,500,000 

Iraq: Camp Anaconda ............................ Life Support Areas ................................. .............................. 8,500,000 

Iraq: Camp Speicher .............................. Life Support Areas ................................. .............................. 8,500,000 

Iraq: Victory Base ................................... Life Support Areas ................................. .............................. 33,000,000 

Worldwide: Unspecified .......................... Planning and Design (Growing the 

Force).

151,700,000 151,700,000 

Worldwide: Unspecified .......................... Planning and Design (GWOT) ................ 23,900,000 22,000,000 

Total ............................................... ................................................................ 1,289,290,000 1,255,890,000 

Coordination of military road construction in Afghanistan.—

The conferees agree to include a provision, as proposed by the 

House, to prohibit the obligation or expenditure of $369,690,000 in 

funds until the Secretary of Defense submits a detailed report on 

the coordination of military road construction in Afghanistan with 

NATO and coalition nations. The Senate bill contained no similar 

provision. 

Growing the Force, Army.—The conferees agree to provide 

$401,700,000 for construction and planning and design efforts in 

support of the Army’s proposed permanent end-strength increase of 

up to 65,000 soldiers. The conferees are concerned, however, about 

the lack of an overall plan to station and accommodate these increases with the necessary facilities. The conferees therefore agree 

to include language that prohibits the obligation and expenditure 

of these funds until the Secretary of Defense submits a Grow the 

Force Stationing Plan that includes the following for the entire 

65,000–soldier increase: the new units to be created and the number of soldiers in each such unit; the specific increases in the number of soldiers to existing units; the installation where each new 

unit or augmented unit will be located; the estimated dates of initial operational capability and full operational capability of each 

new unit; the types of temporary and permanent facilities required 

(including family housing) and the estimated cost; and any other 

pertinent information. This report also shall provide the same information, where appropriate, for the proposed increase of 8,200 

personnel to the Army National Guard and the proposed increase 

of 1,000 personnel to the Army Reserve. 

Permanent bases in Iraq.—The conferees agree to include a 

provision, as proposed by the Senate, to prohibit the obligation or 

expenditure of $274,800,000 in funds until the Secretary of Defense 

certifies that none of these funds are to be used for the permanent 

basing of U.S. military personnel in Iraq. The House bill contained 

no similar provision. 


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MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

The conferees agree to provide $370,990,000 for Military Construction, Navy and Marine Corps, instead of $389,300,000 as proposed by the House and $347,890,000 as proposed by the Senate. 

The funds are provided as follows: 

Location Project description Request Conference 

agreement 

AZ: MCAS Yuma ..................................... Grow the Force Interim Facilities Site 

Prep.

— 1,200,000 

CA: MCAS Miramar ................................. Grow the Force Interim Facilities Site 

Prep.

— 4,800,000 

CA: Camp Pendleton .............................. Grow the Force Interim Facilities Site 

Prep.

— 39,730,000 

CA: Twentynine Palms ............................ Grow the Force Interim Facilities Site 

Prep.

— 27,340,000 

HI: MCB Hawaii ...................................... Grow the Force Interim Facilities Site 

Prep.

— 2,170,000 

NC: Camp Lejeune .................................. 3/9 Maintenance/Operations Complex .. 41,490,000 41,490,000 

NC: Camp Lejeune .................................. BEQ, Hadnot Point ................................. 40,560,000 40,560,000 

NC: Camp Lejeune .................................. EOD Building FC292 Addition ............... 2,570,000 2,570,000 

NC: Camp Lejeune .................................. Mess Hall ............................................... 16,100,000 16,100,000

NC: Camp Lejeune .................................. MP Company Operations Complex ........ 5,800,000 5,800,000 

NC: Camp Lejeune .................................. Regimental Headquarters Addition ....... 8,600,000 8,600,000 

NC: Camp Lejeune .................................. Truck Company Maintenance/Ops Complex.9,150,000 9,150,000 

NC: Camp Lejeune .................................. Grow the Force Interim Facilities Site 

Prep.

— 50,660,000 

NC: MCAS Cherry Point .......................... Grow the Force Interim Facilities Site 

Prep.

— 27,050,000 

NC: MCAS New River .............................. Grow the Force Interim Facilities Site 

Prep.

— 850,000 

Djibouti: Camp Lemonier ........................ Electrical Power Plant ........................... 17,990,000 17,990,000 

Djibouti: Camp Lemonier ........................ Wastewater Treatment ........................... 19,700,000 19,700,000 

Djibouti: Camp Lemonier ........................ Water Production ................................... 18,310,000 —

Djibouti: Camp Lemonier ........................ Water Storage ........................................ 5,630,000 5,630,000 

Worldwide: Unspecified .......................... Unspecified Construction ...................... 153,800,000 —

Worldwide: Unspecified .......................... Planning and Design (GWOT) ................ 4,600,000 3,400,000 

Worldwide: Unspecified .......................... Planning and Design (Growing the 

Force).

46,200,000 46,200,000 

Total ............................................... ................................................................ 390,500,000 370,990,000 

Growing the Force, Marine Corps.—The conferees agree to provide $324,270,000 for construction and planning and design efforts 

in support of the Marine Corps’ proposed permanent end-strength 

increase of up to 27,000 marines. The conferees are concerned, 

however, about the lack of an overall plan to station and accommodate these increases with the necessary facilities. The conferees 

therefore agree to include language that prohibits the obligation 

and expenditure of these funds until the Secretary of Defense submits a Grow the Force Stationing Plan that includes the following 

for the entire 27,000-marine increase: the new units to be created 

and the number of marines in each such unit; the specific increases 

in the number of marines to existing units; the installations where 

each new unit or augmented unit will be located; the estimated 

dates of initial operational capability and full operational capability 

of each new unit; the types of temporary and permanent facilities 

required (including family housing) and the estimated cost; and 

any other pertinent information. 


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MILITARY CONSTRUCTION, AIR FORCE

The conferees agree to provide $43,300,000 for Military Construction, Air Force, instead of $60,200,000 as proposed by the 

House and $34,700,000 as proposed by the Senate. The funds are 

provided as follows: 

Location Project description Request Conference 

agreement 

Afghanistan: Bagram AB .......................... Hot Cargo Pad and Access Road ........................... 7,300,000 7,300,000 

Afghanistan: Bagram AB .......................... Parallel Taxiway ...................................................... 49,000,000 33,000,000 

Worldwide: Unspecified ............................. Planning and Design .............................................. 3,900,000 3,000,000 

Total .................................................. ................................................................................. 60,200,000 43,300,000 

Parallel Taxiway, Bagram, Afghanistan.—The conferees agree 

to provide $33,000,000 to extend the existing parallel taxiway at 

Bagram, rather than the $49,000,000 requested to build a new 

taxiway. One of the justifications for this project provided by the 

Deparment of Defense is to allow for parking expansion to accommodate wide-body aircraft. The conferees note, however, that the 

Administration’s March 9 revisions deleted the Strategic Aircraft 

Ramp from the original request, indicating that it no longer considers such expansion to be a priority. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005 

The conferees agree to provide $3,136,802,000 for the Base Realignment and Closure Account 2005 as proposed by both the 

House and the Senate. 

GENERAL PROVISIONS—THIS CHAPTER

The conferees agree to include a modified general provision related to the Walter Reed Army Medical Center. 

The conferees agree to include a general provision proposed by 

the Senate related to the Armed Forces Institute of Pathology. The 

House bill contained no similar provision. 

CHAPTER 8 

DEPARTMENT OF STATE AND RELATED AGENCY 

DEPARTMENT OF STATE 

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $870,658,000 for Diplomatic and Comular Programs, instead of $966,954,000 as proposed 

by the House and $815,796,000 as proposed by the Senate. Within 

the total under this heading, $96,500,000 is for World Wide Security Upgrades and is available until expended, instead of 

$102,155,000 as proposed by the House and $70,000,000 as proposed by the Senate. 


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The conference agreement includes the transfer of $258,000 to 

the United States Commission on International Religious Freedom 

from within the funds provided under the heading as proposed by 

the House. The Senate included no similar provision. The conference agreement includes $20,000,000 under this 

heading for public diplomacy programs, as proposed by the Senate. 

The House included the same amount for this purpose, but did not 

include the language in the bill. 

The conferees recognize that public diplomacy activities, when 

effectively implemented, engage and inform foreign audiences, communicate and advocate policies of the United States, and convey 

shared interests and values across the globe. These activities are 

important in building the goodwill and cooperation that is necessary for the United States to achieve our foreign policy and national security goals. The conferees believe that although there has 

been increased attention on public diplomacy efforts since the terrorist attacks of September 11, 2001, a more focused interagency 

effort is necessary. Therefore, the conferees direct that the Secretary of State develop a comprehensive, interagency strategy for 

public diplomacy programming in predominantly Muslim countries, 

as proposed by the Senate, including programming efforts via various media. The conferees expect the plan to include planned expenditures, by category, of funding available in fiscal year 2007 for 

public diplomacy activities, as proposed by the House. The conferees direct the report to be provided to the Committees on Appropriations not later than 45 days after the enactment of this Act. The conference agreement includes $750,000,000 for Diplomatic and Consular Programs relating to Iraq, instead of 

$790,641,000 as proposed by the House and $723,896,000 as proposed by the Senate. The conferees understand that a Memorandum of Agreement between the Departments of State and Defense was finalized on February 27, 2007, specifying operational requirements, authorities, and responsibilities shared between the 

U.S. Mission in Iraq and the Multi-National Forces in Iraq. The 

conferees recognize that the assumptions on which the request was 

based may have changed. Therefore, the conference agreement includes bill language withholding from obligation twenty percent of 

the amount made available under this heading for Iraq operations 

until the Committes on Appropriations receive and approve a detailed expenditure plan of funding for such operations, similar to 

language proposed by the House. The Senate bill included no similar provision. 

The fiscal year 2005 Emergency Supplemental Appropriations 

Act (P.L. 109–13) included $592,000,000 for the construction of a 

new embassy compound in Baghdad, Iraq, based on a number of 

1,157 desks and 619 beds. The conferees are dismayed to learn that 

the Department of State continues to plan for an increase in staffing of thirty percent in desks and an increase of ninety-six percent 

in beds above the amount approved by the Congress. Therefore, the 

conferees direct the Secretary of State, in consultation with the 

U.S. Chief of Mission in Iraq, to undertake a review of the current 

personnel plan for the Mission in Iraq and provide justification for 

the deviation from the 2005-approved plan prior to obligation of 

funding under this heading. The conferees expect a report on the 


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new embassy compound personnel requirements in light of the 

available office space, including a housing plan from the Overseas 

Buildings Operations Bureau, not later than 45 days of enactment 

of this Act. 

The conference agreement does not include language under 

this heading included in the House bill providing up to $50,000,000 

to establish and maintain a civilian reserve corps. Instead, the conference agreement includes a modified general provision similar to 

language in section 1712 of the Senate bill. 

The conference agreement includes a provision directing the 

Office of Management and Budget to apportion $15,000,000 appropriated in the fiscal year 2006 Emergency Supplemental Appropriations Act (P.L. 109–148) for Emergencies in the Diplomatic and 

Consular Service funding, as proposed by the Senate. The House 

included no similar provision. 

The conference agreement includes a provision similar to that 

proposed by the Senate authorizing the transfer of up to 

$20,000,000 from funds made available under this heading to the 

Emergencies in the Diplomatic and Consular Service account only 

for the payment of terrorism rewards. The House bill included no 

similar provision. 

The conferees concur with language included in the House report denying funds requested for salaries and allowances for new 

domestic staff positions and to lease additional space. 

Funds under this heading are provided on an emergency basis. 

The conference agreement allocates funding as follows: 

DIPLOMATIC AND CONSULAR PROGRAMS 

(In thousands) 

Account Request House Senate Conference 

Afghanistan .................................................................................... $47,155 $82,155 $55,000 $79,000 

World Wide Security Upgrades (non-add) ..................................... 47,155 82,155 55,000 79,000 

Iraq ................................................................................................. 823,941 790,641 723,896 750,000 

Sudan ............................................................................................. 21,900 21,900 16,900 19,400 

World Wide Security Upgrades (non-add) ..................................... 20,000 20,000 15,000 17,500 

Public Diplomacy ........................................................................... 20,000 20,000 20,000 20,000 

Bureau of Intelligence and Research ............................................ 0 2,000 0 2,000 

U.S. Commission on International Religious Freedom .................. 0 258 0 258 

Civilian Reserve Corps (up to authority) 1 .................................... 0 50,000 [50,000] [50,000] 

Total—Diplomatic and Consular Programs ......................... 912,996 966,954 815,796 870,658 

1 Note: Numbers in brackets are ‘‘non-adds’’. 

OFFICE OF THE INSPECTOR GENERAL

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $36,500,000 for the Office 

of the Inspector General as proposed by the Senate, instead of 

$46,800,000 as proposed by the House. Within the amount provided 

under this heading, $35,000,000 is for a transfer to the Special Inspector General for Iraq Reconstruction (SIGIR) to conduct oversight work on reconstruction projects in Iraq, $1,300,000 is for the 

Department of State Inspector General’s oversight work related to 

operations in Iraq, and $200,000 is for the Department of State InVerDate Aug 31 2005 13:06 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00199 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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spector General’s oversight work related to operations in Afghanistan. 

The conferees direct the SIGIR to report to the Committees on 

Appropriations not later than 90 days of enactment of this Act on 

the number of personnel, contract services, and budgetary needs of 

SIGIR at the time of the report and the projected operational requirements for the remainder of fiscal year 2007 and fiscal year 

2008. The conferees intend that the report specifically address the 

personnel and resource requirements of section 2 of P.L. 109–440. 

The SIGIR shall inform the Committees on Appropriations regarding the enactment of any legislation subsequent to the submission 

of the report which imposes additional oversight responsibilities on 

SIGIR or which otherwise affects its operational requirements. 

Funds under this heading are provided on an emergency basis. 

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

The conference agreement includes $20,000,000 for Educational and Cultural Exchange Programs as proposed by the 

House, instead of $10,000,000 as proposed by the Senate. 

The conferees concur with language in the Senate report regarding support for a pilot program, which would create a two-way 

exchange component of the Youth Exchange and Study program. 

Funds under this heading are provided on an emergency basis. 

INTERNATIONAL ORGANIZATIONS

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

The conference agreement includes $50,000,000 for Contributions to International Organizations, instead of $59,000,000 as proposed by the Senate. The House bill included no similar provision. 

These funds are intended to pay arrears to organizations that 

are involved in global efforts to combat international terrorism and 

to prevent the spread of avian influenza. 

Funds under this heading are provided on an emergency basis. 

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

The conference agreement provides $288,000,000 for assessed 

costs of U.N. peacekeeping operations as proposed by the House instead of $200,000,000 as proposed by the Senate. Within the total 

provided under this heading, $184,000,000 is for the U.N. Interim 

Force in Lebanon, $16,000,000 is for the U.N. Mission in Timor 

Leste, and $88,000,000 is intended for a potential U.N. mission in 

Chad, as proposed by the House. The Senate bill included funding 

for Chad under the Peacekeeping Operations account. 

The conferees direct that if funds are not obligated for a U.N. 

mission in Chad by August 15, 2007, the Department of State 

should consult with the Committees on Appropriations on the funding needs for other priority missions within the Contributions for 

International Peacekeeping Activities account. 

Funds under this heading are provided on an emergency basis. 


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RELATED AGENCY 

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

The conference agreement includes $10,000,000 for International Broadcasting Operations as proposed by the House and 

the Senate. 

Funds under this heading are provided on an emergency basis. 

BILATERAL ECONOMIC ASSISTANCE 

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

FUNDS APPROPRIATED TO THE PRESIDENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $161,000,000 for the Child 

Survival and Health Programs Fund account, as proposed by the 

House and the Senate. 

The conference agreement includes language, similar to that 

proposed by the Senate, providing authority to the President to use 

funding under the Millennium Challenge Corporation and Global 

HIV/AIDS Initiative accounts to combat an avian influenza pandemic, if he determines that the human-to-human transmission of 

the avian influenza virus is efficient and sustained, and is spreading internationally. The conferees note that this is the highest 

threat level of the World Health Organization’s Global Influenza 

Preparedness Plan. The conferees expect the Office of Management 

and Budget to request reimbursement of any funds used from the 

Millennium Challenge Corporation and Global HIV/AIDS Initiative 

accounts in the event the President exercises this authority. 

The conferees endorse House report language requiring a report on planned expenditures not later than 45 days of enactment 

of this Act. 

Funds under this heading are provided on an emergency basis. 

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

The conference agreement includes $165,000,000 for International Disaster and Famine Assistance, instead of $135,000,000 

as proposed by the House and $187,000,000 as proposed by the 

Senate. 

Within the total provided under this heading, not less than 

$45,000,000 is for Iraq, not less than $44,000,000 is for Sudan, not 

less than $20,000,000 is for Somalia, and not less than $16,000,000 

is for assistance for internally displaced persons in and near Kabul, 

Afghanistan. The remaining $40,000,000 is included for unmet or 

unforeseen humanitarian assistance requirements in countries 

such as the Central African Republic, Chad, the Democratic Republic of the Congo, and Uganda. 

Funds under this heading are provided on an emergency basis. 


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OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

The conference agreement includes $8,700,000 for operating 

expenses of the United States Agency for International Development (USAID), instead of $10,700,000 as proposed by the House 

and $5,700,000 as proposed by the Senate. The conferees provide 

additional funding for security and other operating costs associated 

with USAID personnel in Afghanistan. 

Funds under this heading are provided on an emergency basis. 

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

OFFICE OF INSPECTOR GENERAL

The conference agreement includes $3,500,000 for operating 

expenses of the USAID Office of Inspector General as proposed by 

the House instead of $4,000,000 as proposed by the Senate. The 

conferees intend that the additional funding is for expenses associated with oversight of the expanded programs in Afghanistan and 

Iraq. 

Funds under this heading are provided on an emergency basis. 

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

The conference agreement includes $2,649,300,000 for the Eco- nomic Support Fund, instead of $2,953,000,000 as proposed by the 

House and $2,602,200,000 as proposed by the Senate. The conference agreement includes $1,574,000,000 for Iraq under this heading, instead of $1,887,000,000 as proposed by the 

House and $1,524,000,000 as proposed by the Senate. 

Of the amounts provided for Iraq, the conferees include $57,400,000 for economic and social development programs in areas 

of conflict in Iraq, and intend these funds to be used to counter extremist elements in that country. The conferees provide the U.S. 

Chief of Mission in Iraq with the responsibility for policy decisions 

and justification for the use of these funds. The conferees do not 

support the Department of State proposal to provide assistance directly to Iraqi political parties, as contained in the budget request 

justification materials, and note that these funds are in lieu of 

those requested for the Political Participation Fund and the National Institutions Fund. 

The conference agreement includes not less than $95,000,000 for the Community Action Program, instead of $75,000,000 as proposed by the House and $100,000,000 as proposed by the Senate. 

Of the funds provided for the Community Action Program under 

this heading, the conferees instruct that not less than $5,000,000 

be provided for the Marla Ruzicka Iraqi War Victims Fund as proposed by the Senate. The House did not include a similar provision. 

The conferees concur with language in the House report requiring a report on the ethnic and geographic distribution of U.S. assistance programs in Iraq, specifically to the Nineveh Plain region. The conference agreement includes $737,000,000 for assistance for Afghanistan, instead of $743,000,000 as proposed by the House 


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and $686,000,000 as proposed by the Senate. Of the funds provided 

for Afghanistan, the conference agreement provides $10,000,000 for 

the Afghan Civilian Assistance Program as proposed by the Senate. 

The House included no similar provision. The conference agreement provides $295,000,000 for assistance for Lebanon, instead of $300,000,000 as proposed by the House and 

$265,000,000 as proposed by the Senate. The conferees note that 

language establishing conditions on assistance for Lebanon is included under the general provisions for this chapter. The conference agreement includes $3,000,000 for environmental remediation and health activities in Vietnam, instead of 

$3,200,000 as proposed by the Senate. The House did not include 

a similar provision. The conferees endorse language in the Senate 

report regarding this matter, and stipulate that prior to the obligation of these funds the Committees on Appropriations be consulted 

on the planned use of the funds. The conferees recommend that 

these funds be matched, to the maximum extent possible, with contributions from other public and private sources. The conference agreement includes $2,000,000 for assistance 

for Uganda as proposed by the Senate. The House did not include 

a similar provision. The conferees endorse language in the Senate 

report regarding this matter, and stipulate that prior to the obligation of these funds the Committees on Appropriations be consulted 

on the planned use of the funds. The conference agreement includes $5,000,000 for assistance for Nepal, instead of $6,000,000 as proposed by the Senate. The 

House did not include a similar provision. The conferees intend 

these funds be used to support elections and for demobilization and 

reintegration of former combatants. The conferees endorse language in the Senate report regarding this matter, and stipulate 

that prior to the obligation of these funds the Committees on Appropriations be consulted on the planned use of the funds. The conference agreement includes $5,000,000 for typhoon re- construction assistance for the Philippines, instead of $6,000,000 as 

proposed by the Senate. The House did not include a similar provision. 

The conference agreement includes $10,300,000 for assistance 

for Jordan under this heading. The conferees intend these funds to 

be used to improve basic education, health, water and sanitation 

services in Jordanian communities that have experienced a significant influx of Iraqi refugees. 

The conference agreement does not provide $110,000,000 for 

Pakistan under this heading, as proposed by the Senate. The 

House did not include a similar provision. 

Funds under this heading are provided on an emergency basis. 

The conference agreement allocates funding as follows: 

ECONOMIC SUPPORT FUND 

Account ($ in thousands) Request House Senate Conference 

Iraq: 

Security: 

Provincial Reconstruction Teams (PRTs) .......................................... 720,000 620,000 660,000 620,000 

Community Action Program (CAP) .................................................... 50,000 75,000 100,000 95,000 


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ECONOMIC SUPPORT FUND—Continued 

Account ($ in thousands) Request House Senate Conference 

Marla Ruzicka Iraqi War Victims Fund ........................................ 0 0 5,000 5,000 

Community Stabilization Program (CSP) .......................................... 384,000 354,000 384,000 354,000 

Local Governance Program ................................................................ 100,000 100,000 90,000 90,000 

Subtotal Security ........................................................................... 1,254,000 1,149,000 1,234,000 1,159,000 

Economic: 

Private Sector Agribusiness Development ......................................... 75,000 75,000 70,000 70,000 

Strengthen Financial Markets ........................................................... 12,500 12,500 10,000 10,000 

Financial Market Development .......................................................... 12,500 12,500 10,000 10,000 

Targeted Development Programs ...................................................... — — — 57,400 

Subtotal Economic ........................................................................ 100,000 100,000 90,000 147,400 

Political: 

National Capacity Development ........................................................ 180,000 160,000 140,000 140,000 

Policy, Subsidy, Legal and Regulatory Reform ................................. 110,000 90,000 60,000 60,000 

Democracy .......................................................................................... 428,000 388,000 — —

Civil Society Development ................................................................. — — — 67,600 

Subtotal Political ........................................................................... 718,000 638,000 200,000 267,600 

Provided under Democracy Fund ....................................................... — — [385,000] [250,000] 

Subtotal—Iraq ESF ....................................................................... 2,072,000 1,887,000 1,524,000 1,574,000 

Afghanistan: 

Provincial Reconstruction Teams (PRTs) .......................................... 117,000 217,000 144,000 174,000 

Rural Development ............................................................................ 120,000 160,000 125,000 155,000 

Agriculture ......................................................................................... 13,000 13,000 25,000 19,000

Governance Capacity Building .......................................................... 21,000 21,000 [25,000] 25,000 

New Power Generation Construction ................................................. 40,000 40,000 40,000 40,000 

Rural Road Construction ................................................................... 342,000 292,000 342,000 314,000 

Civilian Assistance Program ............................................................. — — 10,000 10,000 

Subtotal—Afghanistan ESF .......................................................... 653,000 743,000 686,000 737,000 

Lebanon: 

Budget Support.

Project Assistance ............................................................................. 50,000 50,000 15,000 45,000 

Provided under Democracy Fund ....................................................... — — [35,000] [5,000] 

Subtotal—Lebanon ESF ................................................................ 300,000 300,000 265,000 295,000 

Sierra Leone Special Court ................................................................ — 3,000 — 3,000 

Jordan: 

Basic Education and Health Activities ............................................. — — — 10,300 

Permissive Transfer from Iraq PRT Funding (non-add) ................... — — (100,000) —

Subtotal—Jordan ESF ................................................................... — — — 10,300 

Nepal Elections and Peace Process .................................................. — — 6,000 5,000 

Democratic Republic of the Congo Governance and Peace Process — 15,000 — 15,000 

Liberian Presidential Personal Security ............................................ — 5,000 — 1

Uganda Peace Process ...................................................................... — — 2,000 2,000 

Vietnam Environment and Health Programs .................................... — — 3,200 3,000 

Philippines Reconstruction ................................................................ — — 6,000 5,000 

Total—ESF ........................................................................... 3,135,000 2,953,000 2,602,200 2,649,300 

1 Funding for this purpose is included under the Nonproliferation, Anti-Terrorism, Demining and Related Programs account. 

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

The conference agreement includes $229,000,000 for Assistance 

for Eastern Europe and the Baltic States for assistance for Kosovo, 

instead of $239,000,000 as proposed by the House and 

$214,000,000 as proposed by the Senate. The conferees endorse the 

reporting requirement included in the House report regarding the 

proposed pledge of funds. 

Funds under this heading are provided on an emergency basis. 


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DEPARTMENT OF STATE 

DEMOCRACY FUND

The conference agreement provides $260,000,000 for Democracy Fund, instead of $465,000,000 as proposed by the Senate. The 

House provided funding for this purpose under the requested accounts. The conference agreement includes the following amounts 

in the accounts requested: $125,000,000 for assistance for Iraq; 

$25,000,000 for assistance for Afghanistan; $15,000,000 for assistance for Kosovo; and $30,000,000 for assistance for Lebanon. 

The conference agreement provides a total of $250,000,000 for 

democracy, human rights and rule of law programs in Iraq, of 

which $190,000,000 is for the Human Rights and Democracy Fund 

(HRDF) of the Department of State’s Bureau of Democracy, Human 

Rights, and Labor, and $60,000,000 is for USAID. The conferees direct that funds included under this heading for assistance for Lebanon be made available to the HRDF, and that of the funds included for media and democracy programs in Somalia, $3,000,000 

be made available to USAID, and $2,000,000 to the HRDF. 

The conference agreement includes language, similar to that 

proposed by the Senate, requiring the Secretary of State to submit 

a report to the Committees on Appropriations not later than 60 

days after enactment of this Act describing a comprehensive, longterm strategy, with goals and expected results, for strengthening 

and advancing democracy in Iraq. This report should be developed 

in consultation with USAID, and should include the anticipated 

funding required for successful implementation of the strategy in 

subsequent fiscal years. 

The conferees endorse language in the Senate report regarding 

the conduct of appropriate rule of law programs concurrently with 

activities to professionalize the Afghan National Police. 

Funds under this heading are provided on an emergency basis. 

The conference agreement allocates funding as follows: 

DEMOCRACY FUND 

Account 

($ in thousands) Request House Senate Conference 

Afghanistan .................................................................................... [21,000] 1 25,000 2

Iraq: 

Continuation of Democracy Programs ....................................... [181,600] 1 200,000 200,000 

Political Participation Fund ....................................................... [42,800] 1 19,400 2

National Institutions Fund (including Parliament) ................... [76,000] 1 38,000 2

Human Rights ........................................................................... [40,000] 1 40,000 40,000 

Women’s Programs .................................................................... [10,000] 1 10,000 10,000 

Provincial Funds via PRTs ........................................................ [32,000] 1 32,000 2

Security for International Election Monitors ............................. [17,600] 1 17,600 2

International Visitors Program .................................................. [8,000] 1 8,000 2

Support for Media ..................................................................... [20,000] 1 20,000 2

Subtotal—Iraq ...................................................................... [428,000] [388,000] 385,000 500,000 

Kosovo: 

Legislative Reform ..................................................................... [2,000] 1 2,000 2

Conflict Mitigation ..................................................................... [5,000] 1 5,000 2

Institution/Capacity Building .................................................... [8,000] 1 8,000 2

Subtotal—Kosovo ................................................................. [15,000] 1 15,000 2


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DEMOCRACY FUND—Continued 

Account ($ in thousands) Request House Senate Conference 

Lebanon: 

Strength the Rule of Law .......................................................... .................... 1 10,000 2

Municipal Capacity Building ..................................................... .................... 1 20,000 2

Promote Consensus Building .................................................... .................... 1 5,000 ....................

Democracy Programs ................................................................. .................... .................... .................... 5,000 

Subtotal—Lebanon ............................................................... [35,000] 1 35,000 5,000 

Somalia: 

Media and Democracy Programs .............................................. .................... .................... 5,000 5,000 

Subtotal—Somalia ............................................................... .................... .................... 5,000 5,000 

Total—DF ..................................................................... .................... .................... 465,000 260,000 

1 The House included these funds in the accounts requested. 

2 The conference agreement includes these funds in the accounts requested. 

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

(INCLUDING RESCISSION OF FUNDS)

The conference agreement includes $257,000,000 for International Narcotics Control and Law Enforcement, instead of 

$334,500,000 as proposed by the House and $210,000,000 as proposed by the Senate. The conference agreement includes the rescission of $13,000,000 in prior appropriations as proposed by the Senate. House bill did not include a similar provision. 

The conferees endorse language included in the Senate report 

denying funding for construction of corrections facilities. 

Funds under this heading are provided on an emergency basis. 

The conference agreement allocates funding as follows: 

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT 

Account 

($ in thousands) Request House Senate Conference 

Iraq ............................................................................................ 200,000 180,000 150,000 150,000

Afghanistan .................................................................................... .................... 94,500 .................... 47,000 

Lebanon .......................................................................................... 60,000 60,000 60,000 60,000 

Total—INCLE ........................................................................ 260,000 334,500 210,000 257,000 

MIGRATION AND REFUGEE ASSISTANCE

The conference agreement includes $130,500,000 for Migration 

and Refugee Assistance, instead of $111,500,000 as proposed by the 

House and $143,000,000 as proposed by the Senate. 

The conference agreement provides not less than $5,000,000 to 

rescue Iraqi scholars, as proposed by the Senate. The House bill did 

not include a similar provision. The conferees endorse language on 

this matter in the Senate report and urge the Department of State 

to act expeditiously to develop and implement a plan for resettling 

Iraqi scholars. 

Funds under this heading are provided on an emergency basis. 

The conference agreement allocates funding as follows: 

MIGRATION AND REFUGEE ASSISTANCE 

Account ($ in thousands) Request House Senate Conference 

Afghanistan .................................................................................... .................... .................... 18,000 16,000 

Iraq ................................................................................................. 15,000 15,000 65,000 45,000 

Allocated to Other Countries ......................................................... 0 0 60,000 0 


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MIGRATION AND REFUGEE ASSISTANCE—Continued 

Account 

($ in thousands) Request House Senate Conference 

Unallocated for Unforeseen Requirements .................................... 56,500 96,500 .................... 69,500 

Total—MRA ........................................................................... 71,500 111,500 143,000 130,500 

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

The conference agreement includes $55,000,000 for the United 

States Emergency Refugee and Migration Assistance Fund as proposed by the Senate, instead of $35,000,000 as proposed by the 

House. 

Funds under this heading are provided on an emergency basis. 

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

The conference agreement includes $57,500,000 for Nonproliferation, Anti-Terrorism, Demining and Related Programs, instead of $87,500,000 as proposed by the House and $27,500,000 as 

proposed by the Senate. The conferees $25,000,000 for border security programs in Jordan, and include $5,000,000, as proposed in the 

House bill under ‘‘Economic Support Fund’’, for the protection of 

the Liberian President. 

The conferees direct the Secretary of State to submit to the 

Committees on Appropriations not later than 30 days after enactment of this Act a report on strengthening the personal security of 

President of South Sudan. This report shall include a spending 

plan for the use of funds appropriated in fiscal year 2007, including 

from Peacekeeping Operations or Nonproliferation, Anti-Terrorism, 

Demining and Related Programs. 

Funds under this heading are provided on an emergency basis. 

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

The conference agreement includes $2,750,000 for International Affairs Technical Assistance as proposed by both the 

House and the Senate. 

Funds under this heading are provided on an emergency basis. 

MILITARY ASSISTANCE 

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

The conference agreement includes $265,000,000 for the Foreign Military Financing Program, instead of $260,000,000 as proposed by the House and $220,000,000 as proposed by the Senate. 

The conference agreement includes $220,000,000 for assistance for 

Lebanon and $45,000,000 for assistance for Jordan. 

The conferees recognize that Jordan is a key ally of the United 

States in the region and affirm the special transfer authorities of 


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the President under section 614(a) of the Foreign Assistance Act of 

1961 should additional emergency security assistance for Jordan be 

required. 

Funds under this heading are provided on an emergency basis. 

PEACEKEEPING OPERATIONS

The conference agreement includes $230,000,000 for Peacekeeping Operations, instead of $225,000,000 as proposed by the 

House and $323,000,000 as proposed by the Senate. 

The conferees endorse language in the House report directing 

the Department of State to report on the status of implementation 

of the African Union Mission in Sudan (AMIS) mandate and to provide a timetable for a hybrid U.N./AMIS peacekeeping force in 

Darfur. 

The conferees direct the Secretary of State to submit a report 

to the Committees on Appropriations not later than 30 days after 

enactment of this Act, and every 30 days thereafter until September 30, 2008, detailing the obligation and expenditure of funds 

made available under this heading. The conferees request that this 

information be provided on a country-by-country basis, with descriptive information on activities supported. 

Funds under this heading are provided on an emergency basis. 

GENERAL PROVISIONS—THIS CHAPTER 

Section 1801. Authorization of Funds—The conference agreement includes a general provision authorizing the expenditure of 

funds provided by this title, as proposed by the Senate (sec. 1701). 

The House bill did not include a similar provision. 

The conference agreement does not include a general provision 

proposed by the Senate extending the availability of funds (sec. 

1702). 

Sec. 1802. Extension of Oversight Authority—The conference 

agreement includes a general provision extending the authority of 

the Special Inspector General for Iraq Reconstruction through fiscal year 2007, as proposed by the Senate (sec. 1703). The House 

proposed a similar provision (sec. 1801) extending the authority for 

both fiscal years 2007 and 2008. 

Sec. 1803. Lebanon—The conference agreement includes a general provision restricting certain assistance for Lebanon, similar to 

language proposed by the House (sec. 1802) and the Senate (sec. 

1706). 

Sec. 1804. Debt Restructuring—The conference agreement includes a general provision permitting the use of funds made available in fiscal year 2007 for debt restructuring to assist Liberia, as 

proposed by both the House and Senate. 

The conference agreement does not include a general provision 

authorizing the transfer of funds under the Economic Support 

Fund account to other accounts for assistance for Jordan, as proposed by the Senate (sec. 1705). 

Sec. 1805. Government Accountability Office—The conference 

agreement includes a new provision requiring that the Department 

of State support personnel from the Government Accountability Office (GAO) for periods of not less than 45 days to conduct oversight 


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in Iraq. The conferees expect that housing and office space, appropriate for handling classified materials, for three GAO personnel 

would be provided in Baghdad’s International Zone. 

Sec. 1806. Human Rights and Democracy Fund—The conference agreement includes a general provision regarding the management responsibilities of the Assistant Secretary of State for Democracy, Human Rights, and Labor, as proposed by the Senate 

(sec. 1707). The House bill included no similar provision. 

Sec. 1807. Inspector General Oversight of Iraq and Afghanistan—The conference agreement modifies a general provision from 

the Senate bill (sec. 1708) regarding certain authorities of the Department of State’s Inspector General. The House bill included no 

similar provision. 

Sec. 1808. Funding Tables—The conference agreement modifies 

a general provision from the Senate bill (sec. 1709) requiring that 

certain funds provided in this chapter be made available for programs and countries in the amounts contained in the respective tables included in this Statement of Managers, subject to the regular 

notification procedures of the Committees on Appropriations. The 

House bill included no similar provision. 

Sec. 1809. Spending Plan and Notification Procedures—The 

conference agreement modifies a general provision included in the 

Senate bill (sec. 1711) regarding the submission of a report detailing planned expenditures for funds appropriated under the headings in this chapter. The House bill included no similar general 

provision. 

Sec. 1810. Conditions on Assistance for Pakistan—The conference agreement includes a provision requiring the Secretary of 

State to submit an implementation plan to the Committees on Appropriations before any nonproject assistance is made available to 

the Government of Pakistan. This report shall detail the process by 

which the use of these funds will be determined and overseen, as 

well as outline the benchmarks for the use of these funds. The report shall also detail the United States and Pakistani entities responsible for implementation and oversight, and assess their operational capacity. The conferees expect the spending plan to include 

detailed information on assistance by sector and program, project, 

and activity. This report shall also indicate which ‘‘FATA Sustainable Development Plan’’ sub-sector is supported by each program, 

project, or activity. The conferees also direct that $5,000,000 of the 

funds made available for Pakistan under the heading ‘‘Economic 

Support Fund’’ be provided for political party development and 

election observation programs to the Human Rights and Democracy 

Fund. 

Sec. 1811. Civilian Reserve Corps—The conference agreement 

modifies language proposed by the House (under the heading ‘‘Diplomatic and Consular Programs’’) and by the Senate (sec. 1712) authorizing the Secretary of State to make available up to 

$50,000,000 to support and maintain a civilian reserve corps. 

Sec. 1812. Coordinator for Iraq Assistance—The conference 

agreement includes a provision concerning the appointment and 

duties of a new Coordinator for Iraq Assistance, as proposed by the 

House. The Senate bill included no similar provision. The conferees 


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expect the Coordinator to consult on a regular and ongoing basis 

with the U.S. Chief of Mission in Iraq. 

CHAPTER 9 

GENERAL PROVISIONS—THIS TITLE 

The conference agreement includes a provision proposed by the 

House related to the mission capabilities of units deployed to Iraq. 

The conference agreement includes a provision proposed by the 

House related to the deployment of units in Iraq. 

The conference agreement includes a provision proposed by the 

House related to the early redeployment of troops to Iraq. 

The conference agreement includes modified House and Senate 

language establishing benchmarks and timetables for the redeployment of U.S. combat forces from Iraq. 

TITLE II—ADDITIONAL HURRICANE DISASTER RELIEF AND 

RECOVERY 

Funding in this title provides continuing support for hurricane 

disaster relief and recovery. One of the groups that has been most 

adversely affected are the children in the Gulf Coast region. The 

conferees provide additional funding of $4,610,000,000 to the Federal Emergency Management Agency Disaster Relief fund. This 

funding can help continue to address the needs of the estimated 

372,000 students affected by Hurricane Katrina. The Disaster Relief fund includes support for public assistance grants to repair and 

reconstruct school buildings, replace contents in schools including 

books and desks, and provide portable classrooms. A provision included in this legislation mandates that the full cost of the assistance to affected States, applied for prior to enactment of this Act, 

is borne by the federal government. 

The supplemental also provides $30,000,000 in emergency assistance for the public elementary and secondary schools most severely impacted by the 2005 Gulf Coast hurricanes in order to help 

them recruit and retain high quality classroom teachers for the 

children returning to these communities. 

The supplemental also extends the availability of $550,000,000 

in emergency funds provided for the Title XX Social Services Block 

Grant in 2006 that will otherwise expire on September 30, 2007. 

A portion of these funds will be used to provide behavioral health 

services, foster care, protective, and day care services for children. 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE 

GENERAL PROVISION—THIS CHAPTER 

Sec. 2101. The conference agreement includes a general provision that would allow the Secretary of Agriculture to continue to 

enroll eligible participants into the Emergency Forestry Conservation Reserve Program (EFCRP) as proposed by the Senate. The 

EFCRP was created in the aftermath of Hurricane Katrina to asVerDate Aug 31 2005 13:06 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00210 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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sist forest landowners with the restoration of damaged timber 

stands. 

The conference agreement does not include additional hurricane disaster assistance for livestock, irrigated crops, or citrus as 

proposed by the House. Qualifying losses are covered under the Agriculture Assistance title. 

CHAPTER 2 

DEPARTMENT OF JUSTICE 

OFFICE OF JUSTICE PROGRAMS

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

The conference agreement includes $50,000,000 for Edward 

Byrne Discretionary Grants for State and local law enforcement, 

instead of $170,000,000 as proposed by the Senate. The House did 

not include this funding. This funding is provided for local law enforcement initiatives in the Gulf Coast region related to the aftermath of Hurricanes Katrina and Rita. The conferees agree that 

funding shall be distributed to the States in relation to their level 

of violent crime as estimated by the Federal Bureau of Investigation’s Uniform Crime Report for 2005. 

The conference agreement does not include $100,000,000 for 

Edward Byrne Discretionary Grants for State and local law enforcement for security related to the 2008 Presidential Conventions. As proposed by the Senate, the funds would have been distributed equally between the host cities of Denver, Colorado and 

St. Paul, Minnesota. The House proposed no funding. 

DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The conference agreement includes $110,000,000 under this heading, instead of $120,000,000 as proposed by the House and 

$165,900,000 as proposed by the Senate. Within this amount, the 

Senate proposal included $60,400,000 for a salmon fishery disaster 

along the Klamath River. The House provided funding for this purpose in a different title. The conferees agree to provide funding for 

the consequences of this disaster in Title III of this Act. The conferees provide: $24,000,000 for the Office of Coast Survey and the Office of Response and Restoration to conduct scanning 

and mapping as well as to provide debris removal in Louisiana’s 

traditional fishing grounds; $85,000,000 for assistance programs 

authorized under section 115 of the Magnuson-Stevens Fishery 

Conservation and Management Reauthorization Act of 2006, of 

which funding shall be distributed to eligible recipients in States 

most affected by Hurricanes Katrina and Rita; and $1,000,000 for 

real-time observations and forecasts for critical marine navigation 

at the next highest priority seaports along the northern Gulf of 

Mexico, and to continue to repair and replace tide gauge stations 

throughout the entire region which are critical components to 

coastal shipboard navigation and storm surge information. 


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The conferees direct the Department of Commerce to work 

with the States of Louisiana, Mississippi, and Alabama and other 

appropriate entities to distribute assistance funding based on an 

assessment of the needs of the fishing industries in those States. 

The conferees direct the Department of Commerce to notify the 

Committees on Appropriations on the allocation of funds provided 

under this heading for the above activities no later than 15 days 

prior to obligation of such funds. 

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 

EXPLORATION CAPABILITIES

The conference agreement includes $35,000,000 for risk mitigation projects at the National Aeronautics and Space Administration 

(NASA), as proposed by the House. The Senate did not include 

funding under this heading. 

GENERAL PROVISION—THIS CHAPTER 

The conference agreement includes language to allow NASA to 

use previously appropriated emergency funds to cover hurricane response expenses incurred in fiscal year 2005. 

CHAPTER 3 

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

CONSTRUCTION

The conference agreement provides $25,300,000 for ‘‘Construction’’, instead of $37,080,000 as proposed by the House and $150,000,000 as proposed by the Senate. These funds are provided 

for necessary expenses related to the consequences of Hurricane 

Katrina and other hurricanes of the 2005 season, and may be used 

to continue construction of projects related to interior drainage for 

the greater New Orleans metropolitan area. 

FLOOD CONTROL AND COASTAL EMERGENCIES

The conference agreement provides $1,407,700,000 for ‘‘Flood 

Control and Coastal Emergencies’’ as proposed by the Senate instead of $1,300,000,000 as proposed by the House. Additional funding for this account is provided under title III. 

The Conferees include $107,700,000 to construct interim flood 

and storm damage reduction measures recommended in the Chief 

of Engineers report dated December 31, 2006, entitled ‘‘Mississippi 

Coastal Improvements Program, Interim Report’’, at full federal expense. 

Funds provided in Public Law 109–148, the third emergency 

supplemental appropriations act of 2006, were intended to complete 

the West Bank and vicinity and Lake Pontchartrain and vicinity, 

Louisiana, projects. However, the magnitude of the effort required 

to provide the pre-Katrina authorized levels of protection is now 


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recognized to be much greater than originally anticipated. Accordingly, $1,300,000,000 is included to complete the pre-Katrina authorized level of protection for the West Bank and vicinity project 

as well as make progress toward providing authorized protection 

for the remaining portions of the Lake Pontchartrain and vicinity 

project. 

The Conferees are aware that the Corps of Engineers is considering the placement of interim protective structures at the Inner 

Harbor Navigation Canal to provide an enhanced measure of protection against storm surges traveling up the Mississippi River 

Gulf Outlet or the Gulf Intracoastal Waterway until authorized 

permanent protective measures can be designed and built. The 

Conferees support this use of Flood Control and Coastal Emergency 

funds made available under P.L. 109–234. The Corps is reminded 

that a potentially catastrophic emergency situation continues to 

exist at the Inner Harbor and encourages the Corps to employ all 

legitimate emergency means and authorities to ensure that some 

enhanced level of interim protection can be put into place during 

2007, and that permanent protective structures can be completed 

by 2010. 

Additionally, a provision is included to allow the reallocation of 

funds provided in chapter 3 of Public Law 109–234 under the heading ‘‘Flood Control and Coastal Emergencies’’ for projects in the 

greater New Orleans area. The provision requires any reallocation 

of funds be approved by the House and Senate Committees on Appropriations. The Conferees are aware of only one instance where 

the reallocation of funds is advisable, the provision of permanent 

protection at the Inner Harbor Navigation Canal. While the Conferees recognize there may be future circumstances where the use 

of this authority will be desirable, the Corps is instructed to use 

it judiciously. 

GENERAL PROVISIONS—THIS CHAPTER 

Sec. 2301. The conference agreement includes a provision relating to reimbursements to local governments for expenses incurred 

for eligible storm and flood damage reduction activities. 

Sec. 2302. The conference agreement includes a provision related to the utilization of funds provided under Public Law 109–

234. 

Sec. 2303. The conference agreement includes a provision directing the study of the effectiveness of pumping stations and other 

alternatives at specific sites in New Orleans. 

Sec. 2304. The conference agreement includes a provision directing the acceleration of the Mississippi River Gulf Outlet study, 

as practicable. 


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CHAPTER 4 

SMALL BUSINESS ADMINISTRATION 

DISASTER LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

The conference agreement modifies the House and Senate pro- posals and provides for the use of $25,069,000 in unobligated balances of the Disaster Loans Program Account to be used for administrative expenses. The House and Senate recommended 

$25,069,000 as a new appropriation. The conference agreement also provides that $25,000,000 in 

unobligated balances shall be used for the Small Business Administration Disaster Loans Program for Economic Injury Disaster 

Loans. Not more than $8,750,000 may be used for administrative 

expenses. The Senate proposed a direct appropriation as part of 

section 2401. The House did not include similar language. 

GENERAL PROVISIONS—THIS CHAPTER 

The conference agreement does not include language proposed 

as Senate section 2401 regarding Economic Injury Disaster Loans. 

The conference agreement does not include language proposed 

as Senate section 2402 to extend the HUBZone program and to terminate the Small Business Competitive Demonstration Program. 

The conference agreement does not include language proposed 

as Senate section 2403 to modify the Reservist Program. 

CHAPTERS 

DEPARTMENT OF HOMELAND SECURITY 

OFFICE OF THE FEDERAL COORDINATOR FOR GULF COAST

REBUILDING

The conferees understand the Office of the Federal Coordinator 

for Gulf Coast Rebuilding is working on several initiatives, such as 

working with the Federal Emergency Management Agency (FEMA) 

to advance public assistance projects, including those that focus on 

education and criminal justice; working with the Department of 

Housing and Urban Development (HUD) on a public housing plan; 

and developing a plan to transition evacuees into permanent housing. The conferees agree that the housing problem in the Gulf 

Coast is especially daunting and expect the Office of the Federal 

Coordinator for Gulf Coast Rebuilding to take a leadership role in 

order to ensure progress is made. The focus of the Office of the 

Federal Coordinator for Gulf Coast Rebuilding should not only be 

on public housing but also on other HUD programs including Section 202, Section 811, and rental assistance. The conferees expect 

that a near-term goal is to develop housing solutions for all evacuees. The conferees direct the Office of the Federal Coordinator for 

Gulf Coast Rebuilding to provide quarterly progress reports to the 

Committees on Appropriations outlining monthly progress on ongoing initiatives, factors delaying progress, and the goals and expectations against which progress is being measured. 


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FEDERAL EMERGENCY MANAGEMENT AGENCY 

DISASTER RELIEF

(INCLUDING TRANSFER OF FUNDS)

The conferees provide $4,610,000,000 for Disaster Relief instead of $4,310,000,000 as proposed by the House and Senate. The 

conferees agree with the House report requiring the Government 

Accountability Office to review how FEMA develops its estimates 

of the funds needed to respond to any given disaster. 

The conferees provide that $4,000,000 of the amount provided 

be transferred to the Office of Inspector General to increase oversight of Hurricanes Katrina, Rita, and Wilma expenditures and 

eliminate waste, fraud and abuse, as proposed by the House. 

GENERAL PROVISIONS 

Sec. 2501.—The conferees include provisions proposed by the 

House and Senate eliminating the State and local match requirement for certain Federal assistance applied for prior to enactment 

of this Act pursuant to Title IV of the Stafford Act in response to 

Hurricanes Katrina, Rita, Wilma, and Dennis in Louisiana, Mississippi, Texas, Florida, and Alabama. The conferees direct FEMA 

to apply the cost share waiver to all eligible projects for which a 

‘‘request for public assistance form’’ has been submitted and for 

other needs assistance that has been applied for by an individual 

prior to enactment of this Act. 

Sec. 2502.—The conferees include a provision proposed by the 

House and Senate restoring FEMA’s ability to forgive Community 

Disaster Loans that were issued in response to Hurricanes Katrina 

and Rita. This is consistent with previous disasters. This provision 

is retroactive to the date of enactment of P.L. 109–234 and P.L. 

109–88, as proposed by the House. 

Sec. 2503.—The conferees include a provision proposed by the 

House and Senate extending the availability of utilities assistance 

for those leases negotiated by State and local governments and reimbursed by FEMA. This provision is retroactive to the date of enactment of P.L. 109–234, as proposed by the House. 

CHAPTER 6 

DEPARTMENT OF THE INTERIOR 

NATIONAL PARK SERVICE

HISTORIC PRESERVATION FUND

The conference agreement provides $10,000,000 for the historic 

preservation fund instead of $15,000,000 as recommended by the 

Senate and no funding recommended by the House. The agreement 

includes the bill language and instructions recommended by the 

Senate. 


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GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING TRANSFER OF FUNDS)

Sec. 2601. The conference agreement modifies language proposed by the Senate. The conference agreement makes a technical 

correction to P.L. 109–234 permitting $500,000 of emergency Hurricane Katrina disaster funds provided in fiscal year 2006 to be 

transferred from the National Park Service Historic Preservation 

Fund account to the National Recreation and Preservation account. 

These funds will be used for hurricane related reconstruction activities. 

CHAPTER 7 

DEPARTMENT OF EDUCATION 

HIGHER EDUCATION

The conference agreement includes $30,000,000 for grants to 

institutions of higher education impacted by Hurricanes Katrina or 

Rita. The House bill and Senate amendment also proposed 

$30,000,000 for grants to institutions of higher education, but used 

different eligibility criteria to define how the funds should be allocated. The conferees direct the Secretary to allocate funds to interested eligible institutions based on their share of unreimbursed expenses, including tuition and fees revenue lost, expenses incurred 

in remediating the effects of the hurricanes, and estimated construction costs for repairing and replacing campus buildings. These 

data should reflect revenue lost and expenses incurred through the 

current semester of this academic year. 

The conferees direct the Department to disburse these funds 

within 60 days of the date of enactment of this act. The conferees 

also direct the Department to brief the Committees on Appropriations of the House of Representatives and Senate on the proposed 

methodology for allocating these funds prior to any action notifying 

the public of the availability of these funds. 

HURRICANE EDUCATION RECOVERY

The conference agreement provides $30,000,000 for grants to 

hurricane-impacted States and local educational agencies to build 

the capacity of public schools that were forced to suspend operations due to Hurricane Katrina or Hurricane Rita. The House bill 

and Senate amendment also proposed $30,000,000 for this purpose, 

but used different criteria regarding the use and distribution of the 

funds. The conferees request that the Department of Education 

provide quarterly reports to the House Committee on Education 

and Labor; the Senate Committee on Health, Education, Labor, 

and Pensions; and the House and Senate Committees on Appropriations on the use of this emergency assistance, including 

amounts paid for recruitment incentives such as performance pay, 

relocation, and housing. 


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PROGRAMS TO RESTART SCHOOL OPERATIONS

The conference agreement modifies bill language proposed by 

the House and Senate to expand the uses of funds provided for 

emergency aid to restart school operations appropriated in Public 

Law 109–148 to include costs associated with recruitment and retention of educators and other activities to assist in building the capacity of public schools that were forced to suspend operations due 

to Hurricane Katrina or Hurricane Rita. The House bill and Senate 

amendment had similar language. 

GENERAL PROVISIONS—THIS CHAPTER 

Sec. 2701. The conference agreement modifies bill language 

proposed by the House and Senate providing flexibility to eligible 

States and local educational agencies in the use of emergency aid 

to restart school operations appropriated in Public Law 109–148. 

Sec. 2702. The conference agreement includes a provision similar to that proposed by the House and the Senate that extends 

until September 30, 2009, the availability of emergency title XX Social Services Block Grant funds provided to the States affected by 

the 2005 Gulf Coast hurricanes under the Department of Defense, 

Emergency Supplemental Appropriations to Address Hurricanes in 

the Gulf of Mexico, and Pandemic Influenza Act, 2006. 

Sec. 2703. The conference agreement includes language permitting the Secretary of Health and Human Services to grant waivers 

modifying three provisions of the Ryan White State HIV/AIDS 

grants for four States affected by the 2005 Gulf Coast hurricanes. 

The Senate amendment included similar language. The House bill 

did not include a similar provision. 

CHAPTER 8 

DEPARTMENT OF TRANSPORTATION 

FEDERAL HIGHWAY ADMINISTRATION

FEDERAL-AID HIGHWAYS

EMERGENCY RELIEF PROGRAM

(INCLUDING RESCISSION OF FUNDS)

The conference agreement includes $682,942,000 for the Emergency Relief Program, instead of $388,903,000 as proposed by the 

Senate. The House had no similar funding provision. The conference agreement also includes language that waives the per-State 

per-disaster limitation for the 2005–2006 winter storms which severely impacted forty counties in the State of California. In taking 

this action, the conferees make eligible the costs associated with 

this disaster that exceed the statutory limitation but do not 

prioritize them above the costs associated with any other disaster 

eligible for emergency relief assistance. The conference agreement 

eliminates the total current backlog of formal and pending requests 

for emergency relief funding. 

The cost of providing these funds is offset by a rescission of an 

equal amount of the unobligated balances of funds apportioned to 


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the states under chapter 1 of title 23, United States Code, excluding safety programs and funds set aside within the state for population areas. The conferees direct the FHWA to administer the rescission by allowing each state maximum flexibility in making adjustments among the apportioned highway programs. 

FEDERAL TRANSIT ADMINISTRATION

FORMULA GRANTS

The conference agreement includes $35,000,000, instead of 

$75,000,000 as proposed by the Senate, for the Federal Transit Administration’s formula grant program for emergency expenses associated with the continuation of transit services in communities severely impacted by Hurricanes Katrina and Rita. The conferees direct that funding shall be allocated by the Secretary both for operating expenses necessary to keep transit services affordable for 

local residents as well as for capital costs associated with the replacement of rolling stock destroyed by the hurricanes. The conferees direct the Federal Transit Administration to make this assistance available without requirement for local match. The House 

included no similar appropriation. 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF INSPECTOR GENERAL

The conference agreement provides $7,000,000 for the Office of 

the Inspector General instead of $10,240,000 as proposed by the 

House and $5,000,000 as proposed by the Senate. These funds shall 

be used to meet the necessary HUD OIG expenses related to the 

auditing and oversight of HUD funds provided previously to address the consequences of Hurricanes Katrina and Rita. These 

funds shall remain available until expended, as proposed by the 

Senate. The conferees believe that the oversight of emergency 

CDBG funds is an important responsibility for the HUD IG to ensure that disaster funds provided for the Gulf are used efficiently 

and effectively. The conferees expect the OIG to establish benchmarks to identify the effective use of these funds. 

Since this is a substantial increase of funding for the OIG, the 

conferees direct that these supplemental funds not be used solely 

to increase the number of OIG staff. The conferees cannot be certain that resources will be available to annualize the costs of such 

a substantial staffing boost. Rather, the conferees expect the OIG 

to view these supplemental resources as non-recurring and focus 

these resources on a multi-year effort targeted solely on HUD-related investigations and audits related to the emergency CDBG 

and other HUD funds provided to rebuild the Gulf region and 

house low-income tenants. 

GENERAL PROVISIONS—THIS CHAPTER 

The conference agreement includes a general provision as proposed by the House to extend until December 31, 2007 the existing 

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tion requirements for the Disaster Voucher Program. The Senate 

did not include a similar provision. 

The conference agreement modifies a general provision proposed by both the House and Senate that temporarily exempts specific categories of public housing authorities from the new 12–

month formula for the Tenant-Based Rental Assistance program. 

To the extent a demonstration of need is made, the specific categories are as follows: 1) public housing agencies impacted by Hurricanes Katrina and Rita; and 2) public housing agencies that are 

under receivership or declared to be in breach of their Annual Contributions Contract. Public housing agencies that spent more than 

the total of their allocated funds for 2005 and 2006 may not receive 

a higher allocation. The conference agreement does not include an 

exemption for public housing authorities operating under the Moving to Work program as proposed by the House. 

The conference agreement includes a new general provision 

that extends until December 31, 2007, the provision of Sec. 901 of 

Public Law 109–148. This provision will continue to allow public 

housing authorities in the most heavily impacted areas in Mississippi and Louisiana the flexibility to combine separate funding 

streams to assist tenants and reconstruct and rehabilitate low-income rental housing. 

The conference agreement does not include language proposed 

by the House to extend the funds associated with the Disaster 

Voucher Program because Congress has been assured by senior 

level officials from the Department of Housing and Urban Development (HUD) that HUD will obligate all remaining funds prior to 

September 30, 2007. 

TITLE III—OTHER EMERGENCY APPROPRIATIONS 

CHAPTER 1 

DEPARTMENT OF COMMERCE 

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The conferees provide $60,400,000, as proposed by the House 

and the Senate, for disaster relief for commercial salmon fishermen 

and other eligible entities along the coasts of California and Oregon 

due to the 2006 salmon fishery failure in the Klamath River as designated under section 312(a) of the Magnuson-Stevens Fishery 

Conservation and Management Act (16 U.S.C. 1861a(a)) and declared by the Secretary of Commerce on August 10, 2006. 


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CHAPTER 2 

DEPARTMENT OF DEFENSE—CIVIL 

DEPARTMENT OF THE ARMY 

CORPS OF ENGINEERS—CIVIL

OPERATION AND MAINTENANCE

The conference agreement provides $3,000,000 for ‘‘Operation 

and Maintenance’’ as proposed by the Senate. Funds are provided 

for emergency dredging needs due to the effects of hurricanes of 

the 2005 season. 

FLOOD CONTROL AND COASTAL EMERGENCIES

The conference agreement provides $150,000,000 for ‘‘Flood 

Control and Coastal Emergencies’’ as proposed by the Senate in 

title II. Funds are provided for repairs to eligible Federal facilities 

damaged by natural disasters and emergency drought assistance. 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

WATER AND RELATED RESOURCES

The conference agreement provides $18,000,000 for ‘‘Water and 

Related Resources’’ as proposed by the Senate. 

CHAPTER 3 

DEPARTMENT OF THE INTERIOR 

BUREAU OF LAND MANAGEMENT

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

The conference agreement provides $100,000,000 of emergency 

funding for wildland fire management activities of the Department 

of the Interior as proposed by both the House and the Senate. 

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

The conference agreement provides $7,398,000 of emergency 

funding for activities related to avian flu within the resource management account as recommended by both the House and the Senate. 

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

The conference agreement provides $525,000 of emergency 

funding for activities related to avian flu within the Operation of 


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the National Park System account as recommended by both the 

House and the Senate. 

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

The conference agreement provides $5,270,000 of emergency 

funding for activities related to avian flu within the Surveys, Investigations, and Research account as recommended by both the 

House and the Senate. 

DEPARTMENT OF AGRICULTURE 

FOREST SERVICE

NATIONAL FOREST SYSTEM

The conference agreement includes $12,000,000 of emergency 

funding for the national forest system as recommended by the Senate instead of no funding as recommended by the House. The conference agreement is consistent with the Senate proposal to increase drug eradication on national forest system lands and clarifies that these funds should be used for law enforcement against 

all types of drug traffickers. The managers agree that funding 

should be directed for increased staffing, equipment, training and 

cooperative agreements to increase protection of national forest 

lands in areas that face the highest concentration of drug-trafficking activity. 

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFER OF FUNDS)

The conference agreement provides $400,000,000 of emergency 

funding for wildland fire management activities of the Forest Service as proposed by both the House and the Senate. 

GENERAL PROVISIONS—THIS CHAPTER 

Section 3301. The conference agreement replaces language recommended by the House in section 4501 and language recommended by the Senate in Title II, section 2601, dealing with 

payments for county schools and other purposes. The agreement 

makes one-time payments to States in the same amounts and in 

the same manner, to the maximum extent practicable, as were 

done in 2006 under the Secure Rural Schools and Community SelfDetermination Act of 2000. The agreement allows certain revenues, 

fees, penalties or miscellaneous receipts for both the Forest Service 

and the Bureau of Land Management, not to exceed $100,000,000, 

to be distributed, to the maximum extent practicable, in the same 

amounts, for the same purposes, and in the same manner as were 

made to States and counties in 2006 under that Act. The agreement also appropriates $425,000,000 of emergency funding to cover 

any shortfall for payments made under this section from funds not 

otherwise appropriated. Lastly, the agreement amends this Act to 

allow the resource advisory committees to function for another full 

year. 


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CHAPTER 4 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH AND TRAINING

The conference agreement provides $13,000,000, to remain 

available until September 30, 2008, for research to develop mine 

safety technology, including necessary repairs and improvements to 

leased laboratories as proposed by the Senate. The House bill did 

not include a similar provision. 

The conference agreement includes a bill language provision, 

as proposed by the Senate, that quarterly progress reports on technology development shall be submitted to the House and Senate 

Committees on Appropriations, the House Committee on Education 

and Labor, and the Senate Committee on Health, Education, Labor 

and Pensions. The House bill did not include a similar provision. 

The conference agreement also includes $50,000,000 to remain 

available until expended for health monitoring and treatment of 

rescue and recovery workers who responded to the attacks of September 11, 2001 as specified under section 5011 (b) of the Department of Defense, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza 

Act, 2006. These funds will continue baseline and follow-up screening, clinical examinations, long-term medical health monitoring, 

and analysis for rescue and recovery personnel who were exposed 

to toxins during their service in response to the attacks, and support treatment services for those rescue and recovery personnel 

suffering illness or injuries related to their exposure. The Senate 

amendment proposed $3,589,000 for this purpose. The House bill 

had no similar provision. 

ADMINISTRATION FOR CHILDREN AND FAMILIES

LOW-INCOME HOME ENERGY ASSISTANCE

The conference agreement provides $400,000,000 for the LowIncome Home Energy Assistance Program, including $200,000,000 

for State block grants and $200,000,000 for the contingent emergency reserve. The Senate amendment included $640,000,000 

(equally divided between the State block grants and the emergency 

reserve) and the House bill included $400,000,000 (also equally divided). 

The conference agreement does not include bill language proposed by the House permitting a State, or other grantee, to obligate 

the block grant through September 30, 2008, to address home energy needs in the event of an emergency or for crisis intervention. 

The Senate amendment did not contain similar language. 


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OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

(INCLUDING TRANSFER OF FUNDS)

The conference agreement provides $625,000,000, to remain 

available until expended, for the Department of Health and Human 

Services to prepare for and respond to an influenza pandemic. The 

House bill included $969,650,000 and the Senate amendment included $820,000,000 for this purpose. These funds are intended to 

be used to purchase antivirals, establish high-volume domestic 

surge capacity through vaccine purchases and retrofitting of production facilities, and accelerate development of cell-based vaccine 

capabilities as proposed by the Administration. 

The conference agreement includes bill language provisions 

proposed by both the House and Senate giving the Secretary various authorities to purchase goods for the stockpile, enter into contracts for the construction or renovation of privately owned facilities for the production of pandemic vaccine or other biologicals, and 

to transfer funds to other HHS accounts. 

The conferees direct the Secretary to provide on a monthly 

basis to the Committees on Appropriations of the House of Representatives and the Senate a table identifying the obligation, as 

well as any unobligated balances, of funds received for pandemic 

influenza preparedness. The level of detail provided in the report 

should be at the program level identified in the table on the second 

page of the December 29, 2006, report to Congress on pandemic influenza preparedness spending. This table should be in addition to 

the semi-annual report to the House and Senate Committees on 

Appropriations that identifies the disbursement of pandemic influenza preparedness funds at the level of detail specified in the statement of managers accompanying the conference report for the Department of Defense, Emergency Supplemental Appropriations to 

Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza 

Act, 2006. 

COVERED COUNTERMEASURE PROCESS FUND

The conference agreement includes $25,000,000, to remain 

available until expended, for the compensation fund established by 

the Public Readiness and Emergency Preparedness (PREP) Act. 

The House bill and the Senate amendment had proposed 

$50,000,000 for this purpose. 

GENERAL PROVISIONS—THIS CHAPTER 

(INCLUDING RESCISSIONS)

Sec. 3401. (a) The conference agreement includes three provisions rescinding unobligated balances from the Training and Employment Services account under the Department of Labor: 

$3,589,000 from the 2001 Emergency Supplemental Appropriations 

Act for Recovery from and Response to Terrorist Attacks on the 

United States (Public Law 107–38); $834,000 from the Emergency 

Supplemental Appropriations Act of 1994 (Public Law 103–211); 

and $71,000 from the Emergency Supplemental Act, 2002 (Public 


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Law 107–117). The Department of Labor has indicated that these 

balances are no longer needed for their original purposes. The Senate amendment included only the rescission of $3,589,000 from 

Public Law 107–38. The House bill did not contain any rescissions 

of Training and Employment Services funds. 

(b) The conference agreement rescinds $4,100,000 from unobligated balances available from the State Unemployment Insurance 

and Employment Service Operations account under the Department of Labor pursuant to Emergency Supplemental Act, 2002 

(Public Law 107–117). Neither the House bill nor the Senate 

amendment included this rescission. 

Sec. 3402. The conference agreement includes a provision similar to one proposed by the Senate providing $8,594,000 for Safe and 

Drug-Free Schools to address youth violence and related issues in 

schools that are identified as persistently dangerous under section 

9532 of the Elementary and Secondary Education Act of 1965. The 

House bill did not contain a similar provision. 

CHAPTER 5 

LEGISLATIVE BRANCH 

ARCHITECT OF THE CAPITOL

CAPITOL POWER PLANT

The conference agreement includes $50,000,000 to the Architect of the Capitol for utility tunnel repairs and asbestos abatement. The conferees agree to language that the Architect of the 

Capitol may not obligate any of the funds appropriated under this 

heading without approval of an obligation plan by the Committees 

on Appropriations of the Senate and House of Representatives, as 

proposed by the Senate. This is the same amount as proposed by 

the House for asbestos abatement and other improvements, instead 

of $25,000,000 as proposed by the Senate for emergency utility tunnel repairs and asbestos abatement. The conferees direct the Government Accountability Office to assist the Committees on Appropriations in their oversight of the project through monitoring the 

Architect of the Capitol’s strategic planning and use of resources 

related to this project. 

CHAPTER 6 

DEPARTMENT OF VETERANS AFFAIRS 

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

The conferees have not included funding in this account for a 

pilot program of benefits medical examinations as proposed by the 

House. The Senate bill contained no similar provision. Instead, the 

conferees have included funding under General Operating Expenses for authorized examinations to assist in claims processing. 


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VETERANS HEALTH ADMINISTRATION

MEDICAL SERVICES

The conferees have agreed to provide $466,778,000 for Medical 

Services, instead of $414,982,000 as proposed by the House and 

$454,131,000 as proposed by the Senate. The conference agreement 

includes $228,982,000 for treatment of OIF/OEF veterans; 

$30,000,000 for at least one new Level I polytrauma care center; 

$25,000,000 for prosthetics; $100,000,000 for enhancement to mental health services; $9,440,000 for the establishment of residential 

transitional rehabilitation programs; $10,000,000 for additional 

caseworkers to facilitate seamless transition; $20,000,000 for substance abuse treatment programs; $20,000,000 for readjustment 

counseling efforts; $10,000,000 for blind rehabilitation services; 

$8,000,000 for polytrauma support clinic teams; and $5,356,000 for 

additional polytrauma points of contact. 

The conferees direct the Secretary to provide a report to the 

Committees on Appropriations of the House of Representatives and 

the Senate within 60 days of enactment of this Act detailing the 

number of Level I polytrauma centers to be opened and sites selected. The report should include an analysis of projected demand 

in areas of the country where Level I polytrauma centers are not 

readily accessible. 

MEDICAL ADMINISTRATION

The conferees have agreed to provide $250,000,000 for Medical 

Administration as proposed by the Senate instead of $256,300,000 

as proposed by the House. 

MEDICAL FACILITIES

The conferees have agreed to provide $595,000,000 for Medical 

Facilities as proposed by both the House and the Senate. The 

amount provided includes $45,000,000 for facility and equipment 

upgrades at existing polytrauma care centers. In addition, 

$550,000,000 is provided for non-recurring maintenance and is to 

be allocated in a manner not subject to the Veterans Equitable Resource Allocation model. 

The conferees have included language in the bill which requires the Department to submit an expenditure plan within 30 

days for the use of the non-recurring maintenance funding appropriated. In addition, the Department is to provide semi-annual updates on the expenditure of these funds. 

MEDICAL AND PROSTHETIC RESEARCH

The conferees have agreed to provide $32,500,000 for Medical 

and Prosthetic Research, instead of $35,000,000 as proposed by the 

House and $30,000,000 as proposed by the Senate. 


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DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

The conferees have agreed to provide $83,200,000 for General Operating Expenses, instead of $62,000,000 as proposed by the 

House and $46,000,000 as proposed by the Senate. The amount 

provided includes $20,000,000 for disability medical examinations. 

Additionally, $60,750,000 is to be used for the expenses related to 

hiring and training additional disability claims processors and 

$1,250,000 is to be for digitization of military service records. 

The conferees are concerned that effective management structures and inter-agency coordination processes must be in place to 

ensure that services of the Department of Veterans Affairs are provided in a timely and efficient manner, especially to returning 

OEF/OIF veterans. In particular, the conferees are concerned about 

the bureaucratic process many OEF/OIF veterans are encountering 

in transition from active duty to veteran status. Therefore, the conferees have included funding for the Secretary of Veterans Affairs 

to award a grant or contract to the National Academy of Public Administration, an independent, non-partisan organization, which 

was chartered by Congress to assist Federal, State, and local governments in improving their effectiveness, efficiency, and accountability. Such grant or contract shall be to conduct a study of Department management structures in place to provide health care to 

veterans and active duty personnel of OEF/OIF, and benefits to 

veterans of OEF/OIF. The study also should look at the organization and management structure of the Department as it relates to 

providing health care and benefits to the approximately 7.9 million 

veterans currently enrolled in the system. The conferees direct the 

Department to execute such grant or contract no later than 30 days 

after enactment of this Act. 

INFORMATION TECHNOLOGY SYSTEMS

The conferees have agreed to provide $35,100,000 for Informa- tion Technology Systems, instead of $35,000,000 as proposed by the 

House and $36,100,000 as proposed by the Senate. The amount 

provided includes $15,100,000 for electronic data breach remediation and prevention as proposed by the Senate. Also included in 

the bill is $20,000,000 for system improvements for processing OIF/ 

OEF veterans. 

CONSTRUCTION, MAJOR PROJECTS

The conferees have included no funding for Construction, Major Projects, as proposed by the Senate instead of $23,800,000 

as proposed by the House. 

CONSTRUCTION, MINOR PROJECTS

The conferees have agreed to provide $326,000,000 for Construction, Minor Projects, instead of $260,000,000 as proposed by 

the House and $355,907,000 as proposed by the Senate. Of the 

amount provided, up to $36,000,000 may be used for construction 

of polytrauma residential transitional rehabilitation facilities. 


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GENERAL PROVISIONS—THIS CHAPTER

The conferees have agreed to include a general provision which 

directs the Congressional Budget Office to report on the future 

funding projections for costs associated with providing necessary 

health care to OIF/OEF veterans, as proposed by the Senate. 

The conferees have not included a general provision, proposed 

by the Senate, which would direct the Department of Veterans Affairs to contract with the National Academy of Public Administration for a study of management practices. The conferees have included similar language in the General Operating Expenses paragraph of the bill. 

The conferees have included a general provision which permits 

the Secretary of Veterans Affairs to transfer facilities to the State 

of Texas, as proposed by the Senate. 

The conferees have included a modified general provision, proposed by the Senate, which provides for contributions to the Department of Defense/Department of Veterans Affairs Health Care 

Sharing Incentive Fund to remain available until expended. 

TITLE IV—OTHER MATTERS 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

SALARIES AND EXPENSES

The conference agreement provides $37,500,000 for ‘Salaries 

and Expenses’ of the Farm Service Agency instead of $48,000,000 

as proposed by the House and $75,000,000 as proposed by the Senate. 

The conference agreement includes language that these funds 

shall only be used for network and database/application stabilization to address immediate needs identified by the Department. The 

conferees direct the Secretary to provide a monthly update to the 

Committees on Appropriations of the House of Representatives and 

the Senate on the progress of this project, including usage of funds 

as proposed by the Senate. 

The conferees note that the Farm Service Agency computer 

system that is responsible for processing payments for all Farm 

Bill programs administered by the Farm Service Agency has been 

experiencing periodic shutdowns due to capacity overloads, causing 

the efficiency of thousands of Farm Service Agency county office 

employees to decrease dramatically. The conferees are aware that 

a plan to upgrade this system is being developed by USDA. The 

conferees direct the Secretary to submit to the Committees on Appropriations of the House of Representatives and the Senate, and 

the agriculture authorizing committees of the House of Representatives and the Senate a report that has been approved by the Office 

of Management and Budget and reviewed by the Government Accountability Office. The report shall include: (1) An enterprise architecture; (2) an Information Technology Human Capital Plan; (3) 

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ture; (4) a description of the information technology capital planning and investment control process; and (5) a spending plan. The 

spending plan shall include each specific project funded, key milestones, all funding sources for each project, details of annual and 

lifecycle costs, and projected savings or cost avoidance to be 

achieved by the project. 

GENERAL PROVISIONS—THIS CHAPTER

Section 4101. The conference agreement includes language regarding the Food and Drug Administration as proposed by the 

House. 

Sec. 4102. The conference agreement includes language to prevent the Food Safety and Inspection Service (FSIS) from implementing a risk-based inspection program in any location until the 

USDA Office of the Inspector General (OIG) has studied the program, including a review of the adequacy of the FSIS plan for evaluating pilot projects, and reported its findings to FSIS and the 

Committees on Appropriations of the House of Representatives and 

the Senate; and FSIS has addressed and resolved issues identified 

by the OIG. 

The conferees emphasize that FSIS should continue other activities related to the implementation of the program, such as data 

collection and public meetings. The conferees recognize that moving 

forward with the risk-based inspection program without comprehensive and accurate scientific data to rank product risk and an 

unbiased system for determining establishment risk would have 

the potential of jeopardizing public health. 

The conference agreement does not include a rescission of unobligated balances from the Trade Adjustment Assistance program 

as proposed by the Senate. 

The conference agreement does not include language regarding 

the implementation of the Wetlands Reserve Program and the 

Farmland Protection Program as proposed by the Senate. 

The conference agreement does not include language regarding 

the Rural Utilities Service Guaranteed Underwriting Program as 

proposed by the Senate. 

CHAPTER 2 

GENERAL PROVISIONS—THIS CHAPTER

Section 4201. The Committee has included a provision designating all Federal employees at the National Energy Technology 

Laboratory as inherently governmental. 

Sec. 4202. The Committee has included a provision related to 

the Bonneville Power Administration. 

CHAPTER 3 

GENERAL PROVISIONS—THIS CHAPTER

Section 4301. The conference agreement modifies a provision 

proposed by the House (section 4301) to amend section 102(a)(3)(B) 

of the Help America Vote Act of 2002 by striking ‘‘January 1, 2006’’

and inserting ‘‘March 1, 2008’’. The Senate bill did not include 

similar language. 


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Sec. 4302. The conference agreement includes a provision proposed by the Senate (section 3301) requiring the components of the 

Office of National Drug Control Policy to remain as they were on 

October 1, 2006, and requiring approval of the Committees on Appropriations to implement a reorganization. The House bill did not 

include similar language. 

Sec. 4303. The conference agreement includes language proposed by the Senate (section 3304) authorizing the National Archives and Records Administration to spend fiscal year 2007 funds 

for activities of the Public Interest Declassification Board. The 

House bill did not include similar language. 

Sec. 4304. The conference agreement includes language proposed by the Senate (section 3307) to provide flexibility to reallocate $1,000,000 in fiscal year 2007 funds for the District of Columbia Courts. The House bill did not include similar language. 

Sec. 4305. The conference agreement includes modified language proposed by the Senate (section 3307) requiring that the 

Treasury Department, in coordination with the Securities and Exchange Commission and in consultation with the Departments of 

State and Energy, prepare and submit a report, with a classified 

annex as necessary, to Congress concerning companies known to 

conduct business operations relating to natural resource extraction 

in Sudan. The language further directs the General Services Administration to notify Congress of any existing Federal contracts 

with the identified companies. The House bill did not include similar language. 

Sec. 4306. The conference agreement modifies a provision proposed by the Senate (section 3308) extending the availability of 

$4,500,000 in fiscal year 2007 funding for the General Services Administration, Office of Inspector General. The House bill did not include similar language. 

Sec. 4307. The conference agreement includes language proposed by the Senate (section 3309) which allows the District of Columbia to use funds made available for foster care improvements 

according to a spending plan submitted to Congress within 60 days. 

The House bill did not include similar language. 

The conference agreement does not include language proposed 

as Senate section 3302 concerning funds made available in section 

21075 of the Continuing Appropriations Resolution, 2007. 

The conference agreement does not include language proposed 

as Senate section 3303 to make a technical correction to a recipient 

of funds under section 613 of P.L. 109–108. 

The conference agreement does not include language proposed 

as Senate section 3305 to require the resubmission of a fiscal year 

2007 spending plan by the General Services Administration within 

7 days. 

The conference agreement does not include language proposed 

as Senate section 3310 to authorize a cost of living adjustment for 

federal judges and justices for fiscal year 2007. 


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CHAPTER 4 

DEPARTMENT OF HOMELAND SECURITY

GENERAL PROVISIONS—THIS CHAPTER

(INCLUDING RESCISSIONS OF FUNDS)

Section 4401.—The conferees modify a provision proposed by 

the Senate to address a funding shortfall in the United States 

Coast Guard ‘‘Retired Pay’’ appropriation. The House bill contains 

no similar provision. The conferees note that estimates for this appropriation have been woefully inaccurate over the past several 

years and direct the Coast Guard to take immediate action to improve the quality and reliability of the data used in its estimates. 

Within 45 days after the date of enactment of this Act, the Coast 

Guard shall submit a report on steps being taken to improve the 

accuracy of its estimates for the ‘‘Retired Pay’’ appropriation. In addition, the conferees direct the Coast Guard to submit quarterly information to the Committees on Appropriations on the use of unobligated balances made available by this Act to address the projected shortfall in this appropriation, as well as updated estimates 

for fiscal year 2008. 

Sec. 4402.—The conferees modify provisions proposed by the 

House and Senate regarding Coast Guard contracting and the Integrated Deepwater Systems program. 

Sec. 4403.—The conferees include a provision proposed by the 

Senate regarding Coast Guard’s Civil Engineering Program. The 

House bill contains no similar provision. 

Sec. 4404.—The conferees modify a provision proposed by the 

House and rescind $30,900,000 from unobligated balances made 

available pursuant to section 505 of Public Law 109-90. The House 

bill rescinds $89,800,000. The Senate bill contains no similar provision. The conferees note the Department’s poor planning and slow 

use of funds available pursuant to section 505. In addition, to address an urgent operational need, the conferees provide 

$30,000,000 for Coast Guard ‘‘Acquisition, Construction, and Improvements’’ to help mitigate the patrol boat operational gap. No 

additional appropriation was included in either the House or Senate bills. The Coast Guard is currently operating 25,000 hours, or 

twenty-five percent, short of its needed patrol boat mission hours. 

This ‘‘gap’’ means that undocumented migrants, drugs, and other 

unlawful activity are less likely to be intercepted by the Coast 

Guard. Funding provided in this section is to be used to acquire 

four new Coastal Patrol Boats, as was requested by the Department of Homeland Security via official correspondence on March 

11, 2007. This includes the production, warranty, training, spares, 

outfitting and project management costs for all four patrol boats. 

The Coast Guard has indicated these new Coastal Patrol Boats will 

partially relieve the burden on existing 110′ patrol boats until a replacement patrol boat can be placed in service. Currently, Floridabased 110′ patrol boats average more than 5,500 mission hours annually which can be performed by the smaller 87′ Coastal Patrol 

Boats operating out of the three primary Florida ports of Tampa, 

Miami and Key West. This will allow the 110′ patrol boats curVerDate Aug 31 2005 13:06 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00230 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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rently operating in these areas to be utilized farther south where 

undocumented migrant traffic and drug smuggling are more prevalent. In addition, the conferees provide $900,000 for the Under Secretary for Management to award a grant or contract to the National Academy of Public Administration to compare the Department of Homeland Security’s reported senior career and political 

staffing levels and senior career training programs with those of 

similarly structured cabinet-level agencies. 

Sec. 4405.—The conferees include a provision proposed by the 

House regarding limitations on lead system integrators. The Senate bill contains no similar provision. 

The conferees do not include a provision proposed by the House 

regarding Border Patrol checkpoints. The Senate bill includes no 

similar provision. 

CHAPTER 5 

GENERAL PROVISIONS—THIS CHAPTER

Section 4501 includes a technical correction to the Bureau of 

Indian Affairs language in P.L. 110–5 as recommended by the Senate in Title III, section 3501 so the Bureau may pay certain contract support costs. The House had a similar provision in section 

4502. 

Sec. 4502 includes a technical correction to P.L. 110–5 as recommended by the Senate in Title III, section 3502, to allow the Indian Health Service to pay certain contract support costs and 

transfer $7,300,000 from ‘‘Services’’ to ‘‘Facilities’’. The House had 

a similar provision in section 4503. 

Sec. 4503 provides a technical correction to P.L. 110–5 designating the funding level for the Save America’s Treasures program 

of the National Park Service, Historic Preservation Fund which 

was recommended by both the House and the Senate. 

Sec. 4504 modifies a provision recommended by the Senate in 

Title III, section 3504 that allows the Fish and Wildlife Service to 

use land acquisition funds for land conservation partnerships authorized by the Highlands Conservation Act of 2004. The House 

had no similar provision. 

The conference agreement does not include the proposal in 

Senate Title II, Chapter 6, section 2601 to reauthorize the Secure 

Rural Schools and Community Self-Determination Act of 2000. The 

conference agreement deals with this issue in Title III. 

The conference agreement does not include Senate recommended sections 3505, regarding the Water Environment Research Foundation, and 3506 related to EPA grant funding. 


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CHAPTER 6 

DEPARTMENT OF HEALTH AND HUMAN SERVICES

NATIONAL INSTITUTES OF HEALTH

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

(TRANSFER OF FUNDS)

The conference agreement includes language proposed by the House transferring $49,500,000 from the National Institutes of 

Health, National Institute of Allergy and Infectious Diseases, to the 

Office of the Secretary, Public Health and Social Services Emergency Fund, to support advanced research and development of biodefense countermeasures. This work is to be conducted by the Assistant Secretary for Preparedness and Response, consistent with 

the authority provided in the Pandemic and All-Hazards Preparedness Act. The Senate amendment included similar language. 

OFFICE OF THE DIRECTOR

(TRANSFER OF FUNDS)

In addition to the funds transferred above, the conference 

agreement includes language which transfers $49,500,000 from the 

National Institutes of Health, Office of the Director, to the Office 

of the Secretary, Public Health and Social Services Emergency 

Fund. These funds would further increase funding for advanced research and development of biodefense countermeasures, consistent 

with the authority provided in the Pandemic and All-Hazards Preparedness Act. Neither the House bill nor Senate amendment included this component of the advanced development transfer. 

NATIONAL COUNCIL ON DISABILITY

SALARIES AND EXPENSES

The conference agreement includes $300,000, to remain available until expended, for expenses related to meeting the requirements of the Post-Katrina Emergency Management Reform Act, 

pertaining to emergency preparedness planning to address the 

needs of individuals with disabilities. Neither the House bill nor 

the Senate amendment included this provision. 

GENERAL PROVISIONS—THIS CHAPTER

(INCLUDING TRANSFERS OF FUNDS AND RESCISSION)

Section 4601. The conference agreement includes language au- thorizing the transfer of $7,000,000 from the Pension Benefit Guaranty Corporation to the Employee Benefits Security Administration 

(EBSA) for the development of the EFAST2 electronic Form 5500 

filing system, as proposed by both the House bill and Senate 

amendment. These funds, together with not less than $5,000,000 

available from the fiscal year 2007 appropriation for the EBSA, 

shall be available for obligation for the EFAST2 system until September 30, 2008. The House bill required that $7,500,000 from 

EBSA’s fiscal year 2007 appropriation be used for the EFAST2 sysVerDate Aug 31 2005 13:06 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00232 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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tem and allowed the funds to be available for obligation for two 

years, while the Senate amendment proposed funding of not less 

than $5,000,000, without extended availability. 

The conferees expect EBSA to contribute an additional amount 

of $2,500,000 from its fiscal years 2007 and 2008 appropriations for 

this system, generated by one-time cost savings proposed in the 

last two years’ budget requests. The conferees also expect EBSA to 

minimize any potential negative impact of the project’s financing 

on enforcement activities, and compliance outreach and education 

programs. The conferees request a briefing on EBSA’s plans for the 

EFAST2 system prior to the announcement of the availability of 

funds for its development. 

Sec. 4602. The conference agreement includes a provision 

amending the Continuing Appropriations Resolution, 2007 that 

designates $9,666,000 for the Women’s Bureau within the appropriation for ‘‘Departmental Management, Salaries and Expenses’’

under the Department of Labor. Neither the House bill nor the 

Senate amendment included this provision. 

The conferees are concerned that the progress being made by 

International Labor Organization’s International Program to Eliminate Child Labor (IPEC), which is aimed at eradicating the most 

abusive forms of child labor could be jeopardized by the Department of Labor’s plans not to make the United States contribution 

to this program for FY 2007. Last May the ILO reported that the 

number of exploited children fell by 11 percent between 2000 and 

2004, and that the organization believes that if the current pace of 

decline were to be sustained, the global commitment to stop child 

labor could feasibly eliminate most of the worst forms of this practice within 10 years. This is a longstanding program with a unique 

approach that relies on the obligations of ILO Member States 

under the requirements of ILO Convention 182 on the Worst Forms 

of Child Labor. The conferees are concerned that if the United 

States—the largest contributor—pulls its funding commitment to 

this program, that action would set back the global partnership 

and have real consequences in specific countries where IPEC 

projects are underway. 

The conferees believe the Department has the flexibility to continue this program under its own procurement guidelines. The conferees expect that any alternative approach should yield equal or 

better results. Therefore, the conferees direct the Department to 

submit a report to the Committees on Appropriations of the Senate 

and the House of Representatives that justifies any proposed approach for the use of these funds by providing information to demonstrate that the alternative approach will be as effective as the 

IPEC tripartite program before any of these funds are obligated to 

alternative entities. 

Sec. 4603. The conference agreement includes a provision that 

designates $23,000,000 for poison control centers within the appropriation for ‘‘Health Resources and Services’’ under the Department 

of Health and Human Services. Neither the House bill nor the Senate amendment included this provision. The conferees direct HRSA 

to submit a revised operating plan within fifteen days of enactment 

of this Act to the Committees on Appropriations of the House of 


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Representatives and the Senate with respect to any changes to that 

plan that result from this provision. Sec. 4604. The conference agreement rescinds $1,000,000 from 

the Office of the Secretary in the Department of Health and 

Human Services as proposed by the Senate and deletes a Senate 

provision pertaining to Public Law 108–406. The House bill did not 

include these provisions. 

The conferees are concerned about delays in receiving technical 

assistance from the Department of Health and Human Services. 

There have been several instances in which the Department has 

not responded to Committee requests for information in a prompt, 

timely fashion. In addition, after repeated complaints, communications between the Department and the Committee staff continue to 

be a major problem. The conferees direct the Department to expedite future information requests through the Office of Resources 

and Technology and request that the Office of Legislative Affairs 

and the Office of Resources and Technology coordinate their efforts 

to keep Committee staff fully informed on matters concerning the 

Committee. 

Sec. 4607. The conference agreement includes bill language 

permitting the Chief Executive Officer of the Corporation for National and Community Service (CNCS) to transfer not more than 

$1,360,000 from ‘‘National and Community Services Programs, Operating Expenses’’ to CNCS ‘‘Salaries and Expenses’’ as proposed 

by the Senate. The House bill did not include a similar provision. 

The conferees direct that this funding be taken from the Innovations, Assistance, and Other Activities budget line to complete 

the Service Center Consolidation Plan rather than the National 

Service Trust. 

Sec. 4608. The conference agreement includes a provision proposed by the Senate modifying section 1310.12(a) of title 45 of the 

Code of Federal Regulations with respect to Head Start transportation vehicles. The conferees expect that the ultimate regulation 

governing the safety of Head Start transit vehicles will be consistent with the National Highway Traffic Safety Administration 

study on occupant protection on Head Start Transit vehicles. The 

conferees intend the interim rule to be in effect only until the Department has reviewed such study and has made any necessary revisions to be consistent with the study outcomes. 

The conference agreement does not include language proposed 

by the Senate which would have created exceptions for two hospitals in Minnesota and Mississippi so that they could be certified 

as Medicare critical access hospitals. The House bill contained no 

similar provision. 

The conference agreement does not include a provision proposed by the Senate rescinding $2,000,000 from student aid administration in the Department of Education and providing $2,000,000 

for a grant to the University of Vermont or the provision also proposed by the Senate repealing the former provision. The House bill 

did not include similar provisions. 

The conference agreement does not include a provision proposed by the Senate to create an authorization of appropriations for 

a grant to the Delta Health Alliance. The House bill did not contain a similar provision. 


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The conference agreement does not include a provision proposed by the House extending the availability of a portion of funds 

previously appropriated for veterans employment and training activities with the Department of Labor. The Senate amendment did 

not include this provision. The conferees agree that the House provision is not needed because the Department already has the authority to incur obligations for this program through December 31, 

2007. 

CHAPTER 7 

LEGISLATIVE BRANCH 

HOUSE OF REPRESENTATIVES 

PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF

CONGRESS

The conference agreement provides $165,200 for payment to 

Gloria W. Norwood, widow of Charles W. Norwood, late a Representative from the State of Georgia, as proposed by the House. 

Inasmuch as this item relates solely to the House, the managers 

on the part of the Senate, at the request of the managers on the 

part of the House, have receded to the amendment of the House. 

CHAPTER 8 

DEPARTMENT OF STATE 

INTERNATIONAL COMMISSIONS

INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

UNITED STATES AND MEXICO

CONSTRUCTION

The conference agreement does not include an appropriation to 

augment funding in fiscal year 2007 for the Rio Grande Flood Control System Rehabilitation project, as proposed by the House. The 

Senate included no similar provision. 

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement does not include a provision proposed by the Senate (sec. 3901) concerning the United States-China 

Economic and Security Review Commission. The House bill included no similar provision. 

Sec. 4801. Technical Amendment—The conference agreement 

includes a provision clarifying the availability of certain funds in 

fiscal year 2007, making a technical change to the composition of 

the Board of the Middle East Foundation and clarifying the availability of funding in fiscal year 2007 for the Foreign Military Financing Program, as proposed by the Senate. The House bill included the same provision regarding the Middle East Foundation. 

Sec. 4802. Funding Limitation—The conference agreement includes a provision proposed by the House (sec. 4802) concerning the 

modification of funding limitations on the Department of State’s 


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Bureau of Legislative Affairs for fiscal year 2007. The Senate bill 

included no similar provision. 

The conferees direct that funding for the Bureau not exceed 

$11,383,000, the amount requested in the fiscal year 2007 budget. 

CHAPTER 9 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

The conference agreement provides $6,150,000 for the Office of 

Federal Housing Enterprise Oversight instead of $7,568,000 as proposed by the House and $4,800,000 as proposed by the Senate. The 

conference agreement includes language as proposed by the Senate 

that reduces this appropriation to zero dollars through offsetting 

collections. 

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes a general provision proposed by the Senate regarding a pilot program on cross-border 

trucking between the United States and Mexico. The House did not 

include a similar provision. 

The conference agreement modifies a general provision proposed by the House that allows funds provided in fiscal year 2007 

for the National Transportation Safety Board to be used to make 

capital lease payments due in fiscal year 2007. The Senate did not 

include a similar provision. 

The conference agreement includes a general provision proposed by both the House and the Senate to clarify the fiscal year 

2007 levels of funding for the Tenant-Based Rental Assistance account. 

The conference agreement includes a general provision proposed by the House to allow housing projects subsidized with 

project-based certificates to be renewed under the Project-Based 

Rental Assistance program. The Senate did not include a similar 

provision. 

The conference agreement does not include a provision proposed by the House making a technical change to a proviso regarding the ‘‘Moving to Work’’ program. 

The conference agreement does not include a provision proposed by the Senate regarding asset-based management because 

the Department of Housing and Urban Development has administratively changed the compliance date to October 1, 2007. 

TITLE V 

AGRICULTURAL ASSISTANCE

The conferees direct the Secretary to adhere to all existing federal statutes, program regulations, executive orders and program 

guidance or directives to ensure that compensation is provided only 


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where appropriate and allowed under such reglations, orders or 

guidance and that the integrity of the program is maintained without exception. 

Section. 5101. The conference agreement includes language regarding Crop Disaster Assistance providing financial assistance to 

producers on a farm who incurred qualifying quantity or quality 

losses for a 2005, 2006 or 2007 crop before February 28, 2007 due 

to damaging weather or any related condition. 

The conference agreement does not include a separate provision for sugar beet and sugar cane disaster assistance as proposed 

by the Senate. Qualifying losses are covered under the Crop Disaster Assistance provision. 

Sec. 5102. The conference agreement includes language providing financial assistance through the Livestock Compensation 

Program and the Livestock Indemnity Program for livestock losses 

and livestock indemnity payments to producers on farms that have 

incurred livestock losses between January 1, 2005 and February 

28, 2007. 

Sec. 5103. The conference agreement provides $20,000,000 for 

the Emergency Conservation Program as proposed by the House instead of $35,000,000 as proposed by the Senate. 

The conference agreement does not include a separate provision for the tree assistance program as proposed by the Senate. 

Qualifying losses are covered under the Emergency Conservation 

Program provision. 

Sec. 5104. The conference agreement includes language regarding payment limitations. 

Sec. 5105. The conference agreement includes provisions regarding the administration of the foregoing sections. 

Sec. 5106. The conference agreement includes language regarding the National Dairy Market Loss Payment program. Sec. 5107. The conference agreement provides $20,000,000 in- stead of $95,000,000 as proposed by the Senate for payments to 

dairy producers for losses in counties designated as disaster areas. 

Sec. 5108. The conference agreement includes language to clarify the use of claims adjustors. 

Sec. 5109. The conference agreement does not provide funding 

for the Small Business Economic Loss Grant Program. Instead, the 

conference agreement provides $21,000,000 to carry out activities 

authorized under section 2281 of the Food, Agriculture, Conservation and Trade Act of 1990 (42 U.S.C. 5177a) to provide emergency 

grants to assist low-income migrant and seasonal farmworkers. 

The conferees are aware that storms and other natural disasters 

have caused serious disruption to local economies and individuals 

who are involved in agriculture but will not otherwise qualify for 

assistance under this title. 

Sec. 5110. The conference agreement includes language regarding the Conservation Security Program as proposed by the Senate. 

In fiscal year 2007, producers hold previously executed contracts 

with the Department of Agriculture on which they have relied for 

undertaking various conservation measures. As a consequence of 

current federal funding levels, many producers will be unable this 

fiscal year to recover costs already incurred that are associated 

with their contract performance. The conference agreement will 


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allow the Department of Agriculture to meet the intended outcome 

of contracts executed between the Department and the affected producers, and to take other measures as appropriate under existing 

authorities. 

Sec. 5111. The conference agreement provides $30,000,000, as 

proposed by the Senate, to cover necessary costs related to the administration of programs, of which $8,500,000, as identified by the 

Farm Service Agency, is for information technology upgrades to assist in carrying out the agricultural disaster assistance provisions 

of this title. 

Sec. 5112. The conference agreement includes language to clarify participation in a crop insurance pilot program. 

The conference agreement does not provide funding for fresh 

spinach growers and first handlers as proposed by the House. 

The conference agreement does not include language regarding 

payments to fresh spinach growers and first handlers as proposed 

by the Senate. 

The conference agreement does not provide funding for the 

peanut storage costs program as proposed by the House. 

The conference agreement does not provide funding for aquaculture losses as proposed by the House. 

The conference agreement does not provide funding for flooded 

crop and grazing land as proposed by the Senate. 

The conference agreement does not provide funding for insect 

infestations as proposed by the Senate. 

TITLE VI 

ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CENTERS FOR MEDICARE AND MEDICAID SERVICES

STATE CHILDREN’S HEALTH INSURANCE FUND

The conference agreement includes an appropriation of 

$650,000,000 to eliminate anticipated State Children’s Health Insurance Program (SCHIP) funding shortfalls for fiscal year 2007 for 

14 States. The House bill provided $750,000,000; the Senate 

amendment included an appropriation of such sums as necessary. 

Sec. 6001. The conference agreement includes language similar 

to provisions in both the House bill and Senate amendment which 

amend the authorizing law to describe the States considered to be 

in shortfall. 

Sec. 6002. The conference agreement includes language which 

prohibits the Secretary of the Department of Health and Human 

Services from taking action in the next year to finalize or otherwise 

implement a proposed regulation affecting the Medicaid program or 

any regulation restricting payments for graduate medical education 

under the Medicaid progam. The Senate amendment had similar 

language prohibiting implementation of the rules for two years. 

The House bill did not contain a similar provision. 

The bill includes a provision to offset the estimated cost of 

blocking the Medicaid rules in this section. This provision: (1) requires States, as a condition of receiving Federal matching funds 


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in Medicaid, to require all providers to use tamper-proof prescription drug pads when writing prescriptions for Medicaid beneficiaries; and (2) extends certain Pharmacy Plus waivers under the 

Medicaid program. The Senate amendment contained a different 

offset, which increased the required rebate for drugs sold through 

the Medicaid program. The House bill contained no similar provision. 

TITLE VII 

FAIR MINIMUM WAGE AND TAX RELIEF

SUBTITLE A—FAIR MINIMUM WAGE

The conference agreement includes provisions to increase the 

Federal minimum wage in the United States to $7.25 an hour over 

two years as proposed by both the House and the Senate. The conference agreement also provides for Federal minimum wage increases of $0.50 per hour, beginning 60 days after enactment, and 

annually thereafter, in the Commonwealth of the Northern Mariana Islands and American Samoa, until their minimum wage 

reaches that of the United States. In addition, the agreement requires that the Department of Labor, through the Bureau of Labor 

Statistics, transmit a report to Congress assessing the impact of 

wage increases in the Commonwealth of the Northern Mariana Islands and American Samoa not later than 32 months after enactment. 

The House bill included a phased increase of $0.50 upon enactment, and $1.00 annually thereafter, in the Federal minimum 

wage for both the Commonwealth of the Northern Mariana Islands 

and American Samoa until their minimum wage reaches that of 

the United States, while the Senate amendment provided a phased 

increase of $0.50 upon enactment, and $1.00 annually thereafter, 

in the Federal minimum wage for the Commonwealth of the Northern Mariana Islands, but no increase in American Samoa. 

SUBTITLE B—SMALL BUSINESS INCENTIVES

The conference agreement modifies small business and work 

opportunity provisions in the Senate amendment that provide enhanced compliance assistance for small businesses, authorize a program for small business child care grants at the Department of 

Health and Human Services, require a study on certain aspects of 

the Earned Income Tax Credit, authorize renewal grants for women’s business centers, and require a report under the Buy American 

Act. The House bill did not contain similar provisions. 

SUBTITLE C

SMALL BUSINESS TAX INCENTIVES

The conference agreement modifies provisions in the House bill 

and Senate amendment regarding small business incentives. The 

conference agreement extends the Work Opportunity Tax Credit 

(‘‘WOTC’’) through August 31, 2011, later than the House proposed 

but sooner than the Senate proposed. The conference agreement expands WOTC to include more veterans with service-connected disVerDate Aug 31 2005 13:06 Apr 27, 2007 Jkt 034803 PO 00000 Frm 00239 Fmt 6601 Sfmt 6601 E:\HR\OC\HR107.XXX HR107

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abilities, ‘‘high risk youth,’’ and employees in ‘‘outward migration 

counties.’’ The House and the Senate had proposed various enhancements. 

The conference agreement enhances the tip credit for certain 

small businesses by freezing the minimum wage level for purposes 

of calculating the credit. The House had similar language, but the 

Senate did not. 

The conference agreement permanently waives both individual 

and corporate alternative minimum tax limitations on WOTC and 

tip credits. The House had similar language, but the Senate did 

not. 

The conference agreement extends small business expensing 

under section 179 through 2010 and increases the expensing limit 

from the current $112,000 to $125,000, as the House had proposed. 

The Senate had similar language. 

The conference agreement extends and expands several tax 

provisions affecting Gulf Opportunity Zones affected by hurricanes 

Katrina, Rita and Wilma. The agreement modifies language proposed by the Senate. The House did not include similar language. 

The conference agreement makes several changes to the treatment of Subchapter S corporations. The Senate had proposed similar language. The House did not include similar language. 

The conference agreement raises the age of children whose unearned income is taxed as their parents’ income. The House and 

Senate both had similar language. 

The conference agreement modifies IRC section 6404(g) which 

provides for suspension of interest and certain penalties, from the 

current 18 months after filing to 36 months. The House had proposed 22 months and the Senate had proposed repeal of suspensions. 

The conference agreement increases the penalty for bad checks 

and money orders, creates a new penalty on claims for refunds filed 

without any reasonable basis, and expands the penalties on tax return preparers. Both House and Senate proposed similar language. 

The conference agreement increases the estimated tax payments due July through September, 2012 for corporations with assets in excess of $l billion. The House had similar language, but the 

Senate did not. 

CONTRACTING REFORM

The conference agreement does not include language proposed 

by the House (as title V of the House bill) relating to federal contracting reform. 

NOTIFICATION OF EMERGENCY LEGISLATION

The congressional budget resolution (H. Con. Res. 95) agreed 

to by Congress for fiscal year 2006, and both the House and Senate 

versions of the congressional budget resolution for fiscal year 2007 

include provisions relating to the notification of emergency spending. These provisions require a statement of how the emergency 

provisions contained in the conference agreement meet the criteria 

for emergency spending as identified in the budget resolution. 

The conference agreement contains emergency funding for fiscal year 2007 for the global war on terror, hurricane recovery in 


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the gulf coast region, emerging threats to homeland security, pandemic influenza prevention, unmet veterans’ healthcare needs, and 

agriculture disaster relief. The funding is related to unanticipated 

needs and is for situations that are sudden, urgent, and unforeseen, specifically the global war on terror and the hurricanes of 

2005. These needs meet the criteria for emergencies. 

EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, this conference report contains no congressional 

earmarks, limited tax benefits, or limited tariff benefits as defined 

in clause 9(d), 9(e), or 9(f) of rule XXI. 

CONFERENCE TOTAL—WITH COMPARISONS

The total new budget (obligational) authority for the fiscal year 

2007 recommended by the Committee of Conference, comparisons 

to the 2007 budget estimates, and the House and Senate bills for 

2007 follow: 

(In thousands of dollars) 

Budget estimates of new (obligational) authority, fiscal year 2007 103,015,427 

House bill, fiscal year 2007 ................................................................... 124,315,636 

Senate bill, fiscal year 2007 .................................................................. 122,807,084 

Conference agreement, fiscal year 2007 .............................................. 124,173,007 

Conference agreement compared with: 

Budget estimates of new (obligational) authority, fiscal year 

2007 .............................................................................................. +21,157,580 

House bill, fiscal year 2007 ............................................................ ¥142,629 

Senate bill, fiscal year 2007 ........................................................... +1,365,923 

DAVID R. OBEY, 

ROSA L. DELAURO, 

JOHN P. MURTHA, 

PETER J. VISCLOSKY, 

NITA LOWEY, CAROLYN KILPATRICK, 

NORMAN D. DICKS, 

CHET EDWARDS, 

ALAN B. MOLLOHAN, 

JOHN OLVER, 

JOSE ́ E. SERRANO, 

DEBBIE WASSERMAN SCHULTZ, 

JAMES E. CLYBURN, 

Managers on the Part of the House. 

ROBERT C. BYRD, DANIEL K. INOUYE, PATRICK J. LEAHY, 

TOM HARKIN, 

BARBARA A. MIKULSKI, 

HERB KOHL, 

PATTY MURRAY, 

BYRON L. DORGAN, 

DIANNE FEINSTEIN, 

RICHARD J. DURBIN, 

TIM JOHNSON, 

MARY L. LANDRIEU, 


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JACK REED, FRANK R. LAUTENBERG, BEN NELSON, Managers on the Part of the Senate. 

Æ 


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