I 

112TH CONGRESS 

1ST SESSION H. R. 408 

To reduce Federal spending by $2.5 trillion through fiscal year 2021. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2011 

Mr. JORDAN (for himself, Mr. GARRETT, Mr. FLORES, Mr. LAMBORN, Mrs. 

BACHMANN, Mr. SCOTT of South Carolina, Mr. CHAFFETZ, Mr. 

LANKFORD, Mr. MACK, Mr. FLEMING, Mr. ROSS of Florida, Mr. CAMPBELL, Mrs. BLACK, Mr. MCCLINTOCK, Mr. AKIN, Mr. MULVANEY, Mr. 

FRANKS of Arizona, Mr. BARTON of Texas, Mr. ROE of Tennessee, Mr. 

MARCHANT, Mr. FLAKE, Mr. GINGREY of Georgia, Mr. HUELSKAMP, Mr. 

WALSH of Illinois, and Mr. COFFMAN of Colorado) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Natural Resources, Transportation and Infrastructure, the Budget, Rules, Appropriations, Agriculture, House Administration, Education and the Workforce, Energy and Commerce, Ways and Means, Financial Services, the 

Judiciary, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To reduce Federal spending by $2.5 trillion through fiscal 

year 2021. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Spending Reduction Act of 2011’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SPENDING REDUCTIONS UNDER CONTINUING 

APPROPRIATIONS ACT, 2011 

Sec. 101. Reduction of nonsecurity discretionary spending to fiscal year 2008 

level. 

TITLE II—CHANGES IN THE BASELINE; DISCRETIONARY 

SPENDING LIMITS FOR NONDEFENSE SPENDING 

Subtitle A—Elimination of Automatic Increases for Inflation 

Sec. 201. Changes in the baseline. 

Sec. 202. Extension. 

Subtitle B—Discretionary Spending Limits for Nondefense Spending 

Sec. 211. Extension of discretionary spending limits for nondefense spending. 

Sec. 212. Enforcement. 

Sec. 213. Reports. 

Sec. 214. Expiration. 

TITLE III—RESCISSION OF UNOBLIGATED STIMULUS FUNDS AND 

REPEAL OF CERTAIN STIMULUS PROVISIONS 

Sec. 301. Rescission of unobligated stimulus funds. 

Sec. 302. Repeal of certain stimulus provisions. 

TITLE IV—PROVISIONS RELATING TO FEDERAL CIVILIAN 

WORKFORCE 

Sec. 401. Extension of Federal employee pay freeze. 

Sec. 402. Limitation on the number of civilian employees in the executive 

branch. 

Sec. 403. Ineligibility of persons having seriously delinquent tax debts for Federal employment. 

Sec. 404. Repeal of certain provisions relating to official time for Federal employees. 

TITLE V—PROGRAM ELIMINATIONS AND RELATED PROVISIONS 

Subtitle A—Provisions Relating to Program Eliminations 

Sec. 501. Program eliminations. 

Sec. 502. Repeal of national organic certification cost-share program. 

Sec. 503. Prohibiting unauthorized payments to District of Columbia. 


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Sec. 504. Prohibiting payment of gratuities to survivors of Members of Congress. 

Sec. 505. Davis-Bacon Repeal Act. 

Sec. 506. Priorities in Education Spending Act. 

Sec. 507. Repeal of temporary increase of Medicaid FMAP. 

Sec. 508. Moratorium on construction or leasing of new Federal buildings in 

District of Columbia until January 2013. 

Subtitle B—Elimination of Presidential Election Campaign Fund 

Sec. 511. Termination of taxpayer financing of Presidential election campaigns. 

Subtitle C—Repeal of Sugar Price Support and Other Programs 

Sec. 521. Repeal of sugar price support program and marketing allotments for 

sugar. 

Sec. 522. Repeal of market access program. 

Sec. 523. Termination of availability of marketing assistance loans and loan deficiency payments for mohair producers. 

Subtitle D—Federal Real Property Disposal Pilot Program 

Sec. 531. Federal Real Property Disposal Pilot Program. 

TITLE VI—FANNIE MAE AND FREDDIE MAC 

Sec. 601. Short title. 

Sec. 602. Definitions. 

Sec. 603. Termination of current conservatorship. 

Sec. 604. Limitation of enterprise authority upon emergence from conservatorship. 

Sec. 605. Required wind down of operations and dissolution of enterprise. 

TITLE VII—MISCELLANEOUS 

Sec. 701. Limitation on Government printing costs. 

Sec. 702. Deposit of IRS user fees as general receipts. 

Sec. 703. Limitation of Government travel costs. 

Sec. 704. Reduction in Federal vehicle costs. 

Sec. 705. Repeals of prohibitions on public-private competitions for conversion 

to contractor performance of functions performed by Federal 

employees pursuant to Office of Management and Budget Circular A–76. 

Sec. 706. Deauthorization of appropriations to carry out PPACA and HCERA. 

Sec. 707. Rescission of Health Insurance Reform Implementation funds. 

Sec. 708. Taxpayer-generated deficit reduction. 

Sec. 709. Limitation on funds to implement certain health care laws. 


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1 TITLE I—SPENDING REDUC2 TIONS UNDER CONTINUING 

3 APPROPRIATIONS ACT, 2011 

4 SEC. 101. REDUCTION OF NONSECURITY DISCRETIONARY 

5 SPENDING TO FISCAL YEAR 2008 LEVEL. 

6 (a) IN GENERAL.—Section 101 of the Continuing 

7 Appropriations Act, 2011 (Public Law 111–242) is 

8 amended by adding at the end the following: 

9 ‘‘(b)(1) Such amounts as may be necessary, at a rate 

10 for operations as provided in the appropriations Acts for 

11 fiscal year 2008 referred to in section 101 of division A 

12 of Public Law 110–329 and under the authority and con13 ditions provided in such Acts for projects or activities (in14 cluding the costs of direct loans and loan guarantees) that 

15 are not otherwise provided for, that were conducted in fis16 cal years 2008 and 2010, and for which appropriations, 

17 funds, or other authority were made available in such 

18 Acts. 

19 ‘‘(2) If the amount provided for a project or activity 

20 by paragraph (1) would be higher than the amount pro21 vided in appropriations Acts for fiscal year 2010, such 

22 project or activity shall be funded at the lower such 

23 amount.’’. 


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1 (b) CONTINUATION OF SECURITY-RELATED DISCRE2 TIONARY SPENDING.—Section 101 of such Act is further 

3 amended— 

4 (1) by inserting ‘‘(a)’’ after the section designa5 tion; 

6 (2) in subsection (a), as so amended, by strik7 ing paragraphs (1), (3), (5), (6), (7), (9), and (10); 

8 (3) in subsection (a), as so amended, by redes9 ignating paragraphs (2), (4), and (8) as paragraphs 

10 (1), (2), and (3), respectively; and 

11 (4) by adding at the end of subsection (a), as 

12 amended by paragraphs (1), (2), and (3), the fol13 lowing: 

14 ‘‘(4) Division E of the Consolidated Appropria15 tions Act, 2010 (Public Law 111–117).’’. 

16 (c) CONFORMING AMENDMENTS.—Section 114(2) of 

17 such Act is amended— 

18 (1) by striking ‘‘(8)’’ and inserting ‘‘(3)’’; and 

19 (2) by inserting ‘‘(a)’’ after ‘‘section 101’’. 


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1 TITLE II—CHANGES IN THE 

2 BASELINE; DISCRETIONARY 

3 SPENDING LIMITS FOR NON4 DEFENSE SPENDING 

5 Subtitle A—Elimination of 

6 Automatic Increases for Inflation 

7 SEC. 201. CHANGES IN THE BASELINE. 

8 Section 257(c) of the Balanced Budget and Emer9 gency Deficit Control Act of 1985 is amended— 

10 (1) in the second sentence of paragraph (1), by 

11 striking everything that follows ‘‘current year,’’ and 

12 inserting ‘‘excluding resources designated as an 

13 emergency requirement and any resources provided 

14 in supplemental appropriation laws.’’; 

15 (2) by striking paragraphs (2), (3), (4), and 

16 (5); 

17 (3) by redesignating paragraph (6) as para18 graph (2); and 

19 (4) by inserting after paragraph (2) the fol20 lowing new paragraph: 

21 ‘‘(3) NO ADJUSTMENT FOR INFLATION.—No 

22 adjustment shall be made for inflation or for any 

23 other factor.’’. 


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1 SEC. 202. EXTENSION. 

2 The second sentence of section 275(b) of the Bal3 anced Budget and Emergency Deficit Control Act of 1985 

4 is amended by inserting ‘‘other than subsections (a) 

5 through (d) of section 257’’ after ‘‘title’’. 

6 Subtitle B—Discretionary Spend7 ing Limits for Nondefense 

8 Spending 

9 SEC. 211. EXTENSION OF DISCRETIONARY SPENDING LIM10 ITS FOR NONDEFENSE SPENDING. 

11 (a) IN GENERAL.—Section 251(c) of the Balanced 

12 Budget and Emergency Deficit Control Act of 1985 is 

13 amended to read as follows: 

14 ‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in 

15 this part, the term ‘discretionary spending limit’ means— 

16 ‘‘(1) for fiscal year 2011 for the nondefense 

17 category $457,000,000,000 in new budget authority; 

18 and 

19 ‘‘(2) for each of fiscal years 2012 through 2021 

20 for the nondefense discretionary category 

21 $409,000,000,000 in new budget authority.’’. 

22 (b) DEFINITIONS.—Section 250(c)(4) of the Bal23 anced Budget and Emergency Deficit Control Act of 1985 

24 is amended in subparagraph (C) by inserting ‘‘(and suc25 cessor accounts)’’ after ‘‘budget accounts’’. 


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1 SEC. 212. ENFORCEMENT. 

2 (a) DISCRETIONARY SPENDING LIMIT POINT OF

3 ORDER.—Section 312 of the Congressional Budget Act of 

4 1974 is amended by adding at the end the following new 

5 subsection: 

6 ‘‘(g) DISCRETIONARY SPENDING LIMIT POINT OF

7 ORDER.—It shall not be in order in the House of Rep8 resentatives or the Senate to consider any bill, joint resolu9 tion, amendment, or conference report that— 

10 ‘‘(1) increases the discretionary spending limits 

11 for any ensuing fiscal year after the budget year; or 

12 ‘‘(2) would cause the discretionary spending 

13 limits for the budget year to be breached.’’. 

14 (b) POINT OF ORDER AGAINST BUDGET RESOLU15 TION THAT BREACHES LIMITS.—It shall not be in order 

16 in the House of Representatives or the Senate to consider 

17 any concurrent resolution on the budget that would cause 

18 the discretionary spending limits for the budget year to 

19 be breached. 

20 (c) ADVANCE APPROPRIATION POINT OF ORDER.— 

21 Section 312 of the Congressional Budget Act of 1974 (as 

22 amended by this section) is further amended by adding 

23 at the end the following new subsection: 

24 ‘‘(i) ADVANCE APPROPRIATION POINT OF ORDER.— 

25 It shall not be in order in the House of Representatives 

26 or the Senate to consider any appropriation bill or joint 


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1 resolution, or amendment thereto or conference report 

2 thereon, that provides advance discretionary new budget 

3 authority that first becomes available for any fiscal year 

4 after the budget year at an amount for any program, 

5 project, or activity above the amount of appropriations for 

6 fiscal year 2007 for such program, project, or activity.’’. 

7 SEC. 213. REPORTS. 

8 Subsections (c)(2) and (f)(2)(A) of section 254 of the 

9 Balanced Budget and Emergency Deficit Control Act of 

10 1985 are amended by striking ‘‘2002’’ and inserting 

11 ‘‘2021’’. 

12 SEC. 214. EXPIRATION. 

13 Section 275(b) of the Balanced Budget and Emer14 gency Deficit Control Act of 1985 is amended by striking 

15 ‘‘2002’’ and inserting ‘‘2021’’. 

16 TITLE III—RESCISSION OF UN17 OBLIGATED STIMULUS FUNDS 

18 AND REPEAL OF CERTAIN 

19 STIMULUS PROVISIONS 

20 SEC. 301. RESCISSION OF UNOBLIGATED STIMULUS FUNDS. 

21 Effective on the date of the enactment of this Act, 

22 there are rescinded all unobligated balances of the discre23 tionary appropriations made available by division A of the 

24 American Recovery and Reinvestment Act of 2009 (Public 

25 Law 111–5). 


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1 SEC. 302. REPEAL OF CERTAIN STIMULUS PROVISIONS. 

2 Effective on the date of the enactment of this Act, 

3 subtitles B and C of title II and titles III through VII 

4 of division B of the American Recovery and Reinvestment 

5 Act of 2009 (Public Law 111–5) are repealed, and the 

6 provisions of law amended or repealed by such provisions 

7 of division B are restored or revived as if such provisions 

8 of division B had not been enacted. 

9 TITLE IV—PROVISIONS RELAT10 ING TO FEDERAL CIVILIAN 

11 WORKFORCE 

12 SEC. 401. EXTENSION OF FEDERAL EMPLOYEE PAY FREEZE. 

13 Section 147 of the Continuing Appropriations Act, 

14 2011 (Public Law 111–242) is amended— 

15 (1) in subsection (b)(1), by striking ‘‘2012’’ 

16 and inserting ‘‘2015’’; and 

17 (2) in subsection (c), by striking ‘‘2012’’ and 

18 inserting ‘‘2015’’. 

19 SEC. 402. LIMITATION ON THE NUMBER OF CIVILIAN EM20 PLOYEES IN THE EXECUTIVE BRANCH. 

21 (a) LIMITATION.—Except as otherwise provided in 

22 this section— 

23 (1) no person shall be appointed as a full-time 

24 civilian employee to a permanent position in the ex25 ecutive branch during any month when the number 

26 of such employees is greater than the number equal 


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1 to 85 percent of the number of such employees on 

2 September 30, 2010; and 

3 (2) the number of temporary and part-time em4 ployees in any agency in the executive branch during 

5 any month shall not be greater than the number of 

6 such employees during the corresponding month in 

7 fiscal year 2010. 

8 (b) PROVISIONS RELATING TO LIMITATION UNDER

9 SUBSECTION (a)(1).— 

10 (1) IN GENERAL.—During any period when ap11 pointments are otherwise prohibited under sub12 section (a)(1), an appointing authority may, except 

13 as otherwise provided in this subsection, appoint 

14 persons as full-time civilian employees in permanent 

15 positions in an agency so long as the total number 

16 of persons appointed as full-time civilian employees 

17 in permanent positions in such agency (and attrib18 utable to such period) does not exceed the number 

19 equal to 50 percent of the number of vacancies in 

20 such positions which have occurred during such pe21 riod by reason of resignation, retirement, removal, or 

22 death. 

23 (2) SMALL AGENCIES.—For purposes of para24 graph (1), all agencies which, on the first day of any 

25 period when appointments are otherwise prohibited 


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1 under subsection (a)(1), have 50 or fewer full-time 

2 civilian employees in permanent positions shall be 

3 treated as one agency, and the Director of the Office 

4 of Management and Budget (hereinafter in this sec5 tion referred to as the ‘‘Director’’) shall determine 

6 the vacancies in each such agency which may be 

7 filled by reason of paragraph (1). 

8 (3) REASSIGNMENTS.—For purposes of para9 graph (1), the Director may reassign vacancies from 

10 one agency to another agency when such reassign11 ment is, in the opinion of the Director, necessary or 

12 appropriate because of the creation of a new agency, 

13 because of a change in functions, or for the more ef14 ficient operation of the Government. 

15 (4) TRANSFERS.—If a full-time civilian em16 ployee in a permanent position is transferred from 

17 one agency to another agency— 

18 (A) such transfer shall be taken into ac19 count under paragraph (1) as an appointment 

20 by the head of the agency to which such em21 ployee transfers; and 

22 (B) subsection (a)(1) shall not apply to an 

23 appointment to the vacancy in the agency from 

24 which such employee transferred and such vaVerDate Mar 15 2010 07:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H408.IH H408

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1 cancy shall not be taken into account under 

2 paragraph (1). 

3 (5) EXCLUSION.—Subsection (a)(1) shall not 

4 affect appointments to positions within the United 

5 States Postal Service or the Postal Regulatory Com6 mission, and no employee of the United States Post7 al Service or the Postal Regulatory Commission shall 

8 be taken into account for purposes of any deter9 mination under subsection (a)(1) of the number of 

10 full-time civilian employees in permanent positions in 

11 the executive branch at any time. 

12 (c) PROVISIONS RELATING TO LIMITATION UNDER

13 SUBSECTION (a)(2).—For purposes of subsection (a)(2), 

14 the Director may reassign authorized temporary and part15 time employment from one agency to another agency when 

16 such reassignment is, in the opinion of the Director, nec17 essary or appropriate because of the creation of a new 

18 agency, because of a change in function, or for the more 

19 efficient operation of the Government. 

20 (d) TREATMENT OF CERTAIN EMPLOYEES; AGENCY

21 DEFINED.—For purposes of this section— 

22 (1) there shall not be taken into account— 

23 (A) any position filled by appointment by 

24 the President by and with the advice and con25 sent of the Senate, other than for purposes of 


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1 determining under subsection (a)(1) the number 

2 of full-time civilian employees in permanent po3 sitions in the executive branch at any time; or 

4 (B) casual employees or employees serving 

5 without compensation; and 

6 (2) the term ‘‘agency’’ or ‘‘agency in the execu7 tive branch’’ means an Executive department, a 

8 Government corporation, and an independent estab9 lishment (as those terms are defined in chapter 1 of 

10 title 5, United States Code), but does not include 

11 the Government Accountability Office. 

12 (e) DISPOSITION OF SAVINGS.—The Director shall 

13 maintain a continuous study of all appropriations and con14 tract authorizations in relation to personnel employed and 

15 shall reserve from expenditure the savings in salaries and 

16 wages resulting from the operation of this section, and any 

17 savings in other categories of expense which the Director 

18 determines will result from such operation. 

19 (f) INFORMATION.—Agencies in the executive branch 

20 shall submit to the Director such information as may be 

21 necessary to enable the Director to carry out the functions 

22 of the Director under this section. 

23 (g) REPORTS.—The Director shall submit to each 

24 House of Congress, at the end of each calendar quarter, 

25 a report on the operation of this section. 


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1 (h) REEMPLOYMENT RIGHTS NOT AFFECTED.— 

2 Nothing in this section shall supersede or modify the re3 employment rights of any person under chapter 43 of title 

4 38, United States Code, or any other provision of law con5 ferring reemployment rights upon persons who have per6 formed service in the uniformed services. 

7 (i) REGULATIONS.—The Director shall prescribe any 

8 regulations necessary to carry out the purposes of this sec9 tion. 

10 (j) EFFECTIVE DATE.—This section (other than sub11 section (i)) shall take effect on the first day of the first 

12 month which begins after the date of the enactment of 

13 this Act. 

14 SEC. 403. INELIGIBILITY OF PERSONS HAVING SERIOUSLY 

15 DELINQUENT TAX DEBTS FOR FEDERAL EM16 PLOYMENT. 

17 (a) IN GENERAL.—Chapter 73 of title 5, United 

18 States Code, is amended by adding at the end the fol19 lowing: 


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1 ‘‘SUBCHAPTER VIII—INELIGIBILITY OF PER2 SONS HAVING SERIOUSLY DELINQUENT 

3 TAX DEBTS FOR FEDERAL EMPLOYMENT 

4 ‘‘§ 7381. Ineligibility of persons having seriously de5 linquent tax debts for Federal employ6 ment 

7 ‘‘(a) DEFINITION.—For purposes of this section— 

8 ‘‘(1) the term ‘seriously delinquent tax debt’ 

9 means an outstanding debt under the Internal Rev10 enue Code of 1986 for which a notice of lien has 

11 been filed in public records pursuant to section 6323 

12 of such Code, except that such term does not in13 clude— 

14 ‘‘(A) a debt that is being paid in a timely 

15 manner pursuant to an agreement under sec16 tion 6159 or section 7122 of such Code; and 

17 ‘‘(B) a debt with respect to which a collec18 tion due process hearing under section 6330 of 

19 such Code, or relief under subsection (a), (b), 

20 or (f) of section 6015 of such Code, is re21 quested or pending; and 

22 ‘‘(2) the term ‘Federal employee’ means— 

23 ‘‘(A) an employee, as defined by section 

24 2105; and 


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1 ‘‘(B) an employee of the United States 

2 Postal Service or of the Postal Regulatory Com3 mission. 

4 ‘‘(b) INELIGIBILITY FOR FEDERAL EMPLOYMENT.— 

5 An individual who has a seriously delinquent tax debt shall 

6 be ineligible to be appointed, or to continue serving, as 

7 a Federal employee. 

8 ‘‘(c) EXCEPTION FOR NATIONAL SECURITY, ETC.— 

9 Nothing in subsection (b) shall— 

10 ‘‘(1) apply in the case of any individual whose 

11 services are required for reasons of national security, 

12 as determined by the President in writing; or 

13 ‘‘(2) prevent the continued service of any officer 

14 whose appointment is required to be made by the 

15 President, by and with the advice and consent of the 

16 Senate. 

17 ‘‘(d) REGULATIONS.—The Office of Personnel Man18 agement shall, for purposes of carrying out this section 

19 with respect to the executive branch, prescribe any regula20 tions which the Office considers necessary.’’. 

21 (b) CLERICAL AMENDMENT.—The analysis for chap22 ter 73 of title 5, United States Code, is amended by add23 ing at the end the following: 

‘‘SUBCHAPTER VIII—INELIGIBILITY OF PERSONS HAVING SERIOUSLY

DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT

‘‘7381. Ineligibility of persons having seriously delinquent tax debts for Federal 

employment.’’. 


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1 SEC. 404. REPEAL OF CERTAIN PROVISIONS RELATING TO 

2 OFFICIAL TIME FOR FEDERAL EMPLOYEES. 

3 Subsections (a) and (c) of section 7131 of title 5, 

4 United States Code, are repealed. 

5 TITLE V—PROGRAM ELIMI6 NATIONS AND RELATED PRO7 VISIONS 

8 Subtitle A—Provisions Relating to 

9 Program Eliminations 

10 SEC. 501. PROGRAM ELIMINATIONS. 

11 (a) IN GENERAL.—No funds appropriated or other12 wise available to any Federal department or agency may 

13 be obligated or expended for any program or other purpose 

14 described in subsection (b). 

15 (b) PROGRAMS AND PURPOSES DESCRIBED.—The 

16 programs and purposes described in this subsection are 

17 as follows: 

18 (1) The Legal Services Corporation. 

19 (2) The Save America’s Treasures program. 

20 (3) The National Heritage Areas program. 

21 (4) The National Endowment for the Arts. 

22 (5) The National Endowment for the Human23 ities. 

24 (6) Subpart 3 of part D of title II of the Ele25 mentary and Secondary Education Act of 1965 (20 


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1 U.S.C. 6775) (relating to the Ready-to-Learn Tele2 vision program). 

3 (7) Subpart 12 of part D of title V of the Ele4 mentary and Secondary Education Act of 1965 (20 

5 U.S.C. 7265 et seq.) (relating to educational, cul6 tural, apprenticeship, and exchange programs for 

7 Alaska Natives, Native Hawaiians, and their histor8 ical whaling and trading partners in Massachusetts). 

9 (8) The National and Community Service Act 

10 of 1990 (Public Law 101–610; 42 U.S.C. 12501 et 

11 seq.). 

12 (9) United States contributions to the Inter13 national Fund for Ireland. 

14 (10) The Trade and Development Agency. 

15 (11) The Woodrow Wilson Memorial Act of 

16 1968 (82 Stat. 1356). 

17 (12) United States economic assistance to 

18 Egypt. 

19 (13) The United States Agency for Inter20 national Development. 

21 (14) United States contributions to the Inter22 governmental Panel on Climate Change. 

23 (15) The John C. Stennis Center for Public 

24 Service Training and Development. 


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1 (16) The essential air service program of the 

2 Federal Aviation Administration authorized by sub3 chapter II of chapter 417 of title 49, United States 

4 Code. 

5 (17) The new starts program of the Federal 

6 Transit Administration authorized by section 5309 

7 of title 49, United States Code. 

8 (18) Beach replenishment projects of the Corps 

9 of Engineers. 

10 (19) The Appalachian Regional Commission. 

11 (20) The Economic Development Administra12 tion. 

13 (21) Capital and preventive maintenance 

14 projects for the Washington Metropolitan Area 

15 Transit Authority authorized by title VI of the Pas16 senger Rail Investment and Improvement Act of 

17 2008 (122 Stat. 4968). 

18 (22) Title X of the Public Health Service Act 

19 (42 U.S.C. 300 et seq.) (relating to population re20 search and voluntary family planning programs). 

21 (23) The weatherization program authorized by 

22 part A of title IV of the Energy Conservation and 

23 Production Act (42 U.S.C. 6861 et seq.). 


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1 (24) The FreedomCAR and Fuel Partnership 

2 in the Vehicle Technologies Program of the Depart3 ment of Energy. 

4 (25) The Energy Star program authorized by 

5 section 324A of the Energy Policy and Conservation 

6 Act (42 U.S.C. 6294a). 

7 (26) The Corporation for Public Broadcasting. 

8 (27) Amtrak. 

9 (28) Grants supporting intercity rail passenger 

10 service and high-speed rail. 

11 (29) Applied research sponsored by the Depart12 ment of Energy. 

13 (30) The Technology Innovation Program au14 thorized by section 28 of the National Institute of 

15 Standards and Technology Act (15 U.S.C. 278n). 

16 (31) The Hollings Manufacturing Extension 

17 Partnership and all other programs authorized by 

18 section 25 of the National Institute of Standards 

19 and Technology Act (15 U.S.C. 278k). 

20 (32) The Community Development Fund of the 

21 Department of Housing and Urban Development. 

22 (33) The HOPE VI program of the Depart23 ment of Housing and Urban Development author24 ized by section 24 of the United States Housing Act 

25 of 1937 (42 U.S.C. 1437v). 


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1 (34) Grants provided under Edward Byrne Me2 morial Justice Assistance Grant Program under sub3 part 1 of part E of title I of the Omnibus Crime 

4 Control and Safe Streets Act of 1968 (42 U.S.C. 

5 3750 et seq.) insofar as such grants are for pre-trial 

6 bail services. 

7 (35) United States contributions to the Organi8 zation for Economic Cooperation and Development. 

9 (36) The U.S. Ambassadors Fund for Cultural 

10 Preservation. 

11 (37) Doctoral dissertation research grants au12 thorized under title V of the Housing and Urban 

13 Development Act of 1970 (12 U.S.C. 1701z–1 et 

14 seq.). 

15 (c) TECHNICAL AND CONFORMING CHANGES.—Not 

16 later than 6 months after the date of enactment of this 

17 Act, the President shall submit to Congress a legislative 

18 proposal providing for such technical and conforming 

19 changes in the law as are required by the provisions of 

20 this section. 

21 SEC. 502. REPEAL OF NATIONAL ORGANIC CERTIFICATION 

22 COST-SHARE PROGRAM. 

23 (a) REPEAL OF AUTHORITY FOR PROGRAM.—Section 

24 10606 of the Farm Security and Rural Investment Act 

25 of 2002 (7 U.S.C. 6523) is repealed. 


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1 (b) TERMINATION OF OBLIGATIONS FOR PRO2 GRAM.—On and after the date of enactment of this Act, 

3 no funds shall be obligated to carry out the national or4 ganic certification cost-share program established under 

5 section 10606(a) of the Farm Security and Rural Invest6 ment Act of 2002 (7 U.S.C. 6523). 

7 SEC. 503. PROHIBITING UNAUTHORIZED PAYMENTS TO DIS8 TRICT OF COLUMBIA. 

9 No funds appropriated or otherwise available to any 

10 Federal department or agency may be obligated or ex11 pended for any payment to the District of Columbia unless 

12 the payment is authorized by a law other than the law 

13 making the appropriation of the funds involved. 

14 SEC. 504. PROHIBITING PAYMENT OF GRATUITIES TO SUR15 VIVORS OF MEMBERS OF CONGRESS. 

16 (a) PROHIBITION.—No payment may be made from 

17 the applicable accounts of the House of Representatives, 

18 the contingent fund of the Senate, or any other appro19 priated funds for a death gratuity payment to the widow, 

20 widower, or heirs-at-law of any Member of Congress who 

21 dies after the commencement of the Congress to which the 

22 Member has been elected. 

23 (b) NO EFFECT ON OTHER PAYMENTS TO SUR24 VIVORS.—Nothing in subsection (a) shall be construed to 

25 prohibit or affect the payment to any individual of any 


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1 unpaid balance or salary or other sums due to a Member 

2 of Congress who dies after the commencement of the Con3 gress to which the Member has been elected. 

4 (c) DEFINITION.—For purposes of this section, the 

5 term ‘‘Member of Congress’’ means a Senator or a Rep6 resentative in, or Delegate or Resident Commissioner to, 

7 the Congress. 

8 SEC. 505. DAVIS-BACON REPEAL ACT. 

9 (a) SHORT TITLE.—This section may be cited as the 

10 ‘‘Davis-Bacon Repeal Act’’. 

11 (b) REPEAL OF DAVIS-BACON WAGE REQUIRE12 MENTS.—Subchapter IV of chapter 31 of title 40, United 

13 States Code, is repealed. 

14 (c) EFFECTIVE DATE AND LIMITATION.—The 

15 amendment made by subsection (b) shall take effect 30 

16 days after the date of the enactment of this Act but shall 

17 not affect any contract in existence on such date of enact18 ment or made pursuant to invitation for bids outstanding 

19 on such date of enactment. 

20 SEC. 506. PRIORITIES IN EDUCATION SPENDING ACT. 

21 (a) SHORT TITLE.—This section may be cited as the 

22 ‘‘Priorities in Education Spending Act’’. 

23 (b) ELEMENTARY AND SECONDARY EDUCATION PRO24 GRAMS.—The following provisions of the Elementary and 


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1 Secondary Education Act of 1965 (20 U.S.C. 6301 et 

2 seq.) are repealed: 

3 (1) Subpart 3 of part B of title I (20 U.S.C. 

4 6381 et seq.) (relating to the William F. Goodling 

5 Even Start Family Literacy programs). 

6 (2) Subpart 4 of part B of title I (20 U.S.C. 

7 6383) (relating to improving literacy through school 

8 libraries). 

9 (3) Section 1504 of part E of title I (20 U.S.C. 

10 6494) (relating to the Close Up Fellowship pro11 gram). 

12 (4) Part F of title I (20 U.S.C. 6511 et seq.) 

13 (relating to comprehensive school reform). 

14 (5) Section 2151(b) of subpart 5 of part A of 

15 title II (20 U.S.C. 6651(b)) (relating to school lead16 ership). 

17 (6) Section 2151(c) of subpart 5 of part A of 

18 title II (20 U.S.C. 6651(c)) (relating to advanced 

19 certification or advanced credentialing). 

20 (7) Subpart 2 of part C of title II (20 U.S.C. 

21 6701 et seq.) (relating to the National Writing 

22 Project). 

23 (8) Subpart 4 of part C of title II (20 U.S.C. 

24 6721 et seq.) (relating to the teaching of traditional 

25 American history). 


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1 (9) Part D of title II (20 U.S.C. 6751 et seq.) 

2 (relating to enhancing education through tech3 nology). 

4 (10) Subpart 4 of part B of title III (20 U.S.C. 

5 6961 et seq.) (relating to the Emergency Immigrant 

6 Education program). 

7 (11) Section 4129 of subpart 2 of part A of 

8 title IV (20 U.S.C. 7139) (relating to grants to re9 duce alcohol abuse). 

10 (12) Section 4130 of subpart 2 of part A of 

11 title IV (20 U.S.C. 7140) (relating to mentoring 

12 programs). 

13 (13) Subpart 2 of part D of title V (20 U.S.C. 

14 7245) (relating to elementary and secondary school 

15 counseling programs). 

16 (14) Subpart 4 of part D of title V (20 U.S.C. 

17 7249) (relating to smaller learning communities). 

18 (15) Subpart 5 of part D of title V (20 U.S.C. 

19 7251) (relating to the Reading is Fundamental—In20 expensive Book Distribution program). 

21 (16) Subpart 7 of part D of title V (20 U.S.C. 

22 7255 et seq.) (commonly referred to as the ‘‘Star 

23 Schools Act’’). 


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1 (17) Subpart 8 of part D of title V (20 U.S.C. 

2 7257 et seq.) (relating to the Ready to Teach pro3 gram). 

4 (18) Subpart 9 of part D of title V (20 U.S.C. 

5 7259 et seq.) (commonly referred to as the ‘‘Foreign 

6 Language Assistance Act of 2001’’). 

7 (19) Subpart 10 of part D of title V (20 U.S.C. 

8 7261 et seq.) (commonly referred to as the ‘‘Carol 

9 M. White Physical Education Program’’). 

10 (20) Subpart 11 of part D of title V (20 U.S.C. 

11 7263 et seq.) (relating to community technology cen12 ters). 

13 (21) Subpart 12 of part D of title V (20 U.S.C. 

14 7265 et seq.) (relating to educational, cultural, ap15 prenticeship, and exchange programs for Alaska Na16 tives, Native Hawaiians, and their historical whaling 

17 and trading partners in Massachusetts). 

18 (22) Subpart 14 of part D of title V (20 U.S.C. 

19 7269 et seq.) (relating to grants to improve mental 

20 health of children). 

21 (23) Subpart 15 of part D of title V (20 U.S.C. 

22 7271) (relating to arts in education). 

23 (24) Subpart 18 of part D of title V (20 U.S.C. 

24 7277 et seq.) (relating to healthy, high-performance 

25 schools). 


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1 (25) Subpart 20 of part D of title V (20 U.S.C. 

2 7281 et seq.) (relating to additional assistance for 

3 certain local educational agencies impacted by Fed4 eral property acquisition). 

5 (26) Subpart 21 of part D of title V (20 U.S.C. 

6 7283 et seq.) (commonly referred to as the ‘‘Wom7 en’s Educational Equity Act of 2001’’). 

8 (27) Part B of title VII (20 U.S.C. 7511 et 

9 seq.) (commonly referred to as the ‘‘Native Hawai10 ian Education Act’’). 

11 (28) Part C of title VII (20 U.S.C. 7541 et 

12 seq.) (commonly referred to as the ‘‘Alaska Native 

13 Educational Equity, Support, and Assistance Act’’). 

14 (c) EARLY LEARNING OPPORTUNITIES ACT.—Title 

15 VIII of H.R. 5656 of the 106th Congress (20 U.S.C. 9401 

16 et seq.; 114 Stat. 2763, 2763A–77) (commonly referred 

17 to as the ‘‘Early Learning Opportunities Act’’), enacted 

18 by section 1 of Public Law 106–554, is repealed. 

19 (d) HIGHER EDUCATION PROGRAMS.— 

20 (1) HIGHER EDUCATION ACT OF 1965.—The fol21 lowing provisions of the Higher Education Act of 

22 1965 (20 U.S.C. 1001 et seq.) are repealed: 

23 (A) Section 317 (20 U.S.C. 1059d) (relat24 ing to Alaska Native and Native Hawaiian-serv25 ing institutions). 


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1 (B) Subpart 6 of part A of title IV (20 

2 U.S.C. 1070d–31 et seq.) (relating to the Byrd 

3 Honors Scholarship Program). 

4 (C) Subpart 9 of part A of title IV (20 

5 U.S.C. 1070g et seq.) (relating to TEACH 

6 Grants). 

7 (D) Section 428L (20 U.S.C. 1078–12) 

8 (relating to loan repayment for civil legal assist9 ance attorneys). 

10 (E) Section 432(n) (20 U.S.C. 1082(n)) 

11 (relating to default reduction management). 

12 (F) Subpart 3 of part A of title VII (20 

13 U.S.C. 1136 et seq.) (relating to the Thurgood 

14 Marshall Legal Educational Opportunity Pro15 gram). 

16 (G) Subpart 1 of part D of title VII (20 

17 U.S.C. 1140a et seq.) (relating to demonstra18 tion projects to support postsecondary faculty, 

19 staff, and administrators in educating students 

20 with disabilities). 

21 (H) Part E of title VII (20 U.S.C. 1141) 

22 (relating to the College Access Challenge Grant 

23 program). 

24 (I) Part C of title VIII (20 U.S.C. 1161c) 

25 (relating to business workforce partnerships for 


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1 job skill training in high-growth occupations or 

2 industries). 

3 (J) Part G of title VIII (20 U.S.C. 1161h) 

4 (relating to the Patsy Mink Fellowship pro5 gram). 

6 (K) Part I of title VIII (20 U.S.C. 1161i 

7 et seq.) (relating to the Early Childhood Edu8 cation Professional Development and Career 

9 Task Force). 

10 (L) Part J of title VIII (20 U.S.C. 1161j) 

11 (relating to improving science, technology, engi12 neering, and mathematics education with a 

13 focus on Alaska Native and Native Hawaiian 

14 students). 

15 (M) Part K of title VIII (20 U.S.C. 

16 1161k) (relating to pilot programs to increase 

17 college persistence and success). 

18 (N) Part M of title VIII (20 U.S.C. 

19 1161m) (relating to low tuition). 

20 (O) Part N of title VIII (20 U.S.C. 1161n 

21 et seq.) (relating to cooperative education). 

22 (P) Part P of title VIII (20 U.S.C. 1161p) 

23 (relating to grants to create bridges from jobs 

24 to careers). 


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1 (Q) Part Q of title VIII (20 U.S.C. 1161q) 

2 (relating to rural development grants). 

3 (R) Part S of title VIII (20 U.S.C. 1161s) 

4 (relating to training for realtime writers). 

5 (S) Part V of title VIII (20 U.S.C. 1161v) 

6 (relating to modeling and simulation programs). 

7 (T) Part W of title VIII (20 U.S.C. 

8 1161w) (relating to Path to Success). 

9 (U) Part X of title VIII (20 U.S.C. 1161x) 

10 (relating to the School of Veterinary Medicine 

11 Competitive Grant Program). 

12 (V) Part Z of title VIII (20 U.S.C. 1161z) 

13 (relating to the Henry Kuualoha Giugni 

14 Kupuna Memorial Archives). 

15 (2) HIGHER EDUCATION AMENDMENTS OF

16 1998.—The following provisions of the Higher Edu17 cation Amendments of 1998 (Public Law 105–244) 

18 are repealed: 

19 (A) Part D of title VIII (20 U.S.C. 1151) 

20 (relating to the Incarcerated Youth Program). 

21 (B) Part H of title VIII (20 U.S.C. 1153) 

22 (relating to the Underground Railroad Edu23 cational and Cultural Program). 

24 (3) OTHER HIGHER EDUCATION LAWS.—The 

25 following provisions of law are repealed: 


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1 (A) Section 121 of the Education of the 

2 Deaf Act of 1986 (20 U.S.C. 4341) (relating to 

3 Cultural Experiences Grants). 

4 (B) Section 802 of the Higher Education 

5 Opportunity Act (20 U.S.C. 9631) (relating to 

6 the National Center for Research in Advanced 

7 Information and Digital Technologies). 

8 (C) Section 5(c) of the Stevenson-Wydler 

9 Technology Innovation Act of 1980 (15 U.S.C. 

10 3704(c)) (relating to the Minority Serving In11 stitution Digital and Wireless Technology Op12 portunity Program). 

13 (D) Part E of title XV of the Higher Edu14 cation Amendments of 1992 (20 U.S.C. 1070 

15 note; Public Law 102–325) (relating to B.J. 

16 Stupak Olympic Scholarships). 

17 (e) LITERACY PROGRAM FOR PRISONERS.—Notwith18 standing the provisions under the heading ‘‘Safe Schools 

19 and Citizenship Education’’ in title III of division F of 

20 Public Law 108–447 (118 Stat. 3145), the Secretary of 

21 Education may not obligate any funds to carry out section 

22 601 of the National Literacy Act of 1991 (Public Law 

23 102–73; 105 Stat. 356) (relating to literacy for prisoners). 

24 (f) LOAN REPAYMENT FOR PROSECUTORS AND PUB25 LIC DEFENDERS.—The first part JJ of title I of the OmVerDate Mar 15 2010 07:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H408.IH H408

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1 nibus Crime Control and Safe Streets Act of 1968 (section 

2 952 of Public Law 110–315) (relating to loan repayment 

3 for prosecutors and public defenders) is repealed. 

4 (g) CAREER AND TECHNICAL EDUCATION PRO5 GRAMS.—Title II of the Carl D. Perkins Career and Tech6 nical Education Act of 2006 (20 U.S.C. 2371 et seq.) is 

7 repealed. 

8 (h) SPECIAL OLYMPICS SPORT AND EMPOWERMENT

9 ACT OF 2004 PROGRAM.—Section 3(a) of the Special 

10 Olympics Sport and Empowerment Act of 2004 (42 

11 U.S.C. 15001 note) (relating to education activities) is re12 pealed. 

13 (i) HEAD START ACT PROGRAM.—Section 657B of 

14 the Head Start Act (42 U.S.C. 9852b) (relating to Cen15 ters of Excellence in Early Childhood) is repealed. 

16 (j) WORKFORCE INVESTMENT ACT PROGRAM.—Sec17 tion 171(e) of the Workforce Investment Act (20 U.S.C. 

18 2916(e)) (relating to the Energy Efficiency and Renew19 able Energy Worker Training Program) is repealed. 

20 (k) THE NATIONAL ENVIRONMENTAL EDUCATION

21 ACT.—The National Environmental Education Act (20 

22 U.S.C. 5501 et seq.) is repealed. 

23 (l) AMERICA COMPETES ACT.—Part I of subtitle 

24 A of title VI of the America COMPETES Act (20 U.S.C. 


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1 9811 et seq.) (relating to Teachers for a Competitive To2 morrow) is repealed. 

3 SEC. 507. REPEAL OF TEMPORARY INCREASE OF MEDICAID 

4 FMAP. 

5 Effective as of the date of the enactment of this Act, 

6 section 5001 of the American Recovery and Reinvestment 

7 Act of 2009 (42 U.S.C. 1396d note) (relating to the tem8 porary increase of the Medicaid FMAP) is repealed. 

9 SEC. 508. MORATORIUM ON CONSTRUCTION OR LEASING 

10 OF NEW FEDERAL BUILDINGS IN DISTRICT 

11 OF COLUMBIA UNTIL JANUARY 2013. 

12 (a) PROHIBITION.—No funds may be expended for 

13 the construction or lease of buildings or space in the Dis14 trict of Columbia for any branch of the United States Gov15 ernment or any entity within such branch unless a con16 tract for the construction or lease was entered into before 

17 the date of enactment of this Act. 

18 (b) EXCEPTION.—The prohibition contained in sub19 section (a) does not apply in any case in which the expend20 iture of funds for the purposes described in subsection (a) 

21 is necessary in the interests of national security. 

22 (c) EXPIRATION.—The prohibition contained in sub23 section (a) shall expire on January 1, 2013. 


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1 Subtitle B—Elimination of Presi2 dential Election Campaign Fund 

3 SEC. 511. TERMINATION OF TAXPAYER FINANCING OF 

4 PRESIDENTIAL ELECTION CAMPAIGNS. 

5 (a) TERMINATION OF DESIGNATION OF INCOME TAX

6 PAYMENTS.—Section 6096 of the Internal Revenue Code 

7 of 1986 is amended by adding at the end the following 

8 new subsection: 

9 ‘‘(d) TERMINATION.—This section shall not apply to 

10 taxable years beginning after December 31, 2010.’’. 

11 (b) TERMINATION OF FUND AND ACCOUNT.— 

12 (1) TERMINATION OF PRESIDENTIAL ELECTION

13 CAMPAIGN FUND.— 

14 (A) IN GENERAL.—Chapter 95 of subtitle 

15 H of such Code is amended by adding at the 

16 end the following new section: 

17 ‘‘SEC. 9014. TERMINATION. 

18 ‘‘The provisions of this chapter shall not apply with 

19 respect to any Presidential election (or any Presidential 

20 nominating convention) after December 31, 2010, or to 

21 any candidate in such an election.’’. 

22 (B) TRANSFER OF EXCESS FUNDS TO GEN23 ERAL FUND.—Section 9006 of such Code is 

24 amended by adding at the end the following 

25 new subsection: 


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1 ‘‘(d) TRANSFER OF FUNDS REMAINING AFTER

2 2011.—The Secretary shall transfer all amounts in the 

3 fund after December 31, 2011, to the general fund of the 

4 Treasury.’’. 

5 (2) TERMINATION OF ACCOUNT.—Chapter 96 

6 of subtitle H of such Code is amended by adding at 

7 the end the following new section: 

8 ‘‘SEC. 9043. TERMINATION. 

9 ‘‘The provisions of this chapter shall not apply to any 

10 candidate with respect to any Presidential election after 

11 December 31, 2010.’’. 

12 (c) CLERICAL AMENDMENTS.— 

13 (1) The table of sections for chapter 95 of sub14 title H of such Code is amended by adding at the 

15 end the following new item: 

‘‘Sec. 9014. Termination.’’. 

16 (2) The table of sections for chapter 96 of sub17 title H of such Code is amended by adding at the 

18 end the following new item: 

‘‘Sec. 9043. Termination.’’. 

19 Subtitle C—Repeal of Sugar Price 

20 Support and Other Programs 

21 SEC. 521. REPEAL OF SUGAR PRICE SUPPORT PROGRAM 

22 AND MARKETING ALLOTMENTS FOR SUGAR. 

23 (a) SUGAR PROGRAM.— 


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1 (1) REPEAL.—Section 156 of the Federal Agri2 culture Improvement and Reform Act of 1996 (7 

3 U.S.C. 7272) is repealed. 

4 (2) RELATED FEEDSTOCK FLEXIBILITY PRO5 GRAM FOR BIOENERGY PRODUCERS.—Section 9010 

6 of the Farm Security and Rural Investment Act of 

7 2002 (7 U.S.C. 8110) is repealed. 

8 (b) MARKETING ALLOTMENTS FOR SUGAR.— 

9 (1) REPEAL.—Part VII of subtitle B of title III 

10 of the Agricultural Adjustment Act of 1938 (7 

11 U.S.C. 1359aa–1359ll), except section 359k (7 

12 U.S.C. 1359kk), is repealed. 

13 (2) CONFORMING AMENDMENT.—Section 359k 

14 of the Agricultural Adjustment Act of 1938 (7 

15 U.S.C. 1359kk) is amended to read as follows: 

16 ‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 

17 ‘‘(a) ESTABLISHMENT.—Except as provided in sub18 section (c) and notwithstanding any other provision of law, 

19 the Secretary shall establish the tariff-rate quotas for raw 

20 cane sugar and refined sugars for a quota year at the level 

21 necessary to ensure— 

22 ‘‘(1) a robust and competitive sugar processing 

23 industry in the United States; and 

24 ‘‘(2) an adequate supply of sugar at reasonable 

25 prices in the United States. 


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1 ‘‘(b) FACTORS.—In determining the tariff-rate 

2 quotas necessary to satisfy the requirements of para3 graphs (1) and (2) of subsection (a), the Secretary shall 

4 consider the following: 

5 ‘‘(1) The quantity of sugar that will be subject 

6 to human consumption in the United States during 

7 the quota year. 

8 ‘‘(2) The quantity of sugar that will be avail9 able from the domestic processing of sugarcane, 

10 sugar beets, and in-process beet sugar. 

11 ‘‘(3) The quantity of sugar that would provide 

12 for reasonable carryover stocks. 

13 ‘‘(4) The quantity of sugar that will be avail14 able from carry-over stocks for human consumption 

15 in the United States during the quota year. 

16 ‘‘(5) United States obligations under inter17 national trade agreements that have been approved 

18 by Congress. 

19 ‘‘(c) EXCEPTION.—Subsection (a) shall not apply to 

20 specialty sugar.’’. 

21 (c) PERMANENT PRICE SUPPORT LEVELS FOR DES22 IGNATED NONBASIC AGRICULTURAL COMMODITIES.— 

23 (1) REPEAL.—Section 201(a) of the Agricul24 tural Act of 1949 (7 U.S.C. 1446(a)) is amended by 


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1 striking ‘‘milk, sugar beets, and sugarcane’’ and in2 serting ‘‘and milk’’. 

3 (2) CONFORMING AMENDMENT.—Section 301 

4 of the Agricultural Act of 1949 (7 U.S.C. 1447) is 

5 amended by inserting ‘‘(other than sugar beets and 

6 sugarcane)’’ after ‘‘any nonbasic agricultural com7 modity’’. 

8 (d) STORAGE FACILITY LOANS.—Section 1402 of the 

9 Farm Security and Rural Investment Act of 2002 (7 

10 U.S.C. 7971) is repealed. 

11 (e) STORAGE PAYMENTS.—Section 167 of the Fed12 eral Agriculture Improvement and Reform Act of 1996 (7 

13 U.S.C. 7287) is repealed. 

14 SEC. 522. REPEAL OF MARKET ACCESS PROGRAM. 

15 (a) REPEAL OF PROGRAM.—Section 203 of the Agri16 cultural Trade Act of 1978 (7 U.S.C. 5623) is repealed. 

17 (b) REPEAL OF FUNDING.—Section 211 of the Agri18 cultural Trade Act of 1978 (7 U.S.C. 5641) is amended 

19 by striking subsection (c). 

20 SEC. 523. TERMINATION OF AVAILABILITY OF MARKETING 

21 ASSISTANCE LOANS AND LOAN DEFICIENCY 

22 PAYMENTS FOR MOHAIR PRODUCERS. 

23 (a) REMOVAL OF MOHAIR FROM ELIGIBLE LOAN

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1 tion, and Energy Act of 2008 (7 U.S.C. 8702(8)) is 

2 amended by striking ‘‘mohair,’’. 

3 (b) ELIMINATION OF FUTURE LOAN RATES FOR MO4 HAIR.—Section 1202(c) of such Act (7 U.S.C. 8732(c)) 

5 is amended by striking paragraph (18). 

6 Subtitle D—Federal Real Property 

7 Disposal Pilot Program 

8 SEC. 531. FEDERAL REAL PROPERTY DISPOSAL PILOT PRO9 GRAM. 

10 (a) IN GENERAL.—Chapter 5 of subtitle I of title 40, 

11 United States Code, is amended by adding at the end the 

12 following: 

13 ‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF 

14 REAL PROPERTY 

15 ‘‘§ 621. Pilot program 

16 ‘‘(a) The Director of the Office of Management and 

17 Budget (in this subchapter referred to as the ‘Director’) 

18 shall conduct a pilot program, to be known as the ‘Federal 

19 Real Property Disposal Pilot Program’, under which real 

20 property that is not meeting Federal Government needs 

21 may be disposed of in accordance with this subchapter. 

22 ‘‘(b) For purposes of this subchapter, the Director 

23 shall identify criteria for determining whether real prop24 erty is not meeting Federal Government needs. 


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1 ‘‘(c) For the fiscal years 2011 through 2020, the Di2 rector shall dispose of real property generating proceeds 

3 of not less $19,000,000,000 under the Federal Real Prop4 erty Disposal Pilot Program. 

5 ‘‘(d) The Director shall not include for purposes of 

6 the Federal Real Property Disposal Pilot Program any 

7 parcel of real property, building, or other structure located 

8 on such real property that is to be closed or realigned 

9 under the Defense Base Closure and Realignment Act of 

10 1990 (10 U.S.C. 2687 note). 

11 ‘‘(e) The Federal Real Property Disposal Pilot Pro12 gram shall terminate on September 30, 2020. 

13 ‘‘§ 622. Selection of real properties 

14 ‘‘Agencies will recommend candidate disposition 

15 properties to the Director for participation in the pilot 

16 program. The Director, with the concurrence of the head 

17 of the executive agency concerned and consistent with the 

18 criteria established in section 621, may then select such 

19 candidate properties for participation in the pilot program 

20 and notify the recommending agency accordingly. 

21 ‘‘§ 623. Expedited disposal requirements 

22 ‘‘(a) For purposes of the pilot program, an ‘expedited 

23 disposal of a real property’ is a sale of real property for 

24 cash that is conducted pursuant to the requirements of 

25 section 545 of this title. 


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1 ‘‘(b) Real property sold under the pilot program must 

2 be sold at not less than the fair market value as deter3 mined by the Director in consultation with the head of 

4 the executive agency. Costs associated with disposal may 

5 not exceed the fair market value of the property unless 

6 the Director approves incurring such costs. 

7 ‘‘(c) A real property may be sold under the pilot pro8 gram only if the property will generate monetary proceeds 

9 to the Federal Government, as provided in subsection (b). 

10 A disposal of real property under the pilot program may 

11 not include any exchange, trade, transfer, acquisition of 

12 like-kind property, or other noncash transaction as part 

13 of the disposal. 

14 ‘‘(d) Nothing in this subchapter shall be construed 

15 as terminating or in any way limiting authorities that are 

16 otherwise available to agencies under other provisions of 

17 law to dispose of Federal real property, except as provided 

18 in subsection (e). 

19 ‘‘(e) Any expedited disposal of a real property con20 ducted under this section shall not be subject to— 

21 ‘‘(1) subchapter IV of this chapter; 

22 ‘‘(2) sections 550 and 553 of this title; 

23 ‘‘(3) section 501 of the McKinney-Vento Home24 less Assistance Act (42 U.S.C. 11411); 


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1 ‘‘(4) any other provision of law authorizing the 

2 no-cost conveyance of real property owned by the 

3 Federal Government; or 

4 ‘‘(5) any congressional notification requirement 

5 other than that in section 545 of this title. 

6 ‘‘§ 624. Special rules for deposit and use of proceeds 

7 from expedited disposals 

8 ‘‘(a) Agencies that conduct expedited disposals of real 

9 properties under this subchapter shall be reimbursed from 

10 the proceeds for the administrative expenses associated 

11 with the disposal of such properties. Such amounts will 

12 be credited as offsetting collections to the account that in13 curred such expenses, to remain available until expended 

14 without further appropriations. 

15 ‘‘(b) After payment of such administrative costs, the 

16 balance of the proceeds shall be distributed as follows: 

17 ‘‘(1) 80 percent shall be deposited into the 

18 Treasury as miscellaneous receipts. 

19 ‘‘(2) 20 percent shall be deposited into the ac20 count of the agency that owned the real property 

21 and initiated the disposal action. Such funds shall be 

22 available without further appropriation, to remain 

23 available for the period of the pilot program, for ac24 tivities related to Federal real property capital im25 provements and disposal activities. Upon termination 


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1 of the pilot program, any unobligated amounts shall 

2 be transferred to the general fund of the Treasury.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 at the beginning of chapter 5 of subtitle I of title 40, 

5 United States Code, is amended by inserting after the 

6 item relating to section 611 the following: 

‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF REAL PROPERTY

‘‘Sec. 621. Pilot program. 

‘‘Sec. 622. Selection of real properties. 

‘‘Sec. 623. Expedited disposal requirements. 

‘‘Sec. 624. Special rules for deposit and use of proceeds from expedited disposals.’’. 

7 TITLE VI—FANNIE MAE AND 

8 FREDDIE MAC 

9 SEC. 601. SHORT TITLE. 

10 This title may be cited as the ‘‘GSE Bailout Elimi11 nation and Taxpayer Protection Act’’. 

12 SEC. 602. DEFINITIONS. 

13 For purposes of this title, the following definitions 

14 shall apply: 

15 (1) CHARTER.—The term ‘‘charter’’ means— 

16 (A) with respect to the Federal National 

17 Mortgage Association, the Federal National 

18 Mortgage Association Charter Act (12 U.S.C. 

19 1716 et seq.); and 

20 (B) with respect to the Federal Home 

21 Loan Mortgage Corporation, the Federal Home 


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1 Loan Mortgage Corporation Act (12 U.S.C. 

2 1451 et seq.). 

3 (2) DIRECTOR.—The term ‘‘Director’’ means 

4 the Director of the Federal Housing Finance Agen5 cy. 

6 (3) ENTERPRISE.—The term ‘‘enterprise’’ 

7 means— 

8 (A) the Federal National Mortgage Asso9 ciation; and 

10 (B) the Federal Home Loan Mortgage 

11 Corporation. 

12 (4) GUARANTEE.—The term ‘‘guarantee’’ 

13 means, with respect to an enterprise, the credit sup14 port of the enterprise that is provided by the Fed15 eral Government through its charter as a Govern16 ment-sponsored enterprise. 

17 SEC. 603. TERMINATION OF CURRENT CONSERVATORSHIP. 

18 (a) IN GENERAL.—Upon the expiration of the period 

19 referred to in subsection (b), the Director of the Federal 

20 Housing Finance Agency shall determine, with respect to 

21 each enterprise, if the enterprise is financially viable at 

22 that time and— 

23 (1) if the Director determines that the enter24 prise is financially viable, immediately take all ac25 tions necessary to terminate the conservatorship for 


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1 the enterprise that is in effect pursuant to section 

2 1367 of the Federal Housing Enterprises Financial 

3 Safety and Soundness Act of 1992 (12 U.S.C. 

4 4617); or 

5 (2) if the Director determines that the enter6 prise is not financially viable, immediately appoint 

7 the Federal Housing Finance Agency as receiver 

8 under section 1367 of the Federal Housing Enter9 prises Financial Safety and Soundness Act of 1992 

10 and carry out such receivership under the authority 

11 of such section. 

12 (b) TIMING.—The period referred to in this sub13 section is, with respect to an enterprise— 

14 (1) except as provided in paragraph (2), the 24- 

15 month period beginning upon the date of the enact16 ment of this Act; or 

17 (2) if the Director determines before the expira18 tion of the period referred to in paragraph (1) that 

19 the financial markets would be adversely affected 

20 without the extension of such period under this 

21 paragraph with respect to that enterprise, and upon 

22 making such determination notifies the Congress in 

23 writing of such determination, the 30-month period 

24 beginning upon the date of the enactment of this 

25 Act. 


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1 (c) FINANCIAL VIABILITY.—The Director may not 

2 determine that an enterprise is financially viable for pur3 poses of subsection (a) if the Director determines that any 

4 of the conditions for receivership set forth in paragraph 

5 (3) or (4) of section 1367(a) of the Federal Housing En6 terprises Financial Safety and Soundness Act of 1992 (12 

7 U.S.C. 4617(a)) exist at the time with respect to the en8 terprise. 

9 SEC. 604. LIMITATION OF ENTERPRISE AUTHORITY UPON 

10 EMERGENCE FROM CONSERVATORSHIP. 

11 (a) REVISED AUTHORITY.—Upon the expiration of 

12 the period referred to in section 603(b), if the Director 

13 makes the determination under section 603(a)(1), the fol14 lowing provisions shall take effect: 

15 (1) REPEAL OF HOUSING GOALS.— 

16 (A) REPEAL.—The Federal Housing En17 terprises Financial Safety and Soundness Act 

18 of 1992 is amended by striking sections 1331 

19 through 1336 (12 U.S.C. 4561–6). 

20 (B) CONFORMING AMENDMENTS.—Federal 

21 Housing Enterprises Financial Safety and 

22 Soundness Act of 1992 is amended— 

23 (i) in section 1303(28) (12 U.S.C. 

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1 poses’’ and all that follows through ‘‘des2 ignated disaster areas’’; 

3 (ii) in section 1324(b)(1)(A) (12 

4 U.S.C. 4544(b)(1)(A))— 

5 (I) by striking clauses (i), (ii), 

6 and (iv); 

7 (II) in clause (iii), by inserting 

8 ‘‘and’’ after the semicolon at the end; 

9 and 

10 (III) by redesignating clauses 

11 (iii) and (v) as clauses (i) and (ii), re12 spectively; 

13 (iii) in section 1338(c)(10) (12 U.S.C. 

14 4568(c)(10)), by striking subparagraph 

15 (E); 

16 (iv) in section 1339(h) (12 U.S.C. 

17 4569), by striking paragraph (7); 

18 (v) in section 1341 (12 U.S.C. 

19 4581)— 

20 (I) in subsection (a)— 

21 (aa) in paragraph (1), by in22 serting ‘‘or’’ after the semicolon 

23 at the end; 


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1 (bb) in paragraph (2), by 

2 striking the semicolon at the end 

3 and inserting a period; and 

4 (cc) by striking paragraphs 

5 (3) and (4); and 

6 (II) in subsection (b)(2)— 

7 (aa) in subparagraph (A), 

8 by inserting ‘‘or’’ after the semi9 colon at the end; 

10 (bb) by striking subpara11 graphs (B) and (C); and 

12 (cc) by redesignating sub13 paragraph (D) as subparagraph 

14 (B); 

15 (vi) in section 1345(a) (12 U.S.C. 

16 4585(a))— 

17 (I) in paragraph (1), by inserting 

18 ‘‘or’’ after the semicolon at the end; 

19 (II) in paragraph (2), by striking 

20 the semicolon at the end and inserting 

21 a period; and 

22 (III) by striking paragraphs (3) 

23 and (4); and 

24 (vii) in section 1371(a)(2) (12 U.S.C. 

25 4631(a)(2))— 


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1 (I) by striking ‘‘with any housing 

2 goal established under subpart B of 

3 part 2 of subtitle A of this title,’’; and 

4 (II) by striking ‘‘section 1336 

5 or’’. 

6 (2) PORTFOLIO LIMITATIONS.—Subtitle B of 

7 title XIII of the Housing and Community Develop8 ment Act of 1992 (12 U.S.C. 4611 et seq.) is 

9 amended by adding at the end the following new sec10 tion: 

11 ‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN12 TERPRISES. 

13 ‘‘(a) RESTRICTION.—No enterprise shall own, as of 

14 any applicable date in this subsection or thereafter, mort15 gage assets in excess of— 

16 ‘‘(1) upon the expiration of the period referred 

17 to in section 603(b) of the GSE Bailout Elimination 

18 and Taxpayer Protection Act or thereafter, 

19 $850,000,000,000; 

20 ‘‘(2) upon the expiration of the 1-year period 

21 that begins on the date described in paragraph (1) 

22 or thereafter, $700,000,000,000; 

23 ‘‘(3) upon the expiration of the 2-year period 

24 that begins on the date described in paragraph (1) 

25 or thereafter, $500,000,000,000; and 


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1 ‘‘(4) upon the expiration of the 3-year period 

2 that begins on the date described in paragraph (1), 

3 $250,000,000,000. 

4 ‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur5 poses of this section, the term ‘mortgage assets’ means, 

6 with respect to an enterprise, assets of such enterprise 

7 consisting of mortgages, mortgage loans, mortgage-related 

8 securities, participation certificates, mortgage-backed 

9 commercial paper, obligations of real estate mortgage in10 vestment conduits and similar assets, in each case to the 

11 extent such assets would appear on the balance sheet of 

12 such enterprise in accordance with generally accepted ac13 counting principles in effect in the United States as of 

14 September 7, 2008 (as set forth in the opinions and pro15 nouncements of the Accounting Principles Board and the 

16 American Institute of Certified Public Accountants and 

17 statements and pronouncements of the Financial Account18 ing Standards Board from time to time; and without giv19 ing any effect to any change that may be made after Sep20 tember 7, 2008, in respect of Statement of Financial Ac21 counting Standards No. 140 or any similar accounting 

22 standard).’’. 

23 (3) INCREASE IN MINIMUM CAPITAL REQUIRE24 MENT.—Section 1362 of the Federal Housing En25 terprises Financial Safety and Soundness Act of 


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1 1992 (12 U.S.C. 4612), as amended by section 1111 

2 of the Housing and Economic Recovery Act of 2008 

3 (Public Law 110–289), is amended— 

4 (A) in subsection (a), by striking ‘‘For 

5 purposes of this subtitle, the minimum capital 

6 level for each enterprise shall be’’ and inserting 

7 ‘‘The minimum capital level established under 

8 subsection (g) for each enterprise may not be 

9 lower than’’; 

10 (B) in subsection (c)— 

11 (i) by striking ‘‘subsections (a) and’’ 

12 and inserting ‘‘subsection’’; 

13 (ii) by striking ‘‘regulated entities’’ 

14 the first place such term appears and in15 serting ‘‘Federal Home Loan Banks’’; 

16 (iii) by striking ‘‘for the enterprises,’’; 

17 (iv) by striking ‘‘, or for both the en18 terprises and the banks,’’; 

19 (v) by striking ‘‘the level specified in 

20 subsection (a) for the enterprises or’’; and 

21 (vi) by striking ‘‘the regulated entities 

22 operate’’ and inserting ‘‘such banks oper23 ate’’; 

24 (C) in subsection (d)(1)— 


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1 (i) by striking ‘‘subsections (a) and’’ 

2 and inserting ‘‘subsection’’; and 

3 (ii) by striking ‘‘regulated entity’’ 

4 each place such term appears and inserting 

5 ‘‘Federal Home Loan Bank’’; 

6 (D) in subsection (e), by striking ‘‘regu7 lated entity’’ each place such term appears and 

8 inserting ‘‘Federal Home Loan Bank’’; 

9 (E) in subsection (f)— 

10 (i) by striking ‘‘the amount of core 

11 capital maintained by the enterprises,’’; 

12 and 

13 (ii) by striking ‘‘regulated entities’’ 

14 and inserting ‘‘banks’’; and 

15 (F) by adding at the end the following new 

16 subsection: 

17 ‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP18 ITAL LEVELS.— 

19 ‘‘(1) IN GENERAL.—The Director shall cause 

20 the enterprises to achieve and maintain adequate 

21 capital by establishing minimum levels of capital for 

22 such the enterprises and by using such other meth23 ods as the Director deems appropriate. 

24 ‘‘(2) AUTHORITY.—The Director shall have the 

25 authority to establish such minimum level of capital 


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1 for an enterprise in excess of the level specified 

2 under subsection (a) as the Director, in the Direc3 tor’s discretion, deems to be necessary or appro4 priate in light of the particular circumstances of the 

5 enterprise. 

6 ‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM

7 CAPITAL LEVELS.— 

8 ‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON9 DITION.—Failure of an enterprise to maintain cap10 ital at or above its minimum level as established 

11 pursuant to subsection (g) of this section may be 

12 deemed by the Director, in his discretion, to con13 stitute an unsafe and unsound practice or condition 

14 within the meaning of this title. 

15 ‘‘(2) DIRECTIVE TO ACHIEVE CAPITAL

16 LEVEL.— 

17 ‘‘(A) AUTHORITY.—In addition to, or in 

18 lieu of, any other action authorized by law, in19 cluding paragraph (1), the Director may issue 

20 a directive to an enterprise that fails to main21 tain capital at or above its required level as es22 tablished pursuant to subsection (g) of this sec23 tion. 

24 ‘‘(B) PLAN.—Such directive may require 

25 the enterprise to submit and adhere to a plan 


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1 acceptable to the Director describing the means 

2 and timing by which the enterprise shall achieve 

3 its required capital level. 

4 ‘‘(C) ENFORCEMENT.—Any such directive 

5 issued pursuant to this paragraph, including 

6 plans submitted pursuant thereto, shall be en7 forceable under the provisions of subtitle C of 

8 this title to the same extent as an effective and 

9 outstanding order issued pursuant to subtitle C 

10 of this title which has become final. 

11 ‘‘(3) ADHERENCE TO PLAN.— 

12 ‘‘(A) CONSIDERATION.—The Director may 

13 consider such enterprise’s progress in adhering 

14 to any plan required under this subsection 

15 whenever such enterprise seeks the requisite ap16 proval of the Director for any proposal which 

17 would divert earnings, diminish capital, or oth18 erwise impede such enterprise’s progress in 

19 achieving its minimum capital level. 

20 ‘‘(B) DENIAL.—The Director may deny 

21 such approval where it determines that such 

22 proposal would adversely affect the ability of 

23 the enterprise to comply with such plan.’’. 

24 (4) REPEAL OF INCREASES TO CONFORMING

25 LOAN LIMITS.— 


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1 (A) REPEAL OF TEMPORARY INCREASES.— 

2 (i) CONTINUING APPROPRIATIONS

3 RESOLUTION, 2010.—Section 167 of the 

4 Continuing Appropriations Resolution, 

5 2010 (as added by section 104 of division 

6 B of Public Law 111–88; 123 Stat. 2973) 

7 is repealed. 

8 (ii) AMERICAN RECOVERY AND REIN9 VESTMENT ACT OF 2009.—Section 1203 of 

10 division A of the American Recovery and 

11 Reinvestment Act of 2009 (Public Law 

12 111–5; 123 Stat. 225) is repealed. 

13 (iii) ECONOMIC STIMULUS ACT OF

14 2008.—Section 201 of the Economic Stim15 ulus Act of 2008 (Public Law 110–185; 

16 122 Stat. 619) is repealed. 

17 (B) REPEAL OF GENERAL LIMIT AND PER18 MANENT HIGH-COST AREA INCREASE.—Para19 graph (2) of section 302(b) of the Federal Na20 tional Mortgage Association Charter Act (12 

21 U.S.C. 1717(b)(2)) and paragraph (2) of sec22 tion 305(a) of the Federal Home Loan Mort23 gage Corporation Act (12 U.S.C. 1454(a)(2)) 

24 are each amended to read as such sections were 

25 in effect immediately before the enactment of 


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1 the Housing and Economic Recovery Act of 

2 2008 (Public Law 110–289). 

3 (C) REPEAL OF NEW HOUSING PRICE

4 INDEX.—Section 1322 of the Federal Housing 

5 Enterprises Financial Safety and Soundness 

6 Act of 1992, as added by section 1124(d) of the 

7 Housing and Economic Recovery Act of 2008 

8 (Public Law 110–289), is repealed. 

9 (D) REPEAL.—Section 1124 of the Hous10 ing and Economic Recovery Act of 2008 (Public 

11 Law 110–289) is repealed. 

12 (E) ESTABLISHMENT OF CONFORMING

13 LOAN LIMIT.—For the year in which the expira14 tion of the period referred to in section 603(b) 

15 of this section occurs, the limitations governing 

16 the maximum original principal obligation of 

17 conventional mortgages that may be purchased 

18 by the Federal National Mortgage Association 

19 and the Federal Home Loan Mortgage Cor20 poration, referred to in section 302(b)(2) of the 

21 Federal National Mortgage Association Charter 

22 Act (12 U.S.C. 1717(b)(2)) and section 

23 305(a)(2) of the Federal Home Loan Mortgage 

24 Corporation Act (12 U.S.C. 1454(a)(2)), re25 spectively, shall be considered to be— 


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1 (i) $417,000 for a mortgage secured 

2 by a single-family residence, 

3 (ii) $533,850 for a mortgage secured 

4 by a 2-family residence, 

5 (iii) $645,300 for a mortgage secured 

6 by a 3-family residence, and 

7 (iv) $801,950 for a mortgage secured 

8 by a 4-family residence, 

9 and such limits shall be adjusted effective each 

10 January 1 thereafter in accordance with such 

11 sections 302(b)(2) and 305(a)(2). 

12 (F) PROHIBITION OF PURCHASE OF MORT13 GAGES EXCEEDING MEDIAN AREA HOME

14 PRICE.— 

15 (i) FANNIE MAE.—Section 302(b)(2) 

16 of the Federal National Mortgage Associa17 tion Charter Act (12 U.S.C. 1717(b)(2)) is 

18 amended by adding at the end the fol19 lowing new sentence: ‘‘Notwithstanding 

20 any other provision of this title, the cor21 poration may not purchase any mortgage 

22 for a property having a principal obligation 

23 that exceeds the median home price, for 

24 properties of the same size, for the area in 


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1 which such property subject to the mort2 gage is located.’’. 

3 (ii) FREDDIE MAC.—Section 

4 305(a)(2) of the Federal Home Loan 

5 Mortgage Corporation Act (12 U.S.C. 

6 1454(a)(2)) is amended by adding at the 

7 end the following new sentence: ‘‘Notwith8 standing any other provision of this title, 

9 the Corporation may not purchase any 

10 mortgage for a property having a principal 

11 obligation that exceeds the median home 

12 price, for properties of the same size, for 

13 the area in which such property subject to 

14 the mortgage is located.’’. 

15 (5) REQUIREMENT OF MINIMUM DOWNPAYMENT

16 FOR MORTGAGES PURCHASED.— 

17 (A) FANNIE MAE.—Subsection (b) of sec18 tion 302 of the Federal National Mortgage As19 sociation Charter Act (12 U.S.C. 1717(b)) is 

20 amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(7) Notwithstanding any other provision of this Act, 

23 the corporation may not newly purchase any mortgage un24 less the mortgagor has paid, in cash or its equivalent on 

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1 gage, in accordance with regulations issued by the Direc2 tor of the Federal Housing Finance Agency, not less 

3 than— 

4 ‘‘(A) for any mortgage purchased during the 

5 12-month period beginning upon the expiration of 

6 the period referred to in section 603(b) of the GSE 

7 Bailout Elimination and Taxpayer Protection Act, 5 

8 percent of the appraised value of the property; 

9 ‘‘(B) for any mortgage purchased during the 

10 12-month period beginning upon the expiration of 

11 the 12-month period referred to in subparagraph (A) 

12 of this paragraph, 7.5 percent of the appraised value 

13 of the property; and 

14 ‘‘(C) for any mortgage purchased during the 

15 12-month period beginning upon the expiration of 

16 the 12-month period referred to in subparagraph 

17 (B) of this paragraph, 10 percent of the appraised 

18 value of the property.’’. 

19 (B) FREDDIE MAC.—Subsection (a) of sec20 tion 305 of the Federal Home Loan Mortgage 

21 Corporation Act (12 U.S.C. 1454(a)) is amend22 ed by adding at the end the following new para23 graph: 

24 ‘‘(6) Notwithstanding any other provision of this Act, 

25 the Corporation may not newly purchase any mortgage 


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1 unless the mortgagor has paid, in cash or its equivalent 

2 on account of the property securing repayment of such 

3 mortgage, in accordance with regulations issued by the Di4 rector of the Federal Housing Finance Agency, not less 

5 than— 

6 ‘‘(A) for any mortgage purchased during the 

7 12-month period beginning upon the expiration of 

8 the period referred to in section 603(b) of the GSE 

9 Bailout Elimination and Taxpayer Protection Act, 5 

10 percent of the appraised value of the property; 

11 ‘‘(B) for any mortgage purchased during the 

12 12-month period beginning upon the expiration of 

13 the 12-month period referred to in subparagraph (A) 

14 of this paragraph, 7.5 percent of the appraised value 

15 of the property; and 

16 ‘‘(C) for any mortgage purchased during the 

17 12-month period beginning upon the expiration of 

18 the 12-month period referred to in subparagraph 

19 (B) of this paragraph, 10 percent of the appraised 

20 value of the property.’’. 

21 (6) REQUIREMENT TO PAY STATE AND LOCAL

22 TAXES.— 

23 (A) FANNIE MAE.—Paragraph (2) of sec24 tion 309(c) of the Federal National Mortgage 


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1 Association Charter Act (12 U.S.C. 

2 1723a(c)(2)) is amended— 

3 (i) by striking ‘‘shall be exempt from’’ 

4 and inserting ‘‘shall be subject to’’; and 

5 (ii) by striking ‘‘except that any’’ and 

6 inserting ‘‘and any’’. 

7 (B) FREDDIE MAC.—Section 303(e) of the 

8 Federal Home Loan Mortgage Corporation Act 

9 (12 U.S.C. 1452(e)) is amended— 

10 (i) by striking ‘‘shall be exempt from’’ 

11 and inserting ‘‘shall be subject to’’; and 

12 (ii) by striking ‘‘except that any’’ and 

13 inserting ‘‘and any’’. 

14 (7) REPEALS RELATING TO REGISTRATION OF

15 SECURITIES.— 

16 (A) FANNIE MAE.— 

17 (i) MORTGAGE-BACKED SECURI18 TIES.—Section 304(d) of the Federal Na19 tional Mortgage Association Charter Act 

20 (12 U.S.C. 1719(d)) is amended by strik21 ing the fourth sentence. 

22 (ii) SUBORDINATE OBLIGATIONS.— 

23 Section 304(e) of the Federal National 

24 Mortgage Association Charter Act (12 


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1 U.S.C. 1719(e)) is amended by striking the 

2 fourth sentence. 

3 (B) FREDDIE MAC.—Section 306 of the 

4 Federal Home Loan Mortgage Corporation Act 

5 (12 U.S.C. 1455) is amended by striking sub6 section (g). 

7 (8) RECOUPMENT OF COSTS FOR FEDERAL

8 GUARANTEE.— 

9 (A) ASSESSMENTS.—The Director of the 

10 Federal Housing Finance Agency shall establish 

11 and collect from each enterprise assessments in 

12 the amount determined under subparagraph 

13 (B). In determining the method and timing for 

14 making such assessments, the Director shall 

15 take into consideration the determinations and 

16 conclusions of the study under subsection (b) of 

17 this section. 

18 (B) DETERMINATION OF COSTS OF GUAR19 ANTEE.—Assessments under subparagraph (A) 

20 with respect to an enterprise shall be in such 

21 amount as the Director determines necessary to 

22 recoup to the Federal Government the full value 

23 of the benefit the enterprise receives from the 

24 guarantee provided by the Federal Government 

25 for the obligations and financial viability of the 


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1 enterprise, based upon the dollar value of such 

2 benefit in the market to such enterprise when 

3 not operating under conservatorship or receiver4 ship. To determine such amount, the Director 

5 shall establish a risk-based pricing mechanism 

6 as the Director considers appropriate, taking 

7 into consideration the determinations and con8 clusions of the study under subsection (b) of 

9 this section. 

10 (C) TREATMENT OF RECOUPED

11 AMOUNTS.—The Director shall cover into the 

12 general fund of the Treasury any amounts re13 ceived from assessments made under this para14 graph. 

15 (b) GAO STUDY REGARDING RECOUPMENT OF

16 COSTS FOR FEDERAL GOVERNMENT GUARANTEE.—The 

17 Comptroller General of the United States shall conduct 

18 a study to determine a risk-based pricing mechanism to 

19 accurately determine the value of the benefit the enter20 prises receive from the guarantee provided by the Federal 

21 Government for the obligations and financial viability of 

22 the enterprises. Such study shall establish a dollar value 

23 of such benefit in the market to each enterprise when not 

24 operating under conservatorship or receivership, shall ana25 lyze various methods of the Federal Government assessing 


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1 a charge for such value received (including methods involv2 ing an annual fee or a fee for each mortgage purchased 

3 or securitized), and shall make a recommendation of the 

4 best such method for assessing such charge. Not later 

5 than 12 months after the date of the enactment of this 

6 Act, the Comptroller General shall submit to the Congress 

7 a report setting forth the determinations and conclusions 

8 of such study. 

9 SEC. 605. REQUIRED WIND DOWN OF OPERATIONS AND DIS10 SOLUTION OF ENTERPRISE. 

11 (a) APPLICABILITY.—This section shall apply to an 

12 enterprise upon the expiration of the 3-year period that 

13 begins upon the expiration of the period referred to in sec14 tion 603(b). 

15 (b) REPEAL OF CHARTER.—Upon the applicability of 

16 this section to an enterprise, the charter for the enterprise 

17 is repealed and the enterprise shall have no authority to 

18 conduct new business under such charter, except that the 

19 provisions of such charter in effect immediately before 

20 such repeal shall continue to apply with respect to the 

21 rights and obligations of any holders of outstanding debt 

22 obligations and mortgage-backed securities of the enter23 prise. 

24 (c) WIND DOWN.—Upon the applicability of this sec25 tion to an enterprise, the Director and the Secretary of 


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1 the Treasury shall jointly take such action, and may pre2 scribe such regulations and procedures, as may be nec3 essary to wind down the operations of an enterprise as 

4 an entity chartered by the United States Government over 

5 the duration of the 10-year period beginning upon the ap6 plicability of this section to the enterprise (pursuant to 

7 subsection (a)) in an orderly manner consistent with this 

8 Act and the ongoing obligations of the enterprise. 

9 (d) DIVISION OF ASSETS AND LIABILITIES; AUTHOR10 ITY TO ESTABLISH HOLDING CORPORATION AND DIS11 SOLUTION TRUST FUND.—The action and procedures re12 quired under subsection (c)— 

13 (1) shall include the establishment and execu14 tion of plans to provide for an equitable division and 

15 distribution of assets and liabilities of the enterprise, 

16 including any liability of the enterprise to the United 

17 States Government or a Federal reserve bank that 

18 may continue after the end of the period described 

19 in subsection (c); and 

20 (2) may provide for establishment of— 

21 (A) a holding corporation organized under 

22 the laws of any State of the United States or 

23 the District of Columbia for the purposes of the 

24 reorganization and restructuring of the enter25 prise; and 


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1 (B) one or more trusts to which to trans2 fer— 

3 (i) remaining debt obligations of the 

4 enterprise, for the benefit of holders of 

5 such remaining obligations; or 

6 (ii) remaining mortgages held for the 

7 purpose of backing mortgage-backed secu8 rities, for the benefit of holders of such re9 maining securities. 

10 TITLE VII—MISCELLANEOUS 

11 SEC. 701. LIMITATION ON GOVERNMENT PRINTING COSTS. 

12 Not later than 180 days after the date of enactment 

13 of this Act, the Director of the Office of Management and 

14 Budget shall coordinate with the heads of Federal depart15 ments and independent agencies to— 

16 (1) determine which Government publications 

17 could be available on Government Web sites and no 

18 longer printed and to devise a strategy to reduce 

19 overall Government printing costs over the 10-year 

20 period beginning with fiscal year 2012, except that 

21 the Director shall ensure that essential printed docu22 ments prepared for Social Security recipients, Medi23 care beneficiaries, and other populations in areas 

24 with limited Internet access or use continue to re25 main available; 


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1 (2) establish Governmentwide Federal guide2 lines on employee printing; 

3 (3) issue on the Office of Management and 

4 Budget’s public Web site the results of a cost-benefit 

5 analysis on implementing a digital signature system 

6 and on establishing employee printing identification 

7 systems, such as the use of individual employee 

8 cards or codes, to monitor the amount of printing 

9 done by Federal employees; except that the Director 

10 of the Office of Management and Budget shall en11 sure that Federal employee printing costs unrelated 

12 to national defense, homeland security, border secu13 rity, national disasters, and other emergencies do 

14 not exceed $860,000,000 annually; and 

15 (4) issue guidelines requiring every department, 

16 agency, commission, or office to list at a prominent 

17 place near the beginning of each publication distrib18 uted to the public and issued or paid for by the Fed19 eral Government— 

20 (A) the name of the issuing agency, de21 partment, commission, or office; 

22 (B) the total number of copies of the docu23 ment printed; 

24 (C) the collective cost of producing and 

25 printing all of the copies of the document; and 


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1 (D) the name of the firm publishing the 

2 document. 

3 SEC. 702. DEPOSIT OF IRS USER FEES AS GENERAL RE4 CEIPTS. 

5 Notwithstanding any other provision of law (includ6 ing section 3 under the heading ‘‘Administrative Provi7 sions—Internal Revenue Service’’ of title I of Public Law 

8 103–329), any fees for services provided by the Internal 

9 Revenue Service shall, unless otherwise provided by an ap10 propriations Act, be deposited in the Treasury as general 

11 receipts and shall not be expended by the Internal Rev12 enue Service. 

13 SEC. 703. LIMITATION OF GOVERNMENT TRAVEL COSTS. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law, the total amount which is paid or reimbursed 

16 by an agency under subchapter I of chapter 57 of title 

17 5, United States Code (relating to travel and subsistence 

18 expenses; mileage allowances for official travel by Federal 

19 employees) may not, for any of the next 5 fiscal years be20 ginning after the date of enactment of this Act, exceed 

21 50 percent of the total amount so paid or reimbursed by 

22 such agency for the fiscal year in which such date of enact23 ment occurs. 


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1 (b) EXCEPTIONS.—For purposes of carrying out sub2 section (a), there shall not be taken into account the 

3 amounts paid or reimbursed for— 

4 (1) any subsistence or travel expenses for 

5 threatened law enforcement personnel, as described 

6 in section 5706a of title 5, United States Code; or 

7 (2) any other expenses for which an exception 

8 is established under subsection (c) for reasons relat9 ing to national security or public safety. 

10 (c) REGULATIONS.—Any regulations necessary to 

11 carry out this section shall, in consultation with the Direc12 tor of the Office of Management and Budget, be pre13 scribed by the same respective authorities as are respon14 sible for prescribing regulations under section 5707 of title 

15 5, United States Code. 

16 SEC. 704. REDUCTION IN FEDERAL VEHICLE COSTS. 

17 Notwithstanding any other provision of law— 

18 (1) of the amounts made available to the Gen19 eral Services Administration for the acquisition of 

20 new vehicles for the Federal fleet for fiscal year 

21 2011 and remaining unobligated as of the date of 

22 enactment of this Act, an amount equal to 20 per23 cent of all such amounts is rescinded; 

24 (2) for fiscal year 2012 and each fiscal year 

25 thereafter— 


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1 (A) the amount made available to the Gen2 eral Services Administration for the acquisition 

3 of new vehicles for the Federal fleet shall not 

4 exceed an amount equal to 80 percent of the 

5 amount made available for the acquisition of 

6 those vehicles for fiscal year 2011 (before appli7 cation of subsection (a)); and 

8 (B) the number of new vehicles acquired 

9 by the General Services Administration for the 

10 Federal fleet shall not exceed a number equal to 

11 50 percent of the vehicles so acquired for fiscal 

12 year 2011; and 

13 (3) any amounts made available under Public 

14 Law 111–5 for the acquisition of new vehicles for 

15 the Federal fleet shall be disregarded for purposes of 

16 determining the baseline. 

17 SEC. 705. REPEALS OF PROHIBITIONS ON PUBLIC-PRIVATE 

18 COMPETITIONS FOR CONVERSION TO CON19 TRACTOR PERFORMANCE OF FUNCTIONS 

20 PERFORMED BY FEDERAL EMPLOYEES PUR21 SUANT TO OFFICE OF MANAGEMENT AND 

22 BUDGET CIRCULAR A–76. 

23 (a) REPEALS IN PUBLIC LAW 111–117.—The fol24 lowing provisions of law are repealed: 


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1 (1) Section 735 of the Financial Services and 

2 General Government Appropriations Act, 2010 (divi3 sion C of Public Law 111–117; 123 Stat. 3214). 

4 (2) Section 743(g) of such Act (123 Stat. 

5 3218). 

6 (3) Section 212 of the Commerce, Justice, 

7 Science, and Related Agencies Appropriations Act, 

8 2010 (division B of Public Law 111–117; 123 Stat. 

9 3140). 

10 (b) A–76 COMPETITIONS.—Notwithstanding any 

11 other provision of law, an executive agency may begin, 

12 plan for, announce, continue, finish, or approve a study 

13 on public-private competition regarding the conversion to 

14 contractor performance of any function performed by Fed15 eral employees pursuant to Office of Management and 

16 Budget Circular A–76 or any other administrative regula17 tion, directive, or policy. 

18 SEC. 706. DEAUTHORIZATION OF APPROPRIATIONS TO 

19 CARRY OUT PPACA AND HCERA. 

20 Notwithstanding any other provision of law, no funds 

21 are authorized to be appropriated to carry out the provi22 sions of the Patient Protection and Affordable Care Act 

23 (Public Law 111–148), the Health Care and Education 

24 Reconciliation Act of 2010 (Public Law 111–152), and 

25 any amendment made by either such Act. 


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1 SEC. 707. RESCISSION OF HEALTH INSURANCE REFORM IM2 PLEMENTATION FUNDS. 

3 Of the funds made available by section 1005(b) of 

4 the Health Care and Education Reconciliation Act of 2010 

5 (Public Law 111–152; 42 U.S.C. 18121(b)), the unobli6 gated balance is rescinded. 

7 SEC. 708. TAXPAYER-GENERATED DEFICIT REDUCTION. 

8 (a) DESIGNATION OF INCOME TAX PAYMENTS TO

9 REDUCE THE DEFICIT.— 

10 (1) DESIGNATION.—Subchapter A of chapter 

11 61 of the Internal Revenue Code of 1986 (relating 

12 to returns and records) is amended by adding at the 

13 end the following new part: 

14 ‘‘PART IX—DESIGNATION ON INCOME TAX 

15 RETURNS FOR REDUCTION OF DEFICIT 

‘‘Sec. 6097. Designation for reduction of the deficit. 

16 ‘‘SEC. 6097. DESIGNATION FOR REDUCTION OF THE DEF17 ICIT. 

18 ‘‘(a) IN GENERAL.—Every individual, regardless of 

19 income tax liability for the taxable year, may designate 

20 that an amount (not less than $1 and not more than $10) 

21 shall be paid over for the purpose of reducing the deficit 

22 of the United States. In the case of a joint return of hus23 band and wife, each spouse may so designate an amount. 

24 ‘‘(b) INCOME TAX LIABILITY.—For purposes of sub25 section (a), the income tax liability of an individual for 


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1 any taxable year is the amount of the tax imposed by 

2 chapter 1 on such individual for such taxable year (as 

3 shown on his return), reduced by the sum of the credits 

4 (as shown in his return) allowable under part IV of sub5 chapter A of chapter 1 (other than subpart C thereof). 

6 ‘‘(c) MANNER AND TIME OF DESIGNATION.—Rules 

7 similar to the rules of section 6096(c) shall apply for pur8 poses of this section, except that the designation shall be 

9 accompanied by the following statement: ‘The Federal 

10 budget will be reduced by an amount equal to ten times 

11 the amount you elect in the box.’. 

12 ‘‘(d) AMOUNT INCREASE.—In the case of each tax13 able year beginning after 2011, the maximum dollar 

14 amount that may be designated under subsection (a) shall 

15 be increased by $1. In the case of a joint return of hus16 band and wife, such amount shall increase by $2 each tax17 able year.’’. 

18 (2) CLERICAL AMENDMENT.—The table of 

19 parts for subchapter A of chapter 61 of such Code 

20 is amended by adding at the end the following new 

21 item: 

‘‘PART IX—DESIGNATION OF INCOME TAX PAYMENTS TO REDUCE THE

DEFICIT.’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this section shall apply to taxable years beginning 

24 after December 31, 2010. 


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1 (b) TAXPAYER-GENERATED SEQUESTRATION OF

2 FEDERAL SPENDING TO REDUCE THE DEFICIT.— 

3 (1) SEQUESTRATION TO REDUCE DEFICIT.— 

4 Part C of the Balanced Budget and Emergency Def5 icit Control Act of 1985 is amended by inserting 

6 after section 253 the following new section: 

7 ‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE DEFICIT. 

8 ‘‘(a) SEQUESTRATION.— 

9 ‘‘(1) TIMING.—Within 15 calendar days after 

10 the date Congress adjourns to end a session, and on 

11 the same day as sequestration (if any) under sec12 tions 251, 252, and 253, but after any sequestration 

13 required by those sections, there shall be a seques14 tration to eliminate the deficit equivalent to the 

15 amount calculated under paragraph (2). 

16 ‘‘(2) CALCULATION.— 

17 ‘‘(A) OMB CALCULATION.—Before October 

18 1st of each calendar year, OMB shall calculate 

19 the total amount designated under section 6097 

20 of the Internal Revenue Code of 1986. 

21 ‘‘(B) FEDERAL SPENDING REDUCTION.— 

22 In accordance with the deadline under para23 graph (1), OMB shall apply an across the board 

24 reduction in Federal spending in an amount 

25 equal to the product of— 


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1 ‘‘(i) the amount calculated under sub2 paragraph (A); and 

3 ‘‘(ii) 10. 

4 ‘‘(3) CARRYOVER.—Any amounts not calculated 

5 by OMB by the October 1st deadline, as set forth 

6 in subparagraph (2)(A), shall be applied to the fol7 lowing fiscal year Federal spending reduction pursu8 ant to this section. 

9 ‘‘(b) APPLICABILITY.— 

10 ‘‘(1) IN GENERAL.—Except as provided by 

11 paragraph (2), each account of the United States 

12 shall be reduced by a dollar amount calculated by 

13 multiplying the level of budgetary resources in that 

14 account at that time by the uniform percentage nec15 essary to carry out subsection (a). All obligational 

16 authority so reduced shall be done in a manner that 

17 makes such reductions permanent. 

18 ‘‘(2) EXEMPT ACCOUNTS.—The following pro19 grams shall be exempt from reduction under any 

20 order issued under this section: 

21 ‘‘(A) Benefits payable under the old-age, 

22 survivors, and disability insurance program es23 tablished under title II of the Social Security 

24 Act. 


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1 ‘‘(B) Benefits payable under section 3(a), 

2 3(f)(3), 4(a), or 4(f) of the Railroad Retirement 

3 Act of 1974. 

4 ‘‘(C) Benefits payable under title 18 of the 

5 Social Security Act. 

6 ‘‘(D) The rate of pay of any judge or jus7 tice appointed pursuant to article III of the 

8 Constitution of the United States. 

9 ‘‘(E) Veterans’ benefits listed under sec10 tions 255(b) and 255(f) of the Balanced Budget 

11 and Emergency Deficit Control Act of 1985 (2 

12 U.S.C. 905(b), 905(f)). 

13 ‘‘(c) EFFECTIVE DATE.—This section shall apply to 

14 calender years beginning after December 31, 2010.’’. 

15 (2) REPORTS.—Section 254 of the Balanced 

16 Budget and Emergency Deficit Control Act of 1985 

17 is amended— 

18 (A) in subsection (a), by adding at the end 

19 of the table the following new item: 

‘‘October 1 ....................... OMB report estimating amount of income tax designated pursuant to section 6097 of the Internal 

Revenue Code of 1986.’’. 

20 (B) in subsection (c)(1), by inserting ‘‘, 

21 and sequestration to reduce the deficit,’’ after 

22 ‘‘sequestration’’; 


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1 (C) in subsection (c), by redesignating 

2 paragraph (5) as paragraph (6) and by insert3 ing after paragraph (4) the following new para4 graph: 

5 ‘‘(5) REPORTS ON SEQUESTRATION TO REDUCE

6 THE DEFICIT.—The preview reports shall set forth 

7 for the budget year estimates for each of the fol8 lowing: 

9 ‘‘(A) The aggregate amount designated 

10 under section 6097 of the Internal Revenue 

11 Code of 1986 for the last calendar year ending 

12 before the budget year. 

13 ‘‘(B) The amount of reductions required 

14 under section 253A and the deficit remaining 

15 after those reductions have been made. 

16 ‘‘(C) The sequestration percentage nec17 essary to achieve the required reduction in ac18 counts under section 253A(a).’’; and 

19 (D) in subsection (f), by redesignating 

20 paragraphs (4) and (5) as paragraphs (5) and 

21 (6), respectively, and by inserting after para22 graph (3) the following new paragraph: 

23 ‘‘(4) REPORTS ON SEQUESTRATION TO REDUCE

24 THE DEFICIT.—The final reports shall contain all of 


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1 the information contained in the deficit taxation des2 ignation report required on October 1.’’. 

3 (3) EFFECTIVE DATE.—Notwithstanding sec4 tion 275(b) of the Balanced Budget and Emergency 

5 Deficit Control Act of 1985, the expiration date set 

6 forth in that section shall not apply to the amend7 ments made by this Act. On the date specified in 

8 section 253A of the Balanced Budget and Emer9 gency Deficit Control Act of 1985, as amended by 

10 this section, the President shall issue an order fully 

11 implementing the sequestration required by section 

12 253A of such Act, as amended by this section. This 

13 order shall be effective on issuance. 

14 SEC. 709. LIMITATION ON FUNDS TO IMPLEMENT CERTAIN 

15 HEALTH CARE LAWS. 

16 The Continuing Appropriations Act, 2011 (Public 

17 Law 111–242), as amended by section 101, is amended 

18 by adding at the end the following: 

19 ‘‘SEC. 167. No appropriations or funds made avail20 able or authority granted pursuant to section 101(b)(1) 

21 may be used to carry out any program under, promulgate 

22 any regulation pursuant to, or defend against any lawsuit 

23 challenging any provision of Public Law 111–148 or PubVerDate Mar 15 2010 07:11 Jan 25, 2011 Jkt 099200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H408.IH H408

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1 lic Law 111–152 or any amendment made by either such 

2 Public Law.’’. 

Æ 


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