U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

29–012 2004

108th Congress, 2d Session – – – – – – – – – – – – House Document 108–200 

REQUESTS FOR FY 2005 BUDGET AMENDMENTS 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

REQUESTS FOR FY 2005 BUDGET AMENDMENTS FOR THE DEPARTMENTS OF AGRICULTURE, HEALTH AND HUMAN SERVICES, 

HOUSING AND URBAN DEVELOPMENT, JUSTICE, AND LABOR. IN 

ADDITION AN FY 2004 LANGUAGE PROPOSAL FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

JULY, 15, 2004.—Referred to the Committee on Appropriations and 

ordered to be printed. 


E:\Seals\Congress.#13

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(1) 

THE WHITE HOUSE, 

Washington, July 14, 2004. 

Hon. J. DENNIS HASTERT, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: I ask the Congress to consider the enclosed 

FY 2005 budget amendments for the Departments of Agriculture, 

Health and Human Services, Housing and Urban Development, 

Justice, and Labor. In addition, I ask the Congress to consider the 

enclosed FY 2004 language proposal for the Department of Housing 

and Urban Development. Overall, the discretionary budget authority proposed in my FY 2005 Budget would not be increased by 

these requests. 

The details of these proposals are set forth in the enclosed letter 

from the Director of the Office of Management and Budget. 

Sincerely, 

GEORGE W. BUSH. 

Enclosure. 

(3) 

[Estimate No. 7, 108th Cong., 2d Sess.] 

EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET, 

Washington, DC, July 13, 2004. 

The PRESIDENT, The White House. 

Submitted for your consideration are requests for FY 2005 budget amendments for the Departments of Agriculture, Health and 

Human Services, Housing and Urban Development, Justice, and 

Labor. In addition, this transmittal includes an FY 2004 language 

proposal for the Department of Housing and Urban Development. 

Overall, discretionary budget authority would not be increased by 

these requests. 

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

Special Supplemental Nutrition Program 

• An additional $300 million is proposed for the Department of 

Agriculture’s Special Supplemental Nutrition Program for Women, 

Infants, and Children (WIC) to ensure that resources are adequate 

to meet State agencies’ requirements to fulfill demand in FY 2005. 

This requested increase in budget authority would be fully offset 

within the Department of Agriculture. 

Health 

• A language amendment is proposed for the Department of 

Health and Human Services (HHS) that would provide the Secretary of HHS the flexibility to target resources to States with individuals with HIV/AIDS most in need of lifesaving medications and 

to increase the total resources available under the set-aside for severe need populations. 

• A language amendment is also proposed for HHS that would 

increase human stem cell research funding by reallocating funds 

within the National Institutes of Health. 

Prisoner Re-entry Initiative 

• FY 2005 amendments to the pending appropriations language 

for the Administration’s Prisoner Re-entry Initiative are also proposed. The amendments would modify the requests for the Departments of Housing and Urban Development, Justice, and Labor to 

facilitate the allocation of joint grant awards, make funds available 

at the beginning of FY 2005, and broaden the list of eligible grantees and activities, but would not increase the total funding requested. With the involvement of faith-based and community 

groups, the initiative will help individuals exiting prison make a 

successful transition to community life and long-term employment. 

4 

Federal Detention Trustee 

• An additional $150 million is proposed for the Department of 

Justice’s Office of the Federal Detention Trustee to fund housing 

and related expenses of the increasing detainee population in nonFederal facilities. This requested increase in FY 2005 budget authority would be fully offset within the Justice Department. 

Housing 

• Language is proposed for the Department of Housing and 

Urban Development that would increase the loan commitment limit 

for the Federal Housing Administration General and Special Risk 

Program by $4 billion, bringing the total limit for FY 2004 to $29 

billion. 

Recommendation 

I have carefully reviewed these proposals and am satisfied that 

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

affected Departments in recommending that you transmit these 

amendments to the Congress. 

Sincerely, 

JOSHUA B. BOLTEN, 

Director. 

Enclosures. 

5 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

FOOD AND NUTRITION SERVICE

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 

AND CHILDREN (WIC)

FY 2005 Budget Appendix Page: 177 

FY 2005 Pending Request: $4,787,250,000 

Proposed Amendment: $300,000,000 

Revised Request: $5,087,250,000 

(In the appropriations language under the above heading, amend 

as follows:) 

(1) Delete ‘‘$4,787,250,000’’ and substitute $5,087,250,000; 

(2) Insert after ‘‘to remain available through September 30, 2006’’

, of which $300,000,000 shall be allocated as the Secretary deems 

necessary, notwithstanding section 17(i) of such Act, to support participation; and 

(3) Insert before the period : Provided further, That none of the 

funds provided shall be available to pay the administrative expenses 

of a State agency that, after the date of enactment of this Act, authorizes any additional vendors to transact food instruments under 

this program if more than 50 percent of the annual revenue of the 

vendor is derived from the sale of supplemental foods that are obtained with food instruments, except that the Secretary may permit 

a State agency to approve the authorization of such a vendor if the 

approval is necessary to assure access to program benefits 

This proposal would increase the appropriations request for the 

Special Supplemental Nutrition Program for Women, Infants, and 

Children (WIC) to ensure that resources are adequate to meet 

State agencies’ requirements to fulfill current and anticipated demand for program services. This increase is necessitated by significantly higher than anticipated growth in food costs and, to a lesser 

extent, participation in the program. 

This amendment would also provide the Secretary of Agriculture 

with the discretion to direct the requested additional funds to 

States and Tribal organizations in need rather than through the 

standard funds allocation formula. 

Furthermore, this proposal would prohibit States from approving 

any new vendors to the WIC program that derive more than 50 

percent of their income from WIC transactions. The rapid growth 

of WIC-only stores, vendors that exclusively or predominantly stock 

WIC-approved food items and serve only WIC participants, is placing tremendous pressure on program costs because WIC-only stores 

generally charge significantly higher prices than other authorized 

retailers. The number of WIC-only stores has increased by 50 percent in the past two years and accounts for nine percent of WIC 

transactions nationwide. 

The requested increase in budget authority would be fully offset 

by proposed reductions to other accounts within the Department of 

Agriculture, as described in accompanying amendments. 

6 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

DEPARTMENTAL ADMINISTRATION

AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS

FY 2005 Budget Appendix Page: 74 

FY 2005 Pending Request: $203,938,000 

Proposed Amendment: ¥$28,000,000 

Revised Request: $175,938,000 

This proposal would reduce by $28 million the funds requested 

in the Agriculture Buildings and Facilities and Rental Payments 

account for the South Buildings renovation. The reduction would 

partially offset a proposed increase to the Special Supplemental 

Nutrition Program for Women, Infants, and Children (WIC), as described in an accompanying amendment. 

7 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

FOREIGN ASSISTANCE PROGRAMS

PUBLIC LAW 480 TITLE I PROGRAM ACCOUNT

FY 2005 Budget Appendix Page: 171 

FY 2005 Pending Request: —

Proposed Amendment: ¥$205,000,000 

Revised Request: ¥$205,000,000 

(In the appropriations language under the above heading after 

the last paragraph, add the following new paragraph:) 

Of the unobligated balances available to the Foreign Agricultural 

Service for the Public Law 480 Title I Program at the beginning of 

fiscal year 2005, $205,000,000 is hereby canceled. 

This proposal would cancel a portion of the unobligated balance 

in the Public Law 480 Title I Program Account. Unobligated balances currently projected to be carried forward into FY 2005 are 

sufficient to cover current- and prior-year loan and grant program 

obligations. The reduction would partially offset a proposed increase to the Special Supplemental Nutrition Program for Women, 

Infants, and Children (WIC), as described in an accompanying 

amendment. 

8 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

FOOD AND NUTRITION SERVICE

FOOD STAMP PROGRAM

FY 2005 Budget Appendix Page: 175 

FY 2005 Pending Request: $33,641,798,000 

Proposed Amendment: ¥$6,000,000 

Revised Request: $33,635,798,000 

This proposal would reduce funding for performance measurement and program assessment in the pending FY 2005 discretionary request for the Food Stamp Program account by $6 million. 

The reduction would partially offset a proposed increase to the Special Supplemental Nutrition Program for Women, Infants, and 

Children (WIC), as described in an accompanying amendment. 

9 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

FOOD AND NUTRITION SERVICE

CHILD NUTRITION PROGRAMS

FY 2005 Budget Appendix Page: 176 

FY 2005 Pending Request: $11,380,557,000 

Proposed Amendment: ¥$4,000,000 

Revised Request: $11,376,557,000 

(In the appropriations language under the above heading, delete 

‘‘$11,380,557,000’’ and substitute $11,376,557,000; and delete 

‘‘$6,060,860,000’’ and substitute $6,056,860,000.) 

This proposal would reduce funding for performance measurement and program assessment in the pending FY 2005 discretionary request for the Child Nutrition Programs account by $4 

million. The reduction would partially offset a proposed increase to 

the Special Supplemental Nutrition Program for Women, Infants, 

and Children (WIC), as described in an accompanying amendment. 

10 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

TITLE VII—GENERAL PROVISIONS

FY 2005 Budget Appendix Page: 198 

FY 2005 Pending Request: — Proposed Amendment: ¥$13,000,000 

Revised Request: —

(In the appropriations language under the above heading, subsection (1) of section 724 is amended as follows:) 

(1) Delete the period at the end of the subsection and substitute 

; and; and 

(2) Add the following new subsection at the end: 

(m) a Farm and Ranch Lands Protection program authorized by 

16 U.S.C. 3838h–i, et seq., in excess of $112,000,000. 

This proposal would decrease the amount of funds available for 

the Farm and Ranch Lands Protection program by $13 million 

(from $125 million to $112 million). The reduction would partially 

offset a proposed increase to the Special Supplemental Nutrition 

Program for Women, Infants, and Children (WIC), as described in 

an accompanying amendment. 

11 

FY 2005 Budget Amendment 

DEPARTMENT OF AGRICULTURE 

TITLE VII—GENERAL PROVISIONS

FY 2005 Budget Appendix Page: 199 

FY 2005 Pending Request: ¥$44,000,000 

Proposed Amendment: ¥$44,000,000 

Revised Request: ¥$88,000,000 

(In the appropriations language under the above heading, section 

725 is amended by deleting ‘‘$44,000,000,’’ and substituting 

$88,000,000.) 

This proposal would further reduce the funds available in the 

Local Television Loan Guarantee Program account by $44 million. 

The reduction would partially offset a proposed increase to the Special Supplemental Nutrition Program for Women, Infants, and 

Children (WIC), as described in an accompanying amendment. 

12 

FY 2005 Budget Amendment 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

FY 2005 Budget Appendix Page: 423 

FY 2005 Pending Request: $6,022,833,000 

Proposed Amendment: Language 

Revised Request: $6,022,833,000 

(In the appropriations language under the above heading, add 

the following at the end of the ninth proviso:) 

, of which $57,500,000 shall be for supplemental treatment grants 

authorized by section 2618(a)(2)(I)(ii) of such Act 

This proposal would provide the Secretary of Health and Human 

Services (HHS) the flexibility to target resources to States with individuals with HIV/AIDS most in need of lifesaving medications. 

This amendment also would authorize the Secretary to exceed the 

three percent cap on AIDS Drug Assistance Program funding for 

those in severe need of medications by increasing the total resources available under the set-aside for severe need populations 

from $22.5 million to $57.5 million. 

The FY 2005 Budget provides the resources necessary to pay for 

lifesaving drugs each month to approximately 100,000 individuals 

who lack adequate health insurance or the financial resources necessary to cover the costs of medications. 

On June 23, 2004, the President announced the need to ensure 

that individuals with HIV/AIDS who have limited health insurance 

and financial resources have access to medications. At that time, 

the President stated that $20 million would be used to purchase 

medications in 10 States with HIV/AIDS waiting lists as of June 

21st (Alabama, Alaska, Colorado, Idaho, Iowa, Kentucky, Montana, 

North Carolina, South Dakota, and West Virginia). The $20 million 

would be derived from existing resources, and on June 30, 2004, 

the Secretary of HHS submitted a reprogramming letter to the 

Congress. 

13 

FY 2005 Budget Amendment 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

NATIONAL INSTITUTES OF HEALTH

FY 2005 Budget Appendix Page: 436 

FY 2005 Pending Request: $28,607,357,000 

Proposed Amendment: Language 

Revised Request: $28,607,357,000 

(In the appropriations language under the above heading, the following sections are amended:) 

(l) Under the ‘‘National Heart, Lung, and Blood Institute’’ section, delete ‘‘$2,963,953,000’’ and substitute $2,965,453,000; 

(2) Under the National Institute of Diabetes and Digestive and 

Kidney Diseases’’ section, delete ‘‘$1,726,196,000’’ and substitute 

$1,727,696,000; 

(3) Under the ‘‘National Institute of Neurological Disorders and 

Stroke’’ section, delete ‘‘$1,545,623,000’’ and substitute 

$1,547,123,000; and 

(4) Under the ‘‘National Cancer Institute’’ section, delete 

‘‘$4,870,025,000’’ and substitute $4,865,525,000; and insert the following at the end: 

In addition to the amounts provided herein for the Surveillance 

Epidemiology and End Results survey, $4,500,000 are available 

from amounts under section 241 of the Act to carry out such survey. 

This proposal would increase human stem cell research funding 

by reallocating $4.5 million in budget authority from the National 

Cancer Institute to be divided equally among the National Heart, 

Lung, and Blood Institute (NHLBI); the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK); and the National Institute of Neurological Disorders and Stroke (NINDS). The 

total discretionary budget authority proposed for the National Institutes of Health (NIH) in FY 2005 would not be affected by this 

amendment. 

The increase in NHLBI, NIDDK, and HINDS would support 

human stem cell translational research centers for diseases that 

could include diabetes, Parkinson’s disease, and spinal cord injury. 

The funds reallocated by the National Cancer Institute (NCI) 

would be restored within the overall request for NIH for evaluation 

activities through the use of the Secretary’s authority under Section 241 of the Public Health Service Act, which allows the allocation of a portion of the total amounts appropriated for programs 

under the Act to be used for this purpose. 

14 

FY 2005 Budget Amendment 

DEPARTMENT OF JUSTICE 

GENERAL ADMINISTRATION

DETENTION TRUSTEE

FY 2005 Budget Appendix Page: 666 

FY 2005 Pending Request: $938,810,000 

Proposed Amendment: $150,000,000 

Revised Request: $1,088,810,000 

This proposal would provide an additional $150 million to the Office of the Federal Detention Trustee to fund housing and related 

expenses of the increasing Federal detainee population housed in 

non-Federal facilities. This amendment would be fully offset by proposed reductions to other accounts within the Department of Justice, as described in accompanying amendments. 

15 

FY 2005 Budget Amendment 

DEPARTMENT OF JUSTICE 

GENERAL ADMINISTRATION

WORKING CAPITAL FUND

FY 2005 Budget Appendix Page: 668 

FY 2005 Pending Request:—

Proposed Amendment: ¥$60,000,000 

Revised Request: ¥$60,000,000 

(Under the above heading, insert the following appropriations 

language:) 

Of the unobligated balances available under this heading on September 30, 2004, $60,000,000 is hereby canceled. 

This proposal would decrease unobligated balance available for 

the Working Capital Fund by $60 million. The reduction would be 

used to partially offset a proposed increase in budget authority for 

the Detention Trustee account, as described in an accompanying 

amendment. 

16 

FY 2005 Budget Amendment 

DEPARTMENT OF JUSTICE 

LEGAL ACTIVITIES AND U.S. MARSHALS

LEGAL ACTIVITIES OFFICE AUTOMATION

FY 2005 Budget Appendix Page: 671 

FY 2005 Pending Request: $80,510,000 

Proposed Amendment: ¥$35,000,000 

Revised Request: $45,510,000 

This proposal would reduce by $35 million the pending FY 2005 

request for deployment of the Department of Justice’s Consolidated 

Office Network in the Bureau of Prisons, with no adverse programmatic impact. This reduction would be used to partially offset 

a proposed increase in budget authority for the Detention Trustee 

account, as described in an accompanying amendment. 

17 

FY 2005 Budget Amendment 

DEPARTMENT OF JUSTICE 

FEDERAL PRISON SYSTEM

BUILDING AND FACILITIES

FY 2005 Budget Appendix Page: 691 

FY 2005 Pending Request: —

Proposed Amendment: ¥$55,000,000 

Revised Request: ¥$55,000,000 

(Delete the brackets around the account title and insert the following language under the revised heading:) 

Of the unobligated balances available under this heading on September 30, 2004, $55,000,000 is hereby canceled. 

This proposal would cancel $55 million of the unobligated balance from resources previously provided for the medium security 

facility planned for Mendota, California. This reduction would be 

used to partially offset a proposed increase in budget authority for 

the Detention Trustee account, as described in an accompanying 

amendment. 

18 

FY 2005 Budget Amendment 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

COMMUNITY PLANNING AND DEVELOPMENT

HOMELESS ASSISTANCE GRANTS

FY 2005 Budget Appendix Page: 529 

FY 2005 Pending Request: $1,282,400,000 

Proposed Amendment: Language 

Revised Request: $1,282,400,000 

(In the appropriations language under the above heading, amend 

as follows:) 

(1) Delete ‘‘$1,282,400,000’’ and substitute $1,257,400,000; 

(2) Delete ‘‘; and of which $25,000,000 shall be for the Prisoner 

Re-Entry Initiative and shall remain available until expended’’; and 

(3) Add the following new paragraph at the end: 

In addition, $25,000,000 for fiscal year 2005, which shall be 

transferred to ‘‘Training and Employment Services,’’ Employment 

and Training Administration, Department of Labor, and shall be 

for the Prisoner Re-entry Initiative as established under that heading. 

This proposal would amend the Prisoner Re-entry Initiative 

(PRI) program in the Homeless Assistance Grant account by: (1) 

separating PRI funds from the total account appropriation to allow 

them to be used for a broader category of eligible recipients; (2) allowing PRI funds to be transferred from the Department of Housing and Urban Development (HUD) to the Department of Labor 

(DOL) for administration; and (3) changing the period of their 

availability from no year to one year, similar to DOL’s funding for 

this initiative. 

The 2005 Budget proposed a Prisoner Re-entry Initiative involving HUD, DOL, and the Department of Justice that will help individuals exiting prison make a successful transition to community 

life and long-term employment through job training and placement 

services, transitional housing assistance, and mentoring. 

This amendment would not increase the discretionary budget authority proposed in the FY 2005 Budget. 

19 

FY 2005 Budget Amendment 

DEPARTMENT OF JUSTICE 

OFFICE OF JUSTICE PROGRAMS

JUSTICE ASSISTANCE

FY 2005 Budget Appendix Pages: 693–694 

FY 2005 Pending Request: —

Proposed Amendment: Language 

Revised Request: —

(In the appropriations language under the above heading, delete 

the language in paragraph (2)(F) and substitute the following:) 

$15,000,000 for a Prisoner Re-entry Initiative: Provided further, 

That such sums shall be available for grants to faith and community-based organizations or for transfer to ‘‘Training and Employment Services,’’ Employment and Training Administration, Department of Labor, for the Prisoner Re-Entry Initiative as established 

under that heading; 

This proposal would amend the Prisoner Re-entry Initiative 

(PRI) program in the Justice Assistance account by: (1) referring to 

the intended purpose of the funds, which is the Prisoner Re-entry 

Initiative, rather than the previously authorized offender reentry 

initiative; and (2) making these funds available to carry out the 

PRI program and related activities through direct grants to faith 

and community-based organizations or for transfer to the Employment and Training Administration, Department of Labor (DOL), 

for the same purposes. 

The 2005 Budget proposed a Prisoner Re-entry Initiative involving the Department of Housing and Urban Development, DOL, and 

the Department of Justice that will help individuals exiting prison 

make a successful transition to community life and long-term employment through job training and placement services, transitional 

housing assistance, and mentoring. 

This amendment would not increase the discretionary budget authority proposed in the FY 2005 Budget. 

20 

FY 2005 Budget Amendment 

DEPARTMENT OF LABOR 

EMLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

FY 2005 Budget Appendix Page: 705 

FY 2005 Pending Request: $5,226,292,000 

Proposed Amendment: Language 

Revised Request: $5,226,292,000 

(In the appropriations language under the above heading, after 

‘‘$90,000,000’’, insert (which shall be available for obligation for the 

period October 1, 2004 through September 30, 2005), and after ‘‘the 

Prisoner Re-entry Initiative’’ insert and related activities.) 

This proposal would amend the Prisoner Re-entry Initiative 

(PRI) program in the Training and Employment Services account 

by: (1) making the funds available to carry out the Prisoner Reentry Initiative, but also ‘‘related activities’’ and (2) making the 

funds available for obligation October 1, 2004, through September 

30, 2005, rather than the original request of July 1, 2005, through 

June 30, 2006. 

The 2005 Budget proposed a Prisoner Re-entry Initiative involving HUD, DOL, and the Department of Justice that will help individuals exiting prison make a successful transition to community 

life and long-term employment through job training and placement 

services, transitional housing assistance, and mentoring. 

This amendment would not increase the discretionary budget authority proposed in the FY 2005 Budget. 

21 

FY 2005 Proposal 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

FEDERAL HOUSING ADMINISTRATION

GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

Under the heading, ‘‘General and Special Risk Program Account,’’

Federal Housing Administration, in title II of Division G of the 

Consolidated Appropriations Act, 2004 (Public Law 108–199; 118 

Stat. 386), delete from the first proviso ‘‘$25,000,000,000’’ and insert 

in lieu thereof ‘‘$29,000,000,000’’. 

This proposal would increase the loan commitment limit for the 

Federal Housing Administration (FHA) General and Special Risk 

Program Account by $4 billion, bringing the total limit for FY 2004 

to $29 billion. 

The General Insurance and Special Risk Insurance Funds (GI/ 

SRI) provide mortgage insurance for single family, multifamily, 

nursing home, and hospital loan programs. Current full-year projections, based on three quarters of the year, indicate commitments 

will reach a level close to that of the existing commitment limit of 

$25 billion. 

There is risk that the current limit could be reached before the 

end of FY 2004. The GI/SRI loan programs are highly responsive 

to changes in economic factors and real estate market forces. Unexpected increases in loan applications are possible. Additionally, direct endorsement of single family loans by FHA-approved lenders 

requires advance notice to halt commitment activity. The requested 

increase in commitment limit would provide greater assurance that 

disruption of loan processing due to exhaustion of commitment authority will be avoided. 

This proposal would produce negative credit subsidy receipts estimated to be $3 million in FY 2004 and $7 million in FY 2005. 

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