" ! HOUSE OF REPRESENTATIVES 110TH CONGRESS

2d Session 

REPORT

110–659 

CONCURRENT RESOLUTION ON THE 

BUDGET FOR FISCAL YEAR 2009 

CONFERENCE REPORT 

TO ACCOMPANY

S. CON. RES. 70 

MAY 20, 2008.—Ordered to be printed 


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CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009 


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U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

42–420 

" ! HOUSE OF REPRESENTATIVES 110TH CONGRESS

2d Session 

REPORT

2008

110–659 

CONCURRENT RESOLUTION ON THE 

BUDGET FOR FISCAL YEAR 2009 

CONFERENCE REPORT 

TO ACCOMPANY

S. CON. RES. 70 

MAY 20, 2008.—Ordered to be printed 


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110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–659 

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 

YEAR 2009 

MAY 20, 2008.—Ordered to be printed 

Mr. SPRATT, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany S. Con. Res. 70] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the House to the concurrent resolution (S. Con. Res. 70), setting forth the congressional budget for 

the United States Government for fiscal year 2009 and including 

the appropriate budgetary levels for fiscal years 2008 and 2010 

through 2013, having met, after full and free conference, have 

agreed to recommend and do recommend to their respective Houses 

as follows: 

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

follows: 

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

amendment, insert the following: 

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 

YEAR 2009. 

(a) DECLARATION.—Congress declares that this resolution is the 

concurrent resolution on the budget for fiscal year 2009 and that 

this resolution sets forth the appropriate budgetary levels for fiscal 

year 2008 and for fiscal years 2010 through 2013. 

(b) TABLE OF CONTENTS.— 

Sec. 1. Concurrent resolution on the budget for fiscal year 2009. 

TITLE I—RECOMMENDED LEVELS AND AMOUNTS 

Sec. 101. Recommended levels and amounts. 

Sec. 102. Social Security. 

Sec. 103. Postal Service discretionary administrative expenses. 

Sec. 104. Major functional categories. 


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TITLE II—RESERVE FUNDS 

Subtitle A—House Reserve Funds 

Sec. 201. Deficit-neutral reserve fund for SCHIP legislation. 

Sec. 202. Deficit-neutral reserve fund for America’s veterans and servicemembers. 

Sec. 203. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families. 

Sec. 204. Deficit-neutral reserve fund for infrastructure investment. 

Sec. 205. Deficit-neutral reserve fund for renewable energy and energy efficiency. 

Sec. 206. Deficit-neutral reserve fund for middle-income tax relief and economic equity. 

Sec. 207. Deficit-neutral reserve fund for reform of the alternative minimum tax. 

Sec. 208. Deficit-neutral reserve fund for higher education. 

Sec. 209. Deficit-neutral reserve fund for affordable housing. 

Sec. 210. Deficit-neutral reserve fund for Medicare improvements. 

Sec. 211. Deficit-neutral reserve fund for health care quality, effectiveness, and efficiency. 

Sec. 212. Deficit-neutral reserve fund for Medicaid and other programs. 

Sec. 213. Deficit-neutral reserve fund for a 9/11 health program. 

Sec. 214. Deficit-neutral reserve fund for trade adjustment assistance and unemployment insurance modernization. 

Sec. 215. Deficit-neutral reserve fund for county payments legislation. 

Sec. 216. Deficit-neutral reserve fund for San Joaquin River restoration and Navajo 

Nation water rights settlements. 

Sec. 217. Deficit-neutral reserve fund for the National Park Centennial Fund. 

Sec. 218. Deficit-neutral reserve fund for child support enforcement. 

Sec. 219. Deficit-neutral reserve fund for children and families. 

Sec. 220. Reserve fund adjustment for revenue measures in the House. 

Subtitle B—Senate Reserve Funds 

Sec. 221. Deficit-neutral reserve fund to strengthen and stimulate the American 

economy and provide economic relief to American families. 

Sec. 222. Deficit-neutral reserve fund for improving education. 

Sec. 223. Deficit-neutral reserve fund for investments in America’s infrastructure. 

Sec. 224. Deficit-neutral reserve fund to invest in clean energy, preserve the environment, and provide for certain settlements. 

Sec. 225. Deficit-neutral reserve fund for America’s veterans and servicemembers. 

Sec. 226. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families. 

Sec. 227. Deficit-neutral reserve fund to improve America’s health. 

Sec. 228. Deficit-neutral reserve fund for reform of the alternative minimum tax. 

Sec. 229. Deficit-neutral reserve fund for judicial pay and judgeships. 

Sec. 230. Deficit-neutral reserve fund for immigration enforcement and reform. 

Sec. 231. Deficit-neutral reserve fund for science parks. 

Sec. 232. Deficit-neutral reserve fund to terminate deductions from mineral revenue 

payments to States. 

Sec. 233. Deficit-reduction reserve fund for increased use of recovery audits. 

Sec. 234. Deficit-neutral reserve fund for food safety. 

Sec. 235. Deficit-neutral reserve fund for demonstration project regarding Medicaid 

coverage of low-income HIV-infected individuals. 

Sec. 236. Deficit-neutral reserve fund for reducing the income threshold for the refundable child tax credit, and other selected tax relief policies. 

Sec. 237. Deficit-neutral reserve fund for a 9/11 health program. 

TITLE III—BUDGET ENFORCEMENT 

Subtitle A—House Enforcement Provisions 

Sec. 301. Program integrity initiatives and other adjustments. 

Sec. 302. Point of order against advance appropriations. 

Subtitle B—Senate Enforcement Provisions 

Sec. 311. Senate point of order against legislation increasing long-term deficits. 

Sec. 312. Discretionary spending limits, program integrity initiatives, and other adjustments. 

Sec. 313. Point of order against advance appropriations. 

Sec. 314. Senate point of order against provisions of appropriations legislation that 

constitute changes in mandatory programs with net costs. 

Sec. 315. Senate point of order against legislation increasing short-term deficit. 


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Subtitle C—Other Provisions 

Sec. 321. Oversight of government performance. 

Sec. 322. Budgetary treatment of certain discretionary administrative expenses. 

Sec. 323. Application and effect of changes in allocations and aggregates. 

Sec. 324. Adjustments to reflect changes in concepts and definitions. 

Sec. 325. Exercise of rulemaking powers. 

TITLE IV—POLICY 

Sec. 401. Policy of the House on middle-income tax relief. 

Sec. 402. Policy on defense priorities. 

TITLE V—SENSE OF THE SENATE AND CONGRESS 

Subtitle A—Sense of the Senate 

Sec. 501. Sense of the Senate regarding Medicaid administrative regulations. 

Subtitle B—Sense of the Congress 

Sec. 511. Sense of the Congress on servicemembers’ and veterans’ health care and 

other priorities. 

Sec. 512. Sense of the Congress on homeland security. 

Sec. 513. Sense of the Congress regarding long-term fiscal reform. 

Sec. 514. Sense of the Congress regarding waste, fraud, and abuse. 

Sec. 515. Sense of the Congress regarding extension of the statutory pay-as-you-go 

rule. 

Sec. 516. Sense of the Congress on long-term budgeting. 

Sec. 517. Sense of the Congress regarding affordable health coverage. 

Sec. 518. Sense of the Congress regarding pay parity. 

Sec. 519. Sense of the Congress regarding subprime lending and foreclosures. 

Sec. 520. Sense of the Congress regarding the need to maintain and build upon efforts to fight hunger. 

Sec. 521. Sense of the Congress regarding the importance of child support enforcement. 

Sec. 522. Sense of the Congress on the Innovation Agenda and America COMPETES 

Act. 

TITLE I—RECOMMENDED LEVELS AND AMOUNTS 

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS. 

The following budgetary levels are appropriate for each of fiscal 

years 2008 through 2013: 

(1) FEDERAL REVENUES.—For purposes of the enforcement 

of this resolution: 

(A) The recommended levels of Federal revenues are as 

follows: 

Fiscal year 2008: $1,875,392,000,000. 

Fiscal year 2009: $2,029,612,000,000. 

Fiscal year 2010: $2,204,652,000,000. 

Fiscal year 2011: $2,413,249,000,000. 

Fiscal year 2012: $2,506,049,000,000. 

Fiscal year 2013: $2,626,582,000,000. 

(B) The amounts by which the aggregate levels of Federal revenues should be changed are as follows: 

Fiscal year 2008: ¥$4,000,000,000. 

Fiscal year 2009: ¥$67,755,000,000. 

Fiscal year 2010: $21,270,000,000. 

Fiscal year 2011: ¥$14,824,000,000. 

Fiscal year 2012: ¥$151,572,000,000. 

Fiscal year 2013: ¥$123,689,000,000. 

(2) NEW BUDGET AUTHORITY.—For purposes of the enforcement of this resolution, the appropriate levels of total new budget authority are as follows: 

Fiscal year 2008: $2,563,262,000,000. 


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Fiscal year 2009: $2,530,703,000,000. 

Fiscal year 2010: $2,562,856,000,000. 

Fiscal year 2011: $2,693,843,000,000. 

Fiscal year 2012: $2,736,865,000,000. 

Fiscal year 2013: $2,868,813,000,000. 

(3) BUDGET OUTLAYS.—For purposes of the enforcement of 

this resolution, the appropriate levels of total budget outlays are 

as follows: Fiscal year 2008: $2,465,711,000,000. 

Fiscal year 2009: $2,565,903,000,000. 

Fiscal year 2010: $2,621,939,000,000. 

Fiscal year 2011: $2,712,795,000,000. 

Fiscal year 2012: $2,722,056,000,000. 

Fiscal year 2013: $2,860,225,000,000. 

(4) DEFICITS (ON-BUDGET).—For purposes of the enforcement of this resolution, the amounts of the deficits (on-budget) 

are as follows: Fiscal year 2008: $590,319,000,000. 

Fiscal year 2009: $536,291,000,000. 

Fiscal year 2010: $417,287,000,000. 

Fiscal year 2011: $299,546,000,000. 

Fiscal year 2012: $216,007,000,000. 

Fiscal year 2013: $233,643,000,000. 

(5) DEBT SUBJECT TO LIMIT.—Pursuant to section 301(a)(5) 

of the Congressional Budget Act of 1974, the appropriate levels 

of the public debt are as follows: Fiscal year 2008: $9,575,000,000,000. 

Fiscal year 2009: $10,207,000,000,000. 

Fiscal year 2010: $10,732,000,000,000. 

Fiscal year 2011: $11,137,000,000,000. 

Fiscal year 2012: $11,484,000,000,000. 

Fiscal year 2013: $11,832,000,000,000. 

(6) DEBT HELD BY THE PUBLIC.—The appropriate levels of 

debt held by the public are as follows: Fiscal year 2008: $5,404,000,000,000. 

Fiscal year 2009: $5,761,000,000,000. 

Fiscal year 2010: $5,989,000,000,000. 

Fiscal year 2011: $6,080,000,000,000. 

Fiscal year 2012: $6,075,000,000,000. 

Fiscal year 2013: $6,081,000,000,000. 

SEC. 102. SOCIAL SECURITY. 

(a) SOCIAL SECURITY REVENUES.—For purposes of Senate enforcement under sections 302 and 311 of the Congressional Budget 

Act of 1974, the amounts of revenues of the Federal Old-Age and 

Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows: 

Fiscal year 2008: $666,706,000,000. 

Fiscal year 2009: $695,870,000,000. 

Fiscal year 2010: $733,562,000,000. 

Fiscal year 2011: $772,459,000,000. 

Fiscal year 2012: $809,789,000,000. 

Fiscal year 2013: $845,034,000,000. 

(b) SOCIAL SECURITY OUTLAYS.—For purposes of Senate enforcement under sections 302 and 311 of the Congressional Budget 

Act of 1974, the amounts of outlays of the Federal Old-Age and SurVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00008 Fmt 6659 Sfmt 6603 E:\HR\OC\HR659.XXX HR659

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vivors Insurance Trust Fund and the Federal Disability Insurance 

Trust Fund are as follows: 

Fiscal year 2008: $463,746,000,000. 

Fiscal year 2009: $493,602,000,000. 

Fiscal year 2010: $520,149,000,000. 

Fiscal year 2011: $540,478,000,000. 

Fiscal year 2012: $566,240,000,000. 

Fiscal year 2013: $595,534,000,000. 

(c) SOCIAL SECURITY ADMINISTRATIVE EXPENSES.—In the Senate, the amounts of new budget authority and budget outlays of the 

Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund for administrative expenses 

are as follows: 

Fiscal year 2008: 

(A) New budget authority, $5,010,000,000. 

(B) Outlays, $4,944,000,000. 

Fiscal year 2009: 

(A) New budget authority, $5,233,000,000. 

(B) Outlays, $5,160,000,000. 

Fiscal year 2010: 

(A) New budget authority, $5,359,000,000. 

(B) Outlays, $5,332,000,000. 

Fiscal year 2011: 

(A) New budget authority, $5,500,000,000. 

(B) Outlays, $5,475,000,000. 

Fiscal year 2012: 

(A) New budget authority, $5,653,000,000. 

(B) Outlays, $5,626,000,000. 

Fiscal year 2013: 

(A) New budget authority, $5,817,000,000. 

(B) Outlays, $5,789,000,000. 

SEC. 103. POSTAL SERVICE DISCRETIONARY ADMINISTRATIVE EXPENSES. 

In the Senate, the amounts of new budget authority and budget 

outlays of the Postal Service for discretionary administrative expenses are as follows: 

Fiscal year 2008: 

(A) New budget authority, $250,000,000. 

(B) Outlays, $237,000,000. 

Fiscal year 2009: 

(A) New budget authority, $258,000,000. 

(B) Outlays, $258,000,000. 

Fiscal year 2010: 

(A) New budget authority, $267,000,000. 

(B) Outlays, $267,000,000. 

Fiscal year 2011: 

(A) New budget authority, $275,000,000. 

(B) Outlays, $275,000,000. 

Fiscal year 2012: 

(A) New budget authority, $284,000,000. 

(B) Outlays, $284,000,000. 

Fiscal year 2013: 

(A) New budget authority, $293,000,000. 

(B) Outlays, $293,000,000. 


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SEC. 104. MAJOR FUNCTIONAL CATEGORIES. 

The Congress determines and declares that the appropriate levels of new budget authority and outlays for fiscal years 2008 

through 2013 for each major functional category are: 

(1) National Defense (050): 

Fiscal year 2008: 

(A) New budget authority, $590,686,000,000. 

(B) Outlays, $576,173,000,000. 

Fiscal year 2009: 

(A) New budget authority, $542,497,000,000. 

(B) Outlays, $573,362,000,000. 

Fiscal year 2010: (A) New budget authority, $550,414,000,000. 

(B) Outlays, $560,726,000,000. 

Fiscal year 2011: (A) New budget authority, $557,026,000,000. 

(B) Outlays, $560,099,000,000. 

Fiscal year 2012: 

(A) New budget authority, $565,800,000,000. 

(B) Outlays, $556,699,000,000. 

Fiscal year 2013: 

(A) New budget authority, $576,233,000,000. 

(B) Outlays, $568,829,000,000. 

(2) International Affairs (150): 

Fiscal year 2008: 

(A) New budget authority, $32,648,000,000. 

(B) Outlays, $32,843,000,000. 

Fiscal year 2009: 

(A) New budget authority, $37,158,000,000. 

(B) Outlays, $35,749,000,000. 

Fiscal year 2010: 

(A) New budget authority, $37,901,000,000. 

(B) Outlays, $36,591,000,000. 

Fiscal year 2011: (A) New budget authority, $38,221,000,000. 

(B) Outlays, $36,864,000,000. 

Fiscal year 2012: (A) New budget authority, $38,491,000,000. 

(B) Outlays, $36,824,000,000. 

Fiscal year 2013: (A) New budget authority, $38,451,000,000. 

(B) Outlays, $36,537,000,000. 

(3) General Science, Space, and Technology (250): 

Fiscal year 2008: (A) New budget authority, $27,407,000,000. 

(B) Outlays, $26,456,000,000. 

Fiscal year 2009: (A) New budget authority, $30,639,000,000. 

(B) Outlays, $29,072,000,000. 

Fiscal year 2010: (A) New budget authority, $31,701,000,000. 

(B) Outlays, $31,192,000,000. 

Fiscal year 2011: 

(A) New budget authority, $32,863,000,000. 

(B) Outlays, $32,642,000,000. 


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Fiscal year 2012: (A) New budget authority, $34,115,000,000. 

(B) Outlays, $33,891,000,000. 

Fiscal year 2013: (A) New budget authority, $35,450,000,000. 

(B) Outlays, $34,694,000,000. 

(4) Energy (270): 

Fiscal year 2008: (A) New budget authority, $3,550,000,000. 

(B) Outlays, $1,681,000,000. 

Fiscal year 2009: (A) New budget authority, $6,514,000,000. 

(B) Outlays, $2,795,000,000. 

Fiscal year 2010: (A) New budget authority, $6,615,000,000. 

(B) Outlays, $4,092,000,000. 

Fiscal year 2011: (A) New budget authority, $6,450,000,000. 

(B) Outlays, $4,969,000,000. 

Fiscal year 2012: (A) New budget authority, $6,550,000,000. 

(B) Outlays, $5,417,000,000. 

Fiscal year 2013: (A) New budget authority, $6,474,000,000. 

(B) Outlays, $5,659,000,000. 

(5) Natural Resources and Environment (300): 

Fiscal year 2008: (A) New budget authority, $33,169,000,000. 

(B) Outlays, $34,723,000,000. 

Fiscal year 2009: (A) New budget authority, $40,515,000,000. 

(B) Outlays, $36,868,000,000. 

Fiscal year 2010: (A) New budget authority, $35,278,000,000. 

(B) Outlays, $37,472,000,000. 

Fiscal year 2011: 

(A) New budget authority, $36,307,000,000. 

(B) Outlays, $37,865,000,000. 

Fiscal year 2012: 

(A) New budget authority, $37,396,000,000. 

(B) Outlays, $38,356,000,000. 

Fiscal year 2013: 

(A) New budget authority, $38,033,000,000. 

(B) Outlays, $38,923,000,000. 

(6) Agriculture (350): 

Fiscal year 2008: 

(A) New budget authority, $24,296,000,000. 

(B) Outlays, $22,179,000,000. 

Fiscal year 2009: 

(A) New budget authority, $22,572,000,000. 

(B) Outlays, $22,312,000,000. 

Fiscal year 2010: 

(A) New budget authority, $22,145,000,000. 

(B) Outlays, $21,241,000,000. 

Fiscal year 2011: 


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(A) New budget authority, $22,026,000,000. 

(B) Outlays, $21,022,000,000. 

Fiscal year 2012: (A) New budget authority, $20,889,000,000. 

(B) Outlays, $17,463,000,000. 

Fiscal year 2013: (A) New budget authority, $22,304,000,000. 

(B) Outlays, $21,606,000,000. 

(7) Commerce and Housing Credit (370): 

Fiscal year 2008: (A) New budget authority, $11,216,000,000. 

(B) Outlays, $5,381,000,000. 

Fiscal year 2009: (A) New budget authority, $9,560,000,000. 

(B) Outlays, $3,722,000,000. 

Fiscal year 2010: (A) New budget authority, $13,887,000,000. 

(B) Outlays, $5,835,000,000. 

Fiscal year 2011: (A) New budget authority, $8,998,000,000. 

(B) Outlays, $2,193,000,000. 

Fiscal year 2012: (A) New budget authority, $9,246,000,000. 

(B) Outlays, $1,735,000,000. 

Fiscal year 2013: (A) New budget authority, $9,642,000,000. 

(B) Outlays, $1,648,000,000. 

(8) Transportation (400): 

Fiscal year 2008: (A) New budget authority, $80,189,000,000. 

(B) Outlays, $77,795,000,000. 

Fiscal year 2009: (A) New budget authority, $74,682,000,000. 

(B) Outlays, $80,781,000,000. 

Fiscal year 2010: 

(A) New budget authority, $77,999,000,000. 

(B) Outlays, $84,318,000,000. 

Fiscal year 2011: 

(A) New budget authority, $78,900,000,000. 

(B) Outlays, $86,468,000,000. 

Fiscal year 2012: 

(A) New budget authority, $79,741,000,000. 

(B) Outlays, $88,453,000,000. 

Fiscal year 2013: 

(A) New budget authority, $80,641,000,000. 

(B) Outlays, $90,675,000,000. 

(9) Community and Regional Development (450): 

Fiscal year 2008: 

(A) New budget authority, $20,149,000,000. 

(B) Outlays, $27,820,000,000. 

Fiscal year 2009: 

(A) New budget authority, $15,220,000,000. 

(B) Outlays, $24,401,000,000. 

Fiscal year 2010: 

(A) New budget authority, $15,376,000,000. 


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(B) Outlays, $22,109,000,000. 

Fiscal year 2011: (A) New budget authority, $15,603,000,000. 

(B) Outlays, $18,330,000,000. 

Fiscal year 2012: (A) New budget authority, $15,840,000,000. 

(B) Outlays, $16,301,000,000. 

Fiscal year 2013: (A) New budget authority, $16,007,000,000. 

(B) Outlays, $15,986,000,000. 

(10) Education, Training, Employment, and Social Services 

(500): 

Fiscal year 2008: (A) New budget authority, $90,077,000,000. 

(B) Outlays, $90,729,000,000. 

Fiscal year 2009: (A) New budget authority, $94,277,000,000. 

(B) Outlays, $91,351,000,000. 

Fiscal year 2010: (A) New budget authority, $103,716,000,000. 

(B) Outlays, $99,477,000,000. 

Fiscal year 2011: (A) New budget authority, $105,910,000,000. 

(B) Outlays, $103,453,000,000. 

Fiscal year 2012: (A) New budget authority, $107,399,000,000. 

(B) Outlays, $103,992,000,000. 

Fiscal year 2013: (A) New budget authority, $100,625,000,000. 

(B) Outlays, $102,451,000,000. 

(11) Health (550): 

Fiscal year 2008: (A) New budget authority, $285,601,000,000. 

(B) Outlays, $287,188,000,000. 

Fiscal year 2009: 

(A) New budget authority, $310,260,000,000. 

(B) Outlays, $307,474,000,000. 

Fiscal year 2010: 

(A) New budget authority, $325,344,000,000. 

(B) Outlays, $325,681,000,000. 

Fiscal year 2011: 

(A) New budget authority, $345,817,000,000. 

(B) Outlays, $345,055,000,000. 

Fiscal year 2012: 

(A) New budget authority, $368,395,000,000. 

(B) Outlays, $367,257,000,000. 

Fiscal year 2013: 

(A) New budget authority, $393,337,000,000. 

(B) Outlays, $391,872,000,000. 

(12) Medicare (570): 

Fiscal year 2008: 

(A) New budget authority, $390,458,000,000. 

(B) Outlays, $390,454,000,000. 

Fiscal year 2009: 

(A) New budget authority, $420,191,000,000. 


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(B) Outlays, $419,974,000,000. 

Fiscal year 2010: (A) New budget authority, $445,207,000,000. 

(B) Outlays, $445,333,000,000. 

Fiscal year 2011: (A) New budget authority, $494,337,000,000. 

(B) Outlays, $494,162,000,000. 

Fiscal year 2012: (A) New budget authority, $491,305,000,000. 

(B) Outlays, $491,065,000,000. 

Fiscal year 2013: (A) New budget authority, $552,329,000,000. 

(B) Outlays, $552,445,000,000. 

(13) Income Security (600): 

Fiscal year 2008: (A) New budget authority, $389,926,000,000. 

(B) Outlays, $394,161,000,000. 

Fiscal year 2009: (A) New budget authority, $415,547,000,000. 

(B) Outlays, $416,039,000,000. 

Fiscal year 2010: (A) New budget authority, $420,430,000,000. 

(B) Outlays, $420,710,000,000. 

Fiscal year 2011: (A) New budget authority, $429,946,000,000. 

(B) Outlays, $429,463,000,000. 

Fiscal year 2012: (A) New budget authority, $416,447,000,000. 

(B) Outlays, $416,044,000,000. 

Fiscal year 2013: (A) New budget authority, $432,148,000,000. 

(B) Outlays, $431,699,000,000. 

(14) Social Security (650): 

Fiscal year 2008: 

(A) New budget authority, $19,378,000,000. 

(B) Outlays, $19,378,000,000. 

Fiscal year 2009: 

(A) New budget authority, $21,313,000,000. 

(B) Outlays, $21,313,000,000. 

Fiscal year 2010: 

(A) New budget authority, $23,803,000,000. 

(B) Outlays, $23,803,000,000. 

Fiscal year 2011: 

(A) New budget authority, $27,338,000,000. 

(B) Outlays, $27,338,000,000. 

Fiscal year 2012: 

(A) New budget authority, $30,349,000,000. 

(B) Outlays, $30,349,000,000. 

Fiscal year 2013: 

(A) New budget authority, $33,170,000,000. 

(B) Outlays, $33,170,000,000. 

(15) Veterans Benefits and Services (700): 

Fiscal year 2008: 

(A) New budget authority, $86,365,000,000. 

(B) Outlays, $83,551,000,000. 


ccoleman on PRODPC75 with HEARING
11 

Fiscal year 2009: (A) New budget authority, $93,320,000,000. 

(B) Outlays, $92,486,000,000. 

Fiscal year 2010: (A) New budget authority, $96,233,000,000. 

(B) Outlays, $95,912,000,000. 

Fiscal year 2011: (A) New budget authority, $102,038,000,000. 

(B) Outlays, $101,706,000,000. 

Fiscal year 2012: (A) New budget authority, $99,359,000,000. 

(B) Outlays, $98,511,000,000. 

Fiscal year 2013: (A) New budget authority, $105,344,000,000. 

(B) Outlays, $104,513,000,000. 

(16) Administration of Justice (750): 

Fiscal year 2008: (A) New budget authority, $46,237,000,000. 

(B) Outlays, $44,282,000,000. 

Fiscal year 2009: (A) New budget authority, $48,303,000,000. 

(B) Outlays, $48,097,000,000. 

Fiscal year 2010: (A) New budget authority, $48,673,000,000. 

(B) Outlays, $49,291,000,000. 

Fiscal year 2011: (A) New budget authority, $49,348,000,000. 

(B) Outlays, $49,763,000,000. 

Fiscal year 2012: (A) New budget authority, $50,139,000,000. 

(B) Outlays, $50,172,000,000. 

Fiscal year 2013: (A) New budget authority, $51,051,000,000. 

(B) Outlays, $50,767,000,000. 

(17) General Government (800): 

Fiscal year 2008: 

(A) New budget authority, $56,407,000,000. 

(B) Outlays, $56,920,000,000. 

Fiscal year 2009: 

(A) New budget authority, $23,987,000,000. 

(B) Outlays, $24,411,000,000. 

Fiscal year 2010: 

(A) New budget authority, $19,929,000,000. 

(B) Outlays, $19,974,000,000. 

Fiscal year 2011: 

(A) New budget authority, $20,470,000,000. 

(B) Outlays, $20,369,000,000. 

Fiscal year 2012: 

(A) New budget authority, $21,004,000,000. 

(B) Outlays, $21,026,000,000. 

Fiscal year 2013: 

(A) New budget authority, $21,463,000,000. 

(B) Outlays, $21,251,000,000. 

(18) Net Interest (900): 

Fiscal year 2008: 


ccoleman on PRODPC75 with HEARING
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(A) New budget authority, $349,351,000,000. 

(B) Outlays, $349,351,000,000. 

Fiscal year 2009: (A) New budget authority, $334,409,000,000. 

(B) Outlays, $334,409,000,000. 

Fiscal year 2010: (A) New budget authority, $370,805,000,000. 

(B) Outlays, $370,805,000,000. 

Fiscal year 2011: (A) New budget authority, $407,916,000,000. 

(B) Outlays, $407,916,000,000. 

Fiscal year 2012: (A) New budget authority, $433,193,000,000. 

(B) Outlays, $433,193,000,000. 

Fiscal year 2013: (A) New budget authority, $448,812,000,000. 

(B) Outlays, $448,812,000,000. 

(19) Allowances (920): 

Fiscal year 2008: (A) New budget authority, $4,426,000,000. 

(B) Outlays, $2,075,000,000. 

Fiscal year 2009: 

(A) New budget authority, ¥$13,201,000,000. 

(B) Outlays, ¥$6,462,000,000. 

Fiscal year 2010: 

(A) New budget authority, ¥$11,955,000,000. 

(B) Outlays, ¥$9,385,000,000. 

Fiscal year 2011: 

(A) New budget authority, ¥$12,307,000,000. 

(B) Outlays, ¥$11,769,000,000. 

Fiscal year 2012: 

(A) New budget authority, ¥$12,689,000,000. 

(B) Outlays, ¥$13,764,000,000. 

Fiscal year 2013: 

(A) New budget authority, ¥$13,000,000,000. 

(B) Outlays, ¥$13,396,000,000. 

(20) Undistributed Offsetting Receipts (950): 

Fiscal year 2008: 

(A) New budget authority, ¥$86,330,000,000. 

(B) Outlays, ¥$86,330,000,000. 

Fiscal year 2009: 

(A) New budget authority, ¥$67,060,000,000. 

(B) Outlays, ¥$67,060,000,000. 

Fiscal year 2010: 

(A) New budget authority, ¥$70,645,000,000. 

(B) Outlays, ¥$70,645,000,000. 

Fiscal year 2011: 

(A) New budget authority, ¥$73,364,000,000. 

(B) Outlays, ¥$73,364,000,000. 

Fiscal year 2012: 

(A) New budget authority, ¥$76,104,000,000. 

(B) Outlays, ¥$76,104,000,000. 

Fiscal year 2013: 

(A) New budget authority, ¥$79,691,000,000. 

(B) Outlays, ¥$79,691,000,000. 


ccoleman on PRODPC75 with HEARING
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(21) Overseas Deployments and Other Activities (970): 

Fiscal year 2008: (A) New budget authority, $108,056,000,000. 

(B) Outlays, $28,901,000,000. 

Fiscal year 2009: (A) New budget authority, $70,000,000,000. 

(B) Outlays, $74,809,000,000. 

Fiscal year 2010: (A) New budget authority, $0. 

(B) Outlays, $47,407,000,000. 

Fiscal year 2011: (A) New budget authority, $0. 

(B) Outlays, $18,251,000,000. 

Fiscal year 2012: (A) New budget authority, $0. 

(B) Outlays, $5,176,000,000. 

Fiscal year 2013: (A) New budget authority, $0. 

(B) Outlays, $1,775,000,000. 

TITLE II—RESERVE FUNDS 

Subtitle A—House Reserve Funds 

SEC. 201. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations of a committee or committees, aggregates, 

and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report, which contains matter 

within the jurisdiction of the Committee on Energy and Commerce 

that expands coverage and improves children’s health through the 

State Children’s Health Insurance Program (SCHIP) under title 

XXI of the Social Security Act and the program under title XIX of 

such Act (commonly known as Medicaid) and that increases new 

budget authority that will result in no more than $50,000,000,000 

in outlays in fiscal years 2008 through 2013, and others which contain offsets so designated for the purpose of this section within the 

jurisdiction of another committee or committees, if the combined 

changes would not increase the deficit or decrease the surplus for 

the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. 

SEC. 202. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA’S VETERANS AND SERVICEMEMBERS. 

The Chairman of the House Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that 

would— (1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or 

veterans (including measures to expedite the claims process); 

(2) maintain affordable health care for military retirees 

and veterans; 

(3) expand the number of disabled military retirees who receive both disability compensation and retired pay, or would accelerate the date by which eligible retirees under section 1414 


ccoleman on PRODPC75 with HEARING
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of title 10, United States Code, will fully receive both veterans’

disability compensation and retired pay; 

(4) eliminate the offset between Survivor Benefit Plan annuities and Veterans’ Dependency and Indemnity Compensation; 

(5) provide for the continuing payment to members of the 

Armed Forces who are retired or separated from the Armed 

Forces due to a combat-related injury after September 11, 2001, 

of bonuses that such members were entitled to before the retirement or separation and would continue to be entitled to if such 

members were not retired or separated; 

(6) enhance programs and activities to increase the availability of health care and other veterans services for veterans 

living in rural areas; or 

(7) provide or increase benefits for Filipino veterans of 

World War II or their survivors and dependents 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit or decrease 

the surplus for the period of fiscal years 2008 through 2013 or for 

the period of fiscal years 2008 through 2018. 

SEC. 203. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS FOR SERVICEMEMBERS, VETERANS, AND THEIR FAMILIES. 

The Chairman of the House Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that 

would—

(1) enhance educational benefits or assistance for 

servicemembers and veterans with service on active duty in the 

Armed Forces on or after September 11, 2001; 

(2) allow for the transfer of education benefits from 

servicemembers to spouses, survivors, or dependents; or 

(3) otherwise enhance education benefits or assistance for 

servicemembers (including Active Duty, National Guard, and 

Reserve), veterans, or their spouses, survivors, or dependents 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit or decrease 

the surplus over either the period of fiscal years 2008 through 2013 

or the period of fiscal years 2008 through 2018. 

SEC. 204. DEFICIT-NEUTRAL RESERVE FUND FOR INFRASTRUCTURE 

INVESTMENT. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for a robust Federal investment in 

America’s infrastructure, which may include projects for transit, 

rail (including high-speed passenger rail), airport, seaport, public 

housing, energy, water, highway, bridge, or other infrastructure 

projects by the amounts provided in such measure if such measure 

would not increase the deficit or decrease the surplus for the period 

of fiscal years 2008 through 2013 or for the period of fiscal years 

2008 through 2018. 


ccoleman on PRODPC75 with HEARING
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SEC. 205. DEFICIT-NEUTRAL RESERVE FUND FOR RENEWABLE ENERGY 

AND ENERGY EFFICIENCY. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides tax incentives for or otherwise encourages the production of renewable energy or increased energy efficiency; encourages investment in emerging energy or vehicle technologies or carbon capture and sequestration; provides for reductions in greenhouse gas emissions; or facilitates the training of 

workers for these industries (‘‘green collar jobs’’) by the amounts 

provided in such measure if such measure would not increase the 

deficit or decrease the surplus for the period of fiscal years 2008 

through 2013 or for the period of fiscal years 2008 through 2018. 

SEC. 206. DEFICIT-NEUTRAL RESERVE FUND FOR MIDDLE-INCOME TAX 

RELIEF AND ECONOMIC EQUITY. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for tax relief for middle-income families 

and taxpayers or enhanced economic equity, such as extension of the 

child tax credit, extension of marriage penalty relief, extension of the 

10 percent individual income tax bracket, elimination of estate taxes 

on all but a minute fraction of estates by reforming and substantially increasing the unified credit, extension of the research and experimentation tax credit, extension of the deduction for small business expensing, extension of the deduction for State and local sales 

taxes, or a tax credit for school construction bonds, by the amounts 

provided in such measure if such measure would not increase the 

deficit or decrease the surplus for the period of fiscal years 2008 

through 2013 or for the period of fiscal years 2008 through 2018. 

SEC. 207. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE ALTERNATIVE MINIMUM TAX. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for reform of the Internal Revenue Code 

of 1986 by reducing the tax burden of the alternative minimum tax 

on middle-income families by the amounts provided in such measure if such measure would not increase the deficit or decrease the 

surplus for the period of fiscal years 2008 through 2013 or for the 

period of fiscal years 2008 through 2018. 

SEC. 208. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that makes college more affordable or accessible 

through reforms to the Higher Education Act of 1965 or other legislation by the amounts provided in such measure if such measure 

would not increase the deficit or decrease the surplus for the period 

of fiscal years 2008 through 2013 or for the period of fiscal years 

2008 through 2018. 


ccoleman on PRODPC75 with HEARING
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SEC. 209. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE HOUSING. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for an affordable housing fund, offset by 

reforming the regulation of certain government-sponsored enterprises, by the amounts provided in such measure if such measure 

would not increase the deficit or decrease the surplus for the period 

of fiscal years 2008 through 2013 or for the period of fiscal years 

2008 through 2018. 

SEC. 210. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE IMPROVEMENTS. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that improves the Medicare program for beneficiaries 

and protects access to care, which may include measures such as—

(1) increasing the reimbursement rate for physicians while 

protecting beneficiaries from associated premium increases; 

(2) providing for—

(A) an increase in the asset allowance under the Medicare Part D low-income subsidy program so that individuals with very limited incomes, but modest retirement savings, can obtain the assistance that the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 

was intended to deliver with respect to the payment of premiums and cost-sharing under the Medicare Part D prescription drug benefit; 

(B) an update in the income and asset allowances 

under the Medicare Savings Program and an annual inflationary adjustment for those allowances; or 

(C) improved outreach and enrollment under the Medicare Savings Program and the Medicare Part D low-income 

subsidy program to ensure that low-income senior citizens 

and other low-income Medicare beneficiaries receive the 

low-income assistance for which they are eligible in accordance with the improvements provided for in such legislation; 

(3) reductions in beneficiary cost-sharing for preventive 

benefits under Medicare Part B; or 

(4) limiting inappropriate or abusive marketing tactics by 

private insurers and their agents offering Medicare Advantage 

or Medicare prescription drug plans 

by the amounts provided in such measure if such measure would 

not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 

through 2018. 

SEC. 211. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH CARE QUALITY, EFFECTIVENESS, AND EFFICIENCY. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that—


ccoleman on PRODPC75 with HEARING
17 

(1) provides incentives or other support for adoption of 

modern information technology, including electronic prescribing, to improve quality and protect privacy in health care; 

(2) establishes a new Federal or public-private initiative for 

research on the comparative effectiveness of different medical 

interventions; 

(3) provides parity between health insurance coverage of 

mental health benefits and benefits for medical and surgical 

services, including parity in public programs; 

(4) improves health care, provides quality health insurance 

for the uninsured and underinsured, and protects individuals 

with current health coverage; or 

(5) reauthorizes the special diabetes program for Indians 

and the special diabetes programs for Type 1 diabetes 

by the amounts provided in such measure if such measure would 

not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 

through 2018. 

SEC. 212. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICAID AND 

OTHER PROGRAMS. 

(a) REGULATIONS AND ADMINISTRATIVE ACTIONS.—In the 

House, the Chairman of the Committee on the Budget may revise 

the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report 

that prevents or delays the implementation or administration of regulations or other administrative actions that would affect the Medicaid, SCHIP, or other programs by the amounts provided in such 

measure if such measure would not increase the deficit or decrease 

the surplus for the period of fiscal years 2008 through 2013 or for 

the period of fiscal years 2008 through 2018. 

(b) TRANSITIONAL MEDICAL ASSISTANCE AND QUALIFYING INDIVIDUALS.—In the House, the Chairman of the Committee on the 

Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that extends the transitional medical assistance program or the qualifying individuals program, which are 

included in title XIX of the Social Security Act, by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 

through 2013 or for the period of fiscal years 2008 through 2018. 

(c) DEMONSTRATION PROJECT REGARDING MEDICAID COVERAGE

OF LOW-INCOME HIV-INFECTED INDIVIDUALS.—In the House, the 

Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for 

any bill, joint resolution, amendment, or conference report that provides for a demonstration project under which a State may apply 

under section 1115 of the Social Security Act (42 U.S.C. 1315) to 

provide medical assistance under a State Medicaid program to HIVinfected individuals who are not eligible for medical assistance 

under such program under section 1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)) by the amounts provided in 

such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 

or for the period of fiscal years 2008 through 2018. 


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(d) PEDIATRIC DENTAL CARE.—In the House, the Chairman of 

the Committee on the Budget may revise the allocations, aggregates, 

and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that would provide for improved access to pediatric dental care for children from low-income 

families by the amounts provided in such measure if such measure 

would not increase the deficit or decrease the surplus for the period 

of fiscal years 2008 through 2013 or for the period of fiscal years 

2008 through 2018. 

SEC. 213. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH PROGRAM. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that would establish a program, including medical 

monitoring and treatment, addressing the adverse health impacts 

linked to the September 11, 2001, attacks by the amounts provided 

in such measure if such measure would not increase the deficit or 

decrease the surplus for the period of fiscal years 2008 through 2013 

or for the period of fiscal years 2008 through 2018. 

SEC. 214. DEFICIT-NEUTRAL RESERVE FUND FOR TRADE ADJUSTMENT 

ASSISTANCE AND UNEMPLOYMENT INSURANCE MODERNIZATION. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that reauthorizes the trade adjustment assistance program to better meet the challenges of globalization or modernizes 

the unemployment insurance system to improve access to needed 

benefits by the amounts provided in such measure if such measure 

would not increase the deficit or decrease the surplus for the period 

of fiscal years 2008 through 2013 or for the period of fiscal years 

2008 through 2018. 

SEC. 215. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS 

LEGISLATION. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for the reauthorization of the Secure 

Rural Schools and Community Self Determination Act of 2000 

(Public Law 106–393) or makes changes to the Payments in Lieu of 

Taxes Act of 1976 (Public Law 94–565) by the amounts provided in 

such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 

or for the period of fiscal years 2008 through 2018. 

SEC. 216. DEFICIT-NEUTRAL RESERVE FUND FOR SAN JOAQUIN RIVER 

RESTORATION AND NAVAJO NATION WATER RIGHTS SETTLEMENTS. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that would fulfill the purposes of the San Joaquin 

River Restoration Settlement Act or implement a Navajo Nation 

water rights settlement and other provisions authorized by the 

Northwestern New Mexico Rural Water Projects Act by the amounts 


ccoleman on PRODPC75 with HEARING
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provided in such measure if such measure would not increase the 

deficit or decrease the surplus for the period of fiscal years 2008 

through 2013 or for the period of fiscal years 2008 through 2018. 

SEC. 217. DEFICIT-NEUTRAL RESERVE FUND FOR THE NATIONAL PARK 

CENTENNIAL FUND. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that provides for the establishment of the National 

Park Centennial Fund by the amounts provided in such measure for 

that purpose if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 

or for the period of fiscal years 2008 through 2018. 

SEC. 218. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD SUPPORT ENFORCEMENT. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that improves Federal child support collection efforts 

or results in more collected child support reaching families by the 

amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal 

years 2008 through 2013 or for the period of fiscal years 2008 

through 2018. 

SEC. 219. DEFICIT-NEUTRAL RESERVE FUND FOR CHILDREN AND FAMILIES. 

In the House, the Chairman of the Committee on the Budget 

may revise the allocations, aggregates, and other appropriate levels 

in this resolution for any bill, joint resolution, amendment, or conference report that assists children and families by improving child 

welfare programs, extending and improving provisions in the Temporary Assistance for Needy Families program, or providing up to 

$5,000,000,000 for the child care entitlement to States by the 

amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal 

years 2008 through 2013 or for the period of fiscal years 2008 

through 2018. 

SEC. 220. RESERVE FUND ADJUSTMENT FOR REVENUE MEASURES IN 

THE HOUSE. 

(a) In the House, with respect to consideration of any bill, joint 

resolution, amendment, or conference report that would have the net 

effect of increasing the deficit or reducing the surplus for the period 

of fiscal years 2008 through 2013 or the period of fiscal years 2008 

through 2018 and that would decrease total revenues for the period 

of fiscal years 2009 through 2013 below the Congressional Budget 

Office baseline for this concurrent resolution on the budget, the 

Chairman of the Committee on the Budget shall increase the revenue aggregates by $340,570,000,000 for the period of fiscal years 

2009 through 2013 if the Chairman determines that such legislation 

does not include language consistent with the applicable provision 

set forth in the joint explanatory statement of managers accompanying this concurrent resolution. The Chairman may readjust 

such levels upon disposition of any measure under this section. 


ccoleman on PRODPC75 with HEARING
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(b) Section 321 of S. Con. Res. 21, the Concurrent Resolution 

on the Budget for Fiscal Year 2008, shall no longer apply. 

Subtitle B—Senate Reserve Funds 

SEC. 221. DEFICIT-NEUTRAL RESERVE FUND TO STRENGTHEN AND 

STIMULATE THE AMERICAN ECONOMY AND PROVIDE ECONOMIC RELIEF TO AMERICAN FAMILIES. 

(a) TAX RELIEF.—The Chairman of the Senate Committee on 

the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide tax relief, including extensions of expiring and expired tax relief and refundable tax relief, by the amounts provided in that legislation for those purposes, provided that such legislation would not 

increase the deficit over either the period of the total of fiscal years 

2008 through 2013 or the period of the total of fiscal years 2008 

through 2018. 

(b) MANUFACTURING.—The Chairman of the Senate Committee 

on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports, including tax 

legislation, that would revitalize the United States domestic manufacturing sector by increasing Federal research and development, by 

expanding the scope and effectiveness of manufacturing programs 

across the Federal government, by increasing efforts to train and retrain manufacturing workers, by increasing support for development 

of alternative fuels and leap-ahead automotive and energy technologies, or by establishing tax incentives to encourage the continued production in the United States of advanced technologies and 

the infrastructure to support such technologies, by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the 

total of fiscal years 2008 through 2013 or the period of the total of 

fiscal years 2008 through 2018. 

(c) HOUSING.—The Chairman of the Senate Committee on the 

Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, 

joint resolutions, amendments, motions, or conference reports that 

would provide housing assistance, which may include low income 

rental assistance, or establish an affordable housing fund financed 

by the housing government sponsored enterprises or other sources, 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

(d) FLOOD INSURANCE REFORM.—The Chairman of the Senate 

Committee on the Budget may revise the allocations of a committee 

or committees, aggregates, and other levels in this resolution for one 

or more bills, joint resolutions, amendments, motions, or conference 

reports that would provide for flood insurance reform and modernization, by the amounts provided in such legislation for those 

purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 

2013 or the period of the total of fiscal years 2008 through 2018. 


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21 

(e) TRADE.—The Chairman of the Senate Committee on the 

Budget may revise the allocations, aggregates, and other levels in 

this resolution for one or more bills, joint resolutions, amendments, 

motions, or conference reports relating to trade, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the 

total of fiscal years 2008 through 2013 or the period of the total of 

fiscal years 2008 through 2018. 

(f) ECONOMIC RELIEF FOR AMERICAN FAMILIES.—The Chairman 

of the Senate Committee on the Budget may revise the allocations 

of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports which— (1) reauthorizes the Temporary Assistance for Needy Families supplemental grants or makes improvements to the Temporary Assistance for Needy Families program, child welfare 

programs, or the child support enforcement program; (2) provides up to $5,000,000,000 for the child care entitlement to States; 

(3) provides up to $40,000,000 for the emergency food assistance program established under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.); 

(4) improves the unemployment compensation program; or 

(5) reauthorizes trade adjustment assistance programs 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

(g) AMERICA’S FARMS AND ECONOMIC INVESTMENT IN RURAL

AMERICA.—

(1) FARM BILL.—The Chairman of the Senate Committee on 

the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide for the reauthorization of the programs of the Food Security and Rural Investment Act of 2002 or prior Acts, authorize 

similar or related programs, provide for revenue changes, or 

any combination of the preceding purposes, by the amounts provided in such legislation for those purposes up to 

$15,000,000,000 over the period of the total of fiscal years 2008 

through 2013, provided that such legislation would not increase 

the deficit over either the period of the total of fiscal years 2008 

through 2013 or the period of the total of fiscal years 2008 

through 2018. 

(2) COUNTY PAYMENTS.—The Chairman of the Senate Committee on the Budget may revise the allocations of a committee 

or committees, aggregates, and other appropriate levels and 

limits in this resolution for one or more bills, joint resolutions, 

amendments, motions, or conference reports that provide for the 

reauthorization of the Secure Rural Schools and Community 

Self-Determination Act of 2000 (Public Law 106–393), make 

changes to the Payments in Lieu of Taxes Act of 1976 (Public 

Law 94–565), or both, by the amounts provided by that legislation for those purposes, provided that such legislation would 

not increase the deficit over either the period of the total of fisVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00025 Fmt 6659 Sfmt 6603 E:\HR\OC\HR659.XXX HR659

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cal years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. 

SEC. 222. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVING EDUCATION. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels and limits in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that would 

improve education, which may include—

(1) making higher education more accessible or more affordable, which may include increasing funding for the Federal 

Pell Grant program or increasing Federal student loan limits; 

(2) facilitating modernization of school facilities through 

renovation or construction bonds, reducing the cost of teachers’

out-of-pocket expenses for school supplies, or providing tax incentives for highly-qualified teachers to serve in high-needs 

schools; 

(3) improving student achievement during secondary education, including middle school completion, increasing high 

school graduation, and preparing students for higher education 

and the workforce; or 

(4) promoting flexibility and accountability in Federal education programs 

by the amounts provided in such legislation for such purposes, provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

SEC. 223. DEFICIT-NEUTRAL RESERVE FUND FOR INVESTMENTS IN 

AMERICA’S INFRASTRUCTURE. 

The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels and 

limits in this resolution for one or more bills, joint resolutions, 

amendments, motions, or conference reports that provide for a robust Federal investment in America’s infrastructure, which may include projects for transit, rail (including high-speed passenger rail), 

airport, seaport, public housing, energy, water, highway, bridge, or 

other infrastructure projects, by the amounts provided in that legislation for those purposes, provided that such legislation would not 

increase the deficit over either the period of the total of fiscal years 

2008 through 2013 or the period of the total of fiscal years 2008 

through 2018. 

SEC. 224. DEFICIT-NEUTRAL RESERVE FUND TO INVEST IN CLEAN ENERGY, PRESERVE THE ENVIRONMENT, AND PROVIDE FOR 

CERTAIN SETTLEMENTS. 

(a) ENERGY AND THE ENVIRONMENT.—The Chairman of the 

Senate Committee on the Budget may revise the allocations of a 

committee or committees, aggregates, and other levels and limits in 

this resolution for one or more bills, joint resolutions, amendments, 

motions, or conference reports that would decrease greenhouse gas 

emissions, reduce our Nation’s dependence on imported energy, 

produce green jobs, encourage consumers to install smart electricity 

meters in homes and businesses, encourage the capture and storage 

of carbon dioxide emissions from coal projects, or preserve or protect 

national parks, oceans, or coastal areas, by the amounts provided 


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in such legislation for those purposes, provided that such legislation 

would not increase the deficit over either the period of the total of 

fiscal years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. The legislation may include tax legislation such as a proposal to extend for 5 years energy tax incentives 

like the production tax credit for electricity produced from renewable resources, the biodiesel production tax credit, or the Clean Renewable Energy Bond program, to provide a tax credit for clean 

burning wood stoves, a tax credit for production of cellulosic ethanol, a tax credit for plug-in hybrid vehicles, or provisions to encourage energy efficient buildings, products, and power plants. Tax 

legislation under this section may be paid for by adjustments to section 167(h)(1) of the Internal Revenue Code of 1986 as it relates to 

integrated oil companies. 

(b) SETTLEMENTS.—The Chairman of the Senate Committee on 

the Budget may revise the allocations of a committee or committees, 

aggregates, and other appropriate levels in this resolution for one or 

more bills, joint resolutions, amendments, motions, or conference reports that would fulfill the purposes of the San Joaquin River Restoration Settlement Act or implement a Navajo Nation water rights 

settlement and other provisions authorized by the Northwestern 

New Mexico Rural Water Projects Act, by the amounts provided by 

that legislation for those purposes, provided that such legislation 

would not increase the deficit over either the period of the total of 

fiscal years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. 

SEC. 225. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA’S VETERANS AND SERVICEMEMBERS. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that 

would— (1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or 

veterans (including measures to expedite the claims process); 

(2) maintain affordable health care for military retirees 

and veterans; 

(3) expand the number of disabled military retirees who receive both disability compensation and retired pay, or would accelerate the date by which eligible retirees under section 1414 

of title 10, United States Code, will fully receive both veterans’

disability compensation and retired pay; 

(4) eliminate the offset between Survivor Benefit Plan annuities and Veterans’ Dependency and Indemnity Compensation; 

(5) provide for the continuing payment to members of the 

Armed Forces who are retired or separated from the Armed 

Forces due to a combat-related injury after September 11, 2001, 

of bonuses that such members were entitled to before the retirement or separation and would continue to be entitled to if such 

members were not retired or separated; 

(6) enhance programs and activities to increase the availability of health care and other veterans services for veterans 

living in rural areas; or 


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(7) provide or increase benefits for Filipino veterans of 

World War II or their survivors and dependents 

by the amounts provided in such legislation for those purposes, provided that such legislation does not include increased fees charged 

to veterans for pharmacy co-payments, annual enrollment, or thirdparty insurance payment offsets, and further provided that such legislation would not increase the deficit or decrease the surplus for the 

period of fiscal years 2008 through 2013 or for the period of fiscal 

years 2008 through 2018. 

SEC. 226. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS FOR SERVICEMEMBERS, VETERANS, AND THEIR FAMILIES. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that 

would—

(1) enhance educational benefits or assistance for 

servicemembers and veterans with service on active duty in the 

Armed Forces on or after September 11, 2001; 

(2) allow for the transfer of education benefits from 

servicemembers to spouses, survivors, or dependents; or 

(3) otherwise enhance education benefits or assistance for 

servicemembers (including Active Duty, National Guard, and 

Reserve), veterans, or their spouses, survivors, or dependents 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

SEC. 227. DEFICIT-NEUTRAL RESERVE FUND TO IMPROVE AMERICA’S 

HEALTH. 

(a) SCHIP.—The Chairman of the Senate Committee on the 

Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that provides up to 

$50,000,000,000 in outlays over the period of the total of fiscal years 

2008 through 2013 for reauthorization of SCHIP, if such legislation 

maintains coverage for those currently enrolled in SCHIP, continues 

efforts to enroll uninsured children who are already eligible for 

SCHIP or Medicaid but are not enrolled, or supports States in their 

efforts to move forward in covering more children, by the amounts 

provided in that legislation for those purposes, provided that the 

outlay adjustment shall not exceed $50,000,000,000 in outlays over 

the period of the total of fiscal years 2008 through 2013, and provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

(b) MEDICARE IMPROVEMENTS.—

(1) PHYSICIAN PAYMENTS.—The Chairman of the Senate 

Committee on the Budget may revise the aggregates, allocations, 

and other appropriate levels in this resolution for a bill, joint 

resolution, amendment, motion, or conference report that increases the reimbursement rate for physician services under section 1848(d) of the Social Security Act and that includes finanVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00028 Fmt 6659 Sfmt 6603 E:\HR\OC\HR659.XXX HR659

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cial incentives for physicians to improve the quality and efficiency of items and services furnished to Medicare beneficiaries 

through the use of consensus-based quality measures, by the 

amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over 

either the period of the total of fiscal years 2008 through 2013 

or the period of the total of fiscal years 2008 through 2018. 

(2) OTHER IMPROVEMENTS TO MEDICARE.—The Chairman of 

the Senate Committee on the Budget may revise the aggregates, 

allocations, and other appropriate levels in this resolution for 

a bill, joint resolution, amendment, motion, or conference report 

that makes improvements to the Medicare program, which may 

include—

(A) reductions in beneficiary cost-sharing for preventive 

benefits under Medicare Part B; 

(B) the preservation or promotion of payment provisions that support America’s rural health care delivery system; 

(C) limits to inappropriate or abusive marketing tactics 

by private insurers and their agents offering Medicare Advantage or Medicare prescription drug plans by enacting 

any or all of the recommendations agreed to by leaders of 

the health insurance industry on March 3, 2008, including 

prohibitions on cold calling and telephone solicitations for 

in-home sales appointments with Medicare beneficiaries; 

(D) a three-year extension of the pilot program for national and State background checks on direct patient access 

employees of long-term care facilities or providers under 

section 307 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (42 U.S.C. 1395aa 

note) and removing the limit on the number of participating States under such pilot program; or 

(E) measures to encourage physicians to train in primary care residencies and attract more physicians and 

other health care providers to States that face a shortage of 

health care providers 

by the amounts provided in such legislation for those purposes 

up to $10,000,000,000, provided that such legislation would not 

increase the deficit over either the period of the total of fiscal 

years 2008 through 2013 or the period of the total of fiscal years 

2008 through 2018. 

(3) MEDICARE LOW-INCOME PROGRAMS.—The Chairman of 

the Senate Committee on the Budget may revise the aggregates, 

allocations, and other appropriate levels in this resolution for 

a bill, joint resolution, amendment, motion, or conference report 

that makes improvements to the Medicare Savings Program 

and the Medicare Part D low-income subsidy program, which 

may include the provisions that—

(A) provide for an increase in the asset allowance 

under the Medicare Part D low-income subsidy program so 

that individuals with very limited incomes, but modest retirement savings, can obtain the assistance that the Medicare Prescription Drug, Improvement, and Modernization 

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ment of premiums and cost-sharing under the Medicare 

Part D prescription drug benefit; 

(B) provide for an update in the income and asset allowances under the Medicare Savings Program and provide 

for an annual inflationary adjustment for those allowances; 

and 

(C) improve outreach and enrollment under the Medicare Savings Program and the Medicare Part D low-income 

subsidy program to ensure that low-income senior citizens 

and other low-income Medicare beneficiaries receive the 

low-income assistance for which they are eligible in accordance with the improvements provided for in such legislation 

by the amounts provided in such legislation for those purposes, 

provided that such legislation would not increase the deficit 

over either the period of the total of fiscal years 2008 through 

2013 or the period of the total of fiscal years 2008 through 

2018. 

(c) HEALTH CARE QUALITY, EFFECTIVENESS, EFFICIENCY, AND

TRANSPARENCY.—

(1) COMPARATIVE EFFECTIVENESS RESEARCH.—The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other 

appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that establish a new Federal or public-private initiative for comparative effectiveness research, by the amounts provided in such legislation for those purposes, provided that such legislation would 

not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. 

(2) IMPROVING THE HEALTH CARE SYSTEM.—The Chairman 

of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution for a bill, 

joint resolution, motion, amendment, or conference report that—

(A) creates a framework and parameters for the use of 

Medicare data for the purpose of conducting research, public reporting, and other activities to evaluate health care 

safety, effectiveness, efficiency, quality, and resource utilization in Federal programs and the private health care system; and 

(B) includes provisions to protect beneficiary privacy 

and to prevent disclosure of proprietary or trade secret information with respect to the transfer and use of such data 

by the amounts provided for those purposes, provided that such 

legislation would not increase the deficit over either the period 

of the total of fiscal years 2008 through 2013 or the period of 

the total of fiscal years 2008 through 2018. 

(3) HEALTH INFORMATION TECHNOLOGY AND ADHERENCE TO

BEST PRACTICES.—

(A) HEALTH INFORMATION TECHNOLOGY.—The Chairman of the Senate Committee on the Budget may revise the 

allocations of a committee or committees, aggregates, and 

other appropriate levels and limits in this resolution for one 

or more bills, joint resolutions, amendments, motions, or 


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conference reports that provide incentives or other support 

for adoption of modern information technology, including 

incentives or other supports for the adoption of electronic 

prescribing technology, to improve quality and protect privacy in health care, such as activities by the Department of 

Defense and the Department of Veterans Affairs to integrate 

their electronic health record data, by the amounts provided in such legislation for that purpose, provided that 

such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or 

the period of the total of fiscal years 2008 through 2018. 

(B) ADHERENCE TO BEST PRACTICES.—The Chairman of 

the Committee on the Budget of the Senate may revise the 

allocations of a committee or committees, aggregates, and 

other appropriate levels and limits in this resolution for one 

or more bills, joint resolutions, amendments, motions, or 

conference reports that provide incentives for Medicare providers or suppliers to comply with, where available and 

medically appropriate, clinical protocols identified as best 

practices, by the amounts provided in such legislation for 

that purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal 

years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. 

(d) FOOD AND DRUG ADMINISTRATION.— (1) REGULATION.—The Chairman of the Senate Committee 

on the Budget may revise the allocations, aggregates, and other 

appropriate levels in this resolution for a bill, joint resolution, 

motion, amendment, or conference report that authorizes the 

Food and Drug Administration to regulate products and assess 

user fees on manufacturers and importers of those products to 

cover the cost of the Food and Drug Administration’s regulatory 

activities, by the amounts provided in that legislation for those 

purposes, provided that such legislation would not increase the 

deficit over either the period of the total of fiscal years 2008 

through 2013 or the period of the total of fiscal years 2008 

through 2018. 

(2) DRUG IMPORTATION.—The Chairman of the Senate 

Committee on the Budget may revise the aggregates, allocations, 

and other levels in this resolution for a bill, joint resolution, 

motion, amendment, or conference report that permits the safe 

importation of prescription drugs approved by the Food and 

Drug Administration from a specified list of countries, by the 

amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over 

either the period of the total of fiscal years 2008 through 2013 

or the period of the total of fiscal years 2008 through 2018. 

(e) MEDICAID.—

(1) RULES OR ADMINISTRATIVE ACTIONS.—The Chairman of 

the Senate Committee on the Budget may revise the allocations, 

aggregates, and other appropriate levels in this resolution for a 

bill, joint resolution, amendment, motion, or conference report 

that includes provisions regarding the implementation or administration of regulations or other administrative actions pertaining to Medicaid or SCHIP or includes provisions regarding 


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administrative guidance issued in August 2007 affecting 

SCHIP or any other administrative action that would affect 

SCHIP in a similar manner by the amounts provided in that 

legislation for those purposes, provided that such legislation 

would not increase the deficit over either the total of the period 

of fiscal years 2008 through 2013 or the total of the period of 

fiscal years 2008 through 2018. 

(2) TRANSITIONAL MEDICAL ASSISTANCE.—The Chairman of 

the Senate Committee on the Budget may revise the allocations 

of a committee or committees, aggregates, and other appropriate 

levels in this resolution for one or more bills, joint resolutions, 

amendments, motions or conference reports that extend the 

Transitional Medical Assistance program, included in title XIX 

of the Social Security Act, by the amounts provided in such legislation for those purposes, provided that such legislation would 

not increase the deficit over either the total of the period of fiscal years 2008 through 2013 or the total of the period of fiscal 

years 2008 through 2018. 

(f) OTHER IMPROVEMENTS IN HEALTH.—The Chairman of the 

Senate Committee on the Budget may revise the allocations of a 

committee or committees, aggregates, and other appropriate levels in 

this resolution for one or more bills, joint resolutions, amendments, 

motions, or conference reports which—

(1) make health insurance coverage more affordable or 

available to small businesses and their employees, through 

pooling arrangements that provide appropriate consumer protections, or through reducing barriers to cafeteria plans; 

(2) improve health care, provide quality health insurance 

for the uninsured and underinsured, and protect individuals 

with current health coverage; 

(3) reauthorize the special diabetes program for Indians 

and the special diabetes programs for Type 1 diabetes; 

(4) improve long-term care, enhance the safety and dignity 

of patients, encourage appropriate use of institutional and community-based care, promote quality care, or provide for the costeffective use of public resources; or 

(5) provide parity between health insurance coverage of 

mental health benefits and benefits for medical and surgical 

services, including parity in public programs 

by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either 

the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. 

(g) PEDIATRIC DENTAL CARE.—The Chairman of the Senate 

Committee on the Budget may revise the aggregates, allocations, 

and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that would provide 

for improved access to pediatric dental care for children from lowincome families, by the amounts provided in such legislation for 

such purpose, provided that such legislation would not increase the 

deficit over either the period of the total of fiscal years 2008 through 

2013 or the period of the total of fiscal years 2008 through 2018. 


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SEC. 228. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE ALTERNATIVE MINIMUM TAX. 

The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution 

for a bill, joint resolution, amendment, motion, or conference report 

that provides for reform of the Internal Revenue Code of 1986 by reducing the tax burden of the alternative minimum tax on middleincome families, by the amounts provided in such measure for that 

purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 

2013 or the period of the total of fiscal years 2008 through 2018. 

SEC. 229. DEFICIT-NEUTRAL RESERVE FUND FOR JUDICIAL PAY AND 

JUDGESHIPS. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels in this resolution for one or more bills, joint resolutions, 

amendments, motions, or conference reports that would authorize 

salary adjustments for justices and judges of the United States or 

increase the number of Federal judgeships, by the amounts provided 

in such legislation for those purposes, provided that such legislation 

would not increase the deficit over either the period of the total of 

fiscal years 2008 through 2013 or the period of the total of fiscal 

years 2008 through 2018. 

SEC. 230. DEFICIT-NEUTRAL RESERVE FUND FOR IMMIGRATION ENFORCEMENT AND REFORM. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels in this resolution for one or more bills, joint resolutions, 

amendments, motions or conference reports that would provide for 

greater border security, enforcement of immigration laws, backlog 

reduction and improvement of immigration services, reimbursement 

to states for the costs of incarcerating criminal aliens, or immigration reform, by the amounts provided in such legislation for those 

purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 

2013 or the period of the total of fiscal years 2008 through 2018. 

SEC. 231. DEFICIT-NEUTRAL RESERVE FUND FOR SCIENCE PARKS. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels and limits in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that would 

provide grants and loan guarantees for the development and construction of science parks to promote the clustering of innovation 

through high technology activities, by the amounts provided in such 

legislation for such purpose, provided that such legislation would 

not increase the deficit over either the period of the total of fiscal 

years 2008 through 2013 or the period of the total of fiscal years 

2008 through 2018. 

SEC. 232. DEFICIT-NEUTRAL RESERVE FUND TO TERMINATE DEDUCTIONS FROM MINERAL REVENUE PAYMENTS TO STATES. 

The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels and limits in this 

resolution by the amounts provided for those purposes for a bill, 

joint resolution, amendment, motion, or conference report that 


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would terminate the authority to deduct certain amounts from mineral revenues payable to States under the second undesignated 

paragraph of the matter under the heading ‘‘ADMINISTRATIVE PROVISIONS’’ under the heading ‘‘MINERALS MANAGEMENT SERVICE’’ of 

title I of the Department of the Interior, Environment, and Related 

Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 

2109), provided that such legislation would not increase the deficit 

over the period of the total of fiscal years 2008 through 2013 or the 

period of the total of fiscal years 2008 through 2018. 

SEC. 233. DEFICIT-REDUCTION RESERVE FUND FOR INCREASED USE 

OF RECOVERY AUDITS. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels in this resolution for one or more bills, joint resolutions, 

amendments, motions, or conference reports that achieves savings by 

requiring that agencies increase their use of recovery audits authorized under subchapter VI of chapter 35 of title 31, United States 

Code, (commonly referred to as the Erroneous Payments Recovery 

Act of 2001) and uses such savings to reduce the deficit, by the 

amounts provided in such legislation for such purpose, provided 

that such legislation would not increase the deficit over either the 

period of the total of fiscal years 2008 through 2013 or the period 

of the total of fiscal years 2008 through 2018. 

SEC. 234. DEFICIT-NEUTRAL RESERVE FUND FOR FOOD SAFETY. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other levels and limits in this resolution for one or more bills, joint 

resolutions, amendments, motions, or conference reports that would 

expand the level of Food and Drug Administration and Department 

of Agriculture food safety inspection services, develop effective approaches to the inspection of domestic and imported food products, 

provide for infrastructure and information technology systems to enhance the safety of the food supply, expand scientific capacity and 

training programs, invest in improved surveillance and testing technologies, provide for foodborne illness awareness and education programs, or enhance the Food and Drug Administration’s recall authority, by the amounts provided in such legislation for such purposes, provided that such legislation would not increase the deficit 

over either the period of the total of fiscal years 2008 through 2013 

or the period of the total of fiscal years 2008 through 2018. 

SEC. 235. DEFICIT-NEUTRAL RESERVE FUND FOR DEMONSTRATION 

PROJECT REGARDING MEDICAID COVERAGE OF LOW-INCOME HIV-INFECTED INDIVIDUALS. 

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and 

other appropriate levels in this resolution for one or more bills, joint 

resolutions, amendments, motions or conference reports that provide 

for a demonstration project under which a State may apply under 

section 1115 of the Social Security Act (42 U.S.C. 1315) to provide 

medical assistance under a State Medicaid program to HIV-infected 

individuals who are not eligible for medical assistance under such 

program under section 1902(a)(10)(A)(i) of the Social Security Act 

(42 U.S.C. 1396a(a)(10)(A)(i)), by the amounts provided in that legislation for those purposes, provided that such legislation would not 


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increase the deficit over either the total of the period of fiscal years 

2008 through 2013 or the total of the period of fiscal years 2008 

through 2018. 

SEC. 236. DEFICIT-NEUTRAL RESERVE FUND FOR REDUCING THE INCOME THRESHOLD FOR THE REFUNDABLE CHILD TAX 

CREDIT, AND OTHER SELECTED TAX RELIEF POLICIES. 

The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution 

for one or more bills, joint resolutions, amendments, motions, or 

conference reports that would reduce the income threshold for the 

refundable child tax credit under section 24 of the Internal Revenue 

Code of 1986 to $10,000 for taxable years 2009 and 2010 with no 

inflation adjustment; extend enhanced charitable giving from individual retirement accounts, including life-income gifts; or 

incentivize utilization of accumulated alternative minimum tax and 

research and development credits, by the amounts provided in such 

legislation for those purposes, provided that such legislation would 

not increase the deficit over either the period of the total of fiscal 

years 2008 through 2013 or the period of the total of fiscal years 

2008 through 2018. 

SEC. 237. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH PROGRAM. 

The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels and limits in this 

resolution for a bill, joint resolution, motion, amendment, or conference report that would establish a program, including medical 

monitoring and treatment, addressing the adverse health impacts 

linked to the September 11, 2001 attacks, by the amounts provided 

in such legislation for those purposes, if such legislation would not 

increase the deficit over either the period of fiscal years 2008 

through 2013 or the period of the total of fiscal years 2008 through 

2018. 

TITLE III—BUDGET ENFORCEMENT 

Subtitle A—House Enforcement Provisions 

SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER ADJUSTMENTS. 

(a) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.—

(1) CONTINUING DISABILITY REVIEWS AND SUPPLEMENTAL

SECURITY INCOME REDETERMINATIONS.—In the House, prior to 

consideration of any bill, joint resolution, amendment, or conference report making appropriations for fiscal year 2009 that 

appropriates $264,000,000 for continuing disability reviews and 

Supplemental Security Income redeterminations for the Social 

Security Administration, and provides an additional appropriation of up to $240,000,000, and the amount is designated for 

continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, 

the allocation to the Committee on Appropriations shall be increased by the amount of the additional budget authority and 

outlays resulting from that budget authority for fiscal year 

2009. 

(2) INTERNAL REVENUE SERVICE TAX COMPLIANCE.—In the 

House, prior to consideration of any bill, joint resolution, 


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amendment, or conference report making appropriations for fiscal year 2009 that appropriates $6,997,000,000 to the Internal 

Revenue Service and the amount is designated to improve compliance with the provisions of the Internal Revenue Code of 

1986 and provides an additional appropriation of up to 

$490,000,000, and the amount is designated to improve compliance with the provisions of the Internal Revenue Code of 1986, 

the allocation to the Committee on Appropriations shall be increased by the amount of the additional budget authority and 

outlays resulting from that budget authority for fiscal year 

2009. 

(3) HEALTH CARE FRAUD AND ABUSE CONTROL PROGRAM.—

In the House, prior to consideration of any bill, joint resolution, 

amendment, or conference report making appropriations for fiscal year 2009 that appropriates up to $198,000,000 and the 

amount is designated to the health care fraud and abuse control program at the Department of Health and Human Services, 

the allocation to the Committee on Appropriations shall be increased by the amount of additional budget authority and outlays resulting from that budget authority for fiscal year 2009. 

(4) UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY AC- TIVITIES.—In the House, prior to consideration of any bill, joint 

resolution, amendment, or conference report making appropriations for fiscal year 2009 that appropriates $10,000,000 for inperson reemployment and eligibility assessments and unemployment insurance improper payment reviews for the Department 

of Labor and provides an additional appropriation of up to 

$40,000,000, and the amount is designated for in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews for the Department of Labor, 

the allocation to the Committee on Appropriations shall be increased by the amount of additional budget authority and outlays resulting from that budget authority for fiscal year 2009. 

(b) COSTS OF OVERSEAS DEPLOYMENTS AND EMERGENCY

NEEDS.—

(1) OVERSEAS DEPLOYMENTS AND RELATED ACTIVITIES.— (A) In the House, if any bill, joint resolution, amendment, or conference report makes appropriations for fiscal 

year 2008 or fiscal year 2009 for overseas deployments and 

related activities and such amounts are so designated pursuant to this subparagraph, then the allocation to the Committee on Appropriations may be adjusted by the amounts 

provided in such legislation for that purpose up to the 

amounts of budget authority specified in section 104(21) for 

fiscal year 2008 or fiscal year 2009 and the new outlays resulting therefrom. 

(B) In the House, if any bill, joint resolution, amendment, or conference report makes appropriations for fiscal 

year 2008 or fiscal year 2009 for overseas deployments and 

related activities above the amounts of budget authority 

and new outlays specified in subparagraph (A) and such 

amounts are so designated pursuant to this subparagraph, 

then new budget authority, outlays, or receipts resulting 

therefrom shall not count for the purposes of titles III and 

IV of the Congressional Budget Act of 1974. 


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(2) EMERGENCY NEEDS.— In the House, if any bill, joint 

resolution, amendment, or conference report makes appropriations for discretionary amounts and such amounts are designated as necessary to meet emergency needs, then the new 

budget authority and outlays resulting therefrom shall not 

count for the purposes of titles III and IV of the Congressional 

Budget Act of 1974. 

(c) PROCEDURE FOR ADJUSTMENTS.—

(1) IN GENERAL.—In the House, prior to consideration of 

any bill, joint resolution, amendment, or conference report, the 

Chairman of the Committee on the Budget shall make the adjustments set forth in subsection (a) for the incremental new 

budget authority in that measure and the outlays resulting 

from that budget authority if that measure meets the requirements set forth in subsection (a), except that no adjustment 

shall be made for provisions exempted for the purposes of titles 

III and IV of the Congressional Budget Act of 1974 under subsection (b) of this section. 

(2) MATTERS TO BE ADJUSTED.—The adjustments referred 

to in paragraph (1) are to be made to the allocations made 

under this concurrent resolution on the budget pursuant to section 302(a) of the Congressional Budget Act of 1974. 

(d) SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008.—

In the House, if any measure making supplemental appropriations 

for fiscal year 2008 is enacted, the Chairman of the Committee on 

the Budget shall make the appropriate adjustments in allocations 

and aggregates to reflect the difference between such measure and 

the corresponding levels assumed in this resolution. 

SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

(a) IN GENERAL.—In the House, except as provided in subsection (b), any bill, joint resolution, amendment, or conference report making a general appropriation or continuing appropriation 

may not provide for advance appropriations. 

(b) EXCEPTIONS.—In the House, an advance appropriation may 

be provided for fiscal year 2010 for programs, projects, activities, or 

accounts identified in the joint explanatory statement of managers 

to accompany this resolution under the heading ‘‘Accounts Identified 

for Advance Appropriations’’ in an aggregate amount not to exceed 

$28,852,000,000 in new budget authority, and for 2011, accounts 

separately identified under the same heading. 

(c) DEFINITION.—In this section, the term ‘‘advance appropriation’’ means any new discretionary budget authority provided in a 

bill or joint resolution making general appropriations or any new 

discretionary budget authority provided in a bill or joint resolution 

continuing appropriations for fiscal year 2009 that first becomes 

available for any fiscal year after 2009. 

Subtitle B—Senate Enforcement Provisions 

SEC. 311. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-TERM DEFICITS. 

(a) CONGRESSIONAL BUDGET OFFICE ANALYSIS OF PROPOSALS.—The Director of the Congressional Budget Office shall, to 

the extent practicable, prepare for each bill and joint resolution reported from committee (except measures within the jurisdiction of 


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the Committee on Appropriations), and amendments thereto and 

conference reports thereon, an estimate of whether the measure 

would cause, relative to current law, a net increase in deficits in excess of $5,000,000,000 in any of the 4 consecutive 10-year periods 

beginning with the first fiscal year that is 10 years after the budget 

year provided for in the most recently adopted concurrent resolution 

on the budget. 

(b) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference 

report that would cause a net increase in deficits in excess of 

$5,000,000,000 in any of the 4 consecutive 10-year periods described 

in subsection (a). 

(c) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.—

(1) WAIVER.—This section may be waived or suspended only 

by the affirmative vote of three-fifths of the Members, duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required to sustain an 

appeal of the ruling of the Chair on a point of order raised 

under this section. 

(d) DETERMINATIONS OF BUDGET LEVELS.—For purposes of this 

section, the levels of net deficit increases shall be determined on the 

basis of estimates provided by the Senate Committee on the Budget. 

(e) SUNSET.—This section shall expire on September 30, 2017. 

(f) REPEAL.—In the Senate, subsections (a) through (d) and subsection (f) of section 203 of S. Con. Res. 21 (110th Congress) shall 

no longer apply. 

SEC. 312. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY 

INITIATIVES, AND OTHER ADJUSTMENTS. 

(a) SENATE POINT OF ORDER.—

(1) IN GENERAL.—Except as otherwise provided in this section, it shall not be in order in the Senate to consider any bill 

or joint resolution (or amendment, motion, or conference report 

on that bill or joint resolution) that would cause the discretionary spending limits in this section to be exceeded. 

(2) SUPERMAJORITY WAIVER AND APPEALS.—

(A) WAIVER.—This subsection may be waived or suspended in the Senate only by the affirmative vote of threefifths of the Members, duly chosen and sworn. 

(B) APPEALS.—Appeals in the Senate from the decisions 

of the Chair relating to any provision of this subsection 

shall be limited to 1 hour, to be equally divided between, 

and controlled by, the appellant and the manager of the 

bill or joint resolution. An affirmative vote of three-fifths of 

the Members of the Senate, duly chosen and sworn, shall 

be required to sustain an appeal of the ruling of the Chair 

on a point of order raised under this subsection. 

(b) SENATE DISCRETIONARY SPENDING LIMITS.—In the Senate 

and as used in this section, the term ‘‘discretionary spending limit’’

means—

(1) for fiscal year 2008, $1,050,478,000,000 in new budget 

authority and $1,094,944,000,000 in outlays; and 

(2) for fiscal year 2009, $1,011,718,000,000 in new budget 

authority and $1,106,112,000,000 in outlays; 


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as adjusted in conformance with the adjustment procedures in subsection (c). 

(c) ADJUSTMENTS IN THE SENATE.— (1) IN GENERAL.—After the reporting of a bill or joint resolution relating to any matter described in paragraph (2), or the 

offering of an amendment thereto or the submission of a conference report thereon— (A) the Chairman of the Senate Committee on the 

Budget may adjust the discretionary spending limits, budgetary aggregates, and allocations pursuant to section 302(a) 

of the Congressional Budget Act of 1974, by the amount of 

new budget authority in that measure for that purpose and 

the outlays flowing therefrom; and 

(B) following any adjustment under subparagraph (A), 

the Senate Committee on Appropriations may report appropriately revised suballocations pursuant to section 302(b) of 

the Congressional Budget Act of 1974 to carry out this subsection. 

(2) MATTERS DESCRIBED.—Matters referred to in paragraph 

(1) are as follows: 

(A) CONTINUING DISABILITY REVIEWS AND SSI REDETER- MINATIONS.—If a bill or joint resolution is reported making 

appropriations for fiscal year 2009 that appropriates 

$264,000,000 for continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, and provides an additional appropriation of up to $240,000,000 for continuing disability reviews and Supplemental Security Income redeterminations 

for the Social Security Administration, then the discretionary spending limits, allocation to the Senate Committee 

on Appropriations, and aggregates may be adjusted by the 

amounts provided in such legislation for that purpose, but 

not to exceed $240,000,000 in budget authority and outlays 

flowing therefrom for fiscal year 2009. 

(B) INTERNAL REVENUE SERVICE TAX ENFORCEMENT.— If a bill or joint resolution is reported making appropriations for fiscal year 2009 that appropriates $6,997,000,000 

for the Internal Revenue Service for enhanced tax enforcement to address the Federal tax gap (taxes owed but not 

paid) and provides an additional appropriation of up to 

$490,000,000 for the Internal Revenue Service for enhanced 

tax enforcement to address the Federal tax gap, then the 

discretionary spending limits, allocation to the Senate 

Committee on Appropriations, and aggregates may be adjusted by the amounts provided in such legislation for that 

purpose, but not to exceed $490,000,000 in budget authority 

and outlays flowing therefrom for fiscal year 2009. 

(C) HEALTH CARE FRAUD AND ABUSE CONTROL.—If a 

bill or joint resolution is reported making appropriations 

for fiscal year 2009 that appropriates up to $198,000,000 to 

the Health Care Fraud and Abuse Control program at the 

Department of Health and Human Services, then the discretionary spending limits, allocation to the Senate Committee on Appropriations, and aggregates may be adjusted 

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pose, but not to exceed $198,000,000 in budget authority 

and outlays flowing therefrom for fiscal year 2009. 

(D) UNEMPLOYMENT INSURANCE IMPROPER PAYMENT

REVIEWS.—If a bill or joint resolution is reported making 

appropriations for fiscal year 2009 that appropriates 

$10,000,000 for in-person reemployment and eligibility assessments and unemployment insurance improper payment 

reviews, and provides an additional appropriation of up to 

$40,000,000 for in-person reemployment and eligibility assessments and unemployment insurance improper payment 

reviews, then the discretionary spending limits, allocation 

to the Senate Committee on Appropriations, and aggregates 

may be adjusted by the amounts provided in such legislation for that purpose, but not to exceed $40,000,000 in 

budget authority and outlays flowing therefrom for fiscal 

year 2009. 

(3) ADJUSTMENTS FOR OVERSEAS DEPLOYMENTS AND OTHER

ACTIVITIES.—The Chairman of the Senate Committee on the 

Budget may adjust the discretionary spending limits, allocations to the Senate Committee on Appropriations, and aggregates for one or more—

(A) bills reported by the Senate Committee on Appropriations or passed by the House of Representatives; 

(B) joint resolutions or amendments reported by the 

Senate Committee on Appropriations; 

(C) amendments between the Houses received from the 

House of Representatives or Senate amendments offered by 

the authority of the Senate Committee on Appropriations; 

or 

(D) conference reports; 

making appropriations for fiscal year 2008 or 2009 for overseas 

deployments and other activities, by the amounts provided in 

such legislation for those purposes (and so designated pursuant 

to this paragraph), up to the amounts of budget authority specified in section 104(21) for fiscal years 2008 and 2009 and the 

new outlays flowing therefrom. 

(d) SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008.—

If legislation making supplemental appropriations for fiscal year 

2008 is enacted, the Chairman of the Senate Committee on the 

Budget may make the appropriate adjustments in allocations, aggregates, discretionary spending limits, and other levels of new 

budget authority and outlays for 2008 and 2009 to reflect the difference between such measure and the corresponding levels assumed 

in this resolution. 

(e) INAPPLICABILITY.—In the Senate, subsections (a), (b), (c), (e), 

and (f) of section 207 of S. Con. Res. 21 (110th Congress) shall no 

longer apply. 

SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. 

(a) IN GENERAL.—

(1) POINT OF ORDER.—Except as provided in subsection (b), 

it shall not be in order in the Senate to consider any bill, joint 

resolution, motion, amendment, or conference report that would 

provide an advance appropriation. 


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(2) DEFINITION.—In this section, the term ‘‘advance appropriation’’ means any new budget authority provided in a bill or 

joint resolution making appropriations for fiscal year 2009 that 

first becomes available for any fiscal year after 2009, or any 

new budget authority provided in a bill or joint resolution making general appropriations or continuing appropriations for fiscal year 2010, that first becomes available for any fiscal year 

after 2010. 

(b) EXCEPTIONS.—Advance appropriations may be provided— (1) for fiscal years 2010 and 2011 for programs, projects, 

activities, or accounts identified in the joint explanatory statement of managers accompanying this resolution under the 

heading ‘‘Accounts Identified for Advance Appropriations’’ in an 

aggregate amount not to exceed $28,852,000,000 in new budget 

authority in each year; and 

(2) for the Corporation for Public Broadcasting. 

(c) SUPERMAJORITY WAIVER AND APPEAL.—

(1) WAIVER.—In the Senate, subsection (a) may be waived 

or suspended only by an affirmative vote of three-fifths of the 

Members, duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to 

sustain an appeal of the ruling of the Chair on a point of order 

raised under subsection (a). 

(d) FORM OF POINT OF ORDER.—A point of order under subsection (a) may be raised by a Senator as provided in section 313(e) 

of the Congressional Budget Act of 1974. 

(e) CONFERENCE REPORTS.—When the Senate is considering a 

conference report on, or an amendment between the Houses in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such 

material contained in such conference report shall be deemed stricken, and the Senate shall proceed to consider the question of whether 

the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further 

amendment, as the case may be, which further amendment shall 

consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the 

Senate shall be debatable. In any case in which such point of order 

is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), 

no further amendment shall be in order. 

(f) INAPPLICABILITY.—In the Senate, section 206(a) of S. Con. 

Res. 21 (110th Congress) shall no longer apply. 

SEC. 314. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS LEGISLATION THAT CONSTITUTE CHANGES IN 

MANDATORY PROGRAMS WITH NET COSTS. 

(a) IN GENERAL.—In the Senate, it shall not be in order to consider any appropriations legislation, including any amendment 

thereto, motion in relation thereto, or conference report thereon, that 

includes any provision which constitutes a change in a mandatory 

program producing net costs, as defined in subsection (b), that 

would have been estimated as affecting direct spending or receipts 

under section 252 of the Balanced Budget and Emergency Deficit 

Control Act of 1985 (as in effect prior to September 30, 2002) were 


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they included in legislation other than appropriations legislation. A 

point of order pursuant to this section shall be raised against such 

provision or provisions as described in subsections (e) and (f). 

(b) CHANGES IN MANDATORY PROGRAMS PRODUCING NET

COSTS.—A provision or provisions shall be subject to a point of 

order pursuant to this section if— (1) the provision would increase budget authority in at 

least 1 of the 9 fiscal years that follow the budget year and over 

the period of the total of the budget year and the 9 fiscal years 

following the budget year; 

(2) the provision would increase net outlays over the period 

of the total of the 9 fiscal years following the budget year; and 

(3) the sum total of all changes in mandatory programs in 

the legislation would increase net outlays as measured over the 

period of the total of the 9 fiscal years following the budget 

year. 

(c) DETERMINATION.—The determination of whether a provision 

is subject to a point of order pursuant to this section shall be made 

by the Committee on the Budget of the Senate. 

(d) SUPERMAJORITY WAIVER AND APPEAL.—This section may be 

waived or suspended in the Senate only by an affirmative vote of 

three-fifths of the Members, duly chosen and sworn. An affirmative 

vote of three-fifths of the Members of the Senate, duly chosen and 

sworn, shall be required to sustain an appeal of the ruling of the 

Chair on a point of order raised under this section. 

(e) GENERAL POINT OF ORDER.—It shall be in order for a Senator to raise a single point of order that several provisions of a bill, 

resolution, amendment, motion, or conference report violate this section. The Presiding Officer may sustain the point of order as to 

some or all of the provisions against which the Senator raised the 

point of order. If the Presiding Officer so sustains the point of order 

as to some of the provisions (including provisions of an amendment, 

motion, or conference report) against which the Senator raised the 

point of order, then only those provisions (including provision of an 

amendment, motion, or conference report) against which the Presiding Officer sustains the point of order shall be deemed stricken 

pursuant to this section. Before the Presiding Officer rules on such 

a point of order, any Senator may move to waive such a point of 

order as it applies to some or all of the provisions against which 

the point of order was raised. Such a motion to waive is amendable 

in accordance with rules and precedents of the Senate. After the Presiding Officer rules on such a point of order, any Senator may appeal the ruling of the Presiding Officer on such a point of order as 

it applies to some or all of the provisions on which the Presiding 

Officer ruled. 

(f) FORM OF THE POINT OF ORDER.—When the Senate is considering a conference report on, or an amendment between the Houses 

in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report or amendment shall be deemed stricken, and the Senate shall proceed to consider the question of whether the Senate shall recede from its 

amendment and concur with a further amendment, or concur in the 

House amendment with a further amendment, as the case may be, 

which further amendment shall consist of only that portion of the 


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conference report or House amendment, as the case may be, not so 

stricken. Any such motion shall be debatable. In any case in which 

such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of 

this subsection), no further amendment shall be in order. 

(g) EFFECTIVENESS.—This section shall not apply to any provision constituting a change in a mandatory program in appropriations legislation if such provision has been enacted in each of the 

3 fiscal years prior to the budget year. 

(h) INAPPLICABILITY.—In the Senate, section 209 of S. Con. Res. 

21 (110th Congress) shall no longer apply. 

SEC. 315. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING SHORT-TERM DEFICIT. 

(a) POINT OF ORDER.—It shall not be in order in the Senate to 

consider any bill, joint resolution, amendment, motion, or conference 

report (except measures within the jurisdiction of the Committee on 

Appropriations) that would cause a net increase in the deficit in excess of $10,000,000,000 in any fiscal year provided for in the most 

recently adopted concurrent resolution on the budget unless it is 

fully offset over the period of all fiscal years provided for in the 

most recently adopted concurrent resolution on the budget. 

(b) SUPERMAJORITY WAIVER AND APPEAL IN THE SENATE.—

(1) WAIVER.—This section may be waived or suspended only 

by the affirmative vote of three-fifths of the Members, duly chosen and sworn. 

(2) APPEAL.—An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required to sustain an 

appeal of the ruling of the Chair on a point of order raised 

under this section. 

(c) DETERMINATIONS OF BUDGET LEVELS.—For purposes of this 

section, the levels shall be determined on the basis of estimates provided by the Senate Committee on the Budget. 

(d) SUNSET.—This section shall expire on September 30, 2017. 

Subtitle C—Other Provisions 

SEC. 321. OVERSIGHT OF GOVERNMENT PERFORMANCE. 

All committees are directed to review programs within their jurisdiction to root out waste, fraud, and abuse in program spending, 

giving particular scrutiny to issues raised by Government Accountability Office reports. Based on these oversight efforts and committee 

performance reviews of programs within their jurisdiction, committees are directed to include recommendations for improved governmental performance in their annual views and estimates reports required under section 301(d) of the Congressional Budget Act of 1974 

to the appropriate Committee on the Budget. 

SEC. 322. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY ADMINISTRATIVE EXPENSES. 

(a) IN GENERAL.—In the House and Senate, notwithstanding 

section 302(a)(1) of the Congressional Budget Act of 1974, section 

13301 of the Budget Enforcement Act of 1990, and section 2009a of 

title 39, United States Code, the joint explanatory statement accompanying the conference report on any concurrent resolution on the 

budget shall include in its allocations under section 302(a) of the 

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tions amounts for the discretionary administrative expenses of the 

Social Security Administration and of the Postal Service. 

(b) SPECIAL RULE.—In the House, for purposes of applying section 302(f) of the Congressional Budget Act of 1974, estimates of the 

level of total new budget authority and total outlays provided by a 

measure shall include any off-budget discretionary amounts. 

SEC. 323. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 

AND AGGREGATES. 

(a) APPLICATION.—Any adjustments of allocations and aggregates made pursuant to this resolution shall—

(1) apply while that measure is under consideration; 

(2) take effect upon the enactment of that measure; and 

(3) be published in the Congressional Record as soon as 

practicable. 

(b) EFFECT OF CHANGED ALLOCATIONS AND AGGREGATES.—Revised allocations and aggregates resulting from these adjustments 

shall be considered for the purposes of the Congressional Budget Act 

of 1974 as allocations and aggregates contained in this resolution. 

(c) BUDGET COMMITTEE DETERMINATIONS.—For purposes of 

this resolution, the levels of new budget authority, outlays, direct 

spending, new entitlement authority, revenues, deficits, and surpluses for a fiscal year or period of fiscal years shall be determined 

on the basis of estimates made by the appropriate Committee on the 

Budget. 

(d) ADJUSTMENTS.—The Chairmen of the Budget Committees in 

the House and the Senate may adjust the aggregates, allocations, 

and other levels in this resolution for legislation which has received 

final Congressional approval in the same form by the House of Representatives and the Senate, and is either waiting to be presented 

to the President or awaiting Presidential signature at the time of 

final consideration of this resolution. 

SEC. 324. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 

DEFINITIONS. 

Upon the enactment of any bill or joint resolution providing for 

a change in concepts or definitions, the Chairman of the appropriate 

Committee on the Budget may make adjustments to the levels and 

allocations in this resolution in accordance with section 251(b) of 

the Balanced Budget and Emergency Deficit Control Act of 1985 (as 

in effect prior to September 30, 2002). 

SEC. 325. EXERCISE OF RULEMAKING POWERS. 

Congress adopts the provisions of this title—

(1) as an exercise of the rulemaking power of the House of 

Representatives and the Senate and as such they shall be considered as part of the rules of each House or of that House to 

which they specifically apply, and these rules shall supersede 

other rules only to the extent that they are inconsistent with 

other such rules; and 

(2) with full recognition of the constitutional right of either 

the House of Representatives or the Senate to change those rules 

at any time, in the same manner, and to the same extent as in 

the case of any other rule of the House of Representatives or the 

Senate. 


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TITLE IV—POLICY 

SEC. 401. POLICY OF THE HOUSE ON MIDDLE-INCOME TAX RELIEF. 

It is the policy of the House to—

(1) minimize fiscal burdens on middle-income families and 

their children and grandchildren; 

(2) provide immediate relief for the tens of millions of middle-income households who would otherwise be subject to the alternative minimum tax (AMT) under current law, in the context 

of permanent, revenue-neutral AMT reform; and 

(3) support extension of middle-income tax relief and enhanced economic equity through policies such as—

(A) extension of the child tax credit; 

(B) extension of marriage penalty relief; 

(C) extension of the 10 percent individual income tax 

bracket; 

(D) elimination of estate taxes on all but a minute fraction of estates by reforming and substantially increasing 

the unified tax credit; 

(E) extension of the research and experimentation tax 

credit; 

(F) extension of the deduction for State and local sales 

taxes; 

(G) extension of the deduction for small business expensing; and 

(H) enactment of a tax credit for school construction 

bonds. 

The House assumes that the cost of enacting such policies is offset 

by reforms within the Internal Revenue Code of 1986 that promote 

a fairer distribution of taxes across families and generations, economic efficiency, higher rates of tax compliance to close the tax gap, 

and reduced taxpayer burdens through tax simplification. 

SEC. 402. POLICY ON DEFENSE PRIORITIES. 

It is the policy of this resolution that—

(1) the Administration’s budget requests should comply 

with section 1008, Public Law 109–364, the John Warner National Defense Authorization Act for Fiscal Year 2009, and the 

Administration should no longer attempt to fund overseas military operations through emergency supplemental appropriations 

requests; 

(2) the Department of Defense should exclude nonwar requirements from its funding requests for Iraq and Afghanistan; 

(3) implementing the recommendation of the National Commission on Terrorist Attacks Upon the United States (commonly 

referred to as the 9/11 Commission) to adequately fund cooperative threat reduction and nuclear nonproliferation programs 

(securing ‘‘loose nukes’’) is a high priority and should receive far 

greater emphasis than the President’s budget provides; 

(4) readiness of our troops, particularly the National Guard 

and Reserve, is a high priority, and that greater emphasis 

needs to be placed on mitigating equipment and training shortfalls; 

(5) TRICARE fees for military retirees under the age of 65 

should not be increased as the President’s budget proposes; 


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(6) military pay and benefits should be enhanced to improve the quality of life of military personnel; 

(7) improving military health care services continues to be 

a high priority and adequate funding to ensure quality health 

care for returning combat veterans should be provided; 

(8) sufficient funds should be provided to the military services to expedite review of cases involving servicemembers who 

could have been erroneously discharged from service for a personality disorder, which resulted in a loss of benefits or care, 

as a result of a combat-related psychological injury (such as 

Post Traumatic Stress Disorder) or a closed head injury (such 

as Traumatic Brain Injury); 

(9) higher priority defense needs could be addressed by 

funding missile defense at an adequate but lower level, not providing funding for development of space-based missile defense 

interceptors, and by restraining excessive cost and schedule 

growth in defense research, development and procurement programs; 

(10) the Department of Defense should reassess current defense plans to ensure that weapons developed to counter Cold 

War-era threats are not redundant and are applicable to 21st 

century threats; 

(11) sufficient resources should be provided for the Department of Defense to do an aggressive job of addressing as many 

as possible of the 1,260 pending recommendations made by the 

Government Accountability Office (GAO) over the last 7 years to 

improve practices at the Department of Defense, including investigation of the billions of dollars of obligations, disbursements and overcharges for which the Department of Defense 

cannot account; 

(12) savings from the actions recommended in paragraphs 

(9) and (11) of this section should be used to fund the priorities 

identified in paragraphs (3) through (8); 

(13) the Department of Defense report to Congress on its assessment of cold war weapons and progress on implementing 

GAO recommendations as outlined in paragraphs (10) and (11) 

by a time determined by the appropriate authorizing committees; and 

(14) the GAO report to the appropriate congressional committees by the end of the 110th Congress regarding the Department of Defense’s progress in implementing its audit recommendations. 

TITLE V—SENSE OF THE SENATE AND CONGRESS 

Subtitle A—Sense of the Senate 

SEC. 501. SENSE OF THE SENATE REGARDING MEDICAID ADMINISTRATIVE REGULATIONS. 

(a) FINDINGS.—The Senate makes the following findings: 

(1) The Medicaid program provides essential health care 

and long-term care services to approximately 60,000,000 low-income children, pregnant women, parents, individuals with disabilities, and senior citizens. It is a Federal guarantee that ensures the most vulnerable will have access to needed medical 

services. 


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(2) Medicaid provides critical access to long-term care and 

other services for the elderly and individuals living with disabilities, and is the single largest provider of long-term care 

services. Medicaid also pays for personal care and other supportive services that are typically not provided by private health 

insurance or Medicare, but are necessary to enable individuals 

with spinal cord injuries, developmental disabilities, neurological degenerative diseases, serious and persistent mental illnesses, HIV/AIDS, and other chronic conditions to remain in 

the community, to work, and to maintain independence. 

(3) Medicaid supplements the Medicare program for about 

7,500,000 low-income elderly or disabled Medicare beneficiaries, assisting them with their Medicare premiums and coinsurance, wrap-around benefits, and the costs of nursing home 

care that Medicare does not cover. The Medicaid program 

spends over $100,000,000,000 on uncovered Medicare services. 

(4) Medicaid provides health insurance for more than onequarter of America’s children and is the largest purchaser of 

maternity care, paying for more than one-third of all the births 

in the United States each year. Medicaid also provides critical 

access to care for children with disabilities, covering more than 

70 percent of poor children with disabilities. 

(5) More than 21,000,000 women depend on Medicaid for 

their health care. Women comprise the majority of seniors (64 

percent) on Medicaid. Half of nonelderly women with permanent mental or physical disabilities have health coverage 

through Medicaid. Medicaid provides treatment for low-income 

women diagnosed with breast or cervical cancer in every State. 

(6) Medicaid is the Nation’s largest source of payment for 

mental health services, HIV/AIDS care, and care for children 

with special needs. Much of this care is either not covered by 

private insurance or limited in scope or duration. Medicaid is 

also a critical source of funding for health care for children in 

foster care and for health services in schools. 

(7) Medicaid funds help ensure access to care for all Americans. Medicaid is the single largest source of revenue for the 

Nation’s safety net hospitals, health centers, and nursing 

homes, and is critical to the ability of these providers to adequately serve all Americans. 

(8) Medicaid serves a major role in ensuring that the number of Americans without health insurance, approximately 

47,000,000 in 2006, is not substantially higher. The system of 

Federal matching for State Medicaid expenditures ensures that 

Federal funds will grow as State spending increases in response 

to unmet needs, enabling Medicaid to help buffer the drop in 

private coverage during recessions. 

(9) The Bush Administration has issued several regulations 

that shift Medicaid cost burdens onto States and put at risk the 

continued availability of much-needed services. The regulations 

relate to Federal payments to public providers, and for graduate medical education, rehabilitation services, school-based administration, school-based transportation, optional case management services. 

(b) SENSE OF THE SENATE.—It is the sense of the Senate that 

administrative regulations should not—


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(1) undermine the role the Medicaid program plays as a 

critical component of the health care system of the United 

States; 

(2) cap Federal Medicaid spending, or otherwise shift Medicaid cost burdens to State or local governments and their taxpayers and health providers, forcing a reduction in access to essential health services for low-income elderly individuals, individuals with disabilities, and children and families; or 

(3) undermine the Federal guarantee of health insurance 

coverage Medicaid provides, which would threaten not only the 

health care safety net of the United States, but the entire health 

care system. 

Subtitle B—Sense of the Congress 

SEC. 511. SENSE OF THE CONGRESS ON SERVICEMEMBERS’ AND VETERANS’ HEALTH CARE AND OTHER PRIORITIES. 

It is the sense of the Congress that—

(1) the Congress supports excellent health care for current 

and former members of the United States Armed Services—they 

have served well and honorably and have made significant sacrifices for this Nation; 

(2) this resolution provides $48,202,000,000 in discretionary budget authority for 2009 for Function 700 (Veterans 

Benefits and Services), including veterans’ health care, which is 

$4,940,000,000 more than the 2008 level, $3,654,000,000 more 

than the Congressional Budget Office’s baseline level for 2009, 

and $3,284,000,000 more than the President’s budget for 2009; 

and also provides more discretionary budget authority than the 

President’s budget in every year after 2009; 

(3) this resolution provides funding to continue addressing 

problems such as those identified at Walter Reed Army Medical 

Center to improve military and veterans’ health care facilities 

and services; 

(4) this resolution assumes the rejection of the health care 

enrollment fees and pharmaceutical co-payment increases in the 

President’s budget; 

(5) this resolution provides additional funding above the 

President’s inadequate budget levels for the Department of Veterans Affairs to research and treat veterans’ mental health, 

post-traumatic stress disorder, and traumatic brain injury; and 

(6) this resolution provides additional funding above the 

President’s inadequate budget levels for the Department of Veterans Affairs to improve the speed and accuracy of its processing of disability compensation claims, including funding to 

hire additional personnel above the President’s requested level. 

SEC. 512. SENSE OF THE CONGRESS ON HOMELAND SECURITY. 

It is the sense of the Congress that—

(1) this resolution assumes additional homeland security 

funding above the President’s requested level for 2009 and every 

subsequent year; 

(2) this resolution assumes funding above the President’s 

requested level for 2009, and additional amounts in subsequent 

years, in the four budget functions—Function 400 (Transportation), Function 450 (Community and Regional Development), 


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Function 550 (Health), and Function 750 (Administration of 

Justice)—that fund most nondefense homeland security activities; and 

(3) the homeland security funding provided in this resolution will help to strengthen the security of our Nation’s transportation system, particularly our ports where significant security shortfalls still exist and foreign ports, by expanding efforts 

to identify and scan all high-risk United States-bound cargo, 

equip, train and support first responders (including enhancing 

interoperable communications and emergency management), 

strengthen border patrol, and increase the preparedness of the 

public health system. 

SEC. 513. SENSE OF THE CONGRESS REGARDING LONG-TERM FISCAL 

REFORM. 

It is the sense of the Congress that— (1) both the Government Accountability Office and the Congressional Budget Office have warned that the Federal budget 

is on an unsustainable path of rising deficits and debt; 

(2) using recent trend data and reasonable policy assumptions, CBO has projected that the gap between spending and 

revenues over the next 75 years will reach 6.9 percent of GDP; 

(3) publicly held debt will rise from 36 percent today to 400 

percent of GDP by the decade beginning in 2050 under CBO’s 

alternative policy scenario; 

(4) the most significant factor affecting the long-term Federal fiscal landscape is the expectation that total public and private health spending will continue to grow faster than the economy; 

(5) the Congress calls upon governmental and nongovernmental experts to develop specific options to reform the health 

care system and control costs, that further research and analysis on topics including comparative effectiveness, health information technology, preventative care, and provider incentives is 

needed, and that of critical importance is the development of a 

consensus on the appropriate methods for estimating the budgetary impact and health outcome effects of these proposals; and 

(6) immediate policy action is needed to address the longterm fiscal challenges facing the United States, including the 

rising costs of entitlements, in a manner that is fiscally responsible, equitable, and lasting, and that also honors commitments 

made to beneficiaries, and that such action should be bipartisan, bicameral, involve both legislative and executive branch 

participants, as well as public participation, and be conducted 

in a manner that ensures full, fair, and timely Congressional 

consideration. 

SEC. 514. SENSE OF THE CONGRESS REGARDING WASTE, FRAUD, AND 

ABUSE. 

It is the sense of the Congress that—

(1) all committees should examine programs within their 

jurisdiction to identify wasteful and fraudulent spending; 

(2) title III of this resolution includes cap adjustments to 

provide appropriations for agencies that control programs that 

accounted for a significant share of improper payments reported 

by Federal agencies: Social Security Administration Continuing 

Disability Reviews, the Medicare/Medicaid Health Care Fraud 


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and Abuse Control Program, and Unemployment Insurance 

Program Integrity; 

(3) title III also includes a cap adjustment for the Internal 

Revenue Services for tax compliance efforts to close the 

$345,000,000,000 tax gap; 

(4) the resolution’s deficit-neutral reserve funds require authorizing committees to cut lower priority and wasteful spending to accommodate any new high-priority entitlement benefits; 

and 

(5) title III of the resolution directs all committees to review 

the performance of programs within their jurisdiction and report recommendations annually to the appropriate Committee 

on the Budget as part of the views and estimates process required by section 301(d) of the Congressional Budget Act. 

SEC. 515. SENSE OF THE CONGRESS REGARDING EXTENSION OF THE 

STATUTORY PAY-AS-YOU-GO RULE. 

It is the sense of the Congress that to reduce the deficit, Congress should extend PAYGO consistent with provisions of the Budget 

Enforcement Act of 1990. 

SEC. 516. SENSE OF THE CONGRESS ON LONG-TERM BUDGETING. 

It is the sense of the Congress that the determination of the congressional budget for the United States Government and the President’s budget request should include consideration of the Financial 

Report of the United States Government, especially its information 

regarding the Government’s net operating cost, financial position, 

and long-term liabilities. 

SEC. 517. SENSE OF THE CONGRESS REGARDING AFFORDABLE 

HEALTH COVERAGE. 

It is the sense of the Congress that—

(1) nearly 47 million Americans, including nine million 

children, lack health insurance; 

(2) people without health insurance are more likely to experience problems getting medical care and to be hospitalized for 

avoidable health problems; 

(3) most Americans receive health coverage through their 

employers, and a major issue facing all employers is the rising 

cost of health insurance; 

(4) small businesses, which have generated most of the new 

jobs annually over the last decade, have an especially difficult 

time affording health coverage, because of higher administrative costs and fewer people over whom to spread the risk of catastrophic costs; 

(5) because it is especially costly for small businesses to 

provide health coverage, their employees make up a large proportion of the Nation’s uninsured individuals; and 

(6) legislation consistent with the pay-as-you-go principle 

should be adopted that makes health insurance more affordable 

and accessible, with attention to the special circumstances affecting employees of small businesses, and that lowers costs and 

improves the quality of health care by encouraging integration 

of health information technology tools into the practice of medicine, by expanding comparative effectiveness research, and by 

promoting improvements in disease management and disease 

prevention. 


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SEC. 518. SENSE OF THE CONGRESS REGARDING PAY PARITY. 

It is the sense of the Congress that rates of compensation for civilian employees of the United States should be adjusted at the 

same time, and in the same proportion, as are rates of compensation 

for members of the uniformed services. 

SEC. 519. SENSE OF THE CONGRESS REGARDING SUBPRIME LENDING 

AND FORECLOSURES. 

It is the sense of the Congress that— (1) over the last six months, the Nation has experienced a 

significant increase in the number of homeowners facing the 

risk of foreclosure with estimates of as many as 2.8 million 

subprime and other distressed borrowers facing the loss of their 

homes over the next five years; 

(2) the rise in foreclosures not only has an immediate, devastating impact on homeowners and their families, but it also 

has ripple effects— (A) local communities experiencing high levels of foreclosures experience deterioration as a result of the large 

number of vacant foreclosed and abandoned homes; 

(B) rising foreclosure rates can accelerate drops in 

home prices, affecting all homeowners; and 

(C) home mortgage default and foreclosure rates increase risk for lenders, further restricting the availability of 

credit, which can in turn slow economic growth; and 

(3) the rise in foreclosures is not only a crisis for subprime 

borrowers, but a larger problem for communities as a whole, 

and considering the multi-layered effects of increasing foreclosures, the Congress should consider steps to address this 

complex problem. 

SEC. 520. SENSE OF THE CONGRESS REGARDING THE NEED TO MAINTAIN AND BUILD UPON EFFORTS TO FIGHT HUNGER. 

It is the sense of the Congress that— (1) 35.5 million Americans (12.6 million of them children) 

are food insecure—uncertain of having, or unable to acquire, 

enough food, and that 11.1 million Americans are hungry because of lack of food; 

(2) despite the critical contributions of the Department of 

Agriculture nutrition programs (particularly the food stamp 

program), which significantly reduced payment error rates 

while providing help to partially mitigate the effects of rising 

poverty and unemployment, significant need remains, even 

among families that receive food stamps; 

(3) nearly 25 million people, including more than nine million children and nearly three million seniors, sought emergency food assistance from food pantries, soup kitchens, shelters, and local charities last year; 

(4) additional resources are needed to ensure that nutrition 

assistance keeps up with inflation and rising food prices; and 

(5) Department of Agriculture programs that help us fight 

hunger should be maintained and the Congress should continue 

to seize opportunities to reach Americans in need and to fight 

hunger. 

SEC. 521. SENSE OF THE CONGRESS REGARDING THE IMPORTANCE OF 

CHILD SUPPORT ENFORCEMENT. 

It is the sense of the Congress that—


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(1) additional legislative action is needed to ensure that 

States have the necessary resources to collect all child support 

that is owed to families and to allow them to pass 100 percent 

of support on to families without financial penalty; and 

(2) when 100 percent of child support payments are passed 

to the child, rather than administrative expenses, program integrity is improved and child support participation increases. 

SEC. 522. SENSE OF THE CONGRESS ON THE INNOVATION AGENDA 

AND AMERICA COMPETES ACT. 

It is the sense of the Congress that—

(1) the Congress should provide sufficient funding so that 

our Nation may continue to be the world leader in education, 

innovation and economic growth; 

(2) last year, Congress passed and the President signed the 

America COMPETES Act, bipartisan legislation designed to ensure that American students, teachers, businesses, and workers 

are prepared to continue leading the world in innovation, research, and technology well into the future; 

(3) this resolution supports the efforts authorized in the 

America COMPETES Act, providing substantially increased 

funding above the President’s requested level for 2009, and increased amounts after 2009 in Function 250 (General Science, 

Space and Technology) and other functions; 

(4) additional increases for scientific research and education are included in Function 270 (Energy), Function 300 

(Environment and Natural Resources), Function 500 (Education, Employment, Training and Social Services), and Function 550 (Health), all of which receive more funding than the 

President’s budget provides; 

(5) because America’s greatest resource for innovation resides within classrooms across the country, the increased funding provided in this resolution will support initiatives within 

the America COMPETES Act to educate tens of thousands of 

new scientists, engineers, and mathematicians, and place highly 

qualified teachers in math and science K–12 classrooms; and 

(6) because independent scientific research provides the 

foundation for innovation and future technologies, this resolution will keep us on the path toward doubling funding for the 

National Science Foundation, basic research in the physical 

sciences, and collaborative research partnerships, and toward 

achieving energy independence through the development of 

clean and sustainable alternative energy technologies. 

And the House agree to the same. 

JOHN SPRATT, 

ROSA L. DELAURO, 

CHET EDWARDS, 

Managers on the Part of the House. 

KENT CONRAD, 

PATTY MURRAY, 

RON WYDEN, Managers on the Part of the Senate. 


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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the House to the concurrent resolution (S. Con. Res. 70), 

setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013, submit 

the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and 

recommended in the accompanying conference report: 

The House amendment struck all of the Senate concurrent resolution after the resolving clause and inserted the House-passed 

concurrent resolution on the budget (H. Con. Res. 312) as a substitute text. 

The Senate recedes from its disagreement to the amendment 

of the House with an amendment that is a substitute for the Senate concurrent resolution and the House amendment. The differences between the Senate concurrent resolution, the House 

amendment, and the substitute agreed to in conference are noted 

below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting 

and clarifying changes. 

DISPLAYS AND AMOUNTS 

The required contents of concurrent budget resolutions are set 

forth in section 301(a) of the Congressional Budget Act of 1974. 

The years in this document are fiscal years unless otherwise noted. 

The treatment of budget function levels in the House-passed 

and Senate-passed budget resolutions and the conference report is 

as follows: 

House-passed Resolution 

The House resolution includes all of the items required as part 

of a concurrent budget resolution under section 301(a) of the Congressional Budget Act other than the spending and revenue levels 

for Social Security (which are used to enforce a point of order applicable only in the Senate). 

Senate-passed Resolution 

The Senate concurrent resolution includes all of the items required under section 301(a) of the Congressional Budget Act. 

Conference Agreement 

The conference agreement includes all of the items required by 

section 301(a) of the Congressional Budget Act. 


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AGGREGATE AND FUNCTION LEVELS 

Pursuant to section 301(a)(4) of the Congressional Budget Act, 

the budget resolution must set appropriate levels for each major 

functional category based on the 302(a) allocations and the budgetary totals. 

The respective levels of the House concurrent resolution, the 

Senate concurrent resolution, and conference agreement for each 

major budget function, as well as revenue totals, are discussed in 

the section after the numerical tables. A summary of the overall 

budget policy is as follows: 

Total spending is $3.034 trillion in budget authority (BA) and 

$3.066 trillion in outlays in 2009, and $16.155 trillion in BA and 

$16.228 trillion in outlays over 2009–2013. 

Discretionary spending for 2009 totals $1.088 trillion in BA 

and $1.183 trillion in outlays in 2009, and $5.328 trillion in BA and 

$5.719 trillion in outlays over 2009–2013. Excluding funding for 

overseas deployments and other activities, discretionary spending 

for 2009 totals $1.013 trillion in BA and $1.075 trillion in outlays. 

These aggregate amounts (minus cap adjustments for program integrity initiatives) are allocated to the Appropriations Committees 

to be suballocated among their respective appropriations subcommittees. 

Mandatory spending totals $1.945 trillion in BA and $1.883 

trillion in outlays in 2009, and $10.827 trillion in BA and $10.509 

trillion in outlays over 2009–2013. 

Revenue totals $2.725 trillion in 2009, and $15.637 trillion over 

five years. Specific policies will be determined by the Committee on 

Finance in the Senate and the Committee on Ways and Means in 

the House. 

The conference agreement uses the Congressional Budget Office (CBO) March baseline, updated for legislation that has passed 

the Congress since the baseline was developed. 

The conference agreement reduces the budget deficit from 

$340.4 billion in 2009, to a surplus of $21.9 billion in 2012 and remains in surplus in 2013. 

The following section describes the conference agreement’s revenue levels and spending according to the budget’s functional categories. 


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REVENUES 

Summary 

The revenue component of the budget resolution reflects all of 

the federal government’s tax receipts that are classified as ‘‘onbudget.’’ This includes individual income taxes; corporate income 

taxes; excise taxes, such as the gasoline tax; and other taxes, such 

as estate and gift taxes. Taxes collected for the Social Security system—the Old Age and Survivors and Disability Insurance (OASDI) 

payroll tax—are ‘‘off-budget.’’ The Hospital Insurance payroll tax 

portion of Medicare, the Federal Unemployment Tax Act payroll 

tax, railroad retirement and other retirement systems are all ‘‘onbudget.’’ Customs duties, tariffs, and other miscellaneous receipts 

are also included in the revenue component. Pursuant to the Congressional Budget Act of 1974 and the Budget Enforcement Act of 

1990, Social Security payroll taxes are not included in the budget 

resolution. 

House-passed Resolution 

The House budget resolution matches the total level of revenues under the CBO baseline over the 2008–2013 period, with revenue losses in 2009 and an offsetting gain in 2010–2013, consistent 

with the resolution’s reconciliation instruction to the Ways and 

Means Committee regarding revenue. For the unified budget, the 

House resolution calls for a total of $2.7 trillion in revenues for 

2009, and $16.0 trillion over five years. (The budget resolution provides only the on-budget amounts, which are $2.0 trillion in revenues for 2009, and $12.1 trillion over five years.) 

By following the baseline revenue total for 2008–2013, the 

House resolution achieves current-law total revenue levels, but 

does not assume maintaining current tax law. Thus, the Housepassed budget resolution accommodates reform of the Alternative 

Minimum Tax (AMT) and extension of tax cuts benefitting middleincome households (including, but not limited to, the child tax credit, marriage penalty relief, the 10 percent bracket, and the deduction for State and local sales taxes), as long as such changes to tax 

law are accomplished, consistent with the House pay-as-you-go 

rule, in a deficit-neutral manner over the 2008–2013 and 2008–

2018 periods. 

The House resolution also accommodates deficit-neutral extension of other expiring tax provisions, such as the research and experimentation tax credit and the deduction for small business expensing. In addition, the House resolution accommodates deficitneutral elimination of estate taxes on all but a minute fraction of 

estates by reforming and substantially increasing the unified tax 

credit. It also accommodates other high priority deficit-neutral revenue adjustments, such as tax incentives for energy efficiency and 

renewable energy, and a tax credit for local bonds to support the 

repair or construction of public schools. 

Senate-passed Resolution 

The Senate budget resolution includes $2.0 trillion in on-budget revenues for 2009, and $11.7 trillion over 2009–2013. (The corVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00077 Fmt 6601 Sfmt 6601 E:\HR\OC\HR659.XXX HR659

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responding revenue figures on a unified basis are $2.7 trillion for 

2009 and $15.6 trillion over five years.) 

The revenue level in the Senate resolution is $407.5 billion 

below the levels in the CBO baseline over 2008–2013. This provides 

for one year of relief from the AMT, protecting more than 20 million taxpayers from being subject to the AMT in 2008. It also provides for the extension after 2010 of middle-class tax relief—child 

tax credit, the 10 percent bracket, and marriage penalty relief—as 

well as continuation of the estate tax at 2009 levels adjusted for 

inflation. In addition, this revenue level accommodates a number 

of other tax policies, such as property tax relief; relief to those 

whose homes were damaged or destroyed by Hurricanes Katrina 

and Rita; tax relief for America’s troops and veterans; enhancement 

of the refundable portion of the child tax credit; and extension of 

the adoption and dependent care tax credits. Finally, this total accommodates revenue provisions that could be part of an overall economic stimulus package. 

The Senate resolution also includes the effects of a number of 

other tax policies whose cost is offset over the period covered by the 

resolution. For instance, the resolution reflects tax relief to make 

college education more affordable and reflects incentives to encourage the development of renewable energy, promote more conservation and energy efficiency, and reduce dependence on foreign energy supplies. In a similar fashion, the resolution assumes that tax 

provisions that have been routinely extended in the past will be extended and that their cost will be offset. 

In addition, the Senate resolution includes several reserve 

funds that provide for tax relief, including refundable tax relief and 

the extension of expiring tax relief, as long as the costs of these 

provisions are offset. These deficit-neutral reserve funds would accommodate, for instance, tax policies designed to encourage the 

continued production in the United States of advanced technologies, extend enhanced charitable giving from individual retirement accounts, make it easier for companies to use accumulated alternative minimum tax and research and development credits, reduce the cost of teacher out-of-pocket expenses for classroom supplies, encourage highly qualified teachers to serve in high-needs 

schools, extend existing energy tax incentives as well as provide additional incentives for clean-burning wood stoves, cellulosic ethanol 

production, plug-in hybrid vehicles, and energy-efficient buildings, 

products, and power plants. Deficit-neutral reserve funds in the 

resolution also address AMT reform and reducing the income 

threshold for the refundable portion of the child tax credit starting 

in 2009. 

The Senate resolution assumes that any additional revenues 

needed under the resolution can be achieved by closing the tax gap, 

shutting down abusive tax shelters, addressing offshore tax havens, 

and without raising taxes. To help close the tax gap and bolster Internal Revenue Service (IRS) enforcement, the resolution fully 

funds the President’s budget request for the IRS, including additional resources available through a discretionary cap adjustment 

that directs $490 million to IRS enforcement activities. 


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Conference Agreement 

The conference agreement includes $2.0 trillion in on-budget 

revenues for 2009, and $11.8 trillion over 2009–2013. (The corresponding revenue figures on a unified basis are $2.7 trillion for 

2009 and $15.6 trillion over five years.) The conference agreement 

provides immediate relief from the AMT, with its cost fully offset. 

The agreement supports tax relief to benefit the middle class—including extension of the child tax credit, 10 percent bracket, and 

marriage penalty relief—and provides for estate tax reform. In addition, the agreement reflects the effects of tax policies in other 

areas, such as energy and education tax incentives and the extension of expiring and expired provisions, whose costs are offset over 

the period covered by the resolution. Further, the agreement includes several deficit-neutral reserve funds that provide for a wide 

range of tax policies. 

The revenue level in the conference agreement is $340.570 billion below the levels under current law over 2008–2013. Revenue 

legislation is subject to House and Senate pay-as-you-go rules. In 

addition, the House reserve fund adjustment for revenue measures 

(section 220)—the House ‘‘trigger’’ mechanism—creates a second 

procedural hurdle in the House only, in addition to the pay-as-yougo rule, to ensure fiscal responsibility. 

NATIONAL DEFENSE: FUNCTION 050 

Function Summary 

The National Defense function includes the military activities 

of the Department of Defense (DoD), the nuclear weapons-related 

activities of the Department of Energy (DOE) and the National Nuclear Security Administration, and the national security activities 

of several other agencies such as the Selective Service, Coast 

Guard, and Federal Bureau of Investigation. The programs in this 

function include: the pay and benefits of active, Guard, and reserve 

military personnel; DoD operations including training, maintenance of equipment, and facilities; health care for military personnel and dependents; procurement of weapons; research and development; construction of military facilities, including housing; research on nuclear weapons; and the cleanup of nuclear weapons 

production facilities. 

House-passed Resolution 

The House resolution reflects a total of $542.5 billion in BA 

and $573.4 billion in outlays in 2009, and $2.8 trillion in BA and 

outlays over five years. There is no higher priority than the defense 

of our nation. The House resolution accordingly provides robust 

funding for Function 050 (National Defense). The House resolution 

calls, however, for a reallocation of resources to address the most 

severe threats facing the nation, to emphasize readiness, to guarantee first-rate health care for members of our armed forces, and 

to improve the quality of life of our troops and their families. The 

House resolution also calls for greater accountability at the Department of Defense. It includes assumptions on specific defense policy 

in Title V, section 502. 


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The National Commission on Terrorist Attacks Upon the 

United States (commonly referred to as the 9/11 Commission) identified terrorists with weapons of mass destruction as one of the nation’s gravest threats. It recommended that Congress supply more 

resources to secure nuclear weapons and the fissile materials used 

in making these weapons. It is the policy of the House resolution 

that non-proliferation programs, such as the Cooperative Threat 

Reduction program, be given greater priority and higher funding. 

As a result of our overseas deployments, military readiness has 

suffered, especially the readiness of our National Guard and Reserve. The Commission on National Guard and Reserve concluded 

in its final report, issued on January 31, 2008, that there are substantial shortcomings in the nation’s ability to respond during a 

national crisis. In view of this, the House resolution calls for greater attention to mitigating readiness shortfalls to ensure our military is ready when called upon. 

The country owes a great debt of gratitude to those who have 

sacrificed and to those who are currently sacrificing by serving in 

the Armed Forces. To honor their service, the country should not 

only support the troops when they are called to duty, but it should 

also improve the quality of life of the troops and their families, and 

ensure that the resources are available when they are discharged 

from service to provide them the excellent health care they deserve 

and the assistance they need to make the transition to civilian life. 

For that reason, the House resolution opposes TRICARE fee increases proposed by the President and calls for a substantial increase in funding for the veterans’ health care system. The House 

resolution provides funding to continue addressing problems such 

as those identified at Walter Reed Army Medical Center. The 

House resolution also calls for enhanced pay and benefits to improve the quality of life of the troops and their families, including 

emphasis on providing adequate funding for programs like the Yellow Ribbon Reintegration Program, which provides support and assistance to troops and their families while they are deployed and 

when they return from deployments to readjust to civilian life. 

The President’s 2009 budget is noncompliant with section 

1008, Public Law 109–364, the John Warner National Defense Authorization Act for Fiscal Year 2007, by excluding a full request for 

overseas military operations. The House resolution reaffirms section 1008. It also calls on the Administration to end the practice 

of including non-war requirements in funding requests for overseas 

military operations as a way to avoid making tradeoffs in the defense budget. The Congressional Budget Office reported in September 2007 that 40 percent of supplemental funds requested for 

Army ‘‘reset’’ (fixing and replacing equipment) was instead used for 

upgrading the capability of weapons systems and procuring new 

equipment to eliminate shortfalls, and in some cases, shortfalls 

that were long-standing. 

It is the policy of the House resolution that missile defense acquisition be funded at lower, but still adequate levels and development of space-based interceptors as part of the missile defense program should be de-emphasized. The House resolution also points 

out the need to restrain excessive cost and schedule growth in defense research, development, and procurement programs. DoD has 


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allowed the cost of its major acquisition programs to grow at an 

unsustainable rate. The Department’s major acquisition programs grew by more than $392 billion above their initial projections from 

2002 to 2007. 

The House resolution recognizes the need for DoD to root out 

wasteful spending with far more diligence. Eighteen years after 

passage of the Chief Financial Officers Act of 1990, DoD still cannot pass a standard audit. The Department cannot adequately 

track what it owns or what it spends in its annual budgets. DoD 

has awarded contracts for its foreign deployments that have been 

grossly more wasteful than domestic contracts, especially in Iraq. 

Furthermore, DoD continues to fund weapons systems that were 

developed years ago to counter Cold War era threats, which may 

not be as effective in protecting the nation from today’s threats. 

Over the last seven years, the Government Accountability Office (GAO) has performed numerous audits of DoD’s financial management, contracting, and business practices. GAO made 2,864 recommendations, of which 1,260 have yet to be implemented. The 

House resolution assumes that enhancing accounting practices at 

DoD and implementing many GAO recommendations would yield 

substantial savings that could be applied to other security needs, 

including those mentioned above. 

The House resolution also encourages the committees with jurisdiction over defense to conduct more oversight with the objective 

of ferreting out wasteful practices, fraud, and abuse. It encourages 

the committees to require DoD to report to Congress on its progress 

in implementing GAO audit recommendations and to report on the 

applicability of Cold War era weapons to 21st century challenges. 

The House resolution also directs GAO to report by the end of the 

110th Congress on DoD’s progress in implementing its audit recommendations. 

The House resolution also recognizes the need for DoD to do 

a better job of reconciling its plans with its budget, including the 

Navy’s shipbuilding plan. Unrealistic expectations of technology development and ship designs have led to high unit costs and a plan 

that is not viable in terms of providing the Navy with an adequate 

ship force, or the shipbuilding industrial base with a sustainable 

level of work. The House resolution therefore encourages more congressional oversight to ensure the Administration puts more emphasis on developing a viable shipbuilding plan to maintain a naval 

ship force and a shipbuilding industrial base that meets the challenges of the 21st century. 

In addition to emphasizing nuclear nonproliferation programs 

at the Department of Energy, the House recognizes the importance 

of the Department’s Environmental Management program and that 

nuclear cleanup activities are a high priority. 

For mandatory programs, the House resolution matches the 

President’s request. 

Senate-passed Resolution 

The Senate resolution calls for a total of $612.5 billion in BA 

and $645.4 billion in outlays for 2009, and $2.9 trillion in BA and 

$3.0 trillion in outlays over five years. This includes full funding 

for the President’s requests for war costs in 2008 and 2009. 


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Excluding requested war funds, the Senate resolution provides $542.5 billion in BA for defense in 2009, an increase of $26.2 billion 

in BA over the 2008 level adjusted for inflation. 

The Senate resolution provides for a 3.4 percent pay raise for 

military personnel, and again rejects the President’s proposals for 

new TRICARE enrollment fees and deductibles for military retirees 

under the age of 65. The Senate resolution also assumes no less than $5.8 billion in 

funding for the Defense Environmental Cleanup account, an increase of $500 million compared to the President’s request. The environmental management program is charged with efficiently 

cleaning up the environmental damage resulting from 50 years of 

nuclear weapons production. The President’s budget underfunded 

cleanup efforts at several major sites addressed under this program 

including Hanford, Idaho Falls, Oak Ridge, and Savannah River. 

This increase brings total environmental management funding for 

nuclear site cleanup (including amounts in other budget functions) 

to $6.4 billion. 

The National Guard has a long history of outstanding service 

to our nation, and our nation’s reliance on the Guard has only increased since September 11, 2001. The Senate resolution assumes 

that the Department of Defense will provide at least $49.1 billion 

to recruit, train, equip, and sustain National Guard and Reserve 

units. The Appropriations Committee is encouraged to identify additional resources within the defense budget to address critical 

needs for National Guard equipment left unfunded in the President’s budget. 

Some servicemembers injured in Iraq and Afghanistan have 

been inappropriately given ‘‘personality disorder’’ discharges that 

cost them access to various veterans’ benefits and care. The defense 

funding level in the Senate resolution includes an amendment addressing the backlog at the military services’ respective Boards for 

the Correction of Military Records to allow these servicemembers 

to have their discharges promptly reviewed and, if appropriate, upgraded to ‘‘honorable’’ status. 

The Administration continues to seek war funding as an emergency, five years into the war in Iraq. The Armed Services and Foreign Relations Committees have indicated that they believe these 

costs should no longer be handled on an emergency basis. The Senate resolution includes a $70 billion cap adjustment provision that 

allows the Chairman of the Budget Committee to revise the discretionary spending cap for non-emergency appropriations related to 

the wars in Iraq and Afghanistan. The Senate resolution’s levels of 

deficits and debt assume that this cap adjustment is fully utilized. 

The existence of this cap adjustment would not prevent the Appropriations Committee from reporting emergency supplemental 

appropriations legislation if war costs exceed the allotted level. 

Emergency funding falls outside the discretionary spending caps 

included in the resolution, and hence does not require an adjustment. 

The Senate resolution also includes a program integrity cap 

adjustment dedicated to reducing waste in defense contracting. The 

cap adjustment allows the Chairman of the Budget Committee to 

increase the discretionary spending cap by up to $100 million to acVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00082 Fmt 6601 Sfmt 6601 E:\HR\OC\HR659.XXX HR659

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commodate legislation appropriating funding for the Department of 

Defense for additional activities to reduce waste, fraud, abuse and 

overpayments in defense contracting; achieve the legal requirement 

for the Pentagon to submit auditable financial statements; reduce 

waste by improving accounting for and ordering of spare parts; or 

subject contracts performed outside the United States to the same 

ethical standards as those performed domestically. When billions of 

dollars are wasted due to poor contracting practices, ordering of 

unneeded spare parts, or other waste, fraud and abuse, it is our 

troops that suffer. 

Conference Agreement 

The conference agreement for Function 050 includes a total of 

$542.5 billion in BA and $573.4 billion in outlays in 2009, and $2.8 

trillion in BA and outlays over five years. The conference agreement does not assume enactment of the President’s proposals for 

new TRICARE enrollment fees and deductibles for military retirees 

under the age of 65. Consistent with both the House- and Senatepassed resolutions, the conference agreement affirms the need for 

increased emphasis on programs to provide support to troops and 

their families while troops are deployed and to assist with reintegration when troops return from deployments. The conference 

agreement also reaffirms the importance of adequate funding for 

atomic energy defense environmental cleanup activities. 

For mandatory programs, the conference agreement is consistent with current law. 

The conference agreement reflects the cost of overseas deployments and other activities in Function 970, as in the House-passed 

resolution. 

The conference agreement also includes two deficit-neutral reserve funds (section 202 and section 203 in the House, and section 

225 and section 226 in the Senate) to accommodate initiatives related to meeting our commitments to the nation’s military personnel and veterans, and their survivors. 

The conference agreement includes a statement of policy on defense issues (section 402) that outlines key priorities to be funded 

within the defense allocation and the need for the Department of 

Defense to do a better job of reining in wasteful spending, particularly with regard to contracting practices and continuing funding of 

Cold War era weapons systems that may not be as effective against 

today’s threats. Consistent with the Senate-passed resolution, the 

statement of policy also calls for expediting review of cases involving former servicemembers suffering from post traumatic stress 

disorder or a traumatic brain injury and whose discharge from 

service was handled erroneously, resulting in a loss of benefits or 

care. 

INTERNATIONAL AFFAIRS: FUNCTION 150 

Function Summary 

Function 150 covers funding for U.S. international activities, 

including: operating and securing U.S. embassies and consulates 

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ance to fledgling democracies; promoting U.S. exports abroad; making U.S. payments to international organizations; and contributing 

to international peacekeeping efforts. The major agencies in this 

function include the Departments of State, Agriculture, and the 

Treasury; the U.S. Agency for International Development; and the 

Millennium Challenge Corporation. 

House-passed Resolution 

The House resolution calls for a total of $37.1 billion in BA and 

$35.7 billion in outlays for 2009, and for $196.0 billion in BA and 

$186.8 billion in outlays over five years. The function’s negative 

mandatory budget authority and outlay levels reflect receipts of the 

foreign military sales trust fund, the repayment of loans and credits by foreign nations, and the liquidation of economic assistance 

loans, foreign military financing loans, Export-Import Bank loans, 

and housing and other credit guaranty programs. 

The House resolution’s discretionary budget authority for 2009 is $4.0 billion (11.6 percent) above the 2008 level excluding emergencies and $3.3 billion (9.6 percent) more than the amount needed 

to maintain purchasing power at the 2008 level. The House resolution matches the President’s Function 150 request for HIV/AIDS 

relief. The House resolution also provides funding for the Department of State to hire a significant number of new staff to strengthen the United States’ diplomacy and national security. 

Consistent with the President’s budget, the House resolution provides $2.6 billion for Foreign Military Financing (FMF) for 

Israel. The United States signed a new agreement with Israel in 

2007 to provide $30 billion in FMF over ten years. 

The House resolution provides additional funding above the 

President’s requested level for 2009 for the McGovern-Dole International Food for Education and Child Nutrition Program. This additional funding will be used to maintain and expand the number 

of children, especially girls, who benefit from this program as food 

and transportation costs rise. 

The House notes the importance of robust funding for child 

survival and health programs, development assistance, and the 

United States’ contributions to international organizations and 

peacekeeping. 

The House notes the large amount of funding for the Millennium Challenge Corporation (MCC) that remains unobligated or 

unspent. MCC has received about $7.5 billion in total appropriations from 2004 through 2008. 

The House recognizes the humanitarian problem of millions of 

Iraqis who are refugees in neighboring countries or are internally 

displaced in Iraq. 

The House notes the strong support for H.R. 1595, the Guam 

World War II Loyalty Recognition Act, which the House approved 

on May 8, 2007. The bill authorizes compensation to the Guamanian victims of the Imperial Japanese military occupation during 

World War II. 

Senate-passed Resolution 

The Senate resolution calls for a total of $38.6 billion in BA 

and $39.5 billion in outlays in 2009, and $184.5 billion in BA and 


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$183.4 billion in outlays over five years, excluding emergencies. 

The amount provided in 2009 is $2 million less than the President’s request. 

Overall, the Senate resolution assumes a U.S. contribution to 

the Global Fund for HIV/AIDS, Tuberculosis and Malaria of $1.35 

billion. In addition, the Senate resolution assumes additional funds 

will be provided to respond to international appeals for Iraqi refugee assistance, and for victims of humanitarian disasters in Africa 

and the Middle East. 

Conference Agreement 

The conference agreement provides a total of $37.2 billion in 

BA and $35.7 billion in outlays for 2009, and $190.2 billion in BA 

and $182.6 billion in outlays over five years, excluding emergencies. The conference agreement provides $38.3 billion in BA for 

2009 for discretionary programs, which is $3.3 billion (9.6 percent) 

more than the amount needed to maintain purchasing power at the 

2008 level, excluding emergencies. (The total BA and outlay levels 

are lower than the discretionary BA and outlay levels because this 

function has negative mandatory BA and outlay levels, reflecting 

various U.S. receipts from other nations.) 

GENERAL SCIENCE, SPACE AND TECHNOLOGY: FUNCTION 

250 

Function Summary 

The General Science, Space, and Technology function includes 

funding for the National Aeronautics and Space Administration 

(NASA), except aviation programs, the National Science Foundation (NSF), as well as programs in the Department of Energy 

(DOE) Office of Science. 

House-passed Resolution 

The House resolution calls for a total of $29.9 billion in BA and 

$28.7 billion in outlays for 2009, and for $162.7 billion in BA and 

$159.5 billion in outlays over five years. Funding in Function 250 

exceeds the funding levels in the President’s budget and the current services level for all five years in the budget window. Additional increases for scientific research and education are included 

in Function 270 (Energy), Function 300 (Environment and Natural 

Resources), Function 350 (Agriculture), Function 370 (Commerce 

and Housing Credit), Function 400 (Transportation), Function 500 

(Education, Training, Employment, and Social Services), and Function 550 (Health), all of which receive more funding than the President requested. These increases will support the goals of the House 

Leadership’s Innovation Agenda and the America COMPETES Act: 

To put NSF funding on a path toward doubling, to train more 

qualified science and math teachers, and to invest in basic research 

on energy technologies. 

Senate-passed Resolution 

The Senate resolution calls for a total of $30.5 billion in BA 

and $29.0 billion in outlays for 2009, and $154.9 billion in BA and 

$153.9 billion in outlays over five years. 


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The Senate resolution assumes $18.7 billion for NASA, $1 billion above the President’s 2009 request. This level of funding reflects the ongoing need to reimburse NASA for the catastrophic loss 

of Space Shuttle Columbia as well as the costs of investigating the 

Columbia tragedy. The United States’ goals for space exploration 

were defined in the President’s ‘‘Vision for Space Exploration’’ and 

included in the National Aeronautics and Space Administration 

Authorization Act of 2005, which is scheduled to be updated and 

renewed during the current session of Congress. The Senate resolution recognizes the importance of our nation’s space program and 

endorsed the Act’s balanced goals of exploration, science and aeronautics. The Act calls for retirement of the Space Shuttle by 2010 

and launching the Crew Exploration Vehicle (CEV) as close to 2010 

as possible. NASA currently projects that the CEV will not be operational before 2015, thus creating a five-year gap in U.S. human 

space flight capability. The Senate resolution recognizes the strategic importance of uninterrupted access to space and supports efforts to reduce this five-year gap in U.S. human space flight. 

In addition, the Senate resolution fully funds the President’s 

2009 request for programs authorized in the America COMPETES 

Act. These programs help to ensure that the U.S. maintains its 

technological innovation advantage in the global economy. 

Conference Agreement 

The conference agreement includes $30.6 billion in BA and 

$29.1 billion in outlays in 2009, and $164.8 billion in BA and 

$161.5 billion in outlays over five years. The conference agreement 

provides significant increases in this function in every year within 

the budget window for competitiveness programs that support the 

goals of the COMPETES Act and other Innovation programs, with 

additional resources provided in other functions. In addition, for 

NASA, the conference agreement recognizes the contributions of 

our nation’s space program and the strategic importance of uninterrupted access to space. The conference agreement provides $18.7 

billion for NASA, $1 billion above the President’s budget in 2009, 

and significant increases in the outyears. 

ENERGY: FUNCTION 270 

Function Summary 

Function 270 covers energy-related programs including research and development, environmental clean-up, and rural utility 

loans. Most of these programs are within the Department of Energy (DOE). This function covers about 20 percent of appropriated 

funding for DOE but does not include DOE’s national security activities, which are in Function 050 (National Defense), or its basic 

research and science activities, which are in Function 250 (General 

Science, Space and Technology). This function also includes the Agriculture Department’s Rural Utilities Service, the Tennessee Valley Authority, the Federal Energy Regulatory Commission, and the 

Nuclear Regulatory Commission. 


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House-passed Resolution 

The House resolution calls for a total of $4.7 billion in BA and 

$2.2 billion in outlays for 2009, and for $23.7 billion in BA and 

$16.2 billion in outlays over five years. The House resolution provides $1.1 billion in appropriated funding above the 2008 level and 

$1.2 billion above the President’s budget for 2009, funding that 

could be used for energy efficiency and renewable energy programs. 

The House resolution maintains the Weatherization Assistance 

Program, which the President’s budget unwisely terminates. 

The House resolution also invests in new initiatives for renewable energy and energy efficiency, emerging energy and vehicle 

technologies, carbon capture and sequestration, and worker training for green collar jobs. 

Senate-passed Resolution 

The Senate resolution calls for a total of $7.0 billion in BA and 

$2.8 billion in outlays for 2009, and $34.6 billion in BA and $25.0 

billion in outlays over five years. This funding level would provide 

a significant commitment of resources to invest in clean energy, 

create green collar jobs in our communities, and reduce our dependence on imported energy. The resolution assumes $8.45 billion 

in 2009 energy discretionary spending. This would represent the 

highest discretionary spending level for the energy function since 

1981. 

The Senate resolution includes $2.7 billion to invest in green 

jobs in our nation’s communities (including $100 million in Function 500). This funding level could accommodate significant increases in a variety of loan guarantee and grant programs which 

would fund energy efficiency and conservation activities, the production of fuel efficient vehicles, worker training programs, and 

biofuels production. These programs were authorized in the Energy 

Independence and Security Act of 2007 and not adequately funded 

in the President’s budget. Funding these programs will move our 

nation towards energy independence, cleaner energy, and energy 

efficiency while also developing new industries and creating green 

jobs. The resolution also assumes funding increases for similar programs authorized in the Energy Policy Act of 2005. 

The Senate resolution assumes approximately $2 billion for 

DOE’s Energy Efficiency and Renewable Energy program. This 

funding level is $738 million above the President’s request and 

would accommodate significant increases for programs such as 

wind, solar, geothermal, biomass and biorefinery R&D, hydrogen, 

and vehicle/building technologies. This funding level would also 

provide $450 million for the Weatherization Assistance Program, a 

program which was zeroed out in the President’s budget. The resolution significantly increases funding for the Energy Efficiency and 

Conservation Block Grant Program and Energy Grants for Universities and Institutions. 

The Senate resolution includes significant increases for fossil 

energy R&D. This funding would provide additional resources for 

programs such as carbon sequestration and clean coal research. 

The resolution also significantly increases funding for DOE’s Office 

of Electricity Delivery and Energy Reliability. 


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The Senate resolution supports consideration by the Budget 

Committees of the reclassification of receipts for the annual operating expenses of Southeastern, Southwestern, and Western Area 

Power Administrations. By reclassifying the receipts, power rates 

will become more closely linked to the annual appropriations they 

fund. This direct link will promote long-term planning and improve 

the overall efficiency and reliability of the federal power program. 

The Senate resolution includes a deficit-neutral reserve fund 

for legislation that would decrease greenhouse gas emissions, reduce our nation’s dependence on imported energy, produce green 

jobs, or preserve or protect national parks, oceans, or coastal areas. 

The legislation may include tax legislation. The resolution also includes deficit-neutral reserve funds for legislation that would improve energy efficiency and production or provide for investments 

in energy infrastructure. 

Conference Agreement 

The conference agreement provides a total of $6.5 billion in BA 

and $2.8 billion in outlays for 2009, and $32.6 billion in BA and 

$22.9 billion in outlays over five years. The conference agreement 

provides $7.7 billion for discretionary programs in this function. 

This amount is $2.8 billion more than the President’s proposed 

funding level for 2009. (The total BA and outlay levels are lower 

than the discretionary BA and outlay levels because this function 

has negative mandatory BA and outlay levels, reflecting that the 

U.S. government collects more money than it spends marketing 

federally produced power and collects fees from commercial nuclear 

reactors.) 

The conference agreement includes $2.0 billion to create green 

collar jobs in our nation’s communities. The conference agreement 

includes a significant commitment of resources to invest in cleaner 

energy, promote renewable energy and energy efficiency, and reduce our nation’s dependence on imported energy. It also provides 

increases for the Weatherization Assistance Program and emerging 

energy technologies such as carbon capture and sequestration. 

The conference agreement includes deficit-neutral reserve 

funds to accommodate energy legislation in both the House and the 

Senate. 

NATURAL RESOURCES AND ENVIRONMENT: FUNCTION 300 

Function Summary 

The Natural Resources and Environment function consists of 

funding for water resources, conservation, land management, pollution control and abatement, and recreational resources. Major departments and agencies in this function are the Department of the 

Interior (including the National Park Service, the Bureau of Land 

Management, the Bureau of Reclamation, the Fish and Wildlife 

Service, and the Minerals Management Service), conservation-oriented and land management agencies within the Department of 

Agriculture (including the Forest Service), the National Oceanic 

and Atmospheric Administration at the Department of Commerce, 

the Army Corps of Engineers, and the Environmental Protection 

Agency (EPA). 


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House-passed Resolution 

The House resolution calls for a total of $38.7 billion in BA and 

$35.6 billion in outlays for 2009, and for $179.2 billion in BA and 

$182.2 billion in outlays over five years. The House resolution rejects the President’s deep and misguided cuts to priority programs, 

such as the Land and Water Conservation Fund, the Fish and 

Wildlife Service’s wildlife refuge system, the EPA’s Clean Water 

State Revolving Fund and other grants to States and Tribes to address water and air quality, and other EPA programs. It also includes funding to address high-priority brownfield redevelopment 

concerns. In addition, the House resolution accommodates the 

President’s emergency Army Corps spending for efforts related to 

Hurricane Katrina rebuilding. Additionally, the House resolution 

recognizes that in recent years, fire suppression costs have overwhelmed the Forest Service’s budget, and that Congress should 

work to identify solutions to this problem and to address the impact of increasing fire suppression costs. 

The House resolution includes deficit-neutral reserve funds for 

Secure Rural Schools and Payments in Lieu of Taxes, San Joaquin 

River Restoration and Navajo Nation Water Rights Settlements, 

and the establishment of the National Park Centennial Fund. Additional funding addressing environmental quality is accommodated 

in the House resolution’s deficit-neutral renewable energy and energy efficiency reserve fund. 

Senate-passed Resolution 

The Senate resolution calls for a total of $39.8 billion in BA 

and $36.3 billion in outlays for 2009, and $182.9 billion in BA and 

$185.7 billion in outlays over five years. The Senate resolution includes approximately $7.9 billion for the EPA. This funding level 

will accommodate significant increases for programs such as Superfund and EPA’s programs to support clean and safe drinking water. 

The resolution rejects the President’s proposal to cut a variety of 

environmental protection programs. The resolution also rejects the 

President’s cuts to a variety of discretionary programs which fund 

climate change research. 

The Senate resolution provides significant increases for the 

Army Corps of Engineers and the Bureau of Reclamation and includes a deficit-neutral reserve fund to accommodate legislation 

that provides for investments in water infrastructure. The Senate resolution includes $5.8 billion in 2009 emergency 

funding for the Corps of Engineers to continue its Katrina-related 

recovery work in Louisiana. The Senate resolution also includes increases sufficient to fully fund ongoing Everglades Restoration Activities at the Army Corps of Engineers and the Department of the 

Interior. These additional funds are provided to commence construction of the Indian River Lagoon which received only planning 

funding in the President’s request. Additionally, these funds will 

provide increases to Modified Water Deliveries, the C–111 canal, 

and the Kissimmee River Restoration, all critical components of 

Everglades Restoration. 

The Senate resolution rejects the President’s proposal to cut 

crucial Great Lakes funding. The resolution recognizes the importance of the Great Lakes, as they make up 90 percent of the United 


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States’ surface fresh water and serve as a source of drinking water 

for over 35 million people. The Senate resolution also recognizes 

that the approximately 5,000 miles of U.S. shoreline along the 

Great Lakes is greater than that of either the Eastern or Western 

seaboard. Unfortunately, the Great Lakes continue to face unique 

and challenging problems such as toxic sediment remediation, 

invasive species, non-point source pollution, and habitat loss. The 

Senate resolution includes $175 million for Great Lakes programs 

including the Great Lakes Legacy Act, the Great Lakes Fish and 

Wildlife Restoration Act, Great Lakes Fishery and Ecosystem Restoration, Remedial Action Plan (RAP) Assistance, Great Lakes Environmental Research Lab and the Great Lakes Basin Program. 

The Senate resolution includes a reserve fund to invest in 

clean energy, preserve the environment, and provide for certain 

settlements. The reserve fund would accommodate legislation that 

would decrease greenhouse gas emissions, reduce our Nation’s dependence on imported energy, produce green jobs, or preserve or 

protect national parks, oceans, or coastal areas. It would also accommodate legislation that would fulfill the purposes of the San 

Joaquin River Restoration Settlement Act or implement a Navajo 

Nation water rights settlement and other provisions authorized by 

the Northwestern New Mexico Rural Water Projects Act. 

The Senate resolution rejects the President’s cuts to numerous 

programs at the Department of the Interior and the Forest Service. 

The Senate resolution reflects concerns that, in recent years, the 

President’s budget has significantly underestimated fire suppression costs. The Senate resolution also responds to concerns that increasing fire suppression costs are having a negative impact on 

funding levels for other discretionary programs at agencies such as 

the Forest Service. The funding levels in the resolution assume 

that if the severity of the fire season requires additional funding, 

wildland fire suppression activities will be funded for 2009 at no 

less than $500 million above the ten-year average. 

The Senate resolution does not assume savings from proposals 

to permit oil and gas leasing in the Arctic National Wildlife Refuge. 

The Senate resolution also does not assume any savings from the 

President’s proposal to sell federal lands. The Senate resolution includes a deficit-neutral reserve fund that would accommodate legislation that terminates deductions from mineral revenue payments 

to states. 

The Senate resolution rejects the proposal in the President’s 

budget to reallocate the repayment of the capital costs of the PickSloan Missouri Basin irrigation program to power customers. The 

Senate resolution recognizes the importance of the Bureau of Reclamation rural water program to support ongoing Municipal, Rural, 

and Industrial (MR&I) systems for the Great Plains Region. The 

Bureau of Reclamation supplies drinking water to 2.6 million people in the Great Plains region and is encouraged to prioritize the 

completion of the Pick-Sloan Missouri Basin Program—Garrison 

Diversion Unit, Mni Wiconi, Lewis and Clark, Perkins County, Fort 

Peck Reservation/Dry Prairie, and Rocky Boy’s/North Central rural 

water system projects. The Senate supports funding these vital 

rural water development projects at a level that is as close to $306 

million as possible. 


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The Senate resolution includes increases for the United States 

Geological Survey and Endangered Species Act assistance. 

Conference Agreement 

The conference agreement includes a total of $40.5 billion in 

BA and $36.9 billion in outlays for 2009, and $187.5 billion in BA 

and $189.5 billion in outlays over five years. 

The conference agreement includes significant increases for 

natural resources and environment programs, including a variety 

of programs at the EPA. The agreement provides additional resources for agencies such as the Army Corps of Engineers and the 

Bureau of Reclamation to invest in national water infrastructure 

priorities. It also increases funding for a number of other programs 

throughout the Department of the Interior and the Forest Service. 

The funding levels in the conference agreement assume that if the 

severity of the fire season requires additional funding, wildland fire 

suppression activities will be funded for 2009 at a level that is 

above the ten-year average. 

AGRICULTURE: FUNCTION 350 

Function Summary 

The Agriculture function includes farm income stabilization, 

agricultural research, and other services administered by the U.S. 

Department of Agriculture. The discretionary programs include research and education programs, economics and statistics services, 

administration of the farm support programs, farm loan programs, 

meat and poultry inspection, and a portion of the Public Law 480 

international food aid program. The mandatory programs include 

commodity programs, crop insurance, and certain farm loans. 

House-passed Resolution 

The House resolution calls for a total of $21.5 billion in BA and 

$21.3 billion in outlays for 2009, and for $110.0 billion in BA and 

$106.1 billion in outlays over five years. The budget resolution provides greater funds than the President to ensure sufficient resources to bolster commodity support, agricultural research, and 

animal and plant inspection programs. The House resolution also 

assumes sufficient resources for the farm bill, providing resources 

for such objectives as to secure an economic safety net for agricultural producers, conserve our natural resources, and address nutrition needs. 

Senate-passed Resolution 

The Senate resolution reflects a total of $21.4 billion in BA and 

$21.1 billion in outlays for 2009, and $108.9 billion in BA and 

$105.0 billion in outlays over five years. With the 2002 Farm Bill 

expiring, the Senate resolution provides a deficit-neutral reserve 

fund for the reauthorization of agricultural programs. To address 

the needs of rural America and promote new sources of renewable 

energy from U.S. farm products, it would provide a $15.0 billion 

deficit-neutral reserve fund for the 2008 through 2013 period to reauthorize the Farm Bill. The reauthorization of the Farm Bill will 

provide an economic safety net for agricultural producers, enhance 


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the stewardship of our natural resources, address domestic nutrition needs, increase agricultural research, and improve our export 

competitiveness. 

Conference Agreement 

The conference agreement calls for a total of $22.6 billion in 

BA and $22.3 billion in outlays for 2009, and for $109.9 billion in 

BA and $103.6 billion in outlays over five years. For discretionary 

spending, the agreement matches CBO’s baseline estimate in 2009. 

For mandatory spending, the agreement incorporates the effects of 

the recently passed Farm Bill in this and several other functions 

where its effects appear. In addition, in the event further action is 

required by Congress, the conference agreement includes a Senateonly deficit-neutral reserve fund (section 221(g)(1)) for the Farm 

Bill and related changes. 

COMMERCE AND HOUSING CREDIT: FUNCTION 370 

Function Summary 

The Commerce and Housing Credit function includes mortgage 

credit, the Postal Service, deposit insurance, and other advancement of commerce (the majority of the discretionary and mandatory 

spending in this function). The mortgage credit component of this 

function includes housing assistance through the Federal Housing 

Administration, the Federal National Mortgage Association (Fannie 

Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), 

the Government National Mortgage Association (Ginnie Mae), and 

rural housing programs of the Department of Agriculture. The 

function also includes net Postal Service spending and spending for 

deposit insurance activities of banks, thrifts, and credit unions. 

Most of the Commerce Department is provided for in this function, 

including the International Trade Administration, the Bureau of 

Economic Analysis, the Patent and Trademark Office, the National 

Institute of Standards and Technology, the National Telecommunications and Information Administration, and the Bureau of the 

Census. Finally, the function also includes funding for independent 

agencies such as the Securities and Exchange Commission, the 

Commodity Futures Trading Commission, the Federal Trade Commission, the Federal Communications Commission, and the majority of the Small Business Administration. 

House-passed Resolution 

For the unified budget, the House resolution calls for a total 

of $10.8 billion in BA and $5.0 billion in outlays for 2009, and for 

$53.1 billion in BA and $16.9 billion in outlays over five years. (The 

budget resolution provides only the on-budget amounts, which are 

$9.6 billion in BA and $3.7 billion in outlays for 2009, and $51.3 

billion in BA and $15.1 billion in outlays over five years.) The discretionary function total includes significantly increased funding 

for the Bureau of the Census, reflecting continued preparation for 

the 2010 census, and continues to support agencies such as the National Institute of Standards and Technology. For 2009, and over 

the following four years, funding in Function 370 is above the level 

in the President’s budget. 


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Senate-passed Resolution 

The Senate resolution calls for a total of $10.6 billion in unified 

BA and $5.0 billion in unified outlays for 2009, and $46.3 billion 

in unified BA and $10.6 billion in unified outlays over five years. 

(The corresponding on-budget figures are $9.4 billion in BA and 

$3.8 billion in outlays for 2009, and $44.5 billion in BA over five 

years and $8.8 billion in outlays over five years.) The Senate resolution rejects the President’s proposal to cut assistance to America’s small businesses. The President proposes to eliminate the 

Manufacturing Extension Program, which helps small businesses 

adopt advanced manufacturing technologies. The Senate resolution 

restores funding to this vital program to the level authorized in the 

America COMPETES Act. The Senate resolution also provides robust resources for the Small Business Administration and the Census Bureau. 

Conference Agreement 

For the unified budget, the conference agreement calls for a total of $10.8 billion in BA and $5.0 billion in outlays for 2009, and 

for $53.1 billion in BA and $16.9 billion in outlays over five years. 

(The conference agreement provides only the on-budget amounts, 

which are $9.6 billion in BA and $3.7 billion in outlays for 2009, 

and $51.3 billion in BA and $15.1 billion in outlays over five years.) 

The discretionary function total includes significantly increased 

funding for the Bureau of the Census, reflecting continued preparation for the 2010 census, and continues to support programs such 

as the Manufacturing Extension Program and the Technology Innovation Program. For 2009, and over the following four years, funding in Function 370 is above the level in the President’s budget. 

TRANSPORTATION: FUNCTION 400 

Function Summary 

The Transportation function consists mostly of the programs 

administered by the Department of Transportation, including programs for highways, mass transit, aviation, and maritime activities. This function also includes two components of the Department 

of Homeland Security: the Coast Guard and the Transportation Security Administration. In addition, this function includes several 

small transportation-related agencies and the research program for 

civilian aviation at NASA. 

House-passed Resolution 

The House resolution calls for a total of $73.4 billion in BA and 

$80.4 billion in outlays for 2009, and for $389.4 billion in BA and 

$428.9 billion in outlays over five years. This resolution recognizes 

the importance of investing in infrastructure systems on which our 

Nation depends. Our society depends on transportation systems to 

integrate the economies of our communities. However, those systems are stressed from growing congestion and a backlog of repair 

needs. It is imperative that, in the last year of the current surface 

transportation authorization, the budget place these systems in a 

position to address the challenges of the 21st century. To that end, 

the House resolution fully funds the highway, transit, and highway 


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safety programs at the levels originally authorized in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 

for Users (SAFETEA–LU). Specifically, considering the country’s 

infrastructure challenges, the House resolution does not accept the 

President’s estimate of revenue aligned budget authority (RABA), 

or the further cuts in highway and transit funding included in the 

President’s 2009 budget. Rather, the House resolution continues to 

invest in infrastructure, laying the groundwork for a reauthorization of these programs in 2010. 

The House resolution increases funding for Amtrak and provides additional funding for grants to airports, in anticipation of a 

new aviation authorization. 

Senate-passed Resolution 

The Senate resolution calls for a total of $75.1 billion in BA 

and $83.3 billion in outlays for 2009, and $392.5 billion in BA and 

$434.6 billion in outlays over five years. The Senate resolution rejects the President’s cuts to transportation programs and fully 

funds the highway, transit, and highway safety programs authorized in SAFETEA–LU for 2009. The Senate resolution also provides 

an additional $7 billion for ‘‘ready-to-go’’ infrastructure projects. 

Additionally, the Senate resolution provides $1.8 billion in BA for 

Amtrak, a funding level that is $1 billion above the President’s request. Amtrak is a vital link to many small communities, and the 

Senate resolution will help Amtrak pay off debt and continue to improve its operations. 

Conference Agreement 

The conference agreement calls for a total of $74.7 billion in 

BA and $80.8 billion in outlays for 2009, and for $392.0 billion in 

BA and $430.7 billion in outlays over five years. This agreement 

recognizes the importance of investing in infrastructure systems on 

which our Nation depends. Our society depends on transportation 

systems to integrate the economies of our communities. However, 

those systems are stressed from growing congestion and a backlog 

of repair needs. The conference agreement fully funds the highway, 

transit, and highway safety programs at the levels originally authorized in SAFETEA–LU. Specifically, considering the country’s 

infrastructure challenges, the agreement does not accept the President’s estimate of RABA, or the further cuts in highway and transit funding included in the President’s 2009 budget. Rather, the 

agreement continues to invest in infrastructure, laying the groundwork for a reauthorization of these programs in 2010. 

The conference agreement provides $1.8 billion in BA for Amtrak and provides additional funding for grants to airports, in anticipation of a new aviation authorization. 

COMMUNITY AND REGIONAL DEVELOPMENT: FUNCTION 

450 

Function Summary 

The Community and Regional Development function includes 

federal programs to improve community economic conditions, promote rural development, and assist in federal preparations for and 


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response to disasters. This function provides appropriated funding 

for the Community Development Block Grant, Department of Agriculture rural development programs, the Bureau of Indian Affairs 

(BIA), the Federal Emergency Management Agency (FEMA) (including homeland security grants), and other disaster mitigation 

and community development-related programs. It also provides 

mandatory funding for the federal flood insurance program. 

House-passed Resolution 

The House resolution calls for a total of $14.6 billion in BA and 

$24.3 billion in outlays for 2009, and for $75.7 billion in BA and 

$95.3 billion in outlays over five years. The budget resolution provides substantially more than the President’s 2009 discretionary 

funding level for Function 450, rejecting the President’s deep cuts 

to the Community Development Block Grant program, first responder grants, and rural development. 

Senate-passed Resolution 

The Senate resolution calls for a total of $15.2 billion in BA 

and $24.5 billion in outlays for 2009, and $77.7 billion in BA and 

$96.9 billion in outlays over five years. This level restores cuts proposed in the President’s budget for community development programs and several Department of Homeland Security grant programs, including first responder grants. In addition, the Senate 

resolution includes increases in funding for interoperable communications equipment grants, FEMA operations and management, 

and BIA tribal justice programs. 

Conference Agreement 

The conference agreement includes a total of $15.2 billion in 

BA and $24.4 billion in outlays for 2009, and $78.0 billion in BA 

and $97.1 billion in outlays over five years. The conference agreement rejects the President’s deep cuts to community and rural development programs, including the Community Development Block 

Grant, and to several Department of Homeland Security grant programs, including first responder grants. The agreement accommodates higher funding for programs such as interoperable communications equipment grants, FEMA operations and management, a 

new Department of Homeland Security headquarters, and BIA tribal justice programs. 

EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL 

SERVICES: FUNCTION 500 

Function Summary 

The Education, Training, Employment and Social Services 

function includes funding for the Department of Education, as well 

as programs in the Department of Health and Human Services 

(HHS) and the Department of Labor. This function provides funding for elementary and secondary, career and technical, and postsecondary educational programs; job training and employment 

services; children and family services; and statistical analysis and 

research related to these areas. It also contains funding for the Library of Congress and independent research and arts agencies such 


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as the Corporation for Public Broadcasting, the Smithsonian Institution, the National Gallery of Art, the John F. Kennedy Center for 

the Performing Arts, the National Endowment for the Arts, and the 

National Endowment for the Humanities. 

House-passed Resolution 

The House budget resolution calls for a total of $95.2 billion in 

BA and $90.9 billion in outlays for 2009, and for $513.0 billion in 

BA and $500.3 billion in outlays over five years. The House resolution specifically rejects the President’s cuts to education funding, 

including his plan to eliminate many education programs, including all vocational education programs. The House resolution also 

rejects the President’s steep cuts to job training and social services 

programs—programs needed now more than ever when the economy is slowing and the cost of living is rising. 

In contrast to the President’s funding cuts, the House budget 

resolution makes a down payment toward addressing long-standing 

needs in education, training, employment, and social services. To 

that end, the House resolution provides an appropriated program 

level for Function 500 that is $7.1 billion above the 2009 level in 

the President’s budget. 

The House resolution’s increased funding could be used to support vital assistance to help children learn and succeed. Increased 

funding could support key programs such as Head Start, Impact 

Aid, and the Individuals with Disabilities Education Act. It also 

could support the No Child Left Behind Act programs to ensure 

that children can read and achieve at grade level, including programs such as Title I, school improvement programs, teacher quality improvement, and education technology state grants. Finally, 

the House resolution’s funding increase for education can help 

make college more affordable and accessible by raising the maximum Pell grant, maintaining Supplemental Educational Opportunity Grants and Perkins Loans, and broadening access to Historically Black Colleges and Universities as well as Hispanic-serving 

institutions and other minority-serving institutions, which continue 

to make important contributions towards increasing the percentage 

of minority students gaining a college degree. 

Increased funding could be used to enhance funding for the 

Workforce Investment Act programs, which provide important job 

training and assistance. It could also support training for green collar jobs in renewable energy and energy efficiency fields. Other aspects of the Democratic leadership’s innovation agenda could also 

be supported, including math and science education, development 

of basic and applied research, as well as demonstrations of effective 

approaches to innovative learning such as those in H.R. 3631, the 

Revolutionizing Education Through Digital Investment Act of 2007. 

The House resolution rejects the President’s proposed cuts to 

the Corporation for Public Broadcasting, and provides a funding 

level that could be used to support an increase. The House continues to support two-year advance funding for the Corporation. 

The House resolution also contains a reserve fund to accommodate legislation that makes college more affordable, consistent with 

the House pay-as-you-go rule. 


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Senate-passed Resolution 

The Senate resolution calls for a total of $94.7 billion in BA 

and $91.3 billion in outlays for 2009, and $515.0 billion in BA and 

$502.2 billion in outlays over five years. 

The Senate-passed budget resolution recognizes that strong 

education and training programs at all levels are critical for building a highly skilled workforce that can compete in the global marketplace. It makes this effort a high priority by providing an increase for discretionary education and training program-level funding of $9.3 billion above the President’s request, or $6 billion above 

2009 baseline levels. 

The Senate-passed resolution rejects the President’s proposed 

cuts in education, training and social services, including his proposal to eliminate programs and slash resources for the Corporation for Public Broadcasting. It assumes that additional funding 

will be invested in critical areas from birth through post-secondary 

education, including Head Start; key programs authorized by the 

No Child Left Behind Act, especially Title I; the Individuals with 

Disabilities Education Act (IDEA); Pell Grants; and job training. 

The increased investments will: • ensure that more preschool children will be ready for 

school; • help grade schools, middle schools, and high schools 

close achievement gaps, increase graduation rates, and reduce 

the need for remedial education; • ensure that all schools can attract, train, and retain 

high-quality teachers and reduce class sizes; • keep our commitment to educate students with disabilities; • expand access to higher education by making college 

more affordable; • ensure that employers have increasingly well-educated 

employees that can compete in the global marketplace; and • expand job training opportunities to help workers respond to shifts in the economic landscape, including training 

for green jobs. 

With regard to the Department of Education, the Senate reso- lution increases overall program-level funding by $5.7 billion above 

the President’s requested level. In contrast, the President cuts De- partment of Education funding by $612 million in 2009, or one percent, below the 2008 inflation-adjusted level. To help schools meet 

the requirements of the No Child Left Behind Act and IDEA, the 

Senate resolution provides the largest increase for elementary and 

secondary education programs since 2002. In addition, the Senate 

resolution assumes an increase in the maximum Pell grant award, 

and fully funds the Pell shortfall. 

The Senate adopted amendments to increase funding for the 

Teacher Incentive Fund, adult literacy and civics programs, and 

programs under the Older Americans Act, including the Lifespan 

Respite Care Act at the Administration on Aging. 

The Senate resolution provides deficit-neutral reserve funds to 

facilitate enactment of legislation to improve college access and affordability, facilitate modernization of school facilities through renovation or construction bonds, reduce the cost of teachers’ out-ofVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00097 Fmt 6601 Sfmt 6601 E:\HR\OC\HR659.XXX HR659

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pocket expenses for school supplies, provide tax incentives for highly qualified teachers to serve in high-needs schools, improve student achievement during secondary education, and promote flexibility in existing federal education programs. 

Conference Agreement 

The conference agreement calls for a total of $94.3 billion in 

BA and $91.4 billion in outlays for 2009, and for $511.9 billion in 

BA and $500.7 billion in outlays over five years. The conference 

agreement rejects the cuts to education, training, and social services programs in the President’s 2009 budget, including the President’s proposal to eliminate many programs that boost student 

achievement, provide needed social services, and provide workers 

with training and assistance. In contrast to the President’s funding 

cuts, the conference agreement increases funds for vital programs, 

providing $8.4 billion more than the President’s budget for program 

year 2009. 

The conference agreement recognizes the importance of investing in strong education and training programs and supporting social services, particularly when the cost of living is rising rapidly 

and we are building a highly skilled workforce that can compete in 

the global marketplace. It therefore includes significant increases 

for education programs to help students from early childhood 

through post-secondary education, which include programs such as 

Head Start, Title I, services under the Individuals with Disabilities 

Education Act, Pell Grants, and other key programs. 

The conference agreement contains a deficit-neutral reserve 

fund for the House to accommodate legislation that makes college 

more affordable. It also includes a Senate reserve fund to facilitate 

enactment of legislation to make higher education more accessible 

or more affordable, facilitate modernization of school facilities 

through renovation or construction bonds, reduce the cost of teachers’ out-of-pocket expenses for school supplies, provide tax incentives for highly qualified teachers to serve in high-needs schools, 

improve student achievement during secondary education, and promote flexibility and accountability in federal education programs. 

HEALTH: FUNCTION 550 

Function Summary 

The Health function includes most direct health care service 

programs as well as funding for anti-bioterrorism activities, national biomedical research, protecting the health of the general 

population and workers in their places of employment, providing 

health services for under-served populations, and promoting training for the health care workforce. The major programs in this function include Medicaid, the State Children’s Health Insurance Program (SCHIP), health benefits for federal workers and retirees, the 

National Institutes of Health (NIH), the Food and Drug Administration (FDA), the Health Resources and Services Administration 

(HRSA), the Centers for Disease Control and Prevention (CDC), the 

Substance Abuse and Mental Health Services Administration 

(SAMHSA), the Indian Health Service (IHS), and the Agency for 

Healthcare Research and Quality. 


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House-passed Resolution 

The House resolution calls for a total of $306.8 billion in BA 

and $305.3 billion in outlays for 2009, and for $1.7 trillion in BA 

and $1.7 trillion in outlays over five years. The budget resolution 

rejects the Administration’s harmful cuts to Medicaid. 

The discretionary resources for Function 550 for 2009 represent an increase over both the 2008 level and the President’s 

2009 request, with a particular focus on NIH, CDC, FDA, and the 

Occupational Safety & Health Administration (OSHA). The House 

resolution increases resources for public health, which includes programs focused on addressing health promotion and disease prevention. Preventative health care measures and disease management 

have the potential to lead to more efficient use of health care 

spending, and reduced illness, as well as an improvement in the 

health of the public. The House resolution also includes increased 

funding for food safety, access to quality health care for underserved populations, and other important programs. 

Programs in Function 550 are also addressed in the House resolution’s deficit-neutral reserve funds for SCHIP and for Medicaid. 

Senate-passed Resolution 

The Senate resolution calls for a total of $313.1 billion in BA 

and $310.6 billion in outlays for 2009, and $1.7 trillion in BA and 

$1.7 trillion in outlays over five years. The Senate resolution includes increases above the 2008 enacted level adjusted for inflation 

and above the President’s request for NIH, HRSA, FDA, CDC, and 

IHS. Significant increases for Community Health Centers, health 

professions, and the National Health Service Corps within HRSA 

are also included. The Senate resolution rejects the President’s proposed cuts for Rural Health Activities in HRSA. The Senate resolution also supports funding demonstration programs to provide patient navigator services as authorized in the Patient Navigator, 

Outreach, and Chronic Disease Prevention Act under HRSA as well 

as funding to support research into the causes, diagnoses, and 

treatments for postpartum depression. The Senate resolution also 

includes increases for the Maternal and Child Health Block Grant, 

for autism research, education, and early detection, and for the 

organ transplantation program. In addition, the Senate resolution 

contains various health care related deficit-neutral reserve funds, 

including a reserve fund for SCHIP legislation. 

Conference Agreement 

The conference agreement includes a total of $310.3 billion in BA and $307.5 billion in outlays for 2009, and $1.7 trillion in BA 

and $1.7 trillion in outlays over five years. The conference agreement rejects the Administration’s harmful cuts to Medicaid. 

The discretionary resources for Function 550 for 2009 include 

increases above the 2008 enacted level adjusted for inflation and 

above the President’s request for NIH, HRSA, FDA, CDC, IHS, and 

OSHA. The conference agreement includes an increase for the Indian Health Service to help meet the health needs of American Indians and Alaska Natives. The conference agreement assumes additional FDA funding to give the agency resources to protect and 

promote the health of American families. Significant increases for 


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Community Health Centers, the National Health Service Corps, 

and health professions within HRSA are also included as well as 

increases for patient navigator services, the Maternal and Child 

Health Block Grant, and resources to enhance federal efforts on autism. The conference agreement increases resources for programs 

focused on addressing health promotion and disease prevention. 

Preventative health care measures and disease management have 

the potential to lead to more efficient use of health care spending, 

and reduced illness, as well as an improvement in the health of the 

public. 

Programs in Function 550 are also addressed in various deficitneutral reserve funds, including those addressing SCHIP and Medicaid. 

MEDICARE: FUNCTION 570 

Function Summary 

The Medicare function includes funding to administer and to 

provide benefits under the Medicare program. Medicare is a federal 

health insurance program that currently covers 44 million Americans aged 65 and older, as well as younger adults who are disabled 

or suffer from end-stage renal disease. 

Congress provides an annual appropriation for the costs of administering Medicare, including resources to conduct program integrity activities to guard against improper payments, fraud, and 

abuse. The remainder of spending in this function is mandatory 

and reflects payments to health care providers and private insurance plans, as well as beneficiary premiums and other receipts and 

payments to the Medicare trust funds, under the Part A Hospital 

Insurance (HI) program, the Part B Supplementary Medical Insurance (SMI) program, the Part C Medicare Advantage program, and 

the Part D Prescription Drug program. 

House-passed Resolution 

The House resolution reflects a total of $420.2 billion in BA 

and $420.0 billion in outlays in 2009, and $2.4 trillion in BA and 

$2.4 trillion in outlays over five years. 

The House resolution rejects the Administration’s harmful cuts 

to Medicare. The House resolution assumes the extension of Medicare premium assistance for qualified individuals with incomes between 120 and 135 percent of the federal poverty level and limited 

financial resources. The House resolution assumes that savings 

from Medicare program efficiency improvements will offset the 

costs of extending the premium assistance program as well as other 

initiatives to improve the Medicare program for beneficiaries. 

The House resolution assumes targeted assistance to hospitals 

with 100 beds or more that have faced a reduction in Medicare disproportionate share hospital payments due to assignment to a 

Micropolitan area. 

The House resolution provides a discretionary cap adjustment 

of $198 million for additional activities aimed at detecting and preventing Medicare fraud. The Health Care Fraud and Abuse Control 

program—a joint effort of the Department of Health and Human 

Services, the HHS Office of Inspector General, and the Department 


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of Justice—generated roughly $4 in program savings for every dollar spent in 2004 and 2005. 

The House resolution also contains a reserve fund to accommodate legislation for Medicare program improvements. 

Senate-passed Resolution 

The Senate resolution calls for a total of $420.4 billion in BA 

and $420.2 billion in outlays for 2009, and $2.4 trillion in BA and 

$2.4 trillion in outlays over five years. 

For 2009, the discretionary funding levels in this function include a discretionary cap adjustment of up to $198 million for program integrity activities of the Health Care Fraud and Abuse Control (HCFAC program) to address improper payments, fraud, and 

abuse in the Medicare program. 

In addition, the mandatory funding levels in this function assume Medicare savings of $1.3 billion in 2013, allowing for legislation to delay the Medicare trigger. Specific policies to enact these 

savings will be determined by the Senate Finance Committee. 

Conference Agreement 

The conference agreement reflects a total of $420.2 billion in 

BA and $420.0 billion in outlays in 2009, and $2.4 trillion in BA 

and $2.4 trillion in outlays over five years. Discretionary and mandatory spending levels in this function are consistent with the CBO 

baseline funding levels. 

For 2009, the discretionary funding levels in Function 920 include a discretionary cap adjustment of up to $198 million for program integrity activities of the Health Care Fraud and Abuse Control program, to address improper payments, fraud, and abuse in 

the Medicare program. 

INCOME SECURITY: FUNCTION 600 

Function Summary 

The Income Security function contains a range of income security programs including: 1) major cash and in-kind means-tested 

entitlements; 2) general retirement, disability, and pension programs excluding Social Security and veterans’ compensation programs; 3) federal and military retirement programs; 4) unemployment compensation; 5) low-income housing programs; and 6) other 

low-income support programs. Major federal entitlement programs 

in this function include unemployment insurance, food stamps, 

child nutrition, Temporary Assistance to Needy Families (TANF), 

foster care, child support enforcement, child care, Supplemental Security Income, and spending for the refundable portion of the 

Earned Income Credit. 

House-passed Resolution 

The House resolution calls for a total of $411.7 billion in BA 

and $414.0 billion in outlays for 2009, and for $2.1 trillion in BA 

and $2.1 trillion in outlays over five years. The discretionary resources for Function 600 represent an increase over both the 2008 

level and the President’s request. The funding will support efforts 

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erty and to provide assistance to those in need. The budget resolution includes additional funding to address the current shortfall in 

the project-based rental assistance program, prevent a shortfall in 

the tenant-based rental assistance program which would occur 

under the President’s budget, and improve supportive housing for 

the elderly, as in H.R. 2930 as passed by the House. The House 

resolution also specifically rejects the President’s cut to the LowIncome Home Energy Assistance Program (LIHEAP). 

Economic uncertainty and rising costs are increasing the need 

for food assistance for children and adults. The House budget resolution rejects the President’s proposals to terminate food stamps for 

390,000 working families and eliminate the Commodity Supplemental Food Program and notes that legislation that passed the 

House with bipartisan support was an appropriate first step toward 

ensuring that nutrition assistance keeps up with inflation and rising food prices. 

Mandatory programs in Function 600 are also addressed in the 

House resolution’s deficit-neutral reserve funds for trade adjustment assistance and unemployment insurance modernization, and 

child support enforcement. 

Senate-passed Resolution 

The Senate resolution calls for a total of $414.4 billion in BA 

and $419.0 billion in outlays for 2009, and $2.1 trillion in BA and 

$2.1 trillion in outlays over five years. The Senate resolution includes increases for the Low-Income Home Energy Assistance Program to continue providing heating and cooling assistance to over 

five million low income households, including the working poor, disabled persons, elderly, and families with young children. The Senate resolution rejects the President’s proposals to cut various housing assistance programs and includes significant resources for Section 8 housing assistance in order to address the funding shortfall 

for the project-based Section 8 program. The Senate resolution also 

provides increases for the Child Care Development Block Grant 

and for the Special Supplemental Nutrition Program for Women, 

Infants, and Children (WIC). The Senate resolution also includes 

several deficit-neutral reserve funds including reserve funds for up 

to an additional $5.0 billion in mandatory child care funding, for 

the reauthorization of the Temporary Assistance for Needy Families supplemental grants, for improvements to TANF, child welfare, 

or child support enforcement, for improvements to the unemployment compensation program, and the reauthorization of the trade 

adjustment assistance programs. 

Conference Agreement 

The conference agreement calls for a total of $415.5 billion in 

BA and $416.0 billion in outlays for 2009, and for $2.1 trillion in 

BA and $2.1 trillion in outlays over five years. The conference 

agreement supports a total funding level of $5.1 billion for 

LIHEAP—$3.1 billion in regular funding and $2 billion in contingency funding. Rising fuel costs have strained family budgets. The 

conference agreement level for LIHEAP will provide heating and 

cooling assistance to over five million low income households, including the working poor, disabled persons, elderly, and families 


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with young children. The conference agreement also recognizes that 

additional funding above the 2008 level adjusted for inflation will 

be needed for WIC. 

The conference agreement accommodates additional funding 

for the project-based rental assistance program shortfall and to increase funding for the tenant-based rental assistance program. The 

conference agreement also includes funding to improve supportive 

housing for the elderly, as in H.R. 2930 as passed by the House. 

Mandatory programs in Function 600 are addressed in several 

deficit-neutral reserve funds in the House and the Senate, including reserve funds for up to an additional $5.0 billion in mandatory 

child care funding, for reauthorization or expansion of TANF 

grants, for child welfare or child support enforcement, for modernization of the unemployment compensation program, and for the 

reauthorization of the trade adjustment assistance programs. 

SOCIAL SECURITY: FUNCTION 650 

Function Summary 

The Social Security function includes funding for the Old-Age, 

Survivors, and Disability Insurance (OASDI) programs, which provide earned Social Security benefits to nearly 50 million eligible retired workers, disabled persons, and their spouses and survivors. In 

addition, this function provides funding to the Social Security Administration (SSA) and the Office of the Inspector General (OIG) 

to administer the Social Security program and ensure program integrity. 

Under provisions of the Congressional Budget Act and the 

Budget Enforcement Act, the Old-Age and Survivors Insurance 

(OASI) trust fund and the Disability Insurance (DI) trust fund are 

off-budget and do not appear in the budget resolution totals. A 

small portion of spending in Function 650, the general fund transfer of income taxes on Social Security benefits to the trust funds, 

is considered on-budget and appears in the budget resolution totals. 

House-passed Resolution 

For the unified budget, the House resolution calls for a total 

of $654.3 billion in BA and $651.4 billion in outlays for 2009, and 

for $3.6 trillion in BA and outlays over five years. (The budget resolution provides only the on-budget amounts, which are $21.3 billion in BA and outlays for 2009, and $135.9 billion in BA and outlays over five years.) The House resolution rejects the President’s 

private account proposal for Social Security. 

The administrative budget for the SSA includes resources in 

Function 570 (Medicare) and Function 600 (Income Security) as 

well as Function 650. The House resolution assumes a $10.4 billion 

discretionary funding level for the administrative expenses of SSA 

and the OIG. The increased resources will enable SSA to address 

the significant number of individuals waiting for disability and 

hearing decisions and thereby reduce its unacceptable backlog in 

case reviews. 

The House resolution also accommodates an additional $240 

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ment for program integrity initiatives. The cap adjustment allows 

the agency to conduct an increasing number of Continuing Disability Reviews (CDRs) and Supplemental Security Income redeterminations. 

Senate-passed Resolution 

The Senate resolution calls for $21.3 billion in on-budget BA 

and outlays for 2009, and $135.9 billion in on-budget BA and outlays over five years. (The corresponding figures on a unified basis 

are $654.5 billion in BA and $651.7 billion in outlays for 2009 and 

$3.6 trillion in BA and outlays over five years.) This spending reflects the general fund transfer of income taxes on Social Security 

benefits to the trust funds. 

For 2009, the Senate resolution provides $5.5 billion in BA and 

$5.5 billion in outlays for SSA administrative expenses, as outlined 

in section 102(c) of the resolution, which represents a $240 million 

increase over the President’s request. The resolution also provides 

$150 million in additional one-time funding for SSA administrative 

expenses. The additional funding is intended to help address the 

serious backlog of Social Security disability claims and hearings, as 

well as other backlog workloads for which additional resources are 

needed. 

Conference Agreement 

For the unified budget, the conference agreement calls for 

$654.3 billion in BA and $651.4 billion in outlays for 2009, and $3.6 

trillion in BA and outlays over five years. (The conference agreement provides only the on-budget amounts, which are $21.3 billion 

in BA and outlays for 2009, and $136.0 billion in BA and outlays 

over five years.) The conference agreement rejects the President’s 

private account proposal for Social Security. 

For 2009, the conference agreement provides total net discretionary resources for the administrative expenses of SSA and the 

OIG (across all relevant functions) of $10.7 billion, $240 million 

above the President’s requested level. The total SSA funding level 

in the conference agreement assumes both the President’s full request for a cap adjustment in Function 920 for program integrity 

efforts (including CDRs and SSI redeterminations), and additional 

resources to address the serious backlog of disability claims and 

hearings, as well as other backlog workloads for which additional 

resources are needed. 

VETERANS BENEFITS AND SERVICES: FUNCTION 700 

Function Summary 

Function 700 covers the programs of the Department of Veterans Affairs (VA), including veterans’ medical care, compensation 

and pensions, education and rehabilitation benefits, and housing 

programs. It also includes the Department of Labor’s Veterans’ Employment and Training Service, the United States Court of Appeals 

for Veterans Claims, and the American Battle Monuments Commission. More than 99 percent of appropriated veterans’ funding 

goes to VA, and more than 85 percent of this funding is for VA 

medical care and hospital services. 


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House-passed Resolution 

The House resolution calls for a total of $93.3 billion in BA and 

$92.4 billion in outlays for 2009, and for $495.3 billion in BA and 

$492.2 billion in outlays over five years. For 2009, the House resolution provides $4.9 billion of discretionary budget authority over 

the 2008 level and $3.2 billion above the President’s 2009 budget. 

The House resolution reflects the very high priority that Congress 

places on adequately funding veterans’ medical care. The House 

resolution also rejects the health care enrollment fees and drug copayment increases proposed by the President’s budget. 

The House resolution provides full funding to support excellent 

health care for veterans. The House resolution provides funding to 

continue addressing problems such as those identified at Walter 

Reed Army Medical Center to improve military and veterans’ health care facilities and services. 

The House resolution provides funding in Function 700 above 

the President’s requested level for 2009 to address important priorities including veterans’ mental health, post-traumatic stress disorder, and traumatic brain injury. There have been many traumatic brain injuries in Iraq and Afghanistan. The House notes that 

there is legislation to address the prevalence of epilepsy among veterans, especially those with traumatic brain injury. Research conducted by VA and the Department of Defense found that about half 

of Vietnam veterans who suffered penetrating head injuries developed epilepsy. The House resolution also has additional funding for 

disability compensation claims processing so that VA can continue 

to address the inventory of pending claims. 

The House notes that many military service families are experiencing financial difficulties due to overseas military deployments 

and that Congress should consider ways to address these difficulties. 

Senate-passed Resolution 

The Senate resolution calls for a total of $93.3 billion in BA 

and $92.4 billion in outlays for 2009, and $490.9 billion in BA and 

$488.1 billion in outlays over five years. The Senate resolution provides $48.2 billion in BA in 2009 for discretionary veterans’ pro- grams, including medical care. This amount is $3.3 billion more 

than the President’s proposed funding level. The funding in the 

Senate resolution will ensure that the Veterans Health Administration within VA can provide the highest quality health care for all 

veterans. 

Over the past several years, the President has consistently underestimated the needs of veterans, and Congress has made up the 

shortfall. In 2005, the President’s budget underfunded the Veterans 

Health Administration, which required Congress to pass two supplemental funding bills. Last year, the nation was shocked to learn 

of the mistreatment of soldiers recuperating from wounds at the 

Walter Reed Army Medical Center. To address these and other 

funding shortfalls in the President’s budget, last year’s budget resolution paved the way for the largest funding increase in VA’s history. 

The Senate resolution also recognizes the difficulties veterans 

leaving active duty have in transitioning their medical records to 


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the VA. These administrative disconnects can have dramatic and 

sometimes dire consequences on our young men and women when 

they leave the military. It is also difficult for VA to evaluate and 

treat veterans because VA may not have a complete medical record. 

Therefore, the Senate resolution supports efforts to implement fully 

the Wounded Warrior Act, section 1635 in the National Defense 

Authorization Act. This provision requires the Department of Defense and VA to develop a ‘‘fully interoperable electronic personal 

health information system’’ as well as establish a joint program office to oversee the creation of this new healthcare system. 

Additionally, the Senate resolution recognizes that the President’s proposed funding for VA major construction projects will result in significant delays and cost-growth to on-going projects. 

Therefore, the Senate resolution provides robust resources for VA 

major projects. The Senate resolution also notes the importance of 

medical research at VA, including the Air Force Health Study, and 

provides the resources for this important priority. The Senate resolution also supports robust funding for State Veterans Cemeteries. 

Conference Agreement 

The conference agreement provides a total of $93.3 billion in 

BA and $92.5 billion in outlays for 2009, and $496.3 billion in BA 

and $493.1 billion in outlays over five years. The conference agreement provides $48.2 billion for 2009 for discretionary veterans’ programs, including medical care. This amount is $4.9 billion more 

than the 2008 enacted level, $3.7 billion more than the amount 

needed to maintain purchasing power at the 2008 level, and $3.3 

billion more than the President’s proposed funding level for 2009. 

Over five years (2009–2013) the agreement provides $39.0 billion 

more than the President’s budget. The conference agreement level 

enjoys the strong support of major veterans organizations, including the Independent Budget—which is developed by AMVETS, Disabled American Veterans, Paralyzed Veterans of America, and Veterans of Foreign Wars—the American Legion, Iraq and Afghanistan Veterans of America, and Vietnam Veterans of America. 

ADMINISTRATION OF JUSTICE: FUNCTION 750 

Function Summary 

The Administration of Justice function includes funding for 

federal law enforcement activities at the Department of Justice 

(DOJ) including criminal investigations by the Federal Bureau of 

Investigation (FBI) and the Drug Enforcement Agency (DEA). The 

function also includes funding for border enforcement by the Department of Homeland Security (DHS). Additionally, the function 

includes funding for civil rights enforcement and prosecution; federal block, categorical, and formula law enforcement grant programs to state and local governments; prison construction and operation; the United States Attorneys; and the federal judiciary. 

House-passed Resolution 

The House resolution calls for a total of $48.1 billion in BA and 

$47.9 billion in outlays for 2009, and for $252.1 billion in BA and 

$252.2 billion in outlays over five years. For Function 750, the 


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House resolution rejects the President’s repeated cut of local law 

enforcement programs. Instead, the function total includes enough 

resources to increase homeland security programs and provide for 

law enforcement programs, such as the State Criminal Alien Assistance Program (SCAAP)—and recognizes the importance of this 

critical reimbursement program. 

In addition to rejecting the repeated cuts to SCAAP in the 

President’s budget, the House resolution also rejects the President’s 

cuts to Community Oriented Policing Services (COPS) and Edward 

Byrne Memorial Justice Assistance Grants—both of which are important priorities for keeping our communities safe. The House resolution values the funding Byrne-JAG provides to local law enforcement at a time when many communities are combating problems 

including a methamphetamine epidemic and other crimes. 

In addition, the House resolution protects both our youth and 

victims of crime by restoring cuts to both juvenile justice and programs to prevent violence against women and by limiting amounts 

diverted from the Crime Victims Fund. The House resolution provides funding above the President’s budget level for 2009 for these 

purposes and to protect the border. 

Senate-passed Resolution 

The Senate resolution calls for a total of $49.4 billion in BA 

and $46.9 billion in outlays for 2009, and $246.9 billion in BA and 

$247.5 billion in outlays over five years. This level restores cuts 

proposed in the President’s budget and provides additional resources for several law enforcement grant programs such as COPS, 

including meth hotspot grants, and the Edward Byrne Memorial 

Justice Assistance Grant program. In addition, the Senate resolution restores cuts and provides additional resources to the State 

Criminal Alien Assistance Program, Violence Against Women Act 

programs, and DOJ Tribal Justice programs. The Senate resolution 

also includes increases in funding proposed in the President’s budget for border security. 

Conference Agreement 

The conference agreement calls for a total of $48.3 billion in 

BA and $48.1 billion in outlays for 2009, and for $247.5 billion in 

BA and $248.1 billion in outlays over five years. For Function 750, 

the agreement rejects the President’s repeated cuts and provides 

additional resources for law enforcement programs such as COPS, 

including meth hotspot grants, the Edward Byrne Memorial Justice 

Assistance Grant program, and SCAAP—an important reimbursement program for our state and local law enforcement agencies. 

In addition, the conference agreement protects both our youth 

and victims of crime by rejecting cuts to juvenile justice, programs 

to prevent violence against women, and DOJ tribal justice programs. The agreement provides funding for these purposes and to 

protect the border. 


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GENERAL GOVERNMENT: FUNCTION 800 

Function Summary 

The General Government function consists of the activities of 

the Legislative Branch, the Executive Office of the President, general tax collection and fiscal operations of the Department of the 

Treasury (including the IRS), the Office of Personnel Management, 

the property and personnel costs of the General Services Administration, and general purpose fiscal assistance to states, localities, 

the District of Columbia, and U.S. territories. 

House-passed Resolution 

The House resolution calls for a total of $23.5 billion in BA and 

$23.9 billion in outlays for 2009, and for $107.4 billion in BA and 

$107.5 billion in outlays over five years. The budget resolution includes a program integrity initiative to increase IRS tax compliance 

efforts to collect unpaid taxes from those who are not paying what 

they owe. Funding in this function could be used for items such as 

H.R. 3548, the Plain Language in Government Communications 

Act of 2007, to enhance citizen access to government information 

and services by establishing plain language as the standard style 

of covered government documents issued to the public. 

Senate-passed Resolution 

The Senate resolution calls for $24.5 billion in BA and $24.4 

billion in outlays for 2009, and $106.8 billion in BA and $106.9 billion in outlays over five years. The Senate resolution fully funds 

the President’s budget request for the IRS, including additional resources available through a discretionary cap adjustment that directs an additional $490 million to IRS enforcement activities. The 

Senate resolution includes funding to carry out the Freedom of Information Act (FOIA) by establishing the Office of Government Information Services at the National Archives. The Senate resolution 

also includes funding to construct a new headquarters for the Department of Homeland Security. 

The Senate resolution includes a deficit-neutral reserve fund to 

accommodate legislation that provides for the reauthorization of 

the Secure Rural Schools and Community Self-Determination Act 

of 2000, or makes changes to the Payments in Lieu of Taxes Act 

of 1976, or both. The Senate resolution also includes a deficit-neutral reserve fund for legislation that achieves savings by requiring 

that agencies increase their use of recovery audits. 

Conference Agreement 

The conference agreement includes $24.0 billion in BA and 

$24.4 billion in outlays for 2009, and $106.9 billion in BA and 

$107.0 billion in outlays over five years. It fully funds the President’s budget request for the IRS, including additional resources 

available through a discretionary cap adjustment (included in 

Function 920) that directs $490 million to IRS enforcement activities. The conference agreement includes a deficit-neutral reserve 

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tion Act of 2000, or makes changes to the Payments in Lieu of 

Taxes Act of 1976, or both. 

NET INTEREST: FUNCTION 900 

Function Summary 

The Net Interest function is entirely mandatory with no discretionary components. It consists primarily of the interest paid by the 

federal government to private and foreign government holders of 

U.S. Treasury securities. It includes the interest on the public debt 

after deducting the interest income received by the federal government from trust fund investments, loans and cash balances, and 

earnings of the National Railroad Retirement Investment Trust. 

House-passed Resolution 

For the unified budget, the House resolution calls for a total 

of $216.8 billion in BA and outlays for 2009, and for $1.3 trillion 

in BA and outlays over five years. (The budget resolution provides 

only the on-budget amounts, which are $334.2 billion in BA and 

outlays for 2009, and $2.0 trillion in BA and outlays over five 

years.) 

Since 2001, the federal government’s net interest payments on 

its debt have grown dramatically, becoming one of the largest and 

fastest-growing components of the federal budget, exceeding spending on education, veterans’ affairs, and homeland security combined. 

Senate-passed Resolution 

The Senate resolution calls for BA and outlays of $217.7 billion 

in unified net interest payments in 2009 and a total of $1.3 trillion 

over five years. (The on-budget totals for BA and outlays are $335.1 

billion for 2009 and $2.0 trillion over five years.) 

Conference Agreement 

For the unified budget, the conference agreement calls for a 

total of $217.0 billion in BA and outlays for 2009, and for $1.3 trillion in BA and outlays over five years. (The on-budget amounts are 

$334.4 billion in BA and outlays for 2009, and $2.0 trillion in BA 

and outlays over five years.) 

ALLOWANCES: FUNCTION 920 

Function Summary 

The Allowances function is used for planning purposes to address the budgetary effects of proposals or assumptions that cross 

several budget functions. Once such changes are enacted, the budgetary effects are distributed to the appropriate budget function. 

House-passed Resolution 

The House resolution calls for a total of $0.0 billion in BA and 

$0.3 billion in outlays for 2009, and for ¥$0.8 billion in BA and 

¥$0.3 billion in outlays over five years. The House resolution includes $1.0 billion in 2008 discretionary budget authority to cover 

unanticipated needs, should they arise. The House resolution also 


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includes $750 million in mandatory savings over six years. These 

savings reflect a reconciliation instruction to the Ways and Means 

Committee. To meet the instructions, savings can be achieved in 

any program within the Committee’s jurisdiction, other than Social 

Security, which reconciliation cannot impact. 

Senate-passed Resolution 

The Senate resolution calls for a total of ¥$14.9 billion in BA 

and ¥$4.1 billion in outlays for 2009, and ¥$49.6 billion in BA 

and ¥$43.7 billion in outlays over five years. 

Conference Agreement 

The conference agreement includes a total of ¥$13.2 billion in 

BA and ¥$6.5 billion in outlays for 2009, and ¥$63.2 billion in BA 

and ¥$54.8 billion in outlays over five years. These funding levels 

reflect adjustments for program integrity and other non-security 

adjustments. 

UNDISTRIBUTED OFFSETTING RECEIPTS: FUNCTION 950 

Function Summary 

The Undistributed Offsetting Receipts function includes major 

offsetting receipt items that would distort the funding levels of 

other functional categories if they were distributed to them. Examples of such items include the employer share of federal employee 

retirement benefits, outer continental shelf rents and royalties, and 

the sale of major assets. 

House-passed Resolution 

For the unified budget, the House resolution calls for a total 

of ¥$81.0 billion in BA and outlays for 2009, and for ¥$444.9 billion in BA and outlays over five years. (The budget resolution provides only the on-budget amounts, which are ¥$67.1 billion in BA 

and outlays for 2009, and ¥$366.9 billion in BA and outlays over 

five years.) The negative spending in Function 950 represents 

CBO’s baseline estimate of undistributed offsetting receipts. 

Senate-passed Resolution 

The Senate resolution calls for unified undistributed offsetting 

receipts of $81.0 billion in BA and outlays for 2009 and ¥$444.9 

billion in BA and outlays over five years. (The on-budget totals for 

BA and outlays are ¥$67.1 billion for 2009 and ¥$366.9 billion 

over five years.) The Senate resolution matches CBO’s baseline estimate of undistributed offsetting receipts. 

Conference Agreement 

For the unified budget, the conference agreement includes undistributed offsetting receipts of ¥$81.0 billion in BA and outlays 

for 2009, and ¥$444.9 billion in BA and outlays over five years. 

(The on-budget amounts are ¥$67.1 billion in BA and outlays for 

2009, and ¥$366.9 billion in BA and outlays over five years.) 


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OVERSEAS DEPLOYMENTS AND OTHER ACTIVITIES: 

FUNCTION 970 

Function Summary 

This function includes funding for overseas deployments and 

other activities. 

House-passed Resolution 

The House resolution includes, as a placeholder, an amount 

equal to the President’s pending request for 2008 and 2009 to account for any future House consideration of appropriations for overseas deployments and other activities. 

Senate-passed Resolution 

The Senate resolution did not include Function 970. 

Conference Agreement 

The conference agreement includes Function 970 in an amount 

equal to the President’s pending request for 2008 and 2009 as a 

placeholder to account for any future consideration of appropriations for overseas deployments and other activities. 

RECONCILIATION 

House-passed Resolution 

Section 201 of the House-passed resolution contains reconciliation instructions. Reconciliation is a special congressional procedure used to implement the spending and revenue targets in a 

budget resolution. The instructions direct a committee to make 

changes in laws under its jurisdiction that affect revenues or direct 

spending to achieve a specified budgetary result. The legislation 

used to implement those instructions is reported as a reconciliation 

bill. 

Section 201 contains two separate instructions to the House 

Committee on Ways and Means. Subsection (a) directs the Committee to report a measure by September 12, 2008, that reduces direct spending by $750 million for the period of 2008 through 2013. 

Subsection (b) directs the Committee to report a measure by July 

15, 2008, to decrease revenues by $70 billion in 2009 and to increase revenues by $70 billion for the period of 2010 through 2013. 

When only one committee receives an instruction the measure is 

reported directly to the House. 

Last year the House adopted a rule relating to reconciliation 

instructions (clause 7, Rule XXI). The rule requires that any reconciliation instruction must not increase the deficit or reduce the 

surplus over the pay-as-you-go time periods. These instructions satisfy the requirement established under clause 7 of Rule XXI. 

Senate-passed Resolution 

The Senate resolution did not include any reconciliation instructions. 


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Conference Agreement 

The conference agreement does not include any reconciliation 

instructions. 

RESERVE FUNDS 

The House and the Senate use reserve funds in connection 

with consideration of deficit-neutral legislation that complies with 

each chamber’s rules. The conference agreement therefore contains 

reserve funds for the House and for the Senate to address the rules 

and procedures that apply in each chamber. 

House-passed Resolution 

Sec. 301. Deficit-neutral reserve fund for the State Children’s 

Health Insurance Program 

The reserve fund accommodates legislation, within the jurisdic- tion of the Committee on Energy and Commerce, of up to $50 billion in additional outlays to improve children’s health through reauthorization of the State Children’s Health Insurance Program 

(SCHIP) as long as the authorizing legislation placed before the 

House complies with the pay-as-you-go principle. These additional 

resources will sustain current caseloads, expand coverage, and reduce the number of uninsured children. There are over nine million 

uninsured children in this nation. Last year, Congress twice passed 

bipartisan legislation that would have expanded coverage to nearly 

four million additional children if the President had not twice vetoed the legislation. 

Sec. 302. Deficit-neutral reserve fund for veterans and 

servicemembers 

The reserve fund accommodates legislation that enhances medical care for wounded or disabled military personnel or veterans; 

maintains affordable health care for military retirees and veterans; 

improves disability benefits or evaluations for wounded or disabled 

military personnel or veterans, including measures to expedite the 

claims process; expands eligibility to permit additional disabled 

military retirees to receive both disability compensation and retired 

pay; eliminates the offset between Survivor Benefit Plan annuities 

and veterans’ Dependency and Indemnity Compensation; or provides or increases benefits for Filipino veterans of World War II or 

their survivors and dependents, to the extent that any such legislation complies with the pay-as-you-go principle. 

Sec. 303. Deficit-neutral reserve fund for education benefits 

for servicemembers, veterans, and their families 

The reserve fund accommodates legislation that enhances education benefits or assistance for servicemembers, members of the 

National Guard, reservists, veterans, or their spouses, survivors, or 

dependents, to the extent that such legislation complies with the 

pay-as-you-go principle. Among the proposals that the reserve fund 

could accommodate is H.R. 3882, which would address a provision 

in law that results in certain members of the National Guard and 

Reserves receiving less in Montgomery GI bill (MGIB) education 

benefits than servicemembers who served about the same amount 


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of time on active duty. The current requirement for receiving full 

MGIB benefits is active-duty service of 24 months. 

Sec. 304. Deficit-neutral reserve fund for infrastructure investment 

The reserve fund accommodates legislation that provides for 

increased investment in infrastructure projects, so long as it complies with the pay-as-you-go principle. The fund accommodates new 

investment in highways, bridges, transit, rail, aviation, ports, waterways, and water treatment facilities, among other types of infrastructure. 

Sec. 305. Deficit-neutral reserve fund for renewable energy 

and energy efficiency 

The reserve fund accommodates legislation that provides tax 

incentives for or otherwise encourages the production of renewable 

energy or increased energy efficiency; encourages investment in 

emerging energy or vehicle technologies or carbon capture and sequestration; provides for reductions in greenhouse gas emissions; or 

facilitates the training of workers for these industries (green collar 

jobs), to the extent that any such legislation complies with the payas-you-go principle. For example, one item that the reserve fund 

could accommodate is extension of the solar energy and fuel cell investment tax credit. 

Sec. 306. Deficit-neutral reserve fund for middle-income tax 

relief and economic equity 

The reserve fund for middle-income tax relief supports legislation to reduce tax burdens on middle-income families and taxpayers that complies with the pay-as-you-go principle. This includes legislation such as the extension of the 10 percent individual 

income tax rate, marriage penalty relief, the child tax credit, the 

research and experimentation tax credit, the deduction for small 

business expensing, and the deduction for State and local sales 

taxes. It also accommodates elimination of estate taxes on all but 

a minute fraction of estates, and a tax credit for school construction. 

Sec. 307. Deficit-neutral reserve fund for reform of the alternative minimum tax 

The reserve fund for Alternative Minimum Tax (AMT) relief 

accommodates legislation that reforms the tax code to shield middle-income families from the AMT as long as it adheres to the payas-you-go principle. Without reform, the number of taxpayers subject to the AMT will rise from 4.2 million in 2007 to 25.7 million 

in 2008 and to 28.3 million in 2009, according to the Joint Committee on Taxation. 

Sec. 308. Deficit-neutral reserve fund for higher education 

The reserve fund accommodates reforms to the student loan 

programs or changes in law that increase benefits to students, consistent with the pay-as-you-go principle adopted by the House. 

Both the House and the Senate have passed bills to reauthorize the 

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tees maximum flexibility in finding offsets to make college more affordable and accessible for students. 

Sec. 309. Deficit-neutral reserve fund for affordable housing 

The reserve fund accommodates legislation that creates an affordable housing fund, offset by savings from reforming the regulation of certain government-sponsored entities, such as Fannie Mae 

and Freddie Mac, to the extent that such legislation complies with 

the pay-as-you-go principle. 

Sec. 310. Deficit-neutral reserve fund for Medicare improvements 

The reserve fund accommodates additional mandatory spending for Medicare program improvements such as increasing the 

Medicare reimbursement rate for physicians while holding beneficiaries harmless from associated premium increases, as long as 

the legislation is consistent with the House pay-as-you-go principle. 

Under current law, physicians face a 10.6 percent cut in their 

Medicare payment rate on July 1 of this year, and further cuts 

every year through 2016. The reserve fund also accommodates 

other program improvements, such as greater access to preventive 

benefits; additional assistance for low-income beneficiaries; and 

better efficiencies within the Part D program, such as prompt payment of prescription drug claims; as long as the legislation is consistent with the pay-as-you-go principle. 

Sec. 311. Deficit-neutral reserve fund for health care quality, 

effectiveness, and efficiency 

The reserve fund accommodates legislation that: provides incentives or other support for adoption of modern health information 

technology; establishes a new federal or public-private initiative for 

research on the comparative effectiveness of different medical 

interventions; or that provides parity between health insurance 

coverage of mental health benefits and benefits for medical and 

surgical services, including parity in public programs; as long as 

the legislation is consistent with the House pay-as-you-go principle. 

Sec. 312. Deficit-neutral reserve fund for Medicaid and other 

programs 

The reserve fund accommodates legislation that prevents or 

delays the implementation or administration of regulations or administrative actions affecting Medicaid, SCHIP, or other programs, 

as well as extension of the Transitional Medical Assistance (TMA) 

or Qualified Individuals (QI) programs, as long as the legislation 

complies with the pay-as-you-go principle. TMA provides temporary 

Medicaid assistance for families transitioning to the workforce and 

QI provides premium assistance for lower-income Medicare beneficiaries. 

Sec. 313. Deficit-neutral reserve fund for trade adjustment assistance and unemployment insurance modernization 

The reserve fund accommodates legislation to reauthorize and 

expand the trade adjustment assistance program (TAA) and modernize the unemployment insurance (UI) system, consistent with 


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the pay-as-you-go rule adopted by the House. Last year, the House 

passed legislation that included much-needed reforms to substantially increase the number of workers able to receive needed income 

support and job training. 

Sec. 314. Deficit-neutral reserve fund for county payments 

legislation 

The reserve fund accommodates any legislation that reauthorizes the Secure Rural Schools and Community Self-Determination 

Act (Public Law 106–393) or makes changes to the Payments in 

Lieu of Taxes Act of 1976 (Public Law 94–565), to the extent that 

such legislation complies with the pay-as-you-go principle. Public 

Law 106–393 provides economic assistance for roads and schools in 

rural communities affected by the loss of receipts from sales on federal lands in their communities. Federal payments under Public 

Law 94–565 to local governments are designed to offset lost property tax revenue from federal lands within the localities. Both 

forms of assistance are intended to compensate local governments 

for the tax-exempt status of the national forests and other federal 

lands. 

Sec. 315. Deficit-neutral reserve fund for San Joaquin River 

restoration and Navajo Nation water rights settlements 

The reserve fund accommodates legislation that would fulfill 

the purposes of the San Joaquin River Restoration Settlement Act, 

implement a Navajo Nation water rights settlement as authorized 

by the Northwestern New Mexico Rural Water Projects Act, or 

both, to the extent that the legislation complies with the pay-asyou-go principle. 

Sec. 316. Deficit-neutral reserve fund for the National Park 

Centennial Fund 

The reserve fund accommodates any legislation that provides 

for the establishment of the National Park Centennial Fund, so 

long as it complies with the pay-as-you-go principle. The Centennial Fund would provide additional funding for specific Interior-approved, community-supported projects within the National Park 

system to improve parks and provide better visitor experiences. 

Sec. 317. Deficit-neutral reserve fund for child support enforcement 

The reserve fund accommodates legislation to increase the 

number of children who receive the full child support that is owed 

to them by enhancing federal collection efforts or supporting state 

initiatives to pass through 100 percent of collected child support to 

families, as long as the legislation complies with the pay-as-you-go 

principle. For every dollar the federal government spends on child 

support enforcement, $6.50 is collected on behalf of working families. Last year, the child support enforcement system collected $22 

billion in private support for 17 million children. 


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Senate-passed Resolution 

Sec. 301. Strengthening and stimulating the American economy and providing economic relief to American families 

(a) Tax Relief. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution 

for one or more pieces of tax relief legislation, which may include 

extensions of expiring tax cuts and reinstatement of expired tax relief, provided the legislation is deficit-neutral over the total of 

2008–2013 and 2008–2018. 

(b) Manufacturing. The Senate-passed resolution allows the 

Chairman of the Budget Committee to revise the levels in the resolution for legislation aimed at revitalizing the manufacturing sector 

in the United States, which may include tax incentives, increased 

research and development, and other important support, provided 

such legislation is deficit-neutral over the total of 2008–2013 and 

2008–2018. 

(c) Housing. The Senate-passed resolution allows the Chairman 

of the Budget Committee to revise the levels in the resolution for 

legislation that would provide housing assistance, which may include low-income rental assistance, or establish an affordable housing fund to finance low-income housing investments, financed by 

contributions from the government-sponsored enterprises or other 

sources, provided the legislation is deficit-neutral over the total of 

2008–2013 and 2008–2018. 

(d) Flood Insurance Reform. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in 

the resolution for legislation that authorizes flood insurance reform 

and modernization, provided the legislation is deficit-neutral over 

the total of 2008–2013 and 2008–2018. 

(e) Trade. The Senate-passed resolution allows the Chairman 

of the Budget Committee to revise the levels in the resolution for 

legislation to address our nation’s trade agreements, preferences, 

sanctions, enforcement, or customs laws, provided the legislation is 

deficit-neutral over the total of 2008–2013 and 2008–2018. 

(f) Economic Relief for American Families. The Senate-passed 

resolution allows the Chairman of the Budget Committee to revise 

the levels in the resolution for legislation in the following areas, 

provided it is deficit-neutral over the total of 2008–2013 and 2008–

2018: 

(1) TANF—legislation reauthorizing Temporary Assistance for 

Needy Families supplemental grants or making improvements to 

the TANF program, child welfare programs, or child support enforcement. The legislation for improving child welfare includes 

steps to help support foster children being raised by grandparents, 

older youth aging out of foster care, and other improvements in 

child welfare financing to prevent child abuse and neglect and promote permanent families for children. In addition, legislation that 

strengthens support for treatment options for families struggling 

with substance abuse and addiction, and in particular takes steps 

to prevent the increased use of methamphetamines as well as provides treatment for addicted individuals and families can be accommodated within this reserve fund to improve child welfare. 


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(2) Child Care—legislation providing up to $5 billion for the 

child care entitlement to states. 

(3) Emergency Food Assistance—legislation providing up to 

$40 million for the emergency food assistance program. 

(4) Unemployment Compensation—legislation improving the 

unemployment compensation program. 

(5) TAA—legislation reauthorizing trade adjustment assistance 

programs. 

(g) America’s Farms and Rural America. 

(1) Farm Bill. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution 

for legislation to reauthorize agricultural programs, address the 

needs of rural America, promote new sources of renewable energy 

from U.S. farm products, provide an economic safety net for agricultural producers, enhance the stewardship of our natural resources, address domestic nutrition needs, increase agricultural research, and improve our export competitiveness, provided the legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

(2) County Payments. The Senate-passed resolution includes a 

deficit-neutral reserve fund allowing the Chairman of the Budget 

Committee to revise the levels and limits in the resolution for legislation that provides for the reauthorization of the Secure Rural 

Schools and Community Self-Determination Act of 2000, makes 

changes to the Payments in Lieu of Taxes Act of 1976, or both, provided the legislation is deficit-neutral over the total of 2008–2013 

and 2008–2018. 

Sec. 302. Improving education 

The Senate-passed resolution includes deficit-neutral reserve 

funds allowing the Chairman of the Budget Committee to revise 

the levels in the resolution for—

(a) legislation to make higher education more accessible or 

more affordable, which may include increasing funding for the 

federal Pell Grant program or increasing federal student loan 

limits, modernize school facilities through renovation or construction bonds, reduce the cost to teachers of out-of-pocket expenses for school supplies, or provide tax incentives for highlyqualified teachers to serve in high-needs schools; and 

(b) legislation to improve student achievement during secondary education—

provided the legislation is deficit-neutral over the total of 2008–

2013 and 2008–2018. 

Sec. 303. Investing in infrastructure 

The Senate-passed resolution provides a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels and 

limits in the resolution for legislation to provide a sustained, robust 

federal investment in our nation’s infrastructure, which may include transit, housing, energy, water, highways, bridges, or other 

important infrastructure projects, provided the legislation is deficitneutral over the total of 2008–2013 and 2008–2018. 


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Sec. 304. Investing in clean energy, preserving the environment, and providing for certain settlements 

(a) Energy and the Environment: The Senate-passed resolution 

includes a deficit-neutral reserve fund that will allow the Chairman of the Budget Committee to revise the levels and limits in the 

resolution for energy legislation or environmental legislation that 

would decrease greenhouse gas emissions, reduce our nation’s dependence on imported energy, produce ‘‘green’’ jobs, or protect national parks, oceans, or coastal areas, provided the legislation is 

deficit-neutral over the total of 2008–2013 and 2008–2018. The legislation may include tax provisions. 

(b) Settlements: The Senate-passed resolution includes a deficit-neutral reserve fund allowing the Chairman of the Budget 

Committee to revise the levels in the resolution for legislation to 

carry out the San Joaquin River Restoration Settlement Act, or legislation to implement a Navajo Nation water rights settlement and 

other provisions authorized by the Northwestern New Mexico 

Rural Water Projects Act, provided the legislation is deficit-neutral 

over the total of 2008–2013 and 2008–2018. 

Sec. 305. Providing for America’s veterans, wounded 

servicemembers, and a post–9/11 G.I. bill 

The Senate-passed resolution includes deficit-neutral reserve 

funds allowing the Chairman of the Budget Committee to revise 

the levels in the resolution for—

(a) Veterans and Wounded Servicemembers: Legislation that 

would—

(1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or 

veterans; 

(2) provide for or increase benefits to Filipino veterans of 

World War II, their survivors and dependents; 

(3) allow for the transfer of education benefits from 

servicemembers to family members or veterans (including the 

elimination of the offset between Survivor Benefit Plan annuities and veterans’ dependency and indemnity compensation); 

(4) provide for continuing payment to Armed Forces Members retired or separated due to combat-related injury after 

September 11, 2001, of bonuses they were entitled to prior to 

retirement or separation; or 

(5) enhance availability of health care and other services 

for veterans in rural areas 

—provided the legislation does not include increased fees charged 

to veterans for pharmacy co-payments, annual enrollment, or other 

third-party insurance payment offsets, and provided it is deficitneutral over the total of 2008–2013 and 2008–2018. 

(b) A Post–9/11 G.I. Bill: Legislation to enhance educational 

benefits of servicemembers and veterans with service on active 

duty in the Armed Forces on or after September 11, 2001, provided 

such legislation is deficit-neutral over the total of 2008–2013 and 

2008–2018. 


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Sec. 306. Improving America’s health 

The Senate-passed resolution includes deficit-neutral reserve 

funds allowing the Chairman of the Budget Committee to revise 

the levels in the resolution for legislation in the following areas, 

provided such legislation is deficit-neutral over the total of 2008– 2013 and 2008–2018. 

(a) SCHIP: Legislation to reauthorize the State Children’s 

Health Insurance Program, expand coverage of the estimated six 

million children eligible but not enrolled in either SCHIP or Medicaid, and maintain coverage for all currently-enrolled children. 

(b) Medicare Improvements— (1) Physician Payments: Legislation to increase the reimbursement rate for physician services under Medicare Part B. 

Under current law, without further Congressional action, physician payments under Medicare Part B will be cut over ten 

percent on July 1, 2008, and an additional five percent in subsequent years. The President’s budget does not propose to prevent this cut. If no adjustments are made, over time, more and 

more physicians will stop providing services to Medicare patients, reducing seniors’ access to care. 

(2) Other Medicare Improvements: Legislation to make 

other improvements to the Medicare program, including improvements to the prescription drug benefit under Medicare 

Part D, adjustments to the Medicare Savings Program, reductions to beneficiary cost-sharing for preventive benefits under 

Medicare Part B, and to encourage physicians to train in primary care residencies and attract more physicians and other 

health care providers to States that face a shortage of health 

care providers. 

(3) Electronic Prescribing: Legislation to promote deployment and use of electronic prescribing technologies. 

(4) Rural Equity Payment Policies: Legislation to preserve 

existing Medicare payment provisions supporting rural health 

care and promote Medicare payment policies that increase access to quality health care in isolated and undeserved rural 

areas. 

(5) Medicare Low-Income Programs: Legislation making 

improvements to the Medicare Savings Program and the Medicare Part D low-income subsidy program. 

(c) Health Care Quality, Effectiveness, Efficiency, and Transparency, including: 

(1) Comparative Effectiveness Research: Legislation to establish a new federal or public-private initiative for comparative effectiveness research. 

(2) Improving the Health Care System: Legislation to create a framework and parameters for the use of Medicare data 

for the purpose of conducting research, public reporting, and 

other activities to evaluate health care safety, effectiveness, efficiency, quality, and resource utilization in federal programs 

and the private health care system, while protecting the privacy of beneficiaries and other proprietary information. 

(3) Health Information Technology and Best Practices—

(A) Health Information Technology: Legislation to provide incentives or other support for adoption of modern 


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health information technology, including the adoption of 

electronic prescribing technology, to improve quality and 

protect privacy in health care, such as activities by the Department of Defense and the Department of Veterans Affairs to integrate their electronic health record data. 

(B) Best Practices: Legislation that provides for payments that are based on adherence to clinical ‘‘best practices.’’

(d) FDA, including: 

(1) Regulation: Legislation that authorizes the Food and 

Drug Administration (FDA) to regulate products and assess 

user fees on manufacturers and importers of these products to 

cover the cost of FDA’s regulatory activities, and 

(2) Drug Importation: Legislation allowing for the safe importation of prescription drugs approved by the FDA. 

(e) Medicaid, including: 

(1) Rules or Administrative Actions: Legislation addressing 

certain rules or administrative actions, and 

(2) TMA: Legislation extending the Transitional Medical 

Assistance program. 

(f) Other Improvements in Health, including legislation making 

health insurance coverage more affordable and available to small 

businesses and their employees, improving health care and provide 

quality health insurance for the uninsured and underinsured, reauthorizing special diabetes programs, improving long-term care, or 

providing for mental health parity. 

(g) Pediatric Dental Care, for legislation providing for improved 

access to pediatric dental care for children from low-income families. The Senate recognizes the importance of pediatric dental services in the overall health of children and the potential preventative 

dental care services have to save costs in the long run. However, 

access to pediatric dental services can be improved. For example, 

community-based dental clinics cite low reimbursement as a strain 

on their ability to treat uninsured patients and improve access to 

Medicaid and SCHIP beneficiaries. To address this issue, the Senate-passed resolution includes a deficit-neutral reserve fund for legislation to improve pediatric oral health and increase access to such 

services, including adequately compensating qualified dental clinics 

and other oral health providers for treatment of children from lowincome families. 

Sec. 308. Judicial pay and judgeships 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that authorizes salary adjustments for justices and judges of the United States or increases the number of 

federal judgeships, provided such legislation is deficit-neutral over 

the total of 2008–2013 and 2008–2018. 

Sec. 309. Reforming the AMT for individuals 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would reinstate the pre-1993 rates for 


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the alternative minimum tax for individuals, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 310. Repealing the 1993 increase in the income tax on 

Social Security benefits 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would repeal the 1993 increase in the 

income tax on Social Security benefits, provided such legislation is 

deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 311. Improving energy efficiency and production 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation including specific proposals to improve energy efficiency and production, provided such legislation is deficitneutral over the total of 2008–2013 and 2008–2018. 

Sec. 312. Immigration reform and enforcement 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would provide increased border security, immigration law enforcement, staffing, reform measures, and 

penalties against employers hiring undocumented immigrants; prohibit employers hiring undocumented immigrants from receiving 

federal contracts; provide funding for enforcing sanctions against 

such employers; deploy National Guard troops to the northern or 

southern borders of the U.S. under certain circumstances; evaluate 

noncitizen prison populations for removable criminal aliens; or implement exit data, provided such legislation is deficit-neutral over 

the total of 2008–2013 and 2008–2018. 

Sec. 313. Border security, immigration enforcement, and 

criminal alien removal 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that funds border security, immigration 

enforcement, and criminal alien removal programs, provided such 

legislation is deficit-neutral over the total of 2008–2013 and 2008–

2018. 

Sec. 314. Science parks 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that provides grants and loan guarantees 

for developing and constructing science parks to promote innovation through high technology, provided such legislation is deficitneutral over the total of 2008–2013 and 2008–2018. 

Sec. 315. Pilot program for background checks on long-term 

care employees 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that provides for a three-year extension of 


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the pilot program for national and state background checks on direct patient access employees of long-term care facilities or providers under section 307 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and removes the limit 

on the number of participating states under the pilot program, provided such legislation is deficit-neutral over the total of 2008–2013 

and 2008–2018. 

Sec. 316. Studying the effect of cooperation with local law enforcement 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that requires an assessment of the impact 

of local ordinances prohibiting cooperation with the Department of 

Homeland Security regarding the effectiveness of law enforcement, 

success rates of criminal prosecutions, reporting of criminal activities by immigrant victims of crime, and level of public safety; 

changes in the number of reported incidents or complaints of racial 

profiling; or wrongful detention of U.S. citizens and lawful permanent residents, provided such legislation is deficit-neutral over the 

total of 2008–2013 and 2008–2018. 

Sec. 317. Terminating deductions from mineral revenue payments to states 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would terminate the authority to deduct certain amounts from mineral revenues payable to states, provided such legislation is deficit-neutral over the total of 2008–2013 

and 2008–2018. 

Sec. 318. Establishing state internet sites for disclosure of information regarding payments made under the state 

Medicaid program 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution if legislation is reported by the Finance Committee that 

provides for states to disclose through a publicly accessible internet 

site institutional providers receiving payment under the state Medicaid program, amounts paid to each provider each year, the number of patients treated by each provider, and the dollar amount 

paid per patient to each provider, provided that the Finance Committee is within its committee allocation pursuant to section 302(a) 

of the Congressional Budget Act of 1974 and such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 319. Traumatic brain injury 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would provide at least $9 million for 

2009 to fund traumatic brain injury programs, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 


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Sec. 320. Improving the animal health and disease program 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would fully fund the animal health 

and disease program, provided such legislation is deficit-neutral 

over the total of 2008–2013 and 2008–2018. 

Sec. 321. Implementing yellow ribbon reintegration program 

for National Guard and Reserve members 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would provide for implementation of 

the Yellow Ribbon Reintegration Program for members of the National Guard and Reserve, provided such legislation is deficit-neutral over the total of 2008–2013. 

Sec. 322. Reimbursing states for costs of housing undocumented criminal aliens 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would reimburse states and local governments for costs incurred to house undocumented criminal 

aliens, provided such legislation is deficit-neutral over the total of 

2008–2013 and 2008–2018. 

Sec. 323. Acceleration of phased-in eligibility for concurrent 

receipt of benefits 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would change the date from December 31, 2013, to September 30, 2008, by which eligibility of members of the Armed Forces for concurrent receipt of retired pay and 

veterans’ disability compensation would be fully phased in, provided such legislation is deficit-neutral over the total of 2008–2013 

and 2008–2018. 

Sec. 324. Increased use of recovery audits 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would achieve savings by requiring 

agencies to increase their use of recovery audits and use those savings to reduce the deficit, provided such legislation would not increase the deficit over the total of 2008–2013 or 2008–2018. 

Sec. 325. Food safety 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would expand FDA and Department 

of Agriculture food safety inspection services, develop risk-based 

approaches to inspecting domestic and imported food products, provide for infrastructure and information technology systems to enhance the safety of the food supply, expand scientific capacity and 

training, invest in improved surveillance and testing technologies, 

provide for foodborne illness awareness and education, and enVerDate Aug 31 2005 05:31 May 24, 2008 Jkt 042420 PO 00000 Frm 00123 Fmt 6601 Sfmt 6601 E:\HR\OC\HR659.XXX HR659

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hance the FDA’s recall authority, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 326. Demonstration project regarding Medicaid coverage 

of low-income HIV-infected individuals 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would provide for a demonstration 

project under which a state may apply to provide medical assistance under a state Medicaid program to HIV-infected individuals 

who are otherwise ineligible for such medical assistance, provided 

such legislation is deficit-neutral over the total of 2008–2013 and 

2008–2018. 

Sec. 327. Reducing the income threshold for the refundable 

child tax credit 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would reduce the income threshold 

for the refundable child tax credit to $10,000 for 2009 and 2010 

with no inflation adjustment, provided such legislation is deficitneutral over the total of 2008–2013 and 2008–2018. 

Sec. 329. Education reform 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would promote flexibility in federal 

education programs, restore state and local authority in education, 

ensure that public schools are held accountable for results, and prevent discrimination against homeschoolers, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 330. Processing naturalization applications 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would provide for adjudication of 

name check and security clearances by the FBI or provide for adjudication of applicants, including interviewing and swearing-in of 

applicants by the Department of Homeland Security/U.S. Citizenship and Immigration Services by October 1, 2008, for individuals 

who have submitted applications for naturalization before March 1, 

2008, provided such legislation is deficit-neutral over the total of 

2008–2013 and 2008–2018. 

Sec. 331. Access to quality and affordable health insurance 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would promote choice and competition to drive down costs and improve access to health care for all 

Americans without increasing taxes, strengthen health care quality 

by promoting wellness and empowering consumers with information on quality and cost, protect Americans’ economic security from 

catastrophic events by expanding insurance options and improving 

health insurance portability, and promote advanced research and 


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development of new treatments and cures, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Sec. 332. 9/11 health program 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution if the HELP Committee reports legislation to establish 

a program that includes medical monitoring and treatment to address adverse health impacts linked to the September 11, 2001 attacks, and if the HELP Committee finds that previously spent 

World Trade Center Health Program funds were used to provide 

screening, monitoring, and treatment services and directly related 

program support, provided such legislation is deficit-neutral over 

the total of 2008–2013 and 2008–2018. 

Sec. 333. Banning Medicare Advantage and Medicare prescription drug plan sales and marketing abuses 

The Senate-passed resolution includes a reserve fund allowing 

the Chairman of the Budget Committee to revise the levels in the 

resolution for legislation that would limit inappropriate or abusive 

marketing tactics by private insurers and their agents offering 

Medicare Advantage or Medicare prescription drug plans by enacting recommendations agreed to by leaders of the health insurance 

industry on March 3, 2008, provided such legislation is deficit-neutral over the total of 2008–2013 and 2008–2018. 

Conference Agreement 

Title II of the conference agreement contains reserve funds. 

Subtitle A: House reserve funds 

Subtitle A of the conference agreement contains the following 

reserve funds that apply only in the House: 

Sec. 201. Deficit-neutral reserve fund for SCHIP legislation (Sec. 301 of the House-passed resolution) 

Sec. 202. Deficit-neutral reserve fund for America’s veterans and servicemembers (Sec. 302 of the House-passed resolution, as modified) 

Sec. 203. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families (Sec. 303 

of the House-passed resolution, as modified) 

Sec. 204. Deficit-neutral reserve fund for infrastructure investment (Sec. 304 of the House-passed resolution, as modified) 

Sec. 205. Deficit-neutral reserve fund for renewable energy 

and energy efficiency (Sec. 305 of the House-passed resolution) 

Sec. 206. Deficit-neutral reserve fund for middle-income 

tax relief and economic equity (Sec. 306 of the House-passed 

resolution) 

Sec. 207. Deficit-neutral reserve fund for reform of the alternative minimum tax (Sec. 307 of the House-passed resolution) 

Sec. 208. Deficit-neutral reserve fund for higher education 

(Sec. 308 of the House-passed resolution) 

Sec. 209. Deficit-neutral reserve fund for affordable housing (Sec. 309 of the House-passed resolution) 


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Sec. 210. Deficit-neutral reserve fund for Medicare improvements (Sec. 310 of the House-passed resolution, as modified) 

Sec. 211. Deficit-neutral reserve fund for health care quality, effectiveness, and efficiency (Sec. 311 of the House-passed 

resolution, as modified) 

Sec. 212. Deficit-neutral reserve fund for Medicaid and 

other programs (Sec. 312 of the House-passed resolution, as 

modified) 

Sec. 213. Deficit-neutral reserve fund for a 9/11 health program (Sec. 332 of the Senate-passed resolution, as modified) 

Sec. 214. Deficit-neutral reserve fund for trade adjustment 

assistance and unemployment insurance modernization (Sec. 

313 of the House-passed resolution) 

Sec. 215. Deficit-neutral reserve fund for county payments 

legislation (Sec. 314 of the House-passed resolution) 

Sec. 216. Deficit-neutral reserve fund for San Joaquin 

River restoration and Navajo Nation water rights settlements 

(Sec. 315 of the House-passed resolution, as modified) 

Sec. 217. Deficit-neutral reserve fund for the National 

Park Centennial Fund (Sec. 316 of the House-passed resolution) 

Sec. 218. Deficit-neutral reserve fund for child support enforcement (Sec. 317 of the House-passed resolution) 

Sec. 219. Deficit-neutral reserve fund for children and families (Sec. 301(f) of the Senate-passed resolution, as modified) 

Sec. 220. Reserve fund adjustment for revenue measures 

in the House 

Last year, section 321 of the Conference Report to accompany 

S. Con. Res. 21 created a reserve fund for consideration of any revenue measure (including a conference report) in the House. This 

section supersedes last year’s provision. It applies to revenue measures that would increase the deficit or reduce the surplus in violation of the House PAYGO rule and would reduce revenues below 

the revenue levels for the period of fiscal years 2009 through 2013 

as measured against the Congressional Budget Office baseline used 

for consideration of this concurrent resolution. The revenue measure can become effective only upon certification by the Secretary of 

the Treasury and the Director of the Office of Management and 

Budget that any reduction in revenues for the period comprising 

the fiscal years through 2013 will not exceed the lesser of $340.570 

billion or 80 percent of the sum of the unified budget surplus for 

fiscal years 2012 and 2013, as estimated by them no earlier than 

October 1, 2009. If this certification provision is not included in the 

language of the measure, the Chairman of the House Budget Committee will adjust aggregate revenue levels in the resolution to create a point of order in the House against the measure under section 311 of the Congressional Budget Act. The Chairman would readjust the levels upon disposition of any measure considered in violation of this section. This point of order would be in addition to 

a House PAYGO point of order, which lies against any bill that is 

not deficit-neutral over the periods specified in the PAYGO rule, 

notwithstanding any other provisions of this conference agreement. 


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Any measure, including a conference report, that is in violation 

of the PAYGO rule and decreases revenues in fiscal years 2009 

through 2013 below the CBO baseline for that period, would have 

this additional point of order against it in the House, unless the 

measure includes a provision consistent with the following: 

None of the provisions of this Act or amendments 

made by it shall have legal force or effect unless on or 

after October 1, 2009, the Secretary of the Treasury and 

the Director of the Office of Management and Budget 

project a unified budget surplus for the fiscal years 2012 

and 2013, estimate the budgetary impact of this Act, and 

certify by a joint communication, published in the Federal 

Register, that the estimated reduction in revenues for the 

period comprising the fiscal years through 2013 resulting 

from this Act (including any amendments made by this 

Act) will not exceed the lesser of $340.570 billion or 80 

percent of the sum of the projected unified surplus for fiscal years 2012 and 2013. 

Section 220 is a reserve fund that applies in the House only. 

It does not apply in the Senate. Its inclusion in this conference report, and the inclusion of the above language by the House of Representatives in this joint statement regarding the operation of this 

section in the House, is not to be construed as setting any procedural precedent in the Senate and does not reflect the Senate’s 

agreement to any provisions in any conference agreement on revenue measures that are affected in the House by the requirements 

of this reserve fund. 

Subtitle B: Senate reserve funds 

Subtitle B of the conference agreement contains the following 

reserve funds that apply only in the Senate: 

Sec. 221. Deficit-neutral reserve fund to strengthen and 

stimulate the American economy and provide economic relief to 

American families (Sec. 301 of the Senate-passed resolution, as 

modified) 

Sec. 222. Deficit-neutral reserve fund for improving education (Secs. 302 and 329 of the Senate-passed resolution, as 

modified) 

Sec. 223. Deficit-neutral reserve fund for investments in 

America’s infrastructure (Sec. 303 of the Senate-passed resolution) 

Sec. 224. Deficit-neutral reserve fund to invest in clean energy, preserve the environment, and provide for certain settlements (combines provisions from Sec. 304 and Sec. 311 of the 

Senate-passed resolution, as modified) 

Sec. 225. Deficit-neutral reserve fund for America’s veterans and servicemembers (Sec. 305(a) of the Senate-passed 

resolution, as modified) 

Sec. 226. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families (Sec. 

305(b) of the Senate-passed resolution, as modified) 


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Sec. 227. Deficit-neutral reserve fund to improve America’s 

health (Secs. 306, 315, and 333 of the Senate-passed resolution, as modified) 

Sec. 228. Deficit-neutral reserve fund for reform of the alternative minimum tax (Sec. 309 of the Senate-passed resolution, as modified) 

Sec. 229. Deficit-neutral reserve fund for judicial pay and 

judgeships (Sec. 308 of the Senate-passed resolution) 

Sec. 230. Deficit-neutral reserve fund for immigration enforcement and reform (replaces Secs. 312, 313, 316, 322, and 

330 of the Senate-passed resolution) 

Sec. 231. Deficit-neutral reserve fund for science parks 

(Sec. 314 of the Senate-passed resolution, as modified) 

Sec. 232. Deficit-neutral reserve fund to terminate deductions from mineral revenue payments to States (Sec. 317 of the 

Senate-passed resolution, as modified) 

Sec. 233. Deficit-neutral reserve fund for increased used of 

recovery audits (Sec. 324 of the Senate-passed resolution) 

Sec. 234. Deficit-neutral reserve fund for food safety (Sec. 

325 of the Senate-passed resolution, as modified) 

Sec. 235. Deficit-neutral reserve fund for demonstration 

project regarding Medicaid coverage of low-income HIV-infected individuals (Sec. 326 of the Senate-passed resolution) 

Sec. 236. Deficit-neutral reserve fund for reducing the income threshold for the refundable child tax credit, and other 

selected tax relief policies (Sec. 327 of the Senate-passed resolution, as modified) 

Sec. 237. Deficit-neutral reserve fund for a 9/11 health program (Sec. 332 of the Senate-passed resolution, as modified) 

Throughout this subtitle, the use of the word ‘‘limits’’ refers to 

the discretionary spending limits in the Senate. 

BUDGET ENFORCEMENT 

The House and the Senate use enforcement provisions to ensure that legislation is consistent with the budget plan set forth in 

the budget resolution. The conference agreement contains enforcement provisions for the House and Senate to accommodate the procedures that apply to consideration of legislation in each chamber. 

Other provisions applicable in both the House and Senate are included in Subtitle C. 

House-passed Resolution 

Sec. 401. Program Integrity Initiatives 

Section 401 provides for specific allocation adjustments for the 

Committee on Appropriations when the Committee reports legislation that includes increased appropriations for the following four 

program integrity initiatives: (1) continuing disability reviews and 

Supplemental Security Income redeterminations for the Social Security Administration; (2) improved compliance with the provisions 

of the Internal Revenue Code; (3) the Health Care Fraud and 

Abuse Control program at the Department of Health and Human 

Services; and (4) unemployment insurance in-person reemployment 

and eligibility assessments and improper payment reviews. 


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The adjustments under this section are intended to do no more 

than provide additional administrative funding for current program 

integrity activities to eliminate errors or fraud in the operation of 

a number of federal programs and to promote compliance with federal tax laws. For example, the adjustment for unemployment compensation programs is provided to increase limited administrative 

funding for current program integrity activities, and not to finance 

other proposals that would adversely affect workers who have received unemployment benefits. The section outlines procedures for 

these allocation adjustments. 

Sec. 402. Oversight of Government Performance 

Section 402 directs Committees of the House of Representatives to review programs within their jurisdiction for waste, fraud, 

and abuse and to include recommendations for improved governmental performance in views and estimates submitted to the Budget Committee pursuant to section 301(d) of the Congressional 

Budget Act. 

Sec. 403. Advance Appropriations 

Section 403 limits the amount and type of advance appropriations for fiscal years 2010 and 2011. Under this section, advance 

appropriations for fiscal year 2010 are restricted to $27.558 billion 

for the programs, projects, activities, or accounts to be included in 

the joint explanatory statement of managers to accompany the conference report on this resolution. Advances for 2011 are listed separately. The section defines advance appropriations as any new discretionary budget authority provided in a bill or joint resolution 

making general or continuing appropriations for fiscal year 2009 

that first becomes available for any fiscal year after 2009. 

Sec. 404. Overseas Deployments and Emergency Needs 

Section 404 establishes a procedure whereby provisions or 

measures reported by the Committee on Appropriations will be exempt from the restrictions under titles III and IV of the Congressional Budget Act of 1974. The exemption will apply if: (1) the 

Committee determines and designates that amounts appropriated 

are necessary for overseas deployments and related activities; or, 

(2) the Committee provides discretionary appropriations and designates those amounts as necessary to meet emergency needs. 

Sec. 405. Budgetary Treatment of Certain Discretionary Administrative Expenses 

Section 405 provides that administrative expenses of the Social 

Security Administration and of the Postal Service shall be part of 

the annual appropriations process by including those expenses in 

the allocation to the Committee on Appropriations pursuant to section 302 of the Congressional Budget Act. 

Sec. 406. Application and Effect of Changes in Allocations 

and Aggregates 

Section 406 details the allocation and aggregate adjustment 

procedures that are required to accommodate legislation for the reserve funds and program integrity initiatives in this resolution. 


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This section provides that the adjustments shall apply while the 

legislation is under consideration and take effect upon enactment 

of the legislation. In addition, the section requires the adjustments 

to be printed in the Congressional Record. 

The section also notes that, for purposes of enforcement, aggregate and allocation levels resulting from adjustments made pursuant to this resolution will have the same effect as if adopted in the 

original levels of Title I of this budget resolution. This section also 

provides that the Committee on the Budget shall determine the 

budgetary levels and estimates which are required to enforce points 

of order under the Congressional Budget Act. 

Sec. 407. Adjustments to Reflect Changes in Concepts and 

Definitions 

Section 407 requires the chairman of the Committee on the 

Budget to adjust levels and allocations in this budget resolution 

upon enactment of legislation that changes concepts or definitions. 

Sec. 408. Exercise of Rulemaking Powers 

Section 408 provides that, once adopted, the provisions of the 

budget resolution are incorporated into the rules of the House of 

Representatives and shall supersede inconsistent rules. The section 

recognizes the constitutional right of the House of Representatives 

to change those rules at any time. 

Senate-passed Resolution 

The FY2008 budget resolution (S. Con. Res. 21, 110th Congress) included many important enforcement provisions which remain in effect in the Senate. These include: 

• The Senate pay-as-you-go point of order (Sec. 201), requiring 

that new mandatory spending and tax cuts be offset or get 60 

votes. The Senate-passed resolution assumed that all existing 

balances on the Senate pay-as-you-go ledger would be eliminated, and the scorecard reset to zero for 2008–2013 and 2008–

2018; 

• The 60-vote point of order against reconciliation increasing 

the deficit (Sec. 202); 

• The 60-vote point of order against emergency designations 

(Sec. 204); 

• Continued 60-vote enforcement of Senate budgetary points of 

order (Sec. 205); and 

• The requirement that the discretionary administrative expenses of the Social Security Administration be included in the 

Appropriations Committee’s 302(a) allocation in any budget 

resolution (Sec. 210). 

The Senate-passed resolution for 2009, S. Con. Res. 70, included the following enforcement provisions, most of which updated 

provisions that were part of the 2008 budget resolution. 


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Subtitle A—Direct Spending and Receipts 

Sec. 201. Point of order against legislation increasing longterm deficits 

The Senate-passed resolution included a point of order in the 

Senate against legislation that would cause a net deficit increase 

(including changes in revenues and mandatory spending, but excluding debt service) in any of the four consecutive ten-year periods 

beginning with the first fiscal year that is ten years after the budget year provided for in the most recently-adopted budget resolution 

(for 2009 these time periods would be 2019–2028, 2029–2038, 

2039–2048, and 2049–2058). The point of order could be waived 

with 60 votes, and it would sunset at the end of 2017. 

Sec. 202. Point of order—20 percent limit on new direct 

spending in reconciliation legislation 

The Senate-passed resolution would create a 60–vote point of 

order against provisions of any reconciliation legislation that would 

increase outlays if the effect of all the provisions in any committee’s jurisdiction would create gross new direct spending exceeding 

20% of the total savings instruction to that committee. 

Subtitle B—Discretionary Spending 

Sec. 211. Discretionary spending caps 

The Senate-passed resolution would strengthen fiscal responsibility by establishing discretionary spending limits for 2008 and 

2009, and enforce them with a point of order in the Senate that 

could only be waived with 60 votes. For 2008, it provides a cap of 

$1,055.478 billion in budget authority and $1,093.343 billion in outlays. For 2009, it sets a cap of $1,008.482 billion in budget authority and $1,108.449 billion in outlays. 

As in past years, the Senate resolution would permit adjustments to the discretionary spending limits in 2009 for program integrity initiatives, such as Social Security Administration continuing disability reviews (CDRs) and Supplemental Security Income redeterminations, enhanced Internal Revenue Service tax enforcement to address the tax gap, appropriations for the Health 

Care Fraud and Abuse Control (HCFAC) program at the Department of Health and Human Services, and unemployment insurance 

improper payments reviews at the Department of Labor. It also 

provides for adjustments in 2008 and 2009 for the wars in Iraq and 

Afghanistan, as well as adjustments in 2009 for comparative effectiveness research at the Agency for Healthcare Research and Quality (AHRQ). 

The Senate resolution also includes a program integrity cap 

adjustment dedicated to reducing waste in defense contracting. It 

allows the Chairman of the Budget Committee to increase the discretionary spending cap by up to $100,000,000 to accommodate legislation appropriating funding for the Department of Defense for 

additional activities to reduce waste, fraud, abuse, and overpayments in defense contracting; achieve the legal requirement for the 

Pentagon to submit auditable financial statements; subject contracts performed outside the U.S. to the same requirements as 


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those performed domestically; or improve accounting for and ordering of spare parts. 

Sec. 212. Advance appropriations 

As in past years, the Senate-passed resolution provided a 

supermajority point of order in the Senate against appropriations 

in fiscal year 2009 bills that would first become effective in any 

year after fiscal year 2009, and against appropriations in fiscal 

year 2010 bills that would first become effective in any year after 

fiscal year 2010. It would not apply against appropriations for the 

Corporation for Public Broadcasting, nor against changes in mandatory programs or deferrals of mandatory budget authority from 

one year to the next. There is an exemption for each of fiscal years 

2009 and 2010 of up to $29.352 billion for the following: 

ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

Labor, HHS: 

Employment and Training Administration 

Job Corps 

Education for the Disadvantaged 

School Improvement 

Children and Family Services (Head Start) 

Special Education 

Career, Technical, and Adult Education 

Financial Services and General Government: Payment to Postal Service 

Transportation, Housing and Urban Development: Section 8 

Renewals 

Sec. 213. Appropriations changes in mandatory programs 

(ChIMPs) with net costs 

The Senate-passed resolution again included a 60-vote point of 

order against any provision of appropriations legislation that would 

have been estimated as affecting direct spending or receipts if it 

were included in legislation other than appropriations legislation, 

if all three of the following conditions are met: 

(1) the provision would increase BA in—

(a) at least one of the nine fiscal years that follow the 

budget year, and 

(b) over the period of the total of the budget year and 

the nine fiscal years following the budget year; 

(2) the provision would increase net outlays over the period of the total of the nine fiscal years following the budget 

year; and 

(3) the sum total of all changes in mandatory programs in 

the legislation would increase net outlays as measured over the 

period of the total of the nine fiscal years following the budget 

year. 

The point of order would not apply against any ChIMPs that 

were enacted in each of the three fiscal years prior to the budget 

year. The point of order works like the Byrd rule in that it applies 

against individual provisions of legislation rather than against an 

entire bill, amendment, or conference report. If the point of order 

is not waived then the offending provision is stricken. 


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Sec. 214. Treatment of Postal Service administrative expenses 

The 2008 budget resolution included a provision, which remains in effect, requiring that all budget resolutions include the 

Administrative Expenses of the Social Security Administration in 

the 302(a) allocations to the Appropriations Committee. The Senate-passed resolution for 2009 included a new, similar requirement, 

that all budget resolutions include the Administrative Expenses of 

the Postal Service in the 302(a) allocations to the Appropriations 

Committee. 

Subtitle C—Other Provisions 

Sec. 221. Application and effect of changes in allocations and 

aggregates 

This section of the Senate-passed resolution details the adjustment procedures required to accommodate legislation provided for 

in this resolution, and requires adjustments made to be printed in 

the Congressional Record. For purposes of enforcement, the levels 

resulting from adjustments made pursuant to this resolution will 

have the same effect as if adopted in the levels of Title I of this 

resolution. The Committee on the Budget of the Senate determines 

the budgetary levels and estimates required to enforce budgetary 

points of order, including those pursuant to this resolution and the 

Congressional Budget Act of 1974. 

Sec. 222. Adjustments to reflect changes in concepts and definitions 

This section of the Senate-passed resolution allows the Chairman of the Committee on the Budget to adjust levels in this resolution upon the enactment of legislation that changes concepts or 

definitions. 

Secs. 223 and 224. Debt disclosure 

These sections reflected an amendment adopted in the Senate 

Budget Committee regarding the levels of debt assumed in the 

budget resolution and to require budget resolutions to contain a 

debt disclosure section. 

Sec. 225. Exercise of rulemaking powers 

This section of the Senate-passed resolution recognizes that the 

provisions of this resolution are adopted pursuant to the rulemaking power of the Senate, and also recognizes the Constitutional 

right of the Senate to change those rules as they apply to the Senate. 

Sec. 226. Circuit breaker to protect Social Security 

This section of the Senate resolution would create a 60-vote 

point of order, in any year in which CBO projects an on-budget deficit for the budget year or any subsequent fiscal year, against a 

budget resolution for that year (and amendments thereto) which 

would fail to reduce on-budget deficits relative to CBO’s projections 

and put the budget on a path to achieve on-budget balance within 

five years. There is an exception during times of war and low economic growth. 


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Conference Agreement 

Title III contains the following enforcement provisions: 

Subtitle A: House Enforcement Provisions 

Sec. 301. Program integrity initiatives and other adjustments 

(Secs. 401 and 404 of the House-passed resolution, as modified, and 

Sec. 211(d) of the Senate-passed resolution, as made applicable in 

the House) 

Sec. 302. Point of order against advance appropriations (Sec. 

403 of the House-passed resolution, as modified) 

Accounts identified for advance appropriations in the House: 

Advance Appropriations for Fiscal Year 2010: 

Employment and Training Administration 

Job Corps 

Education for the Disadvantaged 

School Improvement 

Children and Family Services (Head Start) 

Special Education 

Career, Technical and Adult Education 

Payment to Postal Service 

Tenant-based Rental Assistance 

Project-based Rental Assistance 

Advance Appropriations for Fiscal Year 2011: 

The Corporation for Public Broadcasting 

Subtitle B: Senate Enforcement Provisions 

The FY2008 budget resolution (S. Con Res. 21, 110th Congress) included many important enforcement provisions which remain in effect in the Senate. These include: 

• The Senate pay-as-you-go point of order (Sec. 201), requiring that new mandatory spending and tax cuts be offset or 

get 60 votes. The Senate-passed resolution assumed that all 

existing balances on the Senate pay-as-you-go ledger would be 

eliminated, and the scorecard reset to zero for 2008–2013 and 

2008–2018; 

• The 60-vote point of order against reconciliation increasing the deficit (Sec. 202); 

• The 60-vote point of order against emergency designations (Sec. 204); 

• Continued 60-vote enforcement of Senate budgetary 

points of order (Sec. 205); and 

• The requirement that the discretionary administrative 

expenses of the Social Security Administration be included in 

the Appropriations Committee’s 302(a) allocation in any budget 

resolution (Sec. 210). 

Sec. 311. Senate point of order against legislation increasing 

long-term deficits (Sec. 201 of the Senate-passed resolution, as 

modified) 

Sec. 312. Discretionary spending limits, program integrity initiatives, and other adjustments (Sec. 211 of the Senate-passed resolution, as modified) 


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Sec. 313. Point of order against advance appropriations (Sec. 

212 of the Senate-passed resolution, as modified) 

Accounts identified for advance appropriations in the Senate: 

Labor, HHS: 

Employment and Training Administration 

Job Corps 

Education for the Disadvantaged 

School Improvement 

Children and Family Services (Head Start) 

Special Education 

Career, Technical, and Adult Education 

Financial Services and General Government: Payment to Postal Service 

Transportation, Housing and Urban Development: 

Tenant-based Rental Assistance 

Project-based Rental Assistance 

Sec. 314. Senate point of order against provisions of appropriations legislation that constitute changes in mandatory programs 

with net costs (Sec. 213 of the Senate-passed resolution, as modified) 

Sec. 315. Senate point of order against legislation increasing 

short-term deficit 

This section creates a point of order in the Senate against legislation other than appropriations measures that would increase 

the on-budget deficit by more than $10 billion in any year covered 

by the budget resolution, unless the legislation is fully offset over 

the total of all of the years covered by the budget resolution. Its 

purpose is to complement paygo, by requiring that any measure 

with a cost of over $10 billion in any year be paid for over the 

budget window. The point of order can be waived only with 60 

votes. Like paygo and other Senate points of order, it will remain 

in place until September 30, 2017. 

Subtitle C: Other Provisions 

Sec. 321. Oversight of government performance (Sec. 402 of the 

House-passed resolution and Sec. 211(d) of the Senate-passed resolution, as modified) 

Sec. 322. Budgetary treatment of certain discretionary administrative expenses (Sec. 405 of the House-passed resolution and 

Sec. 214 of the Senate-passed resolution, as modified) 

Sec. 323. Application and effect of changes in allocations and 

aggregates (Sec. 406 of the House-passed resolution and Sec. 221 

of the Senate-passed resolution, as modified) 

Sec. 324. Adjustments to reflect changes in concepts and definitions (Sec. 407 of the House-passed resolution and Sec. 222 of the 

Senate-passed resolution, as modified) 

Sec. 325. Exercise of rulemaking powers (Sec. 408 of the 

House-passed resolution and Sec. 225 of the Senate-passed resolution, as modified) 


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POLICY 

House-passed Resolution 

Title V of the House-passed resolution contains the following 

policy sections: 

Sec. 501. Policy on middle-income tax relief 

Sec. 502. Policy on defense priorities 

Senate-passed Resolution 

Unlike Title V of the House-passed resolution, the Senate resolution did not contain a policy statement title. 

Conference Agreement 

Title IV of the conference agreement contains the following policy sections: 

Sec. 401. Policy on middle-income tax relief 

Sec. 401 applies only in the House. 

The policy of the Senate with regard to middle-income tax relief is as follows: 

The Senate adopted by a vote of 99 to 1 an amendment to S. 

Con. Res. 70 as reported by the Senate Committee on the Budget 

which, with regard to tax relief, reduced the revenue aggregates by 

$340.570 billion to provide for—

(A) extension of the child tax credit; 

(B) extension of marriage penalty relief; 

(C) extension of the 10 percent individual income tax 

bracket; 

(D) reform of the estate tax to protect small businesses 

and family farms; 

(E) extension of the adoption tax credit; 

(F) extension of the dependent care tax credit; 

(G) tax relief for America’s troops and veterans; 

(H) property tax relief for homeowners; 

(I) expansion of the availability of the child tax credit for 

low-income families; 

(J) relief for those whose homes were damaged or destroyed by Hurricanes Katrina and Rita; and 

(K) other, unspecified tax relief. 

It is the policy of the Senate that this resolution supports both 

the enactment of the policies listed above and the Senate pay-asyou-go rule in section 201 of the FY2008 budget resolution (S. Con 

Res. 21, 110th Congress), and that any additional revenues needed 

to meet the Senate’s tax policy goals can be achieved by closing the 

tax gap, shutting down abusive tax shelters, addressing offshore 

tax havens, and without raising taxes. 

Sec. 402. Policy on defense priorities 

Sec. 402 applies in both the House and the Senate. 

SENSE OF THE HOUSE, SENATE, AND CONGRESS 

House-passed Resolution 

Title VI of the House-passed resolution contains the following 

Sense of the House sections: 


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Sec. 601. Sense of the House on the Innovation Agenda 

and America COMPETES Act 

Sec. 602. Sense of the House on servicemembers’ and veterans’ health care and other priorities 

Sec. 603. Sense of the House on homeland security 

Sec. 604. Sense of the House regarding long-term fiscal reform 

Sec. 605. Sense of the House regarding waste, fraud, and 

abuse 

Sec. 606. Sense of the House regarding extension of the 

statutory pay-as-you-go rule 

Sec. 607. Sense of the House on long-term budgeting 

Sec. 608. Sense of the House regarding the need to maintain and build upon efforts to fight hunger 

Sec. 609. Sense of the House regarding affordable health 

coverage 

Sec. 610. Sense of the House regarding pay parity 

Sec. 611. Sense of the House regarding subprime lending 

and foreclosures 

Sec. 612. Sense of the House regarding the importance of 

child support enforcement 

Senate-passed Resolution 

Title III of the Senate-passed resolution contains the following 

Sense of the Senate sections: 

Sec. 307. Sense of the Senate regarding Medicaid administrative regulations 

The Senate-passed resolution expresses the sense of the Senate 

that administrative regulations should not undermine Medicaid’s 

role as a critical component of health care in the United States, cap 

Medicaid spending or otherwise shift Medicaid cost burdens to 

state or local governments and their taxpayers and health providers, or undermine the federal guarantee of health insurance coverage that Medicaid provides. 

Sec. 328. Sense of the Senate regarding diversion of funds 

set aside for USPTO 

The Senate-passed resolution expresses the sense of the Senate 

that none of the funds recommended by this resolution or appropriated or otherwise made available under any other Act to the 

U.S. Patent and Trademark Office shall be diverted, redirected, 

transferred, or used for any purpose other than that for which the 

funds were intended. 

Sec. 334. Sense of the Senate regarding ‘‘moving to work 

agreement’’

The Senate-passed resolution expresses the sense of the Senate 

that the Philadelphia Housing Authority should be granted a oneyear extension of its ‘‘Moving to Work Agreement’’ with the U.S. 

Department of Housing and Urban Development. 

Sec. 335. Sense of the Senate regarding balanced budget 

amendment to the Constitution of the United States 

The Senate-passed resolution expresses the sense of the Senate 

that a balanced budget amendment to the Constitution should be 

voted on at the earliest opportunity. 


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Sec. 336. Sense of the Senate regarding comprehensive legislation to legalize importation of prescription drugs from highly-industrialized countries with safe pharmaceutical infrastructures 

The Senate-passed resolution expresses the sense of the Senate 

in support of Senate consideration of comprehensive legislation to 

legalize the importation of prescription drugs from highly-industrialized countries with safe pharmaceutical infrastructures and create a regulatory pathway to ensure such drugs are safe. 

Conference Agreement 

Title V of the conference agreement contains the following 

sense of the Senate and Congress provisions: 

Subtitle A: Sense of the Senate 

Sec. 501. Sense of the Senate regarding Medicaid administrative regulations 

Subtitle B: Sense of the Congress 

Sec. 511. Sense of the Congress on servicemembers’ and veterans’ health care and other priorities 

Sec. 512. Sense of the Congress on homeland security 

Sec. 513. Sense of the Congress regarding long-term fiscal reform 

Sec. 514. Sense of the Congress regarding waste, fraud, and 

abuse 

Sec. 515. Sense of the Congress regarding extension of the statutory pay-as-you-go rule 

Sec. 516. Sense of the Congress on long-term budgeting 

Sec. 517. Sense of the Congress regarding affordable health 

coverage 

Sec. 518. Sense of the Congress regarding pay parity 

Sec. 519. Sense of the Congress regarding subprime lending 

and foreclosures 

Sec. 520. Sense of the Congress regarding the need to maintain 

and build upon efforts to fight hunger 

Sec. 521. Sense of the Congress regarding the importance of 

child support enforcement 

Sec. 522. Sense of the Congress on the Innovation Agenda and 

America COMPETES Act 

ECONOMIC ASSUMPTIONS 

Section 301(g)(2) of the Congressional Budget Act requires that 

the joint explanatory statement accompanying a conference report 

on a budget resolution set forth the common economic assumptions 

upon which the joint statement and conference report are based. 

The conference agreement is built upon the economic forecasts developed by the Congressional Budget Office, as updated in March 

2008 to include the forecasted economic effects of the fiscal stimulus package. 

House-passed Resolution 

CBO’s economic assumptions were used. 


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Senate-passed Resolution 

CBO’s economic assumptions were used. 

CONFERENCE AGREEMENT

CBO’s economic assumptions were used. 

ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION 

[Calendar Years] 

2008 2009 2010 2011 2012 2013 

Real GDP, Percent Change, Year Over Year ............................................ 1.9 2.3 3.9 3.6 2.7 2.6 

GDP Price Index, Percent Change, Year Over Year .................................. 1.8 1.7 1.9 1.9 1.9 1.9 

Consumer Prices, Percent Change, Year Over Year ................................ 2.8 1.9 1.9 2.1 2.2 2.2 

Unemployment Rate, Percent, Yearly Average ......................................... 5.2 5.5 5.1 4.8 4.8 4.8 

3-Month Treasury Bill Rate, Percent, Yearly Average .............................. 2.1 2.4 4.4 4.6 4.7 4.7 

10-Year Treasury Bond Rate, Percent, Yearly Average ............................ 3.6 3.8 5.0 5.2 5.2 5.2 

ALLOCATIONS 

As required in section 302 of the Congressional Budget Act, the 

joint statement of managers includes an allocation, based on the 

conference agreement, of total budget authority and total budget 

outlays among each of the appropriate committees. The allocations 

are as follows: 


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PAY-AS-YOU-GO SCORECARD FOR THE SENATE 

REFLECTING LEVELS FOR THE CONFERENCE AGREEMENT 

Period of the current fiscal year, the budget year, and the four 

fiscal years following the budget year: $0. 

Period of the current fiscal year, the budget year, and the nine 

fiscal years following the budget year: $0. 

HOUSE RULE XXVIII 

The adoption of this conference agreement by the two houses 

would result in the engrossment of a House Joint Resolution 

changing the statutory limit on the public debt pursuant to House 

Rule XXVIII, clause 3. The rule requires a joint resolution in the 

following form: 

Resolved, by the Senate and the House of Representatives of the United States in Congress assembled, that 

subsection (b) of section 3101 of title 31, United States 

Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof 

$10,615,000,000,000. 

Legislative jurisdiction over the public debt remains with the 

Finance Committee in the Senate and the Committee on Ways and 

Means in the House. 

JOHN SPRATT, 

ROSA L. DELAURO, 

CHET EDWARDS, 

Managers on the Part of the House. 

KENT CONRAD, 

PATTY MURRAY, 

RON WYDEN, 

Managers on the Part of the Senate. 

Æ 


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