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[House Report 110-720]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-720

======================================================================

 
   PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENTS TO THE HOUSE 
   AMENDMENTS TO THE SENATE AMENDMENT TO THE BILL (H.R. 2642) MAKING 
 APPROPRIATIONS FOR MILITARY CONSTRUCTION, THE DEPARTMENT OF VETERANS 
AFFAIRS, AND RELATED AGENCIES FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 
                      2008, AND FOR OTHER PURPOSES

                                _______
                                

   June 19, 2008.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Ms. Slaughter, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1284]

    The Committee on Rules, having had under consideration 
House Resolution 1284, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of the Senate 
amendments to the House amendments to the Senate amendment to 
the bill (H.R. 2642), the ``Supplemental Appropriations Act, 
2008.'' The resolution would make in order a motion offered by 
the chairman of the Committee on Appropriations that the House 
(1) concur in the Senate amendment to the House amendment 
numbered 1 and (2) concur in the Senate amendment to the House 
amendment numbered 2 with the amendment printed in this report.
    The rule waives all points of order against the motion 
except those arising under clause 10 of rule XXI. The motion 
shall be debatable for 1 hour equally divided and controlled by 
the chairman and ranking minority member of the Committee on 
Appropriations. The Senate amendment and the motion shall be 
considered as read. The Chair shall divide the question between 
the dispositions of the two Senate amendments.
    Notwithstanding the operation of the previous question, the 
Chair may postpone consideration of the motion to a time 
designated by the Speaker. The rule permits the chairman of the 
Committee on Appropriations to insert in the Congressional 
Record dated June 19, 2008, such material as he may deem 
explanatory of the motion.
    The rule provides that it shall be in order to consider a 
concurrent resolution providing for the adjournment of the 
House and Senate during the month of July.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against the motion 
(except those arising under clause 10 of rule XXI) includes a 
waiver of section 306 of the Congressional Budget Act 
(prohibiting consideration in the House of measures within the 
jurisdiction of the Committee on the Budget unless such 
measures have been reported by the Committee on the Budget or 
the Committee on the Budget has been discharged from their 
consideration).

      SUMMARY OF THE HOUSE AMENDMENT MADE IN ORDER UNDER THE RULE

    The House amendment to the Senate amendment to the House 
amendment numbered 2 provides that, in lieu of the matter 
proposed to be inserted by the Senate, language be inserted 
providing supplemental appropriations for military 
construction, international affairs, disaster assistance, and 
other security-related and domestic needs, as well as language 
providing for accountability in contracting, improved veterans 
education benefits, temporary extended unemployment 
compensation, and a moratorium on certain Medicaid regulations. 
The amendment also strikes lines 1 through 3 on page 60 of the 
Senate engrossed amendment of September 6, 2007.

        TEXT OF THE HOUSE AMENDMENT MADE IN ORDER UNDER THE RULE

    In lieu of the matter proposed to be inserted by the Senate 
amendment numbered 2 to the House amendment numbered 2 to the 
Senate amendment to the bill H.R. 2642, insert the following:

   That the following sums are appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2008, and for other purposes, namely:

    TITLE I--MILITARY CONSTRUCTION, VETERANS AFFAIRS, INTERNATIONAL 
              AFFAIRS, AND OTHER SECURITY-RELATED MATTERS

                         CHAPTER 1--AGRICULTURE

                       DEPARTMENT OF AGRICULTURE

                      Foreign Agricultural Service

                     public law 480 title ii grants

  For an additional amount for ``Public Law 480 Title II 
Grants'', $850,000,000, to remain available until expended.
  For an additional amount for ``Public Law 480 Title II 
Grants'', $395,000,000, to become available on October 1, 2008, 
and to remain available until expended.

                           CHAPTER 2--JUSTICE

                         DEPARTMENT OF JUSTICE

                      Office of Inspector General

  For an additional amount for ``Office of Inspector General'', 
$4,000,000, to remain available until September 30, 2009.

                            Legal Activities

            salaries and expenses, general legal activities

  For an additional amount for ``Salaries and Expenses, General 
Legal Activities'', $1,648,000, to remain available until 
September 30, 2009.

             salaries and expenses, united states attorneys

  For an additional amount for ``Salaries and Expenses, United 
States Attorneys'', $5,000,000, to remain available until 
September 30, 2009.

                     United States Marshals Service

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$28,621,000, to remain available until September 30, 2009.

                    Federal Bureau of Investigation

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$106,122,000, to remain available until September 30, 2009.
  For an additional amount for ``Salaries and Expenses'', 
$82,600,000, to become available on October 1, 2008, and to 
remain available until September 30, 2009.

                    Drug Enforcement Administration

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$29,861,000, to remain available until September 30, 2009.

          Bureau of Alcohol, Tobacco, Firearms and Explosives

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$4,000,000, to remain available until September 30, 2009.

                         Federal Prison System

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$9,100,000, to remain available until September 30, 2009.

                    GENERAL PROVISION, THIS CHAPTER

  Sec. 1201.  Funds appropriated by this chapter, or made 
available by the transfer of funds in this chapter, for 
intelligence or intelligence related activities are deemed to 
be specifically authorized by the Congress for purposes of 
section 504 of the National Security Act of 1947 (50 U.S.C. 
414).

         CHAPTER 3--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

   For an additional amount for ``Military Construction, 
Army'', $1,108,200,000, of which $921,000,000 shall remain 
available until September 30, 2009, and of which $187,200,000 
for child development centers and trainee and recruit 
facilities (including planning and design) shall remain 
available until September 30, 2012: Provided, That 
notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and 
military construction projects not otherwise authorized by law: 
Provided further, That of the funds provided under this 
heading, not to exceed $73,400,000 shall be available for 
study, planning, design, and architect and engineer services: 
Provided further, That funds provided under this heading for 
Iraq shall not be obligated or expended until the Secretary of 
Defense certifies to the Committees on Appropriations of both 
Houses of Congress that none of the funds are to be used for 
the purpose of providing facilities for the permanent basing of 
United States military personnel in Iraq.

              Military Construction, Navy and Marine Corps

   For an additional amount for ``Military Construction, Navy 
and Marine Corps'', $355,907,000, of which $295,516,000 shall 
remain available until September 30, 2009, and of which 
$60,391,000 for child development centers and trainee and 
recruit facilities (including planning and design) shall remain 
available until September 30, 2012: Provided, That 
notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and 
military construction projects not otherwise authorized by law: 
Provided further, That of the funds provided under this 
heading, not to exceed $15,843,000 shall be available for 
study, planning, design, and architect and engineer services.

                    Military Construction, Air Force

   For an additional amount for ``Military Construction, Air 
Force'', $399,627,000, of which $361,600,000 shall remain 
available until September 30, 2009, and of which $38,027,000 
for child development centers (including planning and design) 
shall remain available until September 30, 2012: Provided, That 
notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and 
military construction projects not otherwise authorized by law: 
Provided further, That of the funds provided under this 
heading, not to exceed $36,427,000 shall be available for 
study, planning, design, and architect and engineer services: 
Provided further, That funds provided under this heading for 
Iraq shall not be obligated or expended until the Secretary of 
Defense certifies to the Committees on Appropriations of both 
Houses of Congress that none of the funds are to be used for 
the purpose of providing facilities for the permanent basing of 
United States military personnel in Iraq.

                  Military Construction, Defense-Wide

   For an additional amount for ``Military Construction, 
Defense-Wide'', $890,921,000, of which $27,600,000 shall remain 
available until September 30, 2009, and of which $863,321,000 
for medical treatment facilities (including planning and 
design) shall remain available until September 30, 2012: 
Provided, That notwithstanding any other provision of law, such 
funds may be obligated and expended to carry out planning and 
design and military construction projects not otherwise 
authorized by law.

           Family Housing Construction, Navy and Marine Corps

   For an additional amount for ``Family Housing Construction, 
Navy and Marine Corps'', $11,766,000, to remain available until 
September 30, 2009: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction 
projects not otherwise authorized by law.

            Department of Defense Base Closure Account 2005

   For deposit into the Department of Defense Base Closure 
Account 2005, established by section 2906A(a)(1) of the Defense 
Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
$1,278,886,000, to remain available until expended: Provided, 
That notwithstanding any other provision of law, such funds may 
be obligated and expended to carry out planning and design and 
military construction projects not otherwise authorized by law.

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration

                       general operating expenses

   For an additional amount for ``General Operating Expenses'', 
$100,000,000, to remain available until September 30, 2009.

                     information technology systems

  For an additional amount for ``Information Technology 
Systems'', $20,000,000, to remain available until September 30, 
2009.

                      construction, major projects

  For an additional amount for ``Construction, Major 
Projects'', $396,377,000, to remain available until expended, 
which shall be for acceleration and completion of planned major 
construction of Level I polytrauma rehabilitation centers as 
identified in the Department of Veterans Affairs' Five Year 
Capital Plan: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and major medical facility 
construction not otherwise authorized by law: Provided further, 
That within 30 days of enactment of this Act the Secretary 
shall submit to the Committees on Appropriations of both Houses 
of Congress an expenditure plan for funds provided under this 
heading.

                    GENERAL PROVISIONS, THIS CHAPTER

  Sec. 1301.  In addition to amounts otherwise appropriated or 
made available under the heading ``Military Construction, 
Army'', there is hereby appropriated an additional 
$200,000,000, to remain available until September 30, 2012, to 
accelerate barracks improvements at Department of Army 
installations: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to 
carry out planning and design and barracks construction not 
otherwise authorized by law: Provided further, That within 30 
days of enactment of this Act the Secretary of the Army shall 
submit to the Committees on Appropriations of both Houses of 
Congress an expenditure plan for barracks construction prior to 
obligation.
  Sec. 1302.  None of the funds appropriated in this or any 
other Act may be used to disestablish, reorganize, or relocate 
the Armed Forces Institute of Pathology, except for the Armed 
Forces Medical Examiner, until the President has established, 
as required by section 722 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 
Stat. 199; 10 U.S.C. 176 note), a Joint Pathology Center.
  Sec. 1303. (a) Limitation on Authority.--
          (1) In general.--Chapter 53 of title 38, United 
        States Code, is amended by inserting after section 5302 
        the following new section:

``Sec. 5302A Collection of indebtedness: certain debts of members of 
                    the Armed Forces and veterans who die of injury 
                    incurred or aggravated in the line of duty in a 
                    combat zone

  ``(a) Limitation on Authority.--The Secretary may not collect 
all or any part of an amount owed to the United States by a 
member of the Armed Forces or veteran described in subsection 
(b) under any program under the laws administered by the 
Secretary, other than a program referred to in subsection (c), 
if the Secretary determines that termination of collection is 
in the best interest of the United States.
  ``(b) Covered Individuals.--A member of the Armed Forces or 
veteran described in this subsection is any member or veteran 
who dies as a result of an injury incurred or aggravated in the 
line of duty while serving in a theater of combat operations 
(as determined by the Secretary in consultation with the 
Secretary of Defense) in a war or in combat against a hostile 
force during a period of hostilities (as that term is defined 
in section 1712A(a)(2)(B) of this title) after September 11, 
2001.
  ``(c) Inapplicability to Housing and Small Business Benefit 
Programs.--The limitation on authority in subsection (a) shall 
not apply to any amounts owed the United States under any 
program carried out under chapter 37 of this title.''.
          (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 53 of such title is amended by 
        inserting after the item relating to section 5302 the 
        following new item:

``5302A. Collection of indebtedness: certain debts of members of the 
          Armed Forces and veterans who die of injury incurred or 
          aggravated in the line of duty in a combat zone.''.

  (b) Equitable Refund.--In any case where all or any part of 
an indebtedness of a covered individual, as described in 
section 5302A(a) of title 38, United States Code, as added by 
subsection (a)(1), was collected after September 11, 2001, and 
before the date of the enactment of this Act, and the Secretary 
of Veterans Affairs determines that such indebtedness would 
have been terminated had such section been in effect at such 
time, the Secretary may refund the amount so collected if the 
Secretary determines that the individual is equitably entitled 
to such refund.
  (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to collections of indebtedness of 
members of the Armed Forces and veterans who die on or after 
September 11, 2001.
  (d) Short Title.--This section may be cited as the ``Combat 
Veterans Debt Elimination Act of 2008''.

         CHAPTER 4--DEPARTMENT OF STATE AND FOREIGN OPERATIONS

     SUBCHAPTER A--SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

   For an additional amount for ``Diplomatic and Consular 
Programs'', $1,465,700,000, to remain available until September 
30, 2009, of which $210,400,000 is for worldwide security 
protection and shall remain available until expended: Provided, 
That not more than $1,150,000,000 of the funds appropriated 
under this heading shall be available for diplomatic operations 
in Iraq: Provided further, That of the funds appropriated under 
this heading, not more than $30,000,000 shall be made available 
to establish and implement a coordinated civilian response 
capacity at the United States Department of State.

                      office of inspector general

                     (including transfer of funds)

   For an additional amount for ``Office of Inspector 
General'', $9,500,000, to remain available until September 30, 
2009: Provided, That $2,500,000 shall be transferred to the 
Special Inspector General for Iraq Reconstruction for 
reconstruction oversight, and $2,000,000 shall be transferred 
to the Special Inspector General for Afghanistan Reconstruction 
for reconstruction oversight.

            embassy security, construction, and maintenance

   For an additional amount for ``Embassy Security, 
Construction, and Maintenance'', $76,700,000, to remain 
available until expended, for facilities in Afghanistan.

                      International Organizations

              contributions to international organizations

   For an additional amount for ``Contributions to 
International Organizations'', $66,000,000, to remain available 
until September 30, 2009.

        contributions for international peacekeeping activities

   For an additional amount for ``Contributions for 
International Peacekeeping Activities'', $373,708,000, to 
remain available until September 30, 2009, of which 
$333,600,000 shall be made available for the United Nations-
African Union Hybrid Mission in Darfur.

                             RELATED AGENCY

                    Broadcasting Board of Governors

                 international broadcasting operations

   For an additional amount for ``International Broadcasting 
Operations'', $2,000,000, to remain available until September 
30, 2009.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                   international disaster assistance

   For an additional amount for ``International Disaster 
Assistance'', $220,000,000, to remain available until expended.

   operating expenses of the united states agency for international 
                              development

   For an additional amount for ``Operating Expenses of the 
United States Agency for International Development'', 
$150,500,000, to remain available until September 30, 2009: 
Provided, That of the funds appropriated under this heading, 
not more than $25,000,000 shall be made available to establish 
and implement a coordinated civilian response capacity at the 
United States Agency for International Development.

   operating expenses of the united states agency for international 
                development office of inspector general

   For an additional amount for ``Operating Expenses of the 
United States Agency for International Development Office of 
Inspector General'', $4,000,000, to remain available until 
September 30, 2009.

                  Other Bilateral Economic Assistance

                         economic support fund

   For an additional amount for ``Economic Support Fund'', 
$1,882,500,000, to remain available until September 30, 2009, 
of which not more than $424,000,000 may be made available for 
assistance for Iraq, $175,000,000 shall be made available for 
assistance for Jordan to meet the needs of Iraqi refugees, and 
up to $53,000,000 may be made available for energy-related 
assistance for North Korea, notwithstanding any other provision 
of law: Provided, That not more than $171,000,000 of the funds 
appropriated under this heading in this subchapter shall be 
made available for assistance for the West Bank and Gaza and 
none of such funds shall be for cash transfer assistance: 
Provided further, That of the funds appropriated under this 
heading, $1,000,000 shall be made available for the Office of 
the United Nations High Commissioner for Human Rights in 
Mexico: Provided further, That the funds made available under 
this heading for energy-related assistance for North Korea may 
be made available to support the goals of the Six Party Talks 
Agreements after the Secretary of State determines and reports 
to the Committees on Appropriations that North Korea is 
continuing to fulfill its commitments under such agreements.

                          Department of State

                             democracy fund

   For an additional amount for ``Democracy Fund'', 
$76,000,000, to remain available until September 30, 2009, of 
which $75,000,000 shall be for democracy programs in Iraq and 
$1,000,000 shall be for democracy programs in Chad.

          international narcotics control and law enforcement

   For an additional amount for ``International Narcotics 
Control and Law Enforcement'', $390,300,000, to remain 
available until September 30, 2009, of which not more than 
$25,000,000 shall be made available for security assistance for 
the West Bank.

                    migration and refugee assistance

   For an additional amount for ``Migration and Refugee 
Assistance'', $315,000,000, to remain available until expended.

     united states emergency refugee and migration assistance fund

   For an additional amount for ``United States Emergency 
Refugee and Migration Assistance Fund'', $31,000,000, to remain 
available until expended.

    nonproliferation, anti-terrorism, demining and related programs

   For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $13,700,000, to 
remain available until September 30, 2009.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   foreign military financing program

   For an additional amount for ``Foreign Military Financing 
Program'', $137,500,000, to remain available until September 
30, 2009, of which $17,000,000 shall be made available for 
assistance for Jordan and up to $116,500,000 may be made 
available for assistance for Mexico.
  Not more than $1,350,000 of the funds appropriated or 
otherwise made available under the heading ``Foreign Military 
Financing Program'' by the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2008 
(division J of Public Law 110-161) that were previously 
transferred to and merged with ``Diplomatic and Consular 
Programs'' may be made available for any purposes authorized 
for that account, of which up to $500,000 shall be made 
available to increase the capacity of the United States Embassy 
in Mexico City to implement section 620J of the Foreign 
Assistance Act of 1961: Provided, That funds made available by 
this paragraph shall not be subject to Section 8002 of this 
Act.

 SUBCHAPTER B--BRIDGE FUND SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
                                  2009

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

   For an additional amount for ``Diplomatic and Consular 
Programs'', $704,900,000, which shall become available on 
October 1, 2008, and remain available through September 30, 
2009: Provided, That of the funds appropriated under this 
heading, $78,400,000 is for worldwide security protection and 
shall remain available until expended: Provided further, That 
not more than $550,500,000 of the funds appropriated under this 
heading shall be available for diplomatic operations in Iraq.

                      office of inspector general

                     (including transfer of funds)

   For an additional amount for ``Office of Inspector 
General'', $57,000,000, which shall become available on October 
1, 2008, and remain available through September 30, 2009: 
Provided, That $36,500,000 shall be transferred to the Special 
Inspector General for Iraq Reconstruction for reconstruction 
oversight and $5,000,000 shall be transferred to the Special 
Inspector General for Afghanistan Reconstruction for 
reconstruction oversight.

            embassy security, construction, and maintenance

   For an additional amount for ``Embassy Security, 
Construction, and Maintenance'', $41,300,000, which shall 
become available on October 1, 2008, and remain available until 
expended, for facilities in Afghanistan.

                      International Organizations

              contributions to international organizations

   For an additional amount for ``Contributions to 
International Organizations'', $75,000,000, which shall become 
available on October 1, 2008, and remain available through 
September 30, 2009.

        contributions for international peacekeeping activities

   For an additional amount for ``Contributions for 
International Peacekeeping Activities'', $150,500,000, which 
shall become available on October 1, 2008, and remain available 
through September 30, 2009.

                             RELATED AGENCY

                    Broadcasting Board of Governors

                 international broadcasting operations

   For an additional amount for ``International Broadcasting 
Operations'', $6,000,000, which shall become available on 
October 1, 2008, and remain available through September 30, 
2009.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                    global health and child survival

   For an additional amount for ``Global Health and Child 
Survival'', $75,000,000, which shall become available on 
October 1, 2008, and remain available through September 30, 
2009, for programs to combat avian influenza.

                         development assistance

   For an additional amount for ``Development Assistance'', 
$200,000,000, for assistance for developing countries to 
address the international food crisis notwithstanding any other 
provision of law, which shall become available on October 1, 
2008, and remain available through September 30, 2010: 
Provided, That such assistance should be carried out consistent 
with the purposes of section 103(a)(1) of the Foreign 
Assistance Act of 1961: Provided further, That not more than 
$50,000,000 should be made available for local or regional 
purchase and distribution of food: Provided further, That the 
Secretary of State shall submit to the Committees on 
Appropriations not later than 45 days after enactment of this 
Act, and prior to the initial obligation of funds appropriated 
under this heading, a report on the proposed uses of such funds 
to alleviate hunger and malnutrition, including a list of those 
countries facing significant food shortages.

                   international disaster assistance

   For an additional amount for ``International Disaster 
Assistance'', $200,000,000, which shall become available on 
October 1, 2008, and remain available until expended.

   operating expenses of the united states agency for international 
                              development

   For an additional amount for ``Operating Expenses of the 
United States Agency for International Development'', 
$93,000,000, which shall become available on October 1, 2008, 
and remain available through September 30, 2009.

   operating expenses of the united states agency for international 
                development office of inspector general

   For an additional amount for ``Operating Expenses of the 
United States Agency for International Development Office of 
Inspector General'', $1,000,000, which shall become available 
on October 1, 2008, and remain available through September 30, 
2009.

                  Other Bilateral Economic Assistance

                         economic support fund

   For an additional amount for ``Economic Support Fund'', 
$1,124,800,000, which shall become available on October 1, 
2008, and remain available through September 30, 2009, of which 
not more than $102,500,000 may be made available for assistance 
for Iraq, $100,000,000 shall be made available for assistance 
for Jordan, not more than $455,000,000 may be made available 
for assistance for Afghanistan, not more than $150,000,000 may 
be made available for assistance for Pakistan, not more than 
$150,000,000 shall be made available for assistance for the 
West Bank and Gaza, and $15,000,000 may be made available for 
energy-related assistance for North Korea, notwithstanding any 
other provision of law.

                          Department of State

          international narcotics control and law enforcement

   For an additional amount for ``International Narcotics 
Control and Law Enforcement'', $199,000,000, which shall become 
available on October 1, 2008, and remain available through 
September 30, 2009: Provided, That not more than $50,000,000 of 
the funds appropriated under this heading shall be made 
available for security assistance for the West Bank and up to 
$48,000,000 may be made available for assistance for Mexico.

                    migration and refugee assistance

   For an additional amount for ``Migration and Refugee 
Assistance'', $350,000,000, which shall become available on 
October 1, 2008, and remain available until expended.

    nonproliferation, anti-terrorism, demining and related programs

   For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $4,500,000, for 
humanitarian demining assistance for Iraq, which shall become 
available on October 1, 2008, and remain available through 
September 30, 2009.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   foreign military financing program

   For an additional amount for ``Foreign Military Financing 
Program'', $302,500,000, which shall become available on 
October 1, 2008, and remain available through September 30, 
2009, of which $100,000,000 shall be made available for 
assistance for Jordan, and not less than $170,000,000 shall be 
available for grants only for Israel and shall be disbursed not 
later than November 1, 2008: Provided, That section 3802(c) of 
title III, chapter 8 of Public Law 110-28 shall apply to funds 
made available under this heading for assistance for Lebanon.

                        peacekeeping operations

   For an additional amount for ``Peacekeeping Operations'', 
$95,000,000, which shall become available on October 1, 2008, 
and remain available through September 30, 2009.

             SUBCHAPTER C--GENERAL PROVISIONS, THIS CHAPTER

                        EXTENSION OF AUTHORITIES

  Sec. 1401.  Funds appropriated by this chapter may be 
obligated and expended notwithstanding section 10 of Public Law 
91-672 (22 U.S.C. 2412), section 15 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2680), section 313 of 
the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995 (22 U.S.C. 6212), and section 504(a)(1) of the National 
Security Act of 1947 (50 U.S.C. 414(a)(1)).

                                  IRAQ

  Sec. 1402.  (a) Asset Transfer Agreement.--
          (1) None of the funds appropriated by this chapter 
        for infrastructure maintenance activities in Iraq may 
        be made available until the Secretary of State 
        certifies and reports to the Committees on 
        Appropriations that the Governments of the United 
        States and Iraq have entered into, and are 
        implementing, an asset transfer agreement that includes 
        commitments by the Government of Iraq to maintain 
        United States-funded infrastructure in Iraq.
          (2) None of the funds appropriated by this chapter 
        may be made available for the construction of prison 
        facilities in Iraq.
  (b) Anti-Corruption.--Not more than 40 percent of the funds 
appropriated by this chapter for rule of law programs in Iraq 
may be made available for assistance for the Government of Iraq 
until the Secretary of State reports to the Committees on 
Appropriations that a comprehensive anti-corruption strategy 
has been developed, and is being implemented, by the Government 
of Iraq, and the Secretary of State submits a list, in 
classified form if necessary, to the Committees on 
Appropriations of senior Iraqi officials who the Secretary has 
credible evidence to believe have committed corrupt acts.
  (c) Provincial Reconstruction Teams.--None of the funds 
appropriated by this chapter for the operational or program 
expenses of Provincial Reconstruction Teams (PRTs) in Iraq may 
be made available until the Secretary of State submits a report 
to the Committees on Appropriations detailing--
          (1) the strategy for the eventual winding down and 
        close out of PRTs;
          (2) anticipated costs associated with PRT operations, 
        programs, and eventual winding down and close out, 
        including security for PRT personnel and anticipated 
        Government of Iraq contributions; and
          (3) anticipated placement and cost estimates of 
        future United States Consulates in Iraq.
  (d) Community Stabilization Program.--Not more than 50 
percent of the funds appropriated by this chapter for the 
Community Stabilization Program in Iraq may be made available 
until the Secretary of State certifies and reports to the 
Committees on Appropriations that the United States Agency for 
International Development is implementing recommendations 
contained in Office of Inspector General Audit Report No. E-
267-08-001-P to ensure accountability of funds.
  (e) Matching Requirement.--
          (1) Notwithstanding any other provision of law, funds 
        appropriated by this chapter for assistance for Iraq 
        shall be made available only to the extent that the 
        Government of Iraq matches such assistance on a dollar-
        for-dollar basis.
          (2) Paragraph (1) shall not apply to funds made 
        available for--
                  (A) grants and cooperative agreements for 
                programs to promote democracy and human rights;
                  (B) the Community Action Program and other 
                assistance through civil society organizations;
                  (C) humanitarian demining; or
                  (D) assistance for refugees, internally 
                displaced persons, and civilian victims of the 
                military operations.
          (3) The Secretary of State shall certify to the 
        Committees on Appropriations prior to the initial 
        obligation of funds pursuant to this section that the 
        Government of Iraq has committed to obligate matching 
        funds on a dollar-for-dollar basis. The Secretary shall 
        submit a report to the Committees on Appropriations not 
        later than September 30, 2008, and 180 days thereafter, 
        detailing the amounts of funds obligated and expended 
        by the Government of Iraq to meet the requirements of 
        this section.
          (4) Not later than 45 days after enactment of this 
        Act, the Secretary of State shall submit a report to 
        the Committees on Appropriations detailing the amounts 
        provided by the Government of Iraq since June 30, 2004, 
        to assist Iraqi refugees in Syria, Jordan, and 
        elsewhere, and the amount of such assistance the 
        Government of Iraq plans to provide in fiscal year 
        2008. The Secretary shall work expeditiously with the 
        Government of Iraq to establish an account within its 
        annual budget sufficient to, at a minimum, match United 
        States contributions on a dollar-for-dollar basis to 
        organizations and programs for the purpose of assisting 
        Iraqi refugees.

                              AFGHANISTAN

  Sec. 1403.  (a) Assistance for Women and Girls.--Funds 
appropriated by this chapter under the heading ``Economic 
Support Fund'' that are available for assistance for 
Afghanistan shall be made available, to the maximum extent 
practicable, through local Afghan provincial and municipal 
governments and Afghan civil society organizations and in a 
manner that emphasizes the participation of Afghan women and 
directly improves the economic, social and political status of 
Afghan women and girls.
  (b) Higher Education.--Of the funds appropriated by this 
chapter under the heading ``Economic Support Fund'' that are 
made available for education programs in Afghanistan, not less 
than 50 percent shall be made available to support higher 
education and vocational training programs in law, accounting, 
engineering, public administration, and other disciplines 
necessary to rebuild the country, in which the participation of 
women is emphasized.
  (c) Post-Operations Assistance.--Of the funds appropriated by 
this chapter under the heading ``Economic Support Fund'' that 
are available for assistance for Afghanistan, not less than 
$2,000,000 shall be made available for a United States 
contribution to the North Atlantic Treaty Organization/
International Security Assistance Force Post-Operations 
Humanitarian Relief Fund.
  (d) Anti-Corruption.--Not later than 90 days after the 
enactment of this Act, the Secretary of State shall--
          (1) submit a report to the Committees on 
        Appropriations on actions being taken by the Government 
        of Afghanistan to combat corruption within the national 
        and provincial governments, including to remove and 
        prosecute officials who have committed corrupt acts;
          (2) submit a list to the Committees on 
        Appropriations, in classified form if necessary, of 
        senior Afghan officials who the Secretary has credible 
        evidence to believe have committed corrupt acts; and
          (3) certify and report to the Committees on 
        Appropriations that effective mechanisms are in place 
        to ensure that assistance to national government 
        ministries and provincial governments will be properly 
        accounted for.

                               WEST BANK

  Sec. 1404.  Not later than 90 days after the date of 
enactment of this Act and 180 days thereafter, the Secretary of 
State shall submit to the Committees on Appropriations a report 
on assistance provided by the United States for the training of 
Palestinian security forces, including detailed descriptions of 
the training, curriculum, and equipment provided; an assessment 
of the training and the performance of forces after training 
has been completed; and a description of the assistance that 
has been pledged and provided to Palestinian security forces by 
other donors: Provided, That not later than 90 days after the 
date of enactment of this Act, the Secretary of State shall 
report to the Committees on Appropriations, in classified form 
if necessary, on the security strategy of the Palestinian 
Authority.

            WAIVER OF CERTAIN SANCTIONS AGAINST NORTH KOREA

  Sec. 1405.  (a) Waiver Authority.--
          (1) In general.--Except as provided in subsection 
        (b), the President may waive in whole or in part, with 
        respect to North Korea, the application of any sanction 
        contained in subparagraph (A), (B), (D) or (G) under 
        section 102(b)(2) of the Arms Export Control Act (22 
        U.S.C. 2799aa-1(b)), for the purpose of providing 
        assistance related to--
                  (A) the implementation and verification of 
                the compliance by North Korea with its 
                commitment, undertaken in the Joint Statement 
                of September 19, 2005, to abandon all nuclear 
                weapons and existing nuclear programs as part 
                of the verifiable denuclearization of the 
                Korean Peninsula; and
                  (B) the elimination of the capability of 
                North Korea to develop, deploy, transfer, or 
                maintain weapons of mass destruction and their 
                delivery systems.
          (2) Limitation.--The authority under paragraph (1) 
        shall expire 5 years after the date of enactment of 
        this Act.
  (b) Exceptions.--
          (1) Limited exception related to certain sanctions 
        and prohibitions.--The authority under subsection (a) 
        shall not apply with respect to a sanction or 
        prohibition under subparagraph (B) or (G) of section 
        102(b)(2) of the Arms Export Control Act, unless the 
        President determines and certifies to the appropriate 
        congressional committees that--
                  (A) all reasonable steps will be taken to 
                assure that the articles or services exported 
                or otherwise provided will not be used to 
                improve the military capabilities of the armed 
                forces of North Korea; and
                  (B) such waiver is in the national security 
                interests of the United States.
          (2) Limited exception related to certain 
        activities.--Unless the President determines and 
        certifies to the appropriate congressional committees 
        that using the authority under subsection (a) is vital 
        to the national security interests of the United 
        States, such authority shall not apply with respect 
        to--
                  (A) an activity described in subparagraph (A) 
                of section 102(b)(1) of the Arms Export Control 
                Act that occurs after September 19, 2005, and 
                before the date of the enactment of this Act;
                  (B) an activity described in subparagraph (C) 
                of such section that occurs after September 19, 
                2005; or
                  (C) an activity described in subparagraph (D) 
                of such section that occurs after the date of 
                enactment of this Act.
          (3) Exception related to certain activities occurring 
        after date of enactment.--The authority under 
        subsection (a) shall not apply with respect to an 
        activity described in subparagraph (A) or (B) of 
        section 102(b)(1) of the Arms Export Control Act that 
        occurs after the date of the enactment of this Act.
          (4) Limited exception related to lethal weapons.--The 
        authority under subsection (a) shall not apply with 
        respect to any export of lethal defense articles that 
        would be prevented by the application of section 
        102(b)(2) of the Arms Export Control Act.
  (c) Notifications and Reports.--
          (1) Congressional notification.--The President shall 
        notify the appropriate congressional committees in 
        writing not later than 15 days before exercising the 
        waiver authority under subsection (a).
          (2) Annual report.--Not later than January 31, 2009, 
        and annually thereafter, the President shall submit to 
        the appropriate congressional committees a report 
        that--
                  (A) lists all waivers issued under subsection 
                (a) during the preceding year;
                  (B) describes in detail the progress that is 
                being made in the implementation of the 
                commitment undertaken by North Korea, in the 
                Joint Statement of September 19, 2005, to 
                abandon all nuclear weapons and existing 
                nuclear programs as part of the verifiable 
                denuclearization of the Korean Peninsula;
                  (C) discusses specifically any shortcomings 
                in the implementation by North Korea of that 
                commitment; and
                  (D) lists and describes the progress and 
                shortcomings, in the preceding year, of all 
                other programs promoting the elimination of the 
                capability of North Korea to develop, deploy, 
                transfer, or maintain weapons of mass 
                destruction or their delivery systems.
          (3) Report on verification measures relating to north 
        korea's nuclear programs.--
                  (A) In general.--Not later than 15 days after 
                the date of enactment of this Act, the 
                Secretary of State shall submit to the 
                appropriate congressional committees a report 
                on verification measures relating to North 
                Korea's nuclear programs under the Six-Party 
                Talks Agreement of February 13, 2007, with 
                specific focus on how such verification 
                measures are defined under the Six-Party Talks 
                Agreement and understood by the United States 
                Government.
                  (B) Matters to be included.--The report 
                required under subsection (A) shall include, 
                among other elements, a description of--
                          (i) how the United States will 
                        confirm that North Korea has ``provided 
                        a complete and correct declaration of 
                        all of its nuclear programs'';
                          (ii) how the United States will 
                        maintain a high and ongoing level of 
                        confidence that North Korea has fully 
                        met the terms of the Six-Party Talks 
                        Agreement relating to its nuclear 
                        programs;
                          (iii) any diplomatic agreement with 
                        North Korea regarding verification 
                        measures relating to North Korea's 
                        nuclear programs under the Six-Party 
                        Talks Agreement (other than 
                        implementing arrangements made during 
                        on-site operations); and
                          (iv) any significant and continuing 
                        disagreement with North Korea regarding 
                        verification measures relating to North 
                        Korea's nuclear programs under the Six-
                        Party Talks Agreement.
                  (C) Form.--The report required under 
                subsection (A) shall be submitted in 
                unclassified form, but may include a classified 
                annex.
  (d) Appropriate Congressional Committees Defined.--In this 
section, the term ``appropriate congressional committees'' 
means--
          (1) the Committees on Appropriations, Armed Services, 
        and Foreign Relations of the Senate; and
          (2) the Committees on Appropriations, Armed Services, 
        and Foreign Affairs of the House of Representatives.

                                 MEXICO

  Sec. 1406.  (a) Assistance for Mexico.--Of the funds 
appropriated under the headings ``International Narcotics 
Control and Law Enforcement'', ``Foreign Military Financing 
Program'', and ``Economic Support Fund'' in this chapter, not 
more than $352,000,000 of the funds appropriated in subchapter 
A and $48,000,000 of the funds appropriated in subchapter B may 
be made available for assistance for Mexico, only to combat 
drug trafficking and related violence and organized crime, and 
for judicial reform, institution building, anti-corruption, and 
rule of law activities, of which not less than $73,500,000 
shall be used for judicial reform, institution building, anti-
corruption, and rule of law activities: Provided, That none of 
the funds made available under this section shall be made 
available for budget support or as cash payments: Provided 
further, That not more than 45 days after enactment of this 
Act, and after consulting with relevant Mexican Government 
authorities, the Secretary of State shall report in writing to 
the Committees on Appropriations on the procedures in place to 
implement section 620J of the Foreign Assistance Act of 1961.
  (b) Allocation of Funds.--Fifteen percent of the funds made 
available in this chapter for assistance for Mexico under the 
headings ``International Narcotics Control and Law 
Enforcement'' and ``Foreign Military Financing Program'' may 
not be obligated until the Secretary of State reports in 
writing to the Committees on Appropriations that the Government 
of Mexico is--
          (1) improving the transparency and accountability of 
        federal police forces and working with state and 
        municipal authorities to improve the transparency and 
        accountability of state and municipal police forces 
        through mechanisms including establishing police 
        complaints commissions with authority and independence 
        to receive complaints and carry out effective 
        investigations;
          (2) establishing a mechanism for regular 
        consultations among relevant Mexican Government 
        authorities, Mexican human rights organizations and 
        other relevant Mexican civil society organizations, to 
        make recommendations concerning implementation of the 
        Merida Initiative in accordance with Mexican and 
        international law;
          (3) ensuring that civilian prosecutors and judicial 
        authorities are investigating and prosecuting, in 
        accordance with Mexican and international law, members 
        of the federal police and military forces who have been 
        credibly alleged to have committed violations of human 
        rights, and the federal police and military forces are 
        fully cooperating with the investigations; and
          (4) enforcing the prohibition, in accordance with 
        Mexican and international law, on the use of testimony 
        obtained through torture or other ill-treatment.
  (c) Exception.--Notwithstanding subsection (b), of the funds 
appropriated by subchapter A for assistance for Mexico under 
the heading ``International Narcotics Control and Law 
Enforcement'', $3,000,000 shall be made available for technical 
and other assistance to enable the Government of Mexico to 
implement a unified national registry of federal, state, and 
municipal police officers.
  (d) Report.--The report required in subsection (b) shall 
include a description of actions taken with respect to each 
requirement and the cases or issues brought to the attention of 
the Secretary of State for which the response or action taken 
has been inadequate.
  (e) Notification.--Funds made available for Mexico by this 
chapter shall be subject to the regular notification procedures 
of the Committees on Appropriations and section 634A of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2394-1).
  (f) Spending Plan.--Not later than 45 days after the date of 
the enactment of this Act, the Secretary of State shall submit 
to the Committees on Appropriations a detailed spending plan 
for funds appropriated or otherwise made available for Mexico 
by this chapter, which shall include a strategy, developed 
after consulting with relevant Mexican Government authorities, 
for combating drug trafficking and related violence and 
organized crime, judicial reform, institution building, anti-
corruption, and rule of law activities, with concrete goals, 
actions to be taken, budget proposals, and anticipated results.

                            CENTRAL AMERICA

  Sec. 1407.  (a) Assistance for the Countries of Central 
America.--Of the funds appropriated in subchapter A under the 
headings ``International Narcotics Control and Law 
Enforcement'', ``Foreign Military Financing Program'', 
``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs'', and ``Economic Support Fund'', $65,000,000 may be 
made available for assistance for the countries of Central 
America, Haiti, and the Dominican Republic only to combat drug 
trafficking and related violence and organized crime, and for 
judicial reform, institution building, anti-corruption, rule of 
law activities, and maritime security: Provided, That of the 
funds appropriated under the heading ``Economic Support Fund'', 
$25,000,000 shall be made available for an Economic and Social 
Development Fund for Central America, of which $20,000,000 
shall be made available through the United States Agency for 
International Development and $5,000,000 shall be made 
available through the Department of State for educational 
exchange programs: Provided further, That of the funds 
appropriated in subchapter A under the heading ``International 
Narcotics Control and Law Enforcement'', $2,500,000 shall be 
made available for assistance for Haiti, $2,500,000 shall be 
made available for assistance for the Dominican Republic, and 
$1,000,000 shall be made available for a United States 
contribution to the International Commission Against Impunity 
in Guatemala: Provided further, That none of the funds shall be 
made available for budget support or as cash payments: Provided 
further, That not more than 45 days after enactment of this 
Act, the Secretary of State shall report in writing to the 
Committees on Appropriations on the procedures in place to 
implement section 620J of the Foreign Assistance Act of 1961.
  (b) Allocation of Funds.--Fifteen percent of the funds made 
available by this chapter for assistance for the countries of 
Central America, Haiti and the Dominican Republic under the 
headings ``International Narcotics Control and Law 
Enforcement'' and ``Foreign Military Financing Program'' may 
not be obligated until the Secretary of State reports in 
writing to the Committees on Appropriations that the government 
of such country is--
          (1) establishing police complaints commissions with 
        authority and independence to receive complaints and 
        carry out effective investigations;
          (2) implementing reforms to improve the capacity and 
        ensure the independence of the judiciary; and
          (3) investigating and prosecuting members of the 
        federal police and military forces who have been 
        credibly alleged to have committed violations of human 
        rights.
  (c) Report.--The report required in subsection (b) shall 
include actions taken with respect to each requirement and the 
cases or issues brought to the attention of the Secretary of 
State for which the response or action taken has been 
inadequate.
  (d) Notification.--Funds made available for assistance for 
the countries of Central America, Haiti and the Dominican 
Republic in subchapter A shall be subject to the regular 
notification procedures of the Committees on Appropriations and 
section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2394-1).
  (e) Spending Plan.--Not later than 45 days after enactment of 
this Act, the Secretary of State shall submit to the Committees 
on Appropriations a detailed spending plan for funds 
appropriated or otherwise made available for the countries of 
Central America, Haiti and the Dominican Republic in subchapter 
A, which shall include a strategy for combating drug 
trafficking and related violence and organized crime, judicial 
reform, institution building, anti-corruption, and rule of law 
activities, with concrete goals, actions to be taken, budget 
proposals and anticipated results.
  (f) Definition.--For the purposes of this section, the term 
``countries of Central America'' means Belize, Costa Rica, El 
Salvador, Guatemala, Honduras, Nicaragua, and Panama.

                    buying power maintenance account

                     (including transfers of funds)

  Sec. 1408. (a) Of the funds appropriated under the heading 
``Diplomatic and Consular Programs'' and allocated by section 
3810 of the U.S. Troop Readiness, Veterans' Care, Katrina 
Recovery, and Iraq Accountability Appropriations Act, 2007 
(Public Law 110-28), $26,000,000 shall be transferred to and 
merged with funds in the ``Buying Power Maintenance Account'': 
Provided, That of the funds made available by this chapter up 
to an additional $74,000,000 may be transferred to and merged 
with the ``Buying Power Maintenance Account'', subject to the 
regular notification procedures of the Committees on 
Appropriations and in accordance with the procedures in section 
34 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2706). Any funds transferred pursuant to this section 
shall be available, without fiscal year limitation, pursuant to 
section 24 of the State Department Basic Authorities Act of 
1956 (22 U.S.C. 2696).
  (b) Section 24(b)(7) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2696(b)(7)) is amended by 
amending subparagraph (D) to read as follows:
                  ``(D) The authorities contained in this 
                paragraph may be exercised only with respect to 
                funds appropriated or otherwise made available 
                after fiscal year 2008.''.
  (c) The Broadcasting Board of Governors may transfer funds 
into its Buying Power Maintenance Account, notwithstanding the 
requirement that such funds be provided in advance in 
appropriations Acts. The authority in this subsection may be 
exercised only with respect to funds appropriated or otherwise 
made available after fiscal year 2008.

                                 SERBIA

  Sec. 1409.  Of the funds made available under the heading 
``Assistance for Eastern Europe and the Baltic States'' by 
title III of the Department of State, Foreign Operations, and 
Related Programs Appropriations Act, 2008 (division J of Public 
Law 110-161), an amount equivalent to the unpaid costs of 
damage to the United States Embassy in Belgrade, Serbia, as 
estimated by the Secretary of State, resulting from the 
February 21, 2008 attack on such Embassy, shall be withheld 
from obligation for assistance for the central government of 
Serbia if the Secretary of State reports to the Committees on 
Appropriations that the Government of Serbia has failed to 
provide full compensation to the Department of State for 
damages to the United States Embassy resulting from the 
February 21, 2008 attack on such embassy. Section 8002 of this 
Act shall not apply to this section.

                              RESCISSIONS

  Sec. 1410.  (a) World Food Program.--
          (1) For an additional amount for a contribution to 
        the World Food Program to assist farmers in countries 
        affected by food shortages to increase crop yields, 
        notwithstanding any other provision of law, 
        $20,000,000, to remain available until expended.
          (2) Of the funds appropriated under the heading 
        ``Andean Counterdrug Initiative'' in prior Acts making 
        appropriations for foreign operations, export 
        financing, and related programs, $20,000,000 are 
        rescinded.
  (b) Sudan.--
          (1) For an additional amount for ``International 
        Narcotics Control and Law Enforcement'', $10,000,000, 
        for assistance for Sudan to support formed police 
        units, to remain available until September 30, 2009, 
        and subject to prior consultation with the Committees 
        on Appropriations.
          (2) Of the funds appropriated under the heading 
        ``International Narcotics Control and Law Enforcement'' 
        in prior Acts making appropriations for foreign 
        operations, export financing, and related programs, 
        $10,000,000 are rescinded.
  (c) Rescission.--Of the unobligated balances of funds 
appropriated for ``Iraq Relief and Reconstruction Fund'' in 
prior Acts making appropriations for foreign operations, export 
financing, and related programs, $50,000,000 are rescinded.
  (d) Exception.--Section 8002 of this Act shall not apply to 
subsections (a) and (b) of this section.

                          DARFUR PEACEKEEPING

  Sec. 1411.  Funds appropriated under the headings ``Foreign 
Military Financing Program'' and ``Peacekeeping Operations'' by 
the Department of State, Foreign Operations, and Related 
Programs Appropriations Act, 2008 (division J of Public Law 
110-161) and by prior Acts making appropriations for foreign 
operations, export financing, and related programs may be used 
to transfer, equip, upgrade, refurbish or lease helicopters or 
related equipment necessary to support the operations of the 
African Union/United Nations peacekeeping operation in Darfur, 
Sudan, that was established pursuant to United Nations Security 
Council Resolution 1769. The President may utilize the 
authority of sections 506 or 516 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2318, 2321j) or section 61 of the Arms 
Export Control Act (22 U.S.C. 2796) in order to provide such 
support, notwithstanding any other provision of law except for 
sections 502B(a)(2), 620A and 620J of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2304(a)(2), 2371, 2378d) and section 40A 
of the Arms Export Control Act (22 U.S.C. 2780). Any exercise 
of the authorities provided by section 506 of the Foreign 
Assistance Act pursuant to this section may include the 
authority to acquire helicopters by contract.

                                 TIBET

  Sec. 1412.  (a) Of the funds appropriated by this Act or 
prior Acts making appropriations for the Department of State, 
foreign operations and related programs under the headings 
``Diplomatic and Consular Programs'' and ``Embassy Security, 
Construction, and Maintenance'', up to $5,000,000 shall be made 
available to establish a United States Consulate in Lhasa, 
Tibet.
  (b) The Department of State should not consent to opening a 
consular post in the United States by the People's Republic of 
China until such time as the People's Republic of China 
consents to opening a United States consular post in Lhasa, 
Tibet.

                                 jordan

                    (including rescission of funds)

  Sec. 1413. (a) For an additional amount for ``Economic 
Support Fund'' for assistance for Jordan, $25,000,000, to 
remain available until September 30, 2009.
  (b) For an additional amount for ``Foreign Military Financing 
Program'' for assistance for Jordan, $33,000,000, to remain 
available until September 30, 2009.
  (c) Of the unobligated balances of funds appropriated under 
the heading ``Millennium Challenge Corporation'' in prior Acts 
making appropriations for foreign operations, export financing, 
and related programs, $58,000,000 are rescinded.
  (d) Section 8002 of this Act shall not apply to this section.

                              ALLOCATIONS

  Sec. 1414.  (a) Funds provided by this chapter for the 
following accounts shall be made available for programs and 
countries in the amounts contained in the respective tables 
included in the explanatory statement printed in the 
Congressional Record accompanying this Act:
          ``Diplomatic and Consular Programs''
          ``Economic Support Fund''.
  (b) Any proposed increases or decreases to the amounts 
contained in such tables in the explanatory statement printed 
in the Congressional Record accompanying this Act shall be 
subject to the regular notification procedures of the 
Committees on Appropriations and section 634A of the Foreign 
Assistance Act of 1961.

                        REPROGRAMMING AUTHORITY

  Sec. 1415.  Notwithstanding any other provision of law, to 
include minimum funding requirements or funding directives, 
funds made available under the headings ``Development 
Assistance'' and ``Economic Support Fund'' in prior Acts making 
appropriations for foreign operations, export financing, and 
related programs may be made available to address critical food 
shortages, subject to prior consultation with, and the regular 
notification procedures of, the Committees on Appropriations.

               SPENDING PLANS AND NOTIFICATION PROCEDURES

  Sec. 1416.  (a) Subchapter A Spending Plan.--Not later than 
45 days after the enactment of this Act, the Secretary of State 
shall submit to the Committees on Appropriations a report 
detailing planned expenditures for funds appropriated under the 
headings in subchapter A, except for funds appropriated under 
the headings ``International Disaster Assistance'', ``Migration 
and Refugee Assistance'', and ``United States Emergency Refugee 
and Migration Assistance Fund''.
  (b) Subchapter B Spending Plan.--The Secretary of State shall 
submit to the Committees on Appropriations not later than 
November 1, 2008, and prior to the initial obligation of funds, 
a detailed spending plan for funds appropriated or otherwise 
made available in subchapter B, except for funds appropriated 
under the headings ``International Disaster Assistance'', 
``Migration and Refugee Assistance'', and ``United States 
Emergency Refugee and Migration Assistance Fund''.
  (c) Notification.--Funds made available in this chapter shall 
be subject to the regular notification procedures of the 
Committees on Appropriations and section 634A of the Foreign 
Assistance Act of 1961.

                          TERMS AND CONDITIONS

  Sec. 1417.  Unless otherwise provided for in this Act, funds 
appropriated or otherwise made available by this chapter shall 
be available under the authorities and conditions provided in 
the Department of State, Foreign Operations, and Related 
Programs Appropriations Act, 2008 (division J of Public Law 
110-161), except that section 699K of such Act shall not apply 
to funds in this chapter.

                       TITLE II--DOMESTIC MATTERS

                CHAPTER 1--FOOD AND DRUG ADMINISTRATION

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$150,000,000, to remain available until September 30, 2009: 
Provided, That of the amount provided: (1) $66,792,000 shall be 
for the Center for Food Safety and Applied Nutrition and 
related field activities in the Office of Regulatory Affairs; 
(2) $28,019,000 shall be for the Center for Drug Evaluation and 
Research and related field activities in the Office of 
Regulatory Affairs; (3) $12,736,000 shall be for the Center for 
Biologics Evaluation and Research and related field activities 
in the Office of Regulatory Affairs; (4) $6,057,000 shall be 
for the Center for Veterinary Medicine and related field 
activities in the Office of Regulatory Affairs; (5) $20,094,000 
shall be for the Center for Devices and Radiological Health and 
related field activities in the Office of Regulatory Affairs; 
(6) $3,396,000 shall be for the National Center for 
Toxicological Research; and (7) $12,906,000 shall be for other 
activities, including the Office of the Commissioner, the 
Office of Scientific and Medical Programs; the Office of 
Policy, Planning and Preparedness; the Office of International 
and Special Programs; the Office of Operations; and central 
services for these offices.

               CHAPTER 2--COMMERCE, JUSTICE, AND SCIENCE

                         DEPARTMENT OF COMMERCE

                          Bureau of the Census

                     periodic censuses and programs

                     (including transfer of funds)

  For an additional amount for ``Periodic Censuses and 
Programs'', $210,000,000, to remain available until expended, 
for necessary expenses related to the 2010 Decennial Census: 
Provided, That not less than $3,000,000 shall be transferred to 
the ``Office of Inspector General'' at the Department of 
Commerce for necessary expenses associated with oversight 
activities of the 2010 Decennial Census: Provided further, That 
not less than $1,000,000 shall be used only for a reimbursable 
agreement with the Defense Contract Management Agency to 
provide continuing contract management oversight of the 2010 
Decennial Census.

                         DEPARTMENT OF JUSTICE

                         Federal Prison System

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$178,000,000, to remain available until September 30, 2008.

                             OTHER AGENCIES

             National Aeronautics and Space Administration

                  science, aeronautics and exploration

  For an additional amount for ``Science, Aeronautics and 
Exploration'', $62,500,000.

                      National Science Foundation

                    research and related activities

  For an additional amount for ``Research and Related 
Activities'', $22,500,000, of which $5,000,000 shall be 
available solely for activities authorized by section 
7002(b)(2)(A)(iv) of Public Law 110-69.

                     education and human resources

  For an additional amount for ``Education and Human 
Resources'', $40,000,000: Provided, That of the amount 
provided, $20,000,000 shall be available for activities 
authorized by section 10 of the National Science Foundation 
Authorization Act of 2002 (42 U.S.C. 1862n-1) and $20,000,000 
shall be available for activities authorized by section 10A of 
the National Science Foundation Authorization Act of 2002 (42 
U.S.C. 1862n-1a).

                           CHAPTER 3--ENERGY

                          DEPARTMENT OF ENERGY

                            ENERGY PROGRAMS

                                Science

  For an additional amount for ``Science'', $62,500,000, to 
remain available until expended.

               ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                     Defense Environmental Cleanup

  For an additional amount for ``Defense Environmental 
Cleanup'', $62,500,000, to remain available until expended.

             CHAPTER 4--LABOR AND HEALTH AND HUMAN SERVICES

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

     state unemployment insurance and employment service operations

   For an additional amount for ``State Unemployment Insurance 
and Employment Service Operations'' for grants to the States 
for the administration of State unemployment insurance, 
$110,000,000, which may be expended from the Employment 
Security Administration Account in the Unemployment Trust Fund, 
to be used for unemployment insurance workloads experienced by 
the States through September 30, 2008, which shall be available 
for Federal obligation through December 31, 2008.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     National Institutes of Health

                         office of the director

                     (including transfer of funds)

  For an additional amount for ``Office of the Director'', 
$150,000,000, which shall be transferred to the Institutes and 
Centers of the National Institutes of Health and to the Common 
Fund established under section 402A(c)(1) of the Public Health 
Service Act in proportion to the appropriations otherwise made 
to such Institutes, Centers, and Common Fund for fiscal year 
2008: Provided, That these funds shall be used to support 
additional scientific research and shall be merged with and be 
available for the same purposes and for the same time period as 
the appropriation or fund to which transferred: Provided 
further, That this transfer authority is in addition to any 
other transfer authority available to the National Institutes 
of Health: Provided further, That none of these funds may be 
transferred to ``National Institutes of Health-Buildings and 
Facilities'', the Center for Scientific Review, the Center for 
Information Technology, the Clinical Center, the Global Fund 
for HIV/AIDS, Tuberculosis and Malaria, or the Office of the 
Director (except for the transfer to the Common Fund).

                     CHAPTER 5--LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

      Payment to Widows and Heirs of Deceased Members of Congress

   For payment to Annette Lantos, widow of Tom Lantos, late a 
Representative from the State of California, $169,300: 
Provided, That section 8002 shall not apply to this 
appropriation.

            TITLE III--NATURAL DISASTER RELIEF AND RECOVERY

                         CHAPTER 1--AGRICULTURE

                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency

                     emergency conservation program

  For an additional amount for the ``Emergency Conservation 
Program'', $89,413,000, to remain available until expended.

                 Natural Resources Conservation Service

                 emergency watershed protection program

  For an additional amount for the ``Emergency Watershed 
Protection Program'', $390,464,000, to remain available until 
expended.

                          CHAPTER 2--COMMERCE

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration

                economic development assistance programs

  Pursuant to section 703 of the Public Works and Economic 
Development Act (42 U.S.C. 3233), for an additional amount for 
``Economic Development Assistance Programs'', for necessary 
expenses related to disaster relief, long-term recovery, and 
restoration of infrastructure in areas covered by a declaration 
of major disaster under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.) as a result of recent natural disasters, $100,000,000, to 
remain available until expended.

                     CHAPTER 3--CORPS OF ENGINEERS

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil

                              construction

  For an additional amount for ``Construction'', for necessary 
expenses to address emergency situations at Corps of Engineers 
projects and rehabilitate and repair damages to Corps projects 
caused by recent natural disasters, $61,700,000, to remain 
available until expended.
  For an additional amount for ``Construction'', for necessary 
expenses related to the consequences of Hurricane Katrina and 
other hurricanes of the 2005 season, $2,835,000,000, to become 
available on October 1, 2008, and to remain available until 
expended: Provided, That the Secretary of the Army is directed 
to use $1,997,000,000 of the funds provided herein to modify 
authorized projects in southeast Louisiana to provide 
hurricane, storm and flood damage reduction in the greater New 
Orleans and surrounding areas to the levels of protection 
necessary to achieve the certification required for 
participation in the National Flood Insurance Program under the 
base flood elevations current at the time of enactment of this 
Act, and shall use $1,077,000,000 of those funds for the Lake 
Pontchartrain and Vicinity project and $920,000,000 of those 
funds for the West Bank and Vicinity project: Provided further, 
That, in addition, $838,000,000 of the funds provided herein 
shall be for elements of Southeast Louisiana Urban Drainage 
project within the geographic perimeter of the West Bank and 
Vicinity and Lake Pontchartrain and Vicinity projects, to 
provide for interior drainage of runoff from rainfall with a 
ten percent annual exceedance probability: Provided further, 
That the amounts provided herein shall be subject to a 65 
percent Federal / 35 percent non-Federal cost share for the 
specified purposes: Provided further, That beginning not later 
than 60 days after the date of enactment of this Act, the Chief 
of Engineers, acting through the Assistant Secretary of the 
Army for Civil Works, shall provide monthly reports to the 
Committees on Appropriations of the House of Representatives 
and the Senate detailing the allocation and obligation of these 
funds: Provided further, That the expenditure of funds as 
provided above may be made without regard to individual amounts 
or purposes except that any reallocation of funds that is 
necessary to accomplish the established goals is authorized 
subject to the approval of the House and Senate Committees on 
Appropriations.

                   mississippi river and tributaries

  For an additional amount for ``Mississippi River and 
Tributaries'' for recovery from natural disasters, $17,590,000, 
to remain available until expended, to repair damages to 
Federal projects caused by recent natural disasters.

                       operation and maintenance

  For an additional amount for ``Operation and Maintenance'' to 
dredge navigation channels and repair other Corps projects 
related to natural disasters, $298,344,000, to remain available 
until expended: Provided, That the Chief of Engineers, acting 
through the Assistant Secretary of the Army for Civil Works, 
shall provide a monthly report to the House and Senate 
Committees on Appropriations detailing the allocation and 
obligation of these funds, beginning not later than 60 days 
after enactment of this Act.

                 flood control and coastal emergencies

  For an additional amount for ``Flood Control and Coastal 
Emergencies'', as authorized by section 5 of the Act of August 
18, 1941 (33 U.S.C. 701n), for necessary expenses to prepare 
for flood, hurricane and other natural disasters and support 
emergency operations, repair and other activities in response 
to flood and hurricane emergencies as authorized by law, 
$226,854,800, to remain available until expended.
  For an additional amount for ``Flood Control and Coastal 
Emergencies'', as authorized by section 5 of the Act of August 
18, 1941 (33 U.S.C. 701n), for necessary expenses relating to 
the consequences of Hurricane Katrina and other hurricanes of 
the 2005 season, $2,926,000,000, to become available on October 
1, 2008, and to remain available until expended: Provided, That 
funds provided herein shall be used to reduce the risk of 
hurricane and storm damages to the greater New Orleans 
metropolitan area, at full Federal expense, for the following: 
$704,000,000 shall be used to modify the 17th Street, Orleans 
Avenue, and London Avenue drainage canals and install pumps and 
closure structures at or near the lakefront; $90,000,000 shall 
be used for storm-proofing interior pump stations to ensure the 
operability of the stations during hurricanes, storms, and high 
water events; $459,000,000 shall be used for armoring critical 
elements of the New Orleans hurricane and storm damage 
reduction system; $53,000,000 shall be used to improve 
protection at the Inner Harbor Navigation Canal; $456,000,000 
shall be used to replace or modify certain non-Federal levees 
in Plaquemines Parish to incorporate the levees into the 
existing New Orleans to Venice hurricane protection project; 
$412,000,000 shall be used for reinforcing or replacing flood 
walls, as necessary, in the existing Lake Pontchartrain and 
Vicinity project and the existing West Bank and Vicinity 
project to improve the performance of the systems; $393,000,000 
shall be used for repair and restoration of authorized 
protections and floodwalls; and $359,000,000 shall be to 
complete the authorized protection for the Lake Ponchartrain 
and Vicinity, West Bank and Vicinity, and the New Orleans to 
Venice projects: Provided further, That the Secretary of the 
Army, within available funds, is directed to continue the NEPA 
alternative evaluation of all options with particular attention 
to Options 1, 2 and 2a of the report to Congress, dated August 
30, 2007, provided in response to the requirements of chapter 
3, section 4303 of Public Law 110-28, and within 90 days of 
enactment of this Act provide the House and Senate Committees 
on Appropriations cost estimates to implement Options 1, 2 and 
2a of the above cited report: Provided further, That beginning 
not later than 60 days after the date of enactment of this Act, 
the Chief of Engineers, acting through the Assistant Secretary 
of the Army for Civil Works, shall provide monthly reports to 
the Committees on Appropriations of the House of 
Representatives and the Senate detailing the allocation and 
obligation of these funds: Provided further, That any project 
using funds appropriated under this heading shall be initiated 
only after non-Federal interests have entered into binding 
agreements with the Assistant Secretary of the Army for Civil 
Works requiring the non-Federal interests to pay 100 percent of 
the operation, maintenance, repair, replacement, and 
rehabilitation costs of completed elements and to hold and save 
the United States free from damages due to the construction, 
operation, and maintenance of the project, except for damages 
due to the fault or negligence of the United States or its 
contractors: Provided further, That the expenditure of funds as 
provided above may be made without regard to individual amounts 
or purposes except that any reallocation of funds that is 
necessary to accomplish the established goals is authorized 
subject to the approval of the House and Senate Committees on 
Appropriations.

                                expenses

  For an additional amount for ``Expenses'' for increased 
efforts by the Mississippi Valley Division to oversee emergency 
response and recovery activities related to the consequences of 
hurricanes in the Gulf of Mexico in 2005, $1,500,000 to remain 
available until expended.

                       CHAPTER 4--SMALL BUSINESS

                     Small Business Administration

                     disaster loans program account

                     (including transfer of funds)

  For the cost of direct loans authorized by section 7(b) of 
the Small Business Act, for necessary expenses related to 
flooding in Midwestern States and other natural disasters, 
$164,939,000, to remain available until expended: Provided, 
That such costs, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget 
Act of 1974.
  In addition, for expenses to carry out the direct loan 
program in response to flooding in Midwestern States and other 
natural disasters, including onsite assistance to disaster 
victims, increased staff at call centers, processing centers, 
and field inspections teams, and attorneys to assist in loan 
closings, $101,814,000, to remain available until expended, of 
which $1,000,000 is for the Office of Inspector General of the 
Small Business Administration for audits and reviews of 
disaster loans and the disaster loan program and shall be paid 
to appropriations for the Office of Inspector General; of which 
$94,814,000 is for direct administrative expenses of loan 
making and servicing to carry out the direct loan program, 
which may be paid to appropriations for Salaries and Expenses; 
and of which $6,000,000 is for indirect administrative 
expenses, which may be paid to appropriations for Salaries and 
Expenses.

                    CHAPTER 5--FEMA DISASTER RELIEF

                    DEPARTMENT OF HOMELAND SECURITY

                  Federal Emergency Management Agency

                            disaster relief

  For an additional amount for ``Disaster Relief'', 
$897,000,000, to remain available until expended.

                CHAPTER 6--HOUSING AND URBAN DEVELOPMENT

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                      Permanent Supportive Housing

  For the provision of 3,000 units of permanent supportive 
housing as referenced in the Road Home Program of the Louisiana 
Recovery Authority approved by the Secretary of Housing and 
Urban Development, $73,000,000, to remain available until 
expended, of which $20,000,000 shall be for project-based 
vouchers under section 8(o)(13) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(13)), including administrative 
expenses not to exceed $3,000,000, and $50,000,000 shall be for 
grants under the Shelter Plus Care program as authorized under 
subtitle F of title IV of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11403 et seq.): Provided, That the 
Secretary of Housing and Urban Development shall, upon request, 
make funds available under this paragraph to the State of 
Louisiana or its designee or designees, upon request: Provided 
further, That notwithstanding any other provision of law, for 
the purpose of administering the amounts provided under this 
paragraph, the State of Louisiana or its designee or designees 
may act in all respects as a public housing agency as defined 
in section 3(b)(6) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b)(6)): Provided further, That subparagraphs (B) 
and (D) of section 8(o)(13) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(13)) shall not apply with respect to 
vouchers made available under this paragraph.

                   Community Planning and Development

                       community development fund

  For an additional amount for ``Community Development Fund'', 
for necessary expenses related to disaster relief, long-term 
recovery, and restoration of infrastructure in areas covered by 
a declaration of major disaster under title IV of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.) as a result of recent natural disasters, 
$300,000,000, to remain available until expended, for 
activities authorized under title I of the Housing and 
Community Development Act of 1974 (Public Law 93-383): 
Provided, That funds provided under this heading shall be 
administered through an entity or entities designated by the 
Governor of each State: Provided further, That such funds may 
not be used for activities reimbursable by or for which funds 
are made available by the Federal Emergency Management Agency 
or the Army Corps of Engineers: Provided further, That funds 
allocated under this heading shall not adversely affect the 
amount of any formula assistance received by a State under this 
heading: Provided further, That each State may use up to five 
percent of its allocation for administrative costs: Provided 
further, That in administering the funds under this heading, 
the Secretary of Housing and Urban Development shall waive, or 
specify alternative requirements for, any provision of any 
statute or regulation that the Secretary administers in 
connection with the obligation by the Secretary or the use by 
the recipient of these funds or guarantees (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment), upon a request by the State 
that such waiver is required to facilitate the use of such 
funds or guarantees, and a finding by the Secretary that such 
waiver would not be inconsistent with the overall purpose of 
the statute, as modified: Provided further, That the Secretary 
may waive the requirement that activities benefit persons of 
low and moderate income, except that at least 50 percent of the 
funds made available under this heading must benefit primarily 
persons of low and moderate income unless the Secretary 
otherwise makes a finding of compelling need: Provided further, 
That the Secretary shall publish in the Federal Register any 
waiver of any statute or regulation that the Secretary 
administers pursuant to title I of the Housing and Community 
Development Act of 1974 no later than 5 days before the 
effective date of such waiver: Provided further, That every 
waiver made by the Secretary must be reconsidered according to 
the three previous provisos on the two-year anniversary of the 
day the Secretary published the waiver in the Federal Register: 
Provided further, That prior to the obligation of funds each 
State shall submit a plan to the Secretary detailing the 
proposed use of all funds, including criteria for eligibility 
and how the use of these funds will address long-term recovery 
and restoration of infrastructure: Provided further, That each 
State will report quarterly to the Committees on Appropriations 
on all awards and uses of funds made available under this 
heading, including specifically identifying all awards of sole-
source contracts and the rationale for making the award on a 
sole-source basis: Provided further, That the Secretary shall 
notify the Committees on Appropriations on any proposed 
allocation of any funds and any related waivers made pursuant 
to these provisions under this heading no later than 5 days 
before such waiver is made: Provided further, That the 
Secretary shall establish procedures to prevent recipients from 
receiving any duplication of benefits and report quarterly to 
the Committees on Appropriations with regard to all steps taken 
to prevent fraud and abuse of funds made available under this 
heading including duplication of benefits.

             TITLE IV--EMERGENCY UNEMPLOYMENT COMPENSATION

                        FEDERAL-STATE AGREEMENTS

  Sec. 4001.  (a) In General.--Any State which desires to do so 
may enter into and participate in an agreement under this title 
with the Secretary of Labor (in this title referred to as the 
``Secretary''). Any State which is a party to an agreement 
under this title may, upon providing 30 days' written notice to 
the Secretary, terminate such agreement.
  (b) Provisions of Agreement.--Any agreement under subsection 
(a) shall provide that the State agency of the State will make 
payments of emergency unemployment compensation to individuals 
who--
          (1) have exhausted all rights to regular compensation 
        under the State law or under Federal law with respect 
        to a benefit year (excluding any benefit year that 
        ended before May 1, 2007);
          (2) have no rights to regular compensation or 
        extended compensation with respect to a week under such 
        law or any other State unemployment compensation law or 
        to compensation under any other Federal law (except as 
        provided under subsection (e)); and
          (3) are not receiving compensation with respect to 
        such week under the unemployment compensation law of 
        Canada.
  (c) Exhaustion of Benefits.--For purposes of subsection 
(b)(1), an individual shall be deemed to have exhausted such 
individual's rights to regular compensation under a State law 
when--
          (1) no payments of regular compensation can be made 
        under such law because such individual has received all 
        regular compensation available to such individual based 
        on employment or wages during such individual's base 
        period; or
          (2) such individual's rights to such compensation 
        have been terminated by reason of the expiration of the 
        benefit year with respect to which such rights existed.
  (d) Weekly Benefit Amount, Etc.--For purposes of any 
agreement under this title--
          (1) the amount of emergency unemployment compensation 
        which shall be payable to any individual for any week 
        of total unemployment shall be equal to the amount of 
        the regular compensation (including dependents' 
        allowances) payable to such individual during such 
        individual's benefit year under the State law for a 
        week of total unemployment;
          (2) the terms and conditions of the State law which 
        apply to claims for regular compensation and to the 
        payment thereof shall apply to claims for emergency 
        unemployment compensation and the payment thereof, 
        except--
                  (A) that an individual shall not be eligible 
                for emergency unemployment compensation under 
                this title unless, in the base period with 
                respect to which the individual exhausted all 
                rights to regular compensation under the State 
                law, the individual had 20 weeks of full-time 
                insured employment or the equivalent in insured 
                wages, as determined under the provisions of 
                the State law implementing section 202(a)(5) of 
                the Federal-State Extended Unemployment 
                Compensation Act of 1970 (26 U.S.C. 3304 note); 
                and
                  (B) where otherwise inconsistent with the 
                provisions of this title or with the 
                regulations or operating instructions of the 
                Secretary promulgated to carry out this title; 
                and
          (3) the maximum amount of emergency unemployment 
        compensation payable to any individual for whom an 
        emergency unemployment compensation account is 
        established under section 4002 shall not exceed the 
        amount established in such account for such individual.
  (e) Election by States.--Notwithstanding any other provision 
of Federal law (and if State law permits), the Governor of a 
State that is in an extended benefit period may provide for the 
payment of emergency unemployment compensation prior to 
extended compensation to individuals who otherwise meet the 
requirements of this section.
  (f) Unauthorized Aliens Ineligible.--A State shall require as 
a condition of eligibility for emergency unemployment 
compensation under this Act that each alien who receives such 
compensation must be legally authorized to work in the United 
States, as defined for purposes of the Federal Unemployment Tax 
Act (26 U.S.C. 3301 et seq.). In determining whether an alien 
meets the requirements of this subsection, a State must follow 
the procedures provided in section 1137(d) of the Social 
Security Act (42 U.S.C. 1320b-7(d)).

              EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT

  Sec. 4002.  (a) In General.--Any agreement under this title 
shall provide that the State will establish, for each eligible 
individual who files an application for emergency unemployment 
compensation, an emergency unemployment compensation account 
with respect to such individual's benefit year.
  (b) Amount in Account.--
          (1) In general.--The amount established in an account 
        under subsection (a) shall be equal to the lesser of--
                  (A) 50 percent of the total amount of regular 
                compensation (including dependents' allowances) 
                payable to the individual during the 
                individual's benefit year under such law, or
                  (B) 13 times the individual's average weekly 
                benefit amount for the benefit year.
          (2) Weekly benefit amount.--For purposes of this 
        subsection, an individual's weekly benefit amount for 
        any week is the amount of regular compensation 
        (including dependents' allowances) under the State law 
        payable to such individual for such week for total 
        unemployment.

   PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF EMERGENCY 
                       UNEMPLOYMENT COMPENSATION

  Sec. 4003.  (a) General Rule.--There shall be paid to each 
State that has entered into an agreement under this title an 
amount equal to 100 percent of the emergency unemployment 
compensation paid to individuals by the State pursuant to such 
agreement.
  (b) Treatment of Reimbursable Compensation.--No payment shall 
be made to any State under this section in respect of any 
compensation to the extent the State is entitled to 
reimbursement in respect of such compensation under the 
provisions of any Federal law other than this title or chapter 
85 of title 5, United States Code. A State shall not be 
entitled to any reimbursement under such chapter 85 in respect 
of any compensation to the extent the State is entitled to 
reimbursement under this title in respect of such compensation.
  (c) Determination of Amount.--Sums payable to any State by 
reason of such State having an agreement under this title shall 
be payable, either in advance or by way of reimbursement (as 
may be determined by the Secretary), in such amounts as the 
Secretary estimates the State will be entitled to receive under 
this title for each calendar month, reduced or increased, as 
the case may be, by any amount by which the Secretary finds 
that the Secretary's estimates for any prior calendar month 
were greater or less than the amounts which should have been 
paid to the State. Such estimates may be made on the basis of 
such statistical, sampling, or other method as may be agreed 
upon by the Secretary and the State agency of the State 
involved.

                          FINANCING PROVISIONS

  Sec. 4004.  (a) In General.--Funds in the extended 
unemployment compensation account (as established by section 
905(a) of the Social Security Act (42 U.S.C. 1105(a)) of the 
Unemployment Trust Fund (as established by section 904(a) of 
such Act (42 U.S.C. 1104(a)) shall be used for the making of 
payments to States having agreements entered into under this 
title.
  (b) Certification.--The Secretary shall from time to time 
certify to the Secretary of the Treasury for payment to each 
State the sums payable to such State under this title. The 
Secretary of the Treasury, prior to audit or settlement by the 
Government Accountability Office, shall make payments to the 
State in accordance with such certification, by transfers from 
the extended unemployment compensation account (as so 
established) to the account of such State in the Unemployment 
Trust Fund (as so established).
  (c) Assistance to States.--There are appropriated out of the 
employment security administration account (as established by 
section 901(a) of the Social Security Act (42 U.S.C. 1101(a)) 
of the Unemployment Trust Fund, without fiscal year limitation, 
such funds as may be necessary for purposes of assisting States 
(as provided in title III of the Social Security Act (42 U.S.C. 
501 et seq.)) in meeting the costs of administration of 
agreements under this title.
  (d) Appropriations for Certain Payments.--There are 
appropriated from the general fund of the Treasury, without 
fiscal year limitation, to the extended unemployment 
compensation account (as so established) of the Unemployment 
Trust Fund (as so established) such sums as the Secretary 
estimates to be necessary to make the payments under this 
section in respect of--
          (1) compensation payable under chapter 85 of title 5, 
        United States Code; and
          (2) compensation payable on the basis of services to 
        which section 3309(a)(1) of the Internal Revenue Code 
        of 1986 applies.
Amounts appropriated pursuant to the preceding sentence shall 
not be required to be repaid.

                         FRAUD AND OVERPAYMENTS

  Sec. 4005.  (a) In General.--If an individual knowingly has 
made, or caused to be made by another, a false statement or 
representation of a material fact, or knowingly has failed, or 
caused another to fail, to disclose a material fact, and as a 
result of such false statement or representation or of such 
nondisclosure such individual has received an amount of 
emergency unemployment compensation under this title to which 
such individual was not entitled, such individual--
          (1) shall be ineligible for further emergency 
        unemployment compensation under this title in 
        accordance with the provisions of the applicable State 
        unemployment compensation law relating to fraud in 
        connection with a claim for unemployment compensation; 
        and
          (2) shall be subject to prosecution under section 
        1001 of title 18, United States Code.
  (b) Repayment.--In the case of individuals who have received 
amounts of emergency unemployment compensation under this title 
to which they were not entitled, the State shall require such 
individuals to repay the amounts of such emergency unemployment 
compensation to the State agency, except that the State agency 
may waive such repayment if it determines that--
          (1) the payment of such emergency unemployment 
        compensation was without fault on the part of any such 
        individual; and
          (2) such repayment would be contrary to equity and 
        good conscience.
  (c) Recovery by State Agency.--
          (1) In general.--The State agency may recover the 
        amount to be repaid, or any part thereof, by deductions 
        from any emergency unemployment compensation payable to 
        such individual under this title or from any 
        unemployment compensation payable to such individual 
        under any State or Federal unemployment compensation 
        law administered by the State agency or under any other 
        State or Federal law administered by the State agency 
        which provides for the payment of any assistance or 
        allowance with respect to any week of unemployment, 
        during the 3-year period after the date such 
        individuals received the payment of the emergency 
        unemployment compensation to which they were not 
        entitled, except that no single deduction may exceed 50 
        percent of the weekly benefit amount from which such 
        deduction is made.
          (2) Opportunity for hearing.--No repayment shall be 
        required, and no deduction shall be made, until a 
        determination has been made, notice thereof and an 
        opportunity for a fair hearing has been given to the 
        individual, and the determination has become final.
  (d) Review.--Any determination by a State agency under this 
section shall be subject to review in the same manner and to 
the same extent as determinations under the State unemployment 
compensation law, and only in that manner and to that extent.

                              DEFINITIONS

  Sec. 4006.  In this title, the terms ``compensation'', 
``regular compensation'', ``extended compensation'', ``benefit 
year'', ``base period'', ``State'', ``State agency'', ``State 
law'', and ``week'' have the respective meanings given such 
terms under section 205 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

                             APPLICABILITY

  Sec. 4007.  (a) In General.--Except as provided in subsection 
(b), an agreement entered into under this title shall apply to 
weeks of unemployment--
          (1) beginning after the date on which such agreement 
        is entered into; and
          (2) ending on or before March 31, 2009.
  (b) Transition for Amount Remaining in Account.--
          (1) In general.--Subject to paragraph (2), in the 
        case of an individual who has amounts remaining in an 
        account established under section 4002 as of the last 
        day of the last week (as determined in accordance with 
        the applicable State law) ending on or before March 31, 
        2009, emergency unemployment compensation shall 
        continue to be payable to such individual from such 
        amounts for any week beginning after such last day for 
        which the individual meets the eligibility requirements 
        of this title.
          (2) Limit on compensation.--No compensation shall be 
        payable by reason of paragraph (1) for any week 
        beginning after June 30, 2009.

                TITLE V--VETERANS EDUCATIONAL ASSISTANCE

                              SHORT TITLE

  Sec. 5001.  This title may be cited as the ``Post-9/11 
Veterans Educational Assistance Act of 2008''.

                                FINDINGS

  Sec. 5002.  Congress makes the following findings:
          (1) On September 11, 2001, terrorists attacked the 
        United States, and the brave members of the Armed 
        Forces of the United States were called to the defense 
        of the Nation.
          (2) Service on active duty in the Armed Forces has 
        been especially arduous for the members of the Armed 
        Forces since September 11, 2001.
          (3) The United States has a proud history of offering 
        educational assistance to millions of veterans, as 
        demonstrated by the many ``G.I. Bills'' enacted since 
        World War II. Educational assistance for veterans helps 
        reduce the costs of war, assist veterans in readjusting 
        to civilian life after wartime service, and boost the 
        United States economy, and has a positive effect on 
        recruitment for the Armed Forces.
          (4) The current educational assistance program for 
        veterans is outmoded and designed for peacetime service 
        in the Armed Forces.
          (5) The people of the United States greatly value 
        military service and recognize the difficult challenges 
        involved in readjusting to civilian life after wartime 
        service in the Armed Forces.
          (6) It is in the national interest for the United 
        States to provide veterans who serve on active duty in 
        the Armed Forces after September 11, 2001, with 
        enhanced educational assistance benefits that are 
        worthy of such service and are commensurate with the 
        educational assistance benefits provided by a grateful 
        Nation to veterans of World War II.

EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE ARMED FORCES WHO SERVE AFTER 
                           SEPTEMBER 11, 2001

  Sec. 5003.  (a) Educational Assistance Authorized.--
          (1) In general.--Part III of title 38, United States 
        Code, is amended by inserting after chapter 32 the 
        following new chapter:

             ``CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

                       ``subchapter i--definitions

``Sec.
``3301. Definitions.

                 ``subchapter ii--educational assistance

``3311. Educational assistance for service in the Armed Forces 
          commencing on or after September 11, 2001: entitlement.
``3312. Educational assistance: duration.
``3313. Educational assistance: amount; payment.
``3314. Tutorial assistance.
``3315. Licensure and certification tests.
``3316. Supplemental educational assistance: members with critical 
          skills or specialty; members serving additional service.
``3317. Public-private contributions for additional educational 
          assistance.
``3318. Additional assistance: relocation or travel assistance for 
          individual relocating or traveling significant distance for 
          pursuit of a program of education.
``3319. Authority to transfer unused education benefits to family 
          members.

               ``subchapter iii--administrative provisions

``3321. Time limitation for use of and eligibility for entitlement.
``3322. Bar to duplication of educational assistance benefits.
``3323. Administration.
``3324. Allocation of administration and costs.

                      ``SUBCHAPTER I--DEFINITIONS

``Sec. 3301. Definitions

  ``In this chapter:
          ``(1) The term `active duty' has the meanings as 
        follows (subject to the limitations specified in 
        sections 3002(6) and 3311(b)):
                  ``(A) In the case of members of the regular 
                components of the Armed Forces, the meaning 
                given such term in section 101(21)(A).
                  ``(B) In the case of members of the reserve 
                components of the Armed Forces, service on 
                active duty under a call or order to active 
                duty under section 688, 12301(a), 12301(d), 
                12301(g), 12302, or 12304 of title 10.
          ``(2) The term `entry level and skill training' means 
        the following:
                  ``(A) In the case of members of the Army, 
                Basic Combat Training and Advanced Individual 
                Training.
                  ``(B) In the case of members of the Navy, 
                Recruit Training (or Boot Camp) and Skill 
                Training (or so-called `A' School).
                  ``(C) In the case of members of the Air 
                Force, Basic Military Training and Technical 
                Training.
                  ``(D) In the case of members of the Marine 
                Corps, Recruit Training and Marine Corps 
                Training (or School of Infantry Training).
                  ``(E) In the case of members of the Coast 
                Guard, Basic Training.
          ``(3) The term `program of education' has the meaning 
        given such term in section 3002, except to the extent 
        otherwise provided in section 3313.
          ``(4) The term `Secretary of Defense' means the 
        Secretary of Defense, except that the term means the 
        Secretary of Homeland Security with respect to the 
        Coast Guard when it is not operating as a service in 
        the Navy.

                ``SUBCHAPTER II--EDUCATIONAL ASSISTANCE

``Sec. 3311. Educational assistance for service in the Armed Forces 
                    commencing on or after September 11, 2001: 
                    entitlement

  ``(a) Entitlement.--Subject to subsections (d) and (e), each 
individual described in subsection (b) is entitled to 
educational assistance under this chapter.
  ``(b) Covered Individuals.--An individual described in this 
subsection is any individual as follows:
          ``(1) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 36 months 
                on active duty in the Armed Forces (including 
                service on active duty in entry level and skill 
                training); and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty; or
                          ``(ii) is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(2) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves at least 30 continuous days on 
                active duty in the Armed Forces; and
                  ``(B) after completion of service described 
                in subparagraph (A), is discharged or released 
                from active duty in the Armed Forces for a 
                service-connected disability.
          ``(3) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 30 
                months, but less than 36 months, on active duty 
                in the Armed Forces (including service on 
                active duty in entry level and skill training); 
                and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 36 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 36 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(4) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 24 
                months, but less than 30 months, on active duty 
                in the Armed Forces (including service on 
                active duty in entry level and skill training); 
                and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 30 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 30 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(5) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 18 
                months, but less than 24 months, on active duty 
                in the Armed Forces (excluding service on 
                active duty in entry level and skill training); 
                and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 24 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 24 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(6) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 12 
                months, but less than 18 months, on active duty 
                in the Armed Forces (excluding service on 
                active duty in entry level and skill training); 
                and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 18 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 18 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(7) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 6 months, 
                but less than 12 months, on active duty in the 
                Armed Forces (excluding service on active duty 
                in entry level and skill training); and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 12 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 12 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
          ``(8) An individual who--
                  ``(A) commencing on or after September 11, 
                2001, serves an aggregate of at least 90 days, 
                but less than 6 months, on active duty in the 
                Armed Forces (excluding service on active duty 
                in entry level and skill training); and
                  ``(B) after completion of service described 
                in subparagraph (A)--
                          ``(i) continues on active duty for an 
                        aggregate of less than 6 months; or
                          ``(ii) before completion of service 
                        on active duty of an aggregate of 6 
                        months, is discharged or released from 
                        active duty as described in subsection 
                        (c).
  ``(c) Covered Discharges and Releases.--A discharge or 
release from active duty of an individual described in this 
subsection is a discharge or release as follows:
          ``(1) A discharge from active duty in the Armed 
        Forces with an honorable discharge.
          ``(2) A release after service on active duty in the 
        Armed Forces characterized by the Secretary concerned 
        as honorable service and placement on the retired list, 
        transfer to the Fleet Reserve or Fleet Marine Corps 
        Reserve, or placement on the temporary disability 
        retired list.
          ``(3) A release from active duty in the Armed Forces 
        for further service in a reserve component of the Armed 
        Forces after service on active duty characterized by 
        the Secretary concerned as honorable service.
          ``(4) A discharge or release from active duty in the 
        Armed Forces for--
                  ``(A) a medical condition which preexisted 
                the service of the individual as described in 
                the applicable paragraph of subsection (b) and 
                which the Secretary determines is not service-
                connected;
                  ``(B) hardship; or
                  ``(C) a physical or mental condition that was 
                not characterized as a disability and did not 
                result from the individual's own willful 
                misconduct but did interfere with the 
                individual's performance of duty, as determined 
                by the Secretary concerned in accordance with 
                regulations prescribed by the Secretary of 
                Defense.
  ``(d) Prohibition on Treatment of Certain Service as Period 
of Active Duty.--The following periods of service shall not be 
considered a part of the period of active duty on which an 
individual's entitlement to educational assistance under this 
chapter is based:
          ``(1) A period of service on active duty of an 
        officer pursuant to an agreement under section 2107(b) 
        of title 10.
          ``(2) A period of service on active duty of an 
        officer pursuant to an agreement under section 4348, 
        6959, or 9348 of title 10.
          ``(3) A period of service that is terminated because 
        of a defective enlistment and induction based on--
                  ``(A) the individual's being a minor for 
                purposes of service in the Armed Forces;
                  ``(B) an erroneous enlistment or induction; 
                or
                  ``(C) a defective enlistment agreement.
  ``(e) Treatment of Individuals Entitled Under Multiple 
Provisions.--In the event an individual entitled to educational 
assistance under this chapter is entitled by reason of both 
paragraphs (4) and (5) of subsection (b), the individual shall 
be treated as being entitled to educational assistance under 
this chapter by reason of paragraph (5) of subsection (b).

``Sec. 3312. Educational assistance: duration

  ``(a) In General.--Subject to section 3695 and except as 
provided in subsections (b) and (c), an individual entitled to 
educational assistance under this chapter is entitled to a 
number of months of educational assistance under section 3313 
equal to 36 months.
  ``(b) Continuing Receipt.--The receipt of educational 
assistance under section 3313 by an individual entitled to 
educational assistance under this chapter is subject to the 
provisions of section 3321(b)(2).
  ``(c) Discontinuation of Education for Active Duty.--
          ``(1) In general.--Any payment of educational 
        assistance described in paragraph (2) shall not--
                  ``(A) be charged against any entitlement to 
                educational assistance of the individual 
                concerned under this chapter; or
                  ``(B) be counted against the aggregate period 
                for which section 3695 limits the individual's 
                receipt of educational assistance under this 
                chapter.
          ``(2) Description of payment of educational 
        assistance.--Subject to paragraph (3), the payment of 
        educational assistance described in this paragraph is 
        the payment of such assistance to an individual for 
        pursuit of a course or courses under this chapter if 
        the Secretary finds that the individual--
                  ``(A)(i) in the case of an individual not 
                serving on active duty, had to discontinue such 
                course pursuit as a result of being called or 
                ordered to serve on active duty under section 
                688, 12301(a), 12301(d), 12301(g), 12302, or 
                12304 of title 10; or
                  ``(ii) in the case of an individual serving 
                on active duty, had to discontinue such course 
                pursuit as a result of being ordered to a new 
                duty location or assignment or to perform an 
                increased amount of work; and
                  ``(B) failed to receive credit or lost 
                training time toward completion of the 
                individual's approved education, professional, 
                or vocational objective as a result of having 
                to discontinue, as described in subparagraph 
                (A), the individual's course pursuit.
          ``(3) Period for which payment not charged.--The 
        period for which, by reason of this subsection, 
        educational assistance is not charged against 
        entitlement or counted toward the applicable aggregate 
        period under section 3695 of this title shall not 
        exceed the portion of the period of enrollment in the 
        course or courses from which the individual failed to 
        receive credit or with respect to which the individual 
        lost training time, as determined under paragraph 
        (2)(B).

``Sec. 3313. Educational assistance: amount; payment

  ``(a) Payment.--The Secretary shall pay to each individual 
entitled to educational assistance under this chapter who is 
pursuing an approved program of education (other than a program 
covered by subsections (e) and (f)) the amounts specified in 
subsection (c) to meet the expenses of such individual's 
subsistence, tuition, fees, and other educational costs for 
pursuit of such program of education.
  ``(b) Approved Programs of Education.--A program of education 
is an approved program of education for purposes of this 
chapter if the program of education is offered by an 
institution of higher learning (as that term is defined in 
section 3452(f)) and is approved for purposes of chapter 30 
(including approval by the State approving agency concerned).
  ``(c) Amount of Educational Assistance.--The amounts payable 
under this subsection for pursuit of an approved program of 
education are amounts as follows:
          ``(1) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(1) or 3311(b)(2), amounts as follows:
                  ``(A) An amount equal to the established 
                charges for the program of education, except 
                that the amount payable under this subparagraph 
                may not exceed the maximum amount of 
                established charges regularly charged in-State 
                students for full-time pursuit of approved 
                programs of education for undergraduates by the 
                public institution of higher education offering 
                approved programs of education for 
                undergraduates in the State in which the 
                individual is enrolled that has the highest 
                rate of regularly-charged established charges 
                for such programs of education among all public 
                institutions of higher education in such State 
                offering such programs of education.
                  ``(B) A monthly stipend in an amount as 
                follows:
                          ``(i) For each month the individual 
                        pursues the program of education (other 
                        than, in the case of assistance under 
                        this section only, a program of 
                        education offered through distance 
                        learning), a monthly housing stipend 
                        amount equal to the monthly amount of 
                        the basic allowance for housing payable 
                        under section 403 of title 37 for a 
                        member with dependents in pay grade E-5 
                        residing in the military housing area 
                        that encompasses all or the majority 
                        portion of the ZIP code area in which 
                        is located the institution of higher 
                        education at which the individual is 
                        enrolled.
                          ``(ii) For the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program of education 
                        pursued by the individual, a lump sum 
                        amount for books, supplies, equipment, 
                        and other educational costs with 
                        respect to such quarter, semester, or 
                        term in the amount equal to--
                                  ``(I) $1,000, multiplied by
                                  ``(II) the fraction which is 
                                the portion of a complete 
                                academic year under the program 
                                of education that such quarter, 
                                semester, or term constitutes.
          ``(2) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(3), amounts equal to 90 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          ``(3) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(4), amounts equal to 80 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          ``(4) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(5), amounts equal to 70 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          ``(5) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(6), amounts equal to 60 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          ``(6) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(7), amounts equal to 50 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          ``(7) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(8), amounts equal to 40 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
  ``(d) Frequency of Payment.--
          ``(1) Quarter, semester, or term payments.--Payment 
        of the amounts payable under subsection (c)(1)(A), and 
        of similar amounts payable under paragraphs (2) through 
        (7) of subsection (c), for pursuit of a program of 
        education shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          ``(2) Monthly payments.--Payment of the amount 
        payable under subsection (c)(1)(B), and of similar 
        amounts payable under paragraphs (2) through (7) of 
        subsection (c), for pursuit of a program of education 
        shall be made on a monthly basis.
          ``(3) Regulations.--The Secretary shall prescribe in 
        regulations methods for determining the number of 
        months (including fractions thereof) of entitlement of 
        an individual to educational assistance this chapter 
        that are chargeable under this chapter for an advance 
        payment of amounts under paragraphs (1) and (2) for 
        pursuit of a program of education on a quarter, 
        semester, term, or other basis.
  ``(e) Programs of Education Pursued on Active Duty.--
          ``(1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education while on active duty.
          ``(2) Amount of assistance.--The amount of 
        educational assistance payable under this chapter to an 
        individual pursuing a program of education while on 
        active duty is the lesser of--
                  ``(A) the established charges which similarly 
                circumstanced nonveterans enrolled in the 
                program of education involved would be required 
                to pay; or
                  ``(B) the amount of the charges of the 
                educational institution as elected by the 
                individual in the manner specified in section 
                3014(b)(1)
          ``(3) Quarter, semester, or term payments.--Payment 
        of the amount payable under paragraph (2) for pursuit 
        of a program of education shall be made for the entire 
        quarter, semester, or term, as applicable, of the 
        program of education.
          ``(4) Monthly payments.--For each month (as 
        determined pursuant to the methods prescribed under 
        subsection (d)(3)) for which amounts are paid an 
        individual under this subsection, the entitlement of 
        the individual to educational assistance under this 
        chapter shall be charged at the rate of one month for 
        each such month.
  ``(f) Programs of Education Pursued on Half-Time Basis or 
Less.--
          ``(1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education on half-time basis or less.
          ``(2) Amount of assistance.--The educational 
        assistance payable under this chapter to an individual 
        pursuing a program of education on half-time basis or 
        less is the amounts as follows:
                  ``(A) The amount equal to the lesser of--
                          ``(i) the established charges which 
                        similarly circumstanced nonveterans 
                        enrolled in the program of education 
                        involved would be required to pay; or
                          ``(ii) the maximum amount that would 
                        be payable to the individual for the 
                        program of education under paragraph 
                        (1)(A) of subsection (c), or under the 
                        provisions of paragraphs (2) through 
                        (7) of subsection (c) applicable to the 
                        individual, for the program of 
                        education if the individual were 
                        entitled to amounts for the program of 
                        education under subsection (c) rather 
                        than this subsection.
                  ``(B) A stipend in an amount equal to the 
                amount of the appropriately reduced amount of 
                the lump sum amount for books, supplies, 
                equipment, and other educational costs 
                otherwise payable to the individual under 
                subsection (c).
          ``(3)  Quarter, term, or semester payments.--Payment 
        of the amounts payable to an individual under paragraph 
        (2) for pursuit of a program of education on half-time 
        basis or less shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          ``(4) Monthly payments.--For each month (as 
        determined pursuant to the methods prescribed under 
        subsection (d)(3)) for which amounts are paid an 
        individual under this subsection, the entitlement of 
        the individual to educational assistance under this 
        chapter shall be charged at a percentage of a month 
        equal to--
                  ``(A) the number of course hours borne by the 
                individual in pursuit of the program of 
                education involved, divided by
                  ``(B) the number of course hours for full-
                time pursuit of such program of education.
  ``(g) Payment of Established Charges to Educational 
Institutions.--Amounts payable under subsections (c)(1)(A) (and 
of similar amounts payable under paragraphs (2) through (7) of 
subsection (c)), (e)(2), and (f)(2)(A) shall be paid directly 
to the educational institution concerned.
  ``(h) Established Charges Defined.--
          ``(1) In general.--In this section, the term 
        `established charges', in the case of a program of 
        education, means the actual charges (as determined 
        pursuant to regulations prescribed by the Secretary) 
        for tuition and fees which similarly circumstanced 
        nonveterans enrolled in the program of education would 
        be required to pay.
          ``(2) Basis of determination.--Established charges 
        shall be determined for purposes of this subsection on 
        the following basis:
                  ``(A) In the case of an individual enrolled 
                in a program of education offered on a term, 
                quarter, or semester basis, the tuition and 
                fees charged the individual for the term, 
                quarter, or semester.
                  ``(B) In the case of an individual enrolled 
                in a program of education not offered on a 
                term, quarter, or semester basis, the tuition 
                and fees charged the individual for the entire 
                program of education.

``Sec. 3314. Tutorial assistance

  ``(a) In General.--Subject to subsection (b), an individual 
entitled to educational assistance under this chapter shall 
also be entitled to benefits provided an eligible veteran under 
section 3492.
  ``(b) Conditions.--
          ``(1) In general.--The provision of benefits under 
        subsection (a) shall be subject to the conditions 
        applicable to an eligible veteran under section 3492.
          ``(2) Certification.--In addition to the conditions 
        specified in paragraph (1), benefits may not be 
        provided to an individual under subsection (a) unless 
        the professor or other individual teaching, leading, or 
        giving the course for which such benefits are provided 
        certifies that--
                  ``(A) such benefits are essential to correct 
                a deficiency of the individual in such course; 
                and
                  ``(B) such course is required as a part of, 
                or is prerequisite or indispensable to the 
                satisfactory pursuit of, an approved program of 
                education.
  ``(c) Amount.--
          ``(1) In general.--The amount of benefits described 
        in subsection (a) that are payable under this section 
        may not exceed $100 per month, for a maximum of 12 
        months, or until a maximum of $1,200 is utilized.
          ``(2) As additional assistance.--The amount provided 
        an individual under this subsection is in addition to 
        the amounts of educational assistance paid the 
        individual under section 3313.
  ``(d) No Charge Against Entitlement.--Any benefits provided 
an individual under subsection (a) are in addition to any other 
educational assistance benefits provided the individual under 
this chapter.

``Sec. 3315. Licensure and certification tests

  ``(a) In General.--An individual entitled to educational 
assistance under this chapter shall also be entitled to payment 
for one licensing or certification test described in section 
3452(b).
  ``(b) Limitation on Amount.--The amount payable under 
subsection (a) for a licensing or certification test may not 
exceed the lesser of--
          ``(1) $2,000; or
          ``(2) the fee charged for the test.
  ``(c) No Charge Against Entitlement.--Any amount paid an 
individual under subsection (a) is in addition to any other 
educational assistance benefits provided the individual under 
this chapter.

``Sec. 3316. Supplemental educational assistance: members with critical 
                    skills or specialty; members serving additional 
                    service

  ``(a) Increased Assistance for Members With Critical Skills 
or Specialty.--
          ``(1) In general.--In the case of an individual who 
        has a skill or specialty designated by the Secretary 
        concerned as a skill or specialty in which there is a 
        critical shortage of personnel or for which it is 
        difficult to recruit or, in the case of critical units, 
        retain personnel, the Secretary concerned may increase 
        the monthly amount of educational assistance otherwise 
        payable to the individual under paragraph (1)(B) of 
        section 3313(c), or under paragraphs (2) through (7) of 
        such section (as applicable).
          ``(2) Maximum amount of increase in assistance.--The 
        amount of the increase in educational assistance 
        authorized by paragraph (1) may not exceed the amount 
        equal to the monthly amount of increased basic 
        educational assistance providable under section 
        3015(d)(1) at the time of the increase under paragraph 
        (1).
  ``(b) Supplemental Assistance for Additional Service.--
          ``(1) In general.--The Secretary concerned may 
        provide for the payment to an individual entitled to 
        educational assistance under this chapter of 
        supplemental educational assistance for additional 
        service authorized by subchapter III of chapter 30. The 
        amount so payable shall be payable as an increase in 
        the monthly amount of educational assistance otherwise 
        payable to the individual under paragraph (1)(B) of 
        section 3313(c), or under paragraphs (2) through (7) of 
        such section (as applicable).
          ``(2) Eligibility.--Eligibility for supplement 
        educational assistance under this subsection shall be 
        determined in accordance with the provisions of 
        subchapter III of chapter 30, except that any reference 
        in such provisions to eligibility for basic educational 
        assistance under a provision of subchapter II of 
        chapter 30 shall be treated as a reference to 
        eligibility for educational assistance under the 
        appropriate provision of this chapter.
          ``(3) Amount.--The amount of supplemental educational 
        assistance payable under this subsection shall be the 
        amount equal to the monthly amount of supplemental 
        educational payable under section 3022.
  ``(c) Regulations.--The Secretaries concerned shall 
administer this section in accordance with such regulations as 
the Secretary of Defense shall prescribe.

``Sec. 3317. Public-private contributions for additional educational 
                    assistance

  ``(a) Establishment of Program.--In instances where the 
educational assistance provided pursuant to section 
3313(c)(1)(A) does not cover the full cost of established 
charges (as specified in section 3313), the Secretary shall 
carry out a program under which colleges and universities can, 
voluntarily, enter into an agreement with the Secretary to 
cover a portion of those established charges not otherwise 
covered under section 3313(c)(1)(A), which contributions shall 
be matched by equivalent contributions toward such costs by the 
Secretary. The program shall only apply to covered individuals 
described in paragraphs (1) and (2) of section 3311(b).
  ``(b) Designation of Program.--The program under this section 
shall be known as the `Yellow Ribbon G.I. Education Enhancement 
Program'.
  ``(c) Agreements.--The Secretary shall enter into an 
agreement with each college or university seeking to 
participate in the program under this section. Each agreement 
shall specify the following:
          ``(1) The manner (whether by direct grant, 
        scholarship, or otherwise) of the contributions to be 
        made by the college or university concerned.
          ``(2) The maximum amount of the contribution to be 
        made by the college or university concerned with 
        respect to any particular individual in any given 
        academic year.
          ``(3) The maximum number of individuals for whom the 
        college or university concerned will make contributions 
        in any given academic year.
          ``(4) Such other matters as the Secretary and the 
        college or university concerned jointly consider 
        appropriate.
  ``(d) Matching Contributions.--
          ``(1) In general.--In instances where the educational 
        assistance provided an individual under section 
        3313(c)(1)(A) does not cover the full cost of tuition 
        and mandatory fees at a college or university, the 
        Secretary shall provide up to 50 percent of the 
        remaining costs for tuition and mandatory fees if the 
        college or university voluntarily enters into an 
        agreement with the Secretary to match an equal 
        percentage of any of the remaining costs for such 
        tuition and fees.
          ``(2) Use of appropriated funds.--Amounts available 
        to the Secretary under section 3324(b) for payment of 
        the costs of this chapter shall be available to the 
        Secretary for purposes of paragraph (1).
  ``(e) Outreach.--The Secretary shall make available on the 
Internet website of the Department available to the public a 
current list of the colleges and universities participating in 
the program under this section. The list shall specify, for 
each college or university so listed, appropriate information 
on the agreement between the Secretary and such college or 
university under subsection (c).

``Sec. 3318. Additional assistance: relocation or travel assistance for 
                    individual relocating or traveling significant 
                    distance for pursuit of a program of education

  ``(a) Additional Assistance.--Each individual described in 
subsection (b) shall be paid additional assistance under this 
section in the amount of $500.
  ``(b) Covered Individuals.--An individual described in this 
subsection is any individual entitled to educational assistance 
under this chapter--
          ``(1) who resides in a county (or similar entity 
        utilized by the Bureau of the Census) with less than 
        seven persons per square mile, according to the most 
        recent decennial Census; and
          ``(2) who--
                  ``(A) physically relocates a distance of at 
                least 500 miles in order to pursue a program of 
                education for which the individual utilizes 
                educational assistance under this chapter; or
                  ``(B) travels by air to physically attend an 
                institution of higher education for pursuit of 
                such a program of education because the 
                individual cannot travel to such institution by 
                automobile or other established form of 
                transportation due to an absence of road or 
                other infrastructure.
  ``(c) Proof of Residence.--For purposes of subsection (b)(1), 
an individual may demonstrate the individual's place of 
residence utilizing any of the following:
          ``(1) DD Form 214, Certification of Release or 
        Discharge from Active Duty.
          ``(2) The most recent Federal income tax return.
          ``(3) Such other evidence as the Secretary shall 
        prescribe for purposes of this section.
  ``(d) Single Payment of Assistance.--An individual is 
entitled to only one payment of additional assistance under 
this section.
  ``(e) No Charge Against Entitlement.--Any amount paid an 
individual under this section is in addition to any other 
educational assistance benefits provided the individual under 
this chapter.

``Sec. 3319. Authority to transfer unused education benefits to family 
                    members

  ``(a) In General.--Subject to the provisions of this section, 
the Secretary of Defense may authorize the Secretary concerned, 
to promote recruitment and retention of members of the Armed 
Forces, to permit an individual described in subsection (b) who 
is entitled to educational assistance under this chapter to 
elect to transfer to one or more of the dependents specified in 
subsection (c) a portion of such individual's entitlement to 
such assistance, subject to the limitation under subsection 
(d).
  ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces who, at the 
time of the approval of the individual's request to transfer 
entitlement to educational assistance under this section, has 
completed at least--
          ``(1) six years of service in the armed forces and 
        enters into an agreement to serve at least four more 
        years as a member of the Armed Forces; or
          ``(2) the years of service as determined in 
        regulations pursuant to section (k).
  ``(c) Eligible Dependents.--An individual approved to 
transfer an entitlement to educational assistance under this 
section may transfer the individual's entitlement as follows:
          ``(1) To the individual's spouse.
          ``(2) To one or more of the individual's children.
          ``(3) To a combination of the individuals referred to 
        in paragraphs (1) and (2).
  ``(d) Limitation on Months of Transfer.--The total number of 
months of entitlement transferred by a individual under this 
section may not exceed 36 months. The Secretary of Defense may 
prescribe regulations that would limit the months of 
entitlement that may be transferred under this section to no 
less than 18 months.
  ``(e) Designation of Transferee.--An individual transferring 
an entitlement to educational assistance under this section 
shall--
          ``(1) designate the dependent or dependents to whom 
        such entitlement is being transferred;
          ``(2) designate the number of months of such 
        entitlement to be transferred to each such dependent; 
        and
          ``(3) specify the period for which the transfer shall 
        be effective for each dependent designated under 
        paragraph (1).
  ``(f) Time for Transfer; Revocation and Modification.--
          ``(1) Time for transfer.--Subject to the time 
        limitation for use of entitlement under section 3321 an 
        individual approved to transfer entitlement to 
        educational assistance under this section may transfer 
        such entitlement only while serving as a member of the 
        armed forces when the transfer is executed.
          ``(2) Modification or revocation.--
                  ``(A) In general.--An individual transferring 
                entitlement under this section may modify or 
                revoke at any time the transfer of any unused 
                portion of the entitlement so transferred.
                  ``(B) Notice.--The modification or revocation 
                of the transfer of entitlement under this 
                paragraph shall be made by the submittal of 
                written notice of the action to both the 
                Secretary concerned and the Secretary of 
                Veterans Affairs.
          ``(3) Prohibition on treatment of transferred 
        entitlement as marital property.--Entitlement 
        transferred under this section may not be treated as 
        marital property, or the asset of a marital estate, 
        subject to division in a divorce or other civil 
        proceeding.
  ``(g) Commencement of Use.--A dependent to whom entitlement 
to educational assistance is transferred under this section may 
not commence the use of the transferred entitlement until--
          ``(1) in the case of entitlement transferred to a 
        spouse, the completion by the individual making the 
        transfer of at least--
                  ``(A) six years of service in the armed 
                forces; or
                  ``(B) the years of service as determined in 
                regulations pursuant to subsection (j); or
          ``(2) in the case of entitlement transferred to a 
        child, both--
                  ``(A) the completion by the individual making 
                the transfer of at least--
                          ``(i) ten years of service in the 
                        armed forces; or
                          ``(ii) the years of service as 
                        determined in regulations pursuant to 
                        subsection (j); and
                  ``(B) either--
                          ``(i) the completion by the child of 
                        the requirements of a secondary school 
                        diploma (or equivalency certificate); 
                        or
                          ``(ii) the attainment by the child of 
                        18 years of age.
  ``(h) Additional Administrative Matters.--
          ``(1) Use.--The use of any entitlement to educational 
        assistance transferred under this section shall be 
        charged against the entitlement of the individual 
        making the transfer at the rate of one month for each 
        month of transferred entitlement that is used.
          ``(2) Nature of transferred entitlement.--Except as 
        provided under subsection (e)(2) and subject to 
        paragraphs (5) and (6)--
                  ``(A) in the case of entitlement transferred 
                to a spouse under this section, the spouse is 
                entitled to educational assistance under this 
                chapter in the same manner as the individual 
                from whom the entitlement was transferred; or
                  ``(B) in the case of entitlement transferred 
                to a child under this section, the child is 
                entitled to educational assistance under this 
                chapter in the same manner as the individual 
                from whom the entitlement was transferred as if 
                the individual were not on active duty.
          ``(3) Rate of payment.--The monthly rate of 
        educational assistance payable to a dependent to whom 
        entitlement referred to in paragraph (2) is transferred 
        under this section shall be payable--
                  ``(A) in the case of a spouse, at the same 
                rate as such entitlement would otherwise be 
                payable under this chapter to the individual 
                making the transfer; or
                  ``(B) in the case of a child, at the same 
                rate as such entitlement would otherwise be 
                payable under this chapter to the individual 
                making the transfer as if the individual were 
                not on active duty.
          ``(4) Death of transferor.--The death of an 
        individual transferring an entitlement under this 
        section shall not affect the use of the entitlement by 
        the dependent to whom the entitlement is transferred.
          ``(5) Limitation on age of use by child 
        transferees.--A child to whom entitlement is 
        transferred under this section may use the benefit 
        without regard to the 15-year delimiting date, but may 
        not use any entitlement so transferred after attaining 
        the age of 26 years.
          ``(6) Scope of use by transferees.--The purposes for 
        which a dependent to whom entitlement is transferred 
        under this section may use such entitlement shall 
        include the pursuit and completion of the requirements 
        of a secondary school diploma (or equivalency 
        certificate).
          ``(7) Additional administrative provisions.--The 
        administrative provisions of this chapter shall apply 
        to the use of entitlement transferred under this 
        section, except that the dependent to whom the 
        entitlement is transferred shall be treated as the 
        eligible individual for purposes of such provisions.
  ``(i) Overpayment.--
          ``(1) Joint and several liability.--In the event of 
        an overpayment of educational assistance with respect 
        to a dependent to whom entitlement is transferred under 
        this section, the dependent and the individual making 
        the transfer shall be jointly and severally liable to 
        the United States for the amount of the overpayment for 
        purposes of section 3685.
          ``(2) Failure to complete service agreement.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), if an individual transferring 
                entitlement under this section fails to 
                complete the service agreed to by the 
                individual under subsection (b)(1) in 
                accordance with the terms of the agreement of 
                the individual under that subsection, the 
                amount of any transferred entitlement under 
                this section that is used by a dependent of the 
                individual as of the date of such failure shall 
                be treated as an overpayment of educational 
                assistance under paragraph (1).
                  ``(B) Exception.--Subparagraph (A) shall not 
                apply in the case of an individual who fails to 
                complete service agreed to by the individual--
                          ``(i) by reason of the death of the 
                        individual; or
                          ``(ii) for a reason referred to in 
                        section 3311(c)(4).
  ``(j) Regulations.--(1) The Secretary of Defense, in 
coordination with the Secretary of Veterans Affairs, shall 
prescribe regulations for purposes of this section.
  ``(2) Such regulations shall specify--
          ``(A) the manner of authorizing the transfer of 
        entitlements under this section;
          ``(B) the eligibility criteria in accordance with 
        subsection (b); and
          ``(C) the manner and effect of an election to modify 
        or revoke a transfer of entitlement under subsection 
        (f)(2).
  ``(k) Secretary Concerned Defined.--Notwithstanding section 
101(25), in this section, the term `Secretary concerned' 
means--
          ``(1) the Secretary of the Army with respect to 
        matters concerning the Army;
          ``(2) the Secretary of the Navy with respect to 
        matters concerning the Navy or the Marine Corps;
          ``(3) the Secretary of the Air Force with respect to 
        matters concerning the Air Force; and
          ``(4) the Secretary of Defense with respect to 
        matters concerning the Coast Guard, or the Secretary of 
        Homeland Security when it is not operating as a service 
        in the Navy.

              ``SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

``Sec. 3321. Time limitation for use of and eligibility for entitlement

  ``(a) In General.--Except as provided in this section, the 
period during which an individual entitled to educational 
assistance under this chapter may use such individual's 
entitlement expires at the end of the 15-year period beginning 
on the date of such individual's last discharge or release from 
active duty.
  ``(b) Exceptions.--
          ``(1) Applicability of section 3031 to running of 
        period.--Subsections (b), (c), and (d) of section 3031 
        shall apply with respect to the running of the 15-year 
        period described in subsection (a) of this section in 
        the same manner as such subsections apply under section 
        3031 with respect to the running of the 10-year period 
        described in section 3031(a).
          ``(2) Applicability of section 3031 to termination.--
        Section 3031(f) shall apply with respect to the 
        termination of an individual's entitlement to 
        educational assistance under this chapter in the same 
        manner as such section applies to the termination of an 
        individual's entitlement to educational assistance 
        under chapter 30, except that, in the administration of 
        such section for purposes of this chapter, the 
        reference to section 3013 shall be deemed to be a 
        reference to 3312.
          ``(3) Determination of last discharge or release.--
        For purposes of subsection (a), an individual's last 
        discharge or release from active duty shall not include 
        any discharge or release from a period of active duty 
        of less than 90 days of continuous service, unless the 
        individual is discharged or released as described in 
        section 3311(b)(2).

``Sec. 3322. Bar to duplication of educational assistance benefits

  ``(a) In General.--An individual entitled to educational 
assistance under this chapter who is also eligible for 
educational assistance under chapter 30, 31, 32, or 35 of this 
title, chapter 107, 1606, or 1607 of title 10, or the 
provisions of the Hostage Relief Act of 1980 (Public Law 96-
449; 5 U.S.C. 5561 note) may not receive assistance under two 
or more such programs concurrently, but shall elect (in such 
form and manner as the Secretary may prescribe) under which 
chapter or provisions to receive educational assistance.
  ``(b) Inapplicability of Service Treated Under Educational 
Loan Repayment Programs.--A period of service counted for 
purposes of repayment of an education loan under chapter 109 of 
title 10 may not be counted as a period of service for 
entitlement to educational assistance under this chapter.
  ``(c) Service in Selected Reserve.--An individual who serves 
in the Selected Reserve may receive credit for such service 
under only one of this chapter, chapter 30 of this title, and 
chapters 1606 and 1607 of title 10, and shall elect (in such 
form and manner as the Secretary may prescribe) under which 
chapter such service is to be credited.
  ``(d) Additional Coordination Matters.--In the case of an 
individual entitled to educational assistance under chapter 30, 
31, 32, or 35 of this title, chapter 107, 1606, or 1607 of 
title 10, or the provisions of the Hostage Relief Act of 1980, 
or making contributions toward entitlement to educational 
assistance under chapter 30 of this title, as of August 1, 
2009, coordination of entitlement to educational assistance 
under this chapter, on the one hand, and such chapters or 
provisions, on the other, shall be governed by the provisions 
of section 5003(c) of the Post-9/11 Veterans Educational 
Assistance Act of 2008.

``Sec. 3323. Administration

  ``(a) In General.--
          ``(1) In general.--Except as otherwise provided in 
        this chapter, the provisions specified in section 
        3034(a)(1) shall apply to the provision of educational 
        assistance under this chapter.
          ``(2) Special rule.--In applying the provisions 
        referred to in paragraph (1) to an individual entitled 
        to educational assistance under this chapter for 
        purposes of this section, the reference in such 
        provisions to the term `eligible veteran' shall be 
        deemed to refer to an individual entitled to 
        educational assistance under this chapter.
          ``(3) Rule for applying section 3474.--In applying 
        section 3474 to an individual entitled to educational 
        assistance under this chapter for purposes of this 
        section, the reference in such section 3474 to the term 
        `educational assistance allowance' shall be deemed to 
        refer to educational assistance payable under section 
        3313.
          ``(4) Rule for applying section 3482.--In applying 
        section 3482(g) to an individual entitled to 
        educational assistance under this chapter for purposes 
        of this section--
                  ``(A) the first reference to the term 
                `educational assistance allowance' in such 
                section 3482(g) shall be deemed to refer to 
                educational assistance payable under section 
                3313; and
                  ``(B) the first sentence of paragraph (1) of 
                such section 3482(g) shall be applied as if 
                such sentence ended with `equipment'.
  ``(b) Information on Benefits.--
          ``(1) Timing for providing.--The Secretary shall 
        provide the information described in paragraph (2) to 
        each member of the Armed Forces at such times as the 
        Secretary and the Secretary of Defense shall jointly 
        prescribe in regulations.
          ``(2) Description of information.--The information 
        described in this paragraph is information on benefits, 
        limitations, procedures, eligibility requirements 
        (including time-in-service requirements), and other 
        important aspects of educational assistance under this 
        chapter, including application forms for such 
        assistance under section 5102.
          ``(3) To whom provided.--The Secretary of Veterans 
        Affairs shall furnish the information and forms 
        described in paragraph (2), and other educational 
        materials on educational assistance under this chapter, 
        to educational institutions, training establishments, 
        military education personnel, and such other persons 
        and entities as the Secretary considers appropriate.
  ``(c) Regulations.--
          ``(1) In general.--The Secretary shall prescribe 
        regulations for the administration of this chapter.
          ``(2) Uniformity.--Any regulations prescribed by the 
        Secretary of Defense for purposes of this chapter shall 
        apply uniformly across the Armed Forces.

``Sec. 3324. Allocation of administration and costs

  ``(a) Administration.--Except as otherwise provided in this 
chapter, the Secretary shall administer the provision of 
educational assistance under this chapter.
  ``(b) Costs.--Payments for entitlement to educational 
assistance earned under this chapter shall be made from funds 
appropriated to, or otherwise made available to, the Department 
for the payment of readjustment benefits.''.
          (2) Clerical amendments.--The tables of chapters at 
        the beginning of title 38, United States Code, and at 
        the beginning of part III of such title, are each 
        amended by inserting after the item relating to chapter 
        32 the following new item:

``33. Post-9/11 Educational Assistance..........................3301.''.

  (b) Conforming Amendments.--
          (1) Amendments relating to duplication of benefits.--
                  (A) Section 3033 of title 38, United States 
                Code, is amended--
                          (i) in subsection (a)(1) by inserting 
                        ``33,'' after ``32,''; and
                          (ii) in subsection (c) by striking 
                        ``both the program established by this 
                        chapter and the program established by 
                        chapter 106 of title 10'' and inserting 
                        ``two or more of the programs 
                        established by this chapter, chapter 33 
                        of this title, and chapters 1606 and 
                        1607 of title 10''.
                  (B) Paragraph (4) of section 3695(a) of such 
                title is amended to read as follows:
          ``(4) Chapters 30, 32, 33, 34, 35, and 36.''.
                  (C) Section 16163(e) of title 10, United 
                States Code, is amended by inserting ``33,'' 
                after ``32,''.
          (2) Additional conforming amendments.--
                  (A) Title 38, United States Code, is further 
                amended by inserting ``33,'' after ``32,'' each 
                place it appears in the following provisions:
                          (i) In subsections (b) and (e)(1) of 
                        section 3485.
                          (ii) In section 3688(b).
                          (iii) In subsections (a)(1), (c)(1), 
                        (c)(1)(G), (d), and (e)(2) of section 
                        3689.
                          (iv) In section 3690( b)(3)(A).
                          (v) In subsections (a) and (b) of 
                        section 3692.
                          (vi) In section 3697(a).
                  (B) Section 3697A(b)(1) of such title is 
                amended by striking ``or 32'' and inserting 
                ``32, or 33''.
  (c) Applicability to Individuals Under Montgomery Gi Bill 
Program.--
          (1) Individuals eligible to elect participation in 
        post-9/11 educational assistance.--An individual may 
        elect to receive educational assistance under chapter 
        33 of title 38, United States Code (as added by 
        subsection (a)), if such individual--
                  (A) as of August 1, 2009--
                          (i) is entitled to basic educational 
                        assistance under chapter 30 of title 
                        38, United States Code, and has used, 
                        but retains unused, entitlement under 
                        that chapter;
                          (ii) is entitled to educational 
                        assistance under chapter 107, 1606, or 
                        1607 of title 10, United States Code, 
                        and has used, but retains unused, 
                        entitlement under the applicable 
                        chapter;
                          (iii) is entitled to basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, but 
                        has not used any entitlement under that 
                        chapter;
                          (iv) is entitled to educational 
                        assistance under chapter 107, 1606, or 
                        1607 of title 10, United States Code, 
                        but has not used any entitlement under 
                        such chapter;
                          (v) is a member of the Armed Forces 
                        who is eligible for receipt of basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, and is 
                        making contributions toward such 
                        assistance under section 3011(b) or 
                        3012(c) of such title; or
                          (vi) is a member of the Armed Forces 
                        who is not entitled to basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, by 
                        reason of an election under section 
                        3011(c)(1) or 3012(d)(1) of such title; 
                        and
                  (B) as of the date of the individual's 
                election under this paragraph, meets the 
                requirements for entitlement to educational 
                assistance under chapter 33 of title 38, United 
                States Code (as so added).
          (2) Cessation of contributions toward gi bill.--
        Effective as of the first month beginning on or after 
        the date of an election under paragraph (1) of an 
        individual described by subparagraph (A)(v) of that 
        paragraph, the obligation of the individual to make 
        contributions under section 3011(b) or 3012(c) of title 
        38, United States Code, as applicable, shall cease, and 
        the requirements of such section shall be deemed to be 
        no longer applicable to the individual.
          (3) Revocation of remaining transferred 
        entitlement.--
                  (A) Election to revoke.--If, on the date an 
                individual described in subparagraph (A)(i) or 
                (A)(iii) of paragraph (1) makes an election 
                under that paragraph, a transfer of the 
                entitlement of the individual to basic 
                educational assistance under section 3020 of 
                title 38, United States Code, is in effect and 
                a number of months of the entitlement so 
                transferred remain unutilized, the individual 
                may elect to revoke all or a portion of the 
                entitlement so transferred that remains 
                unutilized.
                  (B) Availability of revoked entitlement.--Any 
                entitlement revoked by an individual under this 
                paragraph shall no longer be available to the 
                dependent to whom transferred, but shall be 
                available to the individual instead for 
                educational assistance under chapter 33 of 
                title 38, United States Code (as so added), in 
                accordance with the provisions of this 
                subsection.
                  (C) Availability of unrevoked entitlement.--
                Any entitlement described in subparagraph (A) 
                that is not revoked by an individual in 
                accordance with that subparagraph shall remain 
                available to the dependent or dependents 
                concerned in accordance with the current 
                transfer of such entitlement under section 3020 
                of title 38, United States Code.
          (4) Post-9/11 educational assistance.--
                  (A) In general.--Subject to subparagraph (B) 
                and except as provided in paragraph (5), an 
                individual making an election under paragraph 
                (1) shall be entitled to educational assistance 
                under chapter 33 of title 38, United States 
                Code (as so added), in accordance with the 
                provisions of such chapter, instead of basic 
                educational assistance under chapter 30 of 
                title 38, United States Code, or educational 
                assistance under chapter 107, 1606, or 1607 of 
                title 10, United States Code, as applicable.
                  (B) Limitation on entitlement for certain 
                individuals.--In the case of an individual 
                making an election under paragraph (1) who is 
                described by subparagraph (A)(i) of that 
                paragraph, the number of months of entitlement 
                of the individual to educational assistance 
                under chapter 33 of title 38, United States 
                Code (as so added), shall be the number of 
                months equal to--
                          (i) the number of months of unused 
                        entitlement of the individual under 
                        chapter 30 of title 38, United States 
                        Code, as of the date of the election, 
                        plus
                          (ii) the number of months, if any, of 
                        entitlement revoked by the individual 
                        under paragraph (3)(A).
          (5) Continuing entitlement to educational assistance 
        not available under 9/11 assistance program.--
                  (A) In general.--In the event educational 
                assistance to which an individual making an 
                election under paragraph (1) would be entitled 
                under chapter 30 of title 38, United States 
                Code, or chapter 107, 1606, or 1607 of title 
                10, United States Code, as applicable, is not 
                authorized to be available to the individual 
                under the provisions of chapter 33 of title 38, 
                United States Code (as so added), the 
                individual shall remain entitled to such 
                educational assistance in accordance with the 
                provisions of the applicable chapter.
                  (B) Charge for use of entitlement.--The 
                utilization by an individual of entitlement 
                under subparagraph (A) shall be chargeable 
                against the entitlement of the individual to 
                educational assistance under chapter 33 of 
                title 38, United States Code (as so added), at 
                the rate of one month of entitlement under such 
                chapter 33 for each month of entitlement 
                utilized by the individual under subparagraph 
                (A) (as determined as if such entitlement were 
                utilized under the provisions of chapter 30 of 
                title 38, United States Code, or chapter 107, 
                1606, or 1607 of title 10, United States Code, 
                as applicable).
          (6) Additional post-9/11 assistance for members 
        having made contributions toward gi bill.--
                  (A) Additional assistance.--In the case of an 
                individual making an election under paragraph 
                (1) who is described by clause (i), (iii), or 
                (v) of subparagraph (A) of that paragraph, the 
                amount of educational assistance payable to the 
                individual under chapter 33 of title 38, United 
                States Code (as so added), as a monthly stipend 
                payable under paragraph (1)(B) of section 
                3313(c) of such title, or under paragraphs (2) 
                through (7) of that section (as applicable), 
                shall be the amount otherwise payable as a 
                monthly stipend under the applicable paragraph 
                increased by the amount equal to--
                          (i) the total amount of contributions 
                        toward basic educational assistance 
                        made by the individual under section 
                        3011(b) or 3012(c) of title 38, United 
                        States Code, as of the date of the 
                        election, multiplied by
                          (ii) the fraction--
                                  (I) the numerator of which 
                                is--
                                          (aa) the number of 
                                        months of entitlement 
                                        to basic educational 
                                        assistance under 
                                        chapter 30 of title 38, 
                                        United States Code, 
                                        remaining to the 
                                        individual at the time 
                                        of the election; plus
                                          (bb) the number of 
                                        months, if any, of 
                                        entitlement under such 
                                        chapter 30 revoked by 
                                        the individual under 
                                        paragraph (3)(A); and
                                  (II) the denominator of which 
                                is 36 months.
                  (B) Months of remaining entitlement for 
                certain individuals.--In the case of an 
                individual covered by subparagraph (A) who is 
                described by paragraph (1)(A)(v), the number of 
                months of entitlement to basic educational 
                assistance remaining to the individual for 
                purposes of subparagraph (A)(ii)(I)(aa) shall 
                be 36 months.
                  (C) Timing of payment.--The amount payable 
                with respect to an individual under 
                subparagraph (A) shall be paid to the 
                individual together with the last payment of 
                the monthly stipend payable to the individual 
                under paragraph (1)(B) of section 3313(c) of 
                title 38, United States Code (as so added), or 
                under paragraphs (2) through (7) of that 
                section (as applicable), before the exhaustion 
                of the individual's entitlement to educational 
                assistance under chapter 33 of such title (as 
                so added).
          (7) Continuing entitlement to additional assistance 
        for critical skills or speciality and additional 
        service.--An individual making an election under 
        paragraph (1)(A) who, at the time of the election, is 
        entitled to increased educational assistance under 
        section 3015(d) of title 38, United States Code, or 
        section 16131(i) of title 10, United States Code, or 
        supplemental educational assistance under subchapter 
        III of chapter 30 of title 38, United States Code, 
        shall remain entitled to such increased educational 
        assistance or supplemental educational assistance in 
        the utilization of entitlement to educational 
        assistance under chapter 33 of title 38, United States 
        Code (as so added), in an amount equal to the quarter, 
        semester, or term, as applicable, equivalent of the 
        monthly amount of such increased educational assistance 
        or supplemental educational assistance payable with 
        respect to the individual at the time of the election.
          (8) Irrevocability of elections.--An election under 
        paragraph (1) or (3)(A) is irrevocable.
  (d) Effective Date.--This section and the amendments made by 
this section shall take effect on August 1, 2009.

     INCREASE IN AMOUNTS OF BASIC EDUCATIONAL ASSISTANCE UNDER THE 
                           MONTGOMERY GI BILL

  Sec. 5004.  (a) Educational Assistance Based on Three-Year 
Period of Obligated Service.--Subsection (a)(1) of section 3015 
of title 38, United States Code, is amended--
          (1) by striking subparagraphs (A) through (C) and 
        inserting the following new subparagraph:
          ``(A) for months occurring during the period 
        beginning on August 1, 2008, and ending on the last day 
        of fiscal year 2009, $1,321; and''; and
          (2) by redesignating subparagraph (D) as subparagraph 
        (B).
  (b) Educational Assistance Based on Two-Year Period of 
Obligated Service.--Subsection (b)(1) of such section is 
amended--
          (1) by striking subparagraphs (A) through (C) and 
        inserting the following new subparagraph:
          ``(A) for months occurring during the period 
        beginning on August 1, 2008, and ending on the last day 
        of fiscal year 2009, $1,073; and''; and
          (2) by redesignating subparagraph (D) as subparagraph 
        (B).
  (c) Modification of Mechanism for Cost-of-Living 
Adjustments.--Subsection (h)(1) of such section is amended by 
striking subparagraphs (A) and (B) and inserting the following 
new subparagraphs:
                  ``(A) the average cost of undergraduate 
                tuition in the United States, as determined by 
                the National Center for Education Statistics, 
                for the last academic year preceding the 
                beginning of the fiscal year for which the 
                increase is made, exceeds
                  ``(B) the average cost of undergraduate 
                tuition in the United States, as so determined, 
                for the academic year preceding the academic 
                year described in subparagraph (A).''.
  (d) Effective Date.--
          (1) In general.--The amendments made by this section 
        shall take effect on August 1, 2008.
          (2) No cost-of-living adjustment for fiscal year 
        2009.--The adjustment required by subsection (h) of 
        section 3015 of title 38, United States Code (as 
        amended by this section), in rates of basic educational 
        assistance payable under subsections (a) and (b) of 
        such section (as so amended) shall not be made for 
        fiscal year 2009.

 MODIFICATION OF AMOUNT AVAILABLE FOR REIMBURSEMENT OF STATE AND LOCAL 
           AGENCIES ADMINISTERING VETERANS EDUCATION BENEFITS

  Sec. 5005.  Section 3674(a)(4) of title 38, United States 
Code, is amended by striking ``may not exceed'' and all that 
follows through the end and inserting ``shall be 
$19,000,000.''.

 AUTHORITY TO TRANSFER UNUSED EDUCATION BENEFITS TO FAMILY MEMBERS FOR 
                         CAREER SERVICE MEMBERS

  Sec. 5006.  (a) Authority to Transfer Montgomery GI Bill 
Benefits to a Dependent.--Section 3020 of title 38, United 
States Code, is amended--
          (1) by striking the section heading and subsections 
        (a) and (b) and inserting the following:

``Sec. 3020. Authority to transfer unused education benefits to family 
                    members for career service members

  ``(a) In General.--Subject to the provisions of this section, 
the Secretary of Defense may authorize the Secretary concerned, 
to promote recruitment and retention of members of the Armed 
Forces, to permit an individual described in subsection (b) who 
is entitled to basic educational assistance under this 
subchapter to elect to transfer to one or more of the 
dependents specified in subsection (c) the unused portion of 
entitlement to such assistance, subject to the limitation under 
subsection (d).
  ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces--
          ``(1) who, while serving on active duty or as a 
        member of the Selected Reserve at the time of the 
        approval by the Secretary concerned of the member's 
        request to transfer entitlement to basic educational 
        assistance under this section, has completed six years 
        of service in the Armed Forces and enters into an 
        agreement to serve at least four more years as a member 
        of the Armed Forces; or
          ``(2) as determined in regulations pursuant to 
        subsection (k).'';
          (2) by striking subsection (d) and inserting the 
        following:
  ``(d) Limitation on Months of Transfer.--(1) An individual 
approved to transfer an entitlement to basic educational 
assistance under this section may transfer any unused 
entitlement to one or more of the dependents specified in 
subsection (c).
  ``(2) The total number of months of entitlement transferred 
by an individual under this section may not exceed 36 months. 
The Secretary of Defense may prescribe regulations that would 
limit the months of entitlement that may be transferred under 
this section to no less than 18 months.'';
          (3) in subsection (f)(1) by striking ``without regard 
        to whether'' and inserting ``only while''; and
          (4) in subsection (f)(2) by inserting ``as long as 
        the individual is serving on active duty or as a member 
        of the Selected Reserve'' after ``so transferred'';
          (5) by adding at the end of subsection (f) the 
        following:
  ``(3) Entitlement transferred under this section may not be 
treated as marital property, or the asset of a marital estate, 
subject to division in a divorce or other civil proceeding.'';
          (6) in subsection (h)(5) by inserting ``may use the 
        benefit without regard to the 10-year delimiting date, 
        but'' after ``under this section''; and
          (7) by striking subsection (k) and inserting the 
        following:
  ``(k) Regulations.--The Secretary of Defense, in coordination 
with the Secretary of Veterans Affairs, shall prescribe 
regulations for purposes of this section. Such regulations 
shall specify--
          ``(1) the manner of authorizing the military 
        departments to offer transfer of entitlements under 
        this section;
          ``(2) the eligibility criteria in accordance with 
        subsection (b);
          ``(3) the limitations on the amount of entitlement 
        eligible to be transferred; and
          ``(4) the manner and effect of an election to modify 
        or revoke a transfer of entitlement under subsection 
        (f)(2).''.
  (b) Authority to Transfer Montgomery GI Bill for the Selected 
Reserve Benefits to a Dependent.--Chapter 1606 of title 10, 
United States Code, is amended by inserting after section 16132 
the following:

``Sec. 16132a. Authority to transfer unused education benefits to 
                    family members

  ``(a) In General.--Subject to regulation prescribed by the 
Secretary of Defense, the Secretary concerned may permit a 
member described in subsection (b) who is entitled to basic 
educational assistance under this chapter to elect to transfer 
to one or more of the dependents specified in subsection (c) a 
portion of such member's entitlement to such assistance, 
subject to the limitation under subsection (d).
  ``(b) Eligible Members.--A member referred to in subsection 
(a) is a member of the Selected Reserve of the Ready Reserve 
who, at the time of the approval of the member's request to 
transfer entitlement to basic educational assistance under this 
section, has completed--
          ``(1) at least six years of service in the Selected 
        Reserve and enters into an agreement to service at 
        least four more years as a member of the armed forces; 
        or
          ``(2) the years of service as determined in 
        regulations pursuant to subsection (j).
  ``(c) Eligible Dependents.--A member approved to transfer an 
entitlement to basic educational assistance under this section 
may transfer the member's entitlement as follows:
          ``(1) To the member's spouse.
          ``(2) To one or more of the member's children.
          ``(3) To a combination of the individuals referred to 
        in paragraphs (1) and (2).
  ``(d) Limitation on Months of Transfer.--The total number of 
months of entitlement transferred by a member under this 
section may not exceed 36 months. The Secretary of Defense may 
prescribe regulations that would limit the months of 
entitlement that may be transferred under this section to no 
less than 18 months.
  ``(e) Designation of Transferee.--A member transferring an 
entitlement to basic educational assistance under this section 
shall--
          ``(1) designate the dependent or dependents to whom 
        such entitlement is being transferred;
          ``(2) designate the number of months of such 
        entitlement to be transferred to each such dependent; 
        and
          ``(3) specify the period for which the transfer shall 
        be effective for each dependent designated under 
        paragraph (1).
  ``(f) Time for Transfer; Revocation and Modification.--(1) 
Subject to the time limitation for use of entitlement under 
section 16133, a member approved to transfer entitlement to 
basic educational assistance under this section may transfer 
such entitlement at any time after the approval of the member's 
request to transfer such entitlement.
  ``(2) A member transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused 
portion of the entitlement so transferred. The modification or 
revocation of the transfer of entitlement under this paragraph 
shall be made by the submittal of written notice of the action 
to both the Secretary concerned and the Secretary of Veterans 
Affairs.
  ``(3) Entitlement transferred under this section may not be 
treated as marital property, or the asset of a marital estate, 
subject to division in a divorce or other civil proceeding.
  ``(g) Commencement of Use.--A dependent to whom entitlement 
to basic educational assistance is transferred under this 
section may not commence the use of the transferred entitlement 
until--
          ``(1) in the case of entitlement transferred to a 
        spouse, the completion by the member making the 
        transfer of at least--
                  ``(A) six years of service in the armed 
                forces; or
                  ``(B) the years of service as determined in 
                regulations pursuant to subsection (j); or
          ``(2) in the case of entitlement transferred to a 
        child, both--
                  ``(A) the completion by the member making the 
                transfer of at least--
                          ``(i) ten years of service in the 
                        armed forces; or
                          ``(ii) the years of service as 
                        determined in regulations pursuant to 
                        subsection (j); and
                  ``(B) either--
                          ``(i) the completion by the child of 
                        the requirements of a secondary school 
                        diploma (or equivalency certificate); 
                        or
                          ``(ii) the attainment by the child of 
                        18 years of age.
  ``(h) Additional Administrative Matters.--(1) The use of any 
entitlement to basic educational assistance transferred under 
this section shall be charged against the entitlement of the 
member making the transfer at the rate of one month for each 
month of transferred entitlement that is used.
  ``(2) Except as provided under subsection (e)(2) and subject 
to paragraphs (5) and (6), a dependent to whom entitlement is 
transferred under this section is entitled to basic educational 
assistance under this chapter in the same manner as the member 
from whom the entitlement was transferred.
  ``(3) The monthly rate of educational assistance payable to a 
dependent to whom entitlement is transferred under this section 
shall be the monthly amount payable under sections 16131 and 
16131a to the member making the transfer.
  ``(4) The death of a member transferring an entitlement under 
this section shall not affect the use of the entitlement by the 
dependent to whom the entitlement is transferred.
  ``(5) The involuntary separation or retirement of the 
member--
          ``(A) because of a nondiscretionary provision of law 
        for age or years of service;
          ``(B) because of a policy prescribed by the Secretary 
        concerned mandating such separation or retirement based 
        solely on age or years of service for the prescribed 
        pay grade of an enlisted member;
          ``(C) under section 16133(b); or
          ``(D) because of medical disqualification which is 
        not the result of gross negligence or misconduct of the 
        member,
shall not affect the use of entitlement by the dependent to 
whom the entitlement is transferred.
  ``(6) A child to whom entitlement is transferred under this 
section may not use any entitlement so transferred after 
attaining the age of 26 years.
  ``(7) The administrative provisions of this chapter shall 
apply to the use of entitlement transferred under this section, 
except that the dependent to whom the entitlement is 
transferred shall be treated as the eligible member for 
purposes of such provisions.
  ``(8) The purposes for which a dependent to whom entitlement 
is transferred under this section may use such entitlement 
shall include the pursuit and completion of the requirements of 
a secondary school diploma (or equivalency certificate).
  ``(i) Overpayment.--(1) In the event of an overpayment of 
basic educational assistance with respect to a dependent to 
whom entitlement is transferred under this section, the 
dependent and the member making the transfer shall be jointly 
and severally liable to the United States for the amount of the 
overpayment for purposes of section 3685 of title 38.
  ``(2) Except as provided in paragraph (3), if a member's 
whose eligibility is terminated under section 16134(2), the 
amount of any transferred entitlement under this section that 
is used by a dependent of the member as of the date of such 
termination shall be treated as an overpayment of basic 
educational assistance under paragraph (1).
  ``(3) Paragraph (2) shall not apply in the case of a member 
who fails to complete service agreed to by the member--
          ``(A) by reason of the death of the member; or
          ``(B) for a reason referred to in section 16133(b).
  ``(j) Regulations.--The Secretary of Defense, in consultation 
with the Secretary of Veterans Affairs, shall prescribe 
regulations for purposes of this section. Such regulations 
shall specify--
          ``(1) the manner of authorizing the military 
        departments to offer transfer of entitlements under 
        this section;
          ``(2) the eligibility criteria in accordance with 
        subsection (b);
          ``(3) the manner and effect of an election to modify 
        or revoke a transfer of entitlement under subsection 
        (f)(2); and
          ``(4) the manner in which the provisions referred to 
        in subsections (h)(4) and (5) shall be administered 
        with respect to a dependent to whom entitlement is 
        transferred under this section.''.
  (c) Authority to Transfer Reserve Educational Assistance 
Program Benefits to a Dependent.--Chapter 1607 of such title is 
amended by inserting after section 16163 the following:

``Sec. 16163a. Authority to transfer unused education benefits to 
                    family members

  ``(a) In General.--Subject to the provisions of this section, 
the Secretary concerned may permit, at such Secretary's sole 
discretion, a member described in subsection (b) who is 
entitled to basic educational assistance under this chapter to 
elect to transfer to one or more of the dependents specified in 
subsection (c) a portion of such member's entitlement to such 
assistance, subject to the limitation under subsection (d).
  ``(b) Eligible Members.--A member referred to in subsection 
(a) is a member of the armed forces who, at the time of the 
approval of the member's request to transfer entitlement to 
basic educational assistance under this section, has completed 
at least--
          ``(1) six years of service in the armed forces and 
        enters into an agreement to serve at least four more 
        years as a member of the armed forces; or
          ``(2) the years of service as determined in 
        regulations pursuant to section (j).
  ``(c) Eligible Dependents.--A member approved to transfer an 
entitlement to basic educational assistance under this section 
may transfer the member's entitlement as follows:
          ``(1) To the member's spouse.
          ``(2) To one or more of the member's children.
          ``(3) To a combination of the individuals referred to 
        in paragraphs (1) and (2).
  ``(d) Limitation on Months of Transfer.--The total number of 
months of entitlement transferred by a member under this 
section may not exceed 36 months. The Secretary of Defense may 
prescribe regulations that would limit the months of 
entitlement that may be transferred under this section to no 
less than 18 months.
  ``(e) Designation of Transferee.--A member transferring an 
entitlement to basic educational assistance under this section 
shall--
          ``(1) designate the dependent or dependents to whom 
        such entitlement is being transferred;
          ``(2) designate the number of months of such 
        entitlement to be transferred to each such dependent; 
        and
          ``(3) specify the period for which the transfer shall 
        be effective for each dependent designated under 
        paragraph (1).
  ``(f) Time for Transfer; Revocation and Modification.--(1) 
Subject to the time limitation for use of entitlement under 
section 16164, a member approved to transfer entitlement to 
basic educational assistance under this section may transfer 
such entitlement only while serving as a member of the armed 
forces when the transfer is executed.
  ``(2) A member transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused 
portion of the entitlement so transferred. The modification or 
revocation of the transfer of entitlement under this paragraph 
shall be made by the submittal of written notice of the action 
to both the Secretary concerned and the Secretary of Veterans 
Affairs.
  ``(3) Entitlement transferred under this section may not be 
treated as marital property, or the asset of a marital estate, 
subject to division in a divorce or other civil proceeding.
  ``(g) Commencement of Use.--A dependent to whom entitlement 
to basic educational assistance is transferred under this 
section may not commence the use of the transferred entitlement 
until--
          ``(1) in the case of entitlement transferred to a 
        spouse, the completion by the member making the 
        transfer of at least--
                  ``(A) six years of service in the armed 
                forces; or
                  ``(B) the years of service as determined in 
                regulations pursuant to subsection (j); or
          ``(2) in the case of entitlement transferred to a 
        child, both--
                  ``(A) the completion by the member making the 
                transfer of at least--
                          ``(i) ten years of service in the 
                        armed forces; or
                          ``(ii) the years of service as 
                        determined in regulations pursuant to 
                        subsection (j); and
                  ``(B) either--
                          ``(i) the completion by the child of 
                        the requirements of a secondary school 
                        diploma (or equivalency certificate); 
                        or
                          ``(ii) the attainment by the child of 
                        18 years of age.
  ``(h) Additional Administrative Matters.--(1) The use of any 
entitlement to basic educational assistance transferred under 
this section shall be charged against the entitlement of the 
member making the transfer at the rate of one month for each 
month of transferred entitlement that is used.
  ``(2) Except as provided under subsection (e)(2) and subject 
to paragraphs (5) and (6), a dependent to whom entitlement is 
transferred under this section is entitled to basic educational 
assistance under this chapter in the same manner as the member 
from whom the entitlement was transferred.
  ``(3) The monthly rate of educational assistance payable to a 
dependent to whom entitlement is transferred under this section 
shall be the monthly amount payable under sections 16162 and 
16162a to the member making the transfer.
  ``(4) The death of a member transferring an entitlement under 
this section shall not affect the use of the entitlement by the 
dependent to whom the entitlement is transferred.
  ``(5) Notwithstanding section 16164(a)(2), a child to whom 
entitlement is transferred under this section may use the 
benefit without regard to the 10-year delimiting date, but may 
not use any entitlement so transferred after attaining the age 
of 26 years.
  ``(6) The administrative provisions of this chapter shall 
apply to the use of entitlement transferred under this section, 
except that the dependent to whom the entitlement is 
transferred shall be treated as the eligible member for 
purposes of such provisions.
  ``(7) The purposes for which a dependent to whom entitlement 
is transferred under this section may use such entitlement 
shall include the pursuit and completion of the requirements of 
a secondary school diploma (or equivalency certificate).
  ``(i) Overpayment.--
          ``(1) Joint and several liability.--In the event of 
        an overpayment of basic educational assistance with 
        respect to a dependent to whom entitlement is 
        transferred under this section, the dependent and the 
        member making the transfer shall be jointly and 
        severally liable to the United States for the amount of 
        the overpayment for purposes of section 3685 of title 
        38.
          ``(2) Failure to complete service agreement.--Except 
        as provided in paragraph (3), if an individual 
        transferring entitlement under this section fails to 
        complete the service agreed to by the individual under 
        subsection (b)(1) in accordance with the terms of the 
        agreement of the individual under that subsection, the 
        amount of any transferred entitlement under this 
        section that is used by a dependent of the individual 
        as of the date of such failure shall be treated as an 
        overpayment of educational assistance under paragraph 
        (1).
          ``(3) Paragraph (2) shall not apply in the case of an 
        individual who fails to complete service agreed to by 
        the individual--
                  ``(A) by reason of the death of the 
                individual; or
                  ``(B) for a reason referred to in section 
                16133(b).
  ``(j) Regulations.--(1) The Secretary of Defense, in 
coordination with the Secretary of Veterans Affairs, shall 
prescribe regulations for purposes of this section.
  ``(2) Such regulations shall specify--
          ``(A) the manner of authorizing the transfer of 
        entitlements under this section;
          ``(B) the eligibility criteria in accordance with 
        subsection (b); and
          ``(C) the manner and effect of an election to modify 
        or revoke a transfer of entitlement under subsection 
        (f)(2).
  ``(k) Secretary Concerned Defined.--For purposes of this 
section, the term `Secretary concerned' has the meaning given 
in section 101(a)(9) in the case of a member of the armed 
forces.''.
  (d) Conforming Amendments.--Section 16133(a) of title 10, 
United States Code, is amended by striking ``(1)'' and all that 
follows through the period at the end of the subsection and 
inserting ``on the date the person is separated from the 
Selected Reserve.''.
  (e) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 30 of title 38, United States Code, is 
amended by striking the item relating to section 3020 and 
inserting the following new item:

``3020. Authority to transfer unused education benefits to family 
          members of career service members.''.

  (2) The table of sections at the beginning of chapter 1606 of 
title 10, United States Code, is amended by inserting after the 
item relating to section 16132 the following new item:

``16132a. Authority to transfer unused education benefits to family 
          members.''.

  (3) The table of sections at the beginning of chapter 1607 of 
such title is amended by inserting after the item relating to 
section 16163 the following new item:

``16163a. Authority to transfer unused education benefits to family 
          members.''.

  TITLE VI--ACCOUNTABILITY AND TRANSPARENCY IN GOVERNMENT CONTRACTING

             CHAPTER 1--CLOSE THE CONTRACTOR FRAUD LOOPHOLE

                              SHORT TITLE

  Sec. 6101.  This chapter may be cited as the ``Close the 
Contractor Fraud Loophole Act''.

             REVISION OF THE FEDERAL ACQUISITION REGULATION

  Sec. 6102.  The Federal Acquisition Regulation shall be 
amended within 180 days after the date of the enactment of this 
Act pursuant to FAR Case 2007-006 (as published at 72 Fed Reg. 
64019, November 14, 2007) or any follow-on FAR case to include 
provisions that require timely notification by Federal 
contractors of violations of Federal criminal law or 
overpayments in connection with the award or performance of 
covered contracts or subcontracts, including those performed 
outside the United States and those for commercial items.

                               DEFINITION

  Sec. 6103.  In this chapter, the term ``covered contract'' 
means any contract in an amount greater than $5,000,000 and 
more than 120 days in duration.

               CHAPTER 2--GOVERNMENT FUNDING TRANSPARENCY

                              SHORT TITLE

  Sec. 6201.  This chapter may be cited as the ``Government 
Funding Transparency Act of 2008''.

  FINANCIAL DISCLOSURE REQUIREMENTS FOR CERTAIN RECIPIENTS OF FEDERAL 
                                 AWARDS

  Sec. 6202.  (a) Disclosure Requirements.--Section 2(b)(1) of 
the Federal Funding Accountability and Transparency Act (Public 
Law 109-282; 31 U.S.C. 6101 note) is amended--
          (1) by striking ``and'' at the end of subparagraph 
        (E);
          (2) by redesignating subparagraph (F) as subparagraph 
        (G); and
          (3) by inserting after subparagraph (E) the following 
        new subparagraph:
                  ``(F) the names and total compensation of the 
                five most highly compensated officers of the 
                entity if--
                          ``(i) the entity in the preceding 
                        fiscal year received--
                                  ``(I) 80 percent or more of 
                                its annual gross revenues in 
                                Federal awards; and
                                  ``(II) $25,000,000 or more in 
                                annual gross revenues from 
                                Federal awards; and
                          ``(ii) the public does not have 
                        access to information about the 
                        compensation of the senior executives 
                        of the entity through periodic reports 
                        filed under section 13(a) or 15(d) of 
                        the Securities Exchange Act of 1934 (15 
                        U.S.C. 78m(a), 78o(d)) or section 6104 
                        of the Internal Revenue Code of 
                        1986.''.
  (b) Regulations Required.--The Director of the Office of 
Management and Budget shall promulgate regulations to implement 
the amendment made by this chapter. Such regulations shall 
include a definition of ``total compensation'' that is 
consistent with regulations of the Securities and Exchange 
Commission at section 402 of part 229 of title 17 of the Code 
of Federal Regulations (or any subsequent regulation).

                     TITLE VII--MEDICAID PROVISIONS

  Sec. 7001. (a) Moratoria on Certain Medicaid Regulations.--
          (1) Extension of certain moratoria in public law 110-
        28.--Section 7002(a)(1) of the U.S. Troop Readiness, 
        Veterans' Care, Katrina Recovery, and Iraq 
        Accountability Appropriations Act, 2007 (Public Law 
        110-28) is amended--
                  (A) by striking ``prior to the date that is 1 
                year after the date of enactment of this Act'' 
                and inserting ``prior to April 1, 2009'';
                  (B) in subparagraph (A), by inserting after 
                ``Federal Regulations)'' the following: ``or in 
                the final regulation, relating to such parts, 
                published on May 29, 2007 (72 Federal Register 
                29748) and determined by the United States 
                District Court for the District of Columbia to 
                have been `improperly promulgated', Alameda 
                County Medical Center, et al., v. Leavitt, et 
                al., Civil Action No. 08-0422, Mem. at 4 
                (D.D.C. May 23, 2008)''; and
                  (C) in subparagraph (C), by inserting before 
                the period at the end the following: ``, 
                including the proposed regulation published on 
                May 23, 2007 (72 Federal Register 28930)''.
          (2) Extension of certain moratoria in public law 110-
        173.--Section 206 of the Medicare, Medicaid, and SCHIP 
        Extension Act of 2007 (Public Law 110-173) is amended--
                  (A) by striking ``June 30, 2008'' and 
                inserting ``April 1, 2009'';
                  (B) by inserting ``, including the proposed 
                regulation published on August 13, 2007 (72 
                Federal Register 45201),'' after 
                ``rehabilitation services''; and
                  (C) by inserting ``, including the final 
                regulation published on December 28, 2007 (72 
                Federal Register 73635),'' after ``school-based 
                transportation''.
          (3) Additional moratoria.--
                  (A) In general.--Notwithstanding any other 
                provision of law, the Secretary of Health and 
                Human Services shall not, prior to April 1, 
                2009, take any action (through promulgation of 
                regulation, issuance of regulatory guidance, 
                use of Federal payment audit procedures, or 
                other administrative action, policy, or 
                practice, including a Medical Assistance Manual 
                transmittal or letter to State Medicaid 
                directors) to impose any restrictions relating 
                to a provision described in subparagraph (B) or 
                (C) if such restrictions are more restrictive 
                in any aspect than those applied to the 
                respective provision as of the date specified 
                in subparagraph (D) for such provision.
                  (B) Portion of interim final regulation 
                relating to medicaid treatment of optional case 
                management services.--
                          (i) In general.--Subject to clause 
                        (ii), the provision described in this 
                        subparagraph is the interim final 
                        regulation relating to optional State 
                        plan case management services under the 
                        Medicaid program published on December 
                        4, 2007 (72 Federal Register 68077) in 
                        its entirety.
                          (ii) Exception.--The provision 
                        described in this subparagraph does not 
                        include the portion of such regulation 
                        as relates directly to implementing 
                        section 1915(g)(2)(A)(ii) of the Social 
                        Security Act, as amended by section 
                        6052 of the Deficit Reduction Act of 
                        2005 (Public Law 109-171), through the 
                        definition of case management services 
                        and targeted case management services 
                        contained in proposed section 440.169 
                        of title 42, Code of Federal 
                        Regulations, but only to the extent 
                        that such portion is not more 
                        restrictive than the policies set forth 
                        in the Dear State Medicaid Director 
                        letter on case management issued on 
                        January 19, 2001 (SMDL #01-013), and 
                        with respect to community transition 
                        case management, the Dear State 
                        Medicaid Director letter issued on July 
                        25, 2000 (Olmstead Update 3).
                  (C) Portion of proposed regulation relating 
                to medicaid allowable provider taxes.--
                          (i) In general.--Subject to clause 
                        (ii), the provision described in this 
                        subparagraph is the final regulation 
                        relating to health-care-related taxes 
                        under the Medicaid program published on 
                        February 22, 2008 (73 Federal Register 
                        9685) in its entirety.
                          (ii) Exception.--The provision 
                        described in this subparagraph does not 
                        include the portions of such regulation 
                        as relate to the following:
                                  (I) Reduction in threshold.--
                                The reduction from 6 percent to 
                                5.5 percent in the threshold 
                                applied under section 
                                433.68(f)(3)(i) of title 42, 
                                Code of Federal Regulations, 
                                for determining whether or not 
                                there is an indirect guarantee 
                                to hold a taxpayer harmless, as 
                                required to carry out section 
                                1903(w)(4)(C)(ii) of the Social 
                                Security Act, as added by 
                                section 403 of the Medicare 
                                Improvement and Extension Act 
                                of 2006 (division B of Public 
                                Law 109-432).
                                  (II) Change in definition of 
                                managed care.--The change in 
                                the definition of managed care 
                                as proposed in the revision of 
                                section 433.56(a)(8) of title 
                                42, Code of Federal 
                                Regulations, as required to 
                                carry out section 
                                1903(w)(7)(A)(viii) of the 
                                Social Security Act, as amended 
                                by section 6051 of the Deficit 
                                Reduction Act of 2005 (Public 
                                Law 109-171).
                  (D) Date specified.--The date specified in 
                this subparagraph for the provision described 
                in--
                          (i) subparagraph (B) is December 3, 
                        2007; or
                          (ii) subparagraph (C) is February 21, 
                        2008.
  (b) Funds to Reduce Medicaid Fraud and Abuse.--
          (1) In general.--For purposes of reducing fraud and 
        abuse in the Medicaid program under title XIX of the 
        Social Security Act--
                  (A) there is appropriated to the Office of 
                the Inspector General of the Department of 
                Health and Human Services, out of any money in 
                the Treasury not otherwise appropriated, 
                $25,000,000, for fiscal year 2009; and
                  (B) there is authorized to be appropriated to 
                such Office $25,000,000 for fiscal year 2010 
                and each subsequent fiscal year.
        Amounts appropriated under this section shall remain 
        available for expenditure until expended and shall be 
        in addition to any other amounts appropriated or made 
        available to such Office for such purposes with respect 
        to the Medicaid program.
          (2) Annual report.--Not later than September 30 of 
        2009 and of each subsequent year, the Inspector General 
        of the Department of Health and Human Services shall 
        submit to the Committees on Energy and Commerce and 
        Appropriations of the House of Representatives and the 
        Committees on Finance and Appropriations of the Senate 
        a report on the activities (and the results of such 
        activities) funded under paragraph (1) to reduce waste, 
        fraud, and abuse in the Medicaid program under title 
        XIX of the Social Security Act during the previous 12 
        month period, including the amount of funds 
        appropriated under such paragraph for each such 
        activity and an estimate of the savings to the Medicaid 
        program resulting from each such activity.
  (c) Study and Reports to Congress.--
          (1) Secretarial report identifying problems.--Not 
        later than January 1, 2009, the Secretary of Health and 
        Human Services shall submit to the Committee on Energy 
        and Commerce of the House of Representatives and the 
        Committee on Finance of the Senate a report that--
                  (A) outlines the specific problems the 
                Medicaid regulations referred to in the 
                amendments made by paragraphs (1) and (2) of 
                subsection (a) were intended to address;
                  (B) details how these regulations were 
                designed to address these specific problems; 
                and
                  (C) cites the legal authority for such 
                regulations.
          (2) Independent comprehensive study and report.--
                  (A) In general.--Not later than January 1, 
                2009, the Secretary of Health and Human 
                Services shall enter into a contract with an 
                independent organization for the purpose of--
                          (i) producing a comprehensive report 
                        on the prevalence of the problems 
                        outlined in the report submitted under 
                        paragraph (1);
                          (ii) identifying strategies in 
                        existence to address these problems; 
                        and
                          (iii) assessing the impact of each 
                        regulation referred to in such 
                        paragraph on each State and the 
                        District of Columbia.
                  (B) Additional matter.--The report under 
                subparagraph (A) shall also include--
                          (i) an identification of which claims 
                        for items and services (including 
                        administrative activities) under title 
                        XIX of the Social Security Act are not 
                        processed through systems described in 
                        section 1903(r) of such Act;
                          (ii) an examination of the reasons 
                        why these claims for such items and 
                        services are not processed through such 
                        systems; and
                          (iii) recommendations on actions by 
                        the Federal government and the States 
                        that can make claims for such items and 
                        services more accurate and complete 
                        consistent with such title.
                  (C) Deadline.--The report under subparagraph 
                (A) shall be submitted to the Committee on 
                Energy and Commerce of the House of 
                Representatives and the Committee on Finance of 
                the Senate not later than September 1, 2009.
                  (D) Cooperation of states.--If the Secretary 
                of Health and Human Services determines that a 
                State or the District of Columbia has not 
                cooperated with the independent organization 
                for purposes of the report under this 
                paragraph, the Secretary shall reduce the 
                amount paid to the State or District under 
                section 1903(a) of the Social Security Act (42 
                U.S.C. 1396b(a)) by $25,000 for each day on 
                which the Secretary determines such State or 
                District has not so cooperated. Such reduction 
                shall be made through a process that permits 
                the State or District to challenge the 
                Secretary's determination.
          (3) Funding.--
                  (A) In general.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated to the 
                Secretary without further appropriation, 
                $5,000,000 to carry out this subsection.
                  (B) Availability; amounts in addition to 
                other amounts appropriated for such 
                activities.--Amounts appropriated pursuant to 
                subparagraph (A) shall--
                          (i) remain available until expended; 
                        and
                          (ii) be in addition to any other 
                        amounts appropriated or made available 
                        to the Secretary of Health and Human 
                        Services with respect to the Medicaid 
                        program.
  (d) Asset Verification Through Access to Information Held by 
Financial Institutions.--
          (1) Addition of authority.--Title XIX of the Social 
        Security Act is amended by inserting after section 1939 
        the following new section:

 ``ASSET VERIFICATION THROUGH ACCESS TO INFORMATION HELD BY FINANCIAL 
                              INSTITUTIONS

  ``Sec. 1940.  (a) Implementation.--
          ``(1) In general.--Subject to the provisions of this 
        section, each State shall implement an asset 
        verification program described in subsection (b), for 
        purposes of determining or redetermining the 
        eligibility of an individual for medical assistance 
        under the State plan under this title.
          ``(2) Plan submittal.--In order to meet the 
        requirement of paragraph (1), each State shall--
                  ``(A) submit not later than a deadline 
                specified by the Secretary consistent with 
                paragraph (3), a State plan amendment under 
                this title that describes how the State intends 
                to implement the asset verification program; 
                and
                  ``(B) provide for implementation of such 
                program for eligibility determinations and 
                redeterminations made on or after 6 months 
                after the deadline established for submittal of 
                such plan amendment.
          ``(3) Phase-in.--
                  ``(A) In general.--
                          ``(i) Implementation in current asset 
                        verification demo states.--The 
                        Secretary shall require those States 
                        specified in subparagraph (C) (to which 
                        an asset verification program has been 
                        applied before the date of the 
                        enactment of this section) to implement 
                        an asset verification program under 
                        this subsection by the end of fiscal 
                        year 2009.
                          ``(ii) Implementation in other 
                        states.--The Secretary shall require 
                        other States to submit and implement an 
                        asset verification program under this 
                        subsection in such manner as is 
                        designed to result in the application 
                        of such programs, in the aggregate for 
                        all such other States, to enrollment of 
                        approximately, but not less than, the 
                        following percentage of enrollees, in 
                        the aggregate for all such other 
                        States, by the end of the fiscal year 
                        involved:
                                  ``(I) 12.5 percent by the end 
                                of fiscal year 2009.
                                  ``(II) 25 percent by the end 
                                of fiscal year 2010.
                                  ``(III) 50 percent by the end 
                                of fiscal year 2011.
                                  ``(IV) 75 percent by the end 
                                of fiscal year 2012.
                                  ``(V) 100 percent by the end 
                                of fiscal year 2013.
                  ``(B) Consideration.--In selecting States 
                under subparagraph (A)(ii), the Secretary shall 
                consult with the States involved and take into 
                account the feasibility of implementing asset 
                verification programs in each such State.
                  ``(C) States specified.--The States specified 
                in this subparagraph are California, New York, 
                and New Jersey.
                  ``(D) Construction.--Nothing in subparagraph 
                (A)(ii) shall be construed as preventing a 
                State from requesting, and the Secretary from 
                approving, the implementation of an asset 
                verification program in advance of the deadline 
                otherwise established under such subparagraph.
          ``(4) Exemption of territories.--This section shall 
        only apply to the 50 States and the District of 
        Columbia.
  ``(b) Asset Verification Program.--
          ``(1) In general.--For purposes of this section, an 
        asset verification program means a program described in 
        paragraph (2) under which a State--
                  ``(A) requires each applicant for, or 
                recipient of, medical assistance under the 
                State plan under this title on the basis of 
                being aged, blind, or disabled to provide 
                authorization by such applicant or recipient 
                (and any other person whose resources are 
                required by law to be disclosed to determine 
                the eligibility of the applicant or recipient 
                for such assistance) for the State to obtain 
                (subject to the cost reimbursement requirements 
                of section 1115(a) of the Right to Financial 
                Privacy Act but at no cost to the applicant or 
                recipient) from any financial institution 
                (within the meaning of section 1101(1) of such 
                Act) any financial record (within the meaning 
                of section 1101(2) of such Act) held by the 
                institution with respect to the applicant or 
                recipient (and such other person, as 
                applicable), whenever the State determines the 
                record is needed in connection with a 
                determination with respect to such eligibility 
                for (or the amount or extent of) such medical 
                assistance; and
                  ``(B) uses the authorization provided under 
                subparagraph (A) to verify the financial 
                resources of such applicant or recipient (and 
                such other person, as applicable), in order to 
                determine or redetermine the eligibility of 
                such applicant or recipient for medical 
                assistance under the State plan.
          ``(2) Program described.--A program described in this 
        paragraph is a program for verifying individual assets 
        in a manner consistent with the approach used by the 
        Commissioner of Social Security under section 
        1631(e)(1)(B)(ii).
  ``(c) Duration of Authorization.--Notwithstanding section 
1104(a)(1) of the Right to Financial Privacy Act, an 
authorization provided to a State under subsection (b)(1) shall 
remain effective until the earliest of--
          ``(1) the rendering of a final adverse decision on 
        the applicant's application for medical assistance 
        under the State's plan under this title;
          ``(2) the cessation of the recipient's eligibility 
        for such medical assistance; or
          ``(3) the express revocation by the applicant or 
        recipient (or such other person described in subsection 
        (b)(1), as applicable) of the authorization, in a 
        written notification to the State.
  ``(d) Treatment of Right to Financial Privacy Act 
Requirements.--
          ``(1) An authorization obtained by the State under 
        subsection (b)(1) shall be considered to meet the 
        requirements of the Right to Financial Privacy Act for 
        purposes of section 1103(a) of such Act, and need not 
        be furnished to the financial institution, 
        notwithstanding section 1104(a) of such Act.
          ``(2) The certification requirements of section 
        1103(b) of the Right to Financial Privacy Act shall not 
        apply to requests by the State pursuant to an 
        authorization provided under subsection (b)(1).
          ``(3) A request by the State pursuant to an 
        authorization provided under subsection (b)(1) is 
        deemed to meet the requirements of section 1104(a)(3) 
        of the Right to Financial Privacy Act and of section 
        1102 of such Act, relating to a reasonable description 
        of financial records.
  ``(e) Required Disclosure.--The State shall inform any person 
who provides authorization pursuant to subsection (b)(1)(A) of 
the duration and scope of the authorization.
  ``(f) Refusal or Revocation of Authorization.--If an 
applicant for, or recipient of, medical assistance under the 
State plan under this title (or such other person described in 
subsection (b)(1), as applicable) refuses to provide, or 
revokes, any authorization made by the applicant or recipient 
(or such other person, as applicable) under subsection 
(b)(1)(A) for the State to obtain from any financial 
institution any financial record, the State may, on that basis, 
determine that the applicant or recipient is ineligible for 
medical assistance.
  ``(g) Use of Contractor.--For purposes of implementing an 
asset verification program under this section, a State may 
select and enter into a contract with a public or private 
entity meeting such criteria and qualifications as the State 
determines appropriate, consistent with requirements in 
regulations relating to general contracting provisions and with 
section 1903(i)(2). In carrying out activities under such 
contract, such an entity shall be subject to the same 
requirements and limitations on use and disclosure of 
information as would apply if the State were to carry out such 
activities directly.
  ``(h) Technical Assistance.--The Secretary shall provide 
States with technical assistance to aid in implementation of an 
asset verification program under this section.
  ``(i) Reports.--A State implementing an asset verification 
program under this section shall furnish to the Secretary such 
reports concerning the program, at such times, in such format, 
and containing such information as the Secretary determines 
appropriate.
  ``(j) Treatment of Program Expenses.--Notwithstanding any 
other provision of law, reasonable expenses of States in 
carrying out the program under this section shall be treated, 
for purposes of section 1903(a), in the same manner as State 
expenditures specified in paragraph (7) of such section.''.
          (2) State plan requirements.--Section 1902(a) of such 
        Act (42 U.S.C. 1396a(a)) is amended--
                  (A) in paragraph (69) by striking ``and'' at 
                the end;
                  (B) in paragraph (70) by striking the period 
                at the end and inserting ``; and''; and
                  (C) by inserting after paragraph (70), as so 
                amended, the following new paragraph:
          ``(71) provide that the State will implement an asset 
        verification program as required under section 1940.''.
          (3) Withholding of federal matching payments for 
        noncompliant states.--Section 1903(i) of such Act (42 
        U.S.C. 1396b(i)) is amended--
                  (A) in paragraph (22) by striking ``or'' at 
                the end;
                  (B) in paragraph (23) by striking the period 
                at the end and inserting ``; or''; and
                  (C) by adding after paragraph (23) the 
                following new paragraph:
          ``(24) if a State is required to implement an asset 
        verification program under section 1940 and fails to 
        implement such program in accordance with such section, 
        with respect to amounts expended by such State for 
        medical assistance for individuals subject to asset 
        verification under such section, unless--
                  ``(A) the State demonstrates to the 
                Secretary's satisfaction that the State made a 
                good faith effort to comply;
                  ``(B) not later than 60 days after the date 
                of a finding that the State is in 
                noncompliance, the State submits to the 
                Secretary (and the Secretary approves) a 
                corrective action plan to remedy such 
                noncompliance; and
                  ``(C) not later than 12 months after the date 
                of such submission (and approval), the State 
                fulfills the terms of such corrective action 
                plan.''.
          (4) Repeal.--Section 4 of Public Law 110-90 is 
        repealed.
  Sec. 7002. (a) Medicare Improvement Fund.--Title XVIII of the 
Social Security Act (42 U.S.C. 1395 et seq.) is amended by 
adding at the end the following new section:

                      ``MEDICARE IMPROVEMENT FUND

  ``Sec. 1898.  (a) Establishment.--The Secretary shall 
establish under this title a Medicare Improvement Fund (in this 
section referred to as the `Fund') which shall be available to 
the Secretary to make improvements under the original fee-for-
service program under parts A and B for individuals entitled 
to, or enrolled for, benefits under part A or enrolled under 
part B.
  ``(b) Funding.--
          ``(1) In general.--There shall be available to the 
        Fund, for expenditures from the Fund for services 
        furnished during fiscal year 2014, $2,220,000,000.
          ``(2) Payment from trust funds.--The amount specified 
        under paragraph (1) shall be available to the Fund, as 
        expenditures are made from the Fund, from the Federal 
        Hospital Insurance Trust Fund and the Federal 
        Supplementary Medical Insurance Trust Fund in such 
        proportion as the Secretary determines appropriate.
          ``(3) Funding limitation.--Amounts in the Fund shall 
        be available in advance of appropriations but only if 
        the total amount obligated from the Fund does not 
        exceed the amount available to the Fund under paragraph 
        (1). The Secretary may obligate funds from the Fund 
        only if the Secretary determines (and the Chief Actuary 
        of the Centers for Medicare & Medicaid Services and the 
        appropriate budget officer certify) that there are 
        available in the Fund sufficient amounts to cover all 
        such obligations incurred consistent with the previous 
        sentence.''.
  (b) Medicaid Improvement Fund.-- Title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.), as amended by section 
7001(d), is further amended by adding at the end the following 
new section:

                      ``MEDICAID IMPROVEMENT FUND

  ``Sec. 1941.  (a) Establishment.--The Secretary shall 
establish under this title a Medicaid Improvement Fund (in this 
section referred to as the `Fund') which shall be available to 
the Secretary to improve the management of the Medicaid program 
by the Centers for Medicare & Medicaid Services, including 
oversight of contracts and contractors and evaluation of 
demonstration projects. Payments made for activities under this 
subsection shall be in addition to payments that would 
otherwise be made for such activities.
  ``(b) Funding.--
          ``(1) In general.--There shall be available to the 
        Fund, for expenditures from the Fund--
                  ``(A) for fiscal year 2014, $100,000,000; and
                  ``(B) for fiscal years 2015 through 2018, 
                $150,000,000.
          ``(2) Funding limitation.--Amounts in the Fund shall 
        be available in advance of appropriations but only if 
        the total amount obligated from the Fund does not 
        exceed the amount available to the Fund under paragraph 
        (1). The Secretary may obligate funds from the Fund 
        only if the Secretary determines (and the Chief Actuary 
        of the Centers for Medicare & Medicaid Services and the 
        appropriate budget officer certify) that there are 
        available in the Fund sufficient amounts to cover all 
        such obligations incurred consistent with the previous 
        sentence.''.
  (c) Adjustment to PAQI Fund.--Section 1848(l)(2) of the 
Social Security Act (42 U.S.C. 1395w-4(l)(2)), as amended by 
section 101(a)(2) of the Medicare, Medicaid, and SCHIP 
Extension Act of 2007 (Public Law 110-173), is amended--
          (1) in subparagraph (A)(i)--
                  (A) in subclause (III), by striking 
                ``$4,960,000,000'' and inserting 
                ``$4,670,000,000''; and
                  (B) by adding at the end the following new 
                subclause:
                                  ``(IV) For expenditures 
                                during 2014, an amount equal to 
                                $290,000,000.'';
          (2) in subparagraph (A)(ii), by adding at the end the 
        following new subclause:
                                  ``(IV) 2014.--The amount 
                                available for expenditures 
                                during 2014 shall only be 
                                available for an adjustment to 
                                the update of the conversion 
                                factor under subsection (d) for 
                                that year.''; and
          (3) in subparagraph (B)--
                  (A) in clause (ii), by striking ``and'' at 
                the end;
                  (B) in clause (iii), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                clause:
                          ``(iv) 2014 for payment with respect 
                        to physicians' services furnished 
                        during 2014.''.

                TITLE VIII--GENERAL PROVISIONS, THIS ACT

                         AVAILABILITY OF FUNDS

  Sec. 8001.  No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year unless expressly so provided herein.

                         EMERGENCY DESIGNATION

  Sec. 8002.  Each amount in each title of this Act is 
designated as an emergency requirement and necessary to meet 
emergency needs pursuant to section 204(a) of S. Con. Res. 21 
(110th Congress) and section 301(b)(2) of S. Con. Res. 70 
(110th Congress), the concurrent resolutions on the budget for 
fiscal years 2008 and 2009.

                      REDUCTION IN DEFENSE AMOUNTS

  Sec. 8003.  Notwithstanding any other provision of this Act, 
the total amount appropriated in chapter 1 of title IX of this 
Act under the headings ``Procurement'', ``Research, 
Development, Test and Evaluation'', and ``Defense Working 
Capital Funds'' is hereby reduced by $3,577,845,000. Such 
reduction shall be applied proportionally to each appropriation 
account under such headings, and to each program, project, and 
activity within each such appropriation account.

                        JOINT BASING INITIATIVES

  Sec. 8004.  Section 9310 of this Act is amended by inserting 
``, except funds deposited in the Department of Defense Base 
Closure Account 2005,'' after ``None of the funds available to 
the Department of Defense''.

                         DEFENSE HEALTH PROGRAM

  Sec. 8005.  Amounts provided for ``Defense Health Program'' 
in Public Law 110-28 for Post Traumatic Stress Disorder and 
Traumatic Brain Injury (TBI) within operation and maintenance 
which remain available for obligation shall be made available 
for psychological health and traumatic brain injury.

                              SHORT TITLE

  Sec. 8006.  This Act may be cited as the ``Supplemental 
Appropriations Act, 2008''.
    Page 60 of the Senate engrossed amendment (of September 6, 
2007) to H.R. 2642, strike lines 1 through 3.

                                  
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