69–008 

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. 


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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. 


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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. 


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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 


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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, DefenseWide’’, $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 


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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: 

‘‘§ 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.’’. 


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(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. 


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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. 


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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. 


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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 


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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. 


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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. 


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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 


wwoods2 on PRODPC68 with REPORTS
14 

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 

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ance 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 


wwoods2 on PRODPC68 with REPORTS
16 

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 


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17 

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 


wwoods2 on PRODPC68 with REPORTS
18 

(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 miliVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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tary 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 


wwoods2 on PRODPC68 with REPORTS
20 

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 proVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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21 

cedures 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. 


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(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. 


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23 

(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 


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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. 


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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. 


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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. 


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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 


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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 conVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00028 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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sequences 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. 


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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 


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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 RegVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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ister 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 comVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00032 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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pensation 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. 


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(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 


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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 


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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’’. 


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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. 


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38 

‘‘3322. Bar to duplication of educational assistance benefits. 

‘‘3323. Administration. 

‘‘3324. Allocation of administration and costs. 

‘‘SUBCHAPTER I—DEFINITIONS 

‘‘§ 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 

‘‘§ 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 


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39 

‘‘(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 


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40 

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 


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‘‘(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). 

‘‘§ 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 


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42 

‘‘(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). 

‘‘§ 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 


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43 

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), 


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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: 


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‘‘(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. 


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‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 


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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. 

‘‘§ 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 proVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00047 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

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gram 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). 

‘‘§ 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 instituVerDate Aug 31 2005 03:33 Jun 20, 2008 Jkt 069008 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR720.XXX HR720

wwoods2 on PRODPC68 with REPORTS
49 

tion 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. 

‘‘§ 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 


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50 

‘‘(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 


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51 

‘‘(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—


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52 

‘‘(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 

‘‘§ 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). 


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53 

‘‘§ 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. 

‘‘§ 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 


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54 

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-inservice 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. 

‘‘§ 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’’. 


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55 

(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). 


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56 

(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). 


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57 

(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. 


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58 

(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: 


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59 

‘‘(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: 

‘‘§ 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).’’; 


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60 

(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: 

‘‘§ 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 


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61 

‘‘(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—


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62 

‘‘(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 


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63 

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: 

‘‘§ 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—


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64 

‘‘(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. 


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65 

‘‘(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 


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66 

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 


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67 

(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 


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68 

(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 


wwoods2 on PRODPC68 with REPORTS
69 

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; 


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70 

(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 


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71 

(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. 


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72 

‘‘(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.—


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73 

‘‘(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: 


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74 

‘‘(71) provide that the State will implement an asset 

verification program as required under section 1940.’’. (3) WITHHOLDING OF FEDERAL MATCHING PAYMENTS FOR NON- COMPLIANT 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.’’. 


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75 

(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.’’. 


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76 

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. 

Æ 


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