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[House Report 110-636]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-636

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

 
 PROVIDING FOR CONSIDERATION OF 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

                                _______
                                

May 14, 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. 1197]

    The Committee on Rules, having had under consideration 
House Resolution 1197, by a record vote of 7 to 2, 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 
amendment to 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 
concur in the Senate amendment with each of the three 
amendments 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 two hours 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 among 
each of the three House amendments. These votes will occur in 
the order in which the amendments are printed in this report 
notwithstanding the fact that any amendment adopted will be 
engrossed in its respective place in the Senate amendment.
    Notwithstanding the operation of the previous question, the 
Chair may postpone consideration of the motion to a time 
designated by the Speaker. Finally, the rule permits the 
chairman of the Committee on Appropriations to insert in the 
Congressional Record dated May 15, 2008, such material as he 
may deem explanatory of the motion.

                         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) and of clause 5(a) of rule XXI (prohibiting an 
amendment in the House from carrying a tax or tariff measure 
during consideration of a bill not reported by a committee 
having jurisdiction over such measures).

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 497

    Date: May 14, 2008.
    Measure: Consideration of Senate amendment to H.R. 2642.
    Motion by: Mr. Dreier.
    Summary of motion: To grant an open rule for consideration 
of the Senate amendments to the bill H.R. 2642, the Military 
Construction and Veterans Affairs Appropriations Act of 2008.
    Results: Defeated 2-8.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Hastings (WA)--Yea; Slaughter--Nay.

Rules Committee record vote No. 498

    Date: May 14, 2008.
    Measure: Consideration of Senate amendment to H.R. 2642.
    Motion by: Mr. Dreier.
    Summary of motion: To amend the rule to make in order an 
amendment to the motion to provide that the House concur in the 
Senate amendment with the text of H.R. 6026, the Clean Global 
War on Terror Supplemental Appropriations Act of 2008.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; 
Hastings (WA)--Yea; Slaughter--Nay.

Rules Committee record vote No. 499

    Date: May 14, 2008.
    Measure: Consideration of Senate amendment to H.R. 2642.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To amend the rule to add as a new 
section at the end of the resolution as follows: That upon 
adoption of this resolution, H.R. 2638 (FY2008 Homeland 
Security Appropriations bill), and its accompanying papers are 
laid on the table.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; 
Hastings (WA)--Yea; Slaughter--Nay.

Rules Committee record vote No. 500

    Date: May 14, 2008.
    Measure: Consideration of Senate amendment to H.R. 2642.
    Motion by: Mr. McGovern.
    Summary of motion: To report the rule.
    Results: Adopted 7-2.
    Vote by Members: McGovern--Yea; Hastings (FL)--Yea; 
Matsui--Yea; Welch--Yea; Arcuri--Yea; Sutton--Yea; Dreier--Nay; 
Hastings (WA)--Nay; Slaughter--Yea.

 SUMMARY OF THE HOUSE AMENDMENTS TO THE SENATE AMENDMENT TO H.R. 2642 
                      MADE IN ORDER UNDER THE RULE

Amendment #1

    The amendment provides funding for the Department of 
Defense in the amount of $96.6 billion for FY 2008 and $65.9 
billion for FY 2009, totaling $162.5 billion.

Amendment #2

    The amendment requires that troops begin redeployment from 
Iraq within 30 days with a goal of completing withdrawal of 
combat troops by December of 2009. It requires that any 
agreement between the United States and the Government of Iraq 
committing U.S. forces be specifically authorized by Congress. 
It requires that U.S. reconstruction aid for Iraq be matched 
dollar-for-dollar by the Iraqi Government. It requires the 
President to reach an agreement with Iraq to subsidize fuel 
costs for U.S. Armed Forces operating in Iraq so that our 
military pays what Iraqis pay. It requires that troops meet the 
Pentagon's definition of ``combat ready'' before they can be 
deployed to Iraq and prohibits troops from being deployed in 
Iraq longer than recommended under Pentagon guidelines.
    The amendment expands current law to make all contractors 
working in war zones subject to prosecution for offenses that 
would otherwise be in violation of U.S. law; extends the 
statute of limitations for fraud cases during wartime; and 
amends the federal criminal code to prohibit profiteering and 
fraud involving contractors overseas. It prohibits the 
establishment of permanent bases in Iraq. It prohibits 
interrogation techniques not authorized in the Army Field 
Manual.

Amendment #3

    The amendment expands the education benefits veterans 
receive under the GI bill and would impose a tax of 0.47% on 
modified adjusted gross incomes above $500,000 ($1,000,000 for 
joint incomes), a slight increase in the highest tax bracket, 
to offset the cost of the expansion. It extends unemployment 
benefits for workers who have exhausted their benefits by up to 
13 weeks in every state as well as an additional 13 weeks in 
states with high unemployment rates.
    It places a moratorium on seven Medicaid regulations that 
would cut services to seniors, families, and those with 
disabilities as well as cut payments to safety net providers. 
These costs are offset through amendments to Medicaid asset 
verification provisions and Medicare physician assistance and 
quality initiative funds.
    The amendment provides $5.923 billion for the State 
Department, USAID and International Food Assistance, including 
$1.865 billion for international food and disaster assistance 
and $675 million for refugee assistance.
    The amendment provides $4.6 billion for military 
construction, including $939 million for BRAC, over $210 
million for military child care centers, and $956 million for 
military hospitals. It provides $5.8 billion for efforts to 
strengthen New Orleans levees in FY 2009. It provides $178 
million to the Bureau of Prisons for rising incarceration costs 
and a growing inmate population. It provides $210 million to 
address decennial census cost overruns. Finally, it requires 
companies that receive more than 80 percent of their revenue 
from the federal government to disclose the names and salaries 
of their top officers, and requires federal contractors to 
report violations of federal criminal law and over-payments on 
contracts over $5 million.

                    TEXT OF AMENDMENTS MADE IN ORDER

         Text of House Amendment #1 to the Senate Amendment to

                 H.R. 2642 Made in Order Under the Rule

    Page 60 of the Senate engrossed amendment, strike lines 1 
through 3 and insert the following:

                       TITLE IX--DEFENSE MATTERS

                 CHAPTER 1--SUPPLEMENTAL APPROPRIATIONS

                          FOR FISCAL YEAR 2008

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For an additional amount for ``Military Personnel, Army'', 
$11,807,655,000.

                        Military Personnel, Navy

    For an additional amount for ``Military Personnel, Navy'', 
$866,753,000.

                    Military Personnel, Marine Corps

    For an additional amount for ``Military Personnel, Marine 
Corps'', $1,820,571,000.

                     Military Personnel, Air Force

    For an additional amount for ``Military Personnel, Air 
Force'', $1,286,153,000.

                        Reserve Personnel, Army

    For an additional amount for ``Reserve Personnel, Army'', 
$304,200,000.

                        Reserve Personnel, Navy

    For an additional amount for ``Reserve Personnel, Navy'', 
$72,800,000.

                    Reserve Personnel, Marine Corps

    For an additional amount for ``Reserve Personnel, Marine 
Corps'', $16,720,000.

                      Reserve Personnel, Air Force

    For an additional amount for ``Reserve Personnel, Air 
Force'', $5,000,000.

                     National Guard Personnel, Army

    For an additional amount for ``National Guard Personnel, 
Army'', $1,369,747,000.

                  National Guard Personnel, Air Force

    For an additional amount for ``National Guard Personnel, 
Air Force'', $4,000,000.

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

    For an additional amount for ``Operation and Maintenance, 
Army'', $16,343,512,000.

                    Operation and Maintenance, Navy

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Operation and Maintenance, 
Navy'', $2,952,864,000: Provided, That up to $112,607,000 shall 
be transferred to the Coast Guard ``Operating Expenses'' 
account.

                Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, 
Marine Corps'', $159,900,000.

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, 
Air Force'', $5,922,520,000.

                Operation and Maintenance, Defense-Wide

    For an additional amount for ``Operation and Maintenance, 
Defense-Wide'', $3,387,562,000, of which--
          (1) not to exceed $25,000,000 may be used for the 
        Combatant Commander Initiative Fund, to be used in 
        support of Operation Iraqi Freedom and Operation 
        Enduring Freedom; and
          (2) not to exceed $800,000,000, to remain available 
        until expended, may be used for payments to reimburse 
        key cooperating nations, for logistical, military, and 
        other support provided to United States military 
        operations, notwithstanding any other provision of law: 
        Provided, That these funds may be used for the purpose 
        of providing specialized training and procuring 
        supplies and specialized equipment and providing such 
        supplies and loaning such equipment on a non-
        reimbursable basis to coalition forces supporting 
        United States military operations in Iraq and 
        Afghanistan: Provided further, That such payments may 
        be made in such amounts as the Secretary of Defense, 
        with the concurrence of the Secretary of State, and in 
        consultation with the Director of the Office of 
        Management and Budget, may determine, in his 
        discretion, based on documentation determined by the 
        Secretary of Defense to adequately account for the 
        support provided, and such determination is final and 
        conclusive upon the accounting officers of the United 
        States, and 15 days following notification to the 
        appropriate congressional committees: Provided further, 
        That the Secretary of Defense shall provide quarterly 
        reports to the congressional defense committees on the 
        use of funds provided in this paragraph:
Provided further, That of the amount available under this 
heading for the Defense Contract Management Agency, $52,000,000 
shall remain available until September 30, 2009.

                Operation and Maintenance, Army Reserve

    For an additional amount for ``Operation and Maintenance, 
Army Reserve'', $164,839,000.

                Operation and Maintenance, Navy Reserve

    For an additional amount for ``Operation and Maintenance, 
Navy Reserve'', $109,876,000.

            Operation and Maintenance, Marine Corps Reserve

    For an additional amount for ``Operation and Maintenance, 
Marine Corps Reserve'', $70,256,000.

              Operation and Maintenance, Air Force Reserve

    For an additional amount for ``Operation and Maintenance, 
Air Force Reserve'', $165,994,000.

             Operation and Maintenance, Army National Guard

    For an additional amount for ``Operation and Maintenance, 
Army National Guard'', $685,644,000.

             Operation and Maintenance, Air National Guard

    For an additional amount for ``Operation and Maintenance, 
Air National Guard'', $287,369,000.

                           Iraq Freedom Fund

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Iraq Freedom Fund'', 
$50,000,000, to remain available for transfer until September 
30, 2009, notwithstanding any other provision of law, only for 
the redevelopment of the Iraqi industrial sector by 
identifying, and providing assistance to, factories and other 
industrial facilities that are best situated to resume 
operations quickly and reemploy the Iraqi workforce: Provided, 
That the Secretary of Defense shall, not fewer than 15 days 
prior to making transfers from this appropriation, notify the 
congressional defense committees in writing of the details of 
any such transfer.

                    Afghanistan Security Forces Fund

    For an additional amount for ``Afghanistan Security Forces 
Fund'', $1,400,000,000, to remain available until September 30, 
2009.

                       Iraq Security Forces Fund

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Iraq Security Forces Fund'', 
$1,500,000,000, to remain available until September 30, 2009: 
Provided, That such funds shall be available to the Secretary 
of Defense, notwithstanding any other provision of law, for the 
purpose of allowing the Commander, Multi-National Security 
Transition Command--Iraq, or the Secretary's designee, to 
provide assistance, with the concurrence of the Secretary of 
State, to the security forces of Iraq, including the provision 
of equipment, supplies, services, training, facility and 
infrastructure repair, renovation, and construction, and 
funding: Provided further, That none of the assistance provided 
under this heading in the form of funds may be utilized for the 
provision of salaries, wages, or bonuses to personnel of the 
Iraqi Security Forces: Provided further, That the authority to 
provide assistance under this heading is in addition to any 
other authority to provide assistance to foreign nations: 
Provided further, That the Secretary of Defense may transfer 
such funds to appropriations for military personnel; operation 
and maintenance; Overseas Humanitarian, Disaster, and Civic 
Aid; procurement; research, development, test and evaluation; 
and defense working capital funds to accomplish the purposes 
provided herein: Provided further, That this transfer authority 
is in addition to any other transfer authority available to the 
Department of Defense: Provided further, That upon a 
determination that all or part of the funds so transferred from 
this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this 
appropriation: Provided further, That contributions of funds 
for the purposes provided herein from any person, foreign 
government, or international organization may be credited to 
this Fund, and used for such purposes: Provided further, That 
the Secretary shall notify the congressional defense committees 
in writing upon the receipt and upon the transfer of any 
contribution delineating the sources and amounts of the funds 
received and the specific use of such contributions: Provided 
further, That the Secretary of Defense shall, not fewer than 15 
days prior to making transfers from this appropriation account, 
notify the congressional defense committees in writing of the 
details of any such transfer: Provided further, That the 
Secretary shall submit a report no later than 30 days after the 
end of each fiscal quarter to the congressional defense 
committees summarizing the details of the transfer of funds 
from this appropriation.

                              PROCUREMENT

                       Aircraft Procurement, Army

    For an additional amount for ``Aircraft Procurement, 
Army'', $954,111,000, to remain available for obligation until 
September 30, 2010.

                       Missile Procurement, Army

    For an additional amount for ``Missile Procurement, Army'', 
$561,656,000, to remain available for obligation until 
September 30, 2010.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For an additional amount for ``Procurement of Weapons and 
Tracked Combat Vehicles, Army'', $5,393,471,000, to remain 
available for obligation until September 30, 2010.

                    Procurement of Ammunition, Army

    For an additional amount for ``Procurement of Ammunition, 
Army'', $344,900,000, to remain available for obligation until 
September 30, 2010.

                        Other Procurement, Army

    For an additional amount for ``Other Procurement, Army'', 
$15,967,340,000, to remain available for obligation until 
September 30, 2010.

                       Aircraft Procurement, Navy

    For an additional amount for ``Aircraft Procurement, 
Navy'', $3,411,254,000, to remain available for obligation 
until September 30, 2010.

                       Weapons Procurement, Navy

    For an additional amount for ``Weapons Procurement, Navy'', 
$317,456,000, to remain available for obligation until 
September 30, 2010.

            Procurement of Ammunition, Navy and Marine Corps

    For an additional amount for ``Procurement of Ammunition, 
Navy and Marine Corps'', $304,945,000, to remain available for 
obligation until September 30, 2010.

                        Other Procurement, Navy

    For an additional amount for ``Other Procurement, Navy'', 
$1,260,135,000, to remain available for obligation until 
September 30, 2010.

                       Procurement, Marine Corps

    For an additional amount for ``Procurement, Marine Corps'', 
$2,153,390,000, to remain available for obligation until 
September 30, 2010.

                    Aircraft Procurement, Air Force

    For an additional amount for ``Aircraft Procurement, Air 
Force'', $7,028,563,000, to remain available for obligation 
until September 30, 2010.

                     Missile Procurement, Air Force

    For an additional amount for ``Missile Procurement, Air 
Force'', $66,943,000, to remain available for obligation until 
September 30, 2010.

                  Procurement of Ammunition, Air Force

    For an additional amount for ``Procurement of Ammunition, 
Air Force'', $205,455,000, to remain available for obligation 
until September 30, 2010.

                      Other Procurement, Air Force

    For an additional amount for ``Other Procurement, Air 
Force'', $1,903,167,000, to remain available for obligation 
until September 30, 2010.

                       Procurement, Defense-Wide

    For an additional amount for ``Procurement, Defense-Wide'', 
$408,209,000, to remain available for obligation until 
September 30, 2010.

                  National Guard and Reserve Equipment

    For an additional amount for ``National Guard and Reserve 
Equipment'', $750,000,000, to remain available for obligation 
until September 30, 2010: Provided, That the Chiefs of the 
National Guard and Reserve components shall, prior to the 
expenditure of funds, and not later than 30 days after the 
enactment of this Act, individually submit to the congressional 
defense committees an equipment modernization priority 
assessment with a detailed plan for the expenditure of funds 
for their respective National Guard and Reserve components.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For an additional amount for ``Research, Development, Test 
and Evaluation, Army'', $162,958,000, to remain available until 
September 30, 2009.

            Research, Development, Test and Evaluation, Navy

    For an additional amount for ``Research, Development, Test 
and Evaluation, Navy'', $366,110,000, to remain available until 
September 30, 2009.

         Research, Development, Test and Evaluation, Air Force

    For an additional amount for ``Research, Development, Test 
and Evaluation, Air Force'', $278,427,000, to remain available 
until September 30, 2009.

        Research, Development, Test and Evaluation, Defense-Wide

    For an additional amount for ``Research, Development, Test 
and Evaluation, Defense-Wide'', $816,598,000, to remain 
available until September 30, 2009.

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For an additional amount for ``Defense Working Capital 
Funds'', $1,837,450,000, to remain available for obligation 
until expended.

                     National Defense Sealift Fund

    For an additional amount for ``National Defense Sealift 
Fund'', $5,110,000, to remain available for obligation until 
expended.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$1,363,864,000, of which $907,064,000 shall be for operation 
and maintenance; of which $91,900,000 is for procurement to 
remain available until September 30, 2010; of which 
$364,900,000 shall be for research, development, test and 
evaluation, to remain available until September 30, 2009: 
Provided, That in addition to amounts otherwise contained in 
this paragraph, $75,000,000 is hereby appropriated to the 
``Defense Health Program'' for operation and maintenance for 
psychological health and traumatic brain injury, to remain 
available until September 30, 2009.

         Drug Interdiction and Counter-Drug Activities, Defense

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Drug Interdiction and 
Counter-Drug Activities, Defense'', $65,317,000, to remain 
available until September 30, 2009.

                    Office of the Inspector General

    For an additional amount for ``Office of the Inspector 
General'', $6,394,000, of which $2,000,000 shall be for 
research, development, test and evaluation, to remain available 
until September 30, 2009.

                    GENERAL PROVISIONS, THIS CHAPTER

    Sec. 9101. Appropriations provided in this chapter are 
available for obligation until September 30, 2008, unless 
otherwise provided in this chapter.
    Sec. 9102. Notwithstanding any other provision of law, 
funds made available in this chapter are in addition to amounts 
appropriated or otherwise made available for the Department of 
Defense for fiscal year 2008.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 9103. Upon the determination of the Secretary of 
Defense that such action is necessary in the national interest, 
the Secretary may transfer between appropriations up to 
$2,500,000,000 of the funds made available to the Department of 
Defense in this chapter: Provided, That the Secretary shall 
notify the Congress promptly of each transfer made pursuant to 
the authority in this section: Provided further, That the 
authority provided in this section is in addition to any other 
transfer authority available to the Department of Defense and 
is subject to the same terms and conditions as the authority 
provided in section 8005 of Public Law 110-116, except for the 
fourth proviso.
    Sec. 9104. (a) From funds made available for operation and 
maintenance in this chapter to the Department of Defense, not 
to exceed $1,026,841,000 may be used, notwithstanding any other 
provision of law, to fund the Commander's Emergency Response 
Program, for the purpose of enabling military commanders in 
Iraq, Afghanistan, and the Philippines to respond to urgent 
humanitarian relief and reconstruction requirements within 
their areas of responsibility by carrying out programs that 
will immediately assist the Iraqi, Afghan, and Filipino people.
    (b) Not later than 15 days after the end of each fiscal 
year quarter, the Secretary of Defense shall submit to the 
congressional defense committees a report regarding the source 
of funds and the allocation and use of funds during that 
quarter that were made available pursuant to the authority 
provided in this section or under any other provision of law 
for the purposes of the programs under subsection (a).

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 9105. During fiscal year 2008, the Secretary of 
Defense may transfer not to exceed $6,500,000 of the amounts in 
or credited to the Defense Cooperation Account, pursuant to 10 
U.S.C. 2608, to such appropriations or funds of the Department 
of Defense as the Secretary shall determine for use consistent 
with the purposes for which such funds were contributed and 
accepted: Provided, That such amounts shall be available for 
the same time period as the appropriation to which transferred: 
Provided further, That the Secretary shall report to the 
Congress all transfers made pursuant to this authority.
    Sec. 9106. Of the amount appropriated by this chapter under 
the heading ``Drug Interdiction and Counter-Drug Activities, 
Defense,'' not to exceed $20,000,000 may be used for the 
provision of support for counter-drug activities of the 
Governments of Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, and Turkmenistan, as specified in section 1033 of 
the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85, as amended by Public Laws 106-398, 108-136, 
109-364, and 110-181): Provided, That such support shall be in 
addition to support provided under any other provision of the 
law.
    Sec. 9107. Amounts provided in this chapter for operations 
in Iraq and Afghanistan may be used by the Department of 
Defense for the purchase of up to 20 heavy and light armored 
vehicles for force protection purposes, notwithstanding price 
or other limitations specified elsewhere in the Department of 
Defense Appropriations Act, 2008 (Public Law 110-116), or any 
other provision of law: Provided, That notwithstanding any 
other provision of law, funds provided in Public Law 110-116 
and Public Law 110-161 under the heading ``Other Procurement, 
Navy'' may be used for the purchase of 21 vehicles required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$255,000 per vehicle: Provided further, That the Secretary of 
Defense shall submit a report in writing no later than 30 days 
after the end of each fiscal quarter notifying the 
congressional defense committees of any purchase described in 
this section, including cost, purposes, and quantities of 
vehicles purchased.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 9108. Section 8122(c) of Public Law 110-116 is amended 
by adding at the end the following:
    ``(4) Upon a determination that all or part of the funds 
transferred under paragraph (1) are not necessary to accomplish 
the purposes specified in subsection (b), such amounts may be 
transferred back to the `Mine Resistant Ambush Protected 
Vehicle Fund'.''.
    Sec. 9109. Notwithstanding any other provision of law, not 
to exceed $150,000,000 of funds made available in this chapter 
may be obligated to conduct or support a program to build the 
capacity of a foreign country's national military forces in 
order for that country to conduct counterterrorist operations 
or participate in or support military and stability operations 
in which the U.S. Armed Forces are a participant: Provided, 
That funds available pursuant to the authority in this section 
shall be subject to the same restrictions, limitations, and 
reporting requirements as funds available pursuant to section 
1206 of Public Law 109-163 as amended.

CHAPTER 2--BRIDGE FUND SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2009

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For an additional amount for ``Military Personnel, Army'', 
$839,000,000.

                        Military Personnel, Navy

    For an additional amount for ``Military Personnel, Navy'', 
$75,000,000.

                    Military Personnel, Marine Corps

    For an additional amount for ``Military Personnel, Marine 
Corps'', $55,000,000.

                     Military Personnel, Air Force

    For an additional amount for ``Military Personnel, Air 
Force'', $75,000,000.

                     National Guard Personnel, Army

    For an additional amount for ``National Guard Personnel, 
Army'', $150,000,000.

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

    For an additional amount for ``Operation and Maintenance, 
Army'', $37,300,000,000.

                     Operation and Maintenance Navy

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Operation and Maintenance, 
Navy'', $3,500,000,000: Provided, That up to $112,000,000 shall 
be transferred to the Coast Guard ``Operating Expenses'' 
account.

                Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, 
Marine Corps'', $2,900,000,000.

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, 
Air Force'', $5,000,000,000.

                Operation and Maintenance, Defense-Wide

    For an additional amount for ``Operation and Maintenance, 
Defense-Wide'', $2,648,569,000, of which not to exceed 
$200,000,000, to remain available until expended, may be used 
for payments to reimburse key cooperating nations, for 
logistical, military, and other support provided to United 
States military operations, notwithstanding any other provision 
of law: Provided, That these funds may be used for the purpose 
of providing specialized training and procuring supplies and 
specialized equipment and providing such supplies and loaning 
such equipment on a nonreimbursable basis to coalition forces 
supporting United States military operations in Iraq and 
Afghanistan: Provided further, That such payments may be made 
in such amounts as the Secretary of Defense, with the 
concurrence of the Secretary of State, and in consultation with 
the Director of the Office of Management and Budget, may 
determine, in his discretion, based on documentation determined 
by the Secretary of Defense to adequately account for the 
support provided, and such determination is final and 
conclusive upon the accounting officers of the United States, 
and 15 days following notification to the appropriate 
congressional committees: Provided further, That the Secretary 
of Defense shall provide quarterly reports to the congressional 
defense committees on the use of funds provided in this 
paragraph.

                Operation and Maintenance, Army Reserve

    For an additional amount for ``Operation and Maintenance, 
Army Reserve'', $79,291,000.

                Operation and Maintenance, Navy Reserve

    For an additional amount for ``Operation and Maintenance, 
Navy Reserve'', $42,490,000.

            Operation and Maintenance, Marine Corps Reserve

    For an additional amount for ``Operation and Maintenance, 
Marine Corps Reserve'', $47,076,000.

              Operation and Maintenance, Air Force Reserve

    For an additional amount for ``Operation and Maintenance, 
Air Force Reserve'', $12,376,000.

             Operation and Maintenance, Army National Guard

    For an additional amount for ``Operation and Maintenance, 
Army National Guard'', $333,540,000.

             Operation and Maintenance, Air National Guard

    For an additional amount for ``Operation and Maintenance, 
Air National Guard'', $52,667,000.

                    Afghanistan Security Forces Fund

    For an additional amount for ``Afghanistan Security Forces 
Fund'', $2,000,000,000, to remain available until September 30, 
2009.

                       Iraq Security Forces Fund

                     (INCLUDING TRANSFER OF FUNDS)

    For ``Iraq Security Forces Fund'', $1,000,000,000, to 
remain available until September 30, 2009: Provided, That such 
funds shall be available to the Secretary of Defense, 
notwithstanding any other provision of law, for the purpose of 
allowing the Commander, Multi-National Security Transition 
Command-Iraq, or the Secretary's designee, to provide 
assistance, with the concurrence of the Secretary of State, to 
the security forces of Iraq, including the provision of 
equipment, supplies, services, training, facility and 
infrastructure repair, renovation, and construction, and 
funding: Provided further, That none of the assistance provided 
under this heading in the form of funds may be utilized for the 
provision of salaries, wages, or bonuses to personnel of the 
Iraqi Security Forces: Provided further, That the authority to 
provide assistance under this heading is in addition to any 
other authority to provide assistance to foreign nations: 
Provided further, That the Secretary of Defense may transfer 
such funds to appropriations for military personnel; operation 
and maintenance; Overseas Humanitarian, Disaster, and Civic 
Aid; procurement; research, development, test and evaluation; 
and defense working capital funds to accomplish the purposes 
provided herein: Provided further, That this transfer authority 
is in addition to any other transfer authority available to the 
Department of Defense: Provided further, That upon a 
determination that all or part of the funds so transferred from 
this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this 
appropriation: Provided further, That contributions of funds 
for the purposes provided herein from any person, foreign 
government, or international organization may be credited to 
this Fund, and used for such purposes: Provided further, That 
the Secretary shall notify the congressional defense committees 
in writing upon the receipt and upon the transfer of any 
contribution delineating the sources and amounts of the funds 
received and the specific use of such contributions: Provided 
further, That the Secretary of Defense shall, not fewer than 15 
days prior to making transfers from this appropriation account, 
notify the congressional defense committees in writing of the 
details of any such transfer: Provided further, That the 
Secretary shall submit a report no later than 30 days after the 
end of each fiscal quarter to the congressional defense 
committees summarizing the details of the transfer of funds 
from this appropriation.

                              PROCUREMENT

                       Aircraft Procurement, Army

    For an additional amount for ``Aircraft Procurement, 
Army'', $84,000,000 to remain available for obligation until 
September 30, 2011.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For an additional amount for ``Procurement of Weapons and 
Tracked Combat Vehicles, Army'', $822,674,000, to remain 
available for obligation until September 30, 2011.

                    Procurement of Ammunition, Army

    For an additional amount for ``Procurement of Ammunition, 
Army'', $46,500,000, to remain available for obligation until 
September 30, 2011.

                        Other Procurement, Army

    For an additional amount for ``Other Procurement, Army'', 
$1,009,050,000, to remain available for obligation until 
September 30, 2011.

                        Other Procurement, Navy

    For an additional amount for ``Other Procurement, Navy'', 
$27,948,000, to remain available for obligation until September 
30, 2011.

                       Procurement, Marine Corps

    For an additional amount for ``Procurement, Marine Corps'', 
$565,425,000, to remain available for obligation until 
September 30, 2011.

                    Aircraft Procurement, Air Force

    For an additional amount for ``Aircraft Procurement, Air 
Force'', $201,842,000, to remain available for obligation until 
September 30, 2011.

                      Other Procurement, Air Force

    For an additional amount for ``Other Procurement, Air 
Force'', $1,500,644,000, to remain available for obligation 
until September 30, 2011.

                       Procurement, Defense-Wide

    For an additional amount for ``Procurement, Defense-Wide'', 
$177,237,000, to remain available for obligation until 
September 30, 2011.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Navy

    For an additional amount for ``Research, Development, Test 
and Evaluation, Navy'', $113,228,000, to remain available until 
September 30, 2010.

         Research, Development, Test and Evaluation, Air force

    For an additional amount for ``Research, Development, Test 
and Evaluation, Air Force'', $72,041,000, to remain available 
until September 30, 2010.

        Research, Development, Test and Evaluation, Defense-Wide

    For an additional amount for ``Research, Development, Test 
and Evaluation, Defense-Wide'', $202,559,000, to remain 
available until September 30, 2010.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$1,100,000,000 for operation and maintenance.

         Drug Interdiction and Counter-Drug Activities, Defense

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Drug Interdiction and 
Counter-Drug Activities, Defense'', $188,000,000.

             Joint Improvised Explosive Device Defeat Fund

                     (INCLUDING TRANSFER OF FUNDS)

    For an additional amount for ``Joint Improvised Explosive 
Device Defeat Fund'', $2,000,000,000 to remain available until 
September 30, 2011: Provided, That such funds shall be 
available to the Secretary of Defense, notwithstanding any 
other provision of law, for the purpose of allowing the 
Director of the Joint Improvised Explosive Device Defeat 
Organization to investigate, develop and provide equipment, 
supplies, services, training, facilities, personnel and funds 
to assist United States forces in the defeat of improvised 
explosive devices: Provided further, That within 60 days of the 
enactment of this Act, a plan for the intended management and 
use of the amounts provided under this heading shall be 
submitted to the congressional defense committees: Provided 
further, That the Secretary of Defense shall submit a report 
not later than 60 days after the end of each fiscal quarter to 
the congressional defense committees providing assessments of 
the evolving threats, individual service requirements to 
counter the threats, the current strategy for predeployment 
training of members of the Armed Forces on improvised explosive 
devices, and details on the execution of the Fund: Provided 
further, That the Secretary of Defense may transfer funds 
provided herein to appropriations for operation and 
maintenance; procurement; research, development, test and 
evaluation; and defense working capital funds to accomplish the 
purpose provided herein: Provided further, That this transfer 
authority is in addition to any other transfer authority 
available to the Department of Defense: Provided further, That 
the Secretary of Defense shall, not fewer than 15 days prior to 
making transfers from this appropriation, notify the 
congressional defense committees in writing of the details of 
any such transfer.

                    GENERAL PROVISIONS, THIS CHAPTER

    Sec. 9201. Appropriations provided in this chapter are not 
available for obligation until October 1, 2008.
    Sec. 9202. Appropriations provided in this chapter are 
available for obligation until September 30, 2009, unless 
otherwise provided in this chapter.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 9203. Upon the determination of the Secretary of 
Defense that such action is necessary in the national interest, 
the Secretary may transfer between appropriations up to 
$4,000,000,000 of the funds made available to the Department of 
Defense in this chapter: Provided, That the Secretary shall 
notify the Congress promptly of each transfer made pursuant to 
the authority in this section: Provided further, That the 
authority provided in this section is in addition to any other 
transfer authority available to the Department of Defense and 
is subject to the same terms and conditions as the authority 
provided in section 8005 of Public Law 110-116, except for the 
fourth proviso.
    Sec. 9204. (a) Not later than December 5, 2008 and every 90 
days thereafter through the end of fiscal year 2009, the 
Secretary of Defense, in consultation with the Secretary of 
State, shall set forth in a report to Congress a comprehensive 
set of performance indicators and measures for progress toward 
military and political stability in Iraq.
    (b) The report shall include performance standards and 
goals for security, economic, and security force training 
objectives in Iraq together with a notional timetable for 
achieving these goals.
    (c) In specific, the report requires, at a minimum, the 
following:
          (1) With respect to stability and security in Iraq, 
        the following:
                  (A) Key measures of political stability, 
                including the important political milestones 
                that must be achieved over the next several 
                years.
                  (B) The primary indicators of a stable 
                security environment in Iraq, such as number of 
                engagements per day, numbers of trained Iraqi 
                forces, trends relating to numbers and types of 
                ethnic and religious-based hostile encounters, 
                and progress made in the transition of 
                responsibility for the security of Iraqi 
                provinces to the Iraqi Security Forces under 
                the Provincial Iraqi Control (PIC) process.
                  (C) An assessment of the estimated strength 
                of the insurgency in Iraq and the extent to 
                which it is composed of non-Iraqi fighters.
                  (D) A description of all militias operating 
                in Iraq, including the number, size, equipment 
                strength, military effectiveness, sources of 
                support, legal status, and efforts to disarm or 
                reintegrate each militia.
                  (E) Key indicators of economic activity that 
                should be considered the most important for 
                determining the prospects of stability in Iraq, 
                including--
                          (i) unemployment levels;
                          (ii) electricity, water, and oil 
                        production rates; and
                          (iii) hunger and poverty levels.
                  (F) The most recent annual budget for the 
                Government of Iraq, including a description of 
                amounts budgeted for support of Iraqi security 
                and police forces and an assessment of how 
                planned funding will impact the training, 
                equipping and overall readiness of those 
                forces.
                  (G) The criteria the Administration will use 
                to determine when it is safe to begin 
                withdrawing United States forces from Iraq.
          (2) With respect to the training and performance of 
        security forces in Iraq, the following:
                  (A) The training provided Iraqi military and 
                other Ministry of Defense forces and the 
                equipment used by such forces.
                  (B) Key criteria for assessing the 
                capabilities and readiness of the Iraqi 
                military and other Ministry of Defense forces, 
                goals for achieving certain capability and 
                readiness levels (as well as for recruiting, 
                training, and equipping these forces), and the 
                milestones and notional timetable for achieving 
                these goals.
                  (C) The operational readiness status of the 
                Iraqi military forces, including the type, 
                number, size, and organizational structure of 
                Iraqi battalions that are--
                          (i) capable of conducting 
                        counterinsurgency operations 
                        independently without any support from 
                        Coalition Forces;
                          (ii) capable of conducting 
                        counterinsurgency operations with the 
                        support of United States or coalition 
                        forces; or
                          (iii) not ready to conduct 
                        counterinsurgency operations.
                  (D) The amount and type of support provided 
                by Coalition Forces to the Iraqi Security 
                Forces at each level of operational readiness.
                  (E) The number of Iraqi battalions in the 
                Iraqi Army currently conducting operations and 
                the type of operations being conducted.
                  (F) The rates of absenteeism in the Iraqi 
                military forces and the extent to which 
                insurgents have infiltrated such forces.
                  (G) The training provided Iraqi police and 
                other Ministry of Interior forces and the 
                equipment used by such forces.
                  (H) The level and effectiveness of the Iraqi 
                Security Forces under the Ministry of Defense 
                in provinces where the United States has 
                formally transferred responsibility for the 
                security of the province to the Iraqi Security 
                Forces under the Provincial Iraqi Control (PIC) 
                process.
                  (I) Key criteria for assessing the 
                capabilities and readiness of the Iraqi police 
                and other Ministry of Interior forces, goals 
                for achieving certain capability and readiness 
                levels (as well as for recruiting, training, 
                and equipping), and the milestones and notional 
                timetable for achieving these goals, 
                including--
                          (i) the number of police recruits 
                        that have received classroom training 
                        and the duration of such instruction;
                          (ii) the number of veteran police 
                        officers who have received classroom 
                        instruction and the duration of such 
                        instruction;
                          (iii) the number of police candidates 
                        screened by the Iraqi Police Screening 
                        Service, the number of candidates 
                        derived from other entry procedures, 
                        and the success rates of those groups 
                        of candidates;
                          (iv) the number of Iraqi police 
                        forces who have received field training 
                        by international police trainers and 
                        the duration of such instruction;
                          (v) attrition rates and measures of 
                        absenteeism and infiltration by 
                        insurgents; and
                          (vi) the level and effectiveness of 
                        the Iraqi Police and other Ministry of 
                        Interior Forces in provinces where the 
                        United States has formally transferred 
                        responsibility for the security of the 
                        province to the Iraqi Security Forces 
                        under the Provincial Iraqi Control 
                        (PIC) process.
                  (J) The estimated total number of Iraqi 
                battalions needed for the Iraqi security forces 
                to perform duties now being undertaken by 
                coalition forces, including defending the 
                borders of Iraq and providing adequate levels 
                of law and order throughout Iraq.
                  (K) The effectiveness of the Iraqi military 
                and police officer cadres and the chain of 
                command.
                  (L) The number of United States and coalition 
                advisors needed to support the Iraqi security 
                forces and associated ministries.
                  (M) An assessment, in a classified annex if 
                necessary, of United States military 
                requirements, including planned force 
                rotations, through the end of calendar year 
                2009.
    Sec. 9205. (a)  Report by Secretary of Defense.--Not later 
than 30 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report that contains individual transition 
readiness assessments by unit of Iraq and Afghan security 
forces. The Secretary of Defense shall submit to the 
congressional defense committees updates of the report required 
by this subsection every 90 days after the date of the 
submission of the report until October 1, 2009. The report and 
updates of the report required by this subsection shall be 
submitted in classified form.
    (b) Report by OMB.--(1) The Director of the Office of 
Management and Budget, in consultation with the Secretary of 
Defense; the Commander, Multi-National Security Transition 
Command--Iraq; and the Commander, Combined Security Transition 
Command--Afghanistan, shall submit to the congressional defense 
committees not later than 120 days after the date of the 
enactment of this Act and every 90 days thereafter a report on 
the proposed use of all funds under each of the headings ``Iraq 
Security Forces Fund'' and ``Afghanistan Security Forces Fund'' 
on a project-by-project basis, for which the obligation of 
funds is anticipated during the three-month period from such 
date, including estimates by the commanders referred to in this 
paragraph of the costs required to complete each such project.
    (2) The report required by this subsection shall include 
the following:
          (A) The use of all funds on a project-by-project 
        basis for which funds appropriated under the headings 
        referred to in paragraph (1) were obligated prior to 
        the submission of the report, including estimates by 
        the commanders referred to in paragraph (1) of the 
        costs to complete each project.
          (B) The use of all funds on a project-by-project 
        basis for which funds were appropriated under the 
        headings referred to in paragraph (1) in prior 
        appropriations Acts, or for which funds were made 
        available by transfer, reprogramming, or allocation 
        from other headings in prior appropriations Acts, 
        including estimates by the commanders referred to in 
        paragraph (1) of the costs to complete each project.
          (C) An estimated total cost to train and equip the 
        Iraq and Afghan security forces, disaggregated by major 
        program and sub-elements by force, arrayed by fiscal 
        year.
    (c) Notification.--The Secretary of Defense shall notify 
the congressional defense committees of any proposed new 
projects or transfers of funds between sub-activity groups in 
excess of $15,000,000 using funds appropriated by this Act 
under the headings ``Iraq Security Forces Fund'' and 
``Afghanistan Security Forces Fund''.
    Sec. 9206. Funds available to the Department of Defense for 
operation and maintenance provided in this chapter may be used, 
notwithstanding any other provision of law, to provide 
supplies, services, transportation, including airlift and 
sealift, and other logistical support to coalition forces 
supporting military and stability operations in Iraq and 
Afghanistan: Provided, That the Secretary of Defense shall 
provide quarterly reports to the congressional defense 
committees regarding support provided under this section.
    Sec. 9207. Supervision and administration costs associated 
with a construction project funded with appropriations 
available for operation and maintenance, ``Afghanistan Security 
Forces Fund'' or ``Iraq Security Forces Fund'' provided in this 
chapter, and executed in direct support of the Global War on 
Terrorism only in Iraq and Afghanistan, may be obligated at the 
time a construction contract is awarded: Provided, That for the 
purpose of this section, supervision and administration costs 
include all in-house Government costs.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 9208. (a) Notwithstanding any other provision of law, 
and in addition to amounts otherwise made available by this 
Act, there is appropriated $1,700,000,000 for the ``Mine 
Resistant Ambush Protected Vehicle Fund'', to remain available 
until September 30, 2009.
    (b) The funds provided by subsection (a) shall be available 
to the Secretary of Defense to continue technological research 
and development and upgrades, to procure Mine Resistant Ambush 
Protected vehicles and associated support equipment, and to 
sustain, transport, and field Mine Resistant Ambush Protected 
vehicles.
    (c)(1) The Secretary of Defense shall transfer funds 
provided by subsection (a) to appropriations for operation and 
maintenance; procurement; and research, development, test and 
evaluation to accomplish the purposes specified in subsection 
(b). Such transferred funds shall be merged with and be 
available for the same purposes and for the same time period as 
the appropriation to which they are transferred.
    (2) The transfer authority provided by this subsection 
shall be in addition to any other transfer authority available 
to the Department of Defense.
    (3) The Secretary of Defense shall, not less than 15 days 
prior to making any transfer under this subsection, notify the 
congressional defense committees in writing of the details of 
the transfer.
    Sec. 9209. For the purposes of this Act, the term 
``congressional defense committees'' means the Armed Services 
Committee of the House of Representatives, the Armed Services 
Committee of the Senate, the Subcommittee on Defense of the 
Committee on Appropriations of the Senate, and the Subcommittee 
on Defense of the Committee on Appropriations of the House of 
Representatives.

               CHAPTER 3--GENERAL PROVISIONS, THIS TITLE

    Sec. 9301. Each amount in this title is designated as an 
emergency requirement and necessary to meet emergency needs 
pursuant to subsections (a) and (b) of section 204 of S. Con. 
Res. 21 (110th Congress), the concurrent resolution on the 
budget for fiscal year 2008.
    Sec. 9302. Funds appropriated by this title, or made 
available by the transfer of funds in this title, for 
intelligence activities are deemed to be specifically 
authorized by the Congress for purposes of section 504(a)(1) of 
the National Security Act of 1947 (50 U.S.C. 414(a)(1)).
    Sec. 9303. None of the funds made available in this Act may 
be used in contravention of the following laws enacted or 
regulations promulgated to implement the United Nations 
Convention Against Torture and Other Cruel, Inhuman or 
Degrading Treatment or Punishment (done at New York on December 
10, 1984):
          (1) Section 2340A of title 18, United States Code.
          (2) Section 2242 of the Foreign Affairs Reform and 
        Restructuring Act of 1998 (division G of Public Law 
        105-277; 112 Stat. 2681-822; 8 U.S.C. 1231 note) and 
        regulations prescribed thereto, including regulations 
        under part 208 of title 8, Code of Federal Regulations, 
        and part 95 of title 22, Code of Federal Regulations.
          (3) Sections 1002 and 1003 of the Department of 
        Defense, Emergency Supplemental Appropriations to 
        Address Hurricanes in the Gulf of Mexico, and Pandemic 
        Influenza Act, 2006 (Public Law 109-148).
    Sec. 9304. (a) Report Required.--Not later than 120 days 
after the date of the enactment of this Act, the Secretary of 
Defense, the Secretary of State, and the Secretary of Homeland 
Security, in coordination with the Chairman of the Joint Chiefs 
of Staff and the Director of National Intelligence, shall 
jointly submit to Congress a report setting forth the global 
strategy of the United States to combat and defeat al Qaeda and 
its affiliates.
    (b) Elements of Strategy.--The strategy set forth in the 
report required under subsection (a) shall include the 
following elements:
          (1) An analysis of the global threat posed by al 
        Qaeda and its affiliates, including an assessment of 
        the relative threat posed in particular regions or 
        countries.
          (2) Recommendations regarding the distribution and 
        deployment of United States military, intelligence, 
        diplomatic, and other assets to meet the relative 
        regional and country-specific threats described in 
        paragraph (1).
          (3) Recommendations to ensure that the global 
        deployment of United States military personnel and 
        equipment best meet the threat identified and described 
        in paragraph (1) and:
                  (A) does not undermine the military readiness 
                or homeland security of the United States;
                  (B) ensures adequate time between military 
                deployments for rest and training; and
                  (C) does not require further extensions of 
                military deployments to the extent practicable.
    (c) Classified Annex.--The report required by subsection 
(a) shall be submitted in unclassified form, but shall include 
a classified annex.
    Sec. 9305. None of the funds provided in this title may be 
used to finance programs or activities denied by Congress in 
fiscal years 2007 or 2008 appropriations to the Department of 
Defense or to initiate a procurement or research, development, 
test and evaluation new start program without prior written 
notification to the congressional defense committees.
    Sec. 9306. Section 1002(c)(2) of the National Defense 
Authorization Act, Fiscal Year 2008 (Public Law 110-181) is 
amended by striking ``$362,159,000'' and inserting 
``$435,259,000''.
    Sec. 9307. None of the funds appropriated or otherwise made 
available by this title may be obligated or expended to provide 
award fees to any defense contractor contrary to the provisions 
of section 814 of the National Defense Authorization Act, 
Fiscal Year 2007 (Public Law 109-364).

                             (RESCISSIONS)

    Sec. 9308. (a) Of the funds made available for ``Defense 
Health Program'' in Public Law 110-28, $75,000,000 is 
rescinded.
    (b) Of the funds made available for ``Joint Improvised 
Explosive Device Defeat Fund'' in Division L of the 
Consolidated Appropriations Act, 2008 (Public Law 110-161), 
$71,531,000 is rescinded.
    Sec. 9309. Of the funds appropriated in the U.S. Troop 
Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Public Law 110-28) 
which remain available for obligation under the ``Iraq Freedom 
Fund'', $150,000,000 is only for the Joint Rapid Acquisition 
Cell, and $10,000,000 is only for the transportation of fallen 
service members.
    Sec. 9310. Funds available in this title which are 
available to the Department of Defense for operation and 
maintenance may be used to purchase items having an investment 
unit cost of not more than $250,000: Provided, That upon 
determination by the Secretary of Defense that such action is 
necessary to meet the operational requirements of a Commander 
of a Combatant Command engaged in contingency operations 
overseas, such funds may be used to purchase items having an 
investment item unit cost of not more than $500,000.

Text of House Amendment #2 to the Senate Amendment to H.R. 2642 Made in 
                          Order Under the Rule

  Page 60 of the Senate engrossed amendment, after line 3, 
insert the following:

              TITLE X--POLICY REGARDING OPERATIONS IN IRAQ

      SENSE OF CONGRESS REGARDING UNITED STATES MILITARY PERSONNEL

  Sec. 10001. It is the sense of the Congress that the 
performance of United States military personnel should be 
commended, their courage and sacrifice have been exceptional, 
and when they come home, their service should be recognized 
appropriately.

         UNITS DEPLOYED FOR COMBAT TO BE FULLY MISSION CAPABLE

  Sec. 10002. (a) The Congress finds that it is the policy of 
the Department of Defense that units should not be deployed for 
combat unless they are rated ``fully mission capable''.
  (b) None of the funds made available in this or any other Act 
may be used to deploy any unit of the Armed Forces to Iraq 
unless the President has certified in writing to the Committees 
on Appropriations and the Committees on Armed Services of the 
House of Representatives and the Senate at least 15 days in 
advance of the deployment that the unit is fully mission 
capable in advance of entry into Iraq.
  (c) For purposes of subsection (b), the term ``fully mission 
capable'' means capable of performing assigned mission 
essential tasks to the prescribed standards under the 
conditions expected in the theater of operation, consistent 
with the guidelines set forth in the DoD Directive 7730.65, 
Subject: Department of Defense Readiness Reporting System; the 
Interim Force Allocation Guidance to the Global Force 
Management Board, dated February 6, 2008; and Army Regulation 
220-1, Subject: Unit Status Reporting, dated December 19, 2006.
  (d) The President, by certifying in writing to the Committees 
on Appropriations and the Committees on Armed Services of the 
House of Representatives and the Senate that the deployment to 
Iraq of a unit that is not assessed mission capable is required 
for reasons of national security and by submitting along with 
the certification a report in classified and unclassified form 
detailing the particular reason or reasons why the unit's 
deployment is necessary despite the unit commander's assessment 
that the unit is not mission capable, may waive the limitations 
prescribed in subsection (b) on a unit-by-unit basis.

                    TIME LIMIT ON COMBAT DEPLOYMENTS

  Sec. 10003. (a) The Congress finds that it is the policy of 
the Department of Defense that Army, Army Reserve, and National 
Guard units should not be deployed for combat beyond 365 days 
and that Marine Corps and Marine Corps Reserve units should not 
be deployed for combat beyond 210 days.
  (b) None of the funds made available in this or any other Act 
may be obligated or expended to initiate the development of, 
continue the development of, or execute any order that has the 
effect of extending the deployment for Operation Iraqi Freedom 
of--
          (1) any unit of the Army, Army Reserve, or Army 
        National Guard beyond 365 days; or
          (2) any unit of the Marine Corps or Marine Corps 
        Reserve beyond 210 days.
  (c) The limitation prescribed in subsection (b) shall not be 
construed to require force levels in Iraq to be decreased below 
the total United States force levels in Iraq as of January 9, 
2007.
  (d) The President may waive the limitations prescribed in 
subsection (b) on a unit-by-unit basis if the President 
certifies in writing to the Committees on Appropriations and 
the Committees on Armed Services of the House of 
Representatives and the Senate that the extension of a unit's 
deployment in Iraq beyond the period applicable to the unit 
under such subsection is required for reasons of national 
security. The certification shall include a report, in 
classified and unclassified form, detailing the particular 
reason or reasons why the unit's extended deployment is 
necessary.

                 DWELL TIME BETWEEN COMBAT DEPLOYMENTS

  Sec. 10004. (a) The Congress finds that it is the policy of 
the Department of Defense that an Army, Army Reserve, or 
National Guard unit should not be redeployed for combat if the 
unit has been deployed within the previous 365 consecutive days 
and that a Marine Corps or Marine Corps Reserve unit should not 
be redeployed for combat if the unit has been deployed within 
the previous 210 days.
  (b) None of the funds made available in this or any other Act 
may be obligated or expended to initiate the development of, 
continue the development of, or execute any order that has the 
effect of deploying for Operation Iraqi Freedom of--
          (1) any unit of the Army, Army Reserve, or Army 
        National Guard if such unit has been deployed within 
        the previous 365 consecutive days; or
          (2) any unit of the Marine Corps or Marine Corps 
        Reserve if such unit has been deployed within the 
        previous 210 consecutive days.
  (c) The limitation prescribed in subsection (b) shall not be 
construed to require force levels in Iraq to be decreased below 
the total United States force levels in Iraq as of January 9, 
2007.
  (d) The President may waive the limitations prescribed in 
subsection (b) on a unit-by-unit basis if the President 
certifies in writing to the Committees on Appropriations and 
the Committees on Armed Services of the House of 
Representatives and the Senate that the redeployment of a unit 
to Iraq in advance of the expiration of the period applicable 
to the unit under such subsection is required for reasons of 
national security. The certification shall include a report, in 
classified and unclassified form, detailing the particular 
reason or reasons why the unit's early redeployment is 
necessary.

                 LIMITATION ON INTERROGATION TECHNIQUES

  Sec. 10005. (a) No individual in the custody or under the 
effective control of an element of the intelligence community 
or instrumentality thereof, regardless of nationality or 
physical location, shall be subject to any treatment or 
technique of interrogation not authorized by the United States 
Army Field Manual on Human Intelligence Collector Operations.
  (b) In this section, the term ``instrumentality'', with 
respect to an element of the intelligence community, means a 
contractor or subcontractor at any tier of the element of the 
intelligence community.

     REGISTRATION WITH THE INTERNATIONAL COMMITTEE OF THE RED CROSS

  Sec. 10006. (a) None of the funds appropriated or otherwise 
made available in this or any other Act may be used to detain 
any individual who is in the custody or under the effective 
control of an element of the intelligence community or an 
instrumentality thereof unless the International Committee of 
the Red Cross is provided notification of the detention of and 
access to such person in a timely manner and consistent with 
the practices of the Armed Forces of the United States.
  (b) For purposes of this section, the term 
``instrumentality'', with respect to an element of the 
intelligence community, means a contractor or subcontractor at 
any tier of the element of the intelligence community.
  (c) Nothing in this section shall be construed to create or 
otherwise imply the authority to detain, or to limit or 
otherwise affect any other rights or obligations which may 
arise under the Geneva Conventions or other laws, or to state 
all of the situations under which notification to and access 
for the International Committee of the Red Cross is required or 
allowed.

                 PROHIBITION OF PERMANENT BASES IN IRAQ

  Sec. 10007. None of the funds appropriated or otherwise made 
available in this or any other Act may be obligated or expended 
by the United States Government for a purpose as follows:
          (1) To establish any military installation or base 
        for the purpose of providing for the permanent 
        stationing of United States Armed Forces in Iraq.
          (2) To exercise United States control over any oil 
        resource of Iraq.

      LIMITATION ON DEFENSE AGREEMENTS WITH THE GOVERNMENT OF IRAQ

  Sec. 10008. (a) None of the funds appropriated or otherwise 
made available in this or any other Act may be used to 
negotiate, enter into, or implement any agreement with the 
Government of Iraq that includes security assurances for mutual 
defense, unless the agreement--
          (1) is in the form of a treaty requiring the advice 
        and consent of the Senate (or is intended to take that 
        form in the case of an agreement under negotiation); or
          (2) is specifically authorized by a law enacted after 
        the date of enactment of this Act.
  (b) For purposes of this section, an agreement shall be 
considered to include security assurances for mutual defense if 
it includes provisions addressing any of the following:
          (1) A binding commitment to deploy United States 
        Armed Forces in defense of Iraq, or of any government 
        or faction in Iraq, against any foreign or domestic 
        threat.
          (2) The number of United States Armed Forces 
        personnel to be deployed to, or stationed in, Iraq.
          (3) The mission of United States Armed Forces 
        deployed to Iraq.
          (4) The duration of the presence of United States 
        Armed Forces in Iraq.

  PROHIBITION ON AGREEMENTS SUBJECTING ARMED FORCES TO IRAQI CRIMINAL 
                              JURISDICTION

  Sec. 10009. None of the funds appropriated or otherwise made 
available in this or any other Act may be used to negotiate, 
enter into, or implement an agreement with the Government of 
Iraq that would subject members of the Armed Forces of the 
United States to the jurisdiction of Iraq criminal courts or 
punishment under Iraq law.

         REQUIREMENT FOR MATCHING FUNDS FROM GOVERNMENT OF IRAQ

  Sec. 10010. (a) Notwithstanding any other provision of law, 
funds appropriated or otherwise made available in this or any 
other Act for assistance for Iraq, including training, capacity 
building, and construction and repair of infrastructure, shall 
be available only to the extent that the Government of Iraq 
matches such assistance on a dollar-for-dollar basis.
  (b) subsection (a) shall not apply to--
          (1) grants and cooperative agreements for programs to 
        promote democracy and human rights;
          (2) the Community Action Program and other direct 
        assistance to non-governmental organizations;
          (3) humanitarian demining;
          (4) assistance for refugees, internally displaced 
        persons, and civilian victims of military operations;
          (5) intelligence or intelligence-related activities; 
        or
          (6) projects with an estimated cost of less than 
        $750,000 undertaken through the Commander's Emergency 
        Response Program.
  (c) The Secretary of State and the Secretary of Defense shall 
certify to the Committees on Appropriations of the House of 
Representatives and Senate, prior to the initial obligation by 
their respective Departments of funds covered by the limitation 
in subsection (a), that the Government of Iraq has committed to 
obligate matching funds on a dollar-for-dollar basis. The 
Secretary of State shall submit a report to the Committees on 
Appropriations not later than September 30, 2009 detailing the 
amounts of funds obligated and expended by the Government of 
Iraq to meet the requirements of this section.
  (d) Not later than 45 days after enactment of this Act, the 
Secretary of State shall submit a report to the Committees on 
Appropriations detailing the amounts provided by the Government 
of Iraq since June 30, 2004, to assist Iraqi refugees in Syria, 
Jordan, and elsewhere, and the amount of such assistance the 
Government of Iraq plans to provide in fiscal year 2008. The 
Secretary shall work expeditiously with the Government of Iraq 
to establish an account within its annual budget sufficient to, 
at a minimum, match United States contributions on a dollar-
for-dollar basis to organizations and programs for the purpose 
of assisting Iraqi refugees.
  (e) As part of the report required by section 609 of division 
L of the Consolidated Appropriations Act, 2008 (Public Law 110-
161), the Secretary of Defense shall submit to Congress a 
report on the most recent annual budget for the Government of 
Iraq, including--
          (1) a description of amounts budgeted for support of 
        Iraqi security and police forces and an assessment of 
        how planned funding will impact the training, equipping 
        and overall readiness of those forces;
          (2) an assessment of the capacity of the Government 
        of Iraq to implement the budget as planned, including 
        reports on year-to-year spend rates, if available; and
          (3) a description of any budget surplus or deficit, 
        if applicable.

             PARTIAL REIMBURSEMENT FROM IRAQ FOR FUEL COSTS

  Sec. 10011. (a) None of the funds made available in this Act 
under the heading ``Operation and Maintenance, Defense-Wide'' 
for the Office of the Secretary of Defense or Washington 
Headquarters Services may be obligated or expended until the 
agreement described in subsection (b)(1) is complete and the 
report required by subsection (b)(2) has been transmitted to 
Congress, except that the limitation in this subsection may be 
waived if the President determines and certifies to the 
Committees on Appropriations of the House of Representatives 
and Senate that such waiver is in the national security 
interests of the United States.
  (b) Not later than 90 days after enactment of this Act, the 
President shall--
          (1) complete an agreement with the Government of Iraq 
        to subsidize fuel costs for United States Armed Forces 
        operating in Iraq so the price of fuel per gallon to 
        those forces is equal to the discounted price per 
        gallon at which the Government of Iraq is providing 
        fuel for domestic Iraqi consumption; and
          (2) transmit a report to the Committees on 
        Appropriations on the details and terms of that 
        agreement.
  (c) Amounts received from the Government of Iraq under an 
agreement described in subsection (b)(1) shall be credited to 
the appropriations or funds that incurred obligations for the 
fuel costs being subsidized, as determined by the Secretary of 
Defense.

      TIMETABLE FOR REDEPLOYMENT OF UNITED STATES FORCES FROM IRAQ

  Sec. 10012. (a) Notwithstanding any other provision of law, 
funds appropriated or otherwise made available in this Act may 
be used to plan and execute a safe and orderly redeployment of 
United States Armed Forces from Iraq.
  (b) Within 30 days after enactment of this Act, the President 
shall commence an immediate and orderly redeployment of United 
States Armed Forces from Iraq, with a goal of completing such 
redeployment within 18 months. The President shall endeavor to 
begin such redeployment with units of the Armed Forces that 
have been deployed in excess of 365 days, except to the extent 
those units are needed to provide for the safe withdrawal of 
other units of the Armed Forces or to protect United States and 
Coalition personnel and infrastructure.
  (c) After completion of the redeployment required by 
subsection (b), members of the United States Armed Forces may 
be deployed to, or maintained in, Iraq only to the extent 
necessary to carry out the following missions:
          (1) Protecting the diplomatic facilities, Armed 
        Forces, and citizens of the United States in Iraq.
          (2) Conducting limited training of, equipping, and 
        providing logistical and intelligence support to, Iraqi 
        security forces.
          (3) Engaging in targeted counterterrorism operations 
        against al-Qaeda, groups affiliated with al-Qaeda, and 
        other terrorist organizations in Iraq.
  (d) Not later than July 1, 2008, and every 90 days 
thereafter, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth the 
following:
          (1) The current plan for and the status of the 
        reduction of United States Armed Forces in Iraq and the 
        transition of the Armed Forces in Iraq to a limited 
        presence whose missions do not exceed the missions 
        specified in subsection (c), including the associated 
        force reductions and adjustments and expectations with 
        respect to timelines and the force levels anticipated 
        to perform those missions.
          (2) A comprehensive current description of efforts to 
        prepare for the reduction and transition of United 
        States Armed Forces in Iraq in accordance with this 
        section and to limit any destabilizing consequences of 
        such reduction and transition, including a description 
        of efforts to work with the United Nations and 
        countries in the region toward that objective.
  (e) Not later than 45 days after enactment of this Act, the 
Secretary of State shall provide to the Committees on 
Appropriations of the House of Representatives and Senate a 
strategy for civilian-led post-conflict stabilization and 
reconstruction assistance for Iraq. The strategy (which may be 
provided in classified form if necessary) shall include--
          (1) the plans and timetable for transfer of all 
        responsibility for United States post-conflict 
        stabilization and reconstruction assistance from the 
        Department of Defense to the Department of State and 
        the United States Agency for International Development; 
        and
          (2) the staff, security and resource requirements for 
        United States diplomatic efforts and assistance 
        programs in Iraq.

     TITLE XI--REFORMS RELATED TO WAR PROFITEERING AND CONTRACTORS

        CHAPTER 1--ADJUSTMENT OF WARTIME STATUTE OF LIMITATIONS

              ADJUSTMENT OF WARTIME STATUTE OF LIMITATIONS

  Sec. 11101. Section 3287 of title 18, United States Code, is 
amended--
          (1) by inserting ``or Congress has enacted a specific 
        authorization for the use of the Armed Forces, as 
        described in section 5(b) of the War Powers Resolution 
        (50 U.S.C. 1544(b)),'' after ``is at war'';
          (2) by inserting ``or directly connected with or 
        related to the authorized use of the Armed Forces'' 
        after ``prosecution of the war'';
          (3) by striking ``three years'' and inserting ``5 
        years'';
          (4) by striking ``proclaimed by the President'' and 
        inserting ``proclaimed by a Presidential proclamation, 
        with notice to Congress,''; and
          (5) by adding at the end the following: ``For 
        purposes of applying such definitions in this section, 
        the term `war' includes a specific authorization for 
        the use of the Armed Forces, as described in section 
        5(b) of the War Powers Resolution (50 U.S.C. 
        1544(b)).''.

                 CHAPTER 2--WAR PROFITEERING AND FRAUD

                       WAR PROFITEERING AND FRAUD

  Sec. 11201. (a) Prohibition on War Profiteering.--
          (1) In general.--Chapter 47 of title 18, United 
        States Code, is amended by adding at the end the 
        following:

``Sec. 1041. War profiteering and fraud

  ``(a) Prohibition.--Whoever, in any matter involving a 
contract with, or the provision of goods or services to, the 
United States or a provisional authority, in connection with a 
mission of the United States Government overseas, knowingly--
          ``(1)(A) executes or attempts to execute a scheme or 
        artifice to defraud the United States or that 
        authority; or
          ``(B) materially overvalues any good or service with 
        the intent to defraud the United States or that 
        authority;
        shall be fined not more than $1,000,000 or imprisoned 
        not more than 20 years, or both; or
          ``(2) in connection with the contract or the 
        provision of those goods or services--
                  ``(A) falsifies, conceals, or covers up by 
                any trick, scheme, or device a material fact;
                  ``(B) makes any materially false, fictitious, 
                or fraudulent statements or representations; or
                  ``(C) makes or uses any materially false 
                writing or document knowing the same to contain 
                any materially false, fictitious, or fraudulent 
                statement or entry;
        shall be fined not more than $1,000,000 or imprisoned 
        not more than 10 years, or both.
  ``(b) Extraterritorial Jurisdiction.--There is 
extraterritorial Federal jurisdiction over an offense under 
this section.
  ``(c) Venue.--A prosecution for an offense under this section 
may be brought--
          ``(1) as authorized by chapter 211 of this title;
          ``(2) in any district where any act in furtherance of 
        the offense took place; or
          ``(3) in any district where any party to the contract 
        or provider of goods or services is located.''.
          (2) Table of sections.--The table of sections for 
        chapter 47 of such title is amended by adding at the 
        end the following:

``1041. War profiteering and fraud.''.
  (b) Criminal Forfeiture.--Section 982(a)(2)(B) of title 18, 
United States Code, is amended by striking ``or 1030'' and 
inserting ``1030, or 1041''.
  (c) Money Laundering.--Section 1956(c)(7)(D) of title 18, 
United States Code, is amended by inserting ``section 1041 
(relating to war profiteering and fraud),'' after ``liquidating 
agent of financial institution),''.
  (d) RICO.--Section 1961(1) of title 18, United States Code, 
is amended by inserting ``section 1041 (relating to war 
profiteering and fraud),'' after ``in connection with access 
devices),''.

           CHAPTER 3--MILITARY EXTRATERRITORIAL JURISDICTION

                              SHORT TITLE

  Sec. 11301. This chapter may be cited as the ``MEJA Expansion 
and Enforcement Act of 2008''.

                   LEGAL STATUS OF CONTRACT PERSONNEL

  Sec. 11302. (a) Clarification of Military Extraterritorial 
Jurisdiction Act.--
          (1) Inclusion of federal employees and contractors.--
        Section 3261(a) of title 18, United States Code, is 
        amended--
                  (A) in paragraph (1), by striking ``or'' at 
                the end;
                  (B) in paragraph (2), by striking the comma 
                at the end and inserting a semicolon; and
                  (C) by inserting after paragraph (2) the 
                following new paragraphs:
          ``(3) while employed by any Department or agency of 
        the United States other than the Armed Forces in a 
        foreign country in which the Armed Forces are 
        conducting a qualifying military operation; or
          ``(4) while employed as a security officer or 
        security contractor by any Department or agency of the 
        United States other than the Armed Forces,''.
          (2) Definitions.--Section 3267 of title 18, United 
        States Code, is amended--
                  (A) in paragraph (1), by striking 
                subparagraph (A) and inserting the following 
                new subparagraph:
                  ``(A) employed by or performing services 
                under a contract with or grant from the 
                Department of Defense (including a 
                nonappropriated fund instrumentality of the 
                Department) as--
                          ``(i) a civilian employee (including 
                        an employee from any other Executive 
                        agency on temporary assignment to the 
                        Department of Defense);
                          ``(ii) a contractor (including a 
                        subcontractor at any tier); or
                          ``(iii) an employee of a contractor 
                        (including a subcontractor at any 
                        tier);''; and
                  (B) by adding at the end the following new 
                paragraphs:
          ``(5) The term `employed by any Department or agency 
        of the United States other than the Armed Forces' 
        means--
                  ``(A) employed by or performing services 
                under a contract with or grant from any 
                Department or agency of the United States, or 
                any provisional authority funded in whole or 
                substantial part or created by the United 
                States Government, other than the Department of 
                Defense as--
                          ``(i) a civilian employee;
                          ``(ii) a contractor (including a 
                        subcontractor at any tier); or
                          ``(iii) an employee of a contractor 
                        (including a subcontractor at any 
                        tier);
                  ``(B) present or residing outside the United 
                States in connection with such employment; and
                  ``(C) not a national of or ordinarily a 
                resident in the host nation.
          ``(6) The term `employed as a security officer or 
        security contractor by any Department or agency of the 
        United States other than the Armed Forces' means--
                  ``(A) employed by or performing services 
                under a contract with or grant from any 
                Department or agency of the United States, or 
                any provisional authority funded in whole or 
                substantial part or created by the United 
                States Government, other than the Department of 
                Defense as--
                          ``(i) a civilian employee;
                          ``(ii) a contractor (including a 
                        subcontractor at any tier); or
                          ``(iii) an employee of a contractor 
                        (including a subcontractor at any 
                        tier);
                  ``(B) authorized in the course of such 
                employment--
                          ``(i) to provide physical protection 
                        to or security for persons, places, 
                        buildings, facilities, supplies, or 
                        means of transportation;
                          ``(ii) to carry or possess a firearm 
                        or dangerous weapon, as defined by 
                        section 930(g)(2) of this chapter;
                          ``(iii) to use force against another; 
                        or
                          ``(iv) to supervise individuals 
                        performing the activities described in 
                        clause (i), (ii) or (iii);
                  ``(C) present or residing outside the United 
                States in connection with such employment; and
                  ``(D) not a national of or ordinarily 
                resident in the host nation.
          ``(7) The term `qualifying military operation' 
        means--
                  ``(A) a military operation covered by a 
                declaration of war or an authorization of the 
                use of military force by Congress;
                  ``(B) a contingency operation (as defined in 
                section 101 of title 10); or
                  ``(C) any other military operation outside of 
                the United States, including a humanitarian 
                assistance or peace keeping operation, provided 
                such operation is conducted pursuant to an 
                order from or approved by the Secretary of 
                Defense.''.
  (b) Department of Justice Inspector General Report.--
          (1) Report required.--Not later than 180 days after 
        the date of the enactment of this Act, the Inspector 
        General of the Department of Justice, in consultation 
        with the Inspectors General of the Department of 
        Defense, the Department of State, the United States 
        Agency for International Development, the Department of 
        Agriculture, the Department of Energy, and other 
        appropriate Federal departments and agencies, shall 
        submit to Congress a report in accordance with this 
        subsection.
          (2) Content of report.--The report under paragraph 
        (1) shall include, for the period beginning on October 
        1, 2001, and ending on the date of the report--
                  (A) unless the description pertains to non-
                public information that relates to an ongoing 
                investigation or criminal or civil proceeding 
                under seal, a description of any alleged 
                violations of section 3261 of title 18, United 
                States Code, reported to the Inspector Generals 
                identified in paragraph (1) or the Department 
                of Justice, including--
                          (i) the date of the complaint and the 
                        type of offense alleged;
                          (ii) whether any investigation was 
                        opened or declined based on the 
                        complaint;
                          (iii) whether the investigation was 
                        closed, and if so, when it was closed;
                          (iv) whether a criminal or civil case 
                        was filed as a result of the 
                        investigation, and if so, when it was 
                        filed; and
                          (v) any charges or complaints filed 
                        in those cases; and
                  (B) unless the description pertains to non-
                public information that relates to an ongoing 
                investigation or criminal or civil proceeding 
                under seal, and with appropriate safeguards for 
                the protection of national security 
                information, a description of any shooting or 
                escalation of force incidents in Iraq or 
                Afghanistan involving alleged misconduct by 
                persons employed as a security officer or 
                security contractor by any Department or agency 
                of the United States, and any official action 
                taken against such persons.
          (3) Form of report.--The report under paragraph (1) 
        shall be submitted in unclassified form, but may 
        contain a classified annex as appropriate.

              INVESTIGATIVE UNITS FOR CONTRACTOR OVERSIGHT

  Sec. 11303. (a) Establishment of Investigative Units for 
Contractor Oversight.--
          (1) In general.--The Attorney General, in 
        consultation with the Secretary of Defense, the 
        Secretary of State, the Secretary of Homeland Security, 
        and the heads of any other Federal departments or 
        agencies responsible for employing private security 
        contractors or contractors (or subcontractors at any 
        tier) in a foreign country where the Armed Forces are 
        conducting a qualifying military operation--
                  (A) shall assign adequate personnel and 
                resources through the creation of Investigative 
                Units for Contractor Oversight to investigate 
                allegations of criminal violations under 
                paragraphs (3) and (4) of section 3261(a) of 
                title 18, United States Code (as amended by 
                section 11302(a) of this chapter); and
                  (B) may authorize the overseas deployment of 
                law enforcement agents and other Department of 
                Justice personnel for that purpose.
          (2) Rule of construction.--Nothing in this subsection 
        shall limit any existing authority of the Attorney 
        General or any Federal law enforcement agency to 
        investigate violations of Federal law or deploy 
        personnel overseas.
  (b) Referral for Prosecution.--Upon conclusion of an 
investigation of an alleged violation of sections 3261(a)(3) 
and 3261(a)(4) of title 18, United States Code, an 
Investigative Unit for Contractor Oversight may refer the 
matter to the Attorney General for further action, as 
appropriate in the discretion of the Attorney General.
  (c) Responsibilities of the Attorney General.--
          (1) Investigation.--The Attorney General shall have 
        the principal authority for the enforcement of sections 
        3261(a)(3) and 3261(a)(4) of title 18, United States 
        Code, and shall have the authority to initiate, 
        conduct, and supervise investigations of any alleged 
        violations of such sections 3261(a)(3) and 3261(a)(4).
          (2) Assistance on request of the attorney general.--
        Notwithstanding any statute, rule, or regulation to the 
        contrary, the Attorney General may request assistance 
        from the Secretary of Defense, the Secretary of State, 
        or the head of any other Executive agency to enforce 
        this chapter. This requested assistance may include the 
        assignment of additional personnel and resources to an 
        Investigative Unit for Contractor Oversight established 
        by the Attorney General under subsection (a).
          (3) Annual report.--Not later than one year after the 
        date of enactment of this Act, and annually thereafter, 
        the Attorney General, in consultation with the 
        Secretary of Defense and the Secretary of State, shall 
        submit to Congress a report containing--
                  (A) the number of violations of sections 
                3261(a)(3) and 3261(a)(4) of title 18, United 
                States Code, received, investigated, and 
                referred for prosecution by Federal law 
                enforcement authorities during the previous 
                year;
                  (B) the number and location of Investigative 
                Units for Contractor Oversight deployed to 
                investigate violations of such sections 
                3261(a)(3) and 3261(a)(4) during the previous 
                year; and
                  (C) any recommended changes to Federal law 
                that the Attorney General considers necessary 
                to enforce this chapter and the amendments made 
                by this chapter and chapter 212 of title 18, 
                United States Code.

    REMOVAL PROCEDURES FOR NON-DEPARTMENT OF DEFENSE EMPLOYEES AND 
                              CONTRACTORS

  Sec. 11304. (a) Attorney General Regulations.--Section 3266 
of title 18, United States Code, is amended by adding at the 
end the following:
  ``(d) The Attorney General, after consultation with the 
Secretary of Defense, the Secretary of State, and the Director 
of National Intelligence, may prescribe regulations governing 
the investigation, apprehension, detention, delivery, and 
removal of persons described in sections 3261(a)(3) and 
3261(a)(4) and describing the notice due, if any, foreign 
nationals potentially subject to the criminal jurisdiction of 
the United States under those sections.''.
  (b) Clarifying and Conforming Amendments.--
          (1) In general.--Chapter 212 of title 18, United 
        States Code, is amended--
                  (A) in section 3261(a)--
                          (i) by inserting ``against the United 
                        States'' after ``offense'' the first 
                        time it appears; and
                          (ii) by inserting ``within the United 
                        States or'' after ``had been engaged 
                        in'';
                  (B) in section 3262--
                          (i) in subsection (a), by striking 
                        ``section 3261(a)'' the first place it 
                        appears and inserting ``section 
                        3261(a)(1) or 3261(a)(2)'';
                          (ii) by redesignating subsection (b) 
                        as subsection (c); and
                          (iii) by inserting after subsection 
                        (a) the following new subsection (b):
  ``(b) The Attorney General may designate and authorize any 
person serving in a law enforcement position in the Department 
of Justice, the Department of Defense, the Department State, or 
any other Executive agency to arrest, in accordance with 
applicable international agreements, outside the United States 
any person described in section 3261(a) if there is probable 
cause to believe that such person violated section 3261(a).'';
                  (C) in section 3263(a), by striking ``section 
                3261(a)'' the first place it appears and 
                inserting ``section 3261(a)(1) or 3261(a)(2)'';
                  (D) in section 3264(a), by inserting 
                ``described in section 3261(a)(1) or 
                3261(a)(2)'' before ``arrested'';
                  (E) section 3265(a)(1) by inserting 
                ``described in section 3261(a)(1) or 
                3261(a)(2)'' before ``arrested''; and
                  (F) in section 3266(a), by striking ``under 
                this chapter'' and inserting ``described in 
                section 3261(a)(1) or 3261(a)(2)''.
          (2) Additional amendment.--Section 7(9) of title 18, 
        United States Code, is amended by striking ``section 
        3261(a)'' and inserting ``section 3261(a)(1) or 
        3261(a)(2)''.

                         RULES OF CONSTRUCTION

  Sec. 11305. (a) In General.--Nothing in this chapter or the 
amendments made by this chapter shall apply to authorized and 
otherwise lawful intelligence activities carried out by or at 
the direction of the United States.
  (b) Defenses.--Nothing in this section shall be construed to 
limit or extinguish any defense or protection otherwise 
available to any person or entity from suit, civil or criminal 
liability, or damages, or to provide immunity from prosecution 
for any criminal offense by the proper authorities.
  (c) Existing Extraterritorial Jurisdiction.--Nothing in this 
chapter or the amendments made by this chapter shall be 
construed to limit or affect the extraterritorial jurisdiction 
related to any Federal statute not amended by this chapter.

                               DEFINITION

  Sec. 11306. For purposes of this chapter and the amendments 
made by this chapter, the term ``Executive agency'' has the 
meaning given in section 105 of title 5, United States Code.

                             EFFECTIVE DATE

  Sec. 11307. (a) Immediate Effectiveness.--The provisions of 
this chapter shall enter into effect immediately upon the 
enactment of this Act.
  (b) Implementation.--The Attorney General and the head of any 
other Federal department or agency to which this chapter 
applies shall have 90 days after the date of the enactment of 
this Act to ensure compliance with the provisions of this 
chapter.

Text of House Amendment #3 to the Senate Amendment to H.R. 2642 Made in 
                          Order Under the Rule

  Page 1 of the Senate engrossed amendment, strike line 1 and 
all that follows through the end of line 21 on page 59, and 
insert the following:

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

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

                         CHAPTER 1--AGRICULTURE

                       DEPARTMENT OF AGRICULTURE

                      Foreign Agricultural Service

                     public law 480 title ii grants

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

               CHAPTER 2--COMMERCE, JUSTICE, AND SCIENCE

                         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'', 
$18,621,000, to remain available until September 30, 2009.

                    Federal Bureau of Investigation

                         salaries and expenses

  For an additional amount for ``Salaries and Expenses'', 
$92,169,000, 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'', 
$12,166,000, 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.

         CHAPTER 3--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

  For an additional amount for ``Military Construction, Army'', 
$1,432,700,000, 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: 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 of the funds made 
available under this heading, $72,000,000 shall not be 
obligated or expended until after that date on which the 
Secretary of Defense submits a detailed spending plan, 
including a 1391 form for each facilities replacement project, 
to the Committees on Appropriations of the House of 
Representatives and Senate: Provided further, That of the funds 
provided under this heading, $533,700,000 shall not be 
obligated or expended until the Secretary of Defense certifies 
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'', $423,357,000, 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: 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'', $409,627,000, 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: Provided further, That of the 
funds provided under this heading, not to exceed $36,427,000 
shall be available for study, planning, design, and architect 
and engineer services: Provided further, That of the funds 
provided under this heading, $58,300,000 shall not be obligated 
or expended until the Secretary of Defense certifies that none 
of the funds are to be used for the purpose of providing 
facilities for the permanent basing of United States military 
personnel in Iraq.

                  Military Construction, Defense-Wide

  For an additional amount for ``Military Construction, 
Defense-Wide'', $1,009,600,000, 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: Provided further, 
That of the funds provided, $982,000,000 shall be for medical 
treatment facilities construction (including planning and 
design) and shall remain available until September 30, 2012.

           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), 
$1,354,634,000, 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.

                    GENERAL PROVISION, THIS CHAPTER

  Sec. 1301. None of the funds appropriated in this or any 
other Act may be used to terminate, reorganize, or relocate the 
Armed Forces Institute of Pathology 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.

         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'', $1,606,808,000, to remain available until September 
30, 2009, of which $210,508,000 for worldwide security 
protection is available until expended: Provided, That not more 
than $1,295,000,000 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 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'', $7,500,000, 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.

            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'', $53,000,000 to remain available 
until September 30, 2009.

        contributions for international peacekeeping activities

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

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                   international disaster assistance

   For an additional amount for ``International Disaster 
Assistance'', $200,000,000, 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'', 
$142,000,000, to remain available until September 30, 2009: 
Provided, That of the funds appropriated under this heading, 
not more than $20,000,000 shall be available to establish and 
implement a coordinated civilian response capacity at the 
United States Agency for International Development.

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

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

                  Other Bilateral Economic Assistance

                         economic support fund

   For an additional amount for ``Economic Support Fund'', 
$1,747,000,000, to remain available until September 30, 2009, 
of which not more than $440,000,000 may be made available for 
assistance for Iraq, $150,000,000 shall be made available for 
assistance for Jordan to meet the needs of Iraqi refugees, and 
up to $53,000,000 may be available for energy-related 
assistance for North Korea, notwithstanding any other provision 
of law: Provided, That not more than $100,000,000 of the funds 
appropriated under this heading shall be made available for 
assistance for the West Bank 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'', 
$75,000,000, to remain available until September 30, 2009, for 
democracy programs in Iraq.

          international narcotics control and law enforcement

   For an additional amount for ``International Narcotics 
Control and Law Enforcement'', $419,300,000, to remain 
available until September 30, 2009: Provided, That not more 
than $25,000,000 of the funds appropriated by this subchapter 
shall be made available for security assistance for the West 
Bank.

                    migration and refugee assistance

   For an additional amount for ``Migration and Refugee 
Assistance'', $300,000,000, 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'', $25,000,000, to remain 
available until expended.

    nonproliferation, anti-terrorism, demining and related programs

   For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $11,200,000, to 
remain available until September 30, 2009.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   foreign military financing program

   For an additional amount for ``Foreign Military Financing 
Program'', $72,500,000, to remain available until September 30, 
2009, of which up to $66,500,000 shall be made available for 
assistance for Mexico.

 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'', $737,900,000, 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 $581,500,000 of the funds appropriated under this 
heading shall be available for diplomatic operations in Iraq.

                      office of inspector general

                     (including transfers 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 $46,500,000 shall be transferred to the Special 
Inspector General for Iraq Reconstruction for reconstruction 
oversight and up to $5,000,000 shall be transferred to the 
Special Inspector General for Afghanistan Reconstruction for 
reconstruction oversight.

            embassy security, construction, and maintenance

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

                      International Organizations

              contributions to international organizations

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

        contributions for international peacekeeping activities

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

                             RELATED AGENCY

                    Broadcasting Board of Governors

                 international broadcasting operations

   For an additional amount for ``International Broadcasting 
Operations'', $8,000,000, which shall become available on 
October 1, 2008 and remain available through September 30, 
2009.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                    global health and child survival

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

                         development assistance

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

                   international disaster assistance

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

   operating expenses of the united states agency for international 
                              development

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

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

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

                  Other Bilateral Economic Assistance

                         economic support fund

   For an additional amount for ``Economic Support Fund,'' 
$1,147,300,000, which shall become available on October 1, 2008 
and remain available through September 30, 2009, of which not 
more than $100,000,000 may be made available for assistance for 
Iraq, $100,000,000 shall be made available for assistance for 
Jordan, and $15,000,000 may be made available for energy-
related assistance for North Korea, notwithstanding any other 
provision of law: Provided, That not more than $150,000,000 of 
the funds appropriated under this heading in this subchapter 
shall be made available for assistance for the West Bank.

                          Department of State

          international narcotics control and law enforcement

   For an additional amount for ``International Narcotics 
Control and Law Enforcement'', $204,500,000, 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 made available by this subchapter shall be made 
available for security assistance for the West Bank and up to 
$53,500,000 shall be made available for assistance for Mexico.

                    migration and refugee assistance

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

    nonproliferation, anti-terrorism, demining and related programs

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

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

                   foreign military financing program

   For an additional amount for ``Foreign Military Financing 
Program'', $170,000,000, 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 up to $50,000,000 shall be made 
available for assistance for Mexico: 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'', 
$85,000,000, 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)).

                              AFGHANISTAN

  Sec. 1402 (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) Civilian 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) Anticorruption.--Not later than 90 days after 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. 1403. Not later than 90 days after the date of enactment 
of this Act, and 180 days thereafter, the Secretary of State 
shall submit to the Committees on Appropriations a report on 
assistance provided by the United States for the training of 
Palestinian security forces, including detailed descriptions of 
the training, curriculum, and equipment provided; an assessment 
of the training and the performance of forces after training 
has been completed; and a description of the assistance that 
has been pledged and provided to Palestinian security forces by 
other donors: Provided, That not later than 90 days after the 
date of enactment of this Act, the Secretary of State shall 
report to the Committees on Appropriations, in classified form 
if necessary, on the security strategy of the Palestinian 
Authority.

                                 MEXICO

  Sec. 1404. (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 $296,500,000 of the funds appropriated in subchapter 
A and $103,500,000 of the funds appropriated in subchapter B 
shall be made available for assistance for Mexico, only to 
combat drug trafficking and related violent crime, and for 
judicial reform, institution building, and rule of law 
activities, of which not less than $73,500,000 shall be used 
for judicial reform, institution building, 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 none of the funds 
made available under this section shall be available for 
obligation until the Secretary of State determines and reports 
to the Committees on Appropriations that vetting procedures are 
in place to ensure that relevant members and units of the 
Mexican armed forces and police forces that may receive 
assistance pursuant to this section have not been involved in 
human rights violations or corrupt acts.
  (b) Allocation of Funds.--25 percent of the funds made 
available by this chapter for assistance for Mexico under the 
headings ``International Narcotics Control and Law 
Enforcement'' and ``Foreign Military Financing Program'' shall 
be withheld from obligation until the Secretary of State 
reports to the Committees on Appropriations on the requirements 
described in subsection (c).
  (c) Requirements.--The requirements referred to in subsection 
(b) are the following:
          (1) The Government of Mexico is--
                  (A) improving the transparency and 
                accountability of Federal police forces and 
                engaging with state and municipal authorities 
                to improve the transparency and accountability 
                of state and municipal police forces through 
                mechanisms such as police complaints 
                commissions;
                  (B) ensuring meaningful engagement with civil 
                society to monitor efforts to combat drug 
                trafficking and related violent crime, judicial 
                reform, institution building, and rule of law 
                activities to ensure due process and the 
                protection of freedom of expression, 
                association, and assembly in accordance with 
                Mexican and international law; and
                  (C) ensuring that, in accordance with 
                applicable Mexican law, the Mexican armed 
                forces and the Federal police forces are 
                cooperating with civilian prosecutors and 
                judicial authorities in investigating and 
                prosecuting in the civilian justice system 
                those individuals, including military 
                personnel, who have been credibly alleged under 
                Mexican law to have committed violations of 
                internationally recognized human rights, and, 
                consistent with Mexican and international law, 
                is vigorously enforcing the prohibition on the 
                use of testimony obtained through torture or 
                other ill-treatment.
          (2) The Federal Public Security Secretary and the 
        Minister of Defense, respectively, in accordance with 
        applicable Mexican law, are suspending or placing on 
        administrative duty, those members of the Federal 
        police and armed forces who have been credibly alleged 
        under Mexican law, to have committed violations of 
        internationally recognized human rights or participated 
        in corrupt acts and have established policies that 
        reward respect for human rights, in particular 
        regarding the use of force.
          (3) The Attorney General and other relevant 
        authorities of the Mexican Government are investigating 
        and prosecuting members of the Mexican armed forces and 
        police forces who have been credibly alleged under 
        Mexican law to have committed violations of 
        internationally recognized human rights.
  (d) Exception.--Notwithstanding subsections (b) and (c), 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 encompassing 
Federal, state, and municipal police officials, and $5,000,000 
may be made available to the Bureau of Alcohol, Tobacco, 
Firearms and Explosives to deploy special agents in Mexico to 
support Mexican law enforcement agencies in tracing seized 
firearms and investigating firearms trafficking cases: 
Provided, That section 484(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291c(a)) shall not apply with respect to 
assistance for Mexico made available by this chapter.
  (e) Report.--The report required in subsection (b) shall 
include a description of actions taken with respect to each 
requirement specified in subsection (c) and the cases or issues 
brought to the attention of the Secretary of State for which 
the response or action taken has been inadequate.
  (f) Vetting.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of State shall submit to 
the Committees on Appropriations a report, in classified form 
if necessary, detailing the procedures used to vet Mexican 
armed forces and police forces for eligibility to receive 
assistance under this section.
  (g) 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).
  (h) 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 for combating 
drug trafficking and related violent crime, judicial reform, 
institution building, and rule of law activities, with concrete 
goals, actions to be taken, budget proposals, and anticipated 
results.
  (i) Consultation.--Not later than 90 days after the date of 
the enactment of this Act, and every 180 days thereafter until 
September 30, 2010, the Secretary of State shall consult with 
Mexican and internationally recognized human rights 
organizations on progress in meeting the requirements described 
in subsection (c).

                            CENTRAL AMERICA

  Sec. 1405. (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'', $61,500,000 shall be 
made available for assistance for the countries of Central 
America, Haiti, and the Dominican Republic only to combat drug 
trafficking and related violent crime, and for judicial reform, 
institution building, rule of law activities, and maritime 
security: Provided, That of the funds appropriated under the 
heading ``Economic Support Fund'', $15,000,000 shall be made 
available through the United States Agency for International 
Development for an Economic and Social Development Fund for the 
countries of Central America: Provided further, That of the 
funds appropriated under the heading ``International Narcotics 
Control and Law Enforcement'', $2,500,000 shall be made 
available for assistance for Haiti and $2,500,000 shall be made 
available for assistance for the Dominican Republic: Provided 
further, That none of the funds shall be made available for 
budget support or as cash payments: Provided further, That none 
of the funds shall be available for obligation until the 
Secretary of State determines and reports to the Committees on 
Appropriations that vetting procedures are in place to ensure 
that Federal and municipal police forces and the armed forces 
of the countries of Central America that may receive assistance 
pursuant to this section have not been involved in human rights 
violations or corrupt acts.
  (b) Allocation of Funds.--(1) Up to 75 percent of the funds 
appropriated under the headings ``International Narcotics 
Control and Law Enforcement'' and ``Foreign Military Financing 
Program'' in subchapter A that are available for assistance for 
the countries of Central America may be obligated prior to the 
certification and report by the Secretary of State required in 
paragraph (2).
  (2) The balance of the funds may be obligated not less than 
120 days after the date of the enactment of this Act if, before 
such obligation, the Secretary of State determines and reports 
to the Committees on Appropriations that the requirements in 
subsection (c) have been met.
  (c) Requirements.--The requirements referred to in subsection 
(b)(2) are the following:
          (1) The International Law Enforcement Academy (ILEA) 
        in San Salvador, El Salvador is establishing a vetting 
        procedure for police and other public security 
        officials attending programs at the ILEA.
          (2) The countries of Central America are--
                  (A) vetting members and units of Federal and 
                municipal police forces and the armed forces 
                that may receive assistance to ensure such 
                members and units have not been involved in 
                human rights violations or corrupt acts;
                  (B) strengthening law enforcement 
                capabilities, developing effective systems 
                information exchange, improving demand 
                reduction, and expanding public education, 
                prevention, and treatment programs;
                  (C) improving controls on chemical 
                precursors;
                  (D) adopting and implementing reforms that 
                improve the capacity and protect the 
                independence of the judiciary;
                  (E) reforming criminal procedures to ensure 
                due process and training Federal and municipal 
                police leadership in modern policing to curb 
                police abuses;
                  (F) targeting organizational structures and 
                financial and other assets of drug cartels;
                  (G) taking steps to curb corruption in law 
                enforcement agencies; and
                  (H) suspending, prosecuting, and punishing 
                members of the police forces who have been 
                credibly alleged to have committed violations 
                of human rights and corrupt acts, and 
                establishing policies for members of such 
                forces that reward respect for human rights, in 
                particular regarding the use of force.
  (d) Report.--The report required in subsection (b)(2) shall 
include actions taken with respect to each requirement and the 
cases or issues brought to the attention of the Secretary for 
which the response or action taken has been inadequate.
  (e) Vetting.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of State shall submit a 
report to the Committees on Appropriations, in classified form 
if necessary, detailing the procedures used by the Government 
of the United States to vet the Federal and municipal police 
and the armed forces of the countries of Central America for 
eligibility to receive assistance under this section.
  (f) Notification.--Funds made available for the countries of 
Central America 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).
  (g) 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 violent crime, judicial reform, 
institution building, and rule of law activities, with concrete 
goals, actions to be taken, budget proposals and anticipated 
results.
  (h) Consultation.--Not later than 90 days after the date of 
enactment of this Act and every 120 days thereafter until 
September 30, 2010, the Secretary of State shall consult with 
internationally recognized human rights organizations, and 
human rights organizations in the countries of Central America 
receiving assistance pursuant to this section, on progress in 
meeting the requirements described in subsection (c).
  (i) 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 transfer of funds)

  Sec. 1406. (a) Of the funds appropriated under the heading 
``Diplomatic and Consular Programs'' and allocated by section 
3810 of the U.S. Troop Readiness, Veterans' Care, Katrina 
Recovery, and Iraq Accountability Appropriations Act, 2007 
(Public Law 110-28), $26,000,000 shall be transferred to and 
merged with funds in the ``Buying Power Maintenance Account'': 
Provided, That of the funds made available by this chapter up 
to an additional $74,000,000 may be transferred to and merged 
with the ``Buying Power Maintenance Account'', subject to the 
regular notification procedures of the Committees on 
Appropriations and in accordance with the procedures in section 
34 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2706). Any funds transferred pursuant to this section 
shall be available, without fiscal year limitation, pursuant to 
section 24 of the State Department Basic Authorities Act of 
1956 (22 U.S.C. 2696).
  (b) Section 24(b)(7) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2696(b)(7)) is amended by 
amending subparagraph (D) to read as follows:
                  ``(D) The authorities contained in this 
                paragraph may be exercised only with respect to 
                funds appropriated or otherwise made available 
                after fiscal year 2008.''.

                              RESCISSIONS

  Sec. 1407. (a) World Food Program.--(1) For an additional 
amount for a contribution to the World Food Program to assist 
farmers in countries affected by food shortages to increase 
crop yields, notwithstanding any other provision of law, 
$20,000,000, to remain available until expended.
  (2) Of the funds appropriated under the heading ``Andean 
Counterdrug Initiative'' in prior Acts making appropriations 
for foreign operations, export financing, and related programs, 
$20,000,000 are rescinded.
  (b) Sudan.--(1) For an additional amount for ``International 
Narcotics Control and Law Enforcement'', $10,000,000, for 
assistance for Sudan to support formed police units, to remain 
available until September 30, 2009, and subject to prior 
consultation with the Committees on Appropriations.
  (2) Of the funds appropriated under the heading 
``International Narcotics Control and Law Enforcement'' in 
prior Acts making appropriations for foreign operations, export 
financing, and related programs, $10,000,000 are rescinded.
  (c) Section 8002 of this Act shall not apply to this section.

                              ALLOCATIONS

  Sec. 1408. (a) Funds provided in 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. 1409. 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 PLAN AND NOTIFICATION PROCEDURES

  Sec. 1410. (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. 1411. Unless otherwise provided for in this Act, funds 
appropriated or otherwise made available by this chapter shall 
be available under the authorities and conditions provided in 
the Department of State, Foreign Operations, and Related 
Programs Appropriations Act, 2008 (division J of Public Law 
110-161), except that section 699K of such Act shall not apply 
to funds in this chapter.

                       TITLE II--DOMESTIC MATTERS

               CHAPTER 1--COMMERCE, JUSTICE, AND SCIENCE

                         DEPARTMENT OF COMMERCE

                          Bureau of the Census

                     periodic censuses and programs

                     (including transfer of funds)

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

                         DEPARTMENT OF JUSTICE

                         Federal Prison System

                         salaries and expenses

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

                CHAPTER 2--ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil

                              construction

  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 remain 
available until expended: Provided, That such sums shall not be 
available until October 1, 2008: Provided further, That the 
Secretary of the Army is directed to use $1,997,000,000 of the 
funds provided herein to modify authorized projects in 
southeast Louisiana to provide hurricane, storm and flood 
damage reduction in the greater New Orleans and surrounding 
areas to the levels of protection necessary to achieve the 
certification required for participation in the National Flood 
Insurance Program under the base flood elevations current at 
the time of enactment of this Act, and shall use $1,077,000,000 
of those funds for the Lake Pontchartrain and Vicinity project 
and $920,000,000 of those funds for the West Bank and Vicinity 
project: Provided further, That, in addition, $838,000,000 of 
the funds provided herein shall be for elements of Southeast 
Louisiana Urban Drainage project within the geographic 
perimeter of the West Bank and Vicinity and Lake Pontchartrain 
and Vicinity projects, to provide for interior drainage of 
runoff from rainfall with a ten percent annual exceedance 
probability: Provided further, That the amounts provided herein 
shall be subject to a 65 percent Federal / 35 percent non-
Federal cost share for the specified purposes: Provided 
further, That beginning not later than 60 days after the date 
of enactment of this Act, the Chief of Engineers, acting 
through the Assistant Secretary of the Army for Civil Works, 
shall provide monthly reports to the Committees on 
Appropriations of the House of Representatives and the Senate 
detailing the allocation and obligation of these funds.

                 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 relating to 
the consequences of Hurricane Katrina and other hurricanes of 
the 2005 season, $2,926,000,000, to remain available until 
expended: Provided, That such sums shall not be available until 
October 1, 2008: Provided further, 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 used to complete the 
authorized protection for the Lake Pontchartrain and Vicinity 
Project and for the West Bank and Vicinity Project: 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.

       CHAPTER 3--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION

                          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.

                     CHAPTER 4--LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

      Payment to Widows and Heirs of Deceased Members of Congress

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

               TITLE III--VETERANS EDUCATIONAL ASSISTANCE

                              SHORT TITLE

  Sec. 3001. This title may be cited as the ``Post-9/11 
Veterans Educational Assistance Act of 2008''.

                                FINDINGS

  Sec. 3002. 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. 3003. (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.

               ``subchapter iii--administrative provisions

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

                      ``SUBCHAPTER I--DEFINITIONS

``Sec. 3301. Definitions

  ``In this chapter:
          ``(1) The term `active duty' has the meanings as 
        follows (subject to the limitations specified in 
        sections 3002(6) and 3311(b) of this title):
                  ``(A) In the case of members of the regular 
                components of the Armed Forces, the meaning 
                given such term in section 101(21)(A) of this 
                title.
                  ``(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 
        the meaning given such term in section 3002 of this 
        title, except to the extent otherwise provided in 
        section 3313 of this title.
          ``(4) The term `Secretary of Defense' has the meaning 
        given such term in section 3002 of this title.

                ``SUBCHAPTER II--EDUCATIONAL ASSISTANCE

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

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

``Sec. 3312. Educational assistance: duration

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

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

  ``(a) Payment.--The Secretary shall pay to each individual 
entitled to educational assistance under this chapter who is 
pursuing an approved program of education (other than a program 
covered by subsections (e) and (f)) the amounts specified in 
subsection (c) to meet the expenses of such individual's 
subsistence, tuition, fees, and other educational costs for 
pursuit of such program of education.
  ``(b) Approved Programs of Education.--A program of education 
is an approved program of education for purposes of this 
chapter if the program of education is offered by an 
institution of higher learning (as that term is defined in 
section 3452(f) of this title) and is approved for purposes of 
chapter 30 of this title (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) of this title, 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 a program of education offered 
                        through distance learning, a monthly 
                        housing stipend amount equal to the 
                        monthly amount of the basic allowance 
                        for housing payable under section 403 
                        of title 37 for a member with 
                        dependents in pay grade E-5 residing in 
                        the military housing area that 
                        encompasses all or the majority portion 
                        of the ZIP code area in which is 
                        located the institution of higher 
                        education at which the individual is 
                        enrolled.
                          ``(ii) For the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program of education 
                        pursued by the individual, a lump sum 
                        amount for books, supplies, equipment, 
                        and other educational costs with 
                        respect to such quarter, semester, or 
                        term in the amount equal to--
                                  ``(I) $1,000, multiplied by
                                  ``(II) the fraction which is 
                                the portion of a complete 
                                academic year under the program 
                                of education that such quarter, 
                                semester, or term constitutes.
          ``(2) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(3) of this title, 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) of this title, 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) of this title, 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) of this title, 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) of this title, 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) of this title, 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) 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) 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) 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) 
Educational assistance is payable under this chapter for 
pursuit of an approved program of education while on active 
duty.
  ``(2) 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) of this title.
  ``(3) 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) 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) Educational assistance is payable under this chapter 
for pursuit of an approved program of education on half-time 
basis or less.
  ``(2) The educational assistance payable under this chapter 
to an individual pursuing a program of education on half-time 
basis or less is the amounts as follows:
          ``(A) The amount equal to the lesser of--
                  ``(i) the established charges which similarly 
                circumstanced nonveterans enrolled in the 
                program of education involved would be required 
                to pay; or
                  ``(ii) the maximum amount that would be 
                payable to the individual for the program of 
                education under paragraph (1)(A) of subsection 
                (c), or under the provisions of paragraphs (2) 
                through (7) of subsection (c) applicable to the 
                individual, for the program of education if the 
                individual were entitled to amounts for the 
                program of education under subsection (c) 
                rather than this subsection.
          ``(B) A stipend in an amount equal to the amount of 
        the appropriately reduced amount of the lump sum amount 
        for books, supplies, equipment, and other educational 
        costs otherwise payable to the individual under 
        subsection (c).
  ``(3) 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) 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 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) Established charges shall be determined for purposes of 
this subsection on the following basis:
          ``(A) In the case of an individual enrolled in a 
        program of education offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the term, quarter, or semester.
          ``(B) In the case of an individual enrolled in a 
        program of education not offered on a term, quarter, or 
        semester basis, the tuition and fees charged the 
        individual for the entire program of education.

``Sec. 3314. Tutorial assistance

  ``(a) In General.--Subject to subsection (b), an individual 
entitled to educational assistance under this chapter shall 
also be entitled to benefits provided an eligible veteran under 
section 3492 of this title.
  ``(b) Conditions.--(1) The provision of benefits under 
subsection (a) shall be subject to the conditions applicable to 
an eligible veteran under section 3492 of this title.
  ``(2) 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) 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) The amount provided an individual under this subsection 
is in addition to the amounts of educational assistance paid 
the individual under section 3313 of this title.
  ``(d) No Charge Against Entitlement.--Any benefits provided 
an individual under subsection (a) are in addition to any other 
educational assistance benefits provided the individual under 
this chapter.

``Sec. 3315. Licensure and certification tests

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

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

  ``(a) Increased Assistance for Members With Critical Skills 
or Specialty.--(1) In the case of an individual who has a skill 
or specialty designated by the Secretary concerned as a skill 
or specialty in which there is a critical shortage of personnel 
or for which it is difficult to recruit or, in the case of 
critical units, retain personnel, the Secretary concerned may 
increase the monthly amount of educational assistance otherwise 
payable to the individual under paragraph (1)(B) of section 
3313(c) of this title, or under paragraphs (2) through (7) of 
such section (as applicable).
  ``(2) 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) of this title at the time 
of the increase under paragraph (1).
  ``(b) Supplemental Assistance for Additional Service.--(1) 
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 of this 
title. 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) of 
this title, or under paragraphs (2) through (7) of such section 
(as applicable).
  ``(2) Eligibility for supplement educational assistance under 
this subsection shall be determined in accordance with the 
provisions of subchapter III of chapter 30 of this title, 
except that any reference in such provisions to eligibility for 
basic educational assistance under a provision of subchapter II 
of chapter 30 of this title shall be treated as a reference to 
eligibility for educational assistance under the appropriate 
provision of this chapter.
  ``(3) 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 of this title.
  ``(c) Regulations.--The Secretaries concerned shall 
administer this section in accordance with such regulations as 
the Secretary of Defense shall prescribe.

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

  ``(a) Establishment of Program.--In instances where the 
educational assistance provided pursuant to section 
3313(c)(1)(A) does not cover the full cost of established 
charges (as specified in section 3313 of this title), the 
Secretary shall carry out a program under which colleges and 
universities can, voluntarily, enter into an agreement with the 
Secretary to cover a portion of those established charges not 
otherwise covered under section 3313(c)(1)(A), which 
contributions shall be matched by equivalent contributions 
toward such costs by the Secretary. The program shall only 
apply to covered individuals described in paragraphs (1) and 
(2) of section 3311(b).
  ``(b) Designation of Program.--The program under this section 
shall be known as the `Yellow Ribbon G.I. Education Enhancement 
Program'.
  ``(c) Agreements.--The Secretary shall enter into an 
agreement with each college or university seeking to 
participate in the program under this section. Each agreement 
shall specify the following:
          ``(1) The manner (whether by direct grant, 
        scholarship, or otherwise) of the contributions to be 
        made by the college or university concerned.
          ``(2) The maximum amount of the contribution to be 
        made by the college or university concerned with 
        respect to any particular individual in any given 
        academic year.
          ``(3) The maximum number of individuals for whom the 
        college or university concerned will make contributions 
        in any given academic year.
          ``(4) Such other matters as the Secretary and the 
        college or university concerned jointly consider 
        appropriate.
  ``(d) Matching Contributions.--(1) In instances where the 
educational assistance provided an individual under section 
3313(c)(1)(A) of this title 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) Amounts available to the Secretary under section 
3324(b) of this title 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).

              ``SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

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

  ``(a) In General.--Except as provided in this section, the 
period during which an individual entitled to educational 
assistance under this chapter may use such individual's 
entitlement expires at the end of the 15-year period beginning 
on the date of such individual's last discharge or release from 
active duty.
  ``(b) Exceptions.--(1) Subsections (b), (c), and (d) of 
section 3031 of this title 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 of this title with respect to the running of the 
10-year period described in section 3031(a) of this title.
  ``(2) Section 3031(f) of this title 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 of this 
title, except that, in the administration of such section for 
purposes of this chapter, the reference to section 3013 of this 
title shall be deemed to be a reference to 3312 of this title.
  ``(3) 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) of 
this title.

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

  ``(a) In General.--An individual entitled to educational 
assistance under this chapter who is also eligible for 
educational assistance under chapter 30, 31, 32, or 35 of this 
title, chapter 107, 1606, or 1607 of title 10, or the 
provisions of the Hostage Relief Act of 1980 (Public Law 96-
449; 5 U.S.C. 5561 note) may not receive assistance under two 
or more such programs concurrently, but shall elect (in such 
form and manner as the Secretary may prescribe) under which 
chapter or provisions to receive educational assistance.
  ``(b) Inapplicability of Service Treated Under Educational 
Loan Repayment Programs.--A period of service counted for 
purposes of repayment of an education loan under chapter 109 of 
title 10 may not be counted as a period of service for 
entitlement to educational assistance under this chapter.
  ``(c) Service in Selected Reserve.--An individual who serves 
in the Selected Reserve may receive credit for such service 
under only one of this chapter, chapter 30 of this title, and 
chapters 1606 and 1607 of title 10, and shall elect (in such 
form and manner as the Secretary may prescribe) under which 
chapter such service is to be credited.
  ``(d) Additional Coordination Matters.--In the case of an 
individual entitled to educational assistance under chapter 30, 
31, 32, or 35 of this title, chapter 107, 1606, or 1607 of 
title 10, or the provisions of the Hostage Relief Act of 1980, 
or making contributions toward entitlement to educational 
assistance under chapter 30 of this title, as of August 1, 
2009, coordination of entitlement to educational assistance 
under this chapter, on the one hand, and such chapters or 
provisions, on the other, shall be governed by the provisions 
of section 3003(c) of the Post-9/11 Veterans Educational 
Assistance Act of 2008.

``Sec. 3323. Administration

  ``(a) In General.--(1) Except as otherwise provided in this 
chapter, the provisions specified in section 3034(a)(1) of this 
title shall apply to the provision of educational assistance 
under this chapter.
  ``(2) 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) In applying section 3474 of this title 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 of 
this title.
  ``(4) In applying section 3482(g) of this title to an 
individual entitled to educational assistance under this 
chapter for purposes of this section--
          ``(A) the first reference to the term `educational 
        assistance allowance' in such section 3482(g) shall be 
        deemed to refer to educational assistance payable under 
        section 3313 of this title; 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) The Secretary of Veterans 
Affairs shall provide the information described in paragraph 
(2) to each member of the Armed Forces at such times as the 
Secretary of Veterans Affairs and the Secretary of Defense 
shall jointly prescribe in regulations.
  ``(2) The information described in this paragraph is 
information on benefits, limitations, procedures, eligibility 
requirements (including time-in-service requirements), and 
other important aspects of educational assistance under this 
chapter, including application forms for such assistance under 
section 5102 of this title.
  ``(3) 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) The Secretary shall prescribe 
regulations for the administration of this chapter.
  ``(2) Any regulations prescribed by the Secretary of Defense 
for purposes of this chapter shall apply uniformly across the 
Armed Forces.

``Sec. 3324. Allocation of administration and costs

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

``33. Post-9/11 Educational Assistance...........................3301''.
  (b) Conforming Amendments.--
          (1) Amendments relating to duplication of benefits.--
                  (A) Section 3033 of title 38, United States 
                Code, is amended--
                          (i) in subsection (a)(1), by 
                        inserting ``33,'' after ``32,''; and
                          (ii) in subsection (c), by striking 
                        ``both the program established by this 
                        chapter and the program established by 
                        chapter 106 of title 10'' and inserting 
                        ``two or more of the programs 
                        established by this chapter, chapter 33 
                        of this title, and chapters 1606 and 
                        1607 of title 10''.
                  (B) Paragraph (4) of section 3695(a) of such 
                title is amended to read as follows:
          ``(4) Chapters 30, 32, 33, 34, 35, and 36 of this 
        title.''.
                  (C) Section 16163(e) of title 10, United 
                States Code, is amended by inserting ``33,'' 
                after ``32,''.
          (2) Additional conforming amendments.--
                  (A) Title 38, United States Code, is further 
                amended by inserting ``33,'' after ``32,'' each 
                place it appears in the following provisions:
                          (i) In subsections (b) and (e)(1) of 
                        section 3485.
                          (ii) In section 3688(b).
                          (iii) In subsections (a)(1), (c)(1), 
                        (c)(1)(G), (d), and (e)(2) of section 
                        3689.
                          (iv) In section 3690( b)(3)(A).
                          (v) In subsections (a) and (b) of 
                        section 3692.
                          (vi) In section 3697(a).
                  (B) Section 3697A(b)(1) of such title is 
                amended by striking ``or 32'' and inserting 
                ``32, or 33''.
  (c) Applicability to Individuals Under Montgomery GI Bill 
Program.--
          (1) Individuals eligible to elect participation in 
        post-9/11 educational assistance.--An individual may 
        elect to receive educational assistance under chapter 
        33 of title 38, United States Code (as added by 
        subsection (a)), if such individual--
                  (A) as of August 1, 2009--
                          (i) is entitled to basic educational 
                        assistance under chapter 30 of title 
                        38, United States Code, and has used, 
                        but retains unused, entitlement under 
                        that chapter;
                          (ii) is entitled to educational 
                        assistance under chapter 107, 1606, or 
                        1607 of title 10, United States Code, 
                        and has used, but retains unused, 
                        entitlement under the applicable 
                        chapter;
                          (iii) is entitled to basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, but 
                        has not used any entitlement under that 
                        chapter;
                          (iv) is entitled to educational 
                        assistance under chapter 107, 1606, or 
                        1607 of title 10, United States Code, 
                        but has not used any entitlement under 
                        such chapter;
                          (v) is a member of the Armed Forces 
                        who is eligible for receipt of basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, and is 
                        making contributions toward such 
                        assistance under section 3011(b) or 
                        3012(c) of such title; or
                          (vi) is a member of the Armed Forces 
                        who is not entitled to basic 
                        educational assistance under chapter 30 
                        of title 38, United States Code, by 
                        reason of an election under section 
                        3011(c)(1) or 3012(d)(1) of such title; 
                        and
                  (B) as of the date of the individual's 
                election under this paragraph, meets the 
                requirements for entitlement to educational 
                assistance under chapter 33 of title 38, United 
                States Code (as so added).
          (2) Cessation of contributions toward gi bill.--
        Effective as of the first month beginning on or after 
        the date of an election under paragraph (1) of an 
        individual described by subparagraph (A)(v) of that 
        paragraph, the obligation of the individual to make 
        contributions under section 3011(b) or 3012(c) of title 
        38, United States Code, as applicable, shall cease, and 
        the requirements of such section shall be deemed to be 
        no longer applicable to the individual.
          (3) Revocation of remaining transferred 
        entitlement.--
                  (A) Election to revoke.--If, on the date an 
                individual described in subparagraph (A)(i) or 
                (A)(iii) of paragraph (1) makes an election 
                under that paragraph, a transfer of the 
                entitlement of the individual to basic 
                educational assistance under section 3020 of 
                title 38, United States Code, is in effect and 
                a number of months of the entitlement so 
                transferred remain unutilized, the individual 
                may elect to revoke all or a portion of the 
                entitlement so transferred that remains 
                unutilized.
                  (B) Availability of revoked entitlement.--Any 
                entitlement revoked by an individual under this 
                paragraph shall no longer be available to the 
                dependent to whom transferred, but shall be 
                available to the individual instead for 
                educational assistance under chapter 33 of 
                title 38, United States Code (as so added), in 
                accordance with the provisions of this 
                subsection.
                  (C) Availability of unrevoked entitlement.--
                Any entitlement described in subparagraph (A) 
                that is not revoked by an individual in 
                accordance with that subparagraph shall remain 
                available to the dependent or dependents 
                concerned in accordance with the current 
                transfer of such entitlement under section 3020 
                of title 38, United States Code.
          (4) Post-9/11 educational assistance.--
                  (A) In general.--Subject to subparagraph (B) 
                and except as provided in paragraph (5), an 
                individual making an election under paragraph 
                (1) shall be entitled to educational assistance 
                under chapter 33 of title 38, United States 
                Code (as so added), in accordance with the 
                provisions of such chapter, instead of basic 
                educational assistance under chapter 30 of 
                title 38, United States Code, or educational 
                assistance under chapter 107, 1606, or 1607 of 
                title 10, United States Code, as applicable.
                  (B) Limitation on entitlement for certain 
                individuals.--In the case of an individual 
                making an election under paragraph (1) who is 
                described by subparagraph (A)(i) of that 
                paragraph, the number of months of entitlement 
                of the individual to educational assistance 
                under chapter 33 of title 38, United States 
                Code (as so added), shall be the number of 
                months equal to--
                          (i) the number of months of unused 
                        entitlement of the individual under 
                        chapter 30 of title 38, United States 
                        Code, as of the date of the election, 
                        plus
                          (ii) the number of months, if any, of 
                        entitlement revoked by the individual 
                        under paragraph (3)(A).
          (5) Continuing entitlement to educational assistance 
        not available under 9/11 assistance program.--
                  (A) In general.--In the event educational 
                assistance to which an individual making an 
                election under paragraph (1) would be entitled 
                under chapter 30 of title 38, United States 
                Code, or chapter 107, 1606, or 1607 of title 
                10, United States Code, as applicable, is not 
                authorized to be available to the individual 
                under the provisions of chapter 33 of title 38, 
                United States Code (as so added), the 
                individual shall remain entitled to such 
                educational assistance in accordance with the 
                provisions of the applicable chapter.
                  (B) Charge for use of entitlement.--The 
                utilization by an individual of entitlement 
                under subparagraph (A) shall be chargeable 
                against the entitlement of the individual to 
                educational assistance under chapter 33 of 
                title 38, United States Code (as so added), at 
                the rate of one month of entitlement under such 
                chapter 33 for each month of entitlement 
                utilized by the individual under subparagraph 
                (A) (as determined as if such entitlement were 
                utilized under the provisions of chapter 30 of 
                title 38, United States Code, or chapter 107, 
                1606, or 1607 of title 10, United States Code, 
                as applicable).
          (6) Additional post-9/11 assistance for members 
        having made contributions toward gi bill.--
                  (A) Additional assistance.--In the case of an 
                individual making an election under paragraph 
                (1) who is described by clause (i), (iii), or 
                (v) of subparagraph (A) of that paragraph, the 
                amount of educational assistance payable to the 
                individual under chapter 33 of title 38, United 
                States Code (as so added), as a monthly stipend 
                payable under paragraph (1)(B) of section 
                3313(c) of such title (as so added), or under 
                paragraphs (2) through (7) of that section (as 
                applicable), shall be the amount otherwise 
                payable as a monthly stipend under the 
                applicable paragraph increased by the amount 
                equal to--
                          (i) the total amount of contributions 
                        toward basic educational assistance 
                        made by the individual under section 
                        3011(b) or 3012(c) of title 38, United 
                        States Code, as of the date of the 
                        election, multiplied by
                          (ii) the fraction--
                                  (I) the numerator of which 
                                is--
                                          (aa) the number of 
                                        months of entitlement 
                                        to basic educational 
                                        assistance under 
                                        chapter 30 of title 38, 
                                        United States Code, 
                                        remaining to the 
                                        individual at the time 
                                        of the election; plus
                                          (bb) the number of 
                                        months, if any, of 
                                        entitlement under such 
                                        chapter 30 revoked by 
                                        the individual under 
                                        paragraph (3)(A); and
                                  (II) the denominator of which 
                                is 36 months.
                  (B) Months of remaining entitlement for 
                certain individuals.--In the case of an 
                individual covered by subparagraph (A) who is 
                described by paragraph (1)(A)(v), the number of 
                months of entitlement to basic educational 
                assistance remaining to the individual for 
                purposes of subparagraph (A)(ii)(I)(aa) shall 
                be 36 months.
                  (C) Timing of payment.--The amount payable 
                with respect to an individual under 
                subparagraph (A) shall be paid to the 
                individual together with the last payment of 
                the monthly stipend payable to the individual 
                under paragraph (1)(B) of section 3313(c) of 
                title 38, United States Code (as so added), or 
                under paragraphs (2) through (7) of that 
                section (as applicable), before the exhaustion 
                of the individual's entitlement to educational 
                assistance under chapter 33 of such title (as 
                so added).
          (7) Continuing entitlement to additional assistance 
        for critical skills or speciality and additional 
        service.--An individual making an election under 
        paragraph (1)(A) who, at the time of the election, is 
        entitled to increased educational assistance under 
        section 3015(d) of title 38, United States Code, or 
        section 16131(i) of title 10, United States Code, or 
        supplemental educational assistance under subchapter 
        III of chapter 30 of title 38, United States Code, 
        shall remain entitled to such increased educational 
        assistance or supplemental educational assistance in 
        the utilization of entitlement to educational 
        assistance under chapter 33 of title 38, United States 
        Code (as so added), in an amount equal to the quarter, 
        semester, or term, as applicable, equivalent of the 
        monthly amount of such increased educational assistance 
        or supplemental educational assistance payable with 
        respect to the individual at the time of the election.
          (8) Irrevocability of elections.--An election under 
        paragraph (1) or (3)(A) is irrevocable.
  (d) Effective Date.--This section and the amendments made by 
this section shall take effect on August 1, 2009.

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

  Sec. 3004. (a) Educational Assistance Based on Three-Year 
Period of Obligated Service.--Subsection (a)(1) of section 3015 
of title 38, United States Code, is amended--
          (1) by striking subparagraphs (A) through (C) and 
        inserting the following new subparagraph:
          ``(A) for months occurring during the period 
        beginning on August 1, 2008, and ending on the last day 
        of fiscal year 2009, $1,321; and''; and
          (2) by redesignating subparagraph (D) as subparagraph 
        (B).
  (b) Educational Assistance Based on Two-Year Period of 
Obligated Service.--Subsection (b)(1) of such section is 
amended--
          (1) by striking subparagraphs (A) through (C) and 
        inserting the following new subparagraph:
          ``(A) for months occurring during the period 
        beginning on August 1, 2008, and ending on the last day 
        of fiscal year 2009, $1,073; and''; and
          (2) by redesignating subparagraph (D) as subparagraph 
        (B).
  (c) Modification of Mechanism for Cost-of-Living 
Adjustments.--Subsection (h)(1) of such section is amended by 
striking subparagraphs (A) and (B) and inserting the following 
new subparagraphs:
          ``(A) the average cost of undergraduate tuition in 
        the United States, as determined by the National Center 
        for Education Statistics, for the last academic year 
        preceding the beginning of the fiscal year for which 
        the increase is made, exceeds
          ``(B) the average cost of undergraduate tuition in 
        the United States, as so determined, for the academic 
        year preceding the academic year described in 
        subparagraph (A).''.
  (d) Effective Date.--
          (1) In general.--The amendments made by this section 
        shall take effect on August 1, 2008.
          (2) No cost-of-living adjustment for fiscal year 
        2009.--The adjustment required by subsection (h) of 
        section 3015 of title 38, United States Code (as 
        amended by this section), in rates of basic educational 
        assistance payable under subsections (a) and (b) of 
        such section (as so amended) shall not be made for 
        fiscal year 2009.

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

  Sec. 3005. 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.''.

             TITLE IV--EMERGENCY UNEMPLOYMENT COMPENSATION

                        FEDERAL-STATE AGREEMENTS

  Sec. 4001. (a) In General.--Any State which desires to do so 
may enter into and participate in an agreement under this title 
with the Secretary of Labor (in this title referred to as the 
``Secretary''). Any State which is a party to an agreement 
under this title may, upon providing 30 days' written notice to 
the Secretary, terminate such agreement.
  (b) Provisions of Agreement.--Any agreement under subsection 
(a) shall provide that the State agency of the State will make 
payments of emergency unemployment compensation to individuals 
who--
          (1) have exhausted all rights to regular compensation 
        under the State law or under Federal law with respect 
        to a benefit year (excluding any benefit year that 
        ended before May 1, 2007);
          (2) have no rights to regular compensation or 
        extended compensation with respect to a week under such 
        law or any other State unemployment compensation law or 
        to compensation under any other Federal law (except as 
        provided under subsection (e)); and
          (3) are not receiving compensation with respect to 
        such week under the unemployment compensation law of 
        Canada.
  (c) Exhaustion of Benefits.--For purposes of subsection 
(b)(1), an individual shall be deemed to have exhausted such 
individual's rights to regular compensation under a State law 
when--
          (1) no payments of regular compensation can be made 
        under such law because such individual has received all 
        regular compensation available to such individual based 
        on employment or wages during such individual's base 
        period; or
          (2) such individual's rights to such compensation 
        have been terminated by reason of the expiration of the 
        benefit year with respect to which such rights existed.
  (d) Weekly Benefit Amount, Etc.--For purposes of any 
agreement under this title--
          (1) the amount of emergency unemployment compensation 
        which shall be payable to any individual for any week 
        of total unemployment shall be equal to the amount of 
        the regular compensation (including dependents' 
        allowances) payable to such individual during such 
        individual's benefit year under the State law for a 
        week of total unemployment;
          (2) the terms and conditions of the State law which 
        apply to claims for regular compensation and to the 
        payment thereof shall apply to claims for emergency 
        unemployment compensation and the payment thereof, 
        except 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.

              EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT

  Sec. 4002. (a) In General.--Any agreement under this title 
shall provide that the State will establish, for each eligible 
individual who files an application for emergency unemployment 
compensation, an emergency unemployment compensation account 
with respect to such individual's benefit year.
  (b) Amount in Account.--
          (1) In general.--The amount established in an account 
        under subsection (a) shall be equal to the lesser of--
                  (A) 50 percent of the total amount of regular 
                compensation (including dependents' allowances) 
                payable to the individual during the 
                individual's benefit year under such law, or
                  (B) 13 times the individual's average weekly 
                benefit amount for the benefit year.
          (2) Weekly benefit amount.--For purposes of this 
        subsection, an individual's weekly benefit amount for 
        any week is the amount of regular compensation 
        (including dependents' allowances) under the State law 
        payable to such individual for such week for total 
        unemployment.
  (c) Special Rule.--
          (1) In general.--Notwithstanding any other provision 
        of this section, if, at the time that the individual's 
        account is exhausted or at any time thereafter, such 
        individual's State is in an extended benefit period (as 
        determined under paragraph (2)), then, such account 
        shall be augmented by an amount equal to the amount 
        originally established in such account (as determined 
        under subsection (b)(1)).
          (2) Extended benefit period.--For purposes of 
        paragraph (1), a State shall be considered to be in an 
        extended benefit period, as of any given time, if--
                  (A) such a period is then in effect for such 
                State under the Federal-State Extended 
                Unemployment Compensation Act of 1970;
                  (B) such a period would then be in effect for 
                such State under such Act if section 203(d) of 
                such Act--
                          (i) were applied by substituting 
                        ``4'' for ``5'' each place it appears; 
                        and
                          (ii) did not include the requirement 
                        under paragraph (1)(A); or
                  (C) such a period would then be in effect for 
                such State under such Act if--
                          (i) section 203(f) of such Act were 
                        applied to such State (regardless of 
                        whether the State by law had provided 
                        for such application); and
                          (ii) such section 203(f)--
                                  (I) were applied by 
                                substituting `6.0' for `6.5' in 
                                paragraph (1)(A)(i); and
                                  (II) did not include the 
                                requirement under paragraph 
                                (1)(A)(ii).

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

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

                          FINANCING PROVISIONS

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

                         FRAUD AND OVERPAYMENTS

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

                              DEFINITIONS

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

                             APPLICABILITY

  Sec. 4007. (a) In General.--Except as provided in subsection 
(b), an agreement entered into under this title shall apply to 
weeks of unemployment--
          (1) beginning after the date on which such agreement 
        is entered into; and
          (2) ending on or before March 31, 2009.
  (b) Transition for Amount Remaining in Account.--
          (1) In general.--Subject to paragraphs (2) and (3), 
        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 augmentation.--If the account of an 
        individual is exhausted after the last day of such last 
        week (as so determined), then section 4002(c) shall not 
        apply and such account shall not be augmented under 
        such section, regardless of whether such individual's 
        State is in an extended benefit period (as determined 
        under paragraph (2) of such section).
          (3) Limit on compensation.--No compensation shall be 
        payable by reason of paragraph (1) for any week 
        beginning after June 30, 2009.

                      TITLE V--MEDICAID PROVISIONS

  Sec. 5001. (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
                  (C) in subparagraph (C), by inserting before 
                the period at the end the following: ``, 
                including the proposed regulation published on 
                May 23, 2007 (72 Federal Register 28930)''.
          (2) Extension of certain moratoria in public law 110-
        173.--Section 206 of the Medicare, Medicaid, and SCHIP 
        Extension Act of 2007 (Public Law 110-173) is amended--
                  (A) by striking ``June 30, 2008'' and 
                inserting ``April 1, 2009'';
                  (B) by inserting ``, including the proposed 
                regulation published on August 13, 2007 (72 
                Federal Register 45201),'' after 
                ``rehabilitation services''; and
                  (C) by inserting ``, including the final 
                regulation published on December 28, 2007 (72 
                Federal Register 73635),'' after ``school-based 
                transportation''.
          (3) Additional moratoria.--
                  (A) In general.--Notwithstanding any other 
                provision of law, the Secretary of Health and 
                Human Services shall not, prior to April 1, 
                2009, take any action (through promulgation of 
                regulation, issuance of regulatory guidance, 
                use of Federal payment audit procedures, or 
                other administrative action, policy, or 
                practice, including a Medical Assistance Manual 
                transmittal or letter to State Medicaid 
                directors) to impose any restrictions relating 
                to a provision described in subparagraph (B), 
                (C), or (D) if such restrictions are more 
                restrictive in any aspect than those applied to 
                the respective provision as of the date 
                specified in subparagraph (E) 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) Proposed regulation relating to 
                redefinition of medicaid outpatient hospital 
                services.--The provision described in this 
                subparagraph is the proposed regulation 
                relating to clarification of outpatient clinic 
                and hospital facility services definition and 
                upper payment limit under the Medicaid program 
                published on September 28, 2007 (72 Federal 
                Register 55158) in its entirety.
                  (D) Portion of proposed regulation relating 
                to medicaid allowable provider taxes.--
                          (i) In general.--Subject to clause 
                        (ii), the provision described in this 
                        subparagraph is the final regulation 
                        relating to health-care-related taxes 
                        under the Medicaid program published on 
                        February 22, 2008 (73 Federal Register 
                        9685) in its entirety.
                          (ii) Exception.--The provision 
                        described in this subparagraph does not 
                        include the portions of such regulation 
                        as relate to the following:
                                  (I) Reduction in threshold.--
                                The reduction from 6 percent to 
                                5.5 percent in the threshold 
                                applied under section 
                                433.68(f)(3)(i) of title 42, 
                                Code of Federal Regulations, 
                                for determining whether or not 
                                there is an indirect guarantee 
                                to hold a taxpayer harmless, as 
                                required to carry out section 
                                1903(w)(4)(C)(ii) of the Social 
                                Security Act, as added by 
                                section 403 of the Medicare 
                                Improvement and Extension Act 
                                of 2006 (division B of Public 
                                Law 109-432).
                                  (II) Change in definition of 
                                managed care.--The change in 
                                the definition of managed care 
                                as proposed in the revision of 
                                section 433.56(a)(8) of title 
                                42, Code of Federal 
                                Regulations, as required to 
                                carry out section 
                                1903(w)(7)(A)(viii) of the 
                                Social Security Act, as amended 
                                by section 6051 of the Deficit 
                                Reduction Act of 2005 (Public 
                                Law 109-171).
                  (E) Date specified.--The date specified in 
                this subparagraph for the provision described 
                in--
                          (i) subparagraph (B) is December 3, 
                        2007;
                          (ii) subparagraph (C) is September 
                        27, 2007; or
                          (iii) subparagraph (D) 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 Secretary 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 
                the Secretary $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 the Secretary 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 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 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 July 1, 2008, 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) and in the provisions described 
                in subparagraph (B) through (D) of paragraph 
                (3) of such subsection were intended to 
                address;
                  (B) detailing 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 July 1, 2008, 
                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 March 1, 2009.
                  (D) Cooperation of states.--If the Secretary 
                of Health and Human Services determines that a 
                State or the District of Columbia has not 
                cooperated with the independent organization 
                for purposes of the report under this 
                paragraph, the Secretary shall reduce the 
                amount paid to the State or District under 
                section 1903(a) of the Social Security Act (42 
                U.S.C. 1396b(a)) by $25,000 for each day on 
                which the Secretary determines such State or 
                District has not so cooperated. Such reduction 
                shall be made through a process that permits 
                the State or District to challenge the 
                Secretary's determination.
          (3) Funding.--
                  (A) In general.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated to the 
                Secretary without further appropriation, 
                $5,000,000 to carry out this subsection.
                  (B) Availability; amounts in addition to 
                other amounts appropriated for such 
                activities.--Amounts appropriated pursuant to 
                subparagraph (A) shall--
                          (i) remain available until expended; 
                        and
                          (ii) be in addition to any other 
                        amounts appropriated or made available 
                        to the Secretary of Health and Human 
                        Services with respect to the Medicaid 
                        program.
  (d) Asset Verification Through Access to Information Held by 
Financial Institutions.--
          (1) Addition of authority.--Title XIX of the Social 
        Security Act is amended by inserting after section 1939 
        the following new section:

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

  ``Sec. 1940. (a) Implementation.--
          ``(1) In general.--Subject to the provisions of this 
        section, each State shall implement an asset 
        verification program described in subsection (b), for 
        purposes of determining or redetermining the 
        eligibility of an individual for medical assistance 
        under the State plan under this title.
          ``(2) Plan submittal.--In order to meet the 
        requirement of paragraph (1), each State shall--
                  ``(A) submit not later than a deadline 
                specified by the Secretary consistent with 
                paragraph (3), a State plan amendment under 
                this title that describes how the State intends 
                to implement the asset verification program; 
                and
                  ``(B) provide for implementation of such 
                program for eligibility determinations and 
                redeterminations made on or after 6 months 
                after the deadline established for submittal of 
                such plan amendment.
          ``(3) Phase-in.--
                  ``(A) In general.--
                          ``(i) Implementation in current asset 
                        verification demo states.--The 
                        Secretary shall require those States 
                        specified in subparagraph (C) (to which 
                        an asset verification program has been 
                        applied before the date of the 
                        enactment of this section) to implement 
                        an asset verification program under 
                        this subsection by the end of fiscal 
                        year 2009.
                          ``(ii) Implementation in other 
                        states.--The Secretary shall require 
                        other States to submit and implement an 
                        asset verification program under this 
                        subsection in such manner as is 
                        designed to result in the application 
                        of such programs, in the aggregate for 
                        all such other States, to enrollment of 
                        approximately, but not less than, the 
                        following percentage of enrollees, in 
                        the aggregate for all such other 
                        States, by the end of the fiscal year 
                        involved:
                                  ``(I) 12.5 percent by the end 
                                of fiscal year 2009.
                                  ``(II) 25 percent by the end 
                                of fiscal year 2010.
                                  ``(III) 50 percent by the end 
                                of fiscal year 2011.
                                  ``(IV) 75 percent by the end 
                                of fiscal year 2012.
                                  ``(V) 100 percent by the end 
                                of fiscal year 2013.
                  ``(B) Consideration.--In selecting States 
                under subparagraph (A)(ii), the Secretary shall 
                consult with the States involved and take into 
                account the feasibility of implementing asset 
                verification programs in each such State.
                  ``(C) States specified.--The States specified 
                in this subparagraph are California, New York, 
                and New Jersey.
                  ``(D) Construction.--Nothing in subparagraph 
                (A)(ii) shall be construed as preventing a 
                State from requesting, and the Secretary 
                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 
                material to the determination of the 
                eligibility of the applicant or recipient for 
                such assistance) for the State to obtain 
                (subject to the cost reimbursement requirements 
                of section 1115(a) of the Right to Financial 
                Privacy Act but at no cost to the applicant or 
                recipient) from any financial institution 
                (within the meaning of section 1101(1) of such 
                Act) any financial record (within the meaning 
                of section 1101(2) of such Act) held by the 
                institution with respect to the applicant or 
                recipient (and such other person, as 
                applicable), whenever the State determines the 
                record is needed in connection with a 
                determination with respect to such eligibility 
                for (or the amount or extent of) such medical 
                assistance; and
                  ``(B) uses the authorization provided under 
                subparagraph (A) to verify the financial 
                resources of such applicant or recipient (and 
                such other person, as applicable), in order to 
                determine or redetermine the eligibility of 
                such applicant or recipient for medical 
                assistance under the State plan.
          ``(2) Program described.--A program described in this 
        paragraph is a program for verifying individual assets 
        in a manner consistent with the approach used by the 
        Commissioner of Social Security under section 
        1631(e)(1)(B)(ii).
  ``(c) Duration of Authorization.--Notwithstanding section 
1104(a)(1) of the Right to Financial Privacy Act, an 
authorization provided to a State under subsection (b)(1) shall 
remain effective until the earliest of--
          ``(1) the rendering of a final adverse decision on 
        the applicant's application for medical assistance 
        under the State's plan under this title;
          ``(2) the cessation of the recipient's eligibility 
        for such medical assistance; or
          ``(3) the express revocation by the applicant or 
        recipient (or such other person described in subsection 
        (b)(1), as applicable) of the authorization, in a 
        written notification to the State.
  ``(d) Treatment of Right to Financial Privacy Act 
Requirements.--
          ``(1) An authorization obtained by the State under 
        subsection (b)(1) shall be considered to meet the 
        requirements of the Right to Financial Privacy Act for 
        purposes of section 1103(a) of such Act, and need not 
        be furnished to the financial institution, 
        notwithstanding section 1104(a) of such Act.
          ``(2) The certification requirements of section 
        1103(b) of the Right to Financial Privacy Act shall not 
        apply to requests by the State pursuant to an 
        authorization provided under subsection (b)(1).
          ``(3) A request by the State pursuant to an 
        authorization provided under subsection (b)(1) is 
        deemed to meet the requirements of section 1104(a)(3) 
        of the Right to Financial Privacy Act and of section 
        1102 of such Act, relating to a reasonable description 
        of financial records.
  ``(e) Required Disclosure.--The State shall inform any person 
who provides authorization pursuant to subsection (b)(1)(A) of 
the duration and scope of the authorization.
  ``(f) Refusal or Revocation of Authorization.--If an 
applicant for, or recipient of, medical assistance under the 
State plan under this title (or such other person described in 
subsection (b)(1), as applicable) refuses to provide, or 
revokes, any authorization made by the applicant or recipient 
(or such other person, as applicable) under subsection 
(b)(1)(A) for the State to obtain from any financial 
institution any financial record, the State may, on that basis, 
determine that the applicant or recipient is ineligible for 
medical assistance.
  ``(g) Use of Contractor.--For purposes of implementing an 
asset verification program under this section, a State may 
select and enter into a contract with a public or private 
entity meeting such criteria and qualifications as the State 
determines appropriate, consistent with requirements in 
regulations relating to general contracting provisions and with 
section 1903(i)(2). In carrying out activities under such 
contract, such an entity shall be subject to the same 
requirements and limitations on use and disclosure of 
information as would apply if the State were to carry out such 
activities directly.
  ``(h) Technical Assistance.--The Secretary shall provide 
States with technical assistance to aid in implementation of an 
asset verification program under this section.
  ``(i) Reports.--A State implementing an asset verification 
program under this section shall furnish to the Secretary such 
reports concerning the program, at such times, in such format, 
and containing such information as the Secretary determines 
appropriate.
  ``(j) Treatment of Program Expenses.--Notwithstanding any 
other provision of law, reasonable expenses of States in 
carrying out the program under this section shall be treated, 
for purposes of section 1903(a), in the same manner as State 
expenditures specified in paragraph (7) of such section.''.
          (2) State plan requirements.--Section 1902(a) of such 
        Act (42 U.S.C. 1396a(a)) is amended--
                  (A) in paragraph (69) by striking ``and'' at 
                the end;
                  (B) in paragraph (70) by striking the period 
                at the end and inserting ``; and''; and
                  (C) by inserting after paragraph (70), as so 
                amended, the following new paragraph:
          ``(71) provide that the State will implement an asset 
        verification program as required under section 1940.''.
          (3) Withholding of federal matching payments for 
        noncompliant states.--Section 1903(i) of such Act (42 
        U.S.C. 1396b(i)) is amended--
                  (A) in paragraph (22) by striking ``or'' at 
                the end;
                  (B) in paragraph (23) by striking the period 
                at the end and inserting ``; or''; and
                  (C) by adding after paragraph (23) the 
                following new paragraph:
          ``(24) if a State is required to implement an asset 
        verification program under section 1940 and fails to 
        implement such program in accordance with such section, 
        with respect to amounts expended by such State for 
        medical assistance for individuals subject to asset 
        verification under such section, unless--
                  ``(A) the State demonstrates to the 
                Secretary's satisfaction that the State made a 
                good faith effort to comply;
                  ``(B) not later than 60 days after the date 
                of a finding that the State is in 
                noncompliance, the State submits to the 
                Secretary (and the Secretary approves) a 
                corrective action plan to remedy such 
                noncompliance; and
                  ``(C) not later than 12 months after the date 
                of such submission (and approval), the State 
                fulfills the terms of such corrective action 
                plan.''.
          (4) Repeal.--Section 4 of Public Law 110-90 is 
        repealed.
  (e) 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 
                ``$3,940,000,000''; and
                  (B) by adding at the end the following new 
                subclause:
                                  ``(IV) For expenditures 
                                during 2014, an amount equal to 
                                $3,750,000,000.'';
          (2) in subparagraph (A)(ii), by adding at the end the 
        following new subclause:
                                  ``(IV) 2014.--The amount 
                                available for expenditures 
                                during 2014 shall only be 
                                available for an adjustment to 
                                the update of the conversion 
                                factor under subsection (d) for 
                                that year.''; and
          (3) in subparagraph (B)--
                  (A) in clause (ii), by striking ``and'' at 
                the end;
                  (B) in clause (iii), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                clause:
                          ``(iv) 2014 for payment with respect 
                        to physicians' services furnished 
                        during 2014.''.

  TITLE VI--ACCOUNTABILITY AND TRANSPARENCY IN GOVERNMENT CONTRACTING

             CHAPTER 1--CLOSE THE CONTRACTOR FRAUD LOOPHOLE

                              SHORT TITLE

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

             REVISION OF THE FEDERAL ACQUISITION REGULATION

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

                               DEFINITION

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

               CHAPTER 2--GOVERNMENT FUNDING TRANSPARENCY

                              SHORT TITLE

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

  FINANCIAL DISCLOSURE REQUIREMENTS FOR CERTAIN RECIPIENTS OF FEDERAL 
                                 AWARDS

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

                 TITLE VII--GI BILL FINANCING PROVISION

                      GI BILL FINANCING PROVISION

  Sec. 7001. (a) In General.--Part I of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by inserting 
after section 1 the following new section:

``SEC. 1A. INCREASE IN TAX ON HIGH INCOME INDIVIDUALS TO FINANCE THE GI 
                    BILL.

  ``(a) General Rule.--In the case of a taxpayer other than a 
corporation, there is hereby imposed (in addition to any other 
tax imposed by this subtitle) a tax equal to 0.47 percent of so 
much of modified adjusted gross income as exceeds $500,000 
($1,000,000 in the case of a joint return or a surviving spouse 
(as defined in section 2(a)).
  ``(b) Modified Adjusted Gross Income.--For purposes of this 
section, the term `modified adjusted gross income' means 
adjusted gross income reduced by any deduction allowed for 
investment interest (as defined in section 163(d)). In the case 
of an estate or trust, a rule similar to the rule of section 
67(e) shall apply for purposes of determining adjusted gross 
income for purposes of this section.
  ``(c) Nonresident Alien.--In the case of a nonresident alien 
individual, only amounts taken into account in connection with 
the tax imposed by section 871(b) shall be taken into account 
under this section.
  ``(d) Marital Status.--For purposes of this section, marital 
status shall be determined under section 7703.
  ``(e) Not Treated as Tax Imposed by This Chapter for Certain 
Purposes.--The tax imposed under this section shall not be 
treated as tax imposed by this chapter for purposes of 
determining the amount of any credit under this chapter or for 
purposes of section 55.''.
  (b) Clerical Amendment.--The table of sections for part I of 
subchapter A of chapter 1 of such Code is amended by inserting 
after the item relating to section 1 the following new item:

``Sec. 1A. Increase in tax on high income individuals to finance the GI 
          bill.''.
  (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.
  (d) Section 15 Not to Apply.--The amendment made by 
subsection (a) shall not be treated as a change in a rate of 
tax for purposes of section 15 of the Internal Revenue Code of 
1986.

                     TITLE VIII--GENERAL PROVISIONS

                         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 subsections (a) and (b) of section 
204 of S. Con. Res. 21 (110th Congress), the concurrent 
resolution on the budget for fiscal year 2008.

                              SHORT TITLE

  Sec. 8003. This Act may be cited as the ``Supplemental 
Appropriations Act, 2008''.

                                  
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