II 

112TH CONGRESS 

1ST SESSION S. 178 

To reduce Federal spending by $2.5 trillion through fiscal year 2021. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 25 (legislative day, JANUARY 5), 2011 

Mr. DEMINT introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To reduce Federal spending by $2.5 trillion through fiscal 

year 2021. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Spending Reduction Act of 2011’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SPENDING REDUCTIONS UNDER CONTINUING 

APPROPRIATIONS ACT, 2011 

Sec. 101. Reduction of nonsecurity discretionary spending to fiscal year 2008 

level. 


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TITLE II—CHANGES IN THE BASELINE; DISCRETIONARY 

SPENDING LIMITS FOR NONDEFENSE SPENDING 

Subtitle A—Elimination of Automatic Increases for Inflation 

Sec. 201. Changes in the baseline. 

Sec. 202. Extension. 

Subtitle B—Discretionary Spending Limits for Nondefense Spending 

Sec. 211. Extension of discretionary spending limits for nondefense spending. 

Sec. 212. Enforcement. 

Sec. 213. Reports. 

Sec. 214. Expiration. 

TITLE III—RESCISSION OF UNOBLIGATED STIMULUS FUNDS AND 

REPEAL OF CERTAIN STIMULUS PROVISIONS 

Sec. 301. Rescission of unobligated stimulus funds. 

Sec. 302. Repeal of certain stimulus provisions. 

TITLE IV—PROVISIONS RELATING TO FEDERAL CIVILIAN 

WORKFORCE 

Sec. 401. Extension of Federal employee pay freeze. 

Sec. 402. Limitation on the number of civilian employees in the executive 

branch. 

Sec. 403. Ineligibility of persons having seriously delinquent tax debts for Federal employment. 

Sec. 404. Repeal of certain provisions relating to official time for Federal employees. 

TITLE V—PROGRAM ELIMINATIONS AND RELATED PROVISIONS 

Subtitle A—Provisions Relating to Program Eliminations 

Sec. 501. Program eliminations. 

Sec. 502. Repeal of national organic certification cost-share program. 

Sec. 503. Prohibiting unauthorized payments to District of Columbia. 

Sec. 504. Prohibiting payment of gratuities to survivors of Members of Congress. 

Sec. 505. Davis-Bacon Repeal Act. 

Sec. 506. Priorities in Education Spending Act. 

Sec. 507. Repeal of temporary increase of Medicaid FMAP. 

Sec. 508. Moratorium on construction or leasing of new Federal buildings in 

District of Columbia until January 2013. 

Subtitle B—Elimination of Presidential Election Campaign Fund 

Sec. 511. Termination of taxpayer financing of Presidential election campaigns. 

Subtitle C—Repeal of Sugar Price Support and Other Programs 

Sec. 521. Repeal of sugar price support program and marketing allotments for 

sugar. 

Sec. 522. Repeal of market access program. 

Sec. 523. Termination of availability of marketing assistance loans and loan deficiency payments for mohair producers. 


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Subtitle D—Federal Real Property Disposal Pilot Program 

Sec. 531. Federal Real Property Disposal Pilot Program. 

TITLE VI—FANNIE MAE AND FREDDIE MAC 

Sec. 601. Short title. 

Sec. 602. Definitions. 

Sec. 603. Termination of current conservatorship. 

Sec. 604. Limitation of enterprise authority upon emergence from conservatorship. 

Sec. 605. Required wind down of operations and dissolution of enterprise. 

TITLE VII—MISCELLANEOUS 

Sec. 701. Limitation on Government printing costs. 

Sec. 702. Deposit of IRS user fees as general receipts. 

Sec. 703. Limitation of Government travel costs. 

Sec. 704. Reduction in Federal vehicle costs. 

Sec. 705. Repeals of prohibitions on public-private competitions for conversion 

to contractor performance of functions performed by Federal 

employees pursuant to Office of Management and Budget Circular A–76. 

Sec. 706. Deauthorization of appropriations to carry out PPACA and HCERA. 

Sec. 707. Rescission of Health Insurance Reform Implementation funds. 

Sec. 708. Taxpayer-generated deficit reduction. 

Sec. 709. Limitation on funds to implement certain health care laws. 

1 TITLE I—SPENDING REDUC2 TIONS UNDER CONTINUING 

3 APPROPRIATIONS ACT, 2011 

4 SEC. 101. REDUCTION OF NONSECURITY DISCRETIONARY 

5 SPENDING TO FISCAL YEAR 2008 LEVEL. 

6 (a) IN GENERAL.—Section 101 of the Continuing 

7 Appropriations Act, 2011 (Public Law 111–242) is 

8 amended by adding at the end the following: 

9 ‘‘(b)(1) Such amounts as may be necessary, at a rate 

10 for operations as provided in the appropriations Acts for 

11 fiscal year 2008 referred to in section 101 of division A 

12 of Public Law 110–329 and under the authority and con13 ditions provided in such Acts for projects or activities (inVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 cluding the costs of direct loans and loan guarantees) that 

2 are not otherwise provided for, that were conducted in fis3 cal years 2008 and 2010, and for which appropriations, 

4 funds, or other authority were made available in such 

5 Acts. 

6 ‘‘(2) If the amount provided for a project or activity 

7 by paragraph (1) would be higher than the amount pro8 vided in appropriations Acts for fiscal year 2010, such 

9 project or activity shall be funded at the lower such 

10 amount.’’. 

11 (b) CONTINUATION OF SECURITY-RELATED DISCRE12 TIONARY SPENDING.—Section 101 of such Act is further 

13 amended— 

14 (1) by inserting ‘‘(a)’’ after the section designa15 tion; 

16 (2) in subsection (a), as so amended, by strik17 ing paragraphs (1), (3), (5), (6), (7), (9), and (10); 

18 (3) in subsection (a), as so amended, by redes19 ignating paragraphs (2), (4), and (8) as paragraphs 

20 (1), (2), and (3), respectively; and 

21 (4) by adding at the end of subsection (a), as 

22 amended by paragraphs (1), (2), and (3), the fol23 lowing: 

24 ‘‘(4) Division E of the Consolidated Appropria25 tions Act, 2010 (Public Law 111–117).’’. 


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1 (c) CONFORMING AMENDMENTS.—Section 114(2) of 

2 such Act is amended— 

3 (1) by striking ‘‘(8)’’ and inserting ‘‘(3)’’; and 

4 (2) by inserting ‘‘(a)’’ after ‘‘section 101’’. 

5 TITLE II—CHANGES IN THE 

6 BASELINE; DISCRETIONARY 

7 SPENDING LIMITS FOR NON8 DEFENSE SPENDING 

9 Subtitle A—Elimination of 

10 Automatic Increases for Inflation 

11 SEC. 201. CHANGES IN THE BASELINE. 

12 Section 257(c) of the Balanced Budget and Emer13 gency Deficit Control Act of 1985 is amended— 

14 (1) in the second sentence of paragraph (1), by 

15 striking everything that follows ‘‘current year,’’ and 

16 inserting ‘‘excluding resources designated as an 

17 emergency requirement and any resources provided 

18 in supplemental appropriation laws.’’; 

19 (2) by striking paragraphs (2), (3), (4), and 

20 (5); 

21 (3) by redesignating paragraph (6) as para22 graph (2); and 

23 (4) by inserting after paragraph (2) the fol24 lowing new paragraph: 


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1 ‘‘(3) NO ADJUSTMENT FOR INFLATION.—No 

2 adjustment shall be made for inflation or for any 

3 other factor.’’. 

4 SEC. 202. EXTENSION. 

5 The second sentence of section 275(b) of the Bal6 anced Budget and Emergency Deficit Control Act of 1985 

7 is amended by inserting ‘‘other than subsections (a) 

8 through (d) of section 257’’ after ‘‘title’’. 

9 Subtitle B—Discretionary Spend10 ing Limits for Nondefense 

11 Spending 

12 SEC. 211. EXTENSION OF DISCRETIONARY SPENDING LIM13 ITS FOR NONDEFENSE SPENDING. 

14 (a) IN GENERAL.—Section 251(c) of the Balanced 

15 Budget and Emergency Deficit Control Act of 1985 is 

16 amended to read as follows: 

17 ‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in 

18 this part, the term ‘discretionary spending limit’ means— 

19 ‘‘(1) for fiscal year 2011 for the nondefense 

20 category $457,000,000,000 in new budget authority; 

21 and 

22 ‘‘(2) for each of fiscal years 2012 through 2021 

23 for the nondefense discretionary category 

24 $409,000,000,000 in new budget authority.’’. 


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1 (b) DEFINITIONS.—Section 250(c)(4) of the Bal2 anced Budget and Emergency Deficit Control Act of 1985 

3 is amended in subparagraph (C) by inserting ‘‘(and suc4 cessor accounts)’’ after ‘‘budget accounts’’. 

5 SEC. 212. ENFORCEMENT. 

6 (a) DISCRETIONARY SPENDING LIMIT POINT OF

7 ORDER.—Section 312 of the Congressional Budget Act of 

8 1974 is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(g) DISCRETIONARY SPENDING LIMIT POINT OF

11 ORDER.—It shall not be in order in the House of Rep12 resentatives or the Senate to consider any bill, joint resolu13 tion, amendment, or conference report that— 

14 ‘‘(1) increases the discretionary spending limits 

15 for any ensuing fiscal year after the budget year; or 

16 ‘‘(2) would cause the discretionary spending 

17 limits for the budget year to be breached.’’. 

18 (b) POINT OF ORDER AGAINST BUDGET RESOLU19 TION THAT BREACHES LIMITS.—It shall not be in order 

20 in the House of Representatives or the Senate to consider 

21 any concurrent resolution on the budget that would cause 

22 the discretionary spending limits for the budget year to 

23 be breached. 

24 (c) ADVANCE APPROPRIATION POINT OF ORDER.— 

25 Section 312 of the Congressional Budget Act of 1974 (as 


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1 amended by this section) is further amended by adding 

2 at the end the following new subsection: 

3 ‘‘(i) ADVANCE APPROPRIATION POINT OF ORDER.— 

4 It shall not be in order in the House of Representatives 

5 or the Senate to consider any appropriation bill or joint 

6 resolution, or amendment thereto or conference report 

7 thereon, that provides advance discretionary new budget 

8 authority that first becomes available for any fiscal year 

9 after the budget year at an amount for any program, 

10 project, or activity above the amount of appropriations for 

11 fiscal year 2007 for such program, project, or activity.’’. 

12 SEC. 213. REPORTS. 

13 Subsections (c)(2) and (f)(2)(A) of section 254 of the 

14 Balanced Budget and Emergency Deficit Control Act of 

15 1985 are amended by striking ‘‘2002’’ and inserting 

16 ‘‘2021’’. 

17 SEC. 214. EXPIRATION. 

18 Section 275(b) of the Balanced Budget and Emer19 gency Deficit Control Act of 1985 is amended by striking 

20 ‘‘2002’’ and inserting ‘‘2021’’. 


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1 TITLE III—RESCISSION OF UN2 OBLIGATED STIMULUS FUNDS 

3 AND REPEAL OF CERTAIN 

4 STIMULUS PROVISIONS 

5 SEC. 301. RESCISSION OF UNOBLIGATED STIMULUS FUNDS. 

6 Effective on the date of the enactment of this Act, 

7 there are rescinded all unobligated balances of the discre8 tionary appropriations made available by division A of the 

9 American Recovery and Reinvestment Act of 2009 (Public 

10 Law 111–5). 

11 SEC. 302. REPEAL OF CERTAIN STIMULUS PROVISIONS. 

12 Effective on the date of the enactment of this Act, 

13 subtitles B and C of title II and titles III through VII 

14 of division B of the American Recovery and Reinvestment 

15 Act of 2009 (Public Law 111–5) are repealed, and the 

16 provisions of law amended or repealed by such provisions 

17 of division B are restored or revived as if such provisions 

18 of division B had not been enacted. 

19 TITLE IV—PROVISIONS RELAT20 ING TO FEDERAL CIVILIAN 

21 WORKFORCE 

22 SEC. 401. EXTENSION OF FEDERAL EMPLOYEE PAY FREEZE. 

23 Section 147 of the Continuing Appropriations Act, 

24 2011 (Public Law 111–242) is amended— 


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1 (1) in subsection (b)(1), by striking ‘‘2012’’ 

2 and inserting ‘‘2015’’; and 

3 (2) in subsection (c), by striking ‘‘2012’’ and 

4 inserting ‘‘2015’’. 

5 SEC. 402. LIMITATION ON THE NUMBER OF CIVILIAN EM6 PLOYEES IN THE EXECUTIVE BRANCH. 

7 (a) LIMITATION.—Except as otherwise provided in 

8 this section— 

9 (1) no person shall be appointed as a full-time 

10 civilian employee to a permanent position in the ex11 ecutive branch during any month when the number 

12 of such employees is greater than the number equal 

13 to 85 percent of the number of such employees on 

14 September 30, 2010; and 

15 (2) the number of temporary and part-time em16 ployees in any agency in the executive branch during 

17 any month shall not be greater than the number of 

18 such employees during the corresponding month in 

19 fiscal year 2010. 

20 (b) PROVISIONS RELATING TO LIMITATION UNDER

21 SUBSECTION (a)(1).— 

22 (1) IN GENERAL.—During any period when ap23 pointments are otherwise prohibited under sub24 section (a)(1), an appointing authority may, except 

25 as otherwise provided in this subsection, appoint 


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1 persons as full-time civilian employees in permanent 

2 positions in an agency so long as the total number 

3 of persons appointed as full-time civilian employees 

4 in permanent positions in such agency (and attrib5 utable to such period) does not exceed the number 

6 equal to 50 percent of the number of vacancies in 

7 such positions which have occurred during such pe8 riod by reason of resignation, retirement, removal, or 

9 death. 

10 (2) SMALL AGENCIES.—For purposes of para11 graph (1), all agencies which, on the first day of any 

12 period when appointments are otherwise prohibited 

13 under subsection (a)(1), have 50 or fewer full-time 

14 civilian employees in permanent positions shall be 

15 treated as one agency, and the Director of the Office 

16 of Management and Budget (hereinafter in this sec17 tion referred to as the ‘‘Director’’) shall determine 

18 the vacancies in each such agency which may be 

19 filled by reason of paragraph (1). 

20 (3) REASSIGNMENTS.—For purposes of para21 graph (1), the Director may reassign vacancies from 

22 one agency to another agency when such reassign23 ment is, in the opinion of the Director, necessary or 

24 appropriate because of the creation of a new agency, 


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1 because of a change in functions, or for the more ef2 ficient operation of the Government. 

3 (4) TRANSFERS.—If a full-time civilian em4 ployee in a permanent position is transferred from 

5 one agency to another agency— 

6 (A) such transfer shall be taken into ac7 count under paragraph (1) as an appointment 

8 by the head of the agency to which such em9 ployee transfers; and 

10 (B) subsection (a)(1) shall not apply to an 

11 appointment to the vacancy in the agency from 

12 which such employee transferred and such va13 cancy shall not be taken into account under 

14 paragraph (1). 

15 (5) EXCLUSION.—Subsection (a)(1) shall not 

16 affect appointments to positions within the United 

17 States Postal Service or the Postal Regulatory Com18 mission, and no employee of the United States Post19 al Service or the Postal Regulatory Commission shall 

20 be taken into account for purposes of any deter21 mination under subsection (a)(1) of the number of 

22 full-time civilian employees in permanent positions in 

23 the executive branch at any time. 

24 (c) PROVISIONS RELATING TO LIMITATION UNDER

25 SUBSECTION (a)(2).—For purposes of subsection (a)(2), 


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1 the Director may reassign authorized temporary and part2 time employment from one agency to another agency when 

3 such reassignment is, in the opinion of the Director, nec4 essary or appropriate because of the creation of a new 

5 agency, because of a change in function, or for the more 

6 efficient operation of the Government. 

7 (d) TREATMENT OF CERTAIN EMPLOYEES; AGENCY

8 DEFINED.—For purposes of this section— 

9 (1) there shall not be taken into account— 

10 (A) any position filled by appointment by 

11 the President by and with the advice and con12 sent of the Senate, other than for purposes of 

13 determining under subsection (a)(1) the number 

14 of full-time civilian employees in permanent po15 sitions in the executive branch at any time; or 

16 (B) casual employees or employees serving 

17 without compensation; and 

18 (2) the term ‘‘agency’’ or ‘‘agency in the execu19 tive branch’’ means an Executive department, a 

20 Government corporation, and an independent estab21 lishment (as those terms are defined in chapter 1 of 

22 title 5, United States Code), but does not include 

23 the Government Accountability Office. 

24 (e) DISPOSITION OF SAVINGS.—The Director shall 

25 maintain a continuous study of all appropriations and conVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 tract authorizations in relation to personnel employed and 

2 shall reserve from expenditure the savings in salaries and 

3 wages resulting from the operation of this section, and any 

4 savings in other categories of expense which the Director 

5 determines will result from such operation. 

6 (f) INFORMATION.—Agencies in the executive branch 

7 shall submit to the Director such information as may be 

8 necessary to enable the Director to carry out the functions 

9 of the Director under this section. 

10 (g) REPORTS.—The Director shall submit to each 

11 House of Congress, at the end of each calendar quarter, 

12 a report on the operation of this section. 

13 (h) REEMPLOYMENT RIGHTS NOT AFFECTED.— 

14 Nothing in this section shall supersede or modify the re15 employment rights of any person under chapter 43 of title 

16 38, United States Code, or any other provision of law con17 ferring reemployment rights upon persons who have per18 formed service in the uniformed services. 

19 (i) REGULATIONS.—The Director shall prescribe any 

20 regulations necessary to carry out the purposes of this sec21 tion. 

22 (j) EFFECTIVE DATE.—This section (other than sub23 section (i)) shall take effect on the first day of the first 

24 month which begins after the date of the enactment of 

25 this Act. 


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1 SEC. 403. INELIGIBILITY OF PERSONS HAVING SERIOUSLY 

2 DELINQUENT TAX DEBTS FOR FEDERAL EM3 PLOYMENT. 

4 (a) IN GENERAL.—Chapter 73 of title 5, United 

5 States Code, is amended by adding at the end the fol6 lowing: 

7 ‘‘SUBCHAPTER VIII—INELIGIBILITY OF PER8 SONS HAVING SERIOUSLY DELINQUENT 

9 TAX DEBTS FOR FEDERAL EMPLOYMENT 

10 ‘‘§ 7381. Ineligibility of persons having seriously de11 linquent tax debts for Federal employ12 ment 

13 ‘‘(a) DEFINITION.—For purposes of this section— 

14 ‘‘(1) the term ‘seriously delinquent tax debt’ 

15 means an outstanding debt under the Internal Rev16 enue Code of 1986 for which a notice of lien has 

17 been filed in public records pursuant to section 6323 

18 of such Code, except that such term does not in19 clude— 

20 ‘‘(A) a debt that is being paid in a timely 

21 manner pursuant to an agreement under sec22 tion 6159 or section 7122 of such Code; and 

23 ‘‘(B) a debt with respect to which a collec24 tion due process hearing under section 6330 of 

25 such Code, or relief under subsection (a), (b), 


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1 or (f) of section 6015 of such Code, is re2 quested or pending; and 

3 ‘‘(2) the term ‘Federal employee’ means— 

4 ‘‘(A) an employee, as defined by section 

5 2105; and 

6 ‘‘(B) an employee of the United States 

7 Postal Service or of the Postal Regulatory Com8 mission. 

9 ‘‘(b) INELIGIBILITY FOR FEDERAL EMPLOYMENT.— 

10 An individual who has a seriously delinquent tax debt shall 

11 be ineligible to be appointed, or to continue serving, as 

12 a Federal employee. 

13 ‘‘(c) EXCEPTION FOR NATIONAL SECURITY, ETC.— 

14 Nothing in subsection (b) shall— 

15 ‘‘(1) apply in the case of any individual whose 

16 services are required for reasons of national security, 

17 as determined by the President in writing; or 

18 ‘‘(2) prevent the continued service of any officer 

19 whose appointment is required to be made by the 

20 President, by and with the advice and consent of the 

21 Senate. 

22 ‘‘(d) REGULATIONS.—The Office of Personnel Man23 agement shall, for purposes of carrying out this section 

24 with respect to the executive branch, prescribe any regula25 tions which the Office considers necessary.’’. 


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1 (b) CLERICAL AMENDMENT.—The analysis for chap2 ter 73 of title 5, United States Code, is amended by add3 ing at the end the following: 

‘‘SUBCHAPTER VIII—INELIGIBILITY OF PERSONS HAVING SERIOUSLY

DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT

‘‘7381. Ineligibility of persons having seriously delinquent tax debts for Federal 

employment.’’. 

4 SEC. 404. REPEAL OF CERTAIN PROVISIONS RELATING TO 

5 OFFICIAL TIME FOR FEDERAL EMPLOYEES. 

6 Subsections (a) and (c) of section 7131 of title 5, 

7 United States Code, are repealed. 

8 TITLE V—PROGRAM ELIMI9 NATIONS AND RELATED PRO10 VISIONS 

11 Subtitle A—Provisions Relating to 

12 Program Eliminations 

13 SEC. 501. PROGRAM ELIMINATIONS. 

14 (a) IN GENERAL.—No funds appropriated or other15 wise available to any Federal department or agency may 

16 be obligated or expended for any program or other purpose 

17 described in subsection (b). 

18 (b) PROGRAMS AND PURPOSES DESCRIBED.—The 

19 programs and purposes described in this subsection are 

20 as follows: 

21 (1) The Legal Services Corporation. 

22 (2) The Save America’s Treasures program. 

23 (3) The National Heritage Areas program. 


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1 (4) The National Endowment for the Arts. 

2 (5) The National Endowment for the Human3 ities. 

4 (6) Subpart 3 of part D of title II of the Ele5 mentary and Secondary Education Act of 1965 (20 

6 U.S.C. 6775; relating to the Ready-to-Learn Tele7 vision program). 

8 (7) Subpart 12 of part D of title V of the Ele9 mentary and Secondary Education Act of 1965 (20 

10 U.S.C. 7265 et seq.; relating to educational, cul11 tural, apprenticeship, and exchange programs for 

12 Alaska Natives, Native Hawaiians, and their histor13 ical whaling and trading partners in Massachusetts). 

14 (8) The National and Community Service Act 

15 of 1990 (Public Law 101–610; 42 U.S.C. 12501 et 

16 seq.). 

17 (9) United States contributions to the Inter18 national Fund for Ireland. 

19 (10) The Trade and Development Agency. 

20 (11) The Woodrow Wilson Memorial Act of 

21 1968 (82 Stat. 1356). 

22 (12) United States economic assistance to 

23 Egypt. 

24 (13) The United States Agency for Inter25 national Development. 


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1 (14) United States contributions to the Inter2 governmental Panel on Climate Change. 

3 (15) The John C. Stennis Center for Public 

4 Service Training and Development. 

5 (16) The essential air service program of the 

6 Federal Aviation Administration authorized by sub7 chapter II of chapter 417 of title 49, United States 

8 Code. 

9 (17) The new starts program of the Federal 

10 Transit Administration authorized by section 5309 

11 of title 49, United States Code. 

12 (18) Beach replenishment projects of the Corps 

13 of Engineers. 

14 (19) The Appalachian Regional Commission. 

15 (20) The Economic Development Administra16 tion. 

17 (21) Capital and preventive maintenance 

18 projects for the Washington Metropolitan Area 

19 Transit Authority authorized by title VI of the Pas20 senger Rail Investment and Improvement Act of 

21 2008 (122 Stat. 4968). 

22 (22) Title X of the Public Health Service Act 

23 (42 U.S.C. 300 et seq.; relating to population re24 search and voluntary family planning programs). 


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1 (23) The weatherization program authorized by 

2 part A of title IV of the Energy Conservation and 

3 Production Act (42 U.S.C. 6861 et seq.). 

4 (24) The FreedomCAR and Fuel Partnership 

5 in the Vehicle Technologies Program of the Depart6 ment of Energy. 

7 (25) The Energy Star program authorized by 

8 section 324A of the Energy Policy and Conservation 

9 Act (42 U.S.C. 6294a). 

10 (26) The Corporation for Public Broadcasting. 

11 (27) Amtrak. 

12 (28) Grants supporting intercity rail passenger 

13 service and high-speed rail. 

14 (29) Applied research sponsored by the Depart15 ment of Energy. 

16 (30) The Technology Innovation Program au17 thorized by section 28 of the National Institute of 

18 Standards and Technology Act (15 U.S.C. 278n). 

19 (31) The Hollings Manufacturing Extension 

20 Partnership and all other programs authorized by 

21 section 25 of the National Institute of Standards 

22 and Technology Act (15 U.S.C. 278k). 

23 (32) The Community Development Fund of the 

24 Department of Housing and Urban Development. 


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1 (33) The HOPE VI program of the Depart2 ment of Housing and Urban Development author3 ized by section 24 of the United States Housing Act 

4 of 1937 (42 U.S.C. 1437v). 

5 (34) Grants provided under Edward Byrne Me6 morial Justice Assistance Grant Program under sub7 part 1 of part E of title I of the Omnibus Crime 

8 Control and Safe Streets Act of 1968 (42 U.S.C. 

9 3750 et seq.) insofar as such grants are for pre-trial 

10 bail services. 

11 (35) United States contributions to the Organi12 zation for Economic Cooperation and Development. 

13 (36) The U.S. Ambassadors Fund for Cultural 

14 Preservation. 

15 (37) Doctoral dissertation research grants au16 thorized under title V of the Housing and Urban 

17 Development Act of 1970 (12 U.S.C. 1701z–1 et 

18 seq.). 

19 (c) TECHNICAL AND CONFORMING CHANGES.—Not 

20 later than 6 months after the date of enactment of this 

21 Act, the President shall submit to Congress a legislative 

22 proposal providing for such technical and conforming 

23 changes in the law as are required by the provisions of 

24 this section. 


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1 SEC. 502. REPEAL OF NATIONAL ORGANIC CERTIFICATION 

2 COST-SHARE PROGRAM. 

3 (a) REPEAL OF AUTHORITY FOR PROGRAM.—Section 

4 10606 of the Farm Security and Rural Investment Act 

5 of 2002 (7 U.S.C. 6523) is repealed. 

6 (b) TERMINATION OF OBLIGATIONS FOR PRO7 GRAM.—On and after the date of enactment of this Act, 

8 no funds shall be obligated to carry out the national or9 ganic certification cost-share program established under 

10 section 10606(a) of the Farm Security and Rural Invest11 ment Act of 2002 (7 U.S.C. 6523). 

12 SEC. 503. PROHIBITING UNAUTHORIZED PAYMENTS TO DIS13 TRICT OF COLUMBIA. 

14 No funds appropriated or otherwise available to any 

15 Federal department or agency may be obligated or ex16 pended for any payment to the District of Columbia unless 

17 the payment is authorized by a law other than the law 

18 making the appropriation of the funds involved. 

19 SEC. 504. PROHIBITING PAYMENT OF GRATUITIES TO SUR20 VIVORS OF MEMBERS OF CONGRESS. 

21 (a) PROHIBITION.—No payment may be made from 

22 the applicable accounts of the House of Representatives, 

23 the contingent fund of the Senate, or any other appro24 priated funds for a death gratuity payment to the widow, 

25 widower, or heirs-at-law of any Member of Congress who 


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1 dies after the commencement of the Congress to which the 

2 Member has been elected. 

3 (b) NO EFFECT ON OTHER PAYMENTS TO SUR4 VIVORS.—Nothing in subsection (a) shall be construed to 

5 prohibit or affect the payment to any individual of any 

6 unpaid balance or salary or other sums due to a Member 

7 of Congress who dies after the commencement of the Con8 gress to which the Member has been elected. 

9 (c) DEFINITION.—For purposes of this section, the 

10 term ‘‘Member of Congress’’ means a Senator or a Rep11 resentative in, or Delegate or Resident Commissioner to, 

12 the Congress. 

13 SEC. 505. DAVIS-BACON REPEAL ACT. 

14 (a) SHORT TITLE.—This section may be cited as the 

15 ‘‘Davis-Bacon Repeal Act’’. 

16 (b) REPEAL OF DAVIS-BACON WAGE REQUIRE17 MENTS.—Subchapter IV of chapter 31 of title 40, United 

18 States Code, is repealed. 

19 (c) EFFECTIVE DATE AND LIMITATION.—The 

20 amendments made by subsection (b) shall take effect 30 

21 days after the date of the enactment of this Act but shall 

22 not affect any contract in existence on such date of enact23 ment or made pursuant to invitation for bids outstanding 

24 on such date of enactment. 


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1 SEC. 506. PRIORITIES IN EDUCATION SPENDING ACT. 

2 (a) SHORT TITLE.—This section may be cited as the 

3 ‘‘Priorities in Education Spending Act’’. 

4 (b) ELEMENTARY AND SECONDARY EDUCATION PRO5 GRAMS.—The following provisions of the Elementary and 

6 Secondary Education Act of 1965 (20 U.S.C. 6301 et 

7 seq.) are hereby repealed: 

8 (1) Subpart 3 of part B of title I (20 U.S.C. 

9 6381 et seq.; relating to the William F. Goodling 

10 Even Start Family Literacy programs). 

11 (2) Subpart 4 of part B of title I (20 U.S.C. 

12 6383; relating to improving literacy through school 

13 libraries). 

14 (3) Section 1504 of part E of title I (20 U.S.C. 

15 6494; relating to the Close Up Fellowship program). 

16 (4) Part F of title I (20 U.S.C. 6511 et seq.; 

17 relating to comprehensive school reform). 

18 (5) Section 2151(b) of subpart 5 of part A of 

19 title II (20 U.S.C. 6651(b); relating to school leader20 ship). 

21 (6) Section 2151(c) of subpart 5 of part A of 

22 title II (20 U.S.C. 6651(c); relating to advanced cer23 tification or advanced credentialing). 

24 (7) Subpart 2 of part C of title II (20 U.S.C. 

25 6701 et seq.; relating to the National Writing 

26 Project). 


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1 (8) Subpart 4 of part C of title II (20 U.S.C. 

2 6721 et seq.; relating to the teaching of traditional 

3 American history). 

4 (9) Part D of title II (20 U.S.C. 6751 et seq.; 

5 relating to enhancing education through technology). 

6 (10) Subpart 4 of part B of title III (20 U.S.C. 

7 6961 et seq.; relating to the Emergency Immigrant 

8 Education program). 

9 (11) Section 4129 of subpart 2 of part A of 

10 title IV (20 U.S.C. 7139; relating to grants to re11 duce alcohol abuse). 

12 (12) Section 4130 of subpart 2 of part A of 

13 title IV (20 U.S.C. 7140; relating to mentoring pro14 grams). 

15 (13) Subpart 2 of part D of title V (20 U.S.C. 

16 7245; relating to elementary and secondary school 

17 counseling programs). 

18 (14) Subpart 4 of part D of title V (20 U.S.C. 

19 7249; relating to smaller learning communities). 

20 (15) Subpart 5 of part D of title V (20 U.S.C. 

21 7251; relating to the Reading is Fundamental—In22 expensive Book Distribution program). 

23 (16) Subpart 7 of part D of title V (20 U.S.C. 

24 7255 et seq.; commonly referred to as the ‘‘Star 

25 Schools Act’’). 


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1 (17) Subpart 8 of part D of title V (20 U.S.C. 

2 7257 et seq.; relating to the Ready to Teach pro3 gram). 

4 (18) Subpart 9 of part D of title V (20 U.S.C. 

5 7259 et seq.; commonly referred to as the ‘‘Foreign 

6 Language Assistance Act of 2001’’). 

7 (19) Subpart 10 of part D of title V (20 U.S.C. 

8 7261 et seq.; commonly referred to as the ‘‘Carol M. 

9 White Physical Education Program’’). 

10 (20) Subpart 11 of part D of title V (20 U.S.C. 

11 7263 et seq.; relating to community technology cen12 ters). 

13 (21) Subpart 12 of part D of title V (20 U.S.C. 

14 7265 et seq.; relating to educational, cultural, ap15 prenticeship, and exchange programs for Alaska Na16 tives, Native Hawaiians, and their historical whaling 

17 and trading partners in Massachusetts). 

18 (22) Subpart 14 of part D of title V (20 U.S.C. 

19 7269 et seq.; relating to grants to improve mental 

20 health of children). 

21 (23) Subpart 15 of part D of title V (20 U.S.C. 

22 7271; relating to arts in education). 

23 (24) Subpart 18 of part D of title V (20 U.S.C. 

24 7277 et seq.; relating to healthy, high-performance 

25 schools). 


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1 (25) Subpart 20 of part D of title V (20 U.S.C. 

2 7281 et seq.; relating to additional assistance for 

3 certain local educational agencies impacted by Fed4 eral property acquisition). 

5 (26) Subpart 21 of part D of title V (20 U.S.C. 

6 7283 et seq.; commonly referred to as the ‘‘Women’s 

7 Educational Equity Act of 2001’’). 

8 (27) Part B of title VII (20 U.S.C. 7511 et 

9 seq.; commonly referred to as the ‘‘Native Hawaiian 

10 Education Act’’). 

11 (28) Part C of title VII (20 U.S.C. 7541 et 

12 seq.; commonly referred to as the ‘‘Alaska Native 

13 Educational Equity, Support, and Assistance Act’’). 

14 (c) EARLY LEARNING OPPORTUNITIES ACT.—Title 

15 VIII of H.R. 5656 of the 106th Congress (20 U.S.C. 9401 

16 et seq.; 114 Stat. 2763, 2763A–77; commonly referred to 

17 as the ‘‘Early Learning Opportunities Act’’), enacted by 

18 section 1 of Public Law 106–554, is hereby repealed. 

19 (d) HIGHER EDUCATION PROGRAMS.— 

20 (1) HIGHER EDUCATION ACT OF 1965.—The fol21 lowing provisions of the Higher Education Act of 

22 1965 (20 U.S.C. 1001 et seq.) are hereby repealed: 

23 (A) Section 317 (20 U.S.C. 1059d; relat24 ing to Alaska Native and Native Hawaiian-serv25 ing institutions). 


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1 (B) Subpart 6 of part A of title IV (20 

2 U.S.C. 1070d–31 et seq.; relating to the Byrd 

3 Honors Scholarship Program). 

4 (C) Subpart 9 of part A of title IV (20 

5 U.S.C. 1070g et seq.; relating to TEACH 

6 Grants). 

7 (D) Section 428L (20 U.S.C. 1078–12; re8 lating to loan repayment for civil legal assist9 ance attorneys). 

10 (E) Section 432(n) (20 U.S.C. 1082(n); 

11 relating to default reduction management). 

12 (F) Subpart 3 of part A of title VII (20 

13 U.S.C. 1136 et seq.; relating to the Thurgood 

14 Marshall Legal Educational Opportunity Pro15 gram). 

16 (G) Subpart 1 of part D of title VII (20 

17 U.S.C. 1140a et seq.; relating to demonstration 

18 projects to support postsecondary faculty, staff, 

19 and administrators in educating students with 

20 disabilities). 

21 (H) Part E of title VII (20 U.S.C. 1141; 

22 relating to the College Access Challenge Grant 

23 program). 

24 (I) Part C of title VIII (20 U.S.C. 1161c; 

25 relating to business workforce partnerships for 


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1 job skill training in high-growth occupations or 

2 industries). 

3 (J) Part G of title VIII (20 U.S.C. 1161h; 

4 relating to the Patsy Mink Fellowship pro5 gram). 

6 (K) Part I of title VIII (20 U.S.C. 1161i 

7 et seq.; relating to the Early Childhood Edu8 cation Professional Development and Career 

9 Task Force). 

10 (L) Part J of title VIII (20 U.S.C. 1161j; 

11 relating to improving science, technology, engi12 neering, and mathematics education with a 

13 focus on Alaska Native and Native Hawaiian 

14 students). 

15 (M) Part K of title VIII (20 U.S.C. 1161k; 

16 relating to pilot programs to increase college 

17 persistence and success). 

18 (N) Part M of title VIII (20 U.S.C. 

19 1161m; relating to low tuition). 

20 (O) Part N of title VIII (20 U.S.C. 1161n 

21 et seq.; relating to cooperative education). 

22 (P) Part P of title VIII (20 U.S.C. 1161p; 

23 relating to grants to create bridges from jobs to 

24 careers). 


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1 (Q) Part Q of title VIII (20 U.S.C. 1161q; 

2 relating to rural development grants). 

3 (R) Part S of title VIII (20 U.S.C. 1161s; 

4 relating to training for realtime writers). 

5 (S) Part V of title VIII (20 U.S.C. 1161v; 

6 relating to modeling and simulation programs). 

7 (T) Part W of title VIII (20 U.S.C. 

8 1161w; relating to Path to Success). 

9 (U) Part X of title VIII (20 U.S.C. 1161x; 

10 relating to the School of Veterinary Medicine 

11 Competitive Grant Program). 

12 (V) Part Z of title VIII (20 U.S.C. 1161z; 

13 relating to the Henry Kuualoha Giugni Kupuna 

14 Memorial Archives). 

15 (2) HIGHER EDUCATION AMENDMENTS OF

16 1998.—The following provisions of the Higher Edu17 cation Amendments of 1998 (Public Law 105–244) 

18 are hereby repealed: 

19 (A) Part D of title VIII (20 U.S.C. 1151; 

20 relating to the Incarcerated Youth Program). 

21 (B) Part H of title VIII (20 U.S.C. 1153; 

22 relating to the Underground Railroad Edu23 cational and Cultural Program). 

24 (3) OTHER HIGHER EDUCATION LAWS.—The 

25 following provisions of law are hereby repealed: 


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1 (A) Section 121 of the Education of the 

2 Deaf Act of 1986 (20 U.S.C. 4341; relating to 

3 Cultural Experiences Grants). 

4 (B) Section 802 of the Higher Education 

5 Opportunity Act (20 U.S.C. 9631; relating to 

6 the National Center for Research in Advanced 

7 Information and Digital Technologies). 

8 (C) Section 5(c) of the Stevenson-Wydler 

9 Technology Innovation Act of 1980 (15 U.S.C. 

10 3704(c); relating to the Minority Serving Insti11 tution Digital and Wireless Technology Oppor12 tunity Program). 

13 (D) Part E of title XV of the Higher Edu14 cation Amendments of 1992 (20 U.S.C. 1070 

15 note; Public Law 102–325; relating to B.J. 

16 Stupak Olympic Scholarships). 

17 (e) LITERACY PROGRAM FOR PRISONERS.—Notwith18 standing the provisions under the heading ‘‘Safe Schools 

19 and Citizenship Education’’ in title III of division F of 

20 Public Law 108–447 (118 Stat. 3145), the Secretary may 

21 not obligate any funds to carry out section 601 of the Na22 tional Literacy Act of 1991 (Public Law 102–73; 105 

23 Stat. 356; relating to literacy for prisoners). 

24 (f) LOAN REPAYMENT FOR PROSECUTORS AND PUB25 LIC DEFENDERS.—The first part JJ of title I of the OmVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 nibus Crime Control and Safe Streets Act of 1968 (section 

2 952 of Public Law 110–315; relating to loan repayment 

3 for prosecutors and public defenders) is hereby repealed. 

4 (g) CAREER AND TECHNICAL EDUCATION PRO5 GRAMS.—Title II of the Carl D. Perkins Career and Tech6 nical Education Act of 2006 (20 U.S.C. 2371 et seq.) is 

7 hereby repealed. 

8 (h) SPECIAL OLYMPICS SPORT AND EMPOWERMENT

9 ACT OF 2004 PROGRAM.—Section 3(a) of the Special 

10 Olympics Sport and Empowerment Act of 2004 (42 

11 U.S.C. 15001 note; relating to education activities) is 

12 hereby repealed. 

13 (i) HEAD START ACT PROGRAM.—Section 657B of 

14 the Head Start Act (42 U.S.C. 9852b; relating to Centers 

15 of Excellence in Early Childhood) is hereby repealed. 

16 (j) WORKFORCE INVESTMENT ACT PROGRAM.—Sec17 tion 171(e) of the Workforce Investment Act (20 U.S.C. 

18 2916(e); relating to the Energy Efficiency and Renewable 

19 Energy Worker Training Program) is hereby repealed. 

20 (k) THE NATIONAL ENVIRONMENTAL EDUCATION

21 ACT.—The National Environmental Education Act (20 

22 U.S.C. 5501 et seq.) is hereby repealed. 

23 (l) AMERICA COMPETES ACT.—Part I of subtitle 

24 A of title VI of the America COMPETES Act (20 U.S.C. 


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1 9811 et seq.; relating to Teachers for a Competitive To2 morrow) is hereby repealed. 

3 SEC. 507. REPEAL OF TEMPORARY INCREASE OF MEDICAID 

4 FMAP. 

5 Effective as of the date of the enactment of this Act, 

6 section 5001 of the American Recovery and Reinvestment 

7 Act of 2009 (42 U.S.C. 1396d note) (relating to the tem8 porary increase of the Medicaid FMAP) is repealed. 

9 SEC. 508. MORATORIUM ON CONSTRUCTION OR LEASING 

10 OF NEW FEDERAL BUILDINGS IN DISTRICT 

11 OF COLUMBIA UNTIL JANUARY 2013. 

12 (a) PROHIBITION.—No funds may be expended for 

13 the construction or lease of buildings or space in the Dis14 trict of Columbia for any branch of the United States Gov15 ernment or any entity within such branch unless a con16 tract for the construction or lease was entered into before 

17 the date of enactment of this Act. 

18 (b) EXCEPTION.—The prohibition contained in sub19 section (a) does not apply in any case in which the expend20 iture of funds for the purposes described in subsection (a) 

21 is necessary in the interests of national security. 

22 (c) EXPIRATION.—The prohibition contained in sub23 section (a) shall expire on January 1, 2013. 


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1 Subtitle B—Elimination of Presi2 dential Election Campaign Fund 

3 SEC. 511. TERMINATION OF TAXPAYER FINANCING OF 

4 PRESIDENTIAL ELECTION CAMPAIGNS. 

5 (a) TERMINATION OF DESIGNATION OF INCOME TAX

6 PAYMENTS.—Section 6096 of the Internal Revenue Code 

7 of 1986 is amended by adding at the end the following 

8 new subsection: 

9 ‘‘(d) TERMINATION.—This section shall not apply to 

10 taxable years beginning after December 31, 2010.’’. 

11 (b) TERMINATION OF FUND AND ACCOUNT.— 

12 (1) TERMINATION OF PRESIDENTIAL ELECTION

13 CAMPAIGN FUND.— 

14 (A) IN GENERAL.—Chapter 95 of subtitle 

15 H of such Code is amended by adding at the 

16 end the following new section: 

17 ‘‘SEC. 9014. TERMINATION. 

18 ‘‘The provisions of this chapter shall not apply with 

19 respect to any Presidential election (or any Presidential 

20 nominating convention) after December 31, 2010, or to 

21 any candidate in such an election.’’. 

22 (B) TRANSFER OF EXCESS FUNDS TO GEN23 ERAL FUND.—Section 9006 of such Code is 

24 amended by adding at the end the following 

25 new subsection: 


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1 ‘‘(d) TRANSFER OF FUNDS REMAINING AFTER

2 2009.—The Secretary shall transfer all amounts in the 

3 fund after December 31, 2011, to the general fund of the 

4 Treasury.’’. 

5 (2) TERMINATION OF ACCOUNT.—Chapter 96 

6 of subtitle H of such Code is amended by adding at 

7 the end the following new section: 

8 ‘‘SEC. 9043. TERMINATION. 

9 ‘‘The provisions of this chapter shall not apply to any 

10 candidate with respect to any Presidential election after 

11 December 31, 2010.’’. 

12 (c) CLERICAL AMENDMENTS.— 

13 (1) The table of sections for chapter 95 of sub14 title H of such Code is amended by adding at the 

15 end the following new item: 

‘‘Sec. 9014. Termination.’’. 

16 (2) The table of sections for chapter 96 of sub17 title H of such Code is amended by adding at the 

18 end the following new item: 

‘‘Sec. 9043. Termination.’’. 

19 Subtitle C—Repeal of Sugar Price 

20 Support and Other Programs 

21 SEC. 521. REPEAL OF SUGAR PRICE SUPPORT PROGRAM 

22 AND MARKETING ALLOTMENTS FOR SUGAR. 

23 (a) SUGAR PROGRAM.— 


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1 (1) REPEAL.—Section 156 of the Federal Agri2 culture Improvement and Reform Act of 1996 (7 

3 U.S.C. 7272) is repealed. 

4 (2) RELATED FEEDSTOCK FLEXIBILITY PRO5 GRAM FOR BIOENERGY PRODUCERS.—Section 9010 

6 of the Farm Security and Rural Investment Act of 

7 2002 (7 U.S.C. 8110) is repealed. 

8 (b) MARKETING ALLOTMENTS FOR SUGAR.— 

9 (1) REPEAL.—Part VII of subtitle B of title III 

10 of the Agricultural Adjustment Act of 1938 (7 

11 U.S.C. 1359aa–1359ll), except section 359k (7 

12 U.S.C. 1359kk), is repealed. 

13 (2) CONFORMING AMENDMENT.—Section 359k 

14 of the Agricultural Adjustment Act of 1938 (7 

15 U.S.C. 1359kk) is amended to read as follows: 

16 ‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 

17 ‘‘(a) ESTABLISHMENT.—Except as provided in sub18 section (c) and notwithstanding any other provision of law, 

19 the Secretary shall establish the tariff-rate quotas for raw 

20 cane sugar and refined sugars for a quota year at the level 

21 necessary to ensure— 

22 ‘‘(1) a robust and competitive sugar processing 

23 industry in the United States; and 

24 ‘‘(2) an adequate supply of sugar at reasonable 

25 prices in the United States. 


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1 ‘‘(b) FACTORS.—In determining the tariff-rate 

2 quotas necessary to satisfy the requirements of para3 graphs (1) and (2) of subsection (a), the Secretary shall 

4 consider the following: 

5 ‘‘(1) The quantity of sugar that will be subject 

6 to human consumption in the United States during 

7 the quota year. 

8 ‘‘(2) The quantity of sugar that will be avail9 able from the domestic processing of sugarcane, 

10 sugar beets, and in-process beet sugar. 

11 ‘‘(3) The quantity of sugar that would provide 

12 for reasonable carryover stocks. 

13 ‘‘(4) The quantity of sugar that will be avail14 able from carry-over stocks for human consumption 

15 in the United States during the quota year. 

16 ‘‘(5) United States obligations under inter17 national trade agreements that have been approved 

18 by Congress. 

19 ‘‘(c) EXCEPTION.—Subsection (a) shall not apply to 

20 specialty sugar.’’. 

21 (c) PERMANENT PRICE SUPPORT LEVELS FOR DES22 IGNATED NONBASIC AGRICULTURAL COMMODITIES.— 

23 (1) REPEAL.—Section 201(a) of the Agricul24 tural Act of 1949 (7 U.S.C. 1446(a)) is amended by 


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1 striking ‘‘milk, sugar beets, and sugarcane’’ and in2 serting ‘‘and milk’’. 

3 (2) CONFORMING AMENDMENT.—Section 301 

4 of the Agricultural Act of 1949 (7 U.S.C. 1447) is 

5 amended by inserting ‘‘(other than sugar beets and 

6 sugarcane)’’ after ‘‘any nonbasic agricultural com7 modity’’. 

8 (d) STORAGE FACILITY LOANS.—Section 1402 of the 

9 Farm Security and Rural Investment Act of 2002 (7 

10 U.S.C. 7971) is repealed. 

11 (e) STORAGE PAYMENTS.—Section 167 of the Fed12 eral Agriculture Improvement and Reform Act of 1996 (7 

13 U.S.C. 7287) is repealed. 

14 SEC. 522. REPEAL OF MARKET ACCESS PROGRAM. 

15 (a) REPEAL OF PROGRAM.—Section 203 of the Agri16 cultural Trade Act of 1978 (7 U.S.C. 5623) is repealed. 

17 (b) REPEAL OF FUNDING.—Section 211 of the Agri18 cultural Trade Act of 1978 (7 U.S.C. 5641) is amended 

19 by striking subsection (c). 

20 SEC. 523. TERMINATION OF AVAILABILITY OF MARKETING 

21 ASSISTANCE LOANS AND LOAN DEFICIENCY 

22 PAYMENTS FOR MOHAIR PRODUCERS. 

23 (a) REMOVAL OF MOHAIR FROM ELIGIBLE LOAN

24 COMMODITIES.—Section 1001(8) of the Food, ConservaVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 tion, and Energy Act of 2008 (7 U.S.C. 8702(8)) is 

2 amended by striking ‘‘mohair,’’. 

3 (b) ELIMINATION OF FUTURE LOAN RATES FOR MO4 HAIR.—Section 1202(c) of such Act (7 U.S.C. 8732(c)) 

5 is amended by striking paragraph (18). 

6 Subtitle D—Federal Real Property 

7 Disposal Pilot Program 

8 SEC. 531. FEDERAL REAL PROPERTY DISPOSAL PILOT PRO9 GRAM. 

10 (a) IN GENERAL.—Chapter 5 of subtitle I of title 40, 

11 United States Code, is amended by adding at the end the 

12 following: 

13 ‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF 

14 REAL PROPERTY 

15 ‘‘§ 621. Pilot program 

16 ‘‘(a) The Director of the Office of Management and 

17 Budget (in this subchapter referred to as the ‘Director’) 

18 shall conduct a pilot program, to be known as the ‘Federal 

19 Real Property Disposal Pilot Program’, under which real 

20 property that is not meeting Federal Government needs 

21 may be disposed of in accordance with this subchapter. 

22 ‘‘(b) For purposes of this subchapter, the Director 

23 shall identify criteria for determining whether real prop24 erty is not meeting Federal Government needs. 


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1 ‘‘(c) For the fiscal years 2011 through 2020, the Di2 rector shall dispose of real property generating proceeds 

3 of not less $19,000,000,000 under the Federal Real Prop4 erty Disposal Pilot Program. 

5 ‘‘(d) The Director shall not include for purposes of 

6 the Federal Real Property Disposal Pilot Program any 

7 parcel of real property, building, or other structure located 

8 on such real property that is to be closed or realigned 

9 under the Defense Base Closure and Realignment Act of 

10 1990 (10 U.S.C. 2687 note). 

11 ‘‘(e) The Federal Real Property Disposal Pilot Pro12 gram shall terminate on September 30, 2020. 

13 ‘‘§ 622. Selection of real properties 

14 ‘‘Agencies will recommend candidate disposition 

15 properties to the Director for participation in the pilot 

16 program. The Director, with the concurrence of the head 

17 of the executive agency concerned and consistent with the 

18 criteria established in section 621, may then select such 

19 candidate properties for participation in the pilot program 

20 and notify the recommending agency accordingly. 

21 ‘‘§ 623. Expedited disposal requirements 

22 ‘‘(a) For purposes of the pilot program, an ‘expedited 

23 disposal of a real property’ is a sale of real property for 

24 cash that is conducted pursuant to the requirements of 

25 section 545 of this title. 


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1 ‘‘(b) Real property sold under the pilot program must 

2 be sold at not less than the fair market value as deter3 mined by the Director in consultation with the head of 

4 the executive agency. Costs associated with disposal may 

5 not exceed the fair market value of the property unless 

6 the Director approves incurring such costs. 

7 ‘‘(c) A real property may be sold under the pilot pro8 gram only if the property will generate monetary proceeds 

9 to the Federal Government, as provided in subsection (b). 

10 A disposal of real property under the pilot program may 

11 not include any exchange, trade, transfer, acquisition of 

12 like-kind property, or other noncash transaction as part 

13 of the disposal. 

14 ‘‘(d) Nothing in this subchapter shall be construed 

15 as terminating or in any way limiting authorities that are 

16 otherwise available to agencies under other provisions of 

17 law to dispose of Federal real property, except as provided 

18 in subsection (e). 

19 ‘‘(e) Any expedited disposal of a real property con20 ducted under this section shall not be subject to— 

21 ‘‘(1) subchapter IV of this chapter; 

22 ‘‘(2) sections 550 and 553 of title 40, United 

23 States Code; 

24 ‘‘(3) section 501 of the McKinney-Vento Home25 less Assistance Act (42 U.S.C. 11411); 


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1 ‘‘(4) any other provision of law authorizing the 

2 no-cost conveyance of real property owned by the 

3 Federal Government; or 

4 ‘‘(5) any congressional notification requirement 

5 other than that in section 545 of this title. 

6 ‘‘§ 624. Special rules for deposit and use of proceeds 

7 from expedited disposals 

8 ‘‘(a) Agencies that conduct expedited disposals of real 

9 properties under this subchapter shall be reimbursed from 

10 the proceeds for the administrative expenses associated 

11 with the disposal of such properties. Such amounts will 

12 be credited as offsetting collections to the account that in13 curred such expenses, to remain available until expended 

14 without further appropriations. 

15 ‘‘(b) After payment of such administrative costs, the 

16 balance of the proceeds shall be distributed as follows: 

17 ‘‘(1) 80 percent shall be deposited into the 

18 Treasury as miscellaneous receipts. 

19 ‘‘(2) 20 percent shall be deposited into the ac20 count of the agency that owned the real property 

21 and initiated the disposal action. Such funds shall be 

22 available without further appropriation, to remain 

23 available for the period of the pilot program, for ac24 tivities related to Federal real property capital im25 provements and disposal activities. Upon termination 


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1 of the pilot program, any unobligated amounts shall 

2 be transferred to the general fund of the Treasury.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 at the beginning of chapter 5 of subtitle I of title 40, 

5 United States Code, is amended by inserting after the 

6 item relating to section 611 the following: 

‘‘SUBCHAPTER VII—EXPEDITED DISPOSAL OF REAL PROPERTY

‘‘Sec. 621. Pilot program. 

‘‘Sec. 622. Selection of real properties. 

‘‘Sec. 623. Expedited disposal requirements. 

‘‘Sec. 624. Special rules for deposit and use of proceeds from expedited disposals.’’. 

7 TITLE VI—FANNIE MAE AND 

8 FREDDIE MAC 

9 SEC. 601. SHORT TITLE. 

10 This title may be cited as the ‘‘GSE Bailout Elimi11 nation and Taxpayer Protection Act’’. 

12 SEC. 602. DEFINITIONS. 

13 For purposes of this title, the following definitions 

14 shall apply: 

15 (1) CHARTER.—The term ‘‘charter’’ means— 

16 (A) with respect to the Federal National 

17 Mortgage Association, the Federal National 

18 Mortgage Association Charter Act (12 U.S.C. 

19 1716 et seq.); and 

20 (B) with respect to the Federal Home 

21 Loan Mortgage Corporation, the Federal Home 


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1 Loan Mortgage Corporation Act (12 U.S.C. 

2 1451 et seq.). 

3 (2) DIRECTOR.—The term ‘‘Director’’ means 

4 the Director of the Federal Housing Finance Agen5 cy. 

6 (3) ENTERPRISE.—The term ‘‘enterprise’’ 

7 means— 

8 (A) the Federal National Mortgage Asso9 ciation; and 

10 (B) the Federal Home Loan Mortgage 

11 Corporation. 

12 (4) GUARANTEE.—The term ‘‘guarantee’’ 

13 means, with respect to an enterprise, the credit sup14 port of the enterprise that is provided by the Fed15 eral Government through its charter as a Govern16 ment-sponsored enterprise. 

17 SEC. 603. TERMINATION OF CURRENT CONSERVATORSHIP. 

18 (a) IN GENERAL.—Upon the expiration of the period 

19 referred to in subsection (b), the Director of the Federal 

20 Housing Finance Agency shall determine, with respect to 

21 each enterprise, if the enterprise is financially viable at 

22 that time and— 

23 (1) if the Director determines that the enter24 prise is financially viable, immediately take all ac25 tions necessary to terminate the conservatorship for 


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1 the enterprise that is in effect pursuant to section 

2 1367 of the Federal Housing Enterprises Financial 

3 Safety and Soundness Act of 1992 (12 U.S.C. 

4 4617); or 

5 (2) if the Director determines that the enter6 prise is not financially viable, immediately appoint 

7 the Federal Housing Finance Agency as receiver 

8 under section 1367 of the Federal Housing Enter9 prises Financial Safety and Soundness Act of 1992 

10 and carry out such receivership under the authority 

11 of such section. 

12 (b) TIMING.—The period referred to in this sub13 section is, with respect to an enterprise— 

14 (1) except as provided in paragraph (2), the 24- 

15 month period beginning upon the date of the enact16 ment of this Act; or 

17 (2) if the Director determines before the expira18 tion of the period referred to in paragraph (1) that 

19 the financial markets would be adversely affected 

20 without the extension of such period under this 

21 paragraph with respect to that enterprise, and upon 

22 making such determination notifies the Congress in 

23 writing of such determination, the 30-month period 

24 beginning upon the date of the enactment of this 

25 Act. 


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1 (c) FINANCIAL VIABILITY.—The Director may not 

2 determine that an enterprise is financially viable for pur3 poses of subsection (a) if the Director determines that any 

4 of the conditions for receivership set forth in paragraph 

5 (3) or (4) of section 1367(a) of the Federal Housing En6 terprises Financial Safety and Soundness Act of 1992 (12 

7 U.S.C. 4617(a)) exist at the time with respect to the en8 terprise. 

9 SEC. 604. LIMITATION OF ENTERPRISE AUTHORITY UPON 

10 EMERGENCE FROM CONSERVATORSHIP. 

11 (a) REVISED AUTHORITY.—Upon the expiration of 

12 the period referred to in section 3(b), if the Director 

13 makes the determination under section 3(a)(1), the fol14 lowing provisions shall take effect: 

15 (1) REPEAL OF HOUSING GOALS.— 

16 (A) REPEAL.—The Federal Housing En17 terprises Financial Safety and Soundness Act 

18 of 1992 is amended by striking sections 1331 

19 through 1336 (12 U.S.C. 4561–6). 

20 (B) CONFORMING AMENDMENTS.—Federal 

21 Housing Enterprises Financial Safety and 

22 Soundness Act of 1992 is amended— 

23 (i) in section 1303(28) (12 U.S.C. 

24 4502(28)), by striking ‘‘and, for the purVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 poses’’ and all that follows through ‘‘des2 ignated disaster areas’’; 

3 (ii) in section 1324(b)(1)(A) (12 

4 U.S.C. 4544(b)(1)(A))— 

5 (I) by striking clauses (i), (ii), 

6 and (iv); 

7 (II) in clause (iii), by inserting 

8 ‘‘and’’ after the semicolon at the end; 

9 and 

10 (III) by redesignating clauses 

11 (iii) and (v) as clauses (i) and (ii), re12 spectively; 

13 (iii) in section 1338(c)(10) (12 U.S.C. 

14 4568(c)(10)), by striking subparagraph 

15 (E); 

16 (iv) in section 1339(h) (12 U.S.C. 

17 4569), by striking paragraph (7); 

18 (v) in section 1341 (12 U.S.C. 4581) 

19 (I) in subsection (a)— 

20 (aa) in paragraph (1), by in21 serting ‘‘or’’ after the semicolon 

22 at the end; 

23 (bb) in paragraph (2), by 

24 striking the semicolon at the end 

25 and inserting a period; and 


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1 (cc) by striking paragraphs 

2 (3) and (4); and 

3 (II) in subsection (b)(2)— 

4 (aa) in subparagraph (A), 

5 by inserting ‘‘or’’ after the semi6 colon at the end; 

7 (bb) by striking subpara8 graphs (B) and (C); and 

9 (cc) by redesignating sub10 paragraph (D) as subparagraph 

11 (B); 

12 (vi) in section 1345(a) (12 U.S.C. 

13 4585(a))— 

14 (I) in paragraph (1), by inserting 

15 ‘‘or’’ after the semicolon at the end; 

16 (II) in paragraph (2), by striking 

17 the semicolon at the end and inserting 

18 a period; and 

19 (III) by striking paragraphs (3) 

20 and (4); and 

21 (vii) in section 1371(a)(2) (12 U.S.C. 

22 4631(a)(2))— 

23 (I) by striking ‘‘with any housing 

24 goal established under subpart B of 

25 part 2 of subtitle A of this title,’’; and 


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1 (II) by striking ‘‘section 1336 

2 or’’. 

3 (2) PORTFOLIO LIMITATIONS.—Subtitle B of 

4 title XIII of the Housing and Community Develop5 ment Act of 1992 (12 U.S.C. 4611 et seq.) is 

6 amended by adding at the end the following new sec7 tion: 

8 ‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN9 TERPRISES. 

10 ‘‘(a) RESTRICTION.—No enterprise shall own, as of 

11 any applicable date in this subsection or thereafter, mort12 gage assets in excess of— 

13 ‘‘(1) upon the expiration of the period referred 

14 to in section 3(b) of the GSE Bailout Elimination 

15 and Taxpayer Protection Act or thereafter, 

16 $850,000,000,000; 

17 ‘‘(2) upon the expiration of the 1-year period 

18 that begins on the date described in paragraph (1) 

19 or thereafter, $700,000,000,000; 

20 ‘‘(3) upon the expiration of the 2-year period 

21 that begins on the date described in paragraph (1) 

22 or thereafter, $500,000,000,000; and 

23 ‘‘(4) upon the expiration of the 3-year period 

24 that begins on the date described in paragraph (1), 

25 $250,000,000,000. 


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1 ‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur2 poses of this section, the term ‘mortgage assets’ means, 

3 with respect to an enterprise, assets of such enterprise 

4 consisting of mortgages, mortgage loans, mortgage-related 

5 securities, participation certificates, mortgage-backed 

6 commercial paper, obligations of real estate mortgage in7 vestment conduits and similar assets, in each case to the 

8 extent such assets would appear on the balance sheet of 

9 such enterprise in accordance with generally accepted ac10 counting principles in effect in the United States as of 

11 September 7, 2008 (as set forth in the opinions and pro12 nouncements of the Accounting Principles Board and the 

13 American Institute of Certified Public Accountants and 

14 statements and pronouncements of the Financial Account15 ing Standards Board from time to time; and without giv16 ing any effect to any change that may be made after Sep17 tember 7, 2008, in respect of Statement of Financial Ac18 counting Standards No. 140 or any similar accounting 

19 standard).’’. 

20 (3) INCREASE IN MINIMUM CAPITAL REQUIRE21 MENT.—Section 1362 of the Federal Housing En22 terprises Financial Safety and Soundness Act of 

23 1992 (12 U.S.C. 4612), as amended by section 1111 

24 of the Housing and Economic Recovery Act of 2008 

25 (Public Law 110–289), is amended— 


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1 (A) in subsection (a), by striking ‘‘For 

2 purposes of this subtitle, the minimum capital 

3 level for each enterprise shall be’’ and inserting 

4 ‘‘The minimum capital level established under 

5 subsection (g) for each enterprise may not be 

6 lower than’’; 

7 (B) in subsection (c)— 

8 (i) by striking ‘‘subsections (a) and’’ 

9 and inserting ‘‘subsection’’; 

10 (ii) by striking ‘‘regulated entities’’ 

11 the first place such term appears and in12 serting ‘‘Federal Home Loan Banks’’; 

13 (iii) by striking ‘‘for the enterprises,’’; 

14 (iv) by striking ‘‘, or for both the en15 terprises and the banks,’’; 

16 (v) by striking ‘‘the level specified in 

17 subsection (a) for the enterprises or’’; and 

18 (vi) by striking ‘‘the regulated entities 

19 operate’’ and inserting ‘‘such banks oper20 ate’’; 

21 (C) in subsection (d)(1)— 

22 (i) by striking ‘‘subsections (a) and’’ 

23 and inserting ‘‘subsection’’; and 


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1 (ii) by striking ‘‘regulated entity’’ 

2 each place such term appears and inserting 

3 ‘‘Federal Home Loan Bank’’; 

4 (D) in subsection (e), by striking ‘‘regu5 lated entity’’ each place such term appears and 

6 inserting ‘‘Federal Home Loan Bank’’; 

7 (E) in subsection (f)— 

8 (i) by striking ‘‘the amount of core 

9 capital maintained by the enterprises,’’; 

10 and 

11 (ii) by striking ‘‘regulated entities’’ 

12 and inserting ‘‘banks’’; and 

13 (F) by adding at the end the following new 

14 subsection: 

15 ‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP16 ITAL LEVELS.— 

17 ‘‘(1) IN GENERAL.—The Director shall cause 

18 the enterprises to achieve and maintain adequate 

19 capital by establishing minimum levels of capital for 

20 such the enterprises and by using such other meth21 ods as the Director deems appropriate. 

22 ‘‘(2) AUTHORITY.—The Director shall have the 

23 authority to establish such minimum level of capital 

24 for an enterprise in excess of the level specified 

25 under subsection (a) as the Director, in the DirecVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 tor’s discretion, deems to be necessary or appro2 priate in light of the particular circumstances of the 

3 enterprise. 

4 ‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM

5 CAPITAL LEVELS.— 

6 ‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON7 DITION.—Failure of a enterprise to maintain capital 

8 at or above its minimum level as established pursu9 ant to subsection (g) of this section may be deemed 

10 by the Director, in his discretion, to constitute an 

11 unsafe and unsound practice or condition within the 

12 meaning of this title. 

13 ‘‘(2) DIRECTIVE TO ACHIEVE CAPITAL

14 LEVEL.— 

15 ‘‘(A) AUTHORITY.—In addition to, or in 

16 lieu of, any other action authorized by law, in17 cluding paragraph (1), the Director may issue 

18 a directive to an enterprise that fails to main19 tain capital at or above its required level as es20 tablished pursuant to subsection (g) of this sec21 tion. 

22 ‘‘(B) PLAN.—Such directive may require 

23 the enterprise to submit and adhere to a plan 

24 acceptable to the Director describing the means 


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1 and timing by which the enterprise shall achieve 

2 its required capital level. 

3 ‘‘(C) ENFORCEMENT.—Any such directive 

4 issued pursuant to this paragraph, including 

5 plans submitted pursuant thereto, shall be en6 forceable under the provisions of subtitle C of 

7 this title to the same extent as an effective and 

8 outstanding order issued pursuant to subtitle C 

9 of this title which has become final. 

10 ‘‘(3) ADHERENCE TO PLAN.— 

11 ‘‘(A) CONSIDERATION.—The Director may 

12 consider such enterprise’s progress in adhering 

13 to any plan required under this subsection 

14 whenever such enterprise seeks the requisite ap15 proval of the Director for any proposal which 

16 would divert earnings, diminish capital, or oth17 erwise impede such enterprise’s progress in 

18 achieving its minimum capital level. 

19 ‘‘(B) DENIAL.—The Director may deny 

20 such approval where it determines that such 

21 proposal would adversely affect the ability of 

22 the enterprise to comply with such plan.’’. 

23 (4) REPEAL OF INCREASES TO CONFORMING

24 LOAN LIMITS.— 

25 (A) REPEAL OF TEMPORARY INCREASES.— 


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1 (i) CONTINUING APPROPRIATIONS

2 RESOLUTION, 2010.—Section 167 of the 

3 Continuing Appropriations Resolution, 

4 2010 (as added by section 104 of division 

5 B of Public Law 111–88; 123 Stat. 2973) 

6 is hereby repealed. 

7 (ii) AMERICAN RECOVERY AND REIN8 VESTMENT ACT OF 2009.—Section 1203 of 

9 division A of the American Recovery and 

10 Reinvestment Act of 2009 (Public Law 

11 111–5; 123 Stat. 225) is hereby repealed. 

12 (iii) ECONOMIC STIMULUS ACT OF

13 2008.—Section 201 of the Economic Stim14 ulus Act of 2008 (Public Law 110–185; 

15 122 Stat. 619) is hereby repealed. 

16 (B) REPEAL OF GENERAL LIMIT AND PER17 MANENT HIGH-COST AREA INCREASE.—Para18 graph (2) of section 302(b) of the Federal Na19 tional Mortgage Association Charter Act (12 

20 U.S.C. 1717(b)(2)) and paragraph (2) of sec21 tion 305(a) of the Federal Home Loan Mort22 gage Corporation Act (12 U.S.C. 1454(a)(2)) 

23 are each amended to read as such sections were 

24 in effect immediately before the enactment of 


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1 the Housing and Economic Recovery Act of 

2 2008 (Public Law 110–289). 

3 (C) REPEAL OF NEW HOUSING PRICE

4 INDEX.—Section 1322 of the Federal Housing 

5 Enterprises Financial Safety and Soundness 

6 Act of 1992, as added by section 1124(d) of the 

7 Housing and Economic Recovery Act of 2008 

8 (Public Law 110–289), is hereby repealed. 

9 (D) REPEAL.—Section 1124 of the Hous10 ing and Economic Recovery Act of 2008 (Public 

11 Law 110–289) is hereby repealed. 

12 (E) ESTABLISHMENT OF CONFORMING

13 LOAN LIMIT.—For the year in which the expira14 tion of the period referred to in section 3(b) of 

15 this section occurs, the limitations governing 

16 the maximum original principal obligation of 

17 conventional mortgages that may be purchased 

18 by the Federal National Mortgage Association 

19 and the Federal Home Loan Mortgage Cor20 poration, referred to in section 302(b)(2) of the 

21 Federal National Mortgage Association Charter 

22 Act (12 U.S.C. 1717(b)(2)) and section 

23 305(a)(2) of the Federal Home Loan Mortgage 

24 Corporation Act (12 U.S.C. 1454(a)(2)), re25 spectively, shall be considered to be— 


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1 (i) $417,000 for a mortgage secured 

2 by a single-family residence, 

3 (ii) $533,850 for a mortgage secured 

4 by a 2-family residence, 

5 (iii) $645,300 for a mortgage secured 

6 by a 3-family residence, and 

7 (iv) $801,950 for a mortgage secured 

8 by a 4-family residence, 

9 and such limits shall be adjusted effective each 

10 January 1 thereafter in accordance with such 

11 sections 302(b)(2) and 305(a)(2). 

12 (F) PROHIBITION OF PURCHASE OF MORT13 GAGES EXCEEDING MEDIAN AREA HOME

14 PRICE.— 

15 (i) FANNIE MAE.—Section 302(b)(2) 

16 of the Federal National Mortgage Associa17 tion Charter Act (12 U.S.C. 1717(b)(2)) is 

18 amended by adding at the end the fol19 lowing new sentence: ‘‘Notwithstanding 

20 any other provision of this title, the cor21 poration may not purchase any mortgage 

22 for a property having a principal obligation 

23 that exceeds the median home price, for 

24 properties of the same size, for the area in 


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1 which such property subject to the mort2 gage is located.’’. 

3 (ii) FREDDIE MAC.—Section 

4 305(a)(2) of the Federal Home Loan 

5 Mortgage Corporation Act (12 U.S.C. 

6 1454(a)(2)) is amended by adding at the 

7 end the following new sentence: ‘‘Notwith8 standing any other provision of this title, 

9 the Corporation may not purchase any 

10 mortgage for a property having a principal 

11 obligation that exceeds the median home 

12 price, for properties of the same size, for 

13 the area in which such property subject to 

14 the mortgage is located.’’. 

15 (5) REQUIREMENT OF MINIMUM DOWNPAYMENT

16 FOR MORTGAGES PURCHASED.— 

17 (A) FANNIE MAE.—Subsection (b) of sec18 tion 302 of the Federal National Mortgage As19 sociation Charter Act (12 U.S.C. 1717(b)) is 

20 amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(7) Notwithstanding any other provision of this Act, 

23 the corporation may not newly purchase any mortgage un24 less the mortgagor has paid, in cash or its equivalent on 

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1 gage, in accordance with regulations issued by the Direc2 tor of the Federal Housing Finance Agency, not less 

3 than— 

4 ‘‘(A) for any mortgage purchased during the 

5 12-month period beginning upon the expiration of 

6 the period referred to in section 3(b) of the GSE 

7 Bailout Elimination and Taxpayer Protection Act, 5 

8 percent of the appraised value of the property; 

9 ‘‘(B) for any mortgage purchased during the 

10 12-month period beginning upon the expiration of 

11 the 12-month period referred to in subparagraph (A) 

12 of this paragraph, 7.5 percent of the appraised value 

13 of the property; and 

14 ‘‘(C) for any mortgage purchased during the 

15 12-month period beginning upon the expiration of 

16 the 12-month period referred to in subparagraph 

17 (B) of this paragraph, 10 percent of the appraised 

18 value of the property.’’. 

19 (B) FREDDIE MAC.—Subsection (a) of sec20 tion 305 of the Federal Home Loan Mortgage 

21 Corporation Act (12 U.S.C. 1454(a)) is amend22 ed by adding at the end the following new para23 graph: 

24 ‘‘(6) Notwithstanding any other provision of this Act, 

25 the Corporation may not newly purchase any mortgage 


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1 unless the mortgagor has paid, in cash or its equivalent 

2 on account of the property securing repayment of such 

3 mortgage, in accordance with regulations issued by the Di4 rector of the Federal Housing Finance Agency, not less 

5 than— 

6 ‘‘(A) for any mortgage purchased during the 

7 12-month period beginning upon the expiration of 

8 the period referred to in section 3(b) of the GSE 

9 Bailout Elimination and Taxpayer Protection Act, 5 

10 percent of the appraised value of the property; 

11 ‘‘(B) for any mortgage purchased during the 

12 12-month period beginning upon the expiration of 

13 the 12-month period referred to in subparagraph (A) 

14 of this paragraph, 7.5 percent of the appraised value 

15 of the property; and 

16 ‘‘(C) for any mortgage purchased during the 

17 12-month period beginning upon the expiration of 

18 the 12-month period referred to in subparagraph 

19 (B) of this paragraph, 10 percent of the appraised 

20 value of the property.’’. 

21 (6) REQUIREMENT TO PAY STATE AND LOCAL

22 TAXES.— 

23 (A) FANNIE MAE.—Paragraph (2) of sec24 tion 309(c) of the Federal National Mortgage 


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1 Association Charter Act (12 U.S.C. 

2 1723a(c)(2)) is amended— 

3 (i) by striking ‘‘shall be exempt from’’ 

4 and inserting ‘‘shall be subject to’’; and 

5 (ii) by striking ‘‘except that any’’ and 

6 inserting ‘‘and any’’. 

7 (B) FREDDIE MAC.—Section 303(e) of the 

8 Federal Home Loan Mortgage Corporation Act 

9 (12 U.S.C. 1452(e)) is amended— 

10 (i) by striking ‘‘shall be exempt from’’ 

11 and inserting ‘‘shall be subject to’’; and 

12 (ii) by striking ‘‘except that any’’ and 

13 inserting ‘‘and any’’. 

14 (7) REPEALS RELATING TO REGISTRATION OF

15 SECURITIES.— 

16 (A) FANNIE MAE.— 

17 (i) MORTGAGE-BACKED SECURI18 TIES.—Section 304(d) of the Federal Na19 tional Mortgage Association Charter Act 

20 (12 U.S.C. 1719(d)) is amended by strik21 ing the fourth sentence. 

22 (ii) SUBORDINATE OBLIGATIONS.— 

23 Section 304(e) of the Federal National 

24 Mortgage Association Charter Act (12 


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1 U.S.C. 1719(e)) is amended by striking the 

2 fourth sentence. 

3 (B) FREDDIE MAC.—Section 306 of the 

4 Federal Home Loan Mortgage Corporation Act 

5 (12 U.S.C. 1455) is amended by striking sub6 section (g). 

7 (8) RECOUPMENT OF COSTS FOR FEDERAL

8 GUARANTEE.— 

9 (A) ASSESSMENTS.—The Director of the 

10 Federal Housing Finance Agency shall establish 

11 and collect from each enterprise assessments in 

12 the amount determined under subparagraph 

13 (B). In determining the method and timing for 

14 making such assessments, the Director shall 

15 take into consideration the determinations and 

16 conclusions of the study under subsection (b) of 

17 this section. 

18 (B) DETERMINATION OF COSTS OF GUAR19 ANTEE.—Assessments under subparagraph (A) 

20 with respect to an enterprise shall be in such 

21 amount as the Director determines necessary to 

22 recoup to the Federal Government the full value 

23 of the benefit the enterprise receives from the 

24 guarantee provided by the Federal Government 

25 for the obligations and financial viability of the 


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1 enterprise, based upon the dollar value of such 

2 benefit in the market to such enterprise when 

3 not operating under conservatorship or receiver4 ship. To determine such amount, the Director 

5 shall establish a risk-based pricing mechanism 

6 as the Director considers appropriate, taking 

7 into consideration the determinations and con8 clusions of the study under subsection (b) of 

9 this section. 

10 (C) TREATMENT OF RECOUPED

11 AMOUNTS.—The Director shall cover into the 

12 general fund of the Treasury any amounts re13 ceived from assessments made under this para14 graph. 

15 (b) GAO STUDY REGARDING RECOUPMENT OF

16 COSTS FOR FEDERAL GOVERNMENT GUARANTEE.—The 

17 Comptroller General of the United States shall conduct 

18 a study to determine a risk-based pricing mechanism to 

19 accurately determine the value of the benefit the enter20 prises receive from the guarantee provided by the Federal 

21 Government for the obligations and financial viability of 

22 the enterprises. Such study shall establish a dollar value 

23 of such benefit in the market to each enterprise when not 

24 operating under conservatorship or receivership, shall ana25 lyze various methods of the Federal Government assessing 


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1 a charge for such value received (including methods involv2 ing an annual fee or a fee for each mortgage purchased 

3 or securitized), and shall make a recommendation of the 

4 best such method for assessing such charge. Not later 

5 than 12 months after the date of the enactment of this 

6 Act, the Comptroller General shall submit to the Congress 

7 a report setting forth the determinations and conclusions 

8 of such study. 

9 SEC. 605. REQUIRED WIND DOWN OF OPERATIONS AND DIS10 SOLUTION OF ENTERPRISE. 

11 (a) APPLICABILITY.—This section shall apply to an 

12 enterprise upon the expiration of the 3-year period that 

13 begins upon the expiration of the period referred to in sec14 tion 603(b). 

15 (b) REPEAL OF CHARTER.—Upon the applicability of 

16 this section to an enterprise, the charter for the enterprise 

17 is repealed and the enterprise shall have no authority to 

18 conduct new business under such charter, except that the 

19 provisions of such charter in effect immediately before 

20 such repeal shall continue to apply with respect to the 

21 rights and obligations of any holders of outstanding debt 

22 obligations and mortgage-backed securities of the enter23 prise. 

24 (c) WIND DOWN.—Upon the applicability of this sec25 tion to an enterprise, the Director and the Secretary of 


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1 the Treasury shall jointly take such action, and may pre2 scribe such regulations and procedures, as may be nec3 essary to wind down the operations of an enterprise as 

4 an entity chartered by the United States Government over 

5 the duration of the 10-year period beginning upon the ap6 plicability of this section to the enterprise (pursuant to 

7 subsection (a)) in an orderly manner consistent with this 

8 Act and the ongoing obligations of the enterprise. 

9 (d) DIVISION OF ASSETS AND LIABILITIES; AUTHOR10 ITY TO ESTABLISH HOLDING CORPORATION AND DIS11 SOLUTION TRUST FUND.—The action and procedures re12 quired under subsection (c)— 

13 (1) shall include the establishment and execu14 tion of plans to provide for an equitable division and 

15 distribution of assets and liabilities of the enterprise, 

16 including any liability of the enterprise to the United 

17 States Government or a Federal reserve bank that 

18 may continue after the end of the period described 

19 in subsection (c); and 

20 (2) may provide for establishment of— 

21 (A) a holding corporation organized under 

22 the laws of any State of the United States or 

23 the District of Columbia for the purposes of the 

24 reorganization and restructuring of the enter25 prise; and 


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1 (B) one or more trusts to which to trans2 fer— 

3 (i) remaining debt obligations of the 

4 enterprise, for the benefit of holders of 

5 such remaining obligations; or 

6 (ii) remaining mortgages held for the 

7 purpose of backing mortgage-backed secu8 rities, for the benefit of holders of such re9 maining securities. 

10 TITLE VII—MISCELLANEOUS 

11 SEC. 701. LIMITATION ON GOVERNMENT PRINTING COSTS. 

12 Not later than 180 days after the date of enactment 

13 of this Act, the Director of the Office of Management and 

14 Budget shall coordinate with the heads of Federal depart15 ments and independent agencies to— 

16 (1) determine which Government publications 

17 could be available on Government Web sites and no 

18 longer printed and to devise a strategy to reduce 

19 overall Government printing costs over the 10-year 

20 period beginning with fiscal year 2012, except that 

21 the Director shall ensure that essential printed docu22 ments prepared for Social Security recipients, Medi23 care beneficiaries, and other populations in areas 

24 with limited Internet access or use continue to re25 main available; 


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1 (2) establish Governmentwide Federal guide2 lines on employee printing; 

3 (3) issue on the Office of Management and 

4 Budget’s public Web site the results of a cost-benefit 

5 analysis on implementing a digital signature system 

6 and on establishing employee printing identification 

7 systems, such as the use of individual employee 

8 cards or codes, to monitor the amount of printing 

9 done by Federal employees; except that the Director 

10 of the Office of Management and Budget shall en11 sure that Federal employee printing costs unrelated 

12 to national defense, homeland security, border secu13 rity, national disasters, and other emergencies do 

14 not exceed $860,000,000 annually; and 

15 (4) issue guidelines requiring every department, 

16 agency, commission, or office to list at a prominent 

17 place near the beginning of each publication distrib18 uted to the public and issued or paid for by the Fed19 eral Government— 

20 (A) the name of the issuing agency, de21 partment, commission, or office; 

22 (B) the total number of copies of the docu23 ment printed; 

24 (C) the collective cost of producing and 

25 printing all of the copies of the document; and 


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1 (D) the name of the firm publishing the 

2 document. 

3 SEC. 702. DEPOSIT OF IRS USER FEES AS GENERAL RE4 CEIPTS. 

5 Notwithstanding any other provision of law (includ6 ing section 3 under the heading ‘‘Administrative Provi7 sions—Internal Revenue Service’’ of title I of Public Law 

8 103–329), any fees for services provided by the Internal 

9 Revenue Service shall, unless otherwise provided by an ap10 propriations Act, be deposited in the Treasury as general 

11 receipts and shall not be expended by the Internal Rev12 enue Service. 

13 SEC. 703. LIMITATION OF GOVERNMENT TRAVEL COSTS. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law, the total amount which is paid or reimbursed 

16 by an agency under subchapter I of chapter 57 of title 

17 5, United States Code (relating to travel and subsistence 

18 expenses; mileage allowances for official travel by Federal 

19 employees) may not, for any of the next 5 fiscal years be20 ginning after the date of enactment of this Act, exceed 

21 50 percent of the total amount so paid or reimbursed by 

22 such agency for the fiscal year in which such date of enact23 ment occurs. 


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1 (b) EXCEPTIONS.—For purposes of carrying out sub2 section (a), there shall not be taken into account the 

3 amounts paid or reimbursed for— 

4 (1) any subsistence or travel expenses for 

5 threatened law enforcement personnel, as described 

6 in section 5706a of title 5, United States Code; or 

7 (2) any other expenses for which an exception 

8 is established under subsection (c) for reasons relat9 ing to national security or public safety. 

10 (c) REGULATIONS.—Any regulations necessary to 

11 carry out this section shall, in consultation with the Direc12 tor of the Office of Management and Budget, be pre13 scribed by the same respective authorities as are respon14 sible for prescribing regulations under section 5707 of title 

15 5, United States Code. 

16 SEC. 704. REDUCTION IN FEDERAL VEHICLE COSTS. 

17 Notwithstanding any other provision of law— 

18 (1) of the amounts made available to the Gen19 eral Services Administration for the acquisition of 

20 new vehicles for the Federal fleet for fiscal year 

21 2011 and remaining unobligated as of the date of 

22 enactment of this Act, an amount equal to 20 per23 cent of all such amounts is rescinded; 

24 (2) for fiscal year 2012 and each fiscal year 

25 thereafter— 


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1 (A) the amount made available to the Gen2 eral Services Administration for the acquisition 

3 of new vehicles for the Federal fleet shall not 

4 exceed an amount equal to 80 percent of the 

5 amount made available for the acquisition of 

6 those vehicles for fiscal year 2011 (before appli7 cation of subsection (a)); and 

8 (B) the number of new vehicles acquired 

9 by the General Services Administration for the 

10 Federal fleet shall not exceed a number equal to 

11 50 percent of the vehicles so acquired for fiscal 

12 year 2011; and 

13 (3) any amounts made available under Public 

14 Law 111–5 for the acquisition of new vehicles for 

15 the Federal fleet shall be disregarded for purposes of 

16 determining the baseline. 

17 SEC. 705. REPEALS OF PROHIBITIONS ON PUBLIC-PRIVATE 

18 COMPETITIONS FOR CONVERSION TO CON19 TRACTOR PERFORMANCE OF FUNCTIONS 

20 PERFORMED BY FEDERAL EMPLOYEES PUR21 SUANT TO OFFICE OF MANAGEMENT AND 

22 BUDGET CIRCULAR A–76. 

23 (a) REPEALS IN PUBLIC LAW 111–117.—The fol24 lowing provisions of law are repealed: 


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1 (1) Section 735 of the Financial Services and 

2 General Government Appropriations Act, 2010 (divi3 sion C of Public Law 111–117; 123 Stat. 3214). 

4 (2) Section 743(g) of such Act (123 Stat. 

5 3218). 

6 (3) Section 212 of the Commerce, Justice, 

7 Science, and Related Agencies Appropriations Act, 

8 2010 (division B of Public Law 111–117; 123 Stat. 

9 3140). 

10 (b) A–76 COMPETITIONS.—Notwithstanding any 

11 other provision of law, an executive agency may begin, 

12 plan for, announce, continue, finish, or approve a study 

13 on public-private competition regarding the conversion to 

14 contractor performance of any function performed by Fed15 eral employees pursuant to Office of Management and 

16 Budget Circular A–76 or any other administrative regula17 tion, directive, or policy. 

18 SEC. 706. DEAUTHORIZATION OF APPROPRIATIONS TO 

19 CARRY OUT PPACA AND HCERA. 

20 Notwithstanding any other provision of law, no funds 

21 are authorized to be appropriated to carry out the provi22 sions of the Patient Protection and Affordable Care Act 

23 (Public Law 111–148), the Health Care and Education 

24 Reconciliation Act of 2010 (Public Law 111–152), and 

25 any amendment made by either such Act. 


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1 SEC. 707. RESCISSION OF HEALTH INSURANCE REFORM IM2 PLEMENTATION FUNDS. 

3 Of the funds made available by section 1005(b) of 

4 the Health Care and Education Reconciliation Act of 2010 

5 (Public Law 111–152; 42 U.S.C. 18121(b)), the unobli6 gated balance is rescinded. 

7 SEC. 708. TAXPAYER-GENERATED DEFICIT REDUCTION. 

8 (a) DESIGNATION OF INCOME TAX PAYMENTS TO

9 REDUCE THE DEFICIT.— 

10 (1) DESIGNATION.—Subchapter A of chapter 

11 61 of the Internal Revenue Code of 1986 (relating 

12 to returns and records) is amended by adding at the 

13 end the following new part: 

14 ‘‘PART IX—DESIGNATION ON INCOME TAX 

15 RETURNS FOR REDUCTION OF DEFICIT 

‘‘Sec. 6097. Designation for reduction of the deficit. 

16 ‘‘SEC. 6097. DESIGNATION FOR REDUCTION OF THE DEF17 ICIT. 

18 ‘‘(a) IN GENERAL.—Every individual, regardless of 

19 income tax liability for the taxable year, may designate 

20 that an amount (not less than $1 and not more than $10) 

21 shall be paid over for the purpose of reducing the deficit 

22 of the United States. In the case of a joint return of hus23 band and wife, each spouse may so designate an amount. 

24 ‘‘(b) INCOME TAX LIABILITY.—For purposes of sub25 section (a), the income tax liability of an individual for 


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1 any taxable year is the amount of the tax imposed by 

2 chapter 1 on such individual for such taxable year (as 

3 shown on his return), reduced by the sum of the credits 

4 (as shown in his return) allowable under part IV of sub5 chapter A of chapter 1 (other than subpart C thereof). 

6 ‘‘(c) MANNER AND TIME OF DESIGNATION.—Rules 

7 similar to the rules of section 6096(c) shall apply for pur8 poses of this section, except that the designation shall be 

9 accompanied by the following statement: ‘The Federal 

10 budget will be reduced by an amount equal to ten times 

11 the amount you elect in the box.’. 

12 ‘‘(d) AMOUNT INCREASE.—In the case of each tax13 able year beginning after 2011, the maximum dollar 

14 amount that may be designated under subsection (a) shall 

15 be increased by $1. In the case of a joint return of hus16 band and wife, such amount shall increase by $2 each tax17 able year.’’. 

18 (2) CLERICAL AMENDMENT.—The table of 

19 parts for subchapter A of chapter 61 of such Code 

20 is amended by adding at the end the following new 

21 item: 

‘‘PART IX—DESIGNATION OF INCOME TAX PAYMENTS TO REDUCE THE

DEFICIT.’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this section shall apply to taxable years beginning 

24 after December 31, 2010. 


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1 (b) TAXPAYER-GENERATED SEQUESTRATION OF

2 FEDERAL SPENDING TO REDUCE THE DEFICIT.— 

3 (1) SEQUESTRATION TO REDUCE DEFICIT.— 

4 Part C of the Balanced Budget and Emergency Def5 icit Control Act of 1985 is amended by inserting 

6 after section 253 the following new section: 

7 ‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE DEFICIT. 

8 ‘‘(a) SEQUESTRATION.— 

9 ‘‘(1) TIMING.—Within 15 calendar days after 

10 the date Congress adjourns to end a session, and on 

11 the same day as sequestration (if any) under sec12 tions 251, 252, and 253, but after any sequestration 

13 required by those sections, there shall be a seques14 tration to eliminate the deficit equivalent to the 

15 amount calculated under paragraph (2). 

16 ‘‘(2) CALCULATION.— 

17 ‘‘(A) OMB CALCULATION.—Before October 

18 1st of each calendar year, OMB shall calculate 

19 the total amount designated under section 6097 

20 of the Internal Revenue Code of 1986. 

21 ‘‘(B) FEDERAL SPENDING REDUCTION.— 

22 In accordance with the deadline under para23 graph (1), OMB shall apply an across the board 

24 reduction in Federal spending in an amount 

25 equal to the product of— 


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1 ‘‘(i) the amount calculated under sub2 paragraph (A); and 

3 ‘‘(ii) 10. 

4 ‘‘(3) CARRYOVER.—Any amounts not calculated 

5 by OMB by the October 1st deadline, as set forth 

6 in subparagraph (2)(A), shall be applied to the fol7 lowing fiscal year Federal spending reduction pursu8 ant to this section. 

9 ‘‘(b) APPLICABILITY.— 

10 ‘‘(1) IN GENERAL.—Except as provided by 

11 paragraph (2), each account of the United States 

12 shall be reduced by a dollar amount calculated by 

13 multiplying the level of budgetary resources in that 

14 account at that time by the uniform percentage nec15 essary to carry out subsection (a). All obligational 

16 authority so reduced shall be done in a manner that 

17 makes such reductions permanent. 

18 ‘‘(2) EXEMPT ACCOUNTS.—The following pro19 grams shall be exempt from reduction under any 

20 order issued under this section: 

21 ‘‘(A) Benefits payable under the old-age, 

22 survivors, and disability insurance program es23 tablished under title II of the Social Security 

24 Act. 


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1 ‘‘(B) Benefits payable under section 3(a), 

2 3(f)(3), 4(a), or 4(f) of the Railroad Retirement 

3 Act of 1974. 

4 ‘‘(C) Benefits payable under title 18 of the 

5 Social Security Act. 

6 ‘‘(D) The rate of pay of any judge or jus7 tice appointed pursuant to article III of the 

8 Constitution of the United States. 

9 ‘‘(E) Veteran’s benefits listed under sec10 tions 905(b) and 905(f) of the Balanced Budget 

11 and Emergency Deficit Control Act of 1985 (2 

12 U.S.C. 905(b), 905(f)). 

13 ‘‘(c) EFFECTIVE DATE.—This section shall apply to 

14 calender years beginning after December 31, 2010.’’. 

15 (2) REPORTS.—Section 254 of the Balanced 

16 Budget and Emergency Deficit Control Act of 1985 

17 is amended— 

18 (A) in subsection (a), by adding at the end 

19 of the table the following new item: 

‘‘October 1 ....................... OMB report estimating amount of income tax designated pursuant to section 6097 of the Internal 

Revenue Code of 1986.’’. 

20 (B) in subsection (c)(1), by inserting ‘‘, 

21 and sequestration to reduce the deficit,’’ after 

22 ‘‘sequestration’’; 


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1 (C) in subsection (c), by redesignating 

2 paragraph (5) as paragraph (6) and by insert3 ing after paragraph (4) the following new para4 graph: 

5 ‘‘(5) REPORTS ON SEQUESTRATION TO REDUCE

6 THE DEFICIT.—The preview reports shall set forth 

7 for the budget year estimates for each of the fol8 lowing: 

9 ‘‘(A) The aggregate amount designated 

10 under section 6097 of the Internal Revenue 

11 Code of 1986 for the last calendar year ending 

12 before the budget year. 

13 ‘‘(B) The amount of reductions required 

14 under section 253A and the deficit remaining 

15 after those reductions have been made. 

16 ‘‘(C) The sequestration percentage nec17 essary to achieve the required reduction in ac18 counts under section 253A(a).’’; and 

19 (D) in subsection (f), by redesignating 

20 paragraphs (4) and (5) as paragraphs (5) and 

21 (6), respectively, and by inserting after para22 graph (3) the following new paragraph: 

23 ‘‘(4) REPORTS ON SEQUESTRATION TO REDUCE

24 THE DEFICIT.—The final reports shall contain all of 


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1 the information contained in the deficit taxation des2 ignation report required on October 1.’’. 

3 (3) EFFECTIVE DATE.—Notwithstanding sec4 tion 275(b) of the Balanced Budget and Emergency 

5 Deficit Control Act of 1985, the expiration date set 

6 forth in that section shall not apply to the amend7 ments made by this Act. On the date specified in 

8 section 253A of the Balanced Budget and Emer9 gency Deficit Control Act of 1985, as amended by 

10 this section, the President shall issue an order fully 

11 implementing the sequestration required by section 

12 253A of such Act, as amended by this section. This 

13 order shall be effective on issuance. 

14 SEC. 709. LIMITATION ON FUNDS TO IMPLEMENT CERTAIN 

15 HEALTH CARE LAWS. 

16 The Continuing Appropriations Act, 2011 (Public 

17 Law 111–242), as amended by section 101, is amended 

18 by adding at the end the following: 

19 ‘‘SEC. 167. No appropriations or funds made avail20 able or authority granted pursuant to section 101(b)(1) 

21 may be used to carry out any program under, promulgate 

22 any regulation pursuant to, or defend against any lawsuit 

23 challenging any provision of Public Law 111–148 or PubVerDate Mar 15 2010 02:13 Feb 01, 2011 Jkt 099200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\S178.IS S178

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1 lic Law 111–152 or any amendment made by either such 

2 Public Law.’’. 

Æ 


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