79–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 111–9 

PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (H.R. 1) MAKING 

SUPPLEMENTAL APPROPRIATIONS FOR JOB PRESERVATION AND CREATION, INFRASTRUCTURE INVESTMENT, ENERGY EFFICIENCY AND 

SCIENCE, ASSISTANCE TO THE UNEMPLOYED, AND STATE AND LOCAL 

FISCAL STABILIZATION, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 

2009, AND FOR OTHER PURPOSES 

JANUARY 27, 2009.—Referred to the House Calendar and ordered to be printed 

Ms. SLAUGHTER, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 92] 

The Committee on Rules, having had under consideration House 

Resolution 92, by a record vote of 9 to 2, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for further consideration of H.R. 1, the 

‘‘American Recovery and Reinvestment Act of 2009,’’ under a structured rule. The resolution provides an additional one hour of general debate equally divided and controlled by the chairman and 

ranking minority member of the Committee on Appropriations. 

The resolution provides that the amendment printed in part A of 

this report shall be considered as adopted in the House and in the 

Committee of the Whole. The bill, as amended, shall be considered 

as the original bill for purpose of further amendment and shall be 

considered as read. The resolution waives all points of order 

against provisions of the bill, as amended. This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure). 

The resolution provides that no further amendment shall be in 

order except those printed in part B of this report. Each further 

amendment may be offered only in the order printed, may be offered only by a Member designated, shall be considered as read, 

shall be debatable for the time specified equally divided and controlled by the proponent and an opponent, and shall not be subject 

to amendment or demand for division of the question. The resolution waives all points of order against such further amendments 


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except those arising under clause 9 of rule XXI. The resolution provides one motion to recommit with or without instructions. 

The resolution provides that the chair of the Committee on Appropriations shall insert in the Congressional Record not later than 

February 4, 2009, such materials as he may deem explanatory of 

appropriations measures for fiscal year 2009. Finally, the resolution provides that the chair of the Committee on Ways and Means 

may file a supplemental report to accompany H.R. 598. 

EXPLANATION OF WAIVERS

Although the resolution waives all points of order against provisions in the bill, the Committee is not aware of any waivers. The 

waiver of all points of order is prophylactic. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 10 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Dreier. 

Summary of motion: To report an open rule. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 11 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order en bloc and provide appropriate waivers for amendments to be separately debatable: (1) an 

amendment by Rep. Tiahrt, (KS), #64, which would strike the authority, and associated funding, in the bill that provides for new or 

significantly-expanded programs, including afterschool feeding programs for at-risk children, broadband provisions, innovative technology loan guarantee programs, small business provisions, and 

summer job programs. It would also suspend certain employment 

and income taxes, would repeal the final $350 billion of TARP 

funds, and would terminate TARP purchase authority upon enactment; (2) an amendment by Rep. Simpson (ID), #67, which would 

prohibit any provision in the bill that provides new or increased direct spending from taking effect until Congress enacts a bill to provide the corresponding offsets; and (3) an amendment by Rep. 

Frelinghuysen (NJ), and Rep. Latham (IA), #66, which would take 

funds legislatively withheld from obligation until not earlier than 

fiscal year 2010 and make them available for Army Corps of Engineers construction projects ($24.2 billion) and Department of 

Transportation highway infrastructure investment ($34 billion) and 

capital improvement projects ($2 billion). 

Results: Defeated 3–9. 


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Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 12 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Dreier. 

Summary of motion: To make in order en bloc and provide appropriate waivers for amendments to be separately debatable: (1) an 

amendment by Rep. Barton (TX), #127, which would eliminate the 

requirement that, in order to receive energy efficiency funds, governors notify the Secretary of Energy that they would seek to 

change state utility ratemaking policy to ensure the utility’s fixed 

costs are covered independent of sales; and (2) an amendment by 

Rep. Deal (GA), #151, which would require, starting in FY2010, 

States to cover at least 90 percent of eligible individuals at or 

below 100 percent of the Federal poverty level before increasing eligibility to other individuals. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 13 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hastings (FL), and Rep. DiazBalart, Lincoln (FL), #169, which would allow the Secretary to 

grant a waiver of maintenance of effort requirements for the Department of Education’s State Fiscal Stabilization Fund to States 

facing economic hardship due to natural disasters or a precipitous 

decline in the financial resource of the State. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 14 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order en bloc and provide appropriate waivers for amendments to be separately debatable: (1) an 

amendment by Rep. Buyer (IN), #44, which would provide that $10 

million in grant funding is appropriated for entities that provide 

job skill training for homeless women veterans and homeless veterans with children; (2) an amendment by Rep. Buyer (IN), #45, 

which would increase the amount of subsistence allowance to 

$1,200 for veterans undergoing vocational and rehabilitation trainVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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ing; (3) an amendment by Rep. Buyer (IN), #46, which would appropriate $20 million for veterans’ workforce investment programs 

under section 168 of the Workforce Investment Act; (4) an amendment by Rep. Buyer (IN), #47, which would appropriate $1 billion 

to guarantee small business loans for veterans; and (5) an amendment by Rep. McCotter (MI), #90, which would require any new infrastructure project created by funding provided in H.R. 1 to be 

named after a member of the United States Armed Forces who was 

killed in combat or an emergency response provider who was killed 

in the line of duty. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 15 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Heller (NV), #2, which would 

strike section 1301 (regarding waiver of requirement to repay firsttime homebuyer credit), would extend homebuyer credit to end of 

2009, and expand the credit to cover all purchases of primary residences. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 16 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Brown, Corinne (FL), and Rep. 

Mica (FL), #118, which would negate the need for local matching 

funds for airport improvement projects. 

Results: Defeated 3–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Diaz-Balart—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 17 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Dr. Foxx. 

Summary of motion: To make in order en bloc and provide appropriate waivers for amendments to be separately debatable; (1) an 

amendment by Rep. Blunt (MO), and Rep. Rogers, Mike (MI), #34, 

which would amend provisions in the bill regulating the receipt of 

payment for making health care communications to ensure nothing 


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in the bill will prevent a pharmacist from collecting and sharing information with their patients to reduce errors and improve their 

safety and stipulates that any money received for these activities 

is reasonable and cost based; (2) an amendment by Rep. Stearns 

(FL), #145, which would allow unemployed workers who are eligible for COBRA to receive premium assistance from the federal government, require the federal government to pay 65 percent of the 

worker’s COBRA premium, and would prohibit anyone who made 

over $1 million in 2008 from receiving COBRA premium assistance 

under this new COBRA premium assistance program; and (3) an 

amendment by Rep. Murphy, Tim (PA), #92, which would require 

that Health Information Technology purchased with funds made 

available by this Act be engineered and manufactured in the 

United States. 

Results: Defeated 2–9. 

Vote by Members: McGovern—nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Foxx—Yea Slaughter—Nay. 

Rules Committee record vote No. 18 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Dr. Foxx. 

Summary of motion: To make in order en bloc and provide appropriate waivers for amendments to be separately debatable: (1) an 

amendment by Rep. Flake (AZ), #128, which would indicate that 

Members shall not influence discretionary funding by agencies or 

state and local officials on behalf of campaign contributors; (2) an 

amendment by Rep. Flake (AZ), #129, which would prohibit funds 

from being used for any duck pond, museum, skate park, equestrian center, dog park, ski hill, historic home, ice rink, splash playground, or speaker system; and (3) an amendment by Rep. Flake 

(AZ), #130, which would strike funding in the bill for the National 

Foundation on the Arts and the Humanities and the National Endowment for the Arts. 

Results: Defeated 2–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 

Rules Committee record vote No. 19 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Dr. Foxx. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment in the nature of a substitute by Rep. 

Garrett (NJ), #18, which would repeal the Alternative Minimum 

Tax on individuals, reduce individual income taxes, reduce taxes on 

capital assets, make rescissions in non-defense discretionary spending, and includes other provisions relating to business, individuals 

and higher education. 

Results: Defeated 2–9. 

Vote by Members: McGovern—Nay; Hastings—Nay; Matsui— 

Nay; Cardoza—Nay; Arcuri—Nay; Perlmutter—Nay; Pingree—Nay; 

Polis—Nay; Dreier—Yea; Foxx—Yea; Slaughter—Nay. 


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Rules Committee record vote No. 20 

Date: January 27, 2009. 

Measure: H.R. 1. 

Motion by: Mr. McGovern. 

Summary of Motion: To report the rule. 

Results: Adopted 9–2. 

Vote by Members: McGovern—Yea; Hastings—Yea; Matsui—Yea; 

Cardoza—Yea; Arcuri—Yea; Perlmutter—Yea; Pingree—Yea; 

Polis—Yea; Dreier—Nay; Foxx—Nay; Slaughter—Yea. 

SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

The amendment (1) requires that not later than 45 days after the 

date of enactment, funds provided to any State or agency thereof, 

the Governor of the State, or the State legislature by means of a 

statement submitted by its leadership, shall certify that the State 

will request and use funds provided by this Act. Funding to the 

State will be for public and private entities within the State either 

by formula or at the State’s discretion; (2) waives the local matching requirements and the salary caps for the COPS hiring program 

in fiscal years 2009 and 2010; (3) designates $15 million for the 

Historic Preservation Fund within the National Park Service for 

the renovation and preservation of buildings on Historically Black 

Colleges and Universities campuses and waives the institutional 

match for projects under this provision; (4) strikes funding for the 

National Mall Revitalization Fund; and (5) strikes section 5004 regarding family planning. 

SUMMARY OF AMENDMENT IN PART B TO BE MADE IN ORDER

1. Oberstar (MN): Would amend the aviation, highway, rail, and 

transit priority consideration and ‘‘use-it-or-lose-it’’ provisions to require that 50 percent of the funds be obligated within 90 days. (10 

minutes) 

2. Markey (MA): Would require that the Secretary require, as a 

condition of receiving funding under Title XIII of the Energy Independence and Security Act of 2007, that the demonstration projects 

utilize Internet-based or other open protocols and standards if 

available and appropriate, and would require that grants recipients 

utilize Internet-based or other open protocols and standards. (10 

minutes) 

3. Shuster (PA): Would clarify that federal funds received by 

States under the bill for highway maintenance shall not be used to 

replace existing funds in place for transportation projects. (10 minutes) 

4. Nadler (NY)/DeFazio (OR)/Lipinski (IL)/McMahon (NY)/Ellison 

(MN): Would increase transit capital funding by $3 billion. (10 minutes) 

5. Neugebauer (TX): Would strike the appropriations provisions 

from the bill. (10 minutes) 

6. Waters (CA): Would provide that job training funds may be 

used for broadband deployment and related activities provided in 

the bill. (10 minutes) 

7. Flake (AZ): Would strike funding for Amtrak. (10 minutes) 

8. Kissell (NC): Would expand the Berry Amendment Extension 

Act to include DHS to require the government to purchase uniVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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forms for more than one hundred thousand uniformed employees 

from U.S. textile and apparel manufacturers. (10 minutes) 

9. Platts (PA)/Van Hollen (MD): Would insert the text of the 

Whistleblower Protection Enhancement Act (H.R. 985 in the 110th 

Congress) regarding protections for federal employees who report 

waste, fraud, and abuse. (10 minutes) 

10. Teague (NM): Would require that the Recovery.gov website 

contain links and other information on how to access job information created at or by entities receiving funding under the bill; including links to local employment agencies, state, local, and other 

public agencies receiving recovery funds, and private firms contracted to perform work funded by the bill. (10 minutes) 

11. Camp (MI)/Cantor (VA): Amendment in the Nature of a Substitute. Would strike everything after enacting clause and adds income tax rate deductions for bottom two income tax brackets, alternative minimum tax relief, small business deduction, bonus depreciation, small business expensing, expanded carryback of net operating losses, improved home buyer credit, unemployment benefit 

tax exemption, health insurance premium deduction, repeal of 3 

percent withholding requirement for government contractors, extension of unemployment benefits, and a Sense of Congress against 

tax increases to offset outlays. (60 minutes) 

PART A—TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

Page 15, after line 7, insert the following: 

SEC. 1115. ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF 

APPROPRIATE USE OF FUNDS. 

(a) CERTIFICATION BY GOVERNOR.—Not later than 45 days after 

the date of enactment of this Act, for funds provided to any State 

or agency thereof, the Governor of the State shall certify that the 

State will request and use funds provided by this Act. 

(b) ACCEPTANCE BY STATE LEGISLATURE.—If funds provided to 

any State in any division of this Act are not accepted for use by 

the Governor, then acceptance by the State legislature, by means 

of the adoption of a concurrent resolution, shall be sufficient to provide funding to such State. 

(c) DISTRIBUTION.—After the adoption of a State legislature’s concurrent resolution, funding to the State will be for distribution to 

local governments, councils of government, public entities, and public-private entities within the State either by formula or at the 

State’s discretion. 

Page 53, after line 15, insert the following: 

GENERAL PROVISIONS, THIS SUBTITLE 

SEC. 3201. WAIVER OF MATCHING REQUIREMENT AND SALARY LIMIT 

UNDER COPS PROGRAM. 

Sections 1701(g) and 1704(c) of the Omnibus Crime Control and 

Safe Street Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd–3(c)) shall 

not apply with respect to funds appropriated in this or any other 

Act making appropriations for fiscal year 2009 or 2010 for Community Oriented Policing Services authorized under part Q of such Act 

of 1968. 

Page 111, after line 7, insert the following: 


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SEC. 7005. WAIVER OF MATCHING REQUIREMENT UNDER SAFER PROGRAM. 

Subparagraph (E) of section 34(a)(1) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not 

apply with respect to funds appropriated in this or any other Act 

making appropriations for fiscal year 2009 or 2010 for grants under 

such section 34. 

Page 113, line 1, after ‘‘System’’ insert the following: 

: Provided further, That $15,000,000 of these funds shall be transferred to the ‘‘Historic Preservation Fund’’ for historic preservation 

projects at historically black colleges and universities as authorized 

by the Historic Preservation Fund Act of 1996 and the Omnibus 

Parks and Public Lands Act of 1996, except that any matching requirements otherwise required for such projects are waived 

Page 113, strike lines 5 through 14. 

Page 603, beginning on line 18, strike section 5004 (and redesignate the subsequent sections, and conform the table of contents in 

section 5000, accordingly). 

Page 615, line 6, strike ‘‘and section 5004’’. 

Page 615, line 9, strike ‘‘(ff)’’ and insert ‘‘(ee)’’. 

Page 620, line 1, strike ‘‘5005(b)’’ and insert ‘‘5004(b)’’. 

PART B—TEXT OF AMENDMENTS TO BE MADE IN ORDER UNDER THE

RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE OBERSTAR

OF MINNESOTA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 207, line 21, strike ‘‘120 days’’ and insert ‘‘90 days’’. 

Page 209, line 7, strike ‘‘120 days’’ and insert ‘‘90 days’’. 

Page 210, line 9, strike ‘‘180 days’’ and insert ‘‘90 days’’. 

Page 210, lines 20 and 21, strike ‘‘150 days’’ and insert ‘‘75 days’’. 

Page 211, line 25, strike ‘‘180 days’’ and insert ‘‘90 days’’. 

Page 214, line 2, strike ‘‘180 days’’ and insert ‘‘90 days’’. 

Page 215, line 7, strike ‘‘180 days’’ and insert ‘‘90 days’’. 

Page 216, line 8, strike ‘‘120 days’’ and insert ‘‘90 days’’. 

Page 216, line 13, strike ‘‘120 days’’ and insert ‘‘90 days’’. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MARKEY

OF MASSACHUSETTS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 637, lines 10 through 15, amend subparagraph (F) to read 

as follows: 

‘‘(F) OPEN PROTOCOLS AND STANDARDS.—The Secretary 

shall require as a condition of receiving funding under this 

subsection that demonstration projects utilize Internetbased or other open protocols and standards if available 

and appropriate.’’. 

Page 638, lines 12 through 14, amend paragraph (2) to read as 

follows: 

‘‘(2) require as a condition of receiving a grant under this 

section that grant recipients utilize Internet-based or other 

open protocols and standards if available and appropriate; 


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3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SHUSTER

OF PENNSYLVANIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 230, beginning on line 22, strike ‘‘the date of enactment of 

this Act’’ and insert ‘‘October 1, 2008’’. 

In section 12001 of division A of the bill— 

(1) redesignate subsections (b) and (c) as subsections (c) and (d), 

respectively, and 

(2) insert after subsection (a) the following: 

(b) FAILURE TO MAINTAIN EFFORT.—If a Governor is unable to 

certify that Federal funds will not supplant non-Federal funds pursuant to subsection (a), then the Federal funds apportioned to that 

State under this Act that will supplant non-Federal funds will be 

recaptured by the appropriate Federal agency and redistributed to 

States or agencies that can spend the Federal funds without supplanting non-Federal funds. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE NADLER OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 213, line 4, after the first dollar amount, insert ‘‘(increased 

by $1,500,000,000)’’. 

Page 213, line 4, after the second dollar amount, insert ‘‘(increased by $1,350,000,000)’’. 

Page 213, line 10, after the first dollar amount, insert ‘‘(increased 

by $150,000,000)’’. 

Page 216, line 2, after the dollar amount, insert ‘‘(increased by 

$1,500,000,000)’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

NEUGEBAUER OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Strike division A (and redesignate remaining provisions accordingly). 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATERS OF

CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 125, line 6, insert ‘‘(including projects funded under section 

6002 of division B of this Act)’’ after ‘‘sectors’’. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FLAKE OF

ARIZONA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 212, strike lines 9 through 24. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KISSELL OF

NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 111, after line 7 insert the following new section: 


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SEC. 7005. PROCUREMENT FOR DEPARTMENT OF HOMELAND SECURITY. 

(a) REQUIREMENT.—Except as provided in subsections (c) through 

(e), funds appropriated or otherwise available to the Department of 

Homeland Security may not be used for the procurement of an item 

described in subsection (b) if the item is not grown, reprocessed, reused, or produced in the United States. 

(b) COVERED ITEMS.—An item referred to in subsection (a) is any 

of the following, if the item is directly related to the national security interests of the United States: 

(1) An article or item of— 

(A) clothing and the materials and components thereof, 

other than sensors, electronics, or other items added to, 

and not normally associated with, clothing (and the materials and components thereof); 

(B) tents, tarpaulins, or covers; 

(C) cotton and other natural fiber products, woven silk 

or woven silk blends, spun silk yarn for cartridge cloth, 

synthetic fabric or coated synthetic fabric (including all 

textile fibers and yarns that are for use in such fabrics),canvas products, or wool (whether in the form of fiber 

or yarn or contained in fabrics, materials, or manufactured 

articles); or 

(D) any item of individual equipment manufactured from 

or containing such fibers, yarns, fabrics, or materials. 

(c) AVAILABILITY EXCEPTION.—Subsection (a) does not apply to 

the extent that the Secretary of Homeland Security determines 

that satisfactory quality and sufficient quantity of any such article 

or item described in subsection (b)(1) grown, reprocessed, reused, or 

produced in the United States cannot be procured as and when 

needed. 

(d) EXCEPTION FOR CERTAIN PROCUREMENTS OUTSIDE THE

UNITED STATES.—Subsection (a) does not apply to the following: 

(1) Procurements by vessels in foreign waters. 

(2) Emergency procurements. 

(e) EXCEPTION FOR SMALL PURCHASES.—Subsection (a) does not 

apply to purchases for amounts not greater than the simplified acquisition threshold referred to in section 2304(g) of title 10, United 

States Code. 

(f) APPLICABILITY TO CONTRACTS AND SUBCONTRACTS FOR PRO- CUREMENT OF COMMERCIAL ITEMS.—This section is applicable to 

contracts and subcontracts for the procurement of commercial 

items notwithstanding section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 430). 

(g) GEOGRAPHIC COVERAGE.—In this section, the term ‘‘United 

States’’ includes the possessions of the United States. 

(h) NOTIFICATION REQUIRED WITHIN 7 DAYS AFTER CONTRACT

AWARD IF CERTAIN EXCEPTIONS APPLIED.—In the case of any contract for the procurement of an item described in subsection (b)(1), 

if the Secretary of Homeland Security applies an exception set 

forth in subsection (c) with respect to that contract, the Secretary 

shall, not later than 7 days after the award of the contract, post 

a notification that the exception has been applied on the Internet 

site maintained by the General Services Administration know as 

FedBizOps.gov (or any successor site). 


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(i) TRAINING DURING FISCAL YEAR 2008.— 

(1) IN GENERAL.—The Secretary of Homeland Security shall 

ensure that each member of the acquisition workforce in the 

Department of Homeland Security who participates personally 

and substantially in the acquisition of textiles on a regular 

basis receives training during fiscal year 2009 on the requirements of this section and the regulations implementing this 

section. 

(2) INCLUSION OF INFORMATION IN NEW TRAINING PROGRAMS.—The Secretary shall ensure that any training program 

for the acquisition work force developed or implemented after 

the date of the enactment of this Act includes comprehensive 

information on the requirements described in paragraph (1). 

(j) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.— 

(1) IN GENERAL.—No provision of this section shall apply to 

the extent the Secretary of Homeland Security, in consultation 

with the United States Trade Representative, determines that 

it is in inconsistent with United States obligations under an 

international agreement. 

(2) REPORT.—The Secretary of Homeland Security shall submit a report each year to Congress containing, with respect to 

the year covered by the report— 

(A) a list of each provision of this section that did not 

apply during that year pursuant to a determination by the 

Secretary under paragraph (1); and 

(B) a list of each contract awarded by the Department of 

Homeland Security during that year without regard to a 

provision in this section because that provision was made 

inapplicable pursuant to such a determination. 

(k) EFFECTIVE DATE.—This section applies with respect to contracts entered into by the Department of Homeland Security after 

the date of the enactment of this Act. 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PLATTS OF

PENNSYLVANIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 35, after line 5, insert the following: 

PART 4—FURTHER ACCOUNTABILITY AND 

TRANSPARENCY PROVISIONS 

SEC. 1261. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This part may be cited as the ‘‘Whistleblower 

Protection Enhancement Act of 2009’’. 

(b) TABLE OF CONTENTS.—The table of contents for this part is 

as follows: 

PART 4—FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

Sec. 1261. Short title; table of contents. 

Sec. 1262. Clarification of disclosures covered. 

Sec. 1263. Definitional amendments. 

Sec. 1264. Rebuttable presumption. 

Sec. 1265. Nondisclosure policies, forms, and agreements. 

Sec. 1266. Exclusion of agencies by the President. 

Sec. 1267. Disciplinary action. 


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Sec. 1268. Government Accountability Office study on revocation of security clearances. 

Sec. 1269. Alternative recourse. 

Sec. 1270. National security whistleblower rights. 

Sec. 1271. Enhancement of contractor employee whistleblower protections. 

Sec. 1272. Prohibited personnel practices affecting the Transportation Security Administration. 

Sec. 1273. Clarification of whistleblower rights relating to scientific and other research. 

Sec. 1274. Effective date. 

SEC. 1262. CLARIFICATION OF DISCLOSURES COVERED. 

(a) IN GENERAL.—Section 2302(b)(8) of title 5, United States 

Code, is amended— 

(1) in subparagraph (A)— 

(A) by striking ‘‘which the employee or applicant reasonably believes evidences’’ and inserting ‘‘, without restriction as to time, place, form, motive, context, forum, or 

prior disclosure made to any person by an employee or applicant, including a disclosure made in the ordinary course 

of an employee’s duties, that the employee or applicant 

reasonably believes is evidence of’’; and 

(B) in clause (i), by striking ‘‘a violation’’ and inserting 

‘‘any violation’’; and 

(2) in subparagraph (B)— 

(A) by striking ‘‘which the employee or applicant reasonably believes evidences’’ and inserting ‘‘, without restriction as to time, place, form, motive, context, forum, or 

prior disclosure made to any person by an employee or applicant, including a disclosure made in the ordinary course 

of an employee’s duties, of information that the employee 

or applicant reasonably believes is evidence of’’; and 

(B) in clause (i), by striking ‘‘a violation’’ and inserting 

‘‘any violation (other than a violation of this section)’’. 

(b) PROHIBITED PERSONNEL PRACTICES UNDER SECTION

2302(b)(9).—Title 5, United States Code, is amended in subsections 

(a)(3), (b)(4)(A), and (b)(4)(B)(i) of section 1214 and in subsections 

(a) and (e)(1) of section 1221 by inserting ‘‘or 2302(b)(9)(B)–(D)’’ 

after ‘‘section 2302(b)(8)’’ each place it appears. 

SEC. 1263. DEFINITIONAL AMENDMENTS. 

(a) DISCLOSURE.—Section 2302(a)(2) of title 5, United States 

Code, is amended— 

(1) in subparagraph (B)(ii), by striking ‘‘and’’ at the end; 

(2) in subparagraph (C)(iii), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(D) ‘disclosure’ means a formal or informal communication, 

but does not include a communication concerning policy decisions that lawfully exercise discretionary authority unless the 

employee or applicant providing the disclosure reasonably believes that the disclosure evidences— 

‘‘(i) any violation of any law, rule, or regulation; or 

‘‘(ii) gross mismanagement, a gross waste of funds, an 

abuse of authority, or a substantial and specific danger to 

public health or safety.’’. 

(b) CLEAR AND CONVINCING EVIDENCE.—Sections 1214(b)(4)(B)(ii) 

and 1221(e)(2) of title 5, United States Code, are amended by addVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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ing at the end the following: ‘‘For purposes of the preceding sentence, ‘clear and convincing evidence’ means evidence indicating 

that the matter to be proved is highly probable or reasonably certain.’’. 

SEC. 1264. REBUTTABLE PRESUMPTION. 

Section 2302(b) of title 5, United States Code, is amended by 

adding at the end the following: ‘‘For purposes of paragraph (8), 

any presumption relating to the performance of a duty by an employee who has authority to take, direct others to take, recommend, 

or approve any personnel action may be rebutted by substantial 

evidence. For purposes of paragraph (8), a determination as to 

whether an employee or applicant reasonably believes that such 

employee or applicant has disclosed information that evidences any 

violation of law, rule, regulation, gross mismanagement, a gross 

waste of funds, an abuse of authority, or a substantial and specific 

danger to public health or safety shall be made by determining 

whether a disinterested observer with knowledge of the essential 

facts known to or readily ascertainable by the employee or applicant could reasonably conclude that the actions of the Government 

evidence such violations, mismanagement, waste, abuse, or danger.’’. 

SEC. 1265. NONDISCLOSURE POLICIES, FORMS, AND AGREEMENTS. 

(a) PERSONNEL ACTION.—Section 2302(a)(2)(A) of title 5, United 

States Code, is amended— 

(1) in clause (x), by striking ‘‘and’’ at the end; 

(2) by redesignating clause (xi) as clause (xii); and 

(3) by inserting after clause (x) the following: 

‘‘(xi) the implementation or enforcement of any nondisclosure policy, form, or agreement; and’’. 

(b) PROHIBITED PERSONNEL PRACTICE.—Section 2302(b) of title 5, 

United States Code, is amended— 

(1) in paragraph (11), by striking ‘‘or’’ at the end; 

(2) by redesignating paragraph (12) as paragraph (14); and 

(3) by inserting after paragraph (11) the following: 

‘‘(12) implement or enforce any nondisclosure policy, form, or 

agreement, if such policy, form, or agreement does not contain 

the following statement: ‘These provisions are consistent with 

and do not supersede, conflict with, or otherwise alter the employee obligations, rights, or liabilities created by Executive 

Order No. 12958; section 7211 of title 5, United States Code 

(governing disclosures to Congress); section 1034 of title 10, 

United States Code (governing disclosures to Congress by 

members of the military); section 2302(b)(8) of title 5, United 

States Code (governing disclosures of illegality, waste, fraud, 

abuse, or public health or safety threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 and following) (governing disclosures that could expose confidential Government 

agents); and the statutes which protect against disclosures that 

could compromise national security, including sections 641, 

793, 794, 798, and 952 of title 18, United States Code, and section 4(b) of the Subversive Activities Control Act of 1950 (50 

U.S.C. 783(b)). The definitions, requirements, obligations, 

rights, sanctions, and liabilities created by such Executive 


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order and such statutory provisions are incorporated into this 

agreement and are controlling.’; 

‘‘(13) conduct, or cause to be conducted, an investigation, 

other than any ministerial or nondiscretionary factfinding activities necessary for the agency to perform its mission, of an 

employee or applicant for employment because of any activity 

protected under this section; or’’. 

SEC. 1266. EXCLUSION OF AGENCIES BY THE PRESIDENT. 

Section 2302(a)(2)(C) of title 5, United States Code, is amended 

by striking clause (ii) and inserting the following: 

‘‘(ii)(I) the Federal Bureau of Investigation, the Central 

Intelligence Agency, the Defense Intelligence Agency, the 

National Geospatial-Intelligence Agency, or the National 

Security Agency; or 

‘‘(II) as determined by the President, any Executive 

agency or unit thereof the principal function of which is 

the conduct of foreign intelligence or counterintelligence 

activities, if the determination (as that determination relates to a personnel action) is made before that personnel 

action; or’’. 

SEC. 1267. DISCIPLINARY ACTION. 

Section 1215(a)(3) of title 5, United States Code, is amended to 

read as follows: 

‘‘(3)(A) A final order of the Board may impose— 

‘‘(i) disciplinary action consisting of removal, reduction in 

grade, debarment from Federal employment for a period not to 

exceed 5 years, suspension, or reprimand; 

‘‘(ii) an assessment of a civil penalty not to exceed $1,000; or 

‘‘(iii) any combination of disciplinary actions described under 

clause (i) and an assessment described under clause (ii). 

‘‘(B) In any case in which the Board finds that an employee has 

committed a prohibited personnel practice under paragraph (8) or 

(9) of section 2302(b), the Board shall impose disciplinary action if 

the Board finds that the activity protected under such paragraph 

(8) or (9) (as the case may be) was the primary motivating factor, 

unless that employee demonstrates, by a preponderance of the evidence, that the employee would have taken, failed to take, or 

threatened to take or fail to take the same personnel action, in the 

absence of such protected activity.’’. 

SEC. 1268. GOVERNMENT ACCOUNTABILITY OFFICE STUDY ON REVOCATION OF SECURITY CLEARANCES. 

(a) REQUIREMENT.—The Comptroller General shall conduct a 

study of security clearance revocations, taking effect after 1996, 

with respect to personnel that filed claims under chapter 12 of title 

5, United States Code, in connection therewith. The study shall 

consist of an examination of the number of such clearances revoked, the number restored, and the relationship, if any, between 

the resolution of claims filed under such chapter and the restoration of such clearances. 

(b) REPORT.—Not later than 270 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and GovVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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ernmental Affairs of the Senate a report on the results of the study 

required by subsection (a). 

SEC. 1269. ALTERNATIVE RECOURSE. 

(a) IN GENERAL.—Section 1221 of title 5, United States Code, is 

amended by adding at the end the following: 

‘‘(k)(1) If, in the case of an employee, former employee, or applicant for employment who seeks corrective action (or on behalf of 

whom corrective action is sought) from the Merit Systems Protection Board based on an alleged prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(B)–(D), no final order or 

decision is issued by the Board within 180 days after the date on 

which a request for such corrective action has been duly submitted 

(or, in the event that a final order or decision is issued by the 

Board, whether within that 180-day period or thereafter, then, 

within 90 days after such final order or decision is issued, and so 

long as such employee, former employee, or applicant has not filed 

a petition for judicial review of such order or decision under subsection (h))— 

‘‘(A) such employee, former employee, or applicant may, after 

providing written notice to the Board, bring an action at law 

or equity for de novo review in the appropriate United States 

district court, which shall have jurisdiction over such action 

without regard to the amount in controversy, and which action 

shall, at the request of either party to such action, be tried by 

the court with a jury; and 

‘‘(B) in any such action, the court— 

‘‘(i) shall apply the standards set forth in subsection (e); 

and 

‘‘(ii) may award any relief which the court considers appropriate, including any relief described in subsection (g). 

An appeal from a final decision of a district court in an action 

under this paragraph may, at the election of the appellant, be 

taken to the Court of Appeals for the Federal Circuit (which shall 

have jurisdiction of such appeal), in lieu of the United States court 

of appeals for the circuit embracing the district in which the action 

was brought. 

‘‘(2) For purposes of this subsection, the term ‘appropriate United 

States district court’, as used with respect to an alleged prohibited 

personnel practice, means the United States district court for the 

district in which the prohibited personnel practice is alleged to 

have been committed, the judicial district in which the employment 

records relevant to such practice are maintained and administered, 

or the judicial district in which resides the employee, former employee, or applicant for employment allegedly affected by such practice. 

‘‘(3) This subsection applies with respect to any appeal, petition, 

or other request for corrective action duly submitted to the Board, 

whether pursuant to section 1214(b)(2), the preceding provisions of 

this section, section 7513(d), or any otherwise applicable provisions 

of law, rule, or regulation.’’. 

(b) REVIEW OF MSPB DECISIONS.—Section 7703(b) of such title 5 

is amended— 

(1) in the first sentence of paragraph (1), by striking ‘‘the 

United States Court of Appeals for the Federal Circuit’’ and inserting ‘‘the appropriate United States court of appeals’’; and 


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(2) by adding at the end the following: 

‘‘(3) For purposes of the first sentence of paragraph (1), the term 

‘appropriate United States court of appeals’ means the United 

States Court of Appeals for the Federal Circuit, except that in the 

case of a prohibited personnel practice described in section 

2302(b)(8) or 2302(b)(9)(B)–(D) (other than a case that, disregarding this paragraph, would otherwise be subject to paragraph 

(2)), such term means the United States Court of Appeals for the 

Federal Circuit and any United States court of appeals having jurisdiction over appeals from any United States district court which, 

under section 1221(k)(2), would be an appropriate United States 

district court for purposes of such prohibited personnel practice.’’. 

(c) COMPENSATORY DAMAGES.—Section 1221(g)(1)(A)(ii) of such 

title 5 is amended by striking all after ‘‘travel expenses,’’ and inserting ‘‘any other reasonable and foreseeable consequential damages, and compensatory damages (including attorney’s fees, interest, reasonable expert witness fees, and costs).’’. 

(d) CONFORMING AMENDMENTS.— (1) Section 1221(h) of such title 5 is amended by adding at 

the end the following: 

‘‘(3) Judicial review under this subsection shall not be available 

with respect to any decision or order as to which the employee, 

former employee, or applicant has filed a petition for judicial review under subsection (k).’’. 

(2) Section 7703(c) of such title 5 is amended by striking 

‘‘court.’’ and inserting ‘‘court, and in the case of a prohibited 

personnel practice described in section 2302(b)(8) or 

2302(b)(9)(B)–(D) brought under any provision of law, rule, or 

regulation described in section 1221(k)(3), the employee or applicant shall have the right to de novo review in accordance 

with section 1221(k).’’. 

SEC. 1270. NATIONAL SECURITY WHISTLEBLOWER RIGHTS. 

(a) IN GENERAL.—Chapter 23 of title 5, United States Code, is 

amended by inserting after section 2303 the following: 

‘‘§ 2303a. National security whistleblower rights 

‘‘(a) PROHIBITION OF REPRISALS.— ‘‘(1) IN GENERAL.—In addition to any rights provided in section 2303 of this title, title VII of Public Law 105–272, or any 

other provision of law, an employee or former employee in a 

covered agency may not be discharged, demoted, or otherwise 

discriminated against (including by denying, suspending, or revoking a security clearance, or by otherwise restricting access 

to classified or sensitive information) as a reprisal for making 

a disclosure described in paragraph (2). 

‘‘(2) DISCLOSURES DESCRIBED.—A disclosure described in this 

paragraph is any disclosure of covered information which is 

made— 

‘‘(A) by an employee or former employee in a covered 

agency (without restriction as to time, place, form, motive, 

context, or prior disclosure made to any person by an employee or former employee, including a disclosure made in 

the course of an employee’s duties); and 

‘‘(B) to an authorized Member of Congress, an authorized 

official of an Executive agency, or the Inspector General of 


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the covered agency in which such employee or former employee is or was employed. 

‘‘(b) INVESTIGATION OF COMPLAINTS.—An employee or former employee in a covered agency who believes that such employee or 

former employee has been subjected to a reprisal prohibited by subsection (a) may submit a complaint to the Inspector General and 

the head of the covered agency. The Inspector General shall investigate the complaint and, unless the Inspector General determines 

that the complaint is frivolous, submit a report of the findings of 

the investigation within 120 days to the employee or former employee (as the case may be) and to the head of the covered agency. 

‘‘(c) REMEDY.— 

‘‘(1) Within 180 days of the filing of the complaint, the head 

of the covered agency shall, taking into consideration the report of the Inspector General under subsection (b) (if any), determine whether the employee or former employee has been 

subjected to a reprisal prohibited by subsection (a), and shall 

either issue an order denying relief or shall implement corrective action to return the employee or former employee, as nearly as possible, to the position he would have held had the reprisal not occurred, including voiding any directive or order denying, suspending, or revoking a security clearance or otherwise restricting access to classified or sensitive information 

that constituted a reprisal, as well as providing back pay and 

related benefits, medical costs incurred, travel expenses, any 

other reasonable and foreseeable consequential damages, and 

compensatory damages (including attorney’s fees, interest, reasonable expert witness fees, and costs). If the head of the covered agency issues an order denying relief, he shall issue a report to the employee or former employee detailing the reasons 

for the denial. 

‘‘(2)(A) If the head of the covered agency, in the process of 

implementing corrective action under paragraph (1), voids a directive or order denying, suspending, or revoking a security 

clearance or otherwise restricting access to classified or sensitive information that constituted a reprisal, the head of the 

covered agency may re-initiate procedures to issue a directive 

or order denying, suspending, or revoking a security clearance 

or otherwise restricting access to classified or sensitive information only if those re-initiated procedures are based exclusively on national security concerns and are unrelated to the 

actions constituting the original reprisal. 

‘‘(B) In any case in which the head of a covered agency reinitiates procedures under subparagraph (A), the head of the 

covered agency shall issue an unclassified report to its Inspector General and to authorized Members of Congress (with a 

classified annex, if necessary), detailing the circumstances of 

the agency’s re-initiated procedures and describing the manner 

in which those procedures are based exclusively on national security concerns and are unrelated to the actions constituting 

the original reprisal. The head of the covered agency shall also 

provide periodic updates to the Inspector General and authorized Members of Congress detailing any significant actions 

taken as a result of those procedures, and shall respond 


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promptly to inquiries from authorized Members of Congress regarding the status of those procedures. 

‘‘(3) If the head of the covered agency has not made a determination under paragraph (1) within 180 days of the filing of 

the complaint (or he has issued an order denying relief, in 

whole or in part, whether within that 180-day period or thereafter, then, within 90 days after such order is issued), the employee or former employee may bring an action at law or equity 

for de novo review to seek any corrective action described in 

paragraph (1) in the appropriate United States district court 

(as defined by section 1221(k)(2)), which shall have jurisdiction 

over such action without regard to the amount in controversy. 

An appeal from a final decision of a district court in an action 

under this paragraph may, at the election of the appellant, be 

taken to the Court of Appeals for the Federal Circuit (which 

shall have jurisdiction of such appeal), in lieu of the United 

States court of appeals for the circuit embracing the district in 

which the action was brought. 

‘‘(4) An employee or former employee adversely affected or 

aggrieved by an order issued under paragraph (1), or who 

seeks review of any corrective action determined under paragraph (1), may obtain judicial review of such order or determination in the United States Court of Appeals for the Federal 

Circuit or any United States court of appeals having jurisdiction over appeals from any United States district court which, 

under section 1221(k)(2), would be an appropriate United 

States district court. No petition seeking such review may be 

filed more than 60 days after issuance of the order or the determination to implement corrective action by the head of the 

agency. Review shall conform to chapter 7. 

‘‘(5)(A) If, in any action for damages or relief under paragraph (3) or (4), an Executive agency moves to withhold information from discovery based on a claim that disclosure would 

be inimical to national security by asserting the privilege commonly referred to as the ‘state secrets privilege’, and if the assertion of such privilege prevents the employee or former employee from establishing an element in support of the employee’s or former employee’s claim, the court shall resolve the disputed issue of fact or law in favor of the employee or former 

employee, provided that an Inspector General investigation 

under subsection (b) has resulted in substantial confirmation of 

that element, or those elements, of the employee’s or former 

employee’s claim. 

‘‘(B) In any case in which an Executive agency asserts the 

privilege commonly referred to as the ‘state secrets privilege’, 

whether or not an Inspector General has conducted an investigation under subsection (b), the head of that agency shall, at 

the same time it asserts the privilege, issue a report to authorized Members of Congress, accompanied by a classified annex 

if necessary, describing the reasons for the assertion, explaining why the court hearing the matter does not have the ability 

to maintain the protection of classified information related to 

the assertion, detailing the steps the agency has taken to arrive at a mutually agreeable settlement with the employee or 

former employee, setting forth the date on which the classified 


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information at issue will be declassified, and providing all relevant information about the underlying substantive matter. 

‘‘(d) APPLICABILITY TO NON-COVERED AGENCIES.—An employee or 

former employee in an Executive agency (or element or unit thereof) that is not a covered agency shall, for purposes of any disclosure 

of covered information (as described in subsection (a)(2)) which consists in whole or in part of classified or sensitive information, be 

entitled to the same protections, rights, and remedies under this 

section as if that Executive agency (or element or unit thereof) 

were a covered agency. 

‘‘(e) CONSTRUCTION.—Nothing in this section may be construed— 

‘‘(1) to authorize the discharge of, demotion of, or discrimination against an employee or former employee for a disclosure 

other than a disclosure protected by subsection (a) or (d) of this 

section or to modify or derogate from a right or remedy otherwise available to an employee or former employee; or 

‘‘(2) to preempt, modify, limit, or derogate any rights or remedies available to an employee or former employee under any 

other provision of law, rule, or regulation (including the LloydLa Follette Act). 

No court or administrative agency may require the exhaustion of 

any right or remedy under this section as a condition for pursuing 

any other right or remedy otherwise available to an employee or 

former employee under any other provision of law, rule, or regulation (as referred to in paragraph (2)). 

‘‘(f) DEFINITIONS.—For purposes of this section— 

‘‘(1) the term ‘covered information’, as used with respect to 

an employee or former employee, means any information (including classified or sensitive information) which the employee 

or former employee reasonably believes evidences— 

‘‘(A) any violation of any law, rule, or regulation; or 

‘‘(B) gross mismanagement, a gross waste of funds, an 

abuse of authority, or a substantial and specific danger to 

public health or safety; 

‘‘(2) the term ‘covered agency’ means— 

‘‘(A) the Federal Bureau of Investigation, the Office of 

the Director of National Intelligence, the Central Intelligence Agency, the Defense Intelligence Agency, the National Geospatial-Intelligence Agency, the National Security Agency, and the National Reconnaissance Office; and 

‘‘(B) any other Executive agency, or element or unit 

thereof, determined by the President under section 

2302(a)(2)(C)(ii)(II) to have as its principal function the 

conduct of foreign intelligence or counterintelligence activities; 

‘‘(3) the term ‘authorized Member of Congress’ means— 

‘‘(A) with respect to covered information about sources 

and methods of the Central Intelligence Agency, the Director of National Intelligence, and the National Intelligence 

Program (as defined in section 3(6) of the National Security Act of 1947), a member of the House Permanent Select 

Committee on Intelligence, the Senate Select Committee 

on Intelligence, or any other committees of the House of 

Representatives or Senate to which this type of information is customarily provided; 


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‘‘(B) with respect to special access programs specified in 

section 119 of title 10, an appropriate member of the Congressional defense committees (as defined in such section); 

and 

‘‘(C) with respect to other covered information, a member 

of the House Permanent Select Committee on Intelligence, 

the Senate Select Committee on Intelligence, the House 

Committee on Oversight and Government Reform, the 

Senate Committee on Homeland Security and Governmental Affairs, or any other committees of the House of 

Representatives or the Senate that have oversight over the 

program which the covered information concerns; and 

‘‘(4) the term ‘authorized official of an Executive agency’ 

shall have such meaning as the Office of Personnel Management shall by regulation prescribe, except that such term shall, 

with respect to any employee or former employee in an agency, 

include the head, the general counsel, and the ombudsman of 

such agency.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for chapter 23 

of title 5, United States Code, is amended by inserting after the 

item relating to section 2303 the following: 

‘‘2303a. National security whistleblower rights.’’. 

SEC. 1271. ENHANCEMENT OF CONTRACTOR EMPLOYEE WHISTLEBLOWER PROTECTIONS. 

(a) CIVILIAN AGENCY CONTRACTS.—Section 315(c) of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 265(c)) 

is amended— 

(1) in paragraph (1), by striking ‘‘If the head’’ and all that 

follows through ‘‘actions:’’ and inserting the following: ‘‘Not 

later than 180 days after submission of a complaint under subsection (b), the head of the executive agency concerned shall 

determine whether the contractor concerned has subjected the 

complainant to a reprisal prohibited by subsection (a) and shall 

either issue an order denying relief or shall take one or more 

of the following actions:’’; and 

(2) by redesignating paragraph (3) as paragraph (4) and adding after paragraph (2) the following new paragraph (3): 

‘‘(3) If the head of an executive agency has not issued an order 

within 180 days after the submission of a complaint under subsection (b) and there is no showing that such delay is due to the 

bad faith of the complainant, the complainant shall be deemed to 

have exhausted his administrative remedies with respect to the 

complaint, and the complainant may bring an action at law or equity for de novo review to seek compensatory damages and other 

relief available under this section in the appropriate district court 

of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy, and which action 

shall, at the request of either party to such action, be tried by the 

court with a jury.’’. 

(b) ARMED SERVICES CONTRACTS.—Section 2409(c) of title 10, 

United States Code, is amended— 

(1) in paragraph (1), by striking ‘‘If the head’’ and all that 

follows through ‘‘actions:’’ and inserting the following: ‘‘Not 

later than 180 days after submission of a complaint under subsection (b), the head of the agency concerned shall determine 


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whether the contractor concerned has subjected the complainant to a reprisal prohibited by subsection (a) and shall either 

issue an order denying relief or shall take one or more of the 

following actions:’’; and 

(2) by redesignating paragraph (3) as paragraph (4) and adding after paragraph (2) the following new paragraph (3): 

‘‘(3) If the head of an agency has not issued an order within 180 

days after the submission of a complaint under subsection (b) and 

there is no showing that such delay is due to the bad faith of the 

complainant, the complainant shall be deemed to have exhausted 

his administrative remedies with respect to the complaint, and the 

complainant may bring an action at law or equity for de novo review to seek compensatory damages and other relief available 

under this section in the appropriate district court of the United 

States, which shall have jurisdiction over such an action without 

regard to the amount in controversy, and which action shall, at the 

request of either party to such action, be tried by the court with 

a jury.’’. 

SEC. 1272. PROHIBITED PERSONNEL PRACTICES AFFECTING THE 

TRANSPORTATION SECURITY ADMINISTRATION. 

(a) IN GENERAL.—Chapter 23 of title 5, United States Code, is 

amended— 

(1) by redesignating sections 2304 and 2305 as sections 2305 

and 2306, respectively; and 

(2) by inserting after section 2303a (as inserted by section 

1270) the following: 

‘‘§ 2304. Prohibited personnel practices affecting the Transportation Security Administration 

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, 

any individual holding or applying for a position within the Transportation Security Administration shall be covered by— 

‘‘(1) the provisions of section 2302(b)(1), (8), and (9); 

‘‘(2) any provision of law implementing section 2302(b)(1), 

(8), or (9) by providing any right or remedy available to an employee or applicant for employment in the civil service; and 

‘‘(3) any rule or regulation prescribed under any provision of 

law referred to in paragraph (1) or (2). 

‘‘(b) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to affect any rights, apart from those described in subsection (a), to which an individual described in subsection (a) might 

otherwise be entitled under law. 

‘‘(c) EFFECTIVE DATE.—This section shall take effect as of the 

date of the enactment of this section.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for chapter 23 

of title 5, United States Code, is amended by striking the items relating to sections 2304 and 2305, respectively, and by inserting the 

following: 

‘‘2304. Prohibited personnel practices affecting the Transportation Security Administration. 

‘‘2305. Responsibility of the Government Accountability Office. 

‘‘2306. Coordination with certain other provisions of law.’’. 


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SEC. 1273. CLARIFICATION OF WHISTLEBLOWER RIGHTS RELATING 

TO SCIENTIFIC AND OTHER RESEARCH. 

(a) IN GENERAL.—Section 2302 of title 5, United States Code, is 

amended by adding at the end the following: 

‘‘(f) As used in section 2302(b)(8), the term ‘abuse of authority’ includes— 

‘‘(1) any action that compromises the validity or accuracy of 

federally funded research or analysis; 

‘‘(2) the dissemination of false or misleading scientific, medical, or technical information; 

‘‘(3) any action that restricts or prevents an employee or any 

person performing federally funded research or analysis from 

publishing in peer-reviewed journals or other scientific publications or making oral presentations at professional society meetings or other meetings of their peers; and 

‘‘(4) any action that discriminates for or against any employee or applicant for employment on the basis of religion, as 

defined by section 1273(b) of the Whistleblower Protection Enhancement Act of 2009.’’. 

(b) DEFINITION.—As used in section 2302(f)(3) of title 5, United 

States Code (as amended by subsection (a)), the term ‘‘on the basis 

of religion’’ means— 

(1) prohibiting personal religious expression by Federal employees to the greatest extent possible, consistent with requirements of law and interests in workplace efficiency; 

(2) requiring religious participation or non-participation as a 

condition of employment, or permitting religious harassment; 

(3) failing to accommodate employees’ exercise of their religion; 

(4) failing to treat all employees with the same respect and 

consideration, regardless of their religion (or lack thereof); 

(5) restricting personal religious expression by employees in 

the Federal workplace except where the employee’s interest in 

the expression is outweighed by the government’s interest in 

the efficient provision of public services or where the expression intrudes upon the legitimate rights of other employees or 

creates the appearance, to a reasonable observer, of an official 

endorsement of religion; 

(6) regulating employees’ personal religious expression on 

the basis of its content or viewpoint, or suppressing employees’ 

private religious speech in the workplace while leaving unregulated other private employee speech that has a comparable effect on the efficiency of the workplace, including ideological 

speech on politics and other topics; 

(7) failing to exercise their authority in an evenhanded and 

restrained manner, and with regard for the fact that Americans are used to expressions of disagreement on controversial 

subjects, including religious ones; 

(8) failing to permit an employee to engage in private religious expression in personal work areas not regularly open to 

the public to the same extent that they may engage in nonreligious private expression, subject to reasonable content- and 

viewpoint-neutral standards and restrictions; 

(9) failing to permit an employee to engage in religious expression with fellow employees, to the same extent that they 


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may engage in comparable nonreligious private expression, 

subject to reasonable and content-neutral standards and restrictions; 

(10) failing to permit an employee to engage in religious expression directed at fellow employees, and may even attempt 

to persuade fellow employees of the correctness of their religious views, to the same extent as those employees may engage 

in comparable speech not involving religion; 

(11) inhibiting an employee from urging a colleague to participate or not to participate in religious activities to the same 

extent that, consistent with concerns of workplace efficiency, 

they may urge their colleagues to engage in or refrain from 

other personal endeavors, except that the employee must refrain from such expression when a fellow employee asks that 

it stop or otherwise demonstrates that it is unwelcome; 

(12) failing to prohibit expression that is part of a larger pattern of verbal attacks on fellow employees (or a specific employee) not sharing the faith of the speaker; 

(13) preventing an employee from— 

(A) wearing personal religious jewelry absent special circumstances (such as safety concerns) that might require a 

ban on all similar nonreligious jewelry; or 

(B) displaying religious art and literature in their personal work areas to the same extent that they may display 

other art and literature, so long as the viewing public 

would reasonably understand the religious expression to 

be that of the employee acting in her personal capacity, 

and not that of the government itself; 

(14) prohibiting an employee from using their private time to 

discuss religion with willing coworkers in public spaces to the 

same extent as they may discuss other subjects, so long as the 

public would reasonably understand the religious expression to 

be that of the employees acting in their personal capacities; 

(15) discriminating against an employee on the basis of their 

religion, religious beliefs, or views concerning their religion by 

promoting, refusing to promote, hiring, refusing to hire, or otherwise favoring or disfavoring, an employee or potential employee because of his or her religion, religious beliefs, or views 

concerning religion, or by explicitly or implicitly, insisting that 

the employee participate in religious activities as a condition 

of continued employment, promotion, salary increases, preferred job assignments, or any other incidents of employment 

or insisting that an employee refrain from participating in religious activities outside the workplace except pursuant to otherwise legal, neutral restrictions that apply to employees’ offduty conduct and expression in general (such as restrictions on 

political activities prohibited by the Hatch Act); 

(16) prohibiting a supervisor’s religious expression where it 

is not coercive and is understood to be his or her personal 

view, in the same way and to the same extent as other constitutionally valued speech; 

(17) permitting a hostile environment, or religious harassment, in the form of religiously discriminatory intimidation, or 

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pervisors or fellow workers, as determined by its frequency or 

repetitiveness, and severity; 

(18) failing to accommodate an employee’s exercise of their 

religion unless such accommodation would impose an undue 

hardship on the conduct of the agency’s operations, based on 

real rather than speculative or hypothetical cost and without 

disfavoring other, nonreligious accommodations; and 

(19) in those cases where an agency’s work rule imposes a 

substantial burden on a particular employee’s exercise of religion, failing to grant the employee an exemption from that 

rule, absent a compelling interest in denying the exemption 

and where there is no less restrictive means of furthering that 

interest. 

(c) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to create any new right, benefit, or trust responsibility, 

substantive or procedural, enforceable at law or equity by a party 

against the United States, its agencies, its officers, or any person. 

SEC. 1274. EFFECTIVE DATE. 

This part shall take effect 30 days after the date of the enactment of this Act, except as provided in the amendment made by 

section 1272(a)(2). 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TEAQUE

OF NEW MEXICO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of section 1226 (page 25, after line 21), insert the following: 

(8) The website shall provide, by location, links to and information on how to access job opportunities created at or by entities receiving funding under this Act, including, if possible, 

links to or information about local employment agencies; state, 

local and other public agencies receiving funding; and private 

firms contracted to perform work funded by this Act 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CAMP OF

MICHIGAN, OR HIS DESIGNEE, DEBATABLE FOR 60 MINUTES

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE, ETC. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Economic Recovery Act of 2009’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act is as 

follows: 

Sec. 1. Short title, etc. 

TITLE I—TAX PROVISIONS 

Sec. 100. References. 

Subtitle A—Reduction in Individual Tax Rates For 2009 and 2010 

Sec. 101. 10 percent rate bracket for individuals reduced to 5 percent for 2009 and 

2010. 

Sec. 102. 15 percent rate bracket for individuals reduced to 10 percent for 2009 and 

2010. 


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Subtitle B—Alternative Minimum Tax Relief For Individuals 

Sec. 111. Extension of alternative minimum tax relief for nonrefundable personal 

credits. 

Sec. 112. Increase in alternative minimum tax exemption amounts for 2009 and 

2010. 

Subtitle C—First-Time Homebuyer Credit 

Sec. 121. Extension and modification of first-time homebuyer credit. 

Subtitle D—Tax Incentives For Business 

PART 1—TEMPORARY INVESTMENT INCENTIVES

Sec. 131. Special allowance for certain property acquired during 2009. 

Sec. 132. Temporary increase in limitations on expensing of certain depreciable 

business assets. 

PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES

Sec. 136. 5-year carryback of operating losses. 

Sec. 137. Exception for TARP recipients. 

PART 3—DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME

Sec. 141. Deduction for qualified small business income. 

PART 4—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

Sec. 146. Repeal of withholding tax on government contractors. 

Subtitle E—Deduction For Qualified Health Insurance Costs of Individuals 

Sec. 151. Above-the-line deduction for qualified health insurance costs of individuals. 

Subtitle F—Temporary Exclusion of Unemployment Compensation From Gross 

Income 

Sec. 161. Temporary exclusion of unemployment compensation from gross income. 

Subtitle G—No Impact on Social Security Trust Funds 

Sec. 171. No impact on social security trust funds. 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS 

Sec. 200. Short title. 

Sec. 201. Extension of emergency unemployment compensation program. 

Sec. 202. Additional eligibility requirements for emergency unemployment compensation. 

Sec. 203. Special transfers. 

TITLE III—NO TAX INCREASES TO PAY FOR SPENDING 

Sec. 301. No Tax Increases to Pay for Spending. 

TITLE I—TAX PROVISIONS 

SEC. 100. REFERENCES. 

Except as otherwise expressly provided, whenever in this title an 

amendment or repeal is expressed in terms of an amendment to, 

or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal 

Revenue Code of 1986. 

Subtitle A—Reduction in Individual Tax Rates For 2009 and 

2010 

SEC. 101. 10 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO 

5 PERCENT FOR 2009 AND 2010. 

(a) IN GENERAL.—Clause (i) of section 1(i)(1)(A) is amended by 

inserting ‘‘(5 percent in the case of any taxable year beginning in 

2009 or 2010)’’ after ‘‘10 percent’’. 


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(b) EFFECTIVE DATE.—The amendment made by this section shall 

apply to taxable years beginning after December 31, 2008. 

SEC. 102. 15 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO 

10 PERCENT FOR 2009 AND 2010. 

(a) IN GENERAL.—Subsection (i) of section 1 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after 

paragraph (2) the following new paragraph: 

‘‘(3) REDUCTION IN 15 PERCENT RATE FOR 2009 AND 2010.—In 

the case of any taxable year beginning in 2009 or 2010, ‘10 percent’ shall be substituted for ‘15 percent’ in the tables under 

subsections (a), (b), (c), (d), and (e). The preceding sentence 

shall be applied after application of paragraph (1).’’. 

(c) EFFECTIVE DATE.—The amendment made by this section shall 

apply to taxable years beginning after December 31, 2008. 

Subtitle B—Alternative Minimum Tax Relief For Individuals 

SEC. 111. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 

NONREFUNDABLE PERSONAL CREDITS. 

(a) IN GENERAL.—Paragraph (2) of section 26(a) (relating to special rule for taxable years 2000 through 2008) is amended— 

(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, 2009, or 2010’’, 

and 

(2) by striking ‘‘2008’’ in the heading thereof and inserting ‘‘2010’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

SEC. 112. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION 

AMOUNTS FOR 2009 AND 2010. 

(a) IN GENERAL.—Paragraph (1) of section 55(d) (relating to exemption amount) is amended— 

(1) by striking ‘‘($69,950 in the case of taxable years beginning in 2008)’’ in subparagraph (A) and inserting ‘‘($55,000 in 

the case of taxable years beginning in 2009 or 2010)’’, and 

(2) by striking ‘‘($46,200 in the case of taxable years beginning in 2008)’’ in subparagraph (B) and inserting ‘‘($38,750 in 

the case of taxable years beginning in 2009 or 2010)’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

Subtitle C—First-Time Homebuyer Credit 

SEC. 121. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER CREDIT. 

(a) EXTENSION OF CREDIT.—Subsection (i) of section 36 (as redesignated by subsection (d)) is amended by striking ‘‘July 1, 2009’’ 

and inserting ‘‘January 1, 2010’’. 

(b) REPEAL OF FIRST-TIME HOMEBUYER REQUIREMENT.— 

(1) IN GENERAL.—Subsection (a) of section 36 is amended by 

striking ‘‘an individual who is a first-time homebuyer of a principal residence’’ and inserting ‘‘an individual who purchases a 

principal residence’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Section 36(b)(1)(A) is amended by inserting ‘‘with respect to any taxpayer for any taxable year’’ after ‘‘subsection (a)’’. 


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(B) Section 36(c) is amended by striking paragraph (1) 

and by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively. 

(C) The heading of section 36 (and the item relating to 

such section in the table of sections for subpart C of part 

IV of subchapter A of chapter 1) are amended by striking 

‘‘first-time homebuyer’’ and inserting ‘‘homebuyer’’. 

(c) REPEAL OF RECAPTURE RULES.— 

(1) IN GENERAL.—Paragraph (4) of section 36(f) is amended 

by adding at the end the following new subparagraph: 

‘‘(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.—In 

the case of any credit allowed with respect to the purchase 

of a principal residence after December 31, 2008— 

‘‘(i) paragraph (1) shall not apply, and 

‘‘(ii) paragraph (2) shall apply only if the disposition 

or cessation described in paragraph (2) with respect to 

such residence occurs during the 36-month period beginning on the date of the purchase of such residence 

by the taxpayer.’’. 

(2) CONFORMING AMENDMENT.—Subsection (g) of section 36 is 

amended by striking ‘‘subsection (c)’’ and inserting ‘‘subsections 

(c) and (f)(4)(D)’’. 

(d) DOWNPAYMENT REQUIREMENT.—Section 36 is amended by redesignating subsection (h) as subsection (i) and by inserting after 

subsection (g) the following new subsection: 

‘‘(h) DOWNPAYMENT REQUIREMENT.—No credit shall be allowed 

under subsection (a) to any taxpayer with respect to the purchase 

of any residence unless such taxpayer makes a downpayment of not 

less 5 percent of the purchase price of such residence. For purposes 

of the preceding sentence, an amount shall not be treated as a 

downpayment if such amount is repayable by the taxpayer to any 

other person.’’. 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to residences 

purchased after December 31, 2008. 

(2) DOWNPAYMENT REQUIREMENT.—The amendment made by 

subsection (d) shall apply to residences purchased after the 

date of the enactment of this Act. 

Subtitle D—Tax Incentives For Business 

PART 1—TEMPORARY INVESTMENT 

INCENTIVES 

SEC. 131. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED 

DURING 2009. 

(a) IN GENERAL.—Paragraph (2) of section 168(k) is amended— 

(1) by striking ‘‘January 1, 2010’’ and inserting ‘‘January 1, 

2011’’, and 

(2) by striking ‘‘January 1, 2009’’ each place it appears and 

inserting ‘‘January 1, 2010’’. 

(b) CONFORMING AMENDMENTS.— 


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(1) The heading for subsection (k) of section 168 is amended 

by striking ‘‘JANUARY 1, 2009’’ and inserting ‘‘JANUARY 1, 

2010’’. 

(2) The heading for clause (ii) of section 168(k)(2)(B) is 

amended by striking ‘‘PRE-JANUARY 1, 2009’’ and inserting ‘‘PREJANUARY 1, 2010’’. 

(3) Subparagraph (D) of section 168(k)(4) is amended— 

(A) by striking ‘‘and’’ at the end of clause (i), 

(B) by redesignating clause (ii) as clause (v), and 

(C) by inserting after clause (i) the following new 

clauses: 

‘‘(ii) ‘April 1, 2008’ shall be substituted for ‘January 

1, 2008’ in subparagraph (A)(iii)(I) thereof, 

‘‘(iii) ‘January 1, 2009’ shall be substituted for ‘January 1, 2010’ each place it appears, 

‘‘(iv) ‘January 1, 2010’ shall be substituted for ‘January 1, 2011’ in subparagraph (A)(iv) thereof, and’’. 

(4) Subparagraph (B) of section 168(l)(5) is amended by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

(5) Subparagraph (B) of section 1400N(d)(3) is amended by 

striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

(c) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall apply to property 

placed in service after December 31, 2008, in taxable years 

ending after such date. 

(2) TECHNICAL AMENDMENT.—Section 168(k)(4)(D)(ii) of the 

Internal Revenue Code of 1986, as added by subsection 

(b)(3)(C), shall apply to taxable years ending after March 31, 

2008. 

SEC. 132. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF 

CERTAIN DEPRECIABLE BUSINESS ASSETS. 

(a) IN GENERAL.—Paragraph (7) of section 179(b) is amended— 

(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 2009’’, and 

(2) by striking ‘‘2008’’ in the heading thereof and inserting 

‘‘2008, AND 2009’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

PART 2—5-YEAR CARRYBACK OF OPERATING 

LOSSES 

SEC. 136. 5-YEAR CARRYBACK OF OPERATING LOSSES. 

(a) IN GENERAL.—Subparagraph (H) of section 172(b)(1) is 

amended to read as follows: 

‘‘(H) CARRYBACK FOR 2008 AND 2009 NET OPERATING

LOSSES.— 

‘‘(i) IN GENERAL.—In the case of an applicable 2008 

or 2009 net operating loss with respect to which the 

taxpayer has elected the application of this subparagraph— 

‘‘(I) subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 6 for ‘2’, 


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‘‘(II) subparagraph (E)(ii) shall be applied by 

substituting the whole number which is one less 

than the whole number substituted under subclause (II) for ‘2’, and 

‘‘(III) subparagraph (F) shall not apply. 

‘‘(ii) APPLICABLE 2008 OR 2009 NET OPERATING LOSS.— For purposes of this subparagraph, the term ‘applicable 2008 or 2009 net operating loss’ means— 

‘‘(I) the taxpayer’s net operating loss for any 

taxable year ending in 2008 or 2009, or 

‘‘(II) if the taxpayer elects to have this subclause 

apply in lieu of subclause (I), the taxpayer’s net 

operating loss for any taxable year beginning in 

2008 or 2009. 

‘‘(iii) ELECTION.—Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due 

date (including extension of time) for filing the taxpayer’s return for the taxable year of the net operating 

loss. Any such election, once made, shall be irrevocable. 

‘‘(iv) COORDINATION WITH ALTERNATIVE TAX NET OP- ERATING LOSS DEDUCTION.—In the case of a taxpayer 

who elects to have clause (ii)(II) apply, section 

56(d)(1)(A)(ii) shall be applied by substituting ‘ending 

during 2001 or 2002 or beginning during 2008 or 2009’ 

for ‘ending during 2001, 2002, 2008, or 2009’.’’. 

(b) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is amended to read as follows: 

‘‘(I) the amount of such deduction attributable to 

the sum of carrybacks of net operating losses from 

taxable years ending during 2001, 2002, 2008, or 

2009 and carryovers of net operating losses to 

such taxable years, or’’. 

(c) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES.— Subsection (b) of section 810 is amended by adding at the end the 

following new paragraph: 

‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— ‘‘(A) IN GENERAL.—In the case of an applicable 2008 or 

2009 loss from operations with respect to which the taxpayer has elected the application of this paragraph, paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting ‘5’ or ‘4’ for ‘3’. 

‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM OPERATIONS.— 

For purposes of this paragraph, the term ‘applicable 2008 

or 2009 loss from operations’ means— 

‘‘(i) the taxpayer’s loss from operations for any taxable year ending in 2008 or 2009, or 

‘‘(ii) if the taxpayer elects to have this clause apply 

in lieu of clause (i), the taxpayer’s loss from operations 

for any taxable year beginning in 2008 or 2009. 

‘‘(C) ELECTION.—Any election under this paragraph shall 

be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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able year of the loss from operations. Any such election, 

once made, shall be irrevocable. 

‘‘(D) COORDINATION WITH ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION.—In the case of a taxpayer who 

elects to have subparagraph (B)(ii) apply, section 

56(d)(1)(A)(ii) shall be applied by substituting ‘ending during 2001 or 2002 or beginning during 2008 or 2009’ for 

‘ending during 2001, 2002, 2008, or 2009’.’’. 

(d) CONFORMING AMENDMENT.—Section 172 is amended by striking subsection (k). 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to 

net operating losses arising in taxable years ending after December 31, 2007. 

(2) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION.—The 

amendment made by subsection (b) shall apply to taxable years 

ending after 1997. 

(3) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES.— 

The amendment made by subsection (d) shall apply to losses 

from operations arising in taxable years ending after December 

31, 2007. 

(4) TRANSITIONAL RULE.—In the case of a net operating loss 

(or, in the case of a life insurance company, a loss from operations) for a taxable year ending before the date of the enactment of this Act— 

(A) any election made under section 172(b)(3) or 

810(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be 

revoked before the applicable date, 

(B) any election made under section 172(b)(1)(H) or 

810(b)(4) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if 

made before the applicable date, and 

(C) any application under section 6411(a) of such Code 

with respect to such loss shall be treated as timely filed if 

filed before the applicable date. 

For purposes of this paragraph, the term ‘‘applicable date’’ 

means the date which is 60 days after the date of the enactment of this Act. 

SEC. 137. EXCEPTION FOR TARP RECIPIENTS. 

The amendments made by this part shall not apply to— 

(1) any taxpayer if— 

(A) the Federal Government acquires, at any time, an 

equity interest in the taxpayer pursuant to the Emergency 

Economic Stabilization Act of 2008, or 

(B) the Federal Government acquires, at any time, any 

warrant (or other right) to acquire any equity interest with 

respect to the taxpayer pursuant to such Act, 

(2) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and 

(3) any taxpayer which at any time in 2008 or 2009 is a 

member of the same affiliated group (as defined in section 1504 

of the Internal Revenue Code of 1986, determined without reVerDate Nov 24 2008 05:35 Jan 28, 2009 Jkt 079008 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR009.XXX HR009

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gard to subsection (b) thereof) as a taxpayer described in paragraph (1) or (2). 

PART 3—DEDUCTION FOR QUALIFIED SMALL 

BUSINESS INCOME 

SEC. 141. DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME. 

(a) IN GENERAL.—Paragraph (1) of section 199(a) is amended to 

read as follows: 

‘‘(1) IN GENERAL.—There shall be allowed as a deduction an 

amount equal to the sum of— 

‘‘(A) 9 percent of the lesser of— 

‘‘(i) the qualified production activities income of the 

taxpayer for the taxable year, or 

‘‘(ii) taxable income (determined without regard to 

this section) for the taxable year, and 

‘‘(B) in the case of a qualified small business for a taxable year beginning in 2009 or 2010, 20 percent of the lesser of— 

‘‘(i) the qualified small business income of the taxpayer for the taxable year, or 

‘‘(ii) taxable income (determined without regard to 

this section) for the taxable year.’’. 

(b) QUALIFIED SMALL BUSINESS; QUALIFIED SMALL BUSINESS INCOME.—Section 199 is amended by adding at the end the following 

new subsection: 

‘‘(e) QUALIFIED SMALL BUSINESS; QUALIFIED SMALL BUSINESS INCOME.— 

‘‘(1) QUALIFIED SMALL BUSINESS.— 

‘‘(A) IN GENERAL.—For purposes of this section, the term 

‘qualified small business’ means any taxpayer for any taxable year if the annual average number of employees employed by such taxpayer during such taxable year was 500 

or fewer. 

‘‘(B) AGGREGATION RULE.—For purposes of subparagraph 

(A), any person treated as a single employer under subsection (a) or (b) of section 52 (applied without regard to 

section 1563(b)) or subsection (m) or (o) of section 414 shall 

be treated as 1 taxpayer for purposes of this subsection. 

‘‘(C) SPECIAL RULE.—If a taxpayer is treated as a qualified small business for any taxable year, the taxpayer shall 

not fail to be treated as a qualified small business for any 

subsequent taxable year solely because the number of employees employed by such taxpayer during such subsequent taxable year exceeds 500. The preceding sentence 

shall cease to apply to such taxpayer in the first taxable 

year in which there is an ownership change (as defined by 

section 382(g) in respect of a corporation, or by applying 

principles analogous to such ownership change in the case 

of a taxpayer that is a partnership) with respect to the 

stock (or partnership interests) of the taxpayer. 

‘‘(2) QUALIFIED SMALL BUSINESS INCOME.— 

‘‘(A) IN GENERAL.—For purposes of this section, the term 

‘qualified small business income’ means the excess of— 


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‘‘(i) the income of the qualified small business 

which— 

‘‘(I) is attributable to the actual conduct of a 

trade or business, 

‘‘(II) is income from sources within the United 

States (within the meaning of section 861), and 

‘‘(III) is not passive income (as defined in section 

904(d)(2)(B)), over 

‘‘(ii) the sum of— 

‘‘(I) the cost of goods sold that are allocable to 

such income, and 

‘‘(II) other expenses, losses, or deductions (other 

than the deduction allowed under this section), 

which are properly allocable to such income. 

‘‘(B) EXCEPTIONS.—The following shall not be treated as 

income of a qualified small business for purposes of subparagraph (A): 

‘‘(i) Any income which is attributable to any property described in section 1400N(p)(3). 

‘‘(ii) Any income which is attributable to the ownership or management of any professional sports team. 

‘‘(iii) Any income which is attributable to a trade or 

business described in subparagraph (B) of section 

1202(e)(3). 

‘‘(iv) Any income which is attributable to any property with respect to which records are required to be 

maintained under section 2257 of title 18, United 

States Code. 

‘‘(C) ALLOCATION RULES, ETC.—Rules similar to the rules 

of paragraphs (2), (3), (4)(D), and (7) of subsection (c) shall 

apply for purposes of this paragraph. 

‘‘(3) SPECIAL RULES.—Except as otherwise provided by the 

Secretary, rules similar to the rules of subsection (d) shall 

apply for purposes of this subsection.’’. 

(c) CONFORMING AMENDMENT.—Section 199(a)(2) is amended by 

striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (1)(A)’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

PART 4—REPEAL OF WITHHOLDING TAX ON 

GOVERNMENT CONTRACTORS 

SEC. 146. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS. 

Section 3402 is amended by striking subsection (t). 

Subtitle E—Deduction For Qualified Health Insurance Costs 

of Individuals 

SEC. 151. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED HEALTH INSURANCE COSTS OF INDIVIDUALS. 

(a) IN GENERAL.—Part VII of subchapter B of chapter 1 of the 

Internal Revenue Code of 1986 (relating to additional itemized deductions) is amended by redesignating section 224 as section 225 

and by inserting after section 223 the following new section: 


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‘‘SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE. 

‘‘(a) IN GENERAL.—In the case of an individual, there shall be allowed as a deduction an amount equal to the amount paid during 

the taxable year for coverage for the taxpayer, his spouse, and dependents under qualified health insurance. 

‘‘(b) QUALIFIED HEALTH INSURANCE.—For purposes of this section, the term ‘qualified health insurance’ means insurance which 

constitutes medical care; except that such term shall not include 

any insurance if substantially all of its coverage is of excepted benefits described in section 9832(c). 

‘‘(c) SPECIAL RULES.— ‘‘(1) COORDINATION WITH MEDICAL DEDUCTION, ETC.—Any 

amount paid by a taxpayer for insurance to which subsection 

(a) applies shall not be taken into account in computing the 

amount allowable to the taxpayer as a deduction under section 

162(l) or 213(a). Any amount taken into account in determining 

the credit allowed under section 35 shall not be taken into account for purposes of this section. 

‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EMPLOYMENT TAX

PURPOSES.—The deduction allowable by reason of this section 

shall not be taken into account in determining an individual’s 

net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2.’’. 

(b) DEDUCTION ALLOWED IN COMPUTING ADJUSTED GROSS IN- COME.—Subsection (a) of section 62 of such Code is amended by inserting before the last sentence the following new paragraph: 

‘‘(22) COSTS OF QUALIFIED HEALTH INSURANCE.—The deduction allowed by section 224.’’. 

(c) CLERICAL AMENDMENT.—The table of sections for part VII of 

subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and inserting before such item the following new item: 

‘‘Sec. 224. Costs of qualified health insurance.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years beginning after December 31, 2008. 

Subtitle F—Temporary Exclusion of Unemployment 

Compensation From Gross Income 

SEC. 161. TEMPORARY EXCLUSION OF UNEMPLOYMENT COMPENSATION FROM GROSS INCOME. 

(a) IN GENERAL.—Section 85 is amended by adding at the end 

the following new subsection: 

‘‘(c) EXCLUSION OF AMOUNTS RECEIVED IN 2008 AND 2009.—Subsection (a) shall not apply to any unemployment compensation received in 2008 or 2009.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply to amounts received after December 31, 2007. 

Subtitle G—No Impact on Social Security Trust Funds 

SEC. 171. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS. 

(a) ESTIMATE BY SECRETARY OF THE TREASURY.—The Secretary of 

the Treasury shall annually estimate the impact that the enactment of this Act has on the income and balances of the trust funds 

established under section 201 or 1817 of the Social Security Act (42 

U.S.C. 401, 1395i). 


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(b) TRANSFER OF FUNDS.—If, under subsection (a), the Secretary 

of the Treasury estimates that the enactment of this Act has a negative impact on the income and balances of the trust funds established under section 201 or 1817 of the Social Security Act (42 

U.S.C. 401, 1395i), the Secretary shall transfer, not less frequently 

than quarterly, from the general revenues of the Federal Government an amount sufficient so as to ensure that the income and balances of such trust funds are not reduced as a result of the enactment of this Act. 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS 

SEC. 200. SHORT TITLE. 

This title may be cited as the ‘‘Assistance for Unemployed Workers Act’’. 

SEC. 201. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM. 

(a) IN GENERAL.—Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as 

amended by section 4 of the Unemployment Compensation Extension Act of 2008 (Public Law 110–449; 122 Stat. 5015), is amended— 

(1) by striking ‘‘March 31, 2009’’ each place it appears and 

inserting ‘‘December 31, 2009’’; 

(2) in the heading for subsection (b)(2), by striking ‘‘MARCH

31, 2009’’ and inserting ‘‘DECEMBER 31, 2009’’; and 

(3) in subsection (b)(3), by striking ‘‘August 27, 2009’’ and inserting ‘‘May 31, 2010’’. 

(b) FINANCING PROVISIONS.—Section 4004 of such Act is amended 

by adding at the end the following: 

‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any other provision 

of law, the Secretary of the Treasury shall transfer from the general fund of the Treasury (from funds not otherwise appropriated)— 

‘‘(1) to the extended unemployment compensation account (as 

established by section 905 of the Social Security Act) such 

sums as the Secretary of Labor estimates to be necessary to 

make payments to States under this title by reason of the 

amendments made by section 201(a) of the Assistance for Unemployed Workers Act; and 

‘‘(2) to the employment security administration account (as 

established by section 901 of the Social Security Act) such 

sums as the Secretary of Labor estimates to be necessary for 

purposes of assisting States in meeting administrative costs by 

reason of the amendments referred to in paragraph (1). 

There are appropriated from the general fund of the Treasury, 

without fiscal year limitation, the sums referred to in the preceding 

sentence and such sums shall not be required to be repaid.’’. 

SEC. 202. ADDITIONAL ELIGIBILITY REQUIREMENTS FOR EMERGENCY 

UNEMPLOYMENT COMPENSATION. 

Section 4001 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by adding at the 

end the following: 


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‘‘Additional Eligibility Requirements 

‘‘(g)(1) IN GENERAL.—A State shall require as a condition of eligibility for emergency unemployment compensation under this Act 

for any week— 

‘‘(A) in the case of any individual described in paragraph (2), 

that such individual— 

‘‘(i) have a secondary school diploma or its recognized 

equivalent; or 

‘‘(ii) be making satisfactory progress in a program that 

leads to a secondary school diploma or its recognized 

equivalent; and 

‘‘(B) in the case of any individual described in paragraph (3), 

that such individual participate in reemployment services or in 

similar services (or, if such services were ongoing as of when 

such individual most recently exhausted regular compensation 

before seeking emergency unemployment compensation, that 

such individual continue to participate in such services), unless 

the State agency charged with the administration of the State 

law determines that— 

‘‘(i) such individual has completed such services as of a 

date subsequent to the commencement of emergency unemployment compensation; or 

‘‘(ii) there is justifiable cause for such individual’s failure 

to participate in such services. 

‘‘(2) INDIVIDUALS TO WHOM PARAGRAPH (1)(A) APPLIES.—The requirements of paragraph (1)(A) shall apply in the case of any individual who was under age 30 at the time of filing an initial claim 

for the regular compensation that such individual most recently exhausted before seeking emergency unemployment compensation. 

‘‘(3) INDIVIDUALS TO WHOM PARAGRAPH (1)(B) APPLIES.—The requirements of paragraph (1)(B) shall apply in the case of any individual who, as of the time of filing an initial claim for the regular 

compensation that such individual most recently exhausted before 

seeking emergency unemployment compensation, was identified 

under the State profiling system (described in section 303(j) of the 

Social Security Act) as being a claimant who— 

‘‘(A) was likely to exhaust regular compensation; and 

‘‘(B) would need job search assistance services to make a successful transition to new employment. 

‘‘(4) EFFECTIVE DATE.—This subsection shall apply in the case of 

any individual filing an initial application for emergency unemployment compensation after the end of the 3-month period beginning 

on the date of the enactment of this subsection.’’. 

SEC. 203. SPECIAL TRANSFERS. 

(a) IN GENERAL.—Section 903 of the Social Security Act (42 

U.S.C. 1103) is amended by adding at the end the following: 

‘‘Special Transfer in Fiscal Year 2009 for Benefits 

‘‘(f)(1) In addition to any other amounts, the Secretary of the 

Treasury shall transfer from the Federal unemployment account to 

the account of each State in the Unemployment Trust Fund, within 

30 days after the date of the enactment of this subsection, the 

amount determined with respect to such State under paragraph (2). 


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‘‘(2) The amount to be transferred under this subsection to a 

State account shall (as determined by the Secretary of Labor and 

certified by such Secretary to the Secretary of the Treasury) be 

equal to the amount obtained by multiplying $7,000,000,000 by the 

same ratio as would apply under subsection (a)(2)(B) for purposes 

of determining such State’s share of any excess amount (as described in subsection (a)(1)) that would have been subject to transfer to State accounts, as of October 1, 2008, under the provisions 

of subsection (a). 

‘‘(3) Any amount transferred to the account of a State as a result 

of the enactment of this subsection may be used by the State agency of such State only in the payment of cash benefits to individuals 

with respect to their unemployment, exclusive of expenses of administration. 

‘‘Special Transfer in Fiscal Year 2009 for Administration 

‘‘(g)(1) In addition to any other amounts, the Secretary of the 

Treasury shall transfer from the employment security administration account to the account of each State in the Unemployment 

Trust Fund, within 30 days after the date of the enactment of this 

subsection, the amount determined with respect to such State 

under paragraph (2). 

‘‘(2) The amount to be transferred under this subsection to a 

State account shall (as determined by the Secretary of Labor and 

certified by such Secretary to the Secretary of the Treasury) be 

equal to the amount obtained by multiplying $500,000,000 by the 

same ratio as determined under subsection (f)(2) with respect to 

such State. 

‘‘(3) Any amount transferred to the account of a State as a result 

of the enactment of this subsection may be used by the State agency of such State only in the payment of expenses incurred by it 

for— 

‘‘(A) the improvement of unemployment benefit and unemployment tax operations, including responding to increased demand for unemployment compensation; and 

‘‘(B) staff-assisted reemployment services for unemployment 

compensation claimants.’’. 

(b) REGULATIONS.—The Secretary of Labor may prescribe any 

regulations, operating instructions, or other guidance necessary to 

carry out the amendment made by subsection (a). 

TITLE III—NO TAX INCREASES TO PAY FOR SPENDING 

SEC. 301. NO TAX INCREASES TO PAY FOR SPENDING. 

(a) FINDINGS.—The Congress finds that— 

(1) according to the economic forecast released by the nonpartisan Congressional Budget Office on January 7, 2009, unemployment in the United States is expected to be above the 

level estimated for calendar year 2008 until the year 2015, and 

(2) raising taxes on families and employers during times of 

high unemployment delays economic recovery and the creation 

of new jobs. 

(b) DECLARATION OF POLICY.—It is the policy of the United 

States that— 


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(1) outlays from the Treasury of the United States that occur 

as a result of any provision of this Act shall not be offset 

through the enactment of new legislation that results in increases in revenues to the Treasury of the United States, but, 

if such outlays are offset, such offsets shall be through the enactment of legislation that results in a reduction in other outlays, and 

(2) the effective rate of tax imposed on individuals or businesses shall not be increased, whether by operation of a provision of existing law or the enactment of new legislation, during 

any year in which unemployment is projected to exceed the 

level of unemployment for calendar year 2008. 

Æ 


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