S10584 CONGRESSIONAL RECORD — SENATE November 17, 2008 

involved two parties—the borrower and a 

bank that both originated the loan and retained the default risk. If the individual borrower had trouble, it was in the bank’s interest to adjust the terms of the loan. But that 

is no longer the model. Through 

securitization, the risk of default has been 

transferred to investors. There is no longer a 

single entity that has an interest in reworking failing loans. The loans are pooled together and the stream of payments from 

those mortgages is divided up into securities 

owned by investors all over the world. A 

mortgage servicer manages the pools of 

loans and distributes the payments to investors. It is the mortgage servicer who has the 

ability to restructure a mortgage or foreclose on the property. However, the servicers 

do not have the same incentives that banks 

used to have. The way many pooling and 

servicing agreements (PSAs) are written, 

there may be no incentives for the servicers 

to restructure the loans. Servicers typically 

get paid a fee if they foreclose, but may have 

to absorb the cost of renegotiating the loans. 

One of the first steps the Office of Foreclosure Evaluation should take is to encourage servicers to use technology that would 

standardize the income to expense and loan 

resolution process to keep costs down. The 

Office also should determine what incentives 

may be needed to encourage servicers to 

modify contracts. It may ultimately be appropriate for the government to offer 

servicers a flat fee for each sustainable, affordable modification completed within a 

certain time period to help cover their additional costs. 

Perhaps a more significant roadblock is 

that servicers are worried they may be sued 

by some of the investors. Many servicers 

still are thinking that it is best to simply 

pursue foreclosures. Congress tried to address this concern in the Housing and Economic Recovery Act of 2008 and again in the 

Emergency Economic Stabilization Act, by 

clarifying that, unless the contract or PSA 

clearly provides otherwise, the duty owed by 

the servicer to investors is owed to the entire pool and not to any individual groups or 

tranches of investors, but the servicers still 

appear to be reluctant or slow to modify. 

The concerns of the servicers or lenders 

may not be unfounded. Recently, lawyers 

claiming to represent investors are challenging the settlement between Countrywide 

and 11 attorneys general; the settlement proposes to modify the loans of 400,000 borrowers. An October 24, 2008 article in the New 

York Times reported that certain hedge 

funds are opposing loan modifications because it might hurt their investments. At 

least two funds recently have warned 

servicers that they might be sued if they 

participated in government-backed plans to 

renegotiate delinquent loans. Congress must 

take action to protect homeowners who are 

getting caught in the middle. So far disputes 

over loan modifications have been theoretical because most mortgage servicers are 

not aggressively altering the terms of loans, 

but as a matter of public policy, we cannot 

let fear of tort and contract claims cause 

grave harm to consumers and the entire 

economy. 

The bill addresses the litigation threat by 

requiring investors’ attorneys to conduct a 

careful inquiry into the factual and legal 

bases of their claims, including consideration of the recent statutory clarification 

that the servicer’s duty is to the entire pool 

of investors or beneficial owners. The attorneys also would have to obtain, as a prerequisite to filing suit, a certification from 

the new Office of Foreclosure Evaluation 

that the loan modifications in question were 

unreasonable or not permitted by restrictions on Real Estate Mortgage Investment 

Conduits under the Internal Revenue Code. 

This opinion would be admissible, but not 

conclusive. These administrative prerequisites should result in more uniformity, 

guidance and clarity regarding applicable 

legal standards and best practices for 

servicers, taking into account the public interest and current threat to our economy 

posed by barriers to reasonable modification. 

This is not complete immunity from suit. If 

the litigation threat continues to impede 

modifications, Congress may have to hold 

hearings to consider sufficient safeguards for 

servicers—taking into consideration the importance of having capital available for the 

mortgage market. 

In addition, although financial services industry groups have criticized arbitrary 

quotas in PSAs that limit the percentage of 

loans in a pool that may be modified, some 

PSAs do contain such quotas. These quotas 

may have seemed reasonable before the 

housing market crashed, but they do not 

make sense now, are against public policy 

and, to the extent these quotas are less than 

25% of the total, they are rendered unenforceable by this bill. 

Finally, to ensure we have reliable data regarding mortgage loan modifications, the 

bill requires mortgage servicers to report detailed data to the Office of Foreclosure Evaluation. The bill also requires the Office to 

submit reports to Congress. This data will 

help the Office and Congress understand 

whether voluntary efforts are sufficient, and 

what specific barriers there may be to caseby-case loan modifications, including specific provisions in pooling and service agreements that may be impeding reasonable 

steps to avoid foreclosures. 

In the end, case-by-case loan modifications 

may not be sufficient to appreciably slow the 

rate of foreclosures, in which case the government may have to consider other options. 

In that regard, I believe the proposal made 

recently by Sheila Bair, the Chairman of the 

FDIC, deserves close consideration. Ms. 

Bair’s proposal is based on the FDIC’s real 

world experience with 5000 troubled mortgages at IndyMac Bank, which the FDIC recently took over. Under the proposal, delinquent homeowners would have their mortgage payments reduced to as low as 31 percent of their monthly income. The modifications would be based on interest rate reductions, extension of the term of the mortgage, 

and principal forbearance—in that order. The 

same protocol would be applied to all delinquent mortgages, rather than having a caseby-case assessment of each mortgage. The 

Bair proposal may have the advantage of enabling rapid modification of large numbers 

of mortgages, stemming the tide of foreclosures. If a modified loan defaults later, 

the government would share up to half of the 

losses. The proposal would be funded under 

the $700 billion financial rescue package. I 

spoke to Ms. Bair last week, and she estimates her proposal could reach up to 2.2 million mortgages and enable 1.5 million homeowners to keep their homes. If effective, 

across-the-board rather than case-by-case 

modifications may be necessary. 

In the meantime, the Foreclosure Diversion and Mortgage Loan Modification Act of 

2008 will encourage servicers to engage in 

greater numbers of case-by-case mortgage 

modifications. This should be a goal those on 

both sides of the aisle can agree to. I urge 

my colleagues to support it. 

By Mr. REID: 

S. 3688. A bill to provide for additional emergency unemployment compensation, to amend the Emergency 

Economic Stabilization Act of 2008 to 

authorize loans to automobile manufacturers and component suppliers, and 

for other purposes; read the first time. 

Mr. REID. Mr. President, I ask unanimous consent that the text of the bill 

be printed in the RECORD. 

There being no objection, the text of 

the bill was ordered to be placed in the 

RECORD, as follows: 

S. 3688 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

TITLE I—UNEMPLOYMENT 

COMPENSATION 

SEC. 101. SHORT TITLE. 

This title may be cited as the ‘‘Unemployment Compensation Extension Act of 2008’’. 

SEC. 102. ADDITIONAL FIRST-TIER BENEFITS. 

Section 4002(b)(1) of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is 

amended— 

(1) in subparagraph (A), by striking ‘‘50’’ 

and inserting ‘‘80’’; and 

(2) in subparagraph (B), by striking ‘‘13’’ 

and inserting ‘‘20’’. 

SEC. 103. SECOND-TIER BENEFITS. 

Section 4002 of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is 

amended by adding at the end the following: 

‘‘(c) SPECIAL RULE.— 

‘‘(1) IN GENERAL.—If, at the time that the 

amount established in an individual’s account under subsection (b)(1) is exhausted or 

at any time thereafter, such individual’s 

State is in an extended benefit period (as determined under paragraph (2)), such account 

shall be augmented by an amount equal to 

the lesser of— 

‘‘(A) 50 percent of the total amount of regular compensation (including dependents’ allowances) payable to the individual during 

the individual’s benefit year under the State 

law, or 

‘‘(B) 13 times the individual’s average 

weekly benefit amount (as determined under 

subsection (b)(2)) for the benefit year. 

‘‘(2) EXTENDED BENEFIT PERIOD.—For purposes of paragraph (1), a State shall be considered to be in an extended benefit period, 

as of any given time, if— 

‘‘(A) such a period is then in effect for such 

State under the Federal-State Extended Unemployment Compensation Act of 1970; 

‘‘(B) such a period would then be in effect 

for such State under such Act if section 

203(d) of such Act— 

‘‘(i) were applied by substituting ‘4’ for ‘5’ 

each place it appears; and 

‘‘(ii) did not include the requirement under 

paragraph (1)(A) thereof; or 

‘‘(C) such a period would then be in effect 

for such State under such Act if— 

‘‘(i) section 203(f) of such Act were applied 

to such State (regardless of whether the 

State by law had provided for such application); and 

‘‘(ii) such section 203(f)— 

‘‘(I) were applied by substituting ‘6.0’ for 

‘6.5’ in paragraph (1)(A)(i) thereof; and 

‘‘(II) did not include the requirement under 

paragraph (1)(A)(ii) thereof. 

‘‘(3) LIMITATION.—The account of an individual may be augmented not more than 

once under this subsection.’’. 

SEC. 104. PHASEOUT PROVISIONS. 

Section 4007(b) of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is 

amended— 

(1) in paragraph (1), by striking ‘‘paragraph 

(2),’’ and inserting ‘‘paragraphs (2) and (3),’’; 

and 

(2) by striking paragraph (2) and inserting 

the following: 

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November 17, 2008 CONGRESSIONAL RECORD — SENATE S10585 

‘‘(2) NO AUGMENTATION AFTER MARCH 31, 

2009.—If the amount established in an individual’s account under subsection (b)(1) is exhausted after March 31, 2009, then section 

4002(c) shall not apply and such account shall 

not be augmented under such section, regardless of whether such individual’s State is 

in an extended benefit period (as determined 

under paragraph (2) of such section). 

‘‘(3) TERMINATION.—No compensation under 

this title shall be payable for any week beginning after August 27, 2009.’’. 

SEC. 105. TEMPORARY FEDERAL MATCHING FOR 

THE FIRST WEEK OF EXTENDED 

BENEFITS FOR STATES WITH NO 

WAITING WEEK. 

With respect to weeks of unemployment 

beginning after the date of the enactment of 

this Act and ending on or before December 8, 

2009, subparagraph (B) of section 204(a)(2) of 

the Federal-State Extended Unemployment 

Compensation Act of 1970 (26 U.S.C. 3304 

note) shall not apply. 

SEC. 106. EFFECTIVE DATE. 

(a) IN GENERAL.—The amendments made by 

sections 102, 103, and 104 shall apply as if included in the enactment of the Supplemental 

Appropriations Act, 2008, subject to subsection (b). 

(b) ADDITIONAL BENEFITS.—In applying the 

amendments made by sections 102 and 103, 

any additional emergency unemployment 

compensation made payable by such amendments (which would not otherwise have been 

payable if such amendments had not been enacted) shall be payable only with respect to 

any week of unemployment beginning on or 

after the date of the enactment of this Act. 

TITLE II—AUTOMOBILE INDUSTRY 

EMERGENCY ASSISTANCE 

SEC. 201. DIRECT BRIDGE LOANS TO MANUFACTURERS AND SUPPLIERS. 

(a) IN GENERAL.—The Emergency Economic Stabilization Act of 2008 (division A of 

Public Law 110–343) is amended by adding at 

the end the following: 

‘‘TITLE IV—DIRECT BRIDGE LOAN 

PROVISIONS 

‘‘SEC. 401. FINDINGS. 

‘‘Congress finds that extraordinary and exigent circumstances have prevented the 

automobile industry from securing essential 

credit and liquidity from other sources and 

that the failure of the automobile industry 

to obtain such credit and liquidity will have 

a systemic adverse effect on the economy. 

‘‘SEC. 402. PURPOSES. 

‘‘The purposes of this title are— 

‘‘(1) to clarify that authority and facilities 

are available to be used immediately by the 

Secretary to restore liquidity and stability 

to the automobile industry in the United 

States; 

‘‘(2) to ensure that such authority and such 

facilities are used in a manner that— 

‘‘(A) stimulates manufacturing and sales of 

automobiles produced by automobile manufacturers in the United States; 

‘‘(B) enhances the ability and the capacity 

of the domestic automobile industry to pursue the timely and aggressive production of 

energy-efficient advanced technology vehicles; 

‘‘(C) preserves and promotes the jobs of 

355,000 workers in the United States directly 

employed by the automobile industry and an 

additional 4,500,000 workers in the United 

States employed in related industries; and 

‘‘(D) safeguards the ability of the domestic 

automobile industry to provide retirement 

and health care benefits for 1,000,000 retirees 

and their spouses and dependents; and 

‘‘(3) to reaffirm the purposes of section 2, 

which include providing the Secretary with 

broad authority to restore liquidity and stability to financial institutions, including 

automobile finance companies. 

‘‘SEC. 403. EMERGENCY DIRECT LOAN PROGRAM. 

‘‘(a) IN GENERAL.—The Secretary shall 

make loans in an aggregate amount equal to 

$25,000,000,000, to automobile manufacturers 

and component suppliers that have— 

‘‘(1) submitted an application for a loan 

under this title that includes a statement of 

need for Government funding under this title 

to prevent a systemic adverse effect on the 

United States economy; 

‘‘(2) operated a manufacturing facility for 

the purposes of producing automobiles or 

automobile components in the United States 

throughout the 20-year period ending on the 

date of enactment of this title; and 

‘‘(3) operations in the United States the 

failure of which would have a systemic adverse effect on the overall United States 

economy, as determined by the Secretary. 

‘‘(b) ALLOCATION.—In allocating loan 

amounts under this title, the Secretary shall 

prioritize the distribution of loans under this 

section based on the magnitude of the impact of the manufacturing operations of the 

applicant in the United States on the overall 

economy of the United States and other segments of the automobile industry, including 

the impact on levels of employment, domestic manufacturing of automobiles and automobile components, and automobile dealerships. 

‘‘(c) PLAN FOR LONG-TERM FINANCIAL VIABILITY.—At the time of application for a loan 

under this title, an automobile manufacturer 

or component supplier shall submit to the 

Secretary a detailed plan on how the Government funds requested will be utilized to ensure the long-term financial posture of the 

company, and how such funds will stimulate 

automobile production in the United States 

and improve the capacity of the company to 

pursue the timely and aggressive production 

of energy-efficient advanced technology vehicles. 

‘‘SEC. 404. FUNDING FROM THIRD TRANCHE; 

TREATMENT OF LOAN AMOUNTS. 

‘‘The costs incurred by the Federal Government in making loans under this title, including credit subsidy costs and administrative expenses, shall be covered out of the 

funds made available to the Secretary generally under section 118 and, specifically, not 

from funds which are described in paragraph 

(1) or (2) of section 115(a), but with respect to 

the availability of which the reporting and 

procedural requirements contained in paragraph (3) of such section and section 115(c) 

shall not apply. 

‘‘SEC. 405. TIMING OF DISBURSEMENTS. 

‘‘(a) APPLICATIONS.—On and after the date 

that is 3 days after the date of enactment of 

this title, the Secretary shall accept applications for loans under this title. 

‘‘(b) DETERMINATION OF ELIGIBILITY.—Not 

later than 15 days after the date on which 

the Secretary receives an application for a 

loan under subsection (a), the Secretary 

shall make a determination regarding the 

eligibility of the applicant, based on whether 

the applicant meets the requirements of section 403(a). 

‘‘(c) DISBURSEMENT.—The Secretary shall 

begin disbursement of the proceeds of a loan 

under this title to an eligible applicant not 

later than 7 days after the date on which the 

Secretary receives a disbursal request from 

the applicant, upon a determination of the 

Secretary that the applicant is eligible 

under subsection (b). 

‘‘SEC. 406. TERMS AND CONDITIONS. 

‘‘(a) TERM TO MATURITY.—The term to maturity of any loan made under this title shall 

be 10 years, or such longer period as the Secretary may determine with respect to such 

loan. 

‘‘(b) RATE OF INTEREST.—The annual rate 

of interest for a loan under this title shall 

be— 

‘‘(1) 5 percent during the 5-year period beginning on the date on which the Secretary 

disburses the loan; and 

‘‘(2) 9 percent after the end of the period 

described in paragraph (1). 

‘‘(c) WARRANTS AND DEBT INSTRUMENTS.— 

The Secretary may not make a loan under 

this title unless the Secretary receives from 

the automobile manufacturer or component 

supplier a warrant or senior debt instrument 

made in accordance with the requirements 

for a warrant or senior debt instrument by a 

financial institution under section 113(d). 

‘‘(d) NO PREPAYMENT PENALTY.—A loan 

made under this title shall be prepayable 

without penalty at any time. 

‘‘(e) EXECUTIVE COMPENSATION.— 

‘‘(1) STANDARDS REQUIRED.—The Secretary 

shall require any recipient of a loan under 

this title to meet appropriate standards for 

executive compensation and corporate governance. 

‘‘(2) SPECIFIC REQUIREMENTS.—The standards established under paragraph (1) shall include the following: 

‘‘(A) Limits on compensation that exclude 

incentives for senior executive officers of a 

recipient of a loan under this title to take 

unnecessary and excessive risks that threaten the value of such recipient during the period that the loan is outstanding. 

‘‘(B) A provision for the recovery by such 

recipient of any bonus or incentive compensation paid to a senior executive officer 

based on statements of earnings, gains, or 

other criteria that are later found to be materially inaccurate. 

‘‘(C) A prohibition on such recipient making any golden parachute payment to a senior executive officer during the period that 

the loan under this title is outstanding. 

‘‘(D) A prohibition on such recipient paying or accruing any bonus or incentive compensation during the period that the loan is 

outstanding to any executive whose annual 

base compensation exceeds $250,000 (which 

amount shall be adjusted by the Secretary 

for inflation). 

‘‘(E) A prohibition on any compensation 

plan that could encourage manipulation of 

the reported earnings of the recipient to enhance the compensation of any of its employees. 

‘‘(3) DEFINITIONS.—For purposes of this subsection, the following definitions shall apply: 

‘‘(A) SENIOR EXECUTIVE OFFICER.—The term 

‘senior executive officer’ means an individual who is 1 of the top 5 most highly paid 

executives of a public company, whose compensation is required to be disclosed pursuant to the Securities Exchange Act of 1934, 

and any regulations issued thereunder, and 

non-public company counterparts. 

‘‘(B) GOLDEN PARACHUTE PAYMENT.—The 

term ‘golden parachute payment’ means any 

payment to a senior executive officer for departure from a company for any reason. 

‘‘(f) PROHIBITION ON PAYMENT OF DIVIDENDS.—No common stock dividends may be 

paid by any recipient of a loan under this 

title for the duration of the loan. 

‘‘SEC. 407. OVERSIGHT. 

‘‘(a) IN GENERAL.—The provisions of sections 105, 116, 121, and 125 shall apply with respect to any loans made under this title, to 

the extent possible, in the same manner and 

to the same extent as such sections apply to 

transactions made under the authority of 

title I.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENTS.— 

(1) TABLE OF CONTENTS.—The table of contents in section 1(b) of the Emergency Economic Stabilization Act of 2008 (division A of 

Public Law 110–343) is amended— 

(A) by inserting after the item relating to 

section 3 the following new item: 

‘‘Sec. 4. References.’’ 

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S10586 CONGRESSIONAL RECORD — SENATE November 17, 2008 

; and 

(B) by adding at the end the following: 

‘‘TITLE IV—DIRECT BRIDGE LOAN 

PROVISIONS 

‘‘Sec. 401. Findings. 

‘‘Sec. 402. Purposes. 

‘‘Sec. 403. Emergency direct loan program. 

‘‘Sec. 404. Funding from third tranche; 

treatment of loan amounts. 

‘‘Sec. 405. Timing of disbursements. 

‘‘Sec. 406. Terms and conditions. 

‘‘Sec. 407. Oversight.’’ 

; and 

(2) REFERENCES.—The Emergency Economic Stabilization Act of 2008 (division A of 

Public Law 110–343) is amended by inserting 

after section 3 the following new section: 

‘‘SEC. 4. REFERENCES. 

‘‘Any reference— 

‘‘(1) in this division to ‘this Act’ or any 

subdivision thereof is a reference to this division A or any subdivision thereof; 

‘‘(2) in division (B) to ‘this Act’ or any subdivision thereof is a reference to division B 

or any subdivision thereof; and 

‘‘(3) in division (C) to ‘this Act’ or any subdivision thereof is a reference to division C 

or any subdivision thereof.’’. 

TITLE III—EMERGENCY TREATMENT 

SEC. 301. EMERGENCY TREATMENT. 

All provisions of this Act and the amendments made by this Act are designated as an 

emergency requirement and necessary to 

meet emergency needs pursuant to section 

204(a) of S. Con. Res 21 (110th Congress), the 

concurrent resolution on the budget for fiscal year 2008. 

By Mr. REID (for himself and Mr. 

BYRD): 

S. 3689. A bill making supplemental 

appropriations for job creation and 

preservation, infrastructure investment, and economic and energy assistance for the fiscal year ending September 30, 2009, and for other purposes; 

read the first time. 

Mr. REID. Mr. President, I ask unanimous consent that the text of the bill 

be printed in the RECORD. 

There being no objection, the text of 

the bill was ordered to be placed in the 

RECORD, as follows: 

S. 3689 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, That the following sums 

are appropriated, out of any money in the 

Treasury not otherwise appropriated, for the 

fiscal year ending September 30, 2009, and for 

other purposes, namely: 

TITLE I 

INFRASTRUCTURE, ENERGY, AND 

ECONOMIC RECOVERY 

CHAPTER 1 

DEPARTMENT OF AGRICULTURE 

FARM SERVICE AGENCY

SALARIES AND EXPENSES

For an additional amount for ‘‘Farm Service Agency, Salaries and Expenses’’, for the 

purpose of maintaining and modernizing the 

information technology system, $171,700,000, 

to remain available until expended. 

RURAL HOUSING SERVICE

RURAL HOUSING INSURANCE PROGRAM ACCOUNT

For an additional amount for gross obligations for the principal amount of direct and 

guaranteed loans as authorized by title V of 

the Housing Act of 1949, to be available from 

funds in the rural housing insurance fund, as 

follows: $171,000,000 for section 502 direct 

loans, and $3,000,000,000 for section 502 unsubsidized guaranteed loans. 

For an additional amount for the cost of 

direct and guaranteed loans, including the 

cost of modifying loans, as defined in section 

502 of the Congressional Budget Act of 1974, 

to remain available until expended, as follows: $11,500,000 for section 502 direct loans, 

and $38,100,000 for section 502 unsubsidized 

guaranteed loans. 

RURAL COMMUNITY FACILITIES PROGRAM

ACCOUNT

For an additional amount for gross obligations for the principal amount of direct and 

guaranteed loans and grants as authorized 

by section 306 of the Consolidated Farm and 

Rural Development Act, to be available from 

the rural community facilities program account, as follows: $612,000,000 for rural community facilities direct loans; $130,000,000 for 

guaranteed rural community facilities loans; 

and $50,000,000 for rural community facilities 

grants. 

For an additional amount for the cost of 

direct loans, guaranteed loans, and grants, 

including the cost of modifying loans, as defined in section 502 of the Congressional 

Budget Act of 1974, to remain available until 

expended, as follows: $35,000,000 for rural 

community facilities direct loans; $4,000,000 

for rural community facilities guaranteed 

loans; and $50,000,000 for rural community facilities grants. 

RURAL BUSINESS—COOPERATIVE SERVICE

RURAL BUSINESS PROGRAM ACCOUNT

For an additional amount for gross obligations for the principal amount of guaranteed 

loans as authorized by section 310B(a)(2)(A) 

of the Consolidated Farm and Rural Development Act, to be available from the rural 

business program account, as follows: 

$1,000,000,000 for business and industry guaranteed loans. 

For an additional amount for the cost of 

guaranteed loans, including the cost of modifying loans, as defined in section 502 of the 

Congressional Budget Act of 1974, to remain 

available until expended, as follows: 

$43,500,000 for business and industry guaranteed loans. 

RURAL BUSINESS ENTERPRISE GRANTS

For an additional amount for ‘‘Rural Business Enterprise Grants’’, $40,000,000, to remain available until expended. 

RURAL DEVELOPMENT LOAN FUND PROGRAM

ACCOUNT

For an additional amount for gross obligations for the principal amount of direct loans 

as authorized by the Rural Development 

Loan Fund (42 U.S.C. 9812(a)), $30,000,000. 

For an additional amount for the cost of 

direct loans, including the cost of modifying 

loans, as defined in section 502 of the Congressional Budget Act of 1974, to remain 

available until expended, $12,600,000, for direct loans as authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)). 

RURAL UTILITIES SERVICE

RURAL WATER AND WASTE DISPOSAL PROGRAM

ACCOUNT

For an additional amount for the cost of 

direct loans, loan guarantees, and grants for 

the rural water, waste water, waste disposal, 

and solid waste management programs authorized by sections 306, 306A, 306C, 306D, and 

310B and described in sections 306C(a)(2), 

306D, and 381E(d)(2) of the Consolidated Farm 

and Rural Development Act, $200,000,000, to 

remain available until expended. 

FOOD AND NUTRITION SERVICE

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

FOR WOMEN, INFANTS, AND CHILDREN

For an additional amount for the special 

supplemental nutrition program as authorized by section 17 of the Child Nutrition Act 

of 1966 (42 U.S.C. 1786), $445,000,000. 

SUPPLEMENTAL NUTRITION ASSISTANCE

PROGRAM

For an additional amount for the Emergency Food Assistance Program, as authorized by Section 4201 of Public Law 110–246, 

$50,000,000, of which the Secretary may use 

up to 10 percent for costs associated with the 

distribution of commodities. 

COMMODITY ASSISTANCE PROGRAM

For an additional amount for the Commodity Supplemental Food Program, 

$8,218,000, to support additional food purchases. 

GENERAL PROVISIONS—THIS CHAPTER 

SEC. 1101. (a) Hereafter, in this section, the 

term ‘‘nonambulatory disabled cattle’’ 

means cattle, other than cattle that are less 

than 5 months old or weigh less than 500 

pounds, subject to inspection under section 

3(b) of the Federal Meat Inspection Act (21 

U.S.C. 603(b)) that cannot rise from a recumbent position or walk, including cattle with 

a broken appendage, severed tendon or ligament, nerve paralysis, fractured vertebral 

column, or a metabolic condition. 

(b) Hereafter, none of the funds made available under this or any other Act may be used 

to pay the salaries or expenses of any personnel of the Food Safety and Inspection 

Service to pass through inspection any nonambulatory disabled cattle for use as human 

food, regardless of the reason for the nonambulatory status of the cattle or the time 

at which the cattle became nonambulatory. 

(c) Hereafter, in addition to any penalties 

available under the Federal Meat Inspection 

Act (21 U.S.C. 601 et seq.), the Secretary 

shall impose penalties consistent with sections 10414 and 10415 of the Animal Health 

Protection Act (7 U.S.C. 8313, 8314) on any establishment that slaughters nonambulatory 

disabled cattle or prepares a carcass, part of 

a carcass, or meat or meat food product, 

from any nonambulatory disabled cattle, for 

use as human food. 

SEC. 1102. FARM RELIEF. (a) SHORT TITLE.— 

This section may be cited as the ‘‘Farm Relief Act of 2008’’. 

(b) 2008 CROP DISASTER ASSISTANCE.—Section 9001 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public 

Law 110–28; 121 Stat. 211) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘There are hereby’’ and inserting the following: 

‘‘(1) IN GENERAL.—There are hereby’’; and 

(B) by adding at the end the following: 

‘‘(2) 2008 CROP DISASTER ASSISTANCE.— 

‘‘(A) IN GENERAL.—There are hereby appropriated to the Secretary such sums as are 

necessary, to remain available until expended, to make emergency financial assistance under this section available to producers on a farm that incurred qualifying 

quantity or quality losses for the 2008 crop 

due a natural disaster or any related condition, as determined by the Secretary. 

‘‘(B) SUGAR AND SUGARCANE DISASTER ASSISTANCE.— 

‘‘(i) FLORIDA.—There are hereby appropriated to the Secretary such sums as are 

necessary, to remain available until expended, to make payments to processors in 

Florida that are eligible to obtain a loan 

under section 156(a) of the Federal Agriculture Improvement and Reform Act of 1996 

(7 U.S.C. 7272(a)) to compensate first processors and producers for crop and other 

losses due a natural disaster or any related 

condition, as determined by the Secretary, 

in Florida during calendar year 2008, by an 

agreement on the same terms and conditions, to the maximum extent practicable, as 

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