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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 396 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 396

    To provide assistance to the unemployed, tax relief for average 
 Americans, fiscal assistance to state and local governments, and jobs 
and security through infrastructure investment, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 2003

 Mr. DeFazio introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
Transportation and Infrastructure, Education and the Workforce, Energy 
and Commerce, Agriculture, Financial Services, and Armed Services, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
    To provide assistance to the unemployed, tax relief for average 
 Americans, fiscal assistance to state and local governments, and jobs 
and security through infrastructure investment, and for other purposes.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Emergency Anti-
Recession Act of 2003''.
    (b) Table of Contents.--

Sec. 1. Short title.
                 TITLE I--ASSISTANCE TO THE UNEMPLOYED

Sec. 101. Entitlement to additional weeks of temporary extended 
                            unemployment compensation.
                      TITLE II--PAYROLL TAX RELIEF

Sec. 201. Payroll tax holiday.
      TITLE III--FISCAL ASSISTANCE FOR STATE AND LOCAL GOVERNMENTS

Sec. 301. Findings.
Sec. 302. Financial assistance authorized.
Sec. 303. Allocation.
Sec. 304. Use of funds by State and local governments.
      TITLE IV--TRANSPORTATION AND WATER INFRASTRUCTURE INVESTMENT

               Subtitle A--Rail Infrastructure Investment

                    Part I--Credit for Amtrak Bonds

Sec. 401. Credit to holders of qualified Amtrak bonds.
                  Part II--High-speed Rail Provisions

Sec. 403. Department of transportation approval for qualified Amtrak 
                            projects.
Sec. 404. Multiyear capital spending plan and oversight.
Sec. 405. Issuance of regulations.
Sec. 406. Sense of Congress regarding effect on Amtrak funding.
Sec. 407. Effective date.
                  Part III--Amtrak Capital Investment

Sec. 411. Authorization of appropriations.
        Part IV--Capital Investment for Railroad Rehabilitation

Sec. 416. Capital grants for railroad track.
Sec. 417. Regulatory procedure amendments.
          Subtitle B--Environmental Infrastructure Investment

Sec. 421. General authority for capitalization grants.
Sec. 422. Capitalization grants agreements.
Sec. 423. Water pollution control revolving funds.
Sec. 424. Authorization of appropriations for clean water State 
                            revolving funds.
Sec. 425. Wet weather.
Sec. 426. Safe drinking water State revolving funds.
             Subtitle C--Highway Infrastructure Investment

Sec. 431. Federal-aid highway program obligation ceiling.
Sec. 432. Limitations on credit amounts.
             Subtitle D--Transit Infrastructure Investment

Sec. 441. Additional authorizations for formula grants.
Sec. 442. Federal transit program obligation ceiling.
Sec. 443. Uniform dollar limitation for all types of transportation 
                            fringe benefits.
             Subtitle E--Aviation Infrastructure Investment

Sec. 451. Increased funding for airport planning and development.
Sec. 452. Increased funding for airway facilities improvement.
             Subtitle F--Maritime Infrastructure Investment

Sec. 461. Marine transportation system infrastructure.
       Subtitle G--Economic Development Infrastructure Investment

Sec. 471. Public works and economic development.
Sec. 472. Appalachian regional development.
Sec. 473. Delta regional development.
         Subtitle H--Water Resources Infrastructure Investment

Sec. 481. Increased funding for corps of engineers projects.
         Subtitle I--Public Buildings Infrastructure Investment

Sec. 491. Security enhancements for GSA properties.
Sec. 492. Security enhancements for John F. Kennedy center.
Sec. 493. Security enhancements for Smithsonian Institution.
                     Subtitle J--General Provisions

Sec. 495. Priority consideration for security projects.
Sec. 496. Temporary waiver of non-Federal share.
Sec. 497. Maintenance of effort.
Sec. 498. Labor standards.
Sec. 499. Buy America.
       TITLE V--ELEMENTARY AND SECONDARY EDUCATION INFRASTRUCTURE

Sec. 501. Elementary and secondary education infrastructure.
Sec. 502. Labor standards.
                       TITLE VI--REVENUE OFFSETS

Sec. 601. Top individual income tax marginal rate not reduced below 
                            2003 level.
Sec. 602. Reinstatement of estate tax for estate over $5,000,000; 
                            repeal of carryover basis.

                 TITLE I--ASSISTANCE TO THE UNEMPLOYED

SEC. 101. ENTITLEMENT TO ADDITIONAL WEEKS OF TEMPORARY EXTENDED 
              UNEMPLOYMENT COMPENSATION.

    (a) In General.--Paragraph (1) of section 203(b) of the Temporary 
Extended Unemployment Compensation Act of 2002 (26 U.S.C. 3304 note) is 
amended--
            (1) in subparagraph (A), by striking ``50'' and inserting 
        ``100''; and
            (2) in subparagraph (B), by striking ``13'' and inserting 
        ``26''.
    (b) Program Extension.--Paragraph (3) of section 208(b) of such Act 
is amended by striking ``August 30'' and inserting ``November 29''.
    (c) Conforming Amendment.--Paragraph (1) of section 203(c) of such 
Act is amended by inserting ``50 percent of'' before ``the amount 
originally established in such account''.

SEC. 102. EFFECTIVE DATE.

    (a) In General.--The amendments made by this title--
            (1) shall take effect as if included in the enactment of 
        Public Law 107-147; but
            (2) shall apply only with respect to weeks of unemployment 
        beginning on or after the date of enactment this Act, subject 
        to subsection (b).
    (b) Special Rules.--In the case of an individual for whom a 
temporary extended unemployment account was established before the date 
of enactment of this Act, the Temporary Extended Unemployment 
Compensation Act of 2002 (as amended by this title) shall be applied 
subject to the following:
            (1) Any amounts deposited in the individual's temporary 
        extended unemployment compensation account by reason of section 
        203(c) of such Act (commonly known as ``TEUC-X amounts'') 
        before the date of enactment of this Act shall be treated as 
        amounts deposited by reason of section 203(b) of such Act 
        (commonly known as ``TEUC amounts''), as amended by section 
        101(a).
            (2) For purposes of determining whether the individual is 
        eligible for any TEUC-X amounts under such Act, as amended by 
        this title--
                    (A) any determination made under section 203(c) of 
                such Act before the application of the amendments made 
                by this title shall be disregarded; and
                    (B) any such determination shall instead be made by 
                applying section 203(c) of such Act, as amended by this 
                title--
                            (i) as of the time that all amounts 
                        established in such account in accordance with 
                        section 203(b) of such Act (as amended by this 
                        title, and including any amounts described in 
                        paragraph (1)) are in fact exhausted, except 
                        that
                            (ii) if such individual's account was both 
                        augmented by and exhausted of all TEUC-X 
                        amounts before the date of enactment of this 
                        Act, such determination shall be made as if 
                        exhaustion (as described in section 203(c)(1) 
                        of such Act) had not occurred until such date 
                        of enactment.

                      TITLE II--PAYROLL TAX RELIEF

SEC. 201. PAYROLL TAX HOLIDAY.

    (a) In General.--Notwithstanding any other provision of law, the 
rate of tax with respect to the first $10,000 of remuneration received 
during the payroll tax holiday period shall be zero under sections 
1401(a), 3101(a), and 3111(a) of the Internal Revenue Code of 1986 and 
for purposes of determining the applicable percentage under section 
3201(a), 3211(a)(1), and 3221(a) of such Code.
    (b) Payroll Tax Holiday Period.--The term ``payroll tax holiday 
period'' means the 1-year period beginning on the 1st day of the 1st 
calendar month which begins more than 30 days after the date of the 
enactment of this Act.
    (c) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax holiday period in any manner the 
Secretary deems appropriate.
    (d) Transfer of Funds.--The Secretary of the Treasury shall 
transfer from the general revenues of the Federal Government an amount 
sufficient so as to ensure that the income and balances of the trust 
funds under section 201 of the Social Security Act and the Social 
Security Equivalent Benefit Account under section 15A of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231n-1) are not reduced as a result 
of the application of subsection (a).
    (e) Determination of Benefits.--In making any determination of 
benefits under title II of the Social Security Act, the Commissioner of 
Social Security shall disregard the effect of the payroll tax holiday 
period on any individual's earnings record.

      TITLE III--FISCAL ASSISTANCE FOR STATE AND LOCAL GOVERNMENTS

SEC. 301. FINDINGS.

    The Congress finds that:
            (1) State and local governments represent a significant 
        segment of the national economy whose economic health is 
        essential to national economic prosperity;
            (2) present national economic problems have imposed 
        considerable hardships on State and local government budgets;
            (3) those governments, because of their own fiscal 
        difficulties, are being forced to take budget-related actions 
        which tend to undermine Federal government efforts to stimulate 
        the economy;
            (4) efforts to stimulate the economy through reductions in 
        Federal government tax obligations or increased spending on 
        federal programs are weakened when State and local governments 
        are forced to increase taxes or cut spending;
            (5) efforts by the Federal government to stimulate the 
        economic recovery will be substantially enhanced by a program 
        of emergency Federal government assistance to State and local 
        governments to help prevent those governments from taking 
        budget-related actions which undermine the Federal government 
        efforts to stimulate economic recovery.

SEC. 302. FINANCIAL ASSISTANCE AUTHORIZED.

    (a) Payments to State and Local Governments.--The Secretary of the 
Treasury shall, in accordance with the provisions in this title, make 
payments to states to coordinate budget related actions by such 
governments with federal government efforts to stimulate economic 
recovery.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $50,000,000,000 to be made available through fiscal year 
2004 for the purpose of payments under this title.
    (c) Reservations.--Not less than one-third of the money authorized 
to be appropriated under section 302(b) shall be made available to 
local governments under the applicable laws of a given State.

SEC. 303. ALLOCATION.

    The Secretary of the Treasury shall establish a formula for 
determining each State's allocation under section 302(b). The formula 
shall give priority weight to the following factors:
            (1) The State unemployment rate in relation to the national 
        average unemployment rate.
            (2) The duration of a State unemployment rate above such 
        average.
            (3) Median income.
            (4) Population.

SEC. 304. USE OF FUNDS BY STATE AND LOCAL GOVERNMENTS.

    (a) In General.--Funds received under this title may be used only 
for priority expenditures. For purposes of this title, the term 
``priority expenditures'' means only--
            (1) ordinary and necessary maintenance and operating 
        expenses for--
                    (A) primary, secondary, or higher education,
                    (B) worker retraining,
                    (C) public safety,
                    (D) public health,
                    (E) social services for the poor or aged,
                    (F) public transportation,
                    (G) environmental protection, and
                    (H) libraries; and
            (2) ordinary and necessary capital expenditures authorized 
        by law.
    (b) Certificates by State and Local Governments.--The Secretary is 
authorized to accept a certification by the chief executive officer of 
a State or local government that the State or local government has used 
the funds received by it under this subtitle for an entitlement period 
only for priority expenditures, unless the Secretary determines that 
such certification is not sufficiently reliable to enable the Secretary 
to carry out his or her duties under this title. The Secretary shall 
prescribe by rule the time and manner in which the certification must 
be filed.

      TITLE IV--TRANSPORTATION AND WATER INFRASTRUCTURE INVESTMENT

               Subtitle A--Rail Infrastructure Investment

                    PART I--CREDIT FOR AMTRAK BONDS

SEC. 401. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

``Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak Bonds

                              ``Sec. 54. Credit to holders of qualified 
                                        Amtrak bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified Amtrak bond on a credit allowance date of such bond which 
occurs during the taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for such taxable year an amount 
equal to the sum of the credits determined under subsection (b) with 
respect to credit allowance dates during such year on which the 
taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified Amtrak bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified Amtrak bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of sale of the issue) on outstanding long-term corporate 
        debt obligations (determined under regulations prescribed by 
        the Secretary).
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than this subpart and subpart C).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(d) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(e) Qualified Amtrak Bond.--For purposes of this part, the term 
`qualified Amtrak bond' means any bond issued as part of an issue if--
            ``(1) 95 percent or more of the proceeds from the sale of 
        such issue are to be used for expenditures incurred after the 
date of the enactment of this section for any qualified project,
            ``(2) the bond is issued by the National Railroad Passenger 
        Corporation, is in registered form, and meets the bond 
        limitation requirements under subsection (f),
            ``(3) the issuer designates such bond for purposes of this 
        section,
            ``(4) the issuer certifies that it meets the State 
        contribution requirement of subsection (k) with respect to such 
        project, as in effect on the date of the enactment of this 
        section,
            ``(5) the issuer certifies that it has obtained the written 
        approval of the Secretary of Transportation for such project in 
        accordance with section 26301 of title 49, United States Code, 
        as in effect on the date of the enactment of this section,
            ``(6) the term of each bond which is part of such issue 
        does not exceed 20 years,
            ``(7) the payment of principal with respect to such bond is 
        the obligation of the National Railroad Passenger Corporation, 
        and
            ``(8) the issue meets the requirements of subsection (g) 
        (relating to arbitrage).
    ``(f) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a qualified Amtrak bond 
        limitation for each fiscal year. Such limitation is--
                    ``(A) $1,500,000,000 for each of the fiscal years 
                2002 through 2011, and
                    ``(B) zero after fiscal year 2011.
            ``(2) Limits on bonds for northeast rail corridor and 
        individual states.--
                    ``(A) Northeast rail corridor.--Not more than 
                $3,000,000,000 of the limitation under paragraph (1) 
                may be designated for qualified projects on the 
                northeast rail corridor between Washington, D.C., and 
                Boston, Massachusetts.
                    ``(B) Individual states.--Not more than 
                $3,000,000,000 of the limitation under paragraph (1) 
                may be designated for any individual State. The dollar 
                limitation under this subparagraph is in addition to 
                the dollar limitation for the qualified projects 
                described in subparagraph (A).
            ``(3) Limit on bonds for other projects.--Not more than 
        $100,000,000 of the limitation under paragraph (1) for any 
        fiscal year may be designated for all qualified projects 
        described in subsection (j)(1)(C).
            ``(4) Carryover of unused limitation.--If for any fiscal 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (e)(3),
        the limitation amount under paragraph (1) for the following 
        fiscal year (through fiscal year 2015) shall be increased by 
        the amount of such excess.
    ``(g) Special Rules Relating to Arbitrage.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the issuer reasonably expects--
                    ``(A) to spend at least 95 percent of the proceeds 
                from the sale of the issue for 1 or more qualified 
                projects within the 3-year period beginning on such 
                date,
                    ``(B) to incur a binding commitment with a third 
                party to spend at least 10 percent of the proceeds from 
                the sale of the issue, or to commence construction, 
                with respect to such projects within the 6-month period 
                beginning on such date, and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds from the sale 
                of the issue.
            ``(2) Rules regarding continuing compliance after 3-year 
        determination.--If at least 95 percent of the proceeds from the 
        sale of the issue is not expended for 1 or more qualified 
        projects within the 3-year period beginning on the date of 
        issuance, but the requirements of paragraph (1) are otherwise 
        met, an issue shall be treated as continuing to meet the 
        requirements of this subsection if either--
                    ``(A) the issuer uses all unspent proceeds from the 
                sale of the issue to redeem bonds of the issue within 
                90 days after the end of such 3-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The issuer spends at least 75 percent 
                        of the proceeds from the sale of the issue for 
                        1 or more qualified projects within the 3-year 
                        period beginning on the date of issuance.
                            ``(ii) Either--
                                    ``(I) the issuer spends at least 95 
                                percent of the proceeds from the sale 
                                of the issue for 1 or more qualified 
                                projects within the 4-year period 
                                beginning on the date of issuance, or
                                    ``(II) the issuer pays to the 
                                Federal Government any earnings on the 
                                proceeds from the sale of the issue 
                                that accrue after the end of the 3-year 
                                period beginning on the date of 
                                issuance and uses all unspent proceeds 
                                from the sale of the issue to redeem 
                                bonds of the issue within 90 days after 
                                the end of the 4-year period beginning 
                                on the date of issuance.
    ``(h) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified Amtrak bond ceases to be such a qualified 
        bond, the issuer shall pay to the United States (at the time 
        required by the Secretary) an amount equal to the sum of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the issuer fails to timely pay 
        the amount required by paragraph (1) with respect to such bond, 
        the tax imposed by this chapter on each holder of any such bond 
        which is part of such issue shall be increased (for the taxable 
        year of the holder in which such cessation occurs) by the 
        aggregate decrease in the credits allowed under this section to 
        such holder for taxable years beginning in such 3 calendar 
        years which would have resulted solely from denying any credit 
        under this section with respect to such issue for such taxable 
        years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
    ``(i) Trust Account.--
            ``(1) In general.--The following amounts shall be held in a 
        trust account by a trustee independent of the National Railroad 
        Passenger Corporation:
                    ``(A) The proceeds from the sale of all bonds 
                designated for purposes of this section.
                    ``(B) The amount of any matching contributions with 
                respect to such bonds.
                    ``(C) The temporary period investment earnings on 
                proceeds from the sale of such bonds.
                    ``(D) Any earnings on any amounts described in 
                subparagraph (A), (B), or (C).
            ``(2) Use of funds.--Amounts in the trust account may be 
        used only to pay costs of qualified projects and redeem 
        qualified Amtrak bonds, except that amounts withdrawn from the 
        trust account to pay costs of qualified projects may not exceed 
        the aggregate proceeds from the sale of all qualified Amtrak 
        bonds issued under this section.
            ``(3) Use of remaining funds in trust account.--Upon the 
        redemption of all qualified Amtrak bonds issued under this 
        section, any remaining amounts in the trust account described 
        in paragraph (1) shall be available to the issuer for any 
        qualified project.
    ``(j) Qualified Project.--For purposes of this section--
            ``(1) In general.--The term `qualified project' means--
                    ``(A) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including track or signal improvements or the 
                elimination of grade crossings, for the northeast rail 
                corridor between Washington, D.C., and Boston, 
                Massachusetts,
                    ``(B) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including development of intermodal 
                facilities, track or signal improvements, or the 
                elimination of grade crossings, for the improvement of 
                train speeds or safety (or both) on the high-speed rail 
                corridors designated under section 104(d)(2) of title 
                23, United States Code, as in effect on the date of the 
                enactment of this section, and
                    ``(C) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements, including station rehabilitation or 
                construction, development of intermodal facilities, 
                track or signal improvements, or the elimination of 
                grade crossings, for the improvement of train speeds or 
                safety (or both) for other intercity passenger rail 
                corridors and for the Alaska Railroad.
            ``(2) Refinancing rules.--For purposes of paragraph (1), a 
        refinancing shall constitute a qualified project only if the 
        indebtedness being refinanced (including any obligation 
        directly or indirectly refinanced by such indebtedness) was 
        originally incurred by the issuer--
                    ``(A) after the date of the enactment of this 
                section,
                    ``(B) for a term of not more than 3 years,
                    ``(C) to finance or acquire capital improvements 
                described in paragraph (1), and
                    ``(D) in anticipation of being refinanced with 
                proceeds of a qualified Amtrak bond.
    ``(k) State Contribution Requirements.--
            ``(1) In general.--For purposes of subsection (e)(4), the 
        State contribution requirement of this subsection is met with 
        respect to any qualified project if the National Railroad 
        Passenger Corporation has received from 1 or more States, not 
        later than the date of issuance of the bond, matching 
        contributions of not less than 20 percent of the cost of the 
        qualified project.
            ``(2) No state contribution requirement for certain 
        qualified projects.--The State contribution requirement of this 
        subsection is zero with respect to the following projects:
                    ``(A) Any qualified project for the acquisition and 
                installation of platform facilities, performance of 
                railroad force account work necessary to complete 
                improvements below street grade, and any other 
                necessary improvements related to construction at the 
                railroad station at the James A. Farley Post Office 
                Building in New York City, New York.
                    ``(B) Any project described in subsection (j)(1)(C) 
                for the Alaska Railroad.
            ``(3) State matching contributions may not include federal 
        funds.--For purposes of this subsection, State matching 
        contributions shall not be derived, directly or indirectly, 
        from Federal funds, including any transfers from the Highway 
        Trust Fund under section 9503.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Treatment of changes in use.--For purposes of 
        subsection (e)(1), the proceeds from the sale of an issue shall 
        not be treated as used for a qualified project to the extent 
        that the issuer takes any action within its control which 
        causes such proceeds not to be used for a qualified project. 
        The Secretary shall prescribe regulations specifying remedial 
        actions that may be taken (including conditions to taking such 
        remedial actions) to prevent an action described in the 
        preceding sentence from causing a bond to fail to be a 
        qualified Amtrak bond.
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(4) Bonds held by regulated investment companies.--If any 
        qualified Amtrak bond is held by a regulated investment 
        company, the credit determined under subsection (a) shall be 
        allowed to shareholders of such company under procedures 
        prescribed by the Secretary.
            ``(5) Reporting.--Issuers of qualified Amtrak bonds shall 
        submit reports similar to the reports required under section 
        149(e).''.
    (b) Amendments to Other Code Sections.--
            (1) Reporting.--Subsection (d) of section 6049 of the 
        Internal Revenue Code of 1986 (relating to returns regarding 
        payments of interest) is amended by adding at the end the 
        following new paragraph:
            ``(8) Reporting of credit on qualified amtrak bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(d) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
            (2) Treatment for estimated tax purposes.--
                    (A) Individual.--Section 6654 of such Code 
                (relating to failure by individual to pay estimated 
                income tax) is amended by redesignating subsection (m) 
                as subsection (n) and by inserting after subsection (l) 
                the following new subsection:
    ``(m) Special Rule for Holders of Qualified Amtrak Bonds.--For 
purposes of this section, the credit allowed by section 54 to a 
taxpayer by reason of holding a qualified Amtrak bond on a credit 
allowance date shall be treated as if it were a payment of estimated 
tax made by the taxpayer on such date.''.
                    (B) Corporate.--Section 6655 of such Code (relating 
                to failure by corporation to pay estimated income tax) 
                is amended by adding at the end of subsection (g) the 
                following new paragraph:
            ``(5) Special rule for holders of qualified amtrak bonds.--
        For purposes of this section, the credit allowed by section 54 
        to a taxpayer by reason of holding a qualified Amtrak bond on a 
        credit allowance date shall be treated as if it were a payment 
        of estimated tax made by the taxpayer on such date.''.
            (3) Exclusion from gross income of contributions by Amtrak 
        to other rail carriers.--
                    (A) In general.--Section 118 of the Internal 
                Revenue Code of 1986 (relating to contributions to the 
                capital of a corporation) is amended by redesignating 
                subsection (d) as subsection (e) and by inserting after 
                subsection (c) the following new subsection:
    ``(d) Special Rule for Contributions by Amtrak to Other Rail 
Carriers.--For purposes of this section, the term `contribution to the 
capital of the taxpayer' does not include any contribution by the 
National Railroad Passenger Corporation of personal or real property 
funded by the proceeds of qualified Amtrak bonds under section 54.''.
                    (B) Conforming amendment.--Subsection (b) of such 
                section 118 is amended by striking ``subsection (c)'' 
                and inserting ``subsections (c) and (d)''.
            (4) Protection of highway trust fund.--Section 9503 of such 
        Code (relating to Highway Trust Fund) is amended by adding at 
        the end the following new subsection:
    ``(g) Special Rule Relating to National Railroad Passenger 
Corporation.--Except as provided in subsection (c), as in effect on the 
date of the enactment of this subsection, amounts in the Highway Trust 
Fund may not be used to provide funds to the National Railroad 
Passenger Corporation for any purpose, including issuance of any 
qualified Amtrak bond pursuant to section 54. The preceding sentence 
may not be waived by any provision of law which is not contained or 
referenced in this title, whether such provision of law is a 
subsequently enacted provision or directly or indirectly seeks to waive 
the application of such sentence.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

                              ``Subpart H. Nonrefundable Credit for 
                                        Holders of Qualified Amtrak 
                                        Bonds.''.
            (2) Section 6401(b)(1) is amended by striking ``and G'' and 
        inserting ``G, and H''.
    (d) Annual Report by Treasury on Amtrak Trust Account.--The 
Secretary of the Treasury shall annually report to Congress as to 
whether the amount deposited in the trust account established by the 
National Railroad Passenger Corporation under section 54(i) of the 
Internal Revenue Code of 1986, as added by this section, is sufficient 
to fully repay at maturity the principal of any outstanding qualified 
Amtrak bonds issued pursuant to section 54 of such Code (as so added), 
together with amounts expected to be deposited into such account, as 
certified by the National Railroad Passenger Corporation in accordance 
with procedures prescribed by the Secretary of the Treasury.
    (e) Issuance of Regulations.--The Secretary of the Treasury shall 
issue regulations required under section 54 of the Internal Revenue 
Code of 1986 (as added by this section) not later than 90 days after 
the date of the enactment of this Act.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.

                  PART II--HIGH-SPEED RAIL PROVISIONS

SEC. 403. DEPARTMENT OF TRANSPORTATION APPROVAL FOR QUALIFIED AMTRAK 
              PROJECTS.

    (a) Amendment.--Part D of subtitle V of title 49, United States 
Code, is amended by adding at the end the following new chapter:

               ``CHAPTER 263--HIGH-SPEED RAIL INITIATIVES

``Sec.
``26301. Department of Transportation approval for qualified high-speed 
                            rail projects.
``26302. Qualified projects.
``26303. State contribution requirements.''.
``Sec. 26301. Department of Transportation approval for qualified high-
              speed rail projects
    ``(a) In General.--The written approval of a qualified project by 
the Secretary of Transportation required for purposes of subsection 
(e)(5) of section 54 of the Internal Revenue Code of 1986 (relating to 
credit to holders of qualified Amtrak bonds) shall include--
            ``(1) the finding by the Inspector General of the 
        Department of Transportation described in subsection (b);
            ``(2) the certification by the Secretary of Transportation 
        described in subsection (c); and
            ``(3) the agreement by the National Railroad Passenger 
        Corporation described in subsection (d).
    ``(b) Finding by Inspector General.--For purposes of subsection 
(a), the finding described in this subsection is a finding by the 
Inspector General of the Department of Transportation that there is a 
reasonable likelihood that the proposed project will result in a 
positive financial contribution to the National Railroad Passenger 
Corporation and that the investment evaluation process includes 
consideration of a return on investment, leveraging of funds (including 
State capital and operating contributions), cost effectiveness, safety 
improvement, mobility improvement, and feasibility.
    ``(c) Certification.--For purposes of subsection (a), the 
certification described in this subsection is a certification by the 
Secretary of Transportation that the issuer of the qualified Amtrak 
bond--
            ``(1) except with respect to projects described in section 
        54(j)(1)(C) of the Internal Revenue Code of 1986, has entered 
        into a written agreement with the owners of rail properties 
        which are to be improved by the project to be funded by the 
        qualified Amtrak bond, as to the scope and estimated cost of 
        such project and the impact on rail freight capacity; and
            ``(2) has met the State contribution requirements described 
        in section 26303.
The National Railroad Passenger Corporation shall not exercise its 
rights under section 24308(a)(2) to resolve disputes with respect to a 
project to be funded by a qualified Amtrak bond, or with respect to the 
cost of such a project, unless the project is intended to result in 
railroad speeds of 79 miles per hour or less.
    ``(d) Agreement by Amtrak To Issue Additional Bonds for Projects of 
Other Carriers.--
            ``(1) In general.--For purposes of subsection (a), the 
        agreement described in this subsection is an agreement by the 
        National Railroad Passenger Corporation with the Secretary of 
        Transportation to issue bonds which meet the requirements of 
        section 54 of the Internal Revenue Code of 1986 for use in 
        financing projects described in paragraph (2).
            ``(2) Projects covered.--For purposes of paragraph (1), the 
        projects described in this paragraph are any project described 
        in subsection (j)(1)(B) or (j)(1)(C) of section 54 of the 
        Internal Revenue Code of 1986 for an intercity rail passenger 
        carrier other than the National Railroad Passenger Corporation 
        or for the Alaska Railroad.
            ``(3) Additional requirements.--Any project financed by 
        bonds referred to in paragraph (1) shall be carried out by the 
        intercity rail passenger carrier other than the National 
        Railroad Passenger Corporation, through a contract entered into 
        by the National Railroad Passenger Corporation with such 
        carrier. Such other intercity rail passenger carrier, in 
        carrying out the project, shall be subject to the provisions of 
        this subtitle governing the National Railroad Passenger 
        Corporation.
            ``(4) Definition.--For purposes of this subsection, the 
        term `intercity rail passenger carrier' means any rail carrier 
        (as such term is defined in section 24102(7)) that is part of 
        the interstate system of rail transportation and that provides 
        intercity rail passenger transportation (as such term is 
        defined in section 24102(5)).
    ``(e) Additional Selection Criteria.--In determining projects to be 
approved under this section (other than projects for the Alaska 
Railroad), or to be included in an agreement under subsection (d), the 
Secretary of Transportation shall give preference to--
            ``(1) any project with a State matching contribution rate 
        exceeding 20 percent;
            ``(2) projects expected to have a significant impact on air 
        traffic congestion;
            ``(3) projects expected to also improve commuter rail 
        operations;
            ``(4) projects that anticipate fares designed to recover 
        costs and generate a return on investment; and
            ``(5) projects that promote regional balance in 
        infrastructure investment and the national interest in ensuring 
        the development of a nationwide high-speed rail transportation 
        network.
``Sec. 26302. Qualified projects
    ``For purposes of this chapter--
            ``(1) In general.--The term `qualified project' means--
                    ``(A) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including track or signal improvements or the 
                elimination of grade crossings, for the northeast rail 
                corridor between Washington, D.C., and Boston, 
                Massachusetts;
                    ``(B) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including development of intermodal 
                facilities, track or signal improvements, or the 
                elimination of grade crossings, for the improvement of 
                train speeds or safety (or both) on the high-speed rail 
                corridors designated under section 104(d)(2) of title 
                23, United States Code, as in effect on the date of the 
                enactment of this section; and
                    ``(C) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements, including station rehabilitation or 
                construction, development of intermodal facilities, 
                track or signal improvements, or the elimination of 
                grade crossings, for the improvement of train speeds or 
                safety (or both) for other intercity passenger rail 
                corridors and for the Alaska Railroad.
            ``(2) Refinancing rules.--For purposes of paragraph (1), a 
        refinancing shall constitute a qualified project only if the 
        indebtedness being refinanced (including any obligation 
        directly or indirectly refinanced by such indebtedness) was 
        originally incurred by the issuer--
                    ``(A) after the date of the enactment of this 
                section;
                    ``(B) for a term of not more than 3 years;
                    ``(C) to finance or acquire capital improvements 
                described in paragraph (1); and
                    ``(D) in anticipation of being refinanced with 
                proceeds of a qualified Amtrak bond.
``Sec. 26303. State contribution requirements
    ``(a) In General.--For purposes of section 26301(c)(2), the State 
contribution requirement of this section is met with respect to any 
qualified project if the National Railroad Passenger Corporation has 
received from 1 or more States, not later than the date of issuance of 
the bond, matching contributions of not less than 20 percent of the 
cost of the qualified project.
    ``(b) No State Contribution Requirement for Certain Qualified 
Projects.--The State contribution requirement of this section is zero 
with respect to the following projects:
            ``(1) Any qualified project for the acquisition and 
        installation of platform facilities, performance of railroad 
        force account work necessary to complete improvements below 
        street grade, and any other necessary improvements related to 
        construction at the railroad station at the James A. Farley 
        Post Office Building in New York City, New York.
            ``(2) Any project described in subsection (j)(1)(C) of 
        section 54 of the Internal Revenue Code of 1986 for the Alaska 
        Railroad.
    ``(c) State Matching Contributions May Not Include Federal Funds.--
For purposes of this section, State matching contributions shall not be 
derived, directly or indirectly, from Federal funds, including any 
transfers from the Highway Trust Fund under section 9503 of the 
Internal Revenue Code of 1986.''.
    (b) Table of Chapters Amendment.--The table of chapters of subtitle 
V of title 49, United States Code, is amended by inserting after the 
item relating to chapter 261 the following new item:

``263. HIGH-SPEED RAIL INITIATIVES..........................   26301''.

SEC. 404. MULTIYEAR CAPITAL SPENDING PLAN AND OVERSIGHT.

    (a) Amendment.--Chapter 243 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 24316. Multiyear capital spending plan and oversight
    ``(a) Amtrak Capital Spending Plan.--
            ``(1) In general.--The National Railroad Passenger 
        Corporation shall annually submit to the President and Congress 
        a multiyear capital spending plan, as approved by the Board of 
        Directors of the Corporation.
            ``(2) Contents of plan.--Such plan shall identify the 
        capital investment needs of the Corporation over a period of 
        not less than 5 years and the funding sources available to 
        finance such needs and shall prioritize such needs according to 
        corporate goals and strategies.
            ``(3) Initial submission date.--The first plan shall be 
        submitted before the issuance of any qualified Amtrak bonds by 
        the National Railroad Passenger Corporation pursuant to section 
        54 of the Internal Revenue Code of 1986.
    ``(b) Oversight of Qualified Projects.--The Secretary of 
Transportation shall contract for an annual independent assessment of 
the costs and benefits of the qualified projects financed by qualified 
Amtrak bonds pursuant to section 54 of the Internal Revenue Code of 
1986, including an assessment of the investment evaluation process of 
the Corporation. The annual assessment shall be included in the plan 
submitted under subsection (a).''.
    (b) Table of Sections Amendment.--The table of sections of chapter 
243 of title 49, United States Code, is amended by adding after the 
item relating to section 24315 the following new item:

``24316. Multiyear capital spending plan and oversight.''.

SEC. 405. ISSUANCE OF REGULATIONS.

    The Secretary of Transportation shall issue regulations for 
carrying out chapter 263 of title 49, United States Code (as added by 
section 111 of this Act), not later than 90 days after the date of the 
enactment of this Act.

SEC. 406. SENSE OF CONGRESS REGARDING EFFECT ON AMTRAK FUNDING.

    It is the sense of the Congress that the proceeds of qualified 
Amtrak bonds issued under section 54 of the Internal Revenue Code of 
1986 are intended to finance the construction of qualified projects (as 
defined in section 26302 of title 49, United States Code, as added by 
section 111 of this Act) and are not intended to meet the regular, 
ongoing capital funding needs of the National Railroad Passenger 
Corporation.

SEC. 407. EFFECTIVE DATE.

    The amendments made by this part shall apply to obligations issued 
after the date of the enactment of this Act.

                  PART III--AMTRAK CAPITAL INVESTMENT

SEC. 411. AUTHORIZATION OF APPROPRIATIONS.

    Section 24104(a) of title 49, United States Code, is amended--
            (1) by inserting ``(1)'' after ``In General.--'';
            (2) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively; and
            (3) by adding at the end the following new paragraph:
    ``(2) There are authorized to be appropriated to the Secretary of 
Transportation $3,000,000,000 for fiscal year 2002 for the benefit of 
Amtrak for capital expenditures including--
            ``(A) New York, Washington, D.C., and Baltimore tunnel life 
        safety projects;
            ``(B) bridges, tracks, and other improvements to increase 
        the capacity and reliability of rail passenger transportation; 
        and
            ``(C) equipment, including acquisition of trainsets and 
        rolling stock, for operation in federally designated corridors.
At least \2/3\ of amounts expended under subparagraph (C) shall be for 
operations outside the Northeast Corridor.''.

        PART IV--CAPITAL INVESTMENT FOR RAILROAD REHABILITATION

SEC. 416. CAPITAL GRANTS FOR RAILROAD TRACK.

    (a) Amendment.--Chapter 223 of title 49, United States Code, is 
amended to read as follows:

            ``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.
``Sec. 22301. Capital grants for railroad track
    ``(a) Establishment of Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish a program of capital grants for the rehabilitation, 
        preservation, or improvement of railroad track (including 
        roadbed, bridges, and related track structures) of class II and 
        class III railroads. Such grants shall be for rehabilitating, 
        preserving, or improving track used primarily for freight 
        transportation to a standard ensuring that the track can be 
        operated safely and efficiently, including grants for 
        rehabilitating, preserving, or improving track to handle 
        286,000 pound rail cars. Grants may be provided under this 
        chapter--
                    ``(A) directly to the class II or class III 
                railroad; or
                    ``(B) with the concurrence of the class II or class 
                III railroad, to a State or local government.
            ``(2) State cooperation.--Class II and class III railroad 
        applicants for a grant under this chapter are encouraged to 
        utilize the expertise and assistance of State transportation 
        agencies in applying for and administering such grants. State 
        transportation agencies are encouraged to provide such 
        expertise and assistance to such railroads.
            ``(3) Interim regulations.--Not later than December 31, 
        2001, the Secretary shall issue temporary regulations to 
        implement the program under this section. Subchapter II of 
        chapter 5 of title 5 does not apply to a temporary regulation 
        issued under this paragraph or to an amendment to such a 
        temporary regulation.
            ``(4) Final regulations.--Not later than October 1, 2002, 
        the Secretary shall issue final regulations to implement the 
        program under this section.
    ``(b) Maximum Federal Share.--The maximum Federal share for 
carrying out a project under this section shall be 80 percent of the 
project cost. The non-Federal share may be provided by any non-Federal 
source in cash, equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case by case basis consistent with 
this chapter.
    ``(c) Project Eligibility.--For a project to be eligible for 
assistance under this section the track must have been operated or 
owned by a class II or class III railroad as of the date of the 
enactment of this section.
    ``(d) Use of Funds.--Grants provided under this section shall be 
used to implement track capital projects as soon as possible. In no 
event shall grant funds be contractually obligated for a project later 
than the end of the third Federal fiscal year following the year in 
which the grant was awarded. Any funds not so obligated by the end of 
such fiscal year shall be returned to the Secretary for reallocation.
    ``(e) Additional Purpose.--In addition to making grants for 
projects as provided in subsection (a), the Secretary may also make 
grants to supplement direct loans or loan guarantees made under title V 
of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 822(d)), for projects described in the last sentence of section 
502(d) of such title. Grants made under this subsection may be used, in 
whole or in part, for paying credit risk premiums, lowering rates of 
interest, or providing for a holiday on principal payments. Credit risk 
premiums funded under this section shall be exempt from the non-Federal 
source requirement of section 502(f)(1) of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)(1)).
    ``(f) Employee Protection.--The Secretary shall require as a 
condition of any grant made under this section that the recipient 
railroad provide a fair arrangement at least as protective of the 
interests of employees who are affected by the project to be funded 
with the grant as the terms imposed under section 11326(a), as in 
effect on the date of the enactment of this section.
    ``(g) Labor Standards.--
            ``(1) Prevailing wages.--The Secretary shall ensure that 
        laborers and mechanics employed by contractors and 
        subcontractors in construction work financed by a grant made 
        under this section will be paid wages not less than those 
        prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor under the Act of March 3, 
        1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.). 
        The Secretary shall make a grant under this section only after 
        being assured that required labor standards will be maintained 
        on the construction work.
            ``(2) Wage rates.--Wage rates in a collective bargaining 
        agreement negotiated under the Railway Labor Act (45 U.S.C. 151 
        et seq.) are deemed for purposes of this subsection to comply 
        with the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 
        U.S.C. 276a et seq.).
    ``(h) Study.--The Secretary shall conduct a study of the projects 
carried out with grant assistance under this section to determine the 
public interest benefits associated with the light density railroad 
networks in the States and their contribution to a multimodal 
transportation system. Not later than March 31, 2003, the Secretary 
shall report to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail networks 
for Federal infrastructure financing.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $500,000,000 for fiscal 
year 2002 for carrying out this section.''.
    (b) Conforming Amendments.--(1) The item relating to chapter 223 in 
the table of chapters of subtitle V of title 49, United States Code, is 
amended to read as follows:

``223. CAPITAL GRANTS FOR RAILROAD TRACK....................   22301''.
    (2) Section 502(d) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822(d)) is amended--
                    (A) by striking ``$3,500,000,000'' and inserting 
                ``$5,000,000,000''; and
                    (B) by striking ``$1,000,000,000'' and inserting 
                ``$1,500,000,000''.

SEC. 417. REGULATORY PROCEDURE AMENDMENTS.

    (a) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (D);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by adding after subparagraph (D) the following 
                new subparagraph:
                    ``(E) the size and characteristics of the cohort of 
                which the loan or loan guarantee is a member; and''; 
                and
            (2) by adding at the end of paragraph (4) the following: 
        ``A cohort may include loans and loan guarantees. The Secretary 
        shall not establish any limit on the proportion of a cohort 
        that may be used for 1 loan or loan guarantee.''.
    (b) Conditions of Assistance.--Section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended--
            (1) in subsection (f)(2)(A), by inserting ``, if any'' 
        after ``collateral offered''; and
            (2) by adding at the end of subsection (h) the following:
``The Secretary shall not require an applicant for a direct loan or 
loan guarantee under this section to provide collateral. The Secretary 
shall not require that an applicant for a direct loan or loan guarantee 
under this section have previously sought the financial assistance 
requested from another source. The Secretary shall require recipients 
of direct loans or loan guarantees under this section to apply the 
standards of section 26106(a)(5) of title 49, United States Code, to 
their projects, except for projects primarily benefiting Class III 
freight railroads.''.
    (c) Time Limit for Approval or Disapproval.--Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822) is amended by adding at the end the following new subsection:
    ``(i) Time Limit for Approval or Disapproval.--Not later than 180 
days after receiving a complete application for a direct loan or loan 
guarantee under this section, the Secretary shall approve or disapprove 
the application.''.
    (d) Fees and Charges.--Section 503 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended by adding 
at the end the following new subsection:
    ``(l) Fees and Charges.--Except as provided in this title, the 
Secretary may not assess any fees, including user fees, or charges in 
connection with a direct loan or loan guarantee provided under section 
502.''.
    (e) Substantive Criteria and Standards.--Not later than 30 days 
after the date of the enactment of this Act, the Secretary of 
Transportation shall publish in the Federal Register and post on the 
Department of Transportation web site the substantive criteria and 
standards used by the Secretary to determine whether to approve or 
disapprove applications submitted under section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).

          Subtitle B--Environmental Infrastructure Investment

SEC. 421. GENERAL AUTHORITY FOR CAPITALIZATION GRANTS.

    Section 601(a) of the Federal Water Pollution Control Act (33 
U.S.C. 1381(a)) is amended by striking ``(1) for construction'' and all 
that follows through the period and inserting ``to accomplish the 
objectives, goals, and policies of this Act.''.

SEC. 422. CAPITALIZATION GRANTS AGREEMENTS.

    (a) Requirements for Construction of Treatment Works.--Section 
602(b)(6) of the Federal Water Pollution Control Act (33 U.S.C. 
1382(b)(6)) is amended--
            (1) by striking ``treatment works'' the first place it 
        appears and inserting ``activities'';
            (2) by striking ``before fiscal year 1995'' and all that 
        follows through ``grants under this title'' and inserting 
        ``with funds made available by capitalization grants under this 
        title (including repayments thereof)''; and
            (3) by striking ``201(b)'' and all that follows through 
        ``218'' and inserting ``204(b)(1), 211''.
    (b) Guidance for Small Systems.--Section 602 of the Federal Water 
Pollution Control Act (33 U.S.C. 1382) is amended by adding at the end 
the following new subsection:
    ``(c) Guidance for Small Systems.--
            ``(1) Simplified procedures.--Not later than 1 year after 
        the date of the enactment of this subsection, the Administrator 
        shall assist the States in establishing simplified procedures 
        for small systems to obtain assistance under this title.
            ``(2) Publication of manual.--Not later than 1 year after 
        the date of the enactment of this subsection, and after 
        providing notice and opportunity for public comment, the 
        Administrator shall publish a manual to assist small systems in 
        obtaining assistance under this title and publish in the 
        Federal Register notice of the availability of the manual.
            ``(3) Small system defined.--For purposes of this title, 
        the term `small system' means a system for which a municipality 
        or intermunicipal, interstate, or State agency seeks assistance 
        under this title and which serves a population of 20,000 or 
        fewer.''.

SEC. 423. WATER POLLUTION CONTROL REVOLVING FUNDS.

    (a) Activities Eligible for Assistance.--Section 603(c) of the 
Federal Water Pollution Control Act (33 U.S.C. 1383(c)) is amended to 
read as follows:
    ``(c) Activities Eligible for Assistance.--
            ``(1) In general.--The amounts of funds available to each 
        State water pollution control revolving fund shall be used only 
        for providing financial assistance to a municipality, 
        intermunicipal agency, interstate agency, State agency, or 
        other person for activities which have as a principal benefit 
        the improvement or protection of water quality. Such activities 
        may include the following:
                    ``(A) Construction of a publicly owned treatment 
                works (as defined in section 212 of this Act).
                    ``(B) Implementation of lake protection programs 
                and projects under section 314.
                    ``(C) Implementation of a management program 
                established under section 319.
                    ``(D) Implementation of a conservation and 
                management plan established under section 320.
                    ``(E) Restoration or protection of publicly or 
                privately owned riparian areas, including acquisition 
                of property rights.
                    ``(F) Implementation of measures to improve the 
                efficiency of public water use.
                    ``(G) Development and implementation of plans by a 
                public recipient to prevent water pollution.
                    ``(H) Acquisition of lands necessary to meet any 
                mitigation requirements related to construction of a 
                publicly owned treatment works.
            ``(2) Fund amounts.--The water pollution control revolving 
        fund of a State shall be established, maintained, and credited 
        with repayments, and the fund balance shall be available in 
        perpetuity for providing financial assistance for activities 
        described in paragraph (1). Fees charged by a State to 
        recipients of such assistance may be deposited in the fund for 
        the sole purpose of financing the cost of administration of 
        this title.''.
    (b) Extended Repayment Period for Financially Distressed 
Communities.--Section 603(d)(1) of the Federal Water Pollution Control 
Act (33 U.S.C. 1383(d)(1)) is amended--
            (1) in subparagraph (A) by inserting after ``20 years'' the 
        following: ``or, in the case of a financially distressed 
        community, the lesser of 40 years or the expected life of the 
        project to be financed with the proceeds of the loan''; and
            (2) in subparagraph (B) by striking ``not later than 20 
        years after project completion'' and inserting ``upon the 
        expiration of the term of the loan''.
    (c) Administrative Expenses.--Section 603(d)(7) of the Federal 
Water Pollution Control Act (33 U.S.C. 1383(d)(7)) is amended by 
inserting before the period at the end the following: ``or $400,000 per 
year or \1/2\ percent per year of the current valuation of such fund, 
whichever is greatest, plus the amount of any fees collected by the 
State for such purpose under subsection (c)(2)''.
    (d) Technical and Planning Assistance for Small Systems.--Section 
603(d) of the Federal Water Pollution Control Act (33 U.S.C. 1383(d)) 
is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) to provide to small systems technical and planning 
        assistance and assistance in financial management, user fee 
        analysis, budgeting, capital improvement planning, facility 
        operation and maintenance, repair schedules, and other 
        activities to improve wastewater treatment plant operations; 
        except that such amounts shall not exceed 2 percent of all 
        grant awards to such fund under this title.''.
    (e) Principal Subsidization.--Section 603 of the Federal Water 
Pollution Control Act is amended by adding at the end the following:
    ``(i) Principal Subsidization.--In any case in which a State makes 
a loan pursuant to subsection (d)(1) to a financially distressed 
community, the State may provide additional subsidization, including 
forgiveness of principal. The total amount of loan subsidies made by a 
State under this subsection in a fiscal year may not exceed 30 percent 
of the amount of the capitalization grant received by the State in such 
fiscal year.
    ``(j) Financially Distressed Community Defined.--In this section, 
the term `financially distressed community' means any community that 
meets affordability criteria established by the State in which the 
treatment works is located, if such criteria are developed after public 
review and comment.
    ``(k) Information To Assist States.--The Administrator may publish 
information to assist States in establishing affordability criteria 
under subsection (j).
    ``(l) Priority.--A State may give priority to a financially 
distressed community in making loans from its water pollution control 
revolving fund.''.

SEC. 424. AUTHORIZATION OF APPROPRIATIONS FOR CLEAN WATER STATE 
              REVOLVING FUNDS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
1387) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) $5,000,000,000 as an additional amount for fiscal 
        year 2002.''.

SEC. 425. WET WEATHER.

    Section 221(f) of the Federal Water Pollution Control Act (33 
U.S.C. 1301(f)) is amended by inserting after the first sentence the 
following: ``In addition, there is authorized to be appropriated to 
carry out this section an additional $1,500,000,000 for fiscal year 
2002.''.

SEC. 426. SAFE DRINKING WATER STATE REVOLVING FUNDS.

    Section 1452(m) of title XIV of the Public Health Service Act 
(commonly known as the ``Safe Drinking Water Act'') (42 U.S.C. 300j-
12(m)) is amended by inserting after the first sentence the following: 
``In addition, there is authorized to be appropriated to carry out this 
section an additional $1,500,000,000 for fiscal year 2002.''.

             Subtitle C--Highway Infrastructure Investment

SEC. 431. FEDERAL-AID HIGHWAY PROGRAM OBLIGATION CEILING.

    Section 1102 of the Transportation Equity Act for the 21st Century 
(112 Stat. 115) is amended by adding at the end the following:
    ``(j) Increase in Obligation Limit for Fiscal Year 2002.--
Notwithstanding any other provision of law, limitations on obligations 
imposed by subsection (a) for fiscal year 2002 shall be increased by 
$5,000,000,000. Such sum shall be distributed in accordance with this 
section, except that a program subject to a reduction in funds under 
subsection (f) shall receive an amount of obligation authority equal to 
the amount of contract authority available for such program in such 
fiscal year.''.

SEC. 432. LIMITATIONS ON CREDIT AMOUNTS.

    Section 188(c) of title 23, United States Code, is amended--
            (1) by striking ``For each of'' and inserting the 
        following:
    ``(1) In general.--For each of'';
            (2) by adding at the end the following:
            ``(2) Special rule.--Notwithstanding any other provision of 
        law, principal amounts of Federal credit instruments authorized 
        under this subsection for fiscal years 1999, 2000, and 2001 
        that have not been made available shall be available in fiscal 
        years 2002 and 2003, in addition to amounts authorized for such 
        fiscal years.''; and
            (3) by aligning the remainder of the text of paragraph (1) 
        (as designated by paragraph (1) of this section) preceding the 
        table with paragraph (2) (as added by paragraph (2) of this 
        section).

             Subtitle D--Transit Infrastructure Investment

SEC. 441. ADDITIONAL AUTHORIZATIONS FOR FORMULA GRANTS.

    (a) From the Trust Fund.--Section 5338(a)(2)(A)(iv) of title 49, 
United States Code, is amended by striking ``$2,873,600,000'' and 
inserting ``$5,273,600,000''.
    (b) From the General Fund.--Section 5338(a)(2)(B)(iv) of title 49, 
United States Code, is amended by striking ``$718,400,000'' and 
inserting ``$1,318,400,000''.
    (c) Availability of Amounts.--Notwithstanding sections 5307(k)(2) 
and section 5336(i), any increase in the amounts apportioned to a 
recipient attributable to the amendments made by subsections (a) and 
(b) of this section may be obligated by the recipient for 1 year after 
the last day of the fiscal year in which the amount is apportioned. Not 
later than 30 days after the end of the 1-year period, an amount that 
is not obligated at the end of that period shall be added to the amount 
that may be apportioned under the urbanized area formula program of 
section 5336 of title 49, United States Code.

SEC. 442. FEDERAL TRANSIT PROGRAM OBLIGATION CEILING.

    Section 3040(4) of the Transportation Equity Act for the 21st 
Century (112 Stat. 338) is amended by striking ``$6,747,000,000'' and 
inserting ``$9,747,000,000''.

SEC. 443. UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF TRANSPORTATION 
              FRINGE BENEFITS.

    (a) In General.--Subparagraph (A) of section 132(f)(2) of the 
Internal Revenue Code of 1986 (relating to limitation on exclusion) is 
amended by striking ``$100'' and inserting ``$175''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

             Subtitle E--AVIATION INFRASTRUCTURE INVESTMENT

SEC. 451. INCREASED FUNDING FOR AIRPORT PLANNING AND DEVELOPMENT.

    (a) In General.--Section 48103(4) of title 49, United States Code, 
is amended by striking ``$3,300,000,000'' and inserting 
``$5,355,000,000.''.
    (b) Discretionary Fund.--Section 47115 of title 49, United States 
Code, is amended by adding at the end the following:
    ``(i) Additional Amount To Be Credited to Fund for Fiscal Year 
2002.--
            ``(1) In general.--In addition to other amounts credited to 
        the fund under this section, there shall be credited to the 
        fund $2,055,000,000 out of amounts made available to the 
        Secretary for fiscal year 2002 under section 48103(4).
            ``(2) Apportionment categories do not apply.--Section 
        47117(e) does not apply to amounts credited to the fund under 
        this subsection.''.
    (c) Conforming Amendment.--Section 47114 of title 49, United States 
Code, is amended by adding at the end the following:
    ``(g) Special Rule for Fiscal Year 2002.--Of the funds made 
available by section 48103(4), the amount subject to apportionment 
under this section shall be reduced by the amount credited to the 
discretionary fund under section 47115(i).''.

SEC. 452. INCREASED FUNDING FOR AIRWAY FACILITIES IMPROVEMENT.

    Section 48101(a)(4) of title 49, United States Code, is amended by 
striking ``$2,914,000,000'' and inserting ``$3,859,000,000''.

             Subtitle F--Maritime Infrastructure Investment

SEC. 461. MARINE TRANSPORTATION SYSTEM INFRASTRUCTURE.

    (a) Maritime Loan Guarantees.--For expenses under the loan 
guarantee program authorized by title XI of the Merchant Marine Act, 
1936 (46 App. U.S.C. 1271 et seq.) there is authorized to be 
appropriated, in addition to any other amounts authorized for such 
expenses, $100,000,000 for fiscal years 2002 and 2003, of which--
            (1) $87,000,000 is for the cost (as defined in section 
        502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5))) of loan guarantees under the program, including the 
        costs of modifying such loans, of which $5,000,000 shall be 
        used to guarantee loans for ferries using a streamlined 
        process; and
            (2) $13,000,000 is for administrative expenses related to 
        loan guarantee commitments under the program.
    (b) Marine Transportation System Improvement Grants.--
            (1) Grants authority.--The Secretary of Transportation may 
        make a grant to the operator of any port or maritime cargo 
        terminal in the United States to acquire the best available 
        technology, equipment, or infrastructure to expedite the 
        transportation of cargo through the port or terminal, 
        respectively.
            (2) Qualified projects.--A project shall not qualify for a 
        grant under this section unless it provides technology, 
        equipment, or infrastructure that will significantly increase 
        the actual throughput of cargo through a port or terminal 
        facility.
            (3) Cost sharing.--The Federal share of the cost of a 
        project carried out with a grant under this subsection shall 
        not exceed 50 percent.
            (4) Regulations.--The Secretary shall, before July 1, 2002, 
        prescribe final regulations for issuing grants under this 
        subsection.
            (5) Authorization of appropriations.--For grants under this 
        subsection there is authorized to be appropriated to the 
        Secretary $500,000,000 for fiscal years 2002 and 2003.

       Subtitle G--Economic Development Infrastructure Investment

SEC. 471. PUBLIC WORKS AND ECONOMIC DEVELOPMENT.

    Section 701 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3231) is amended--
            (1) by inserting ``(a) In General.--'' before ``There are 
        authorized''; and
            (2) by adding at the end the following:
    ``(b) Additional Authorization.--In addition to amounts authorized 
by subsection (a), there are authorized to be appropriated to carry out 
this Act $900,000,000 for fiscal year 2002. Such sums shall remain 
available until September 30, 2003.''.

SEC. 472. APPALACHIAN REGIONAL DEVELOPMENT.

    Section 401 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by adding at the end the following:
    ``(c) Additional Authorization.--In addition to amounts authorized 
by subsection (a), there are authorized to be appropriated to the 
Commission to carry out this Act $200,000,000 for fiscal year 2002. 
Such sums shall remain available until September 30, 2003.''.

SEC. 473. DELTA REGIONAL DEVELOPMENT.

    Section 382M of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009aa-12) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) by inserting after subsection (a) the following:
    ``(b) Additional Authorization.--In addition to amounts authorized 
by subsection (a), there are authorized to be appropriated to the 
Authority to carry out this subtitle $200,000,000 for fiscal year 2002. 
Such sums shall remain available until September 30, 2003.''; and
            (3) in subsection (c) (as so redesignated) by striking 
        ``subsection (a)'' and inserting ``subsections (a) and (b)''.

         Subtitle H--Water Resources Infrastructure Investment

SEC. 481. INCREASED FUNDING FOR CORPS OF ENGINEERS PROJECTS.

    (a) Authorization of Appropriations.--In addition to other amounts 
authorized to be appropriated, there are authorized to be appropriated 
to the Secretary of the Army $1,200,000,000 for fiscal year 2002 to 
carry out construction, operation, and maintenance activities for 
authorized civil functions under the supervision of the Chief of 
Engineers. Such sums shall remain available until September 30, 2003.
    (b) Allocation of Amounts for Security Purposes.--Of the amounts 
appropriated pursuant to subsection (a), not less than $263,000,000 
shall be available for security purposes at critical infrastructure, as 
identified by the Secretary of the Army.

         Subtitle I--Public Buildings Infrastructure Investment

SEC. 491. SECURITY ENHANCEMENTS FOR GSA PROPERTIES.

    (a) Authorization of Appropriations.--In addition to other amounts 
credited to the Federal Buildings Fund established pursuant to section 
210(f) of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 490(f)), there is authorized to be appropriated $500,000,000 
for fiscal year 2002 to be credited to the Fund. Such sums shall remain 
available until September 30, 2003.
    (b) Use of Funds.--Amounts credited to the Fund under this section 
shall be available to the Administrator of General Services to carry 
out projects and activities for enhancing the security of properties 
under the control of the General Services Administration, including 
general purpose office space, courthouses, and border crossing 
stations, and for other repair and alteration purposes.

SEC. 492. SECURITY ENHANCEMENTS FOR JOHN F. KENNEDY CENTER.

    Section 12 of the John F. Kennedy Center Act (20 U.S.C. 76r) is 
amended by adding at the end the following:
    ``(d) Additional Authorization.--In addition to the amounts 
authorized under subsections (a) and (b), there is authorized to be 
appropriated to the Board $50,000,000 for fiscal year 2002 to carry out 
projects and activities for enhancing the security of the building and 
site of the John F. Kennedy Center for the Performing Arts and other 
projects and activities under subparagraphs (F), (G), and (H) of 
section 4(a)(1).''.

SEC. 493. SECURITY ENHANCEMENTS FOR SMITHSONIAN INSTITUTION.

    In addition to other amounts authorized to be appropriated, there 
is authorized to be appropriated to the Smithsonian Institution 
$50,000,000 for fiscal year 2002 to carry out projects and activities 
for enhancing the security of the buildings and grounds of the 
Smithsonian Institution and for other capital improvement or repair and 
alteration purposes.

                     Subtitle J--General Provisions

SEC. 495. PRIORITY CONSIDERATION FOR SECURITY PROJECTS.

    The head of a Federal department or agency may provide financial 
assistance with any increase in funds authorized or made available by, 
or with any increase in obligation authority made available by, this 
Act (including the amendments made by this Act) only if the recipient 
of such assistance certifies to the head of such department or agency 
that the recipient will give priority consideration to programs or 
projects that enhance security, to the extent that such programs or 
projects are immediately ready to be implemented.

SEC. 496. TEMPORARY WAIVER OF NON-FEDERAL SHARE.

    (a) In General.--Notwithstanding any other provision of law and 
subject to subsection (b), in providing financial assistance for a 
program or project with any increase in funds authorized or made 
available by, or with any increase in obligation authority made 
available by, this Act (including the amendments made by this Act 
(other than subtitle A of title I of this Act)), the head of a Federal 
department or agency, upon request of the recipient of such assistance, 
may increase the Federal share of the cost of the program or project to 
not to exceed 100 percent of such cost.
    (b) Repayments.--Before increasing the Federal share of the cost of 
a program or project under subsection (a), the head of a Federal 
department or agency shall enter into a legally binding agreement with 
the recipient of financial assistance for the program or project under 
which the recipient agrees to repay the United States for the increased 
Federal share of the program or project on or before September 30, 
2003.

SEC. 497. MAINTENANCE OF EFFORT.

    The head of a Federal department or agency may provide financial 
assistance for a program or project with any increase in funds 
authorized or made available by, or with any increase in obligation 
authority made available by, this Act (including the amendments made by 
this Act) for a fiscal year only if the recipient of such assistance 
certifies to the head of such department or agency that the aggregate 
expenditure of funds of the recipient, exclusive of Federal funds, for 
such program or project will be maintained at a level that does not 
fall below the average level of such expenditure for the preceding 2 
fiscal years of the recipient.

SEC. 498. LABOR STANDARDS.

    (a) Prevailing Wages.--The head of a Federal department or agency 
providing financial assistance with any increase in funds authorized or 
made available by, or with any increase in obligation authority made 
available by, this Act (including the amendments made by this Act) 
shall ensure that laborers and mechanics employed by contractors and 
subcontractors in construction work financed by such financial 
assistance will be paid wages not less than those prevailing on similar 
construction in the locality, as determined by the Secretary of Labor 
under the Act of March 3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 
276a et seq.). The head of the department or agency shall provide such 
financial assistance only after being assured that required labor 
standards will be maintained on the construction work.
    (b) Wage Rates.--Wage rates in a collective bargaining agreement 
negotiated under the Railway Labor Act (45 U.S.C. 151 et seq.) are 
deemed for purposes of this section to comply with the Act of March 3, 
1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.).

SEC. 499. BUY AMERICA.

    (a) Preference.--The head of a Federal department or agency may 
provide financial assistance for a project with any increase in funds 
authorized or made available by, or with any increase in obligation 
authority made available by, this title (including the amendments made 
by this title) only if steel and manufactured goods used in the project 
are produced in the United States.
    (b) Waiver.--The head of a Federal department or agency may waive 
subsection (a) if the head of the Federal department or agency finds 
that--
            (1) applying subsection (a) would be inconsistent with the 
        public interest;
            (2) the steel and goods produced in the United States are 
        not produced in a sufficient and reasonably available amount or 
        are not of a satisfactory quality;
            (3) when procuring a facility or equipment with any 
        increase in funds or obligation authority described in 
        subsection (a)--
                    (A) the cost of components and subcomponents 
                produced in the United States is more than 60 percent 
                of the cost of all components of the facility or 
                equipment; and
                    (B) final assembly of the facility or equipment has 
                occurred in the United States; or
            (4) including domestic material will increase the cost of 
        the overall project by more than 25 percent.
    (c) Labor Costs.--In this section, labor costs involved in final 
assembly are not included in calculating the cost of components.

       TITLE V--ELEMENTARY AND SECONDARY EDUCATION INFRASTRUCTURE

SEC. 501. ELEMENTARY AND SECONDARY EDUCATION INFRASTRUCTURE.

    (a) In General.--The Secretary of Education shall provide 
$5,000,000,000 in grants to the State and outlying area entities 
responsible for the financing of education facilities (hereinafter in 
this section referred to as the ``State entity''), on the basis of the 
same percentage as the State educational agency received of the funds 
allocated to States and outlying areas through the Department of 
Education Appropriations Act, 2002 for carrying out part A, title I of 
the Elementary and Secondary Education Act of 1965, for awarding grants 
in accordance with subsection (b) to local educational agencies to 
enable them to make urgent repairs and renovations to public school 
facilities.
    (b) Grants.--
            (1) In general.--A State entity shall award urgent school 
        renovation grants to local educational agencies under this 
        section on a competitive basis that includes consideration of 
        each local educational agency applicant's--
                    (A) relative percentage of children from low-income 
                families;
                    (B) need for school repairs and renovations;
                    (C) fiscal capacity; and
                    (D) plans to maintain the facilities repaired or 
                renovated under the grant.
            (2) Federal share.--The Federal share of the cost of each 
        project assisted by funds made available under this section 
        shall be determined based on the percentage of the local 
        educational agency's attendance that is comprised of children 5 
        to 17 years of age, inclusive, who are from families with 
        incomes below the poverty line (as defined by the Office of 
        Management and Budget and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)) applicable to a family of the size involved for 
        the most recent fiscal year for which data satisfactory to the 
        Secretary are available:

        If the percentage is:
                                                  The federal share is:
                At least 40%.........................             100% 
                At least 30% but less than 40%.......              90% 
                At least 20% but less than 30%.......              80% 
                At least 10% but less than 20%.......              70% 
                Less than 10%........................              60%.
            (3) Excess allocations.--If, after providing an opportunity 
        to the public and all local educational agencies in the State 
        to comment, consistent with any applicable State and local law 
        specifying how the comments may be received and how the 
        comments may be reviewed by any member of the public, the State 
        entity demonstrates that the amount of the State's allocation 
        exceeds the amount needed to address the needs of the local 
        educational agencies in the State for school repair and 
        renovation under this section--
                    (A) the State entity shall transfer any excess 
                portion of that allocation to the State educational 
                agency; and
                    (B) the State educational agency shall allocate 100 
                percent of those excess funds received under subsection 
                (a) in accordance with section 5312 of the Elementary 
                and Secondary Education Act of 1965 as amended by 
                Public Law 107-110 for activities authorized under 
                section 5331 of the Elementary and Secondary Education 
                Act of 1965 as amended by Public Law 107-110 to be 
                determined by each such local educational agency as 
                part of a local strategy for improving academic 
                achievement.
    (c) Funds for School Renovations.--
            (1) In general.--If a local educational agency uses funds 
        for urgent school renovation, then the following provisions 
        shall apply:
                    (A) Urgent school renovation shall be limited to 
                one or more of the following:
                            (i) Emergency renovations or repairs to the 
                        school facilities only to ensure the health and 
                        safety of students and staff.
                            (ii) School facilities modifications 
                        necessary to render school facilities 
                        accessible in order to comply with the 
                        Americans With Disabilities Act.
                            (iii) School facilities modifications 
                        necessary to render school facilities 
                        accessible in order to comply with section 504 
                        of the Rehabilitation Act.
                            (iv) Upgrades to existing technology.
                            (v) Asbestos abatement or removal from 
                        school facilities.
                            (vi) Security upgrades.
            (2) Limitations.--No funds received under this section for 
        urgent school renovation may be used for--
                    (A) payment of maintenance costs in connection with 
                any projects constructed in whole or part with Federal 
                funds provided under this section; or
                    (B) stadiums or other facilities primarily used for 
                athletic contests or exhibitions or other events for 
                which admission is charged to the general public.

SEC. 502. LABOR STANDARDS.

    The Secretary of Education shall ensure that laborers and mechanics 
employed by contractors and subcontractors in construction work 
financed by this title will be paid wages not less than those 
prevailing on similar construction in the locality, as determined by 
the Secretary of Labor under the Act of March 3, 1931 (known as the 
Davis-Bacon Act; 40 U.S.C. 276a et seq.).

                       TITLE VI--REVENUE OFFSETS

SEC. 601. TOP INDIVIDUAL INCOME TAX MARGINAL RATE NOT REDUCED BELOW 
              2003 LEVEL.

    (a) In General.--The table contained in paragraph (2) of section 
1(i) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``37.6%'' and inserting ``38.6%'', and
            (2) by striking ``35.0%'' and inserting ``38.6%''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.

SEC. 602. REINSTATEMENT OF ESTATE TAX FOR ESTATE OVER $5,000,000; 
              REPEAL OF CARRYOVER BASIS.

    (a) Reinstatement of Estate Tax.--
            (1) In general.--Subtitles A and E of title V of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001, and 
        the amendments made by such subtitles, are hereby repealed; and 
        the Internal Revenue Code of 1986 shall be applied as if such 
        subtitles, and amendments, had never been enacted.
            (2) Sunset not to apply.--
                    (A) Subsection (a) of section 901 of the Economic 
                Growth and Tax Relief Reconciliation Act of 2001 is 
                amended by striking ``this Act'' and all that follows 
                and inserting ``this Act (other than title V) shall not 
                apply to taxable, plan, or limitation years beginning 
                after December 31, 2010.''.
                    (B) Subsection (b) of such section 901 is amended 
                by striking ``, estates, gifts, and transfers''.
            (3) Conforming amendments.--Subsections (d) and (e) of 
        section 511 of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001, and the amendments made by such 
        subsections, are hereby repealed; and the Internal Revenue Code 
        of 1986 shall be applied as if such subsections, and 
        amendments, had never been enacted.
    (b) Increase in Exclusion Equivalent of Unified Credit to 
$5,000,000.--Subsection (c) of section 2010 of the Internal Revenue 
Code of 1986 (relating to applicable credit amount) is amended by 
striking all that follows ``the applicable exclusion amount'' and 
inserting ``. For purposes of the preceding sentence, the applicable 
exclusion amount is $5,000,000.''.
    (c) Maximum Estate Tax Rate To Remain at 2003 Level.--
            (1) In general.--The table contained in paragraph (1) of 
        section 2001(c) of such Code is amended by striking the 2 
        highest brackets and inserting a new bracket to read as 
        follows:

    ``Over $2,000,000..............
                                        $780,000, plus 49% of the 
                                                excess over 
                                                $2,000,000.''.
            (2) Conforming amendment.--Paragraph (2) of section 2001(c) 
        of such Code is hereby repealed.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
2003.
                                 <all>
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