I 

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.

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

3 SECTION 1. SHORT TITLE. 

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

5 ‘‘Emergency Anti-Recession Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—
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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 
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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.
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1 TITLE I—ASSISTANCE TO THE 

2 UNEMPLOYED 

3 SEC. 101. ENTITLEMENT TO ADDITIONAL WEEKS OF TEM4 PORARY EXTENDED UNEMPLOYMENT COM5 PENSATION. 

6 (a) IN GENERAL.—Paragraph (1) of section 203(b) 

7 of the Temporary Extended Unemployment Compensation 

8 Act of 2002 (26 U.S.C. 3304 note) is amended—

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

10 inserting ‘‘100’’; and 

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

12 inserting ‘‘26’’. 

13 (b) PROGRAM EXTENSION.—Paragraph (3) of section 

14 208(b) of such Act is amended by striking ‘‘August 30’’ 

15 and inserting ‘‘November 29’’. 

16 (c) CONFORMING AMENDMENT.—Paragraph (1) of 

17 section 203(c) of such Act is amended by inserting ‘‘50 

18 percent of’’ before ‘‘the amount originally established in 

19 such account’’. 

20 SEC. 102. EFFECTIVE DATE. 

21 (a) IN GENERAL.—The amendments made by this 

22 title—

23 (1) shall take effect as if included in the enact24 ment of Public Law 107–147; but 
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1 (2) shall apply only with respect to weeks of un2 employment beginning on or after the date of enact3 ment this Act, subject to subsection (b). 

4 (b) SPECIAL RULES.—In the case of an individual for 

5 whom a temporary extended unemployment account was 

6 established before the date of enactment of this Act, the 

7 Temporary Extended Unemployment Compensation Act of 

8 2002 (as amended by this title) shall be applied subject 

9 to the following: 

10 (1) Any amounts deposited in the individual’s 

11 temporary extended unemployment compensation ac12 count by reason of section 203(c) of such Act (com13 monly known as ‘‘TEUC–X amounts’’) before the 

14 date of enactment of this Act shall be treated as 

15 amounts deposited by reason of section 203(b) of 

16 such Act (commonly known as ‘‘TEUC amounts’’), 

17 as amended by section 101(a). 

18 (2) For purposes of determining whether the in19 dividual is eligible for any TEUC–X amounts under 

20 such Act, as amended by this title—

21 (A) any determination made under section 

22 203(c) of such Act before the application of the 

23 amendments made by this title shall be dis24 regarded; and 
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1 (B) any such determination shall instead 

2 be made by applying section 203(c) of such Act, 

3 as amended by this title—

4 (i) as of the time that all amounts es5 tablished in such account in accordance 

6 with section 203(b) of such Act (as amend7 ed by this title, and including any amounts 

8 described in paragraph (1)) are in fact ex9 hausted, except that 

10 (ii) if such individual’s account was 

11 both augmented by and exhausted of all 

12 TEUC–X amounts before the date of en13 actment of this Act, such determination 

14 shall be made as if exhaustion (as de15 scribed in section 203(c)(1) of such Act) 

16 had not occurred until such date of enact17 ment. 

18 TITLE II—PAYROLL TAX RELIEF 

19 SEC. 201. PAYROLL TAX HOLIDAY. 

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law, the rate of tax with respect to the first 

22 $10,000 of remuneration received during the payroll tax 

23 holiday period shall be zero under sections 1401(a), 

24 3101(a), and 3111(a) of the Internal Revenue Code of 

25 1986 and for purposes of determining the applicable per-
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1 centage under section 3201(a), 3211(a)(1), and 3221(a) 

2 of such Code. 

3 (b) PAYROLL TAX HOLIDAY PERIOD.—The term 

4 ‘‘payroll tax holiday period’’ means the 1-year period be5 ginning on the 1st day of the 1st calendar month which 

6 begins more than 30 days after the date of the enactment 

7 of this Act. 

8 (c) EMPLOYER NOTIFICATION.—The Secretary of the 

9 Treasury shall notify employers of the payroll tax holiday 

10 period in any manner the Secretary deems appropriate. 

11 (d) TRANSFER OF FUNDS.—The Secretary of the 

12 Treasury shall transfer from the general revenues of the 

13 Federal Government an amount sufficient so as to ensure 

14 that the income and balances of the trust funds under sec15 tion 201 of the Social Security Act and the Social Security 

16 Equivalent Benefit Account under section 15A of the Rail17 road Retirement Act of 1974 (45 U.S.C. 231n–1) are not 

18 reduced as a result of the application of subsection (a). 

19 (e) DETERMINATION OF BENEFITS.—In making any 

20 determination of benefits under title II of the Social Secu21 rity Act, the Commissioner of Social Security shall dis22 regard the effect of the payroll tax holiday period on any 

23 individual’s earnings record. 
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1 TITLE III—FISCAL ASSISTANCE 

2 FOR STATE AND LOCAL GOV3 ERNMENTS 

4 SEC. 301. FINDINGS. 

5 The Congress finds that: 

6 (1) State and local governments represent a 

7 significant segment of the national economy whose 

8 economic health is essential to national economic 

9 prosperity; 

10 (2) present national economic problems have 

11 imposed considerable hardships on State and local 

12 government budgets; 

13 (3) those governments, because of their own fis14 cal difficulties, are being forced to take budget-re15 lated actions which tend to undermine Federal gov16 ernment efforts to stimulate the economy; 

17 (4) efforts to stimulate the economy through re18 ductions in Federal government tax obligations or 

19 increased spending on federal programs are weak20 ened when State and local governments are forced to 

21 increase taxes or cut spending; 

22 (5) efforts by the Federal government to stimu23 late the economic recovery will be substantially en24 hanced by a program of emergency Federal govern25 ment assistance to State and local governments to 
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1 help prevent those governments from taking budget2 related actions which undermine the Federal govern3 ment efforts to stimulate economic recovery. 

4 SEC. 302. FINANCIAL ASSISTANCE AUTHORIZED. 

5 (a) PAYMENTS TO STATE AND LOCAL GOVERN6 MENTS.—The Secretary of the Treasury shall, in accord7 ance with the provisions in this title, make payments to 

8 states to coordinate budget related actions by such govern9 ments with federal government efforts to stimulate eco10 nomic recovery. 

11 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated $50,000,000,000 to be 

13 made available through fiscal year 2004 for the purpose 

14 of payments under this title. 

15 (c) RESERVATIONS.—Not less than one-third of the 

16 money authorized to be appropriated under section 302(b) 

17 shall be made available to local governments under the ap18 plicable laws of a given State. 

19 SEC. 303. ALLOCATION. 

20 The Secretary of the Treasury shall establish a for21 mula for determining each State’s allocation under section 

22 302(b). The formula shall give priority weight to the fol23 lowing factors: 

24 (1) The State unemployment rate in relation to 

25 the national average unemployment rate.
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1 (2) The duration of a State unemployment rate 

2 above such average. 

3 (3) Median income. 

4 (4) Population. 

5 SEC. 304. USE OF FUNDS BY STATE AND LOCAL GOVERN6 MENTS. 

7 (a) IN GENERAL.—Funds received under this title 

8 may be used only for priority expenditures. For purposes 

9 of this title, the term ‘‘priority expenditures’’ means 

10 only—

11 (1) ordinary and necessary maintenance and 

12 operating expenses for—

13 (A) primary, secondary, or higher edu14 cation, 

15 (B) worker retraining, 

16 (C) public safety, 

17 (D) public health, 

18 (E) social services for the poor or aged, 

19 (F) public transportation, 

20 (G) environmental protection, and 

21 (H) libraries; and 

22 (2) ordinary and necessary capital expenditures 

23 authorized by law. 

24 (b) CERTIFICATES BY STATE AND LOCAL GOVERN25 MENTS.—The Secretary is authorized to accept a certifi-
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1 cation by the chief executive officer of a State or local gov2 ernment that the State or local government has used the 

3 funds received by it under this subtitle for an entitlement 

4 period only for priority expenditures, unless the Secretary 

5 determines that such certification is not sufficiently reli6 able to enable the Secretary to carry out his or her duties 

7 under this title. The Secretary shall prescribe by rule the 

8 time and manner in which the certification must be filed. 

9 TITLE IV—TRANSPORTATION 

10 AND WATER INFRASTRUC11 TURE INVESTMENT 

12 Subtitle A—Rail Infrastructure 

13 Investment 

14 PART I—CREDIT FOR AMTRAK BONDS 

15 SEC. 401. CREDIT TO HOLDERS OF QUALIFIED AMTRAK 

16 BONDS. 

17 (a) IN GENERAL.—Part IV of subchapter A of chap18 ter 1 of the Internal Revenue Code of 1986 (relating to 

19 credits against tax) is amended by adding at the end the 

20 following new subpart: 

21 ‘‘Subpart H—Nonrefundable Credit for Holders of 

22 Qualified Amtrak Bonds

‘‘Sec. 54. Credit to holders of qualified Amtrak bonds.
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1 ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK 

2 BONDS. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax4 payer who holds a qualified Amtrak bond on a credit al5 lowance date of such bond which occurs during the taxable 

6 year, there shall be allowed as a credit against the tax 

7 imposed by this chapter for such taxable year an amount 

8 equal to the sum of the credits determined under sub9 section (b) with respect to credit allowance dates during 

10 such year on which the taxpayer holds such bond. 

11 ‘‘(b) AMOUNT OF CREDIT.—

12 ‘‘(1) IN GENERAL.—The amount of the credit 

13 determined under this subsection with respect to any 

14 credit allowance date for a qualified Amtrak bond is 

15 25 percent of the annual credit determined with re16 spect to such bond. 

17 ‘‘(2) ANNUAL CREDIT.—The annual credit de18 termined with respect to any qualified Amtrak bond 

19 is the product of—

20 ‘‘(A) the applicable credit rate, multiplied 

21 by 

22 ‘‘(B) the outstanding face amount of the 

23 bond. 

24 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes 

25 of paragraph (2), the applicable credit rate with re26 spect to an issue is the rate equal to an average 
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1 market yield (as of the day before the date of sale 

2 of the issue) on outstanding long-term corporate 

3 debt obligations (determined under regulations pre4 scribed by the Secretary). 

5 ‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 

6 of this section, the term ‘credit allowance date’ 

7 means—

8 ‘‘(A) March 15, 

9 ‘‘(B) June 15, 

10 ‘‘(C) September 15, and 

11 ‘‘(D) December 15. 

12 Such term includes the last day on which the bond 

13 is outstanding. 

14 ‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE15 DEMPTION.—In the case of a bond which is issued 

16 during the 3-month period ending on a credit allow17 ance date, the amount of the credit determined 

18 under this subsection with respect to such credit al19 lowance date shall be a ratable portion of the credit 

20 otherwise determined based on the portion of the 3-

21 month period during which the bond is outstanding. 

22 A similar rule shall apply when the bond is re23 deemed. 

24 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
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1 ‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year shall not exceed 

3 the excess of—

4 ‘‘(A) the sum of the regular tax liability 

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

7 ‘‘(B) the sum of the credits allowable 

8 under this part (other than this subpart and 

9 subpart C). 

10 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

11 credit allowable under subsection (a) exceeds the 

12 limitation imposed by paragraph (1) for such taxable 

13 year, such excess shall be carried to the succeeding 

14 taxable year and added to the credit allowable under 

15 subsection (a) for such taxable year. 

16 ‘‘(d) CREDIT INCLUDED IN GROSS INCOME.—Gross 

17 income includes the amount of the credit allowed to the 

18 taxpayer under this section (determined without regard to 

19 subsection (c)) and the amount so included shall be treat20 ed as interest income. 

21 ‘‘(e) QUALIFIED AMTRAK BOND.—For purposes of 

22 this part, the term ‘qualified Amtrak bond’ means any 

23 bond issued as part of an issue if—

24 ‘‘(1) 95 percent or more of the proceeds from 

25 the sale of such issue are to be used for expenditures
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1 incurred after the date of the enactment of this sec2 tion for any qualified project, 

3 ‘‘(2) the bond is issued by the National Rail4 road Passenger Corporation, is in registered form, 

5 and meets the bond limitation requirements under 

6 subsection (f), 

7 ‘‘(3) the issuer designates such bond for pur8 poses of this section, 

9 ‘‘(4) the issuer certifies that it meets the State 

10 contribution requirement of subsection (k) with re11 spect to such project, as in effect on the date of the 

12 enactment of this section, 

13 ‘‘(5) the issuer certifies that it has obtained the 

14 written approval of the Secretary of Transportation 

15 for such project in accordance with section 26301 of 

16 title 49, United States Code, as in effect on the date 

17 of the enactment of this section, 

18 ‘‘(6) the term of each bond which is part of 

19 such issue does not exceed 20 years, 

20 ‘‘(7) the payment of principal with respect to 

21 such bond is the obligation of the National Railroad 

22 Passenger Corporation, and 

23 ‘‘(8) the issue meets the requirements of sub24 section (g) (relating to arbitrage). 
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1 ‘‘(f) LIMITATIONS ON AMOUNT OF BONDS DES2 IGNATED.—

3 ‘‘(1) IN GENERAL.—There is a qualified Am4 trak bond limitation for each fiscal year. Such limi5 tation is—

6 ‘‘(A) $1,500,000,000 for each of the fiscal 

7 years 2002 through 2011, and 

8 ‘‘(B) zero after fiscal year 2011. 

9 ‘‘(2) LIMITS ON BONDS FOR NORTHEAST RAIL

10 CORRIDOR AND INDIVIDUAL STATES.—

11 ‘‘(A) NORTHEAST RAIL CORRIDOR.—Not 

12 more than $3,000,000,000 of the limitation 

13 under paragraph (1) may be designated for 

14 qualified projects on the northeast rail corridor 

15 between Washington, D.C., and Boston, Massa16 chusetts. 

17 ‘‘(B) INDIVIDUAL STATES.—Not more 

18 than $3,000,000,000 of the limitation under 

19 paragraph (1) may be designated for any indi20 vidual State. The dollar limitation under this 

21 subparagraph is in addition to the dollar limita22 tion for the qualified projects described in sub23 paragraph (A). 

24 ‘‘(3) LIMIT ON BONDS FOR OTHER

25 PROJECTS.—Not more than $100,000,000 of the 
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1 limitation under paragraph (1) for any fiscal year 

2 may be designated for all qualified projects described 

3 in subsection (j)(1)(C). 

4 ‘‘(4) CARRYOVER OF UNUSED LIMITATION.—If 

5 for any fiscal year—

6 ‘‘(A) the limitation amount under para7 graph (1), exceeds 

8 ‘‘(B) the amount of bonds issued during 

9 such year which are designated under sub10 section (e)(3), 

11 the limitation amount under paragraph (1) for the 

12 following fiscal year (through fiscal year 2015) shall 

13 be increased by the amount of such excess. 

14 ‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—

15 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

16 an issue shall be treated as meeting the require17 ments of this subsection if as of the date of 

18 issuance, the issuer reasonably expects—

19 ‘‘(A) to spend at least 95 percent of the 

20 proceeds from the sale of the issue for 1 or 

21 more qualified projects within the 3-year period 

22 beginning on such date, 

23 ‘‘(B) to incur a binding commitment with 

24 a third party to spend at least 10 percent of the 

25 proceeds from the sale of the issue, or to com-
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1 mence construction, with respect to such 

2 projects within the 6-month period beginning on 

3 such date, and 

4 ‘‘(C) to proceed with due diligence to com5 plete such projects and to spend the proceeds 

6 from the sale of the issue. 

7 ‘‘(2) RULES REGARDING CONTINUING COMPLI8 ANCE AFTER 3-YEAR DETERMINATION.—If at least 

9 95 percent of the proceeds from the sale of the issue 

10 is not expended for 1 or more qualified projects 

11 within the 3-year period beginning on the date of 

12 issuance, but the requirements of paragraph (1) are 

13 otherwise met, an issue shall be treated as con14 tinuing to meet the requirements of this subsection 

15 if either—

16 ‘‘(A) the issuer uses all unspent proceeds 

17 from the sale of the issue to redeem bonds of 

18 the issue within 90 days after the end of such 

19 3-year period, or 

20 ‘‘(B) the following requirements are met: 

21 ‘‘(i) The issuer spends at least 75 per22 cent of the proceeds from the sale of the 

23 issue for 1 or more qualified projects with24 in the 3-year period beginning on the date 

25 of issuance.
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1 ‘‘(ii) Either—

2 ‘‘(I) the issuer spends at least 95 

3 percent of the proceeds from the sale 

4 of the issue for 1 or more qualified 

5 projects within the 4-year period be6 ginning on the date of issuance, or 

7 ‘‘(II) the issuer pays to the Fed8 eral Government any earnings on the 

9 proceeds from the sale of the issue 

10 that accrue after the end of the 3-year 

11 period beginning on the date of 

12 issuance and uses all unspent pro13 ceeds from the sale of the issue to re14 deem bonds of the issue within 90 

15 days after the end of the 4-year pe16 riod beginning on the date of 

17 issuance. 

18 ‘‘(h) RECAPTURE OF PORTION OF CREDIT WHERE

19 CESSATION OF COMPLIANCE.—

20 ‘‘(1) IN GENERAL.—If any bond which when 

21 issued purported to be a qualified Amtrak bond 

22 ceases to be such a qualified bond, the issuer shall 

23 pay to the United States (at the time required by 

24 the Secretary) an amount equal to the sum of—
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1 ‘‘(A) the aggregate of the credits allowable 

2 under this section with respect to such bond 

3 (determined without regard to subsection (c)) 

4 for taxable years ending during the calendar 

5 year in which such cessation occurs and the 2 

6 preceding calendar years, and 

7 ‘‘(B) interest at the underpayment rate 

8 under section 6621 on the amount determined 

9 under subparagraph (A) for each calendar year 

10 for the period beginning on the first day of 

11 such calendar year. 

12 ‘‘(2) FAILURE TO PAY.—If the issuer fails to 

13 timely pay the amount required by paragraph (1) 

14 with respect to such bond, the tax imposed by this 

15 chapter on each holder of any such bond which is 

16 part of such issue shall be increased (for the taxable 

17 year of the holder in which such cessation occurs) by 

18 the aggregate decrease in the credits allowed under 

19 this section to such holder for taxable years begin20 ning in such 3 calendar years which would have re21 sulted solely from denying any credit under this sec22 tion with respect to such issue for such taxable 

23 years. 

24 ‘‘(3) SPECIAL RULES.—
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1 ‘‘(A) TAX BENEFIT RULE.—The tax for 

2 the taxable year shall be increased under para3 graph (2) only with respect to credits allowed 

4 by reason of this section which were used to re5 duce tax liability. In the case of credits not so 

6 used to reduce tax liability, the carryforwards 

7 and carrybacks under section 39 shall be appro8 priately adjusted. 

9 ‘‘(B) NO CREDITS AGAINST TAX.—Any in10 crease in tax under paragraph (2) shall not be 

11 treated as a tax imposed by this chapter for 

12 purposes of determining—

13 ‘‘(i) the amount of any credit allow14 able under this part, or 

15 ‘‘(ii) the amount of the tax imposed 

16 by section 55. 

17 ‘‘(i) TRUST ACCOUNT.—

18 ‘‘(1) IN GENERAL.—The following amounts 

19 shall be held in a trust account by a trustee inde20 pendent of the National Railroad Passenger Cor21 poration: 

22 ‘‘(A) The proceeds from the sale of all 

23 bonds designated for purposes of this section. 

24 ‘‘(B) The amount of any matching con25 tributions with respect to such bonds. 
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1 ‘‘(C) The temporary period investment 

2 earnings on proceeds from the sale of such 

3 bonds. 

4 ‘‘(D) Any earnings on any amounts de5 scribed in subparagraph (A), (B), or (C). 

6 ‘‘(2) USE OF FUNDS.—Amounts in the trust ac7 count may be used only to pay costs of qualified 

8 projects and redeem qualified Amtrak bonds, except 

9 that amounts withdrawn from the trust account to 

10 pay costs of qualified projects may not exceed the 

11 aggregate proceeds from the sale of all qualified Am12 trak bonds issued under this section. 

13 ‘‘(3) USE OF REMAINING FUNDS IN TRUST AC14 COUNT.—Upon the redemption of all qualified Am15 trak bonds issued under this section, any remaining 

16 amounts in the trust account described in paragraph 

17 (1) shall be available to the issuer for any qualified 

18 project. 

19 ‘‘(j) QUALIFIED PROJECT.—For purposes of this sec20 tion—

21 ‘‘(1) IN GENERAL.—The term ‘qualified project’ 

22 means—

23 ‘‘(A) the acquisition, financing, or refi24 nancing of equipment, rolling stock, and other 

25 capital improvements (including the introduc-
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1 tion of new high-speed technologies such as 

2 magnetic levitation systems), including track or 

3 signal improvements or the elimination of grade 

4 crossings, for the northeast rail corridor be5 tween Washington, D.C., and Boston, Massa6 chusetts, 

7 ‘‘(B) the acquisition, financing, or refi8 nancing of equipment, rolling stock, and other 

9 capital improvements (including the introduc10 tion of new high-speed technologies such as 

11 magnetic levitation systems), including develop12 ment of intermodal facilities, track or signal im13 provements, or the elimination of grade cross14 ings, for the improvement of train speeds or 

15 safety (or both) on the high-speed rail corridors 

16 designated under section 104(d)(2) of title 23, 

17 United States Code, as in effect on the date of 

18 the enactment of this section, and 

19 ‘‘(C) the acquisition, financing, or refi20 nancing of equipment, rolling stock, and other 

21 capital improvements, including station rehabili22 tation or construction, development of inter23 modal facilities, track or signal improvements, 

24 or the elimination of grade crossings, for the 

25 improvement of train speeds or safety (or both) 
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1 for other intercity passenger rail corridors and 

2 for the Alaska Railroad.

3 ‘‘(2) REFINANCING RULES.—For purposes of 

4 paragraph (1), a refinancing shall constitute a quali5 fied project only if the indebtedness being refinanced 

6 (including any obligation directly or indirectly refi7 nanced by such indebtedness) was originally incurred 

8 by the issuer—

9 ‘‘(A) after the date of the enactment of 

10 this section, 

11 ‘‘(B) for a term of not more than 3 years, 

12 ‘‘(C) to finance or acquire capital improve13 ments described in paragraph (1), and 

14 ‘‘(D) in anticipation of being refinanced 

15 with proceeds of a qualified Amtrak bond. 

16 ‘‘(k) STATE CONTRIBUTION REQUIREMENTS.—

17 ‘‘(1) IN GENERAL.—For purposes of subsection 

18 (e)(4), the State contribution requirement of this 

19 subsection is met with respect to any qualified 

20 project if the National Railroad Passenger Corpora21 tion has received from 1 or more States, not later 

22 than the date of issuance of the bond, matching con23 tributions of not less than 20 percent of the cost of 

24 the qualified project.
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1 ‘‘(2) NO STATE CONTRIBUTION REQUIREMENT

2 FOR CERTAIN QUALIFIED PROJECTS.—The State 

3 contribution requirement of this subsection is zero 

4 with respect to the following projects: 

5 ‘‘(A) Any qualified project for the acquisi6 tion and installation of platform facilities, per7 formance of railroad force account work nec8 essary to complete improvements below street 

9 grade, and any other necessary improvements 

10 related to construction at the railroad station at 

11 the James A. Farley Post Office Building in 

12 New York City, New York. 

13 ‘‘(B) Any project described in subsection 

14 (j)(1)(C) for the Alaska Railroad. 

15 ‘‘(3) STATE MATCHING CONTRIBUTIONS MAY

16 NOT INCLUDE FEDERAL FUNDS.—For purposes of 

17 this subsection, State matching contributions shall 

18 not be derived, directly or indirectly, from Federal 

19 funds, including any transfers from the Highway 

20 Trust Fund under section 9503. 

21 ‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—

22 For purposes of this section—

23 ‘‘(1) BOND.—The term ‘bond’ includes any ob24 ligation. 
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1 ‘‘(2) TREATMENT OF CHANGES IN USE.—For 

2 purposes of subsection (e)(1), the proceeds from the 

3 sale of an issue shall not be treated as used for a 

4 qualified project to the extent that the issuer takes 

5 any action within its control which causes such pro6 ceeds not to be used for a qualified project. The Sec7 retary shall prescribe regulations specifying remedial 

8 actions that may be taken (including conditions to 

9 taking such remedial actions) to prevent an action 

10 described in the preceding sentence from causing a 

11 bond to fail to be a qualified Amtrak bond. 

12 ‘‘(3) PARTNERSHIP; S CORPORATION; AND

13 OTHER PASS-THRU ENTITIES.—Under regulations 

14 prescribed by the Secretary, in the case of a partner15 ship, trust, S corporation, or other pass-thru entity, 

16 rules similar to the rules of section 41(g) shall apply 

17 with respect to the credit allowable under subsection 

18 (a). 

19 ‘‘(4) BONDS HELD BY REGULATED INVEST20 MENT COMPANIES.—If any qualified Amtrak bond is 

21 held by a regulated investment company, the credit 

22 determined under subsection (a) shall be allowed to 

23 shareholders of such company under procedures pre24 scribed by the Secretary. 
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1 ‘‘(5) REPORTING.—Issuers of qualified Amtrak 

2 bonds shall submit reports similar to the reports re3 quired under section 149(e).’’. 

4 (b) AMENDMENTS TO OTHER CODE SECTIONS.—

5 (1) REPORTING.—Subsection (d) of section 

6 6049 of the Internal Revenue Code of 1986 (relating 

7 to returns regarding payments of interest) is amend8 ed by adding at the end the following new para9 graph: 

10 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED AM11 TRAK BONDS.—

12 ‘‘(A) IN GENERAL.—For purposes of sub13 section (a), the term ‘interest’ includes amounts 

14 includible in gross income under section 54(d) 

15 and such amounts shall be treated as paid on 

16 the credit allowance date (as defined in section 

17 54(b)(4)). 

18 ‘‘(B) REPORTING TO CORPORATIONS, 

19 ETC.—Except as otherwise provided in regula20 tions, in the case of any interest described in 

21 subparagraph (A), subsection (b)(4) shall be 

22 applied without regard to subparagraphs (A), 

23 (H), (I), (J), (K), and (L)(i) of such subsection. 

24 ‘‘(C) REGULATORY AUTHORITY.—The Sec25 retary may prescribe such regulations as are 
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1 necessary or appropriate to carry out the pur2 poses of this paragraph, including regulations 

3 which require more frequent or more detailed 

4 reporting.’’. 

5 (2) TREATMENT FOR ESTIMATED TAX PUR6 POSES.—

7 (A) INDIVIDUAL.—Section 6654 of such 

8 Code (relating to failure by individual to pay es9 timated income tax) is amended by redesig10 nating subsection (m) as subsection (n) and by 

11 inserting after subsection (l) the following new 

12 subsection: 

13 ‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED

14 AMTRAK BONDS.—For purposes of this section, the credit 

15 allowed by section 54 to a taxpayer by reason of holding 

16 a qualified Amtrak bond on a credit allowance date shall 

17 be treated as if it were a payment of estimated tax made 

18 by the taxpayer on such date.’’. 

19 (B) CORPORATE.—Section 6655 of such 

20 Code (relating to failure by corporation to pay 

21 estimated income tax) is amended by adding at 

22 the end of subsection (g) the following new 

23 paragraph: 

24 ‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI25 FIED AMTRAK BONDS.—For purposes of this section, 
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1 the credit allowed by section 54 to a taxpayer by 

2 reason of holding a qualified Amtrak bond on a 

3 credit allowance date shall be treated as if it were 

4 a payment of estimated tax made by the taxpayer on 

5 such date.’’. 

6 (3) EXCLUSION FROM GROSS INCOME OF CON7 TRIBUTIONS BY AMTRAK TO OTHER RAIL CAR8 RIERS.—

9 (A) IN GENERAL.—Section 118 of the In10 ternal Revenue Code of 1986 (relating to con11 tributions to the capital of a corporation) is 

12 amended by redesignating subsection (d) as 

13 subsection (e) and by inserting after subsection 

14 (c) the following new subsection: 

15 ‘‘(d) SPECIAL RULE FOR CONTRIBUTIONS BY AM16 TRAK TO OTHER RAIL CARRIERS.—For purposes of this 

17 section, the term ‘contribution to the capital of the tax18 payer’ does not include any contribution by the National 

19 Railroad Passenger Corporation of personal or real prop20 erty funded by the proceeds of qualified Amtrak bonds 

21 under section 54.’’. 

22 (B) CONFORMING AMENDMENT.—Sub23 section (b) of such section 118 is amended by 

24 striking ‘‘subsection (c)’’ and inserting ‘‘sub25 sections (c) and (d)’’.
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1 (4) PROTECTION OF HIGHWAY TRUST FUND.—

2 Section 9503 of such Code (relating to Highway 

3 Trust Fund) is amended by adding at the end the 

4 following new subsection: 

5 ‘‘(g) SPECIAL RULE RELATING TO NATIONAL RAIL6 ROAD PASSENGER CORPORATION.—Except as provided in 

7 subsection (c), as in effect on the date of the enactment 

8 of this subsection, amounts in the Highway Trust Fund 

9 may not be used to provide funds to the National Railroad 

10 Passenger Corporation for any purpose, including issuance 

11 of any qualified Amtrak bond pursuant to section 54. The 

12 preceding sentence may not be waived by any provision 

13 of law which is not contained or referenced in this title, 

14 whether such provision of law is a subsequently enacted 

15 provision or directly or indirectly seeks to waive the appli16 cation of such sentence.’’. 

17 (c) CLERICAL AMENDMENTS.—

18 (1) The table of subparts for part IV of sub19 chapter A of chapter 1 is amended by adding at the 

20 end the following new item:

‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak Bonds.’’.

21 (2) Section 6401(b)(1) is amended by striking 

22 ‘‘and G’’ and inserting ‘‘G, and H’’. 

23 (d) ANNUAL REPORT BY TREASURY ON AMTRAK

24 TRUST ACCOUNT.—The Secretary of the Treasury shall 
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1 annually report to Congress as to whether the amount de2 posited in the trust account established by the National 

3 Railroad Passenger Corporation under section 54(i) of the 

4 Internal Revenue Code of 1986, as added by this section, 

5 is sufficient to fully repay at maturity the principal of any 

6 outstanding qualified Amtrak bonds issued pursuant to 

7 section 54 of such Code (as so added), together with 

8 amounts expected to be deposited into such account, as 

9 certified by the National Railroad Passenger Corporation 

10 in accordance with procedures prescribed by the Secretary 

11 of the Treasury. 

12 (e) ISSUANCE OF REGULATIONS.—The Secretary of 

13 the Treasury shall issue regulations required under section 

14 54 of the Internal Revenue Code of 1986 (as added by 

15 this section) not later than 90 days after the date of the 

16 enactment of this Act. 

17 (f) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to obligations issued after the date 

19 of enactment of this Act. 

20 PART II—HIGH-SPEED RAIL PROVISIONS 

21 SEC. 403. DEPARTMENT OF TRANSPORTATION APPROVAL 

22 FOR QUALIFIED AMTRAK PROJECTS. 

23 (a) AMENDMENT.—Part D of subtitle V of title 49, 

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

25 following new chapter: 
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•HR 396 IH 

1 ‘‘CHAPTER 263—HIGH-SPEED RAIL 

2 INITIATIVES

‘‘Sec. 

‘‘26301. Department of Transportation approval for qualified high-speed rail 

projects. 

‘‘26302. Qualified projects. 

‘‘26303. State contribution requirements.’’.

3 ‘‘§ 26301. Department of Transportation approval for 

4 qualified high-speed rail projects 

5 ‘‘(a) IN GENERAL.—The written approval of a quali6 fied project by the Secretary of Transportation required 

7 for purposes of subsection (e)(5) of section 54 of the Inter8 nal Revenue Code of 1986 (relating to credit to holders 

9 of qualified Amtrak bonds) shall include—

10 ‘‘(1) the finding by the Inspector General of the 

11 Department of Transportation described in sub12 section (b); 

13 ‘‘(2) the certification by the Secretary of Trans14 portation described in subsection (c); and 

15 ‘‘(3) the agreement by the National Railroad 

16 Passenger Corporation described in subsection (d). 

17 ‘‘(b) FINDING BY INSPECTOR GENERAL.—For pur18 poses of subsection (a), the finding described in this sub19 section is a finding by the Inspector General of the De20 partment of Transportation that there is a reasonable like21 lihood that the proposed project will result in a positive 

22 financial contribution to the National Railroad Passenger 

23 Corporation and that the investment evaluation process 
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1 includes consideration of a return on investment, 

2 leveraging of funds (including State capital and operating 

3 contributions), cost effectiveness, safety improvement, mo4 bility improvement, and feasibility. 

5 ‘‘(c) CERTIFICATION.—For purposes of subsection 

6 (a), the certification described in this subsection is a cer7 tification by the Secretary of Transportation that the 

8 issuer of the qualified Amtrak bond—

9 ‘‘(1) except with respect to projects described in 

10 section 54(j)(1)(C) of the Internal Revenue Code of 

11 1986, has entered into a written agreement with the 

12 owners of rail properties which are to be improved 

13 by the project to be funded by the qualified Amtrak 

14 bond, as to the scope and estimated cost of such 

15 project and the impact on rail freight capacity; and

16 ‘‘(2) has met the State contribution require17 ments described in section 26303. 

18 The National Railroad Passenger Corporation shall not 

19 exercise its rights under section 24308(a)(2) to resolve 

20 disputes with respect to a project to be funded by a quali21 fied Amtrak bond, or with respect to the cost of such a 

22 project, unless the project is intended to result in railroad 

23 speeds of 79 miles per hour or less.

24 ‘‘(d) AGREEMENT BY AMTRAK TO ISSUE ADDI25 TIONAL BONDS FOR PROJECTS OF OTHER CARRIERS.—
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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a), the agreement described in this subsection is an 

3 agreement by the National Railroad Passenger Cor4 poration with the Secretary of Transportation to 

5 issue bonds which meet the requirements of section 

6 54 of the Internal Revenue Code of 1986 for use in 

7 financing projects described in paragraph (2). 

8 ‘‘(2) PROJECTS COVERED.—For purposes of 

9 paragraph (1), the projects described in this para10 graph are any project described in subsection 

11 (j)(1)(B) or (j)(1)(C) of section 54 of the Internal 

12 Revenue Code of 1986 for an intercity rail passenger 

13 carrier other than the National Railroad Passenger 

14 Corporation or for the Alaska Railroad. 

15 ‘‘(3) ADDITIONAL REQUIREMENTS.—Any 

16 project financed by bonds referred to in paragraph 

17 (1) shall be carried out by the intercity rail pas18 senger carrier other than the National Railroad Pas19 senger Corporation, through a contract entered into 

20 by the National Railroad Passenger Corporation 

21 with such carrier. Such other intercity rail passenger 

22 carrier, in carrying out the project, shall be subject 

23 to the provisions of this subtitle governing the Na24 tional Railroad Passenger Corporation.
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1 ‘‘(4) DEFINITION.—For purposes of this sub2 section, the term ‘intercity rail passenger carrier’ 

3 means any rail carrier (as such term is defined in 

4 section 24102(7)) that is part of the interstate sys5 tem of rail transportation and that provides intercity 

6 rail passenger transportation (as such term is de7 fined in section 24102(5)). 

8 ‘‘(e) ADDITIONAL SELECTION CRITERIA.—In deter9 mining projects to be approved under this section (other 

10 than projects for the Alaska Railroad), or to be included 

11 in an agreement under subsection (d), the Secretary of 

12 Transportation shall give preference to—

13 ‘‘(1) any project with a State matching con14 tribution rate exceeding 20 percent; 

15 ‘‘(2) projects expected to have a significant im16 pact on air traffic congestion; 

17 ‘‘(3) projects expected to also improve com18 muter rail operations; 

19 ‘‘(4) projects that anticipate fares designed to 

20 recover costs and generate a return on investment; 

21 and 

22 ‘‘(5) projects that promote regional balance in 

23 infrastructure investment and the national interest 

24 in ensuring the development of a nationwide high25 speed rail transportation network. 
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1 ‘‘§ 26302. Qualified projects 

2 ‘‘For purposes of this chapter—

3 ‘‘(1) IN GENERAL.—The term ‘qualified project’ 

4 means—

5 ‘‘(A) the acquisition, financing, or refi6 nancing of equipment, rolling stock, and other 

7 capital improvements (including the introduc8 tion of new high-speed technologies such as 

9 magnetic levitation systems), including track or 

10 signal improvements or the elimination of grade 

11 crossings, for the northeast rail corridor be12 tween Washington, D.C., and Boston, Massa13 chusetts;

14 ‘‘(B) the acquisition, financing, or refi15 nancing of equipment, rolling stock, and other 

16 capital improvements (including the introduc17 tion of new high-speed technologies such as 

18 magnetic levitation systems), including develop19 ment of intermodal facilities, track or signal im20 provements, or the elimination of grade cross21 ings, for the improvement of train speeds or 

22 safety (or both) on the high-speed rail corridors 

23 designated under section 104(d)(2) of title 23, 

24 United States Code, as in effect on the date of 

25 the enactment of this section; and 
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1 ‘‘(C) the acquisition, financing, or refi2 nancing of equipment, rolling stock, and other 

3 capital improvements, including station rehabili4 tation or construction, development of inter5 modal facilities, track or signal improvements, 

6 or the elimination of grade crossings, for the 

7 improvement of train speeds or safety (or both) 

8 for other intercity passenger rail corridors and 

9 for the Alaska Railroad. 

10 ‘‘(2) REFINANCING RULES.—For purposes of 

11 paragraph (1), a refinancing shall constitute a quali12 fied project only if the indebtedness being refinanced 

13 (including any obligation directly or indirectly refi14 nanced by such indebtedness) was originally incurred 

15 by the issuer—

16 ‘‘(A) after the date of the enactment of 

17 this section; 

18 ‘‘(B) for a term of not more than 3 years; 

19 ‘‘(C) to finance or acquire capital improve20 ments described in paragraph (1); and 

21 ‘‘(D) in anticipation of being refinanced 

22 with proceeds of a qualified Amtrak bond. 

23 ‘‘§ 26303. State contribution requirements 

24 ‘‘(a) IN GENERAL.—For purposes of section 

25 26301(c)(2), the State contribution requirement of this 
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1 section is met with respect to any qualified project if the 

2 National Railroad Passenger Corporation has received 

3 from 1 or more States, not later than the date of issuance 

4 of the bond, matching contributions of not less than 20 

5 percent of the cost of the qualified project. 

6 ‘‘(b) NO STATE CONTRIBUTION REQUIREMENT FOR

7 CERTAIN QUALIFIED PROJECTS.—The State contribution 

8 requirement of this section is zero with respect to the fol9 lowing projects: 

10 ‘‘(1) Any qualified project for the acquisition 

11 and installation of platform facilities, performance of 

12 railroad force account work necessary to complete 

13 improvements below street grade, and any other nec14 essary improvements related to construction at the 

15 railroad station at the James A. Farley Post Office 

16 Building in New York City, New York. 

17 ‘‘(2) Any project described in subsection 

18 (j)(1)(C) of section 54 of the Internal Revenue Code 

19 of 1986 for the Alaska Railroad. 

20 ‘‘(c) STATE MATCHING CONTRIBUTIONS MAY NOT

21 INCLUDE FEDERAL FUNDS.—For purposes of this sec22 tion, State matching contributions shall not be derived, di23 rectly or indirectly, from Federal funds, including any 

24 transfers from the Highway Trust Fund under section 

25 9503 of the Internal Revenue Code of 1986.’’. 
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1 (b) TABLE OF CHAPTERS AMENDMENT.—The table 

2 of chapters of subtitle V of title 49, United States Code, 

3 is amended by inserting after the item relating to chapter 

4 261 the following new item:

‘‘263. HIGH-SPEED RAIL INITIATIVES ........................................... 26301’’.

5 SEC. 404. MULTIYEAR CAPITAL SPENDING PLAN AND OVER6 SIGHT. 

7 (a) AMENDMENT.—Chapter 243 of title 49, United 

8 States Code, is amended by adding at the end the fol9 lowing new section: 

10 ‘‘§ 24316. Multiyear capital spending plan and over11 sight 

12 ‘‘(a) AMTRAK CAPITAL SPENDING PLAN.—

13 ‘‘(1) IN GENERAL.—The National Railroad 

14 Passenger Corporation shall annually submit to the 

15 President and Congress a multiyear capital spending 

16 plan, as approved by the Board of Directors of the 

17 Corporation. 

18 ‘‘(2) CONTENTS OF PLAN.—Such plan shall 

19 identify the capital investment needs of the Corpora20 tion over a period of not less than 5 years and the 

21 funding sources available to finance such needs and 

22 shall prioritize such needs according to corporate 

23 goals and strategies. 

24 ‘‘(3) INITIAL SUBMISSION DATE.—The first 

25 plan shall be submitted before the issuance of any 
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1 qualified Amtrak bonds by the National Railroad 

2 Passenger Corporation pursuant to section 54 of the 

3 Internal Revenue Code of 1986. 

4 ‘‘(b) OVERSIGHT OF QUALIFIED PROJECTS.—The 

5 Secretary of Transportation shall contract for an annual 

6 independent assessment of the costs and benefits of the 

7 qualified projects financed by qualified Amtrak bonds pur8 suant to section 54 of the Internal Revenue Code of 1986, 

9 including an assessment of the investment evaluation proc10 ess of the Corporation. The annual assessment shall be 

11 included in the plan submitted under subsection (a).’’. 

12 (b) TABLE OF SECTIONS AMENDMENT.—The table of 

13 sections of chapter 243 of title 49, United States Code, 

14 is amended by adding after the item relating to section 

15 24315 the following new item:

‘‘24316. Multiyear capital spending plan and oversight.’’.

16 SEC. 405. ISSUANCE OF REGULATIONS. 

17 The Secretary of Transportation shall issue regula18 tions for carrying out chapter 263 of title 49, United 

19 States Code (as added by section 111 of this Act), not 

20 later than 90 days after the date of the enactment of this 

21 Act. 

22 SEC. 406. SENSE OF CONGRESS REGARDING EFFECT ON 

23 AMTRAK FUNDING. 

24 It is the sense of the Congress that the proceeds of 

25 qualified Amtrak bonds issued under section 54 of the In-
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1 ternal Revenue Code of 1986 are intended to finance the 

2 construction of qualified projects (as defined in section 

3 26302 of title 49, United States Code, as added by section 

4 111 of this Act) and are not intended to meet the regular, 

5 ongoing capital funding needs of the National Railroad 

6 Passenger Corporation. 

7 SEC. 407. EFFECTIVE DATE. 

8 The amendments made by this part shall apply to ob9 ligations issued after the date of the enactment of this 

10 Act. 

11 PART III—AMTRAK CAPITAL INVESTMENT 

12 SEC. 411. AUTHORIZATION OF APPROPRIATIONS. 

13 Section 24104(a) of title 49, United States Code, is 

14 amended—

15 (1) by inserting ‘‘(1)’’ after ‘‘IN GENERAL.—’’; 

16 (2) by redesignating paragraphs (1) through 

17 (5) as subparagraphs (A) through (E), respectively; 

18 and 

19 (3) by adding at the end the following new 

20 paragraph: 

21 ‘‘(2) There are authorized to be appropriated to the 

22 Secretary of Transportation $3,000,000,000 for fiscal 

23 year 2002 for the benefit of Amtrak for capital expendi24 tures including—
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1 ‘‘(A) New York, Washington, D.C., and Balti2 more tunnel life safety projects; 

3 ‘‘(B) bridges, tracks, and other improvements 

4 to increase the capacity and reliability of rail pas5 senger transportation; and 

6 ‘‘(C) equipment, including acquisition of 

7 trainsets and rolling stock, for operation in federally 

8 designated corridors. 

At least 2 9 ⁄3 of amounts expended under subparagraph (C) 

10 shall be for operations outside the Northeast Corridor.’’. 

11 PART IV—CAPITAL INVESTMENT FOR RAILROAD 

12 REHABILITATION 

13 SEC. 416. CAPITAL GRANTS FOR RAILROAD TRACK. 

14 (a) AMENDMENT.—Chapter 223 of title 49, United 

15 States Code, is amended to read as follows: 

16 ‘‘CHAPTER 223—CAPITAL GRANTS FOR 

17 RAILROAD TRACK

‘‘Sec. 

‘‘22301. Capital grants for railroad track.

18 ‘‘§ 22301. Capital grants for railroad track 

19 ‘‘(a) ESTABLISHMENT OF PROGRAM.—

20 ‘‘(1) ESTABLISHMENT.—The Secretary of 

21 Transportation shall establish a program of capital 

22 grants for the rehabilitation, preservation, or im23 provement of railroad track (including roadbed, 

24 bridges, and related track structures) of class II and 
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1 class III railroads. Such grants shall be for rehabili2 tating, preserving, or improving track used primarily 

3 for freight transportation to a standard ensuring 

4 that the track can be operated safely and efficiently, 

5 including grants for rehabilitating, preserving, or im6 proving track to handle 286,000 pound rail cars. 

7 Grants may be provided under this chapter—

8 ‘‘(A) directly to the class II or class III 

9 railroad; or 

10 ‘‘(B) with the concurrence of the class II 

11 or class III railroad, to a State or local govern12 ment. 

13 ‘‘(2) STATE COOPERATION.—Class II and class 

14 III railroad applicants for a grant under this chap15 ter are encouraged to utilize the expertise and assist16 ance of State transportation agencies in applying for 

17 and administering such grants. State transportation 

18 agencies are encouraged to provide such expertise 

19 and assistance to such railroads.

20 ‘‘(3) INTERIM REGULATIONS.—Not later than 

21 December 31, 2001, the Secretary shall issue tem22 porary regulations to implement the program under 

23 this section. Subchapter II of chapter 5 of title 5 

24 does not apply to a temporary regulation issued 
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1 under this paragraph or to an amendment to such 

2 a temporary regulation. 

3 ‘‘(4) FINAL REGULATIONS.—Not later than Oc4 tober 1, 2002, the Secretary shall issue final regula5 tions to implement the program under this section. 

6 ‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum 

7 Federal share for carrying out a project under this section 

8 shall be 80 percent of the project cost. The non-Federal 

9 share may be provided by any non-Federal source in cash, 

10 equipment, or supplies. Other in-kind contributions may 

11 be approved by the Secretary on a case by case basis con12 sistent with this chapter. 

13 ‘‘(c) PROJECT ELIGIBILITY.—For a project to be eli14 gible for assistance under this section the track must have 

15 been operated or owned by a class II or class III railroad 

16 as of the date of the enactment of this section. 

17 ‘‘(d) USE OF FUNDS.—Grants provided under this 

18 section shall be used to implement track capital projects 

19 as soon as possible. In no event shall grant funds be con20 tractually obligated for a project later than the end of the 

21 third Federal fiscal year following the year in which the 

22 grant was awarded. Any funds not so obligated by the end 

23 of such fiscal year shall be returned to the Secretary for 

24 reallocation.
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1 ‘‘(e) ADDITIONAL PURPOSE.—In addition to making 

2 grants for projects as provided in subsection (a), the Sec3 retary may also make grants to supplement direct loans 

4 or loan guarantees made under title V of the Railroad Re5 vitalization and Regulatory Reform Act of 1976 (45 

6 U.S.C. 822(d)), for projects described in the last sentence 

7 of section 502(d) of such title. Grants made under this 

8 subsection may be used, in whole or in part, for paying 

9 credit risk premiums, lowering rates of interest, or pro10 viding for a holiday on principal payments. Credit risk 

11 premiums funded under this section shall be exempt from 

12 the non-Federal source requirement of section 502(f)(1) 

13 of the Railroad Revitalization and Regulatory Reform Act 

14 of 1976 (45 U.S.C. 822(f)(1)). 

15 ‘‘(f) EMPLOYEE PROTECTION.—The Secretary shall 

16 require as a condition of any grant made under this sec17 tion that the recipient railroad provide a fair arrangement 

18 at least as protective of the interests of employees who 

19 are affected by the project to be funded with the grant 

20 as the terms imposed under section 11326(a), as in effect 

21 on the date of the enactment of this section. 

22 ‘‘(g) LABOR STANDARDS.—

23 ‘‘(1) PREVAILING WAGES.—The Secretary shall 

24 ensure that laborers and mechanics employed by 

25 contractors and subcontractors in construction work 
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1 financed by a grant made under this section will be 

2 paid wages not less than those prevailing on similar 

3 construction in the locality, as determined by the 

4 Secretary of Labor under the Act of March 3, 1931 

5 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 

6 seq.). The Secretary shall make a grant under this 

7 section only after being assured that required labor 

8 standards will be maintained on the construction 

9 work. 

10 ‘‘(2) WAGE RATES.—Wage rates in a collective 

11 bargaining agreement negotiated under the Railway 

12 Labor Act (45 U.S.C. 151 et seq.) are deemed for 

13 purposes of this subsection to comply with the Act 

14 of March 3, 1931 (known as the Davis-Bacon Act; 

15 40 U.S.C. 276a et seq.). 

16 ‘‘(h) STUDY.—The Secretary shall conduct a study 

17 of the projects carried out with grant assistance under this 

18 section to determine the public interest benefits associated 

19 with the light density railroad networks in the States and 

20 their contribution to a multimodal transportation system. 

21 Not later than March 31, 2003, the Secretary shall report 

22 to Congress any recommendations the Secretary considers 

23 appropriate regarding the eligibility of light density rail 

24 networks for Federal infrastructure financing. 
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1 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary of 

3 Transportation $500,000,000 for fiscal year 2002 for car4 rying out this section.’’. 

5 (b) CONFORMING AMENDMENTS.—(1) The item re6 lating to chapter 223 in the table of chapters of subtitle 

7 V of title 49, United States Code, is amended to read as 

8 follows:

‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK .......................... 22301’’.

9 (2) Section 502(d) of the Railroad Revitalization and 

10 Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 

11 amended—

12 (A) by striking ‘‘$3,500,000,000’’ and in13 serting ‘‘$5,000,000,000’’; and 

14 (B) by striking ‘‘$1,000,000,000’’ and in15 serting ‘‘$1,500,000,000’’. 

16 SEC. 417. REGULATORY PROCEDURE AMENDMENTS. 

17 (a) COHORTS OF LOANS.—Section 502(f) of the Rail18 road Revitalization and Regulatory Reform Act of 1976 

19 (45 U.S.C. 822(f)) is amended—

20 (1) in paragraph (2)—

21 (A) by striking ‘‘and’’ at the end of sub22 paragraph (D); 

23 (B) by redesignating subparagraph (E) as 

24 subparagraph (F); and 
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1 (C) by adding after subparagraph (D) the 

2 following new subparagraph: 

3 ‘‘(E) the size and characteristics of the co4 hort of which the loan or loan guarantee is a 

5 member; and’’; and 

6 (2) by adding at the end of paragraph (4) the 

7 following: ‘‘A cohort may include loans and loan 

8 guarantees. The Secretary shall not establish any 

9 limit on the proportion of a cohort that may be used 

10 for 1 loan or loan guarantee.’’. 

11 (b) CONDITIONS OF ASSISTANCE.—Section 502 of 

12 the Railroad Revitalization and Regulatory Reform Act of 

13 1976 (45 U.S.C. 822) is amended—

14 (1) in subsection (f)(2)(A), by inserting ‘‘, if 

15 any’’ after ‘‘collateral offered’’; and 

16 (2) by adding at the end of subsection (h) the 

17 following: 

18 ‘‘The Secretary shall not require an applicant for a direct 

19 loan or loan guarantee under this section to provide collat20 eral. The Secretary shall not require that an applicant for 

21 a direct loan or loan guarantee under this section have 

22 previously sought the financial assistance requested from 

23 another source. The Secretary shall require recipients of 

24 direct loans or loan guarantees under this section to apply 

25 the standards of section 26106(a)(5) of title 49, United 
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1 States Code, to their projects, except for projects primarily 

2 benefiting Class III freight railroads.’’. 

3 (c) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

4 Section 502 of the Railroad Revitalization and Regulatory 

5 Reform Act of 1976 (45 U.S.C. 822) is amended by add6 ing at the end the following new subsection: 

7 ‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

8 Not later than 180 days after receiving a complete appli9 cation for a direct loan or loan guarantee under this sec10 tion, the Secretary shall approve or disapprove the applica11 tion.’’. 

12 (d) FEES AND CHARGES.—Section 503 of the Rail13 road Revitalization and Regulatory Reform Act of 1976 

14 (45 U.S.C. 823) is amended by adding at the end the fol15 lowing new subsection: 

16 ‘‘(l) FEES AND CHARGES.—Except as provided in 

17 this title, the Secretary may not assess any fees, including 

18 user fees, or charges in connection with a direct loan or 

19 loan guarantee provided under section 502.’’. 

20 (e) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 

21 later than 30 days after the date of the enactment of this 

22 Act, the Secretary of Transportation shall publish in the 

23 Federal Register and post on the Department of Trans24 portation web site the substantive criteria and standards 

25 used by the Secretary to determine whether to approve
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1 or disapprove applications submitted under section 502 of 

2 the Railroad Revitalization and Regulatory Reform Act of 

3 1976 (45 U.S.C. 822). 

4 Subtitle B—Environmental 

5 Infrastructure Investment 

6 SEC. 421. GENERAL AUTHORITY FOR CAPITALIZATION 

7 GRANTS. 

8 Section 601(a) of the Federal Water Pollution Con9 trol Act (33 U.S.C. 1381(a)) is amended by striking ‘‘(1) 

10 for construction’’ and all that follows through the period 

11 and inserting ‘‘to accomplish the objectives, goals, and 

12 policies of this Act.’’. 

13 SEC. 422. CAPITALIZATION GRANTS AGREEMENTS. 

14 (a) REQUIREMENTS FOR CONSTRUCTION OF TREAT15 MENT WORKS.—Section 602(b)(6) of the Federal Water 

16 Pollution Control Act (33 U.S.C. 1382(b)(6)) is amend17 ed—

18 (1) by striking ‘‘treatment works’’ the first 

19 place it appears and inserting ‘‘activities’’; 

20 (2) by striking ‘‘before fiscal year 1995’’ and all 

21 that follows through ‘‘grants under this title’’ and 

22 inserting ‘‘with funds made available by capitaliza23 tion grants under this title (including repayments 

24 thereof)’’; and 
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1 (3) by striking ‘‘201(b)’’ and all that follows 

2 through ‘‘218’’ and inserting ‘‘204(b)(1), 211’’. 

3 (b) GUIDANCE FOR SMALL SYSTEMS.—Section 602 

4 of the Federal Water Pollution Control Act (33 U.S.C. 

5 1382) is amended by adding at the end the following new 

6 subsection: 

7 ‘‘(c) GUIDANCE FOR SMALL SYSTEMS.—

8 ‘‘(1) SIMPLIFIED PROCEDURES.—Not later than 

9 1 year after the date of the enactment of this sub10 section, the Administrator shall assist the States in 

11 establishing simplified procedures for small systems 

12 to obtain assistance under this title. 

13 ‘‘(2) PUBLICATION OF MANUAL.—Not later 

14 than 1 year after the date of the enactment of this 

15 subsection, and after providing notice and oppor16 tunity for public comment, the Administrator shall 

17 publish a manual to assist small systems in obtain18 ing assistance under this title and publish in the 

19 Federal Register notice of the availability of the 

20 manual. 

21 ‘‘(3) SMALL SYSTEM DEFINED.—For purposes 

22 of this title, the term ‘small system’ means a system 

23 for which a municipality or intermunicipal, inter24 state, or State agency seeks assistance under this 
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1 title and which serves a population of 20,000 or 

2 fewer.’’. 

3 SEC. 423. WATER POLLUTION CONTROL REVOLVING 

4 FUNDS. 

5 (a) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—Sec6 tion 603(c) of the Federal Water Pollution Control Act 

7 (33 U.S.C. 1383(c)) is amended to read as follows: 

8 ‘‘(c) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—

9 ‘‘(1) IN GENERAL.—The amounts of funds 

10 available to each State water pollution control re11 volving fund shall be used only for providing finan12 cial assistance to a municipality, intermunicipal 

13 agency, interstate agency, State agency, or other 

14 person for activities which have as a principal ben15 efit the improvement or protection of water quality. 

16 Such activities may include the following: 

17 ‘‘(A) Construction of a publicly owned 

18 treatment works (as defined in section 212 of 

19 this Act). 

20 ‘‘(B) Implementation of lake protection 

21 programs and projects under section 314. 

22 ‘‘(C) Implementation of a management 

23 program established under section 319. 
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1 ‘‘(D) Implementation of a conservation and 

2 management plan established under section 

3 320. 

4 ‘‘(E) Restoration or protection of publicly 

5 or privately owned riparian areas, including ac6 quisition of property rights. 

7 ‘‘(F) Implementation of measures to im8 prove the efficiency of public water use. 

9 ‘‘(G) Development and implementation of 

10 plans by a public recipient to prevent water pol11 lution. 

12 ‘‘(H) Acquisition of lands necessary to 

13 meet any mitigation requirements related to 

14 construction of a publicly owned treatment 

15 works. 

16 ‘‘(2) FUND AMOUNTS.—The water pollution 

17 control revolving fund of a State shall be established, 

18 maintained, and credited with repayments, and the 

19 fund balance shall be available in perpetuity for pro20 viding financial assistance for activities described in 

21 paragraph (1). Fees charged by a State to recipients 

22 of such assistance may be deposited in the fund for 

23 the sole purpose of financing the cost of administra24 tion of this title.’’.
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1 (b) EXTENDED REPAYMENT PERIOD FOR FINAN2 CIALLY DISTRESSED COMMUNITIES.—Section 603(d)(1) 

3 of the Federal Water Pollution Control Act (33 U.S.C. 

4 1383(d)(1)) is amended—

5 (1) in subparagraph (A) by inserting after ‘‘20 

6 years’’ the following: ‘‘or, in the case of a financially 

7 distressed community, the lesser of 40 years or the 

8 expected life of the project to be financed with the 

9 proceeds of the loan’’; and 

10 (2) in subparagraph (B) by striking ‘‘not later 

11 than 20 years after project completion’’ and insert12 ing ‘‘upon the expiration of the term of the loan’’. 

13 (c) ADMINISTRATIVE EXPENSES.—Section 603(d)(7) 

14 of the Federal Water Pollution Control Act (33 U.S.C. 

15 1383(d)(7)) is amended by inserting before the period at 

the end the following: ‘‘or $400,000 per year or 1 16 ⁄2 percent 

17 per year of the current valuation of such fund, whichever 

18 is greatest, plus the amount of any fees collected by the 

19 State for such purpose under subsection (c)(2)’’. 

20 (d) TECHNICAL AND PLANNING ASSISTANCE FOR

21 SMALL SYSTEMS.—Section 603(d) of the Federal Water 

22 Pollution Control Act (33 U.S.C. 1383(d)) is amended—

23 (1) by striking ‘‘and’’ at the end of paragraph 

24 (6);
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1 (2) by striking the period at the end of para2 graph (7) and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(8) to provide to small systems technical and 

5 planning assistance and assistance in financial man6 agement, user fee analysis, budgeting, capital im7 provement planning, facility operation and mainte8 nance, repair schedules, and other activities to im9 prove wastewater treatment plant operations; except 

10 that such amounts shall not exceed 2 percent of all 

11 grant awards to such fund under this title.’’. 

12 (e) PRINCIPAL SUBSIDIZATION.—Section 603 of the 

13 Federal Water Pollution Control Act is amended by add14 ing at the end the following: 

15 ‘‘(i) PRINCIPAL SUBSIDIZATION.—In any case in 

16 which a State makes a loan pursuant to subsection (d)(1) 

17 to a financially distressed community, the State may pro18 vide additional subsidization, including forgiveness of prin19 cipal. The total amount of loan subsidies made by a State 

20 under this subsection in a fiscal year may not exceed 30 

21 percent of the amount of the capitalization grant received 

22 by the State in such fiscal year. 

23 ‘‘(j) FINANCIALLY DISTRESSED COMMUNITY DE24 FINED.—In this section, the term ‘financially distressed 

25 community’ means any community that meets afford-
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1 ability criteria established by the State in which the treat2 ment works is located, if such criteria are developed after 

3 public review and comment. 

4 ‘‘(k) INFORMATION TO ASSIST STATES.—The Ad5 ministrator may publish information to assist States in es6 tablishing affordability criteria under subsection (j). 

7 ‘‘(l) PRIORITY.—A State may give priority to a finan8 cially distressed community in making loans from its 

9 water pollution control revolving fund.’’. 

10 SEC. 424. AUTHORIZATION OF APPROPRIATIONS FOR 

11 CLEAN WATER STATE REVOLVING FUNDS. 

12 Section 607 of the Federal Water Pollution Control 

13 Act (33 U.S.C. 1387) is amended—

14 (1) by striking ‘‘and’’ at the end of paragraph 

15 (4); 

16 (2) by striking the period at the end of para17 graph (5) and inserting ‘‘; and’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(6) $5,000,000,000 as an additional amount 

20 for fiscal year 2002.’’. 

21 SEC. 425. WET WEATHER. 

22 Section 221(f) of the Federal Water Pollution Con23 trol Act (33 U.S.C. 1301(f)) is amended by inserting after 

24 the first sentence the following: ‘‘In addition, there is au-
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1 thorized to be appropriated to carry out this section an 

2 additional $1,500,000,000 for fiscal year 2002.’’. 

3 SEC. 426. SAFE DRINKING WATER STATE REVOLVING 

4 FUNDS. 

5 Section 1452(m) of title XIV of the Public Health 

6 Service Act (commonly known as the ‘‘Safe Drinking 

7 Water Act’’) (42 U.S.C. 300j–12(m)) is amended by in8 serting after the first sentence the following: ‘‘In addition, 

9 there is authorized to be appropriated to carry out this 

10 section an additional $1,500,000,000 for fiscal year 

11 2002.’’. 

12 Subtitle C—Highway 

13 Infrastructure Investment 

14 SEC. 431. FEDERAL-AID HIGHWAY PROGRAM OBLIGATION 

15 CEILING. 

16 Section 1102 of the Transportation Equity Act for 

17 the 21st Century (112 Stat. 115) is amended by adding 

18 at the end the following: 

19 ‘‘(j) INCREASE IN OBLIGATION LIMIT FOR FISCAL

20 YEAR 2002.—Notwithstanding any other provision of law, 

21 limitations on obligations imposed by subsection (a) for 

22 fiscal year 2002 shall be increased by $5,000,000,000. 

23 Such sum shall be distributed in accordance with this sec24 tion, except that a program subject to a reduction in funds 

25 under subsection (f) shall receive an amount of obligation 
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1 authority equal to the amount of contract authority avail2 able for such program in such fiscal year.’’. 

3 SEC. 432. LIMITATIONS ON CREDIT AMOUNTS. 

4 Section 188(c) of title 23, United States Code, is 

5 amended—

6 (1) by striking ‘‘For each of’’ and inserting the 

7 following: 

8 ‘‘(1) IN GENERAL.—For each of’’; 

9 (2) by adding at the end the following: 

10 ‘‘(2) SPECIAL RULE.—Notwithstanding any 

11 other provision of law, principal amounts of Federal 

12 credit instruments authorized under this subsection 

13 for fiscal years 1999, 2000, and 2001 that have not 

14 been made available shall be available in fiscal years 

15 2002 and 2003, in addition to amounts authorized 

16 for such fiscal years.’’; and 

17 (3) by aligning the remainder of the text of 

18 paragraph (1) (as designated by paragraph (1) of 

19 this section) preceding the table with paragraph (2) 

20 (as added by paragraph (2) of this section).
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1 Subtitle D—Transit Infrastructure 

2 Investment 

3 SEC. 441. ADDITIONAL AUTHORIZATIONS FOR FORMULA 

4 GRANTS. 

5 (a) FROM THE TRUST FUND.—Section 

6 5338(a)(2)(A)(iv) of title 49, United States Code, is 

7 amended by striking ‘‘$2,873,600,000’’ and inserting 

8 ‘‘$5,273,600,000’’. 

9 (b) FROM THE GENERAL FUND.—Section 

10 5338(a)(2)(B)(iv) of title 49, United States Code, is 

11 amended by striking ‘‘$718,400,000’’ and inserting 

12 ‘‘$1,318,400,000’’. 

13 (c) AVAILABILITY OF AMOUNTS.—Notwithstanding 

14 sections 5307(k)(2) and section 5336(i), any increase in 

15 the amounts apportioned to a recipient attributable to the 

16 amendments made by subsections (a) and (b) of this sec17 tion may be obligated by the recipient for 1 year after 

18 the last day of the fiscal year in which the amount is ap19 portioned. Not later than 30 days after the end of the 

20 1-year period, an amount that is not obligated at the end 

21 of that period shall be added to the amount that may be 

22 apportioned under the urbanized area formula program of 

23 section 5336 of title 49, United States Code.
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1 SEC. 442. FEDERAL TRANSIT PROGRAM OBLIGATION CEIL2 ING. 

3 Section 3040(4) of the Transportation Equity Act for 

4 the 21st Century (112 Stat. 338) is amended by striking 

5 ‘‘$6,747,000,000’’ and inserting ‘‘$9,747,000,000’’. 

6 SEC. 443. UNIFORM DOLLAR LIMITATION FOR ALL TYPES 

7 OF TRANSPORTATION FRINGE BENEFITS. 

8 (a) IN GENERAL.—Subparagraph (A) of section 

9 132(f)(2) of the Internal Revenue Code of 1986 (relating 

10 to limitation on exclusion) is amended by striking ‘‘$100’’ 

11 and inserting ‘‘$175’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2001. 

15 Subtitle E—AVIATION 

16 INFRASTRUCTURE INVESTMENT 

17 SEC. 451. INCREASED FUNDING FOR AIRPORT PLANNING 

18 AND DEVELOPMENT. 

19 (a) IN GENERAL.—Section 48103(4) of title 49, 

20 United States Code, is amended by striking 

21 ‘‘$3,300,000,000’’ and inserting ‘‘$5,355,000,000.’’. 

22 (b) DISCRETIONARY FUND.—Section 47115 of title 

23 49, United States Code, is amended by adding at the end 

24 the following: 

25 ‘‘(i) ADDITIONAL AMOUNT TO BE CREDITED TO

26 FUND FOR FISCAL YEAR 2002.—
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1 ‘‘(1) IN GENERAL.—In addition to other 

2 amounts credited to the fund under this section, 

3 there shall be credited to the fund $2,055,000,000 

4 out of amounts made available to the Secretary for 

5 fiscal year 2002 under section 48103(4). 

6 ‘‘(2) APPORTIONMENT CATEGORIES DO NOT

7 APPLY.—Section 47117(e) does not apply to 

8 amounts credited to the fund under this sub9 section.’’. 

10 (c) CONFORMING AMENDMENT.—Section 47114 of 

11 title 49, United States Code, is amended by adding at the 

12 end the following: 

13 ‘‘(g) SPECIAL RULE FOR FISCAL YEAR 2002.—Of 

14 the funds made available by section 48103(4), the amount 

15 subject to apportionment under this section shall be re16 duced by the amount credited to the discretionary fund 

17 under section 47115(i).’’. 

18 SEC. 452. INCREASED FUNDING FOR AIRWAY FACILITIES 

19 IMPROVEMENT. 

20 Section 48101(a)(4) of title 49, United States Code, 

21 is amended by striking ‘‘$2,914,000,000’’ and inserting 

22 ‘‘$3,859,000,000’’. 
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1 Subtitle F—Maritime 

2 Infrastructure Investment 

3 SEC. 461. MARINE TRANSPORTATION SYSTEM INFRASTRUC4 TURE. 

5 (a) MARITIME LOAN GUARANTEES.—For expenses 

6 under the loan guarantee program authorized by title XI 

7 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 

8 et seq.) there is authorized to be appropriated, in addition 

9 to any other amounts authorized for such expenses, 

10 $100,000,000 for fiscal years 2002 and 2003, of which—

11 (1) $87,000,000 is for the cost (as defined in 

12 section 502(5) of the Federal Credit Reform Act of 

13 1990 (2 U.S.C. 661a(5))) of loan guarantees under 

14 the program, including the costs of modifying such 

15 loans, of which $5,000,000 shall be used to guar16 antee loans for ferries using a streamlined process; 

17 and 

18 (2) $13,000,000 is for administrative expenses 

19 related to loan guarantee commitments under the 

20 program. 

21 (b) MARINE TRANSPORTATION SYSTEM IMPROVE22 MENT GRANTS.—

23 (1) GRANTS AUTHORITY.—The Secretary of 

24 Transportation may make a grant to the operator of 

25 any port or maritime cargo terminal in the United 
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1 States to acquire the best available technology, 

2 equipment, or infrastructure to expedite the trans3 portation of cargo through the port or terminal, re4 spectively. 

5 (2) QUALIFIED PROJECTS.—A project shall not 

6 qualify for a grant under this section unless it pro7 vides technology, equipment, or infrastructure that 

8 will significantly increase the actual throughput of 

9 cargo through a port or terminal facility. 

10 (3) COST SHARING.—The Federal share of the 

11 cost of a project carried out with a grant under this 

12 subsection shall not exceed 50 percent. 

13 (4) REGULATIONS.—The Secretary shall, before 

14 July 1, 2002, prescribe final regulations for issuing 

15 grants under this subsection. 

16 (5) AUTHORIZATION OF APPROPRIATIONS.—For 

17 grants under this subsection there is authorized to 

18 be appropriated to the Secretary $500,000,000 for 

19 fiscal years 2002 and 2003. 

20 Subtitle G—Economic Development 

21 Infrastructure Investment 

22 SEC. 471. PUBLIC WORKS AND ECONOMIC DEVELOPMENT. 

23 Section 701 of the Public Works and Economic De24 velopment Act of 1965 (42 U.S.C. 3231) is amended—
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1 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

2 ‘‘There are authorized’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to 

5 amounts authorized by subsection (a), there are author6 ized to be appropriated to carry out this Act $900,000,000 

7 for fiscal year 2002. Such sums shall remain available 

8 until September 30, 2003.’’. 

9 SEC. 472. APPALACHIAN REGIONAL DEVELOPMENT. 

10 Section 401 of the Appalachian Regional Develop11 ment Act of 1965 (40 U.S.C. App.) is amended by adding 

12 at the end the following: 

13 ‘‘(c) ADDITIONAL AUTHORIZATION.—In addition to 

14 amounts authorized by subsection (a), there are author15 ized to be appropriated to the Commission to carry out 

16 this Act $200,000,000 for fiscal year 2002. Such sums 

17 shall remain available until September 30, 2003.’’. 

18 SEC. 473. DELTA REGIONAL DEVELOPMENT. 

19 Section 382M of the Consolidated Farm and Rural 

20 Development Act (7 U.S.C. 2009aa–12) is amended—

21 (1) by redesignating subsection (b) as sub22 section (c); 

23 (2) by inserting after subsection (a) the fol24 lowing:
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1 ‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to 

2 amounts authorized by subsection (a), there are author3 ized to be appropriated to the Authority to carry out this 

4 subtitle $200,000,000 for fiscal year 2002. Such sums 

5 shall remain available until September 30, 2003.’’; and 

6 (3) in subsection (c) (as so redesignated) by 

7 striking ‘‘subsection (a)’’ and inserting ‘‘subsections 

8 (a) and (b)’’.

9 Subtitle H—Water Resources 

10 Infrastructure Investment 

11 SEC. 481. INCREASED FUNDING FOR CORPS OF ENGINEERS 

12 PROJECTS. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi14 tion to other amounts authorized to be appropriated, there 

15 are authorized to be appropriated to the Secretary of the 

16 Army $1,200,000,000 for fiscal year 2002 to carry out 

17 construction, operation, and maintenance activities for au18 thorized civil functions under the supervision of the Chief 

19 of Engineers. Such sums shall remain available until Sep20 tember 30, 2003. 

21 (b) ALLOCATION OF AMOUNTS FOR SECURITY PUR22 POSES.—Of the amounts appropriated pursuant to sub23 section (a), not less than $263,000,000 shall be available 

24 for security purposes at critical infrastructure, as identi25 fied by the Secretary of the Army.
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1 Subtitle I—Public Buildings 

2 Infrastructure Investment 

3 SEC. 491. SECURITY ENHANCEMENTS FOR GSA PROP4 ERTIES. 

5 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi6 tion to other amounts credited to the Federal Buildings 

7 Fund established pursuant to section 210(f) of the Fed8 eral Property and Administrative Services Act of 1949 (40 

9 U.S.C. 490(f)), there is authorized to be appropriated 

10 $500,000,000 for fiscal year 2002 to be credited to the 

11 Fund. Such sums shall remain available until September 

12 30, 2003. 

13 (b) USE OF FUNDS.—Amounts credited to the Fund 

14 under this section shall be available to the Administrator 

15 of General Services to carry out projects and activities for 

16 enhancing the security of properties under the control of 

17 the General Services Administration, including general 

18 purpose office space, courthouses, and border crossing sta19 tions, and for other repair and alteration purposes. 

20 SEC. 492. SECURITY ENHANCEMENTS FOR JOHN F. KEN21 NEDY CENTER. 

22 Section 12 of the John F. Kennedy Center Act (20 

23 U.S.C. 76r) is amended by adding at the end the fol24 lowing: 
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1 ‘‘(d) ADDITIONAL AUTHORIZATION.—In addition to 

2 the amounts authorized under subsections (a) and (b), 

3 there is authorized to be appropriated to the Board 

4 $50,000,000 for fiscal year 2002 to carry out projects and 

5 activities for enhancing the security of the building and 

6 site of the John F. Kennedy Center for the Performing 

7 Arts and other projects and activities under subpara8 graphs (F), (G), and (H) of section 4(a)(1).’’. 

9 SEC. 493. SECURITY ENHANCEMENTS FOR SMITHSONIAN 

10 INSTITUTION. 

11 In addition to other amounts authorized to be appro12 priated, there is authorized to be appropriated to the 

13 Smithsonian Institution $50,000,000 for fiscal year 2002 

14 to carry out projects and activities for enhancing the secu15 rity of the buildings and grounds of the Smithsonian Insti16 tution and for other capital improvement or repair and 

17 alteration purposes. 

18 Subtitle J—General Provisions 

19 SEC. 495. PRIORITY CONSIDERATION FOR SECURITY 

20 PROJECTS. 

21 The head of a Federal department or agency may 

22 provide financial assistance with any increase in funds au23 thorized or made available by, or with any increase in obli24 gation authority made available by, this Act (including the 

25 amendments made by this Act) only if the recipient of 
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1 such assistance certifies to the head of such department 

2 or agency that the recipient will give priority consideration 

3 to programs or projects that enhance security, to the ex4 tent that such programs or projects are immediately ready 

5 to be implemented. 

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

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law and subject to subsection (b), in providing fi9 nancial assistance for a program or project with any in10 crease in funds authorized or made available by, or with 

11 any increase in obligation authority made available by, this 

12 Act (including the amendments made by this Act (other 

13 than subtitle A of title I of this Act)), the head of a Fed14 eral department or agency, upon request of the recipient 

15 of such assistance, may increase the Federal share of the 

16 cost of the program or project to not to exceed 100 percent 

17 of such cost. 

18 (b) REPAYMENTS.—Before increasing the Federal 

19 share of the cost of a program or project under subsection 

20 (a), the head of a Federal department or agency shall 

21 enter into a legally binding agreement with the recipient 

22 of financial assistance for the program or project under 

23 which the recipient agrees to repay the United States for 

24 the increased Federal share of the program or project on 

25 or before September 30, 2003. 
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1 SEC. 497. MAINTENANCE OF EFFORT. 

2 The head of a Federal department or agency may 

3 provide financial assistance for a program or project with 

4 any increase in funds authorized or made available by, or 

5 with any increase in obligation authority made available 

6 by, this Act (including the amendments made by this Act) 

7 for a fiscal year only if the recipient of such assistance 

8 certifies to the head of such department or agency that 

9 the aggregate expenditure of funds of the recipient, exclu10 sive of Federal funds, for such program or project will be 

11 maintained at a level that does not fall below the average 

12 level of such expenditure for the preceding 2 fiscal years 

13 of the recipient. 

14 SEC. 498. LABOR STANDARDS. 

15 (a) PREVAILING WAGES.—The head of a Federal de16 partment or agency providing financial assistance with 

17 any increase in funds authorized or made available by, or 

18 with any increase in obligation authority made available 

19 by, this Act (including the amendments made by this Act) 

20 shall ensure that laborers and mechanics employed by con21 tractors and subcontractors in construction work financed 

22 by such financial assistance will be paid wages not less 

23 than those prevailing on similar construction in the local24 ity, as determined by the Secretary of Labor under the 

25 Act of March 3, 1931 (known as the Davis-Bacon Act; 

26 40 U.S.C. 276a et seq.). The head of the department or
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1 agency shall provide such financial assistance only after 

2 being assured that required labor standards will be main3 tained on the construction work. 

4 (b) WAGE RATES.—Wage rates in a collective bar5 gaining agreement negotiated under the Railway Labor 

6 Act (45 U.S.C. 151 et seq.) are deemed for purposes of 

7 this section to comply with the Act of March 3, 1931 

8 (known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.). 

9 SEC. 499. BUY AMERICA. 

10 (a) PREFERENCE.—The head of a Federal depart11 ment or agency may provide financial assistance for a 

12 project with any increase in funds authorized or made 

13 available by, or with any increase in obligation authority 

14 made available by, this title (including the amendments 

15 made by this title) only if steel and manufactured goods 

16 used in the project are produced in the United States. 

17 (b) WAIVER.—The head of a Federal department or 

18 agency may waive subsection (a) if the head of the Federal 

19 department or agency finds that—

20 (1) applying subsection (a) would be incon21 sistent with the public interest; 

22 (2) the steel and goods produced in the United 

23 States are not produced in a sufficient and reason24 ably available amount or are not of a satisfactory 

25 quality; 
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1 (3) when procuring a facility or equipment with 

2 any increase in funds or obligation authority de3 scribed in subsection (a)—

4 (A) the cost of components and subcompo5 nents produced in the United States is more 

6 than 60 percent of the cost of all components 

7 of the facility or equipment; and 

8 (B) final assembly of the facility or equip9 ment has occurred in the United States; or 

10 (4) including domestic material will increase the 

11 cost of the overall project by more than 25 percent. 

12 (c) LABOR COSTS.—In this section, labor costs in13 volved in final assembly are not included in calculating the 

14 cost of components. 

15 TITLE V—ELEMENTARY AND 

16 SECONDARY EDUCATION IN17 FRASTRUCTURE 

18 SEC. 501. ELEMENTARY AND SECONDARY EDUCATION IN19 FRASTRUCTURE. 

20 (a) IN GENERAL.—The Secretary of Education shall 

21 provide $5,000,000,000 in grants to the State and out22 lying area entities responsible for the financing of edu23 cation facilities (hereinafter in this section referred to as 

24 the ‘‘State entity’’), on the basis of the same percentage 

25 as the State educational agency received of the funds allo-
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1 cated to States and outlying areas through the Depart2 ment of Education Appropriations Act, 2002 for carrying 

3 out part A, title I of the Elementary and Secondary Edu4 cation Act of 1965, for awarding grants in accordance 

5 with subsection (b) to local educational agencies to enable 

6 them to make urgent repairs and renovations to public 

7 school facilities. 

8 (b) GRANTS.—

9 (1) IN GENERAL.—A State entity shall award 

10 urgent school renovation grants to local educational 

11 agencies under this section on a competitive basis 

12 that includes consideration of each local educational 

13 agency applicant’s—

14 (A) relative percentage of children from 

15 low-income families; 

16 (B) need for school repairs and renova17 tions; 

18 (C) fiscal capacity; and 

19 (D) plans to maintain the facilities re20 paired or renovated under the grant. 

21 (2) FEDERAL SHARE.—The Federal share of 

22 the cost of each project assisted by funds made 

23 available under this section shall be determined 

24 based on the percentage of the local educational 

25 agency’s attendance that is comprised of children 5 
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1 to 17 years of age, inclusive, who are from families 

2 with incomes below the poverty line (as defined by 

3 the Office of Management and Budget and revised 

4 annually in accordance with section 673(2) of the 

5 Community Services Block Grant Act (42 U.S.C. 

6 9902(2)) applicable to a family of the size involved 

7 for the most recent fiscal year for which data satis8 factory 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%.

9 (3) EXCESS ALLOCATIONS.—If, after providing 

10 an opportunity to the public and all local educational 

11 agencies in the State to comment, consistent with 

12 any applicable State and local law specifying how 

13 the comments may be received and how the com14 ments may be reviewed by any member of the public, 

15 the State entity demonstrates that the amount of 

16 the State’s allocation exceeds the amount needed to 

17 address the needs of the local educational agencies 

18 in the State for school repair and renovation under 

19 this section—

20 (A) the State entity shall transfer any ex21 cess portion of that allocation to the State edu22 cational agency; and
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1 (B) the State educational agency shall allo2 cate 100 percent of those excess funds received 

3 under subsection (a) in accordance with section 

4 5312 of the Elementary and Secondary Edu5 cation Act of 1965 as amended by Public Law 

6 107–110 for activities authorized under section 

7 5331 of the Elementary and Secondary Edu8 cation Act of 1965 as amended by Public Law 

9 107–110 to be determined by each such local 

10 educational agency as part of a local strategy 

11 for improving academic achievement. 

12 (c) FUNDS FOR SCHOOL RENOVATIONS.—

13 (1) IN GENERAL.—If a local educational agency 

14 uses funds for urgent school renovation, then the fol15 lowing provisions shall apply: 

16 (A) Urgent school renovation shall be lim17 ited to one or more of the following: 

18 (i) Emergency renovations or repairs 

19 to the school facilities only to ensure the 

20 health and safety of students and staff. 

21 (ii) School facilities modifications nec22 essary to render school facilities accessible 

23 in order to comply with the Americans 

24 With Disabilities Act. 
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1 (iii) School facilities modifications 

2 necessary to render school facilities acces3 sible in order to comply with section 504 

4 of the Rehabilitation Act. 

5 (iv) Upgrades to existing technology. 

6 (v) Asbestos abatement or removal 

7 from school facilities. 

8 (vi) Security upgrades. 

9 (2) LIMITATIONS.—No funds received under 

10 this section for urgent school renovation may be 

11 used for—

12 (A) payment of maintenance costs in con13 nection with any projects constructed in whole 

14 or part with Federal funds provided under this 

15 section; or 

16 (B) stadiums or other facilities primarily 

17 used for athletic contests or exhibitions or other 

18 events for which admission is charged to the 

19 general public. 

20 SEC. 502. LABOR STANDARDS. 

21 The Secretary of Education shall ensure that laborers 

22 and mechanics employed by contractors and subcontrac23 tors in construction work financed by this title will be paid 

24 wages not less than those prevailing on similar construc25 tion in the locality, as determined by the Secretary of 
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1 Labor under the Act of March 3, 1931 (known as the 

2 Davis-Bacon Act; 40 U.S.C. 276a et seq.). 

3 TITLE VI—REVENUE OFFSETS 

4 SEC. 601. TOP INDIVIDUAL INCOME TAX MARGINAL RATE 

5 NOT REDUCED BELOW 2003 LEVEL. 

6 (a) IN GENERAL.—The table contained in paragraph 

7 (2) of section 1(i) of the Internal Revenue Code of 1986 

8 is amended—

9 (1) by striking ‘‘37.6%’’ and inserting 

10 ‘‘38.6%’’, and 

11 (2) by striking ‘‘35.0%’’ and inserting 

12 ‘‘38.6%’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2003. 

16 SEC. 602. REINSTATEMENT OF ESTATE TAX FOR ESTATE 

17 OVER $5,000,000; REPEAL OF CARRYOVER 

18 BASIS. 

19 (a) REINSTATEMENT OF ESTATE TAX.—

20 (1) IN GENERAL.—Subtitles A and E of title V 

21 of the Economic Growth and Tax Relief Reconcili22 ation Act of 2001, and the amendments made by 

23 such subtitles, are hereby repealed; and the Internal 

24 Revenue Code of 1986 shall be applied as if such 

25 subtitles, and amendments, had never been enacted. 
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1 (2) SUNSET NOT TO APPLY.—

2 (A) Subsection (a) of section 901 of the 

3 Economic Growth and Tax Relief Reconciliation 

4 Act of 2001 is amended by striking ‘‘this Act’’ 

5 and all that follows and inserting ‘‘this Act 

6 (other than title V) shall not apply to taxable, 

7 plan, or limitation years beginning after Decem8 ber 31, 2010.’’. 

9 (B) Subsection (b) of such section 901 is 

10 amended by striking ‘‘, estates, gifts, and trans11 fers’’. 

12 (3) CONFORMING AMENDMENTS.—Subsections 

13 (d) and (e) of section 511 of the Economic Growth 

14 and Tax Relief Reconciliation Act of 2001, and the 

15 amendments made by such subsections, are hereby 

16 repealed; and the Internal Revenue Code of 1986 

17 shall be applied as if such subsections, and amend18 ments, had never been enacted. 

19 (b) INCREASE IN EXCLUSION EQUIVALENT OF UNI20 FIED CREDIT TO $5,000,000.—Subsection (c) of section 

21 2010 of the Internal Revenue Code of 1986 (relating to 

22 applicable credit amount) is amended by striking all that 

23 follows ‘‘the applicable exclusion amount’’ and inserting 

24 ‘‘. For purposes of the preceding sentence, the applicable 

25 exclusion amount is $5,000,000.’’. 
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1 (c) MAXIMUM ESTATE TAX RATE TO REMAIN AT

2 2003 LEVEL.—

3 (1) IN GENERAL.—The table contained in para4 graph (1) of section 2001(c) of such Code is amend5 ed by striking the 2 highest brackets and inserting 

6 a new bracket to read as follows:

‘‘Over $2,000,000 .......................... $780,000, plus 49% of the excess 

over $2,000,000.’’.

7 (2) CONFORMING AMENDMENT.—Paragraph (2) 

8 of section 2001(c) of such Code is hereby repealed. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to estates of decedents dying, and 

11 gifts made, after December 31, 2003.

Æ