I 

108TH CONGRESS 

2D SESSION H. R. 4423 

Making appropriations for the Department of Veterans Affairs for the fiscal 

year ending September 30, 2005, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2004 

Mr. EDWARDS introduced the following bill; which was referred to the Committee on Appropriations, and in addition to the Committee on Ways and 

Means, 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 

Making appropriations for the Department of Veterans Affairs for the fiscal year ending September 30, 2005, 

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 That the following sums are appropriated, out of any 

4 money in the Treasury not otherwise appropriated, for the 

5 Department of Veterans Affairs for the fiscal year ending 

6 September 30, 2005, and for other purposes, namely: 
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1 DEPARTMENT OF VETERANS AFFAIRS 

2 VETERANS HEALTH ADMINISTRATION

3 MEDICAL CARE

4 For necessary expenses for the maintenance and op5 eration of hospitals, nursing homes, and domiciliary facili6 ties; for furnishing, as authorized by law, inpatient and 

7 outpatient care and treatment to beneficiaries of the De8 partment of Veterans Affairs and Veterans described in 

9 paragraphs (1) through (8) of section 1705(a) of title 38, 

10 United States Code, including care and treatment in facili11 ties not under the jurisdiction of the Department and in12 cluding medical supplies and equipment and salaries and 

13 expenses of health care employees hired under title 38, 

14 United States Code; and furnishing recreational facilities, 

15 supplies, and equipment; funeral, burial, and other ex16 penses incidental thereto for beneficiaries receiving care 

17 in the Department; administrative expenses in support of 

18 planning, design, project management, real property ac19 quisition and disposition, construction and renovation of 

20 any facility under the jurisdiction or for the use of the 

21 Department; oversight, engineering and architectural ac22 tivities not charged to project costs; repairing, altering, 

23 improving or providing facilities in the several hospitals 

24 and homes under the jurisdiction of the department, not 

25 otherwise provided for, either by contract or by the hire 
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1 of temporary employees and purchase of materials; infor2 mation technology hardware and software; uniforms or al3 lowances therefor, as authorized by 5 U.S.C. 5901–5902; 

4 other services authorized by 5 U.S.C. 3109 including hire 

5 of passenger motor vehicles; lease of a facility or land or 

6 both; aid to State homes as authorized by 38 U.S.C. 1741; 

7 administrative and legal expenses of the Department for 

8 collecting and recovering amounts owed the Department 

9 as authorized under 38 U.S.C. chapter 17, and the Fed10 eral Medical Care Recovery Act, 42 U.S.C. 2651 et seq., 

11 $28,994,000,000, plus reimbursements: Provided, That no 

12 appropriations from this account shall be available for the 

13 purchase of any site for or toward the construction of any 

14 new hospital or home: Provided further, That no appro15 priations in this account shall be available for hospitaliza16 tion or examination of any persons (except beneficiaries 

17 entitled under the laws bestowing such benefits to vet18 erans, and persons receiving such treatment under 5 

19 U.S.C.7901–7904 or 42 U.S.C. 5141–5204), unless reim20 bursement of cost is made to this account at such rates 

21 as may be fixed by the Secretary of Veterans Affairs: Pro22 vided further, That no appropriations in this account shall 

23 be available to enter into any new lease of real property 

24 if the estimated annual rental is more than $300,000 un25 less the Secretary submits a report which the Committees 
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1 on Appropriations of the Congress approve within 30 days 

2 following the date on which the report is received: Pro3 vided further, That, notwithstanding any other provision 

4 of law, the Secretary of Veterans Affairs may authorize 

5 the dispensing of prescription drugs from Veterans Health 

6 Administration facilities to enrolled veterans with privately 

7 written prescriptions based on requirements established by 

8 the Secretary: Provided further, That the implementation 

9 of the program described in the previous proviso shall 

10 incur no additional cost to the Department of Veterans 

11 Affairs: Provided further, That: (a) the Secretary of Vet12 erans Affairs shall conduct by contract a program of re13 covery audits for the fee basis and other medical services 

14 contracts with respect to payments for hospital care. Not15 withstanding section 3302(b) of title 31, United States 

16 Code, amounts collected, by setoff or otherwise, as the re17 sult of such audits shall be available without fiscal year 

18 limitation, for the purposes for which funds are appro19 priated under this account and the purposes of paying a 

20 contractor a percent of the amount collected as a result 

21 of an audit carried out by the contractor: and (b) all 

22 amounts so collected under subsection (a) with respect to 

23 a designated health care region (as that term is defined 

24 in section 1729A(d)(2) of title 38, United States Code) 

25 shall be allocated, not of payments to the contractor, to 
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1 that region: Provided further, That amounts deducted 

2 from enhanced-use lease proceeds to reimburse an account 

3 for expenses incurred by that account during a prior fiscal 

4 year for providing enhanced-use lease services, may be ob5 ligated during the fiscal year in which the proceeds are 

6 received. 

7 MEDICAL CARE COLLECTIONS FUND

8 (INCLUDING TRANSFER OF FUNDS)

9 Amounts deposited during the current fiscal year in 

10 the Department of Veterans Affairs Medical Care Collec11 tions Fund under section 1729A of title 38 U.S.C., may 

12 be transferred to ‘‘Medical care’’, to remain available until 

13 expended: Provided, That notwithstanding any other pro14 visions of law, at the discretion of the Secretary of Vet15 erans Affairs, proceeds or revenues derived from en16 hanced-use leasing activities (including disposal) that are 

17 deposited into this account may be transferred and merged 

18 with ‘‘Construction, major projects’’ and ‘‘Construction, 

19 minor projects’’ accounts and be used for construction (in20 cluding site acquisition and disposition), alterations and 

21 improvements of any medical facility under the jurisdic22 tion or for the use of the Department of Veterans Affairs. 

23 Such sums as realized are in addition to the amount pro24 vided for in ‘‘Construction, major projects’’ and ‘‘Con25 struction, minor projects’’. 
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1 MEDICAL AND PROSTHETIC RESEARCH

2 For necessary expenses in carrying out programs of 

3 medical and prosthetic research and development as au4 thorized by chapter 73 of title 38, United States Code, 

5 to remain available until September 30, 2006, 

6 $415,000,000, plus reimbursements: Provided, That no 

7 appropriations from this account shall be available for the 

8 purchase of any site for or toward the construction of any 

9 new hospital or home: Provided further, That no appro10 priations in this account shall be available for hospitaliza11 tion or examination of any persons (except beneficiaries 

12 entitled under the laws bestowing such benefits to vet13 erans, and persons receiving such treatment under 5 

14 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless reim15 bursement of cost is made to the ‘‘Medical care’’ account 

16 at such rates as may be fixed by the Secretary of Veterans 

17 Affairs: Provided further, That no appropriations in this 

18 account shall be available to enter into any new lease of 

19 real property if the estimated annual rental is more than 

20 $300,000 unless the Secretary submits a report which the 

21 Committees on Appropriations of the Congress approve 

22 within 30 days following the date on which the report is 

23 received: Provided further, That amounts deducted from 

24 enhanced-use lease proceeds to reimburse an account for 

25 expenses incurred by that account during a prior fiscal 
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1 year for providing enhanced-use lease services, may be ob2 ligated during the fiscal year in which the proceeds are 

3 received. 

4 MEDICAL ADMINISTRATION AND MISCELLANEOUS

5 OPERATING EXPENSES

6 For necessary expenses in the administration of the 

7 medical, hospital, nursing home, domiciliary, construction, 

8 supply and research activities, as authorized by law; for 

9 other services authorized by 5 U.S.C. 3109 including hire 

10 of passenger motor vehicles; lease of a facility or land or 

11 both; and uniforms or allowances therefor, as authorized 

12 by 5 U.S.C. 5901–5902; administrative expenses in sup13 port of capital policy activities, $87,000,000, of which 

14 $4,350,000 shall be available until September 30, 2006, 

15 plus reimbursements: Provided, That technical and con16 sulting services offered by the Facilities Management 

17 Field Support Service, including project management and 

18 real property administration (including leases, site acquisi19 tion and disposal activities directly supporting projects), 

20 shall be provided to Department of Veterans Affairs com21 ponents only on a reimbursable basis, and such amounts 

22 will remain available until September 30, 2006: Provided 

23 further, That no appropriations from this account shall be 

24 available for the purchase of any site for or toward the 

25 construction of any new hospital or home: Provided fur26 ther, That no appropriations in this account shall be avail-
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1 able for hospitalization or examination of any persons (ex2 cept beneficiaries entitled under the laws bestowing such 

3 benefits to veterans, and persons receiving such treatment 

4 under 5 U.S.C.7901–7904 or 42 U.S.C. 5141–5204), un5 less reimbursement of cost is made to the ‘‘Medical care’’ 

6 account at such rates as may be fixed by the Secretary 

7 of Veterans Affairs: Provided further, That no appropria8 tions in this account shall be available to enter into any 

9 new lease of real property if the estimated annual rental 

10 is more than $300,000 unless the Secretary submits a re11 port which the Committees on Appropriations of the Con12 gress approve within 30 days following the date on which 

13 the report is received: Provided further, That amounts de14 ducted from enhanced-use lease proceeds to reimburse an 

15 account for expenses incurred by that account during a 

16 prior fiscal year for providing enhanced-use lease services, 

17 may be obligated during the fiscal year in which the pro18 ceeds are received. 

19 DEPARTMENTAL ADMINISTRATION

20 GENERAL OPERATING EXPENSES

21 For necessary operating expenses of the Department 

22 of Veterans Affairs, not otherwise provided for, including 

23 administrative expenses in support of Department-wide 

24 capital planning, management and policy activities, uni25 forms or allowances therefor; not to exceed $25,000 for 
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1 official reception and representation expenses; hire of pas2 senger motor vehicles; and reimbursement of the General 

3 Services Administration for security guard services, and 

4 the Department of Defense for the cost of overseas em5 ployee mail, $1,375,000,000: Provided, That expenses for 

6 services and assistance authorized under 38 U.S.C. 

7 3104(a)(1), (2), (5), and (11) that the Secretary deter8 mines are necessary to enable entitled veterans: (1) to the 

9 maximum extent feasible, to become employable and to ob10 tain and maintain suitable employment; or (2) to achieve 

11 maximum independence in daily living, shall be charged 

12 to this account: Provided further, That the Veterans Bene13 fits Administration shall be funded at not less than 

14 $1,086,250,000: Provided further, That of the funds made 

15 available under this heading, not to exceed $69,000,000 

16 shall be available for obligation until September 30, 2006: 

17 Provided further, That from the funds made available 

18 under this heading, the Veterans Benefits Administration 

19 may purchase up to two passenger motor vehicles for use 

20 in operations of that Administration in Manila, Phil21 ippines: Provided further, That no appropriations from 

22 this account shall be available for the purchase of any site 

23 for or toward the construction of any new hospital or 

24 home: Provided further, That no appropriations in this ac25 count shall be available for hospitalization or examination 
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1 of any persons (except beneficiaries entitled under the 

2 laws bestowing such benefits to veterans, and persons re3 ceiving such treatment under 5 U.S.C. 7901–7904 or 42 

4 U.S.C. 5141–5204), unless reimbursement of cost is made 

5 to the ‘‘Medical care’’ account at such rates as may be 

6 fixed by the Secretary of Veterans Affairs: Provided fur7 ther, That, notwithstanding any other provision of law, 

8 during fiscal year 2005, the Secretary of Veterans Affairs 

9 shall, from the National Service Life Insurance Fund (38 

10 U.S.C. 1920), the Veterans’ Special Life Insurance Fund 

11 (38 U.S.C. 1923), and the United States Government Life 

12 Insurance Fund (38 U.S.C. 1955), reimburse this account 

13 for the cost of administration of the insurance programs 

14 financed through those accounts: Provided further, That 

15 reimbursement of funds mentioned in the previous proviso 

16 shall be made only from the surplus earnings accumulated 

17 in an insurance program in fiscal year 2005 that are avail18 able for dividends in that program after claims have been 

19 paid and actuarially determined reserves have been set 

20 aside: Provided further, That if the cost of administration 

21 of an insurance program exceeds the amount of surplus 

22 earning accumulated in that program, reimbursement to 

23 this account shall be made only to the extent of such sur24 plus earnings: Provided further, That the Secretary shall 

25 determine the cost of administration of an insurance pro-
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1 gram for fiscal year 2005 which is properly allocable to 

2 the provision of each insurance program and to the provi3 sion of any total disability income insurance included in 

4 such insurance program: Provided further, That funds 

5 available in this appropriation for fiscal year 2005 shall 

6 be available to reimburse the Office of Resolution Manage7 ment and the Office of Employment Discrimination Com8 plaint Adjudication for all services provided at rates which 

9 will recover actual costs: Provided further, That payments 

10 may be made in advance for services to be furnished by 

11 the Office of Resolution Management and the Office of 

12 Employment Discrimination Complaint Adjudication 

13 based on estimated costs: Provided further, That amounts 

14 received from the aforementioned offices shall be credited 

15 to this account for use by the office that provided the serv16 ice: Provided further, That no appropriations in this ac17 count shall be available to enter into any new lease of real 

18 property if the estimated annual rental is more than 

19 $300,000 unless the Secretary submits a report which the 

20 Committees on Appropriations of the Congress approve 

21 within 30 days following the date on which the report is 

22 received: Provided further, That amounts deducted from 

23 enhanced-use lease proceeds to reimburse an account for 

24 expenses incurred by that account during a prior fiscal 

25 year for providing enhanced-use lease services, may be ob-
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1 ligated during the fiscal year in which the proceeds are 

2 received. 

3 NATIONAL CEMETERY ADMINISTRATION

4 For necessary expenses of the National Cemetery Ad5 ministration for operations and maintenance, not other6 wise provided for, including uniforms or allowances there7 for; cemeterial expenses as authorized by law; purchase 

8 of one passenger motor vehicle for use in cemeterial oper9 ations; and hire of passenger motor vehicles, 

10 $199,000,000; Provided, That of the funds made available 

11 under this heading, not to exceed $9,950,000, shall be 

12 available until September 30, 2006: Provided further, That 

13 no appropriations from this account shall be available for 

14 the purchase of any site for or toward the construction 

15 of any new hospital or home: Provided further, That no 

16 appropriations in this account shall be available to enter 

17 into any new lease of real property if the estimated annual 

18 rental is more than $300,000 unless the Secretary submits 

19 a report which the Committees on Appropriations of the 

20 Congress approve within 30 days following the date on 

21 which the report is received. 

22 OFFICE OF INSPECTOR GENERAL

23 For necessary expenses of the Office of Inspector 

24 General in carrying out the provisions of the Inspector 

25 General Act of 1978, as amended, $65,000,000, to remain 

26 available until September 30, 2006. 
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1 CONSTRUCTION, MAJOR PROJECTS

2 For constructing, altering, extending and improving 

3 any of the facilities including parking projects under the 

4 jurisdiction or for the use of the Department of Veterans 

5 Affairs, or for any of the purposes set forth in sections 

6 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, 

7 and 8122 of title 38, United States Code, including plan8 ning, architectural and engineering services, maintenance 

9 or guarantee period services costs associated with equip10 ment guarantees provided under the project, services of 

11 claims analysts, offsite utility and storm drainage system 

12 construction costs, and site acquisition, where the esti13 mated cost of a project is more than the amount set forth 

14 in 38 U.S.C. 8104(a)(3)(A) or where funds for a project 

15 were made available in a previous major project appropria16 tion, $401,000,000 to remain available until expended, of 

17 which $10,000,000 shall be to make reimbursements as 

18 provided in 41 U.S.C. 612 for claims paid for contract 

19 disputes: Provided, That except for advance planning ac20 tivities, including needs assessments which may or may 

21 not lead to capital investments, and other capital asset 

22 management related activities, such as portfolio develop23 ment and management activities, and investment strategy 

24 studies funded through the advance planning fund and the 

25 planning and design activities funded through the design 
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1 fund and the Capital Asset Realignment for Enhanced 

2 Services (CARES) funds, including needs assessments 

3 which may or may not lead to capital investments, none 

4 of the funds appropriated under this heading shall be used 

5 for any project which has not been approved by the Con6 gress in the budgetary process: Provided further, That 

7 funds provided in this appropriation for fiscal year 2005, 

8 for each approved project (except those for CARES activi9 ties referenced above) shall be obligated: (1) by the award10 ing of a construction documents contract by September 

11 30, 2005; and (2) by the awarding of a construction con12 tract by September 30, 2006: Provided further, That, not13 withstanding any other provision of law, the CARES ac14 tivities may include long-term care, domiciliary care and 

15 outpatient mental health care: Provided further, That, the 

16 Secretary shall provide a report in writing to the Commit17 tees by January 5, 2005, on how such funds, referenced 

18 in the previous proviso are allocated: Provided further, 

19 That the Secretary of Veterans Affairs shall promptly re20 port in writing to the Committees on Appropriations any 

21 approved major construction project in which obligations 

22 are not incurred within the time limitations established 

23 above: Provided further, That no appropriations in this ac24 count shall be available to enter into any new lease of real 

25 property if the estimated annual rental is more than 
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1 $300,000 unless the Secretary submits a report which the 

2 Committees on Appropriations of the Congress approve 

3 within 30 days following the date on which the report is 

4 received: Provided further, That amounts deducted from 

5 enhanced-use lease proceeds to reimburse an account for 

6 expenses incurred by that account during a prior fiscal 

7 year for providing enhanced-use lease services, may be ob8 ligated during the fiscal year in which the proceeds are 

9 received. 

10 CONSTRUCTION, MINOR PROJECTS

11 For constructing, altering, extending, and improving 

12 any of the facilities including parking projects under the 

13 jurisdiction or for the use of the Department of Veterans 

14 Affairs, including planning and assessments of needs 

15 which may lead to capital investments, architectural and 

16 engineering services, maintenance or guarantee period 

17 services costs associated with equipment guarantees pro18 vided under the project, services of claims analysts, offsite 

19 utility and storm drainage system construction costs, and 

20 site acquisition, or for any of the purposes set forth in 

21 sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 

22 8110, 8122, and 8162 of title 38, United States Code, 

23 where the estimated cost of a project is equal to or less 

24 than the amount set forth in 38 U.S.C. 8104(a)(3)(A), 

25 $182,000,000, to remain available until expended, along 

26 with unobligated balances of previous ‘‘Construction, 
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1 minor projects’’ appropriations which are hereby made 

2 available for any project where the estimated cost is less 

3 than the amount set forth in 38 U.S.C. 8104(a)(3)(A): 

4 Provided, That from amounts appropriated under this 

5 heading, additional amounts may be used for CARES ac6 tivities upon notification of and approval by the Commit7 tees on Appropriations: Provided further, That funds in 

8 this account shall be available for: (1) repairs to any of 

9 the nonmedical facilities under the jurisdiction or for the 

10 use of the Department which are necessary because of loss 

11 or damage caused by any natural disaster or catastrophe; 

12 and (2) temporary measures necessary to prevent or to 

13 minimize further loss by such causes: Provided further, 

14 That no appropriations in this account shall be available 

15 to enter into any new lease of real property if the esti16 mated annual rental is more than $300,000 unless the 

17 Secretary submits a report which the Committees on Ap18 propriations of the Congress approve within 30 days fol19 lowing the date on which the report is received: Provided 

20 further, That amounts deducted from enhanced-use lease 

21 proceeds to reimburse an account for expenses incurred 

22 by that account during a prior fiscal year for providing 

23 enhanced-use lease services, may be obligated during the 

24 fiscal year in which the proceeds are received. 
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1 PARKING REVOLVING FUND

2 For the parking revolving fund as authorized by 38 

3 U.S.C. 8109, income from fees collected, to remain avail4 able until expended, which shall be available for all author5 ized expenses except operations and maintenance costs, 

6 which will be funded from ‘‘Medical care’’: Provided, That 

7 no appropriations in this account shall be available to 

8 enter into any new lease of real property if the estimated 

9 annual rental is more than $300,000 unless the Secretary 

10 submits a report which the Committees on Appropriations 

11 of the Congress approve within 30 days following the date 

12 on which the report is received. 

13 GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE

14 FACILITIES

15 For grants to assist States to acquire or construct 

16 State nursing home and domiciliary facilities and to re17 model, modify or alter existing hospital, nursing home and 

18 domiciliary facilities in State homes, for furnishing care 

19 to veterans as authorized by 38 U.S.C. 8131–8137, 

20 $105,000,000, to remain available until expended: Pro21 vided, That no appropriations from this account shall be 

22 available for the purchase of any site for or toward the 

23 construction of any new hospital or home: Provided fur24 ther, That no appropriations in this account shall be avail25 able to enter into any new lease of real property if the 

26 estimated annual rental is more than $300,000 unless the 
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1 Secretary submits a report which the Committees on Ap2 propriations of the Congress approve within 30 days fol3 lowing the date on which the report is received. 

4 GRANTS FOR THE CONSTRUCTION OF STATE VETERANS

5 CEMETERIES

6 For grants to aid States in establishing, expanding, 

7 or improving State veterans cemeteries as authorized by 

8 38 U.S.C. 2408, $32,000,000, to remain available until 

9 expended: Provided, That no appropriations from this ac10 count shall be available for the purchase of any site for 

11 or toward the construction of any new hospital or home: 

12 Provided further, That no appropriations in this account 

13 shall be available to enter into any new lease of real prop14 erty if the estimated annual rental is more than $300,000 

15 unless the Secretary submits a report which the Commit16 tees on Appropriations of the Congress approve within 30 

17 days following the date on which the report is received. 

18 ADMINISTRATIVE PROVISIONS

19 SEC. 101. Notwithstanding any other provision of 

20 law, the Department of Veterans Affairs shall continue the 

21 Franchise fund pilot program authorized to be established 

22 by section 403 of Public Law 103–356 until October 1, 

23 2005: Provided, That the Franchise Fund, established by 

24 title I of Public Law 104–204 to finance the operations 

25 of the Franchise Fund pilot program, shall continue until 

26 October 1, 2005. 
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1 SEC. 102. No appropriations in this Act for the De2 partment of Veterans Affairs shall be available for hos3 pitalization or treatment of any person by reason of eligi4 bility under section 1710(a)(3) of title 38, United States 

5 Code, unless that person has disclosed to the Secretary 

6 of Veterans Affairs, in such form as the Secretary may 

7 require— 

8 (1) current, accurate third-party reimbursement 

9 information for purposes of section 1729 of such 

10 title; and 

11 (2) annual income information for purposes of 

12 section 1722 of such title. 

13 OFFSET

14 In the case of taxpayers with adjusted gross income 

15 in excess of $1,000,000 for calendar year 2004, the 

16 amount of the tax reduction resulting from enactment of 

17 the Jobs and Growth Tax Relief Reconciliation Act of 

18 2003 (Public Law 108–27) and enactment of the Eco19 nomic Growth and Tax Relief Reconciliation Act of 2001 

20 (Public Law 107–16) shall be reduced by 5.1 percent. 

Æ