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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 460 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 460

  To expand and enhance benefits for members of the Armed Forces and 
                their families, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 18, 2005

   Mr. Kerry introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To expand and enhance benefits for members of the Armed Forces and 
                their families, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Strengthening 
America's Armed Forces and Military Family Bill of Rights Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
                     TITLE I--ARMED FORCES MATTERS

Sec. 101. Increase in end strength of the Army.
Sec. 102. Increase in end strength of the Marine Corps.
      TITLE II--BENEFITS FOR MEMBERS OF NATIONAL GUARD AND RESERVE

                    Subtitle A--Health Care Benefits

Sec. 201. TRICARE coverage for members of the Ready Reserve.
Sec. 202. Allowance for continuation of non-TRICARE health benefits 
                            coverage for certain mobilized reserves.
           Subtitle B--Small Business Mobilization Assistance

Sec. 211. Short title. 
Sec. 212. Purpose. 
Sec. 213. National Guard and Reserve business assistance. 
Sec. 214. Veteran entrepreneur loans. 
Sec. 215. Grant assistance for military reservists' small businesses. 
         Subtitle C--Other Mobilization Assistance and Benefits

Sec. 221. Credit for income differential for employment of activated 
                            military reservist and replacement 
                            personnel.
                  TITLE III--MILITARY FAMILY BENEFITS

Sec. 301. Designation of overpayments to support military families.
Sec. 302. Penalty-free withdrawals from retirement plans for 
                            individuals called to certain active duty.
          TITLE IV--DEATH GRATUITY AND OTHER SURVIVOR BENEFITS

Sec. 401. Increased amount of death gratuity.
Sec. 402. Death gratuity excludable from Federal income taxation.
Sec. 403. Extension of period of temporary continuation of basic 
                            allowance for housing for dependents of 
                            members of the Armed Forces who die on 
                            active duty.
                       TITLE V--VETERANS BENEFITS

Sec. 501. Post-traumatic stress disorder treatment for veterans of 
                            service in Afghanistan and Iraq and the war 
                            on terror.
                      TITLE VI--REVENUE PROVISION

Sec. 601. Partial repeal of rate reduction in the highest income tax 
                            bracket.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Nearly 150,000 members of the Armed Forces are engaged 
        in the war in Iraq.
            (2) More than 15,000 members of the Armed Forces are in 
        Afghanistan fighting al Qaeda and Taliban remnants.
            (3) Several thousand members of the Armed Forces are 
        deployed in the Balkans.
            (4) Thousands of other members of the Armed Forces are 
        engaged in critical missions around the world to keep the 
        Nation secure.
            (5) More than 180,000 members of the National Guard and 
        Reserves are mobilized and deployed around the world to help 
        keep the Nation secure.
            (6) Each member of the Armed Forces is supported by a 
        network of families and loved ones who sacrifice in their own 
        right for the Nation.
            (7) Military families are partners with members of the 
        Armed Forces in the defense and security of the Nation.

                     TITLE I--ARMED FORCES MATTERS

SEC. 101. INCREASE IN END STRENGTH OF THE ARMY.

    (a) Strength for Fiscal Year 2006.--Effective on October 1, 2005, 
section 691(b)(1) of title 10, United States Code, is amended by 
striking ``502,400'' and inserting ``522,400''.
    (b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on 
October 1, 2006, section 691(b)(1) of such title is amended by striking 
``522,400'' and inserting ``532,400''.

SEC. 102. INCREASE IN END STRENGTH OF THE MARINE CORPS.

    (a) Strength for Fiscal Year 2006.--Effective on October 1, 2005, 
section 691(b)(3) of title 10, United States Code, is amended by 
striking ``178,000'' and inserting ``183,000''.
    (b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on 
October 1, 2006, section 691(b)(3) of title 10, United States Code, is 
amended by striking ``183,000'' and inserting ``188,000''.

      TITLE II--BENEFITS FOR MEMBERS OF NATIONAL GUARD AND RESERVE

                    Subtitle A--Health Care Benefits

SEC. 201. TRICARE COVERAGE FOR MEMBERS OF THE READY RESERVE.

    (a) Eligibility.--Section 1076b of title 10, United States Code, is 
amended to read as follows:
``Sec. 1076b. TRICARE program: coverage for members of the Ready 
              Reserve
    ``(a) Eligibility.--Members of the Selected Reserve of the Ready 
Reserve of a reserve component of the armed forces and members of the 
Individual Ready Reserve described in subsection 10144(b) of this title 
are eligible, subject to subsection (h)(1), to enroll in the following 
TRICARE program options:
            ``(1) TRICARE Prime.
            ``(2) TRICARE Standard.
    ``(b) Types of Coverage.--(1) A member eligible under subsection 
(a) may enroll for either of the following types of coverage:
            ``(A) Self alone coverage.
            ``(B) Self and family coverage.
    ``(2) An enrollment by a member for self and family covers the 
member and the dependents of the member who are described in 
subparagraph (A), (D), or (I) of section 1072(2) of this title.
    ``(c) Open Enrollment Periods.--The Secretary of Defense shall 
provide for at least one open enrollment period each year. During an 
open enrollment period, a member eligible under subsection (a) may 
enroll in the TRICARE program or change or terminate an enrollment in 
the TRICARE program.
    ``(d) Scope of Care.--(1) A member and the dependents of a member 
enrolled in the TRICARE program under this section shall be entitled to 
the same benefits under this chapter as a member of the uniformed 
services on active duty or a dependent of such a member, respectively.
    ``(2) Section 1074(c) of this title shall apply with respect to a 
member enrolled in the TRICARE program under this section.
    ``(e) Premiums.--(1) The Secretary of Defense shall charge premiums 
for coverage pursuant to enrollments under this section. The Secretary 
shall prescribe for each of the TRICARE program options referred to in 
subsection (a) a premium for self alone coverage and a premium for self 
and family coverage.
    ``(2) The monthly amount of the premium in effect for a month for a 
type of coverage under this section shall be the amount equal to 28 
percent of the total amount determined by the Secretary on an 
appropriate actuarial basis as being reasonable for the coverage.
    ``(3) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay payable to the member under 
section 204 of title 37 or from compensation payable to the member 
under section 206 of such title. The Secretary shall prescribe the 
requirements and procedures applicable to the payment of premiums by 
members not entitled to such basic pay or compensation.
    ``(4) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section for such 
fiscal year.
    ``(f) Other Charges.--A person who receives health care pursuant to 
an enrollment in a TRICARE program option under this section, including 
a member who receives such health care, shall be subject to the same 
deductibles, copayments, and other nonpremium charges for health care 
as apply under this chapter for health care provided under the same 
TRICARE program option to dependents described in subparagraph (A), 
(D), or (I) of section 1072(2) of this title.
    ``(g) Termination of Enrollment.--(1) A member enrolled in the 
TRICARE program under this section may terminate the enrollment only 
during an open enrollment period provided under subsection (c), except 
as provided in subsection (h)(2).
    ``(2) An enrollment of a member for self alone or for self and 
family under this section shall terminate on the first day of the first 
month beginning after the date on which the member ceases to be 
eligible under subsection (a).
    ``(3) The enrollment of a member under this section may be 
terminated on the basis of failure to pay the premium charged the 
member under this section.
    ``(h) Relationship to Transition TRICARE Coverage Upon Separation 
From Active Duty.--(1) A member may not enroll in the TRICARE program 
under this section while entitled to transitional health care under 
subsection (a) of section 1145 of this title or while authorized to 
receive health care under subsection (c) of such section.
    ``(2) A member who enrolls in the TRICARE program under this 
section within 90 days after the date of the termination of the 
member's entitlement or eligibility to receive health care under 
subsection (a) or (c) of section 1145 of this title may terminate the 
enrollment at any time within one year after the date of the 
enrollment.
    ``(i) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for 
the administration of this section.''.
    (b) Definitions.--
            (1) Tricare options.--Section 1072 of title 10, United 
        States Code, is amended by adding at the end the following new 
        paragraphs:
            ``(10) The term `TRICARE Prime' means the managed care 
        option of the TRICARE program.
            ``(11) The term `TRICARE Standard' means the Civilian 
        Health and Medical Program of the Uniformed Services option 
        under the TRICARE program.''.
            (2) Conforming amendments.--
                    (A) Section 1076d(f) of such title is amended--
                            (i) by striking ``(f) Definitions.--'' and 
                        all that follows through ``(1) The'' and 
                        inserting ``(f) Immediate Family Defined.--In 
                        this section, the''; and
                            (ii) by striking paragraph (2).
                    (B) Section 1097a(f) of such title is amended by 
                striking ``Definitions.--In this section:'' and all 
                that follows through ``(2) The term'' and inserting 
                ``Catchment Area Defined.--In this section, the term''.
    (c) Period for Implementation.--Section 1076b of title 10, United 
States Code (as added by subsection (a)), shall apply with respect to 
months that begin on or after the date that is 180 days after the date 
of the enactment of this Act.
    (d) Coordination With Overlapping Authority.--
            (1) Repeal.--Effective one year after the date of the 
        enactment of this Act--
                    (A) section 1076d of title 10, United States Code, 
                is repealed; and
                    (B) the table of sections at the beginning of 
                chapter 55 of such title is amended by striking the 
                item relating to section 1076d.
            (2) Transition coverage.--The Secretary of Defense shall 
        provide for an orderly transition to TRICARE coverage under 
        section 1076b of title 10, United States Code (as amended by 
        subsection (a)), for persons enrolled for TRICARE coverage 
        under section 1076d of such title before the repeal of such 
        section takes effect under paragraph (1)(A).

SEC. 202. ALLOWANCE FOR CONTINUATION OF NON-TRICARE HEALTH BENEFITS 
              COVERAGE FOR CERTAIN MOBILIZED RESERVES.

    (a) Payment of Premiums.--
            (1) Requirement to pay premiums.--Chapter 55 of title 10, 
        United States Code, is amended by inserting after section 1078a 
the following new section:
``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage 
              for certain Reserves called or ordered to active duty and 
              their dependents
    ``(a) Payment of Premiums.--The Secretary concerned shall pay the 
applicable premium to continue in force any qualified health benefits 
plan coverage for an eligible reserve component member for the benefits 
coverage continuation period if timely elected by the member in 
accordance with regulations prescribed under subsection (j).
    ``(b) Eligible Member.--A member of a reserve component is eligible 
for payment of the applicable premium for continuation of qualified 
health benefits plan coverage under subsection (a) while serving on 
active duty pursuant to a call or order issued under a provision of law 
referred to in section 101(a)(13)(B) of this title during a war or 
national emergency declared by the President or Congress.
    ``(c) Qualified Health Benefits Plan Coverage.--For the purposes of 
this section, health benefits plan coverage for a member called or 
ordered to active duty is qualified health benefits plan coverage if--
            ``(1) the coverage was in force on the date on which the 
        Secretary notified the member that issuance of the call or 
        order was pending or, if no such notification was provided, the 
        date of the call or order;
            ``(2) on such date, the coverage applied to the member and 
        dependents of the member described in subparagraph (A), (D), or 
        (I) of section 1072(2) of this title; and
            ``(3) the coverage has not lapsed.
    ``(d) Applicable Premium.--The applicable premium payable under 
this section for continuation of health benefits plan coverage in the 
case of a member is the amount of the premium payable by the member for 
the coverage of the member and dependents.
    ``(e) Maximum Amount.--The total amount that may be paid for the 
applicable premium of a health benefits plan for a member under this 
section in a fiscal year may not exceed the amount determined by 
multiplying--
            ``(1) the sum of one plus the number of the member's 
        dependents covered by the health benefits plan, by
            ``(2) the per capita cost of providing TRICARE coverage and 
        benefits for dependents under this chapter for such fiscal 
        year, as determined by the Secretary of Defense.
    ``(f) Benefits Coverage Continuation Period.--The benefits coverage 
continuation period under this section for qualified health benefits 
plan coverage in the case of a member called or ordered to active duty 
is the period that--
            ``(1) begins on the date of the call or order; and
            ``(2) ends on the earlier of the date on which--
                    ``(A) the member's eligibility for transitional 
                health care under section 1145(a) of this title 
                terminates under paragraph (3) of such section; or
                    ``(B) the member elects to terminate the continued 
                qualified health benefits plan coverage of the 
                dependents of the member.
    ``(g) Extension of Period of COBRA Coverage.--Notwithstanding any 
other provision of law--
            ``(1) any period of coverage under a COBRA continuation 
        provision (as defined in section 9832(d)(1) of the Internal 
        Revenue Code of 1986) for a member under this section shall be 
        deemed to be equal to the benefits coverage continuation period 
        for such member under this section; and
            ``(2) with respect to the election of any period of 
        coverage under a COBRA continuation provision (as so defined), 
        rules similar to the rules under section 4980B(f)(5)(C) of such 
        Code shall apply.
    ``(h) Nonduplication of Benefits.--A dependent of a member who is 
eligible for benefits under qualified health benefits plan coverage 
paid on behalf of a member by the Secretary concerned under this 
section is not eligible for benefits under the TRICARE program during a 
period of the coverage for which so paid.
    ``(i) Revocability of Election.--A member who makes an election 
under subsection (a) may revoke the election. Upon such a revocation, 
the member's dependents shall become eligible for benefits under the 
TRICARE program as provided for under this chapter.
    ``(j) Regulations.--The Secretary of Defense shall prescribe 
regulations for carrying out this section. The regulations shall 
include such requirements for making an election of payment of 
applicable premiums as the Secretary considers appropriate.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for 
                            certain Reserves called or ordered to 
                            active duty and their dependents.''.
    (b) Applicability.--Section 1078b of title 10, United States Code 
(as added by subsection (a)), shall apply with respect to calls or 
orders of members of reserve components of the Armed Forces to active 
duty as described in subsection (b) of such section, that are issued by 
the Secretary of a military department on or after the date of the 
enactment of this Act.

           Subtitle B--Small Business Mobilization Assistance

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``National Reservist Enterprise 
Transition and Sustainability Act of 2005''.

SEC. 212. PURPOSE.

    The purpose of this subtitle is to establish a program to--
            (1) provide managerial, financial, planning, development, 
        technical, and regulatory assistance to small business concerns 
        owned and operated by members of the National Guard and 
        Reserve;
            (2) provide managerial, financial, planning, development, 
        technical, and regulatory assistance to the temporary heads of 
        small business concerns owned and operated by members of the 
        National Guard and Reserve;
            (3) create a partnership between the Small Business 
        Administration, the Department of Defense, and the Department 
        of Veterans Affairs to assist small business concerns owned and 
        operated by members of the National Guard and Reserve;
            (4) utilize the service delivery network of Small Business 
        Development Centers to expand the access of small business 
        concerns owned and operated by members of the National Guard 
        and Reserve to programs providing business management, 
        development, financial, procurement, technical, regulatory, and 
        marketing assistance;
            (5) utilize the service delivery network of Small Business 
        Development Centers to quickly respond to an activation of 
        members of the National Guard and Reserve that own and operate 
        small business concerns; and
            (6) utilize the service delivery network of Small Business 
        Development Centers to assist members of the National Guard and 
        Reserve that own and operate small business concerns in 
        preparing for future military activations.

SEC. 213. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.

    (a) In General.--Section 21(a)(1) of the Small Business Act (15 
U.S.C. 648(a)(1)) is amended by adding ``any Small Business Development 
Center providing enterprise transition and sustainability assistance to 
members of the National Guard or Reserve under section 37,'' after 
``any women's business center operating pursuant to section 29,''.
    (b) Program.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended
            (1) by redesignating section 37 (15 U.S.C. 631 note) as 
        section 38; and
            (2) by inserting after section 36 the following:

``SEC. 37. NATIONAL GUARD AND RESERVE ENTERPRISE TRANSITION AND 
              SUSTAINABILITY.

    ``(a) In General.--The Administrator shall establish a program to 
provide business planning assistance to small business concerns owned 
and operated by members of the National Guard and Reserve.
    ``(b) Definitions.--In this section--
            ``(1) the terms `activated' and `activation' mean having 
        received an order placing a member of the National Guard and 
        Reserve on active duty, as defined by section 101(1) of title 
        10, United States Code;
            ``(2) the term `Administrator' means the Administrator of 
        the Small Business Administration, acting through the Associate 
        Administrator for Small Business Development Centers;
            ``(3) the term `Association' means the association 
        established pursuant to section 21(a)(3)(A);
            ``(4) the term `enterprise transition and sustainability 
        assistance' means assistance provided by a Small Business 
        Development Center to a small business concern owned and 
        operated by a member of the National Guard and Reserve, who has 
        been activated or is likely to be activated in the next 12 
        months, to develop and implement a business strategy for the 
        period while the owner is on active duty and six months 
        following the return of the owner;
            ``(5) the term `member of the National Guard and Reserve' 
        means any person who is currently--
                    ``(A) a member of a reserve component of the armed 
                forces, as defined by section 10101 of title 10, United 
                States Code; and
                    ``(B) on active status, as defined by section 
                101(d)(4) of title 10, United States Code;
            ``(6) the term `Small Business Development Center' means a 
        small business development center as described in section 21 of 
        the Small Business Act (15 U.S.C. 648); and
            ``(7) the term `State' means each of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, the Virgin Islands, American Samoa, and Guam.
    ``(c) Authority.--The Administrator may award grants, in accordance 
with the regulations developed pursuant to subsection (d), to eligible 
Small Business Development Centers to assist small business concerns 
owned and operated by members of the National Guard and Reserve by--
            ``(1) providing management, development, financing, 
        procurement, technical, regulatory, and marketing assistance;
            ``(2) providing access to information and resources, 
        including current Federal and State business assistance 
        programs;
            ``(3) distributing contact information provided by the 
        Department of Defense regarding activated members of the 
        National Guard and Reserve to corresponding State directors;
            ``(4) offering free, one-on-one, in-depth counseling 
        regarding management, development, financing, procurement, 
        regulations, and marketing;
            ``(5) assisting in developing a long-term plan for possible 
        future activation; and
            ``(6) providing enterprise transition and sustainability 
        assistance.
    ``(d) Rulemaking.--
            ``(1) In general.--The Administrator, in consultation with 
        the Association and after notice and an opportunity for 
        comment, shall promulgate regulations to carry out the 
        provisions of this section.
            ``(2) Deadline.--The Administrator shall promulgate final 
        regulations not later than 180 days of the date of enactment of 
        the National Reservist Enterprise Transition and Sustainability 
        Act of 2005.
            ``(3) Contents.--The regulations developed by the 
        Administrator under this subsection shall establish--
                    ``(A) procedures for identifying, in consultation 
                with the Department of Defense, States that have had a 
                recent activation of members of the National Guard and 
                Reserve;
                    ``(B) priorities for the types of assistance to be 
                provided under the program authorized by this section;
                    ``(C) standards relating to educational, technical, 
                and support services to be provided by a grantee;
                    ``(D) standards relating to any national service 
                delivery and support function to be provided by a 
                grantee;
                    ``(E) standards relating to any work plan that the 
                Administrator may require a grantee to develop; and
                    ``(F) standards relating to the educational, 
                technical, and professional competency of any expert or 
                other assistance provider to whom a small business 
                concern may be referred for assistance by a grantee.
    ``(e) Application.--
            ``(1) In general.--Each eligible Small Business Development 
        Center desiring a grant under this section shall submit an 
        application to the Administrator at such time, in such manner, 
        and accompanied by such information as the Administrator may 
        reasonably require.
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall describe--
                    ``(A) the activities for which the applicant seeks 
                assistance under this section; and
                    ``(B) how the applicant plans to allocate funds 
                within its network.
            ``(3) Matching not required.--Subparagraphs (A) and (B) of 
        section 21(a)(4), requiring matching funds, shall not apply to 
        grants awarded under this section.
            ``(4) Eligibility.--A Small Business Development Center is 
        eligible to receive a grant under this section if it is 
        accredited under section 21(k).
    ``(f) Award of Grants.--
            ``(1) Deadline.--The Administrator shall award grants not 
        later than 60 days after the promulgation of final rules and 
        regulations under subsection (d).
            ``(2) Amount.--Each Small Business Development Center 
        awarded a grant under this section shall receive a grant in an 
        amount--
                    ``(A) not less than $150,000 per fiscal year; and
                    ``(B) not greater than $500,000 per fiscal year.
    ``(g) Report.--
            ``(1) In general.--The Government Accountability Office 
        shall--
                    ``(A) initiate an evaluation of the program not 
                later than 30 months after the disbursement of the 
                first grant under the program; and
                    ``(B) submit a report not later than 6 months after 
                the initiation of the evaluation under paragraph (1) 
                to--
                            ``(i) the Administrator;
                            ``(ii) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(iii) the Committee on Small Business of 
                        the House of Representatives.
            ``(2) Contents.--The report under paragraph (1) shall--
                    ``(A) address the results of the evaluation; and
                    ``(B) recommend changes to law, if any, that it 
                believes would be necessary or advisable to achieve the 
                goals of this section.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $5,000,000 for the first fiscal year 
                beginning after the date of enactment of the National 
                Reservist Enterprise Transition and Sustainability Act 
                of 2005;
                    ``(B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph (A)
            ``(2) Limitation on use of other funds.--The Administrator 
        may carry out the program authorized by this section only with 
        amounts appropriated in advance specifically to carry out this 
        section.''.

SEC. 214. VETERAN ENTREPRENEUR LOANS.

    (a) Authorization.--The first sentence of section 7(a) of the Small 
Business Act (15 U.S.C. 636) is amended by inserting ``new veteran 
entrepreneurs under paragraph (32) and'' after ``loans to any qualified 
small business concern, including'';
    (b) Specifications.--Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended by adding after paragraph 31 the following:
            ``(32) Veteran entrepreneur loans.--Each loan to a new 
        veteran entrepreneur under this subsection shall--
                    ``(A) be made directly to the new veteran 
                entrepreneur;
                    ``(B) not exceed $100,000; and
                    ``(C) be made at the same interest rate as loans 
                made under the second proviso of the unnumbered 
                paragraph of subsection (b).''.
            (3) Definitions.--Section 3(q) of the Small Business Act 
        (15 U.S.C. 632(q)) is amended by adding after paragraph (4) the 
        following:
            ``(5) New veteran entrepreneur.--The term `new veteran 
        entrepreneur' means a person who--
                    ``(A) is a veteran;
                    ``(B) is establishing a new small business concern 
                or established a new small business concern within the 
                6 month period preceding the request for a loan; and
                    ``(C) does not own or control any other 
                business.''.

SEC. 215. GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES.

    (a) Authorization of Grants.--Section 7(b)(3)(B) of the Small 
Business Act (15 U.S.C. 636(b)(3)(B)) is amended by inserting ``or 
grants'' after ``or a deferred basis)''.
    (b) Grant Specifications.--Section 7(b)(3) of the Small Business 
Act (15 U.S.C. 636(b)(3)) is amended by inserting after subparagraph 
(F) the following:
            ``(G) Grants made under subparagraph (B)--
                    ``(i) may be awarded in addition to any loan made 
                under subparagraph (B);
                    ``(ii) shall not exceed $25,000; and
                    ``(iii) shall be made only to a small business 
                concern--
                            ``(I) that provides a business plan 
                        demonstrating viability for not less than 3 
                        future years;
                            ``(II) with 10 or fewer employees;
                            ``(III) that has not received another grant 
                        under subparagraph (B) in the previous 2 
                        years.''.
    (c) Authorization of Appropriations.--Section 20(e)(2) of the Small 
Business Act (15 U.S.C. 631 note) is amended by inserting after 
subparagraph (B) the following:
                    ``(C) Grant assistance for military reservists' 
                small businesses.--There are authorized to be 
                appropriated for grants under section 7(b)(3)(B)--
                            ``(i) $5,000,000 for the first fiscal year 
                        beginning after the date of enactment of the 
                        National Reservist Enterprise Transition and 
                        Sustainability Act of 2005; and
                            ``(ii) $5,000,000 for each of the 2 fiscal 
                        years following the fiscal year described in 
                        clause (i).''.

         Subtitle C--Other Mobilization Assistance and Benefits

SEC. 221. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF ACTIVATED 
              MILITARY RESERVIST AND REPLACEMENT PERSONNEL.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY RESERVISTS.

    ``(a) General Rule.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
sum of--
            ``(1) in the case of a small business employer, the 
        employment credit with respect to all qualified employees and 
        qualified replacement employees of the taxpayer, plus
            ``(2) the self-employment credit of a qualified self-
        employed taxpayer.
    ``(b) Employment Credit.--For purposes of this section--
            ``(1) Qualified employees.--
                    ``(A) In general.--The employment credit with 
                respect to a qualified employee of the taxpayer for any 
                taxable year is equal to 50 percent of the lesser of--
                            ``(i) the excess, if any, of--
                                    ``(I) the qualified employee's 
                                average daily qualified compensation 
                                for the taxable year, over
                                    ``(II) the average daily military 
                                pay and allowances received by the 
                                qualified employee during the taxable 
                                year, while participating in qualified 
                                reserve component duty to the exclusion 
                                of the qualified employee's normal 
                                employment duties for the number of 
                                days the qualified employee 
                                participates in qualified reserve 
                                component duty during the taxable year, 
                                including time spent in a travel 
                                status, or
                            ``(ii) $30,000.
                The employment credit, with respect to all qualified 
                employees, is equal to the sum of the employment 
                credits for each qualified employee under this 
                subsection.
                    ``(B) Average daily qualified compensation and 
                average daily military pay and allowances.--As used 
                with respect to a qualified employee--
                            ``(i) the term `average daily qualified 
                        compensation' means the qualified compensation 
                        of the qualified employee for the taxable year 
                        divided by the difference between--
                                    ``(I) 365, and
                                    ``(II) the number of days the 
                                qualified employee participates in 
                                qualified reserve component duty during 
                                the taxable year, including time spent 
                                in a travel status, and
                            ``(ii) the term `average daily military pay 
                        and allowances' means--
                                    ``(I) the amount paid to the 
                                qualified employee during the taxable 
                                year as military pay and allowances on 
                                account of the qualified employee's 
                                participation in qualified reserve 
                                component duty, divided by
                                    ``(II) the total number of days the 
                                qualified employee participates in 
                                qualified reserve component duty, 
                                including time spent in travel status.
                    ``(C) Qualified compensation.--When used with 
                respect to the compensation paid or that would have 
                been paid to a qualified employee for any period during 
                which the qualified employee participates in qualified 
                reserve component duty, the term `qualified 
                compensation' means--
                            ``(i) compensation which is normally 
                        contingent on the qualified employee's presence 
                        for work and which would be deductible from the 
                        taxpayer's gross income under section 162(a)(1) 
                        if the qualified employee were present and 
                        receiving such compensation,
                            ``(ii) compensation which is not 
                        characterized by the taxpayer as vacation or 
                        holiday pay, or as sick leave or pay, or as any 
                        other form of pay for a nonspecific leave of 
                        absence, and with respect to which the number 
                        of days the qualified employee participates in 
                        qualified reserve component duty does not 
                        result in any reduction in the amount of 
                        vacation time, sick leave, or other nonspecific 
                        leave previously credited to or earned by the 
                        qualified employee, and
                            ``(iii) group health plan costs (if any) 
                        with respect to the qualified employee.
                    ``(D) Qualified employee.--The term `qualified 
                employee' means a person who--
                            ``(i) has been an employee of the taxpayer 
                        for the 91-day period immediately preceding the 
                        period during which the employee participates 
                        in qualified reserve component duty, and
                            ``(ii) is a member of the Ready Reserve of 
                        a reserve component of an Armed Force of the 
                        United States as defined in sections 10142 and 
                        10101 of title 10, United States Code.
            ``(2) Qualified replacement employees.--
                    ``(A) In general.--The employment credit with 
                respect to a qualified replacement employee of the 
                taxpayer for any taxable year is equal to 50 percent of 
                the lesser of--
                            ``(i) the individual's qualified 
                        compensation attributable to service rendered 
                        as a qualified replacement employee, or
                            ``(ii) $12,000.
                The employment credit, with respect to all qualified 
                replacement employees, is equal to the sum of the 
                employment credits for each qualified replacement 
                employee under this subsection.
                    ``(B) Qualified compensation.--When used with 
                respect to the compensation paid to a qualified 
                replacement employee, the term `qualified compensation' 
                means--
                            ``(i) compensation which is normally 
                        contingent on the qualified replacement 
                        employee's presence for work and which is 
                        deductible from the taxpayer's gross income 
                        under section 162(a)(1),
                            ``(ii) compensation which is not 
                        characterized by the taxpayer as vacation or 
                        holiday pay, or as sick leave or pay, or as any 
                        other form of pay for a nonspecific leave of 
                        absence, and
                            ``(iii) group health plan costs (if any) 
                        with respect to the qualified replacement 
                        employee.
                    ``(C) Qualified replacement employee.--The term 
                `qualified replacement employee' means an individual 
                who is hired to replace a qualified employee or a 
                qualified self-employed taxpayer, but only with respect 
                to the period during which such employee or taxpayer 
                participates in qualified reserve component duty, 
                including time spent in travel status.
    ``(c) Self-Employment Credit.--For purposes of this section--
            ``(1) In general.--The self-employment credit of a 
        qualified self-employed taxpayer for any taxable year is equal 
        to 50 percent of the lesser of--
                    ``(A) the excess, if any, of--
                            ``(i) the self-employed taxpayer's average 
                        daily self-employment income for the taxable 
                        year over
                            ``(ii) the average daily military pay and 
                        allowances received by the taxpayer during the 
                        taxable year, while participating in qualified 
                        reserve component duty to the exclusion of the 
                        taxpayer's normal self-employment duties for 
                        the number of days the taxpayer participates in 
                        qualified reserve component duty during the 
                        taxable year, including time spent in a travel 
                        status, or
                    ``(B) $30,000.
            ``(2) Average daily self-employment income and average 
        daily military pay and allowances.--As used with respect to a 
        self-employed taxpayer--
                    ``(A) the term `average daily self-employment 
                income' means the self-employment income (as defined in 
                section 1402(b)) of the taxpayer for the taxable year 
                plus the amount paid for insurance which constitutes 
                medical care for the taxpayer for such year (within the 
                meaning of section 162(l)) divided by the difference 
                between--
                            ``(i) 365, and
                            ``(ii) the number of days the taxpayer 
                        participates in qualified reserve component 
                        duty during the taxable year, including time 
                        spent in a travel status, and
                    ``(B) the term `average daily military pay and 
                allowances' means--
                            ``(i) the amount paid to the taxpayer 
                        during the taxable year as military pay and 
                        allowances on account of the taxpayer's 
                        participation in qualified reserve component 
                        duty, divided by
                            ``(ii) the total number of days the 
                        taxpayer participates in qualified reserve 
                        component duty, including time spent in travel 
                        status.
            ``(3) Qualified self-employed taxpayer.--The term 
        `qualified self-employed taxpayer' means a taxpayer who--
                    ``(A) has net earnings from self-employment (as 
                defined in section 1402(a)) for the taxable year, and
                    ``(B) is a member of the Ready Reserve of a reserve 
                component of an Armed Force of the United States.
    ``(d) Credit in Addition to Deduction.--The employment credit or 
the self-employment credit provided in this section is in addition to 
any deduction otherwise allowable with respect to compensation actually 
paid to a qualified employee, qualified replacement employee, or 
qualified self-employed taxpayer during any period the qualified 
employee or qualified self-employed taxpayer participates in qualified 
reserve component duty to the exclusion of normal employment duties.
    ``(e) Coordination With Other Credits.--The amount of credit 
otherwise allowable under sections 51(a) and 1396(a) with respect to 
any employee shall be reduced by the credit allowed by this section 
with respect to such employee.
    ``(f) Limitations.--
            ``(1) Application with other credits.--The credit allowed 
        under subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the regular tax for the taxable year reduced 
                by the sum of the credits allowable under subpart A and 
                sections 27, 29, and 30, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Disallowance for failure to comply with employment or 
        reemployment rights of members of the reserve components of the 
        armed forces of the united states.--No credit shall be allowed 
        under subsection (a) to a taxpayer for--
                    ``(A) any taxable year, beginning after the date of 
                the enactment of this section, in which the taxpayer is 
under a final order, judgment, or other process issued or required by a 
district court of the United States under section 4323 of title 38 of 
the United States Code with respect to a violation of chapter 43 of 
such title, and
                    ``(B) the 2 succeeding taxable years.
            ``(3) Disallowance with respect to persons ordered to 
        active duty for training.--No credit shall be allowed under 
        subsection (a) to a taxpayer with respect to any period by 
        taking into account any person who is called or ordered to 
        active duty for any of the following types of duty:
                    ``(A) Active duty for training under any provision 
                of title 10, United States Code.
                    ``(B) Training at encampments, maneuvers, outdoor 
                target practice, or other exercises under chapter 5 of 
                title 32, United States Code.
                    ``(C) Full-time National Guard duty, as defined in 
                section 101(d)(5) of title 10, United States Code.
    ``(g) General Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Small business employer.--
                    ``(A) In general.--The term `small business 
                employer' means, with respect to any taxable year, any 
                employer who employed an average of 50 or fewer 
                employees on business days during such taxable year.
                    ``(B) Controlled groups.--For purposes of 
                subparagraph (A), all persons treated as a single 
                employer under subsection (b), (c), (m), or (o) of 
                section 414 shall be treated as a single employer.
            ``(2) Military pay and allowances.--The term `military pay' 
        means pay as that term is defined in section 101(21) of title 
        37, United States Code, and the term `allowances' means the 
        allowances payable to a member of the Armed Forces of the 
        United States under chapter 7 of that title.
            ``(3) Qualified reserve component duty.--The term 
        `qualified reserve component duty' includes only active duty 
        performed, as designated in the reservist's military orders, in 
        support of a contingency operation as defined in section 
        101(a)(13) of title 10, United States Code.
            ``(4) Special rules for certain manufacturers.--
                    ``(A) In general.--In the case of any qualified 
                manufacturer--
                            ``(i) subsections (b)(1)(A)(ii) and 
                        (c)(1)(B) shall be applied by substituting 
                        `$40,000' for `$30,000',
                            ``(ii) subsection (b)(2)(A)(ii) shall be 
                        applied by substituting `$20,000' for 
                        `$12,000', and
                            ``(iii) paragraph (1)(A) of this subsection 
                        shall be applied by substituting `100' for 
                        `50'.
                    ``(B) Qualified manufacturer.--For purposes of this 
                paragraph, the term `qualified manufacturer' means any 
                person if--
                            ``(i) the primary business of such person 
                        is classified in sector 31, 32, or 33 of the 
                        North American Industrial Classification 
                        System, and
                            ``(ii) all of such person's facilities 
                        which are used for production in such business 
                        are located in the United States.
            ``(5) Carryback and carryforward allowed.--
                    ``(A) In general.--If the credit allowable under 
                subsection (a) for a taxable year exceeds the amount of 
                the limitation under subsection (f)(1) for such taxable 
                year (in this paragraph referred to as the `unused 
                credit year'), such excess shall be a credit carryback 
                to each of the 3 taxable years preceding the unused 
                credit year and a credit carryforward to each of the 20 
                taxable years following the unused credit year.
                    ``(B) Rules.--Rules similar to the rules of section 
                39 shall apply with respect to the credit carryback and 
                credit carryforward under subparagraph (A).
            ``(6) Certain rules to apply.--Rules similar to the rules 
        of subsections (c), (d), and (e) of section 52 shall apply.''.
    (b) Conforming Amendment.--Section 55(c)(2) of the Internal Revenue 
Code of 1986 is amended by inserting ``30B(f)(1),'' after 
``30(b)(3),''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end of 30A the following new item:

``Sec. 30B. Employer wage credit for activated military reservists.''.
    (d) Effective Date; Special Rule.--
            (1) Effective date.--The amendments made by this section 
        shall apply to amounts paid after September 11, 2001, in 
        taxable years ending after such date.
            (2) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the amendments made by this 
        section is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this Act by 
        the operation of any law or rule of law (including res 
        judicata), such refund or credit may nevertheless be made or 
        allowed if claim therefor is filed before the close of such 
        period.

                  TITLE III--MILITARY FAMILY BENEFITS

SEC. 301. DESIGNATION OF OVERPAYMENTS TO SUPPORT MILITARY FAMILIES.

    (a) Designation.--
            (1) In general.--Subchapter A of chapter 61 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new part:

  ``PART IX--DESIGNATION OF OVERPAYMENTS TO SUPPORT MILITARY FAMILIES

                              ``Sec. 6097. Designation.

``SEC. 6097. DESIGNATION.

    ``(a) In General.--In the case of an individual, with respect to 
each taxpayer's return for the taxable year of the tax imposed by 
chapter 1, such taxpayer may designate that--
            ``(1) a specified portion (not less than $1 and in whole 
        dollars) of any overpayment of tax for such taxable year, and
            ``(2) any contribution (not less than $1 and in whole 
        dollars) which the taxpayer forwards in money with such return,
be paid over to the American Military Family Relief Fund.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of the tax imposed by chapter 1 for such 
taxable year. Such designation shall be made in such manner as the 
Secretary prescribes by regulations except that such designation shall 
be made either on the first page of the return or on the page bearing 
the taxpayer's signature.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any portion of an overpayment of tax designated under subsection 
(a)(1) shall be treated as--
            ``(1) being refunded to the taxpayer as of the last date 
        prescribed for filing the return of tax imposed by chapter 1 
        (determined without regard to extensions) or, if later, the 
        date the return is filed, and
            ``(2) a contribution made by such taxpayer on such date to 
        the United States.
    ``(d) Termination.--This section shall not apply to designations 
made after December 31, 2009.''.
            (2) Transfers to american military family relief fund.--The 
        Secretary of the Treasury shall, from time to time, transfer to 
        the American Military Family Relief Fund the amounts designated 
        under section 6097 of the Internal Revenue Code of 1986.
            (3) Clerical Amendment.--The table of parts for subchapter 
        A of chapter 61 of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following new item:

                              ``Part IX. Designation of overpayments to 
                                        support military families.''.
    (b) American Military Family Relief Fund.--
            (1) In General.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 (relating to trust fund code) is amended 
        by adding at the end the following new section:

``SEC. 9511. AMERICAN MILITARY FAMILY RELIEF FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the `American Military Family 
Relief Fund', consisting of such amounts as may be appropriated or 
credited to such Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Fund.--There are hereby appropriated to the 
American Military Family Relief Fund amounts equivalent to the amounts 
designated under section 6097.
    ``(c) Expenditures.--
            ``(1) In general.--Amounts in the American Military Family 
        Relief Fund shall be available to the Secretary of Defense for 
        making distributions to, or for the benefit of, individuals and 
        family members of individuals who serve, or have served, in the 
        Armed Forces of the United States for needs not met by other 
        laws or programs, including costs and unmet needs associated 
        with deployments, injury, or death.
            ``(2) Criteria for distributions.--
                    ``(A) In general.--The Secretary of Defense, after 
                consultation with appropriate military and veterans 
                organizations, shall establish criteria for the 
                distribution of amounts in the American Military Family 
                Relief Fund.
                    ``(B) Distributions to certain organizations.--Such 
                distributions may be made to organizations serving 
                individuals and family members described in paragraph 
                (1). Not more than 5 percent of any distribution to 
                such an organization may be used for overhead or 
                indirect costs.
    ``(d) Reports.--Not later than December 1 (beginning in 2005)--
            ``(1) the Secretary of the Treasury shall report to 
        Congress the amount of contributions designated to the American 
        Military Family Relief Fund in the preceding fiscal year, and
            ``(2) the Secretary of Defense shall report to Congress on 
        the administration, distribution, and use of funds from the 
        American Military Family Relief Fund in the preceding fiscal 
        year.''.
            (2) Clerical amendment.--The table of sections for such 
        subchapter is amended by adding at the end the following new 
        item:

                              ``Sec. 9511. American Military Family 
                                        Relief Fund.''.
    (c) Effective Dates.--
            (1) Subsection (a).--The amendments made by subsection (a) 
        shall apply to taxable years beginning after December 31, 2004.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall take effect on the date of the enactment of this Act.

SEC. 302. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
              INDIVIDUALS CALLED TO CERTAIN ACTIVE DUTY.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to 10-percent additional tax on early 
distributions from qualified retirement plans) is amended by adding at 
the end the following new subparagraph:
                    ``(G) Distributions from retirement plans to 
                individuals called to certain active duty.--
                            ``(i) In general.--Any qualified active 
                        duty distribution.
                            ``(ii) Qualified active duty 
                        distribution.--For purposes of this 
                        subparagraph, the term `qualified active duty 
                        distribution' means any distribution to a 
                        covered member of the Armed Forces if--
                                    ``(I) such distribution is from any 
                                qualified retirement plan (as defined 
                                in section 4974(c)), and
                                    ``(II) such distribution is made 
                                during the period of the assignment to 
                                temporary duty described in clause 
                                (iii)(I) or the period of the order or 
                                call to active duty described in clause 
                                (iii)(II).
                            ``(iii) Covered member of the armed 
                        forces.--For purposes of this subparagraph, the 
                        term `covered member of the Armed Forces' means 
                        an individual who--
                                    ``(I) by reason of being a regular 
                                member of the Armed Forces of the 
                                United States is assigned to temporary 
                                duty at a location other than the 
                                member's permanent duty station for a 
                                period in excess of 90 days, or
                                    ``(II) by reason of being a member 
                                of a reserve component (as defined in 
                                section 101 of title 37, United States 
                                Code) is ordered or called to active 
                                duty for a period in excess of 179 days 
                                or for an indefinite period.
                            ``(iv) Application of subparagraph.--This 
                        subparagraph applies to individuals assigned to 
                        temporary duty or ordered or called to active 
                        duty after September 11, 2001.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions after September 11, 2001.

          TITLE IV--DEATH GRATUITY AND OTHER SURVIVOR BENEFITS

SEC. 401. INCREASED AMOUNT OF DEATH GRATUITY.

    (a) Amount of Death Gratuity.--Section 1478(a) of title 10, United 
States Code, is amended by striking ``$12,000'' in the first sentence 
and inserting ``$250,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of September 11, 2001, and shall apply with respect to 
deaths occurring on or after that date.

SEC. 402. DEATH GRATUITY EXCLUDABLE FROM FEDERAL INCOME TAXATION.

    (a) In General.--Paragraph (1) of section 134(b) of the Internal 
Revenue Code of 1986 (relating to certain military benefits) is amended 
by adding at the end the following new flush sentence:
        ``Such term shall include any death gratuity to which the 
        limitation in section 1478(a) of title 10, United States Code, 
        applies.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts paid with respect to deaths occurring on or after 
September 11, 2001.

SEC. 403. EXTENSION OF PERIOD OF TEMPORARY CONTINUATION OF BASIC 
              ALLOWANCE FOR HOUSING FOR DEPENDENTS OF MEMBERS OF THE 
              ARMED FORCES WHO DIE ON ACTIVE DUTY.

    Section 403(l) of title 37, United States Code, is amended by 
striking ``180 days'' each place it appears and inserting ``365 days''.

                       TITLE V--VETERANS BENEFITS

SEC. 501. POST-TRAUMATIC STRESS DISORDER TREATMENT FOR VETERANS OF 
              SERVICE IN AFGHANISTAN AND IRAQ AND THE WAR ON TERROR.

    (a) Enhanced Capacity for Department of Veterans Affairs.--Using 
funds available to the Secretary of Veterans Affairs for fiscal year 
2006 for ``Medical Care'', the Secretary shall employ at least one 
psychiatrist and a complementary clinical team at each medical center 
of the Department of Veterans Affairs in order to conduct a specialized 
program for the diagnosis and treatment of post-traumatic stress 
disorder and to employ additional mental health services specialists at 
the medical center.
    (b) Outreach at the Community Level.--
            (1) Program.--The Secretary of Veterans Affairs shall, 
        within the authorities of the Secretary under title 38, United 
        States Code, carry out a program to provide outreach at the 
        community level to veterans who participated in Operation Iraqi 
        Freedom or Operation Enduring Freedom who are or may be 
        suffering from post-traumatic stress disorder.
            (2) Program sites.--The program shall be carried out on a 
        nation-wide basis through facilities of the Department of 
        Veterans Affairs.
            (3) Program content.--The program shall provide for 
        individualized case management to be conducted on a one-on-one 
        basis, counseling, education, and group therapy to help 
        participants cope with post-traumatic stress disorder. The 
        program--
                    (A) shall emphasize early identification of 
                veterans who may be experiencing symptoms of post-
                traumatic stress disorder; and
                    (B) shall include group-oriented, peer-to-peer 
                settings for treatment.
    (c) Report on PTSD Outreach.--
            (1) In general.--Not later than December 31, 2006, the 
        Secretary of Veterans Affairs shall submit to Congress a report 
        on the outreach conducted by the Department of Veterans Affairs 
        during fiscal year 2006 to veterans who participated in 
        Operation Iraqi Freedom or Operation Enduring Freedom who are 
        or may be suffering from post-traumatic stress disorder on the 
        programs of the Department that address post-traumatic stress 
        disorder, including the outreach conducted under subsection 
        (b).
            (2) Elements.--The report under paragraph (1) shall 
        include--
                    (A) description of the outreach referred to in that 
                paragraph; and
                    (B) an assessment of the effectiveness of such 
                outreach.

                      TITLE VI--REVENUE PROVISION

SEC. 601. PARTIAL REPEAL OF RATE REDUCTION IN THE HIGHEST INCOME TAX 
              BRACKET.

    Section 1(i)(2) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following flush sentence:
        ``In the case of taxable years beginning during calendar year 
        2005 and thereafter, the final item in the fourth column in the 
        preceding table shall be applied by substituting for `35.0%' 
        such rate as the Secretary determines is necessary to provide 
        sufficient revenues to offset the Federal outlays required to 
        implement the provisions of, and the amendments made by, the 
        Strengthening America's Armed Forces and Military Family Bill 
        of Rights Act.''.
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