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Provided further, That of the amount appropriated under 
this heading not less than $150,000,000 shall be available 
for an additional amount to carry out activities to imple-
ment a national action plan to prevent healthcare-associ-
ated infections, as determined by the Secretary, of which 
not less $50,000,000 shall be provided to States to imple-
ment healthcare-associated infection reduction strategies: 
Provided further, That of the amount appropriated under 
this heading $500,000,000 shall be used to carry out evi-
dence-based clinical and community-based prevention and 
wellness strategies and public health workforce develop-
ment activities authorized by the Public Health Service 
Act, as determined by the Secretary, that deliver specific, 
measurable health outcomes that address chronic and in-
fectious disease rates and health disparities, which shall 
include evidence-based interventions in obesity, diabetes, 
heart disease, cancer, tobacco cessation and smoking pre-
vention, and oral health, and which may be used for the 
Healthy Communities program administered by the Cen-
ters for Disease Control and Prevention and other existing 
community-based programs administered by the Depart-
ment of Health and Human Services: Provided further, 
That funds appropriated in the preceding proviso may be 
transferred to other appropriation accounts of the Depart-
ment of Health and Human Services, as determined by 
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the Secretary to be appropriate: Provided further, That the 
Secretary shall, directly or through contracts with public 
or private entities, provide for annual evaluations of pro-
grams carried out with funds provided under this heading 
in order to determine the quality and effectiveness of the 
programs: Provided further, That the Secretary shall, not 
later than 1 year after the date of enactment of this Act, 
submit to the Committees on Appropriations of the House 
of Representatives and the Senate, the Committee on En-
ergy and Commerce of the House of Representatives, and 
the Committee on Health, Education, Labor, and Pen-
sions of the Senate, a report: (1) summarizing the annual 
evaluations of programs from the preceding proviso; and 
(2) making recommendations concerning future spending 
on prevention and wellness activities, including any rec-
ommendations made by the United States Preventive 
Services Task Force in the area of clinical preventive serv-
ices and the Task Force on Community Preventive Serv-
ices in the area of community preventive services: Provided 
further, That the Secretary shall enter into a contract with 
the Institute of Medicine, for which no more than 
$1,500,000 shall be made available from funds provided 
in this paragraph, to produce and submit a report to the 
Congress and the Secretary by no later than 1 year after 
the date of enactment of this Act that includes rec-
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ommendations on the national priorities for clinical and 
community-based prevention and wellness activities that 
will have a positive impact in preventing illness or reduc-
ing healthcare costs and that considers input from stake-
holders: Provided further, That the Secretary shall provide 
to the Committees on Appropriations of the House of Rep-
resentatives and the Senate a fiscal year 2009 operating 
plan for the Prevention and Wellness Fund prior to mak-
ing any Federal obligations of funds provided under this 
heading in fiscal year 2009 (excluding funds to carry out 
the section 317 immunization program), but not later than 
90 days after the date of enactment of this Act, and a 
fiscal year 2010 operating plan for the Prevention and 
Wellness Fund prior to making any Federal obligations 
of funds provided under this heading in fiscal year 2010 
(excluding funds to carry out the section 317 immuniza-
tion program), but not later than November 1, 2009, that 
indicate the prevention priorities to be addressed; provide 
measurable goals for each prevention priority; detail the 
allocation of resources within the Department of Health 
and Human Services; and identify which programs or ac-
tivities are supported, including descriptions of any new 
programs or activities: Provided further, That the Sec-
retary shall provide to the Committees on Appropriations 
of the House of Representatives and the Senate a report 
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on the actual obligations, expenditures, and unobligated 
balances for each activity funded under this heading not 
later than November 1, 2009, and every 6 months there-
after as long as funding provided under this heading is 
available for obligation or expenditure. 
GENERAL PROVISIONS, THIS SUBTITLE 
SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM-
PARATIVE EFFECTIVENESS RESEARCH. 
(a) ESTABLISHMENT.—There is hereby established a 
Federal Coordinating Council for Comparative Effective-
ness Research (in this section referred to as the ‘‘Coun-
cil’’). 
(b) PURPOSE; DUTIES.—The Council shall— 
(1) assist the offices and agencies of the Fed-
eral
Government,
including
the
Departments
of 
Health and Human Services, Veterans Affairs, and 
Defense, and other Federal departments or agencies, 
to coordinate the conduct or support of comparative 
effectiveness and related health services research; 
and 
(2) advise the President and Congress on— 
(A) strategies with respect to the infra-
structure needs of comparative effectiveness re-
search within the Federal Government; 
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(B)
appropriate
organizational
expendi-
tures for comparative effectiveness research by 
relevant Federal departments and agencies; and 
(C) opportunities to assure optimum co-
ordination of comparative effectiveness and re-
lated health services research conducted or sup-
ported by relevant Federal departments and 
agencies, with the goal of reducing duplicative 
efforts and encouraging coordinated and com-
plementary use of resources. 
(c) MEMBERSHIP.— 
(1) NUMBER AND APPOINTMENT.—The Council 
shall be composed of not more than 15 members, all 
of whom are senior Federal officers or employees 
with responsibility for health-related programs, ap-
pointed by the President, acting through the Sec-
retary of Health and Human Services (in this sec-
tion referred to as the ‘‘Secretary’’). Members shall 
first be appointed to the Council not later than 30 
days after the date of the enactment of this Act. 
(2) MEMBERS.— 
(A) IN
GENERAL.—The members of the 
Council shall include one senior officer or em-
ployee from each of the following agencies: 
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(i) The Agency for Healthcare Re-
search and Quality. 
(ii) The Centers for Medicare and 
Medicaid Services. 
(iii)
The
National
Institutes
of 
Health. 
(iv) The Office of the National Coor-
dinator
for
Health
Information
Tech-
nology. 
(v) The Food and Drug Administra-
tion. 
(vi) The Veterans Health Administra-
tion within the Department of Veterans 
Affairs. 
(vii) The office within the Department 
of Defense responsible for management of 
the
Department
of
Defense
Military 
Health Care System. 
(B) QUALIFICATIONS.—At least half of the 
members of the Council shall be physicians or 
other experts with clinical expertise. 
(3)
CHAIRMAN;
VICE
CHAIRMAN.—The
Sec-
retary shall serve as Chairman of the Council and 
shall designate a member to serve as Vice Chairman. 
(d) REPORTS.— 
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(1) INITIAL REPORT.—Not later than June 30, 
2009, the Council shall submit to the President and 
the Congress a report containing information de-
scribing Federal activities on comparative effective-
ness research and recommendations for additional 
investments in such research conducted or supported 
from funds made available for allotment by the Sec-
retary for comparative effectiveness research in this 
Act. 
(2) ANNUAL REPORT.—The Council shall sub-
mit to the President and Congress an annual report 
regarding its activities and recommendations con-
cerning the infrastructure needs, appropriate organi-
zational expenditures and opportunities for better 
coordination of comparative effectiveness research by 
relevant Federal departments and agencies. 
(e) STAFFING; SUPPORT.—From funds made avail-
able for allotment by the Secretary for comparative effec-
tiveness research in this Act, the Secretary shall make 
available not more than 1 percent to the Council for staff 
and administrative support. 
SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH-
NOLOGY. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall invest in the infrastructure nec-
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essary to allow for and promote the electronic exchange 
and use of health information for each individual in the 
United States consistent with the goals outlined in the 
Strategic Plan developed by the Office of the National Co-
ordinator for Health Information Technology. Such invest-
ment shall include investment in at least the following: 
(1) Health information technology architecture 
that will support the nationwide electronic exchange 
and use of health information in a secure, private, 
and accurate manner, including connecting health 
information exchanges, and which may include up-
dating and implementing the infrastructure nec-
essary within different agencies of the Department 
of Health and Human Services to support the elec-
tronic use and exchange of health information. 
(2)
Integration
of
health
information
tech-
nology, including electronic medical records, into the 
initial and ongoing training of health professionals 
and others in the healthcare industry who would be 
instrumental to improving the quality of healthcare 
through the smooth and accurate electronic use and 
exchange of health information as determined by the 
Secretary. 
(3) Training on and dissemination of informa-
tion on best practices to integrate health information 
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technology, including electronic records, into a pro-
vider’s delivery of care, including community health 
centers receiving assistance under section 330 of the 
Public Health Service Act and providers partici-
pating in one or more of the programs under titles 
XVIII, XIX, and XXI of the Social Security Act (re-
lating to Medicare, Medicaid, and the State Chil-
dren’s Health Insurance Program). 
(4) Infrastructure and tools for the promotion 
of telemedicine, including coordination among Fed-
eral agencies in the promotion of telemedicine. 
(5) Promotion of the interoperability of clinical 
data repositories or registries. 
The Secretary shall implement paragraph (3) in coordina-
tion with State agencies administering the Medicaid pro-
gram and the State Children’s Health Insurance Program. 
(b) LIMITATION.—None of the funds appropriated to 
carry out this section may be used to make significant in-
vestments in, or provide significant funds for, the acquisi-
tion of hardware or software or for the use of an electronic 
health or medical record, or significant components there-
of, unless such investments or funds are for certified prod-
ucts that would permit the full and accurate electronic ex-
change and use of health information in a medical record, 
including standards for security, privacy, and quality im-
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provement functions adopted by the Office of the National 
Coordinator for Health Information Technology. 
(c) REPORT.—The Secretary shall annually report to 
the Committees on Energy and Commerce, on Ways and 
Means, on Science and Technology, and on Appropriations 
of the House of Representatives and the Committees on 
Finance, on Health, Education, Labor, and Pensions, and 
on Appropriations of the Senate on the uses of these funds 
and their impact on the infrastructure for the electronic 
exchange and use of health information. 
Subtitle C—Education 
DEPARTMENT OF EDUCATION 
EDUCATION FOR THE DISADVANTAGED 
For an additional amount for ‘‘Education for the Dis-
advantaged’’ to carry out title I of the Elementary and 
Secondary
Education
Act
of
1965
(‘‘ESEA’’), 
$13,000,000,000: Provided, That $5,500,000,000 shall be 
available for targeted grants under section 1125 of the 
ESEA, of which $2,750,000,000 shall become available on 
July 1, 2009, and shall remain available through Sep-
tember 30, 2010, and $2,750,000,000 shall become avail-
able on July 1, 2010, and shall remain available through 
September
30,
2011:
Provided
further,
That 
$5,500,000,000 shall be available for education finance in-
centive grants under section 1125A of the ESEA, of which 
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$2,750,000,000 shall become available on July 1, 2009, 
and shall remain available through September 30, 2010, 
and $2,750,000,000 shall become available on July 1, 
2010, and shall remain available through September 30, 
2011: Provided further, That $2,000,000,000 shall be for 
school improvement grants under section 1003(g) of the 
ESEA, of which $1,000,000,000 shall become available on 
July 1, 2009, and shall remain available through Sep-
tember 30, 2010, and $1,000,000,000 shall become avail-
able on July 1, 2010, and shall remain available through 
September 30, 2011: Provided further, That the provisions 
of section 1106 of this Act shall not apply to this appro-
priation. 
IMPACT AID 
For an additional amount for ‘‘Impact Aid’’ to carry 
out section 8007 of title VIII of the Elementary and Sec-
ondary Education Act of 1965, $100,000,000, which shall 
remain available through September 30, 2010: Provided, 
That the amount set aside from this appropriation pursu-
ant to section 1106 of this Act shall be 1 percent instead 
of the percentage specified in such section. 
SCHOOL IMPROVEMENT PROGRAMS 
For an additional amount for ‘‘School Improvement 
Programs’’ to carry out subpart 1, part D of title II of 
the Elementary and Secondary Education Act of 1965 
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(‘‘ESEA’’), and subtitle B of title VII of the McKinney- 
Vento Homeless Assistance Act, $1,066,000,000: Pro-
vided, That $1,000,000,000 shall be available for subpart 
1, part D of title II of the ESEA, of which $500,000,000 
shall become available on July 1, 2009, and shall remain 
available through September 30, 2010, and $500,000,000 
shall become available on July 1, 2010, and remain avail-
able through September 30, 2011: Provided further, That 
the provisions of section 1106 of this Act shall not apply 
to these funds: Provided further, That $66,000,000 shall 
be available for subtitle B of title VII of the McKinney- 
Vento Homeless Assistance Act, of which $33,000,000 
shall become available on July 1, 2009, and shall remain 
available through September 30, 2010, and $33,000,000 
shall become available on July 1, 2010, and remain avail-
able through September 30, 2011. 
INNOVATION AND IMPROVEMENT 
For an additional amount for ‘‘Innovation and Im-
provement’’ to carry out subpart 1, part D and subpart 
2, part B of title V of the Elementary and Secondary Edu-
cation Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, 
That $200,000,000 shall be available for subpart 1, part 
D of title V of the ESEA: Provided further, That these 
funds shall be expended as directed in the fifth, sixth, and 
seventh provisos under the heading ‘‘Innovation and Im-
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provement’’ in the Department of Education Appropria-
tions Act, 2008: Provided further, That a portion of these 
funds shall also be used for a rigorous national evaluation 
by the Institute of Education Sciences, utilizing random-
ized controlled methodology to the extent feasible, that as-
sesses the impact of performance-based teacher and prin-
cipal compensation systems supported by the funds pro-
vided in this Act on teacher and principal recruitment and 
retention in high-need schools and subjects: Provided fur-
ther, That $25,000,000 shall be available for subpart 2, 
part B of title V of the ESEA: Provided further, That the 
amount set aside from this appropriation pursuant to sec-
tion 1106 of this Act shall be 1 percent instead of the 
percentage specified in such section. 
SPECIAL EDUCATION 
For an additional amount for ‘‘Special Education’’ 
for carrying out section 611 and part C of the Individuals 
with
Disabilities
Education
Act
(‘‘IDEA’’), 
$13,600,000,000: Provided, That $13,000,000,000 shall 
be available for section 611 of the IDEA, of which 
$6,000,000,000 shall become available on July 1, 2009, 
and remain available through September 30, 2010, and 
$7,000,000,000 shall become available on July 1, 2010, 
and remain available through September 30, 2011: Pro-
vided further, That $600,000,000 shall be available for 
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part C of the IDEA, of which $300,000,000 shall become 
available on July 1, 2009, and remain available through 
September 30, 2010, and $300,000,000 shall become 
available on July 1, 2010, and remain available through 
September 30, 2011: Provided further, That by July 1, 
2009, the Secretary of Education shall reserve the amount 
needed for grants under section 643(e) of the IDEA from 
funds available for obligation on July 1, 2009, with any 
remaining funds to be allocated in accordance with section 
643(c) of the IDEA: Provided further, That by July 1, 
2010, the Secretary shall reserve the amount needed for 
grants under section 643(e) of the IDEA from funds avail-
able for obligation on July 1, 2010, with any remaining 
funds to be allocated in accordance with section 643(c) 
of the IDEA: Provided further, That if every State, as de-
fined by section 602(31) of the IDEA, reaches its max-
imum allocation under section 611(d)(3)(B)(iii) of the 
IDEA, and there are remaining funds, such funds shall 
be proportionally allocated to each State subject to the 
maximum amounts contained in section 611(a)(2) of the 
IDEA: Provided further, That the provisions of section 
1106 of this Act shall not apply to this appropriation. 
REHABILITATION SERVICES AND DISABILITY RESEARCH 
For an additional amount for ‘‘Rehabilitation Serv-
ices and Disability Research’’ for providing grants to 
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States to carry out the Vocational Rehabilitation Services 
program under part B of title I and parts B and C of 
chapter 1 and chapter 2 of title VII of the Rehabilitation 
Act of 1973, $700,000,000: Provided, That $500,000,000 
shall be available for part B of title I of the Rehabilitation 
Act, of which $250,000,000 shall become available on Oc-
tober 1, 2009: Provided further, That funds provided here-
in shall not be considered in determining the amount re-
quired to be appropriated under section 100(b)(1) of the 
Rehabilitation Act of 1973 in any fiscal year: Provided fur-
ther, That, notwithstanding section 7(14)(A), the Federal 
share of the costs of vocational rehabilitation services pro-
vided with the funds provided herein shall be 100 percent: 
Provided further, That the provisions of section 1106 of 
this Act shall not apply to these funds: Provided further, 
That $200,000,000 shall be available for parts B and C 
of chapter 1 and chapter 2 of title VII of the Rehabilita-
tion Act, of which $100,000,000 shall become available on 
October 1, 2009: Provided further, That $34,775,000 shall 
be for State Grants, $114,581,000 shall be for inde-
pendent living centers, and $50,644,000 shall be for serv-
ices for older blind individuals. 
STUDENT FINANCIAL ASSISTANCE 
For an additional amount for ‘‘Student Financial As-
sistance’’ to carry out subpart 1 of part A and part C 
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of title IV of the Higher Education Act of 1965 (‘‘HEA’’), 
$16,126,000,000, which shall remain available through 
September 30, 2011: Provided, That $15,636,000,000 
shall be available for subpart 1of part A of title IV of the 
HEA: Provided further, That $490,000,000 shall be avail-
able for part C of title IV of the HEA, of which 
$245,000,000 shall become available on October 1, 2009: 
Provided further, That the provisions of section 1106 of 
this Act shall not apply to this appropriation. 
The maximum Pell Grant for which a student shall 
be eligible during award year 2009–2010 shall be $4,860. 
STUDENT AID ADMINISTRATION 
For an additional amount for ‘‘Student Aid Adminis-
tration’’ to carry out part D of title I, and subparts 1, 
3, and 4 of part A, and parts B, C, D, and E of title 
IV of the Higher Education Act of 1965, $50,000,000, 
which shall remain available through September 30, 2011: 
Provided, That such amount shall also be available for an 
independent audit of programs and activities authorized 
under section 459A of such Act: Provided further, That 
the provisions of section 1106 of this Act shall not apply 
to this appropriation. 
HIGHER EDUCATION 
For an additional amount for ‘‘Higher Education’’ to 
carry out part A of title II of the Higher Education Act 
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of 1965, $100,000,000: Provided, That section 203(c)(1) 
of such Act shall not apply to awards made with these 
funds. 
INSTITUTE OF EDUCATION SCIENCES 
For an additional amount for Institute of Education 
Sciences to carry out section 208 of the Educational Tech-
nical Assistance Act, $250,000,000, which may be used 
for Statewide data systems that include postsecondary and 
workforce information, of which up to $5,000,000 may be 
used for State data coordinators and for awards to public 
or private organizations or agencies to improve data co-
ordination: Provided, That the amount set aside from this 
appropriation pursuant to section 1106 of this Act shall 
be 1 percent instead of the percentage specified in such 
section. 
SCHOOL MODERNIZATION, RENOVATION, AND REPAIR 
For
carrying
out
section
9301
of
this
Act, 
$14,000,000,000: Provided, That amount available under 
section 9301 of this Act for administration and oversight 
shall take the place of the set-aside under section 1106 
of this Act. 
HIGHER EDUCATION MODERNIZATION, RENOVATION, 
AND REPAIR 
For
carrying
out
section
9302
of
this
Act, 
$6,000,000,000: Provided, That amount available under 
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section 9302 of this Act for administration and oversight 
shall take the place of the set-aside under section 1106 
of this Act. 
GENERAL PROVISIONS, THIS SUBTITLE 
SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB-
LIC SCHOOL FACILITIES. 
(a) DEFINITIONS.—In this section: 
(1) The term ‘‘Bureau-funded school’’ has the 
meaning given to such term in section 1141 of the 
Education Amendments of 1978 (25 U.S.C. 2021). 
(2) The term ‘‘charter school’’ has the meaning 
given such term in section 5210 of the Elementary 
and Secondary Education Act of 1965. 
(3) The term ‘‘local educational agency’’— 
(A) has the meaning given to that term in 
section 9101 of the Elementary and Secondary 
Education Act of 1965, and shall also include 
the Recovery School District of Louisiana and 
the New Orleans Public Schools; and 
(B) includes any public charter school that 
constitutes a local educational agency under 
State law. 
(4) The term ‘‘outlying area’’— 
(A) means the United States Virgin Is-
lands, Guam, American Samoa, and the Com-
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monwealth of the Northern Mariana Islands; 
and 
(B) includes the freely associated states of 
the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, and the Republic 
of Palau. 
(5) The term ‘‘public school facilities’’ includes 
charter schools. 
(6) The term ‘‘State’’ means each of the 50 
States, the District of Columbia, and the Common-
wealth of Puerto Rico. 
(7) The term ‘‘LEED Green Building Rating 
System’’ means the United States Green Building 
Council Leadership in Energy and Environmental 
Design green building rating standard referred to as 
the LEED Green Building Rating System. 
(8) The term ‘‘Energy Star’’ means the Energy 
Star program of the United States Department of 
Energy and the United States Environmental Pro-
tection Agency. 
(9) The term ‘‘CHPS Criteria’’ means the 
green building rating program developed by the Col-
laborative for High Performance Schools. 
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(10) The term ‘‘Green Globes’’ means the 
Green Building Initiative environmental design and 
rating system referred to as Green Globes. 
(b) PURPOSE.—Grants under this section shall be for 
the purpose of modernizing, renovating, or repairing pub-
lic school facilities, based on their need for such improve-
ments, to be safe, healthy, high-performing, and up-to- 
date technologically. 
(c) ALLOCATION OF FUNDS.— 
(1) RESERVATIONS.— 
(A) IN GENERAL.—From the amount ap-
propriated to carry out this section, the Sec-
retary of Education shall reserve 1 percent of 
such amount, consistent with the purpose de-
scribed in subsection (b)— 
(i) to provide assistance to the out-
lying areas; and 
(ii) for payments to the Secretary of 
the Interior to provide assistance to Bu-
reau-funded schools. 
(B) ADMINISTRATION AND OVERSIGHT.— 
The Secretary may, in addition, reserve up to 
$6,000,000 of such amount for administration 
and oversight of this section. 
(2) ALLOCATION TO STATES.— 
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(A)
STATE-BY-STATE
ALLOCATION.—Of 
the amount appropriated to carry out this sec-
tion, and not reserved under paragraph (1), 
each State shall be allocated an amount in pro-
portion to the amount received by all local edu-
cational agencies in the State under part A of 
title I of the Elementary and Secondary Edu-
cation Act of 1965 for fiscal year 2008 relative 
to the total amount received by all local edu-
cational agencies in every State under such part 
for such fiscal year. 
(B)
STATE
ADMINISTRATION.—A
State 
may reserve up to 1 percent of its allocation 
under subparagraph (A) to carry out its respon-
sibilities under this section, including— 
(i) providing technical assistance to 
local educational agencies; 
(ii) developing, within 6 months of re-
ceiving its allocation under subparagraph 
(A), a plan to develop a database that in-
cludes an inventory of public school facili-
ties in the State and the modernization, 
renovation, and repair needs of, energy use 
by,
and
the
carbon
footprint
of
such 
schools; and 
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(iii) developing a school energy effi-
ciency quality plan. 
(C)
GRANTS
TO
LOCAL
EDUCATIONAL 
AGENCIES.—From the amount allocated to a 
State under subparagraph (A), each local edu-
cational agency in the State that meets the re-
quirements of section 1112(a) of the Elemen-
tary and Secondary Education Act of 1965 
shall receive an amount in proportion to the 
amount received by such local educational agen-
cy under part A of title I of that Act for fiscal 
year 2008 relative to the total amount received 
by all local educational agencies in the State 
under such part for such fiscal year, except that 
no local educational agency that received funds 
under part A of title I of that Act for such fis-
cal year shall receive a grant of less than 
$5,000. 
(D) SPECIAL
RULE.—Section 1122(c)(3) 
of the Elementary and Secondary Education 
Act of 1965 shall not apply to subparagraph 
(A) or (C). 
(3) SPECIAL RULES.— 
(A) DISTRIBUTIONS BY SECRETARY.—The 
Secretary of Education shall make and dis-
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HR 1 PP 
tribute the reservations and allocations de-
scribed in paragraphs (1) and (2) not later than 
30 days after the date of the enactment of this 
Act. 
(B) DISTRIBUTIONS BY STATES.—A State 
shall make and distribute the allocations de-
scribed in paragraph (2)(C) within 30 days of 
receiving such funds from the Secretary. 
(d) USE IT OR LOSE IT REQUIREMENTS.— 
(1) DEADLINE FOR BINDING COMMITMENTS.— 
Each local educational agency receiving funds under 
this section shall enter into contracts or other bind-
ing commitments not later than 1 year after the 
date of the enactment of this Act (or not later than 
9 months after such funds are awarded, if later) to 
make use of 50 percent of such funds, and shall 
enter into contracts or other binding commitments 
not later than 2 years after the date of the enact-
ment of this Act (or not later than 21 months after 
such funds are awarded, if later) to make use of the 
remaining funds. In the case of activities to be car-
ried out directly by a local educational agency (rath-
er than by contracts, subgrants, or other arrange-
ments with third parties), a certification by the 
agency specifying the amounts, planned timing, and 
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HR 1 PP 
purpose of such expenditures shall be deemed a 
binding commitment for purposes of this subsection. 
(2)
REDISTRIBUTION
OF
UNCOMMITTED 
FUNDS.—A State shall recover or deobligate any 
funds not committed in accordance with paragraph 
(1), and redistribute such funds to other local edu-
cational agencies eligible under this section and able 
to make use of such funds in a timely manner (in-
cluding binding commitments within 120 days after 
the reallocation). 
(e) ALLOWABLE USES
OF FUNDS.—A local edu-
cational agency receiving a grant under this section shall 
use the grant for modernization, renovation, or repair of 
public school facilities, including— 
(1) repairing, replacing, or installing roofs, in-
cluding extensive, intensive or semi-intensive green 
roofs, electrical wiring, plumbing systems, sewage 
systems, lighting systems, or components of such 
systems, windows, or doors, including security doors; 
(2) repairing, replacing, or installing heating, 
ventilation, air conditioning systems, or components 
of such systems (including insulation), including in-
door air quality assessments; 
(3) bringing public schools into compliance with 
fire, health, and safety codes, including professional 
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HR 1 PP 
installation of fire/life safety alarms, including mod-
ernizations, renovations, and repairs that ensure 
that schools are prepared for emergencies, such as 
improving building infrastructure to accommodate 
security measures; 
(4) modifications necessary to make public 
school facilities accessible to comply with the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C. 12101 
et seq.) and section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794), except that such modifica-
tions shall not be the primary use of the grant; 
(5) asbestos or polychlorinated biphenyls abate-
ment or removal from public school facilities; 
(6) implementation of measures designed to re-
duce or eliminate human exposure to lead-based 
paint hazards through methods including interim 
controls, abatement, or a combination of each; 
(7) implementation of measures designed to re-
duce or eliminate human exposure to mold or mil-
dew; 
(8) upgrading or installing educational tech-
nology infrastructure to ensure that students have 
access to up-to-date educational technology; 
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HR 1 PP 
(9) technology activities that are carried out in 
connection with school repair and renovation, includ-
ing— 
(A) wiring; 
(B) acquiring hardware and software; 
(C) acquiring connectivity linkages and re-
sources; and 
(D)
acquiring
microwave,
fiber
optics, 
cable, and satellite transmission equipment; 
(10) modernization, renovation, or repair of 
science and engineering laboratory facilities, librar-
ies, and career and technical education facilities, in-
cluding those related to energy efficiency and renew-
able energy, and improvements to building infra-
structure to accommodate bicycle and pedestrian ac-
cess; 
(11) renewable energy generation and heating 
systems, including solar, photovoltaic, wind, geo-
thermal, or biomass, including wood pellet, systems 
or components of such systems; 
(12) other modernization, renovation, or repair 
of public school facilities to— 
(A) improve teachers’ ability to teach and 
students’ ability to learn; 
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212 
HR 1 PP 
(B) ensure the health and safety of stu-
dents and staff; 
(C) make them more energy efficient; or 
(D) reduce class size; and 
(13) required environmental remediation related 
to public school modernization, renovation, or repair 
described in paragraphs (1) through (12). 
(f) IMPERMISSIBLE USES OF FUNDS.—No funds re-
ceived under this section may be used for— 
(1) payment of maintenance costs; or 
(2) stadiums or other facilities primarily used 
for athletic contests or exhibitions or other events 
for which admission is charged to the general public. 
(g) SUPPLEMENT, NOT SUPPLANT.—A local edu-
cational agency receiving a grant under this section shall 
use such Federal funds only to supplement and not sup-
plant the amount of funds that would, in the absence of 
such Federal funds, be available for modernization, ren-
ovation, or repair of public school facilities. 
(h) PROHIBITION REGARDING STATE AID.—A State 
shall not take into consideration payments under this sec-
tion in determining the eligibility of any local educational 
agency in that State for State aid, or the amount of State 
aid, with respect to free public education of children. 
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HR 1 PP 
(i) SPECIAL RULE ON CONTRACTING.—Each local 
educational agency receiving a grant under this section 
shall ensure that, if the agency carries out modernization, 
renovation, or repair through a contract, the process for 
any such contract ensures the maximum number of quali-
fied bidders, including local, small, minority, and women- 
and veteran-owned businesses, through full and open com-
petition. 
(j) SPECIAL RULE ON USE OF IRON AND STEEL 
PRODUCED IN THE UNITED STATES.— 
(1) IN GENERAL.—A local educational agency 
shall not obligate or expend funds received under 
this section for a project for the modernization, ren-
ovation, or repair of a public school facility unless all 
of the iron and steel used in such project is pro-
duced in the United States. 
(2) EXCEPTIONS.—The provisions of paragraph 
(1) shall not apply in any case in which the local 
educational agency finds that— 
(A) their application would be inconsistent 
with the public interest; 
(B) iron and steel are not produced in the 
United
States
in
sufficient
and
reasonably 
available quantities and of a satisfactory qual-
ity; or 
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HR 1 PP 
(C) inclusion of iron and steel produced in 
the United States will increase the cost of the 
overall project contract by more than 25 per-
cent. 
(k) APPLICATION OF GEPA.—The grant program 
under this section is an applicable program (as that term 
is defined in section 400 of the General Education Provi-
sions Act (20 U.S.C. 1221)) subject to section 439 of such 
Act (20 U.S.C. 1232b). 
(l) CHARTER SCHOOLS.—A local educational agency 
receiving an allocation under this section shall use an equi-
table portion of that allocation for allowable activities ben-
efitting charter schools within its jurisdiction, as deter-
mined based on the percentage of students from low-in-
come families in the schools of the agency who are enrolled 
in charter schools and on the needs of those schools as 
determined by the agency. 
(m) GREEN SCHOOLS.— 
(1) IN GENERAL.—A local educational agency 
shall use not less than 25 percent of the funds re-
ceived under this section for public school mod-
ernization, renovation, or repairs that are certified, 
verified, or consistent with any applicable provisions 
of— 
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HR 1 PP 
(A) the LEED Green Building Rating Sys-
tem; 
(B) Energy Star; 
(C) the CHPS Criteria; 
(D) Green Globes; or 
(E) an equivalent program adopted by the 
State or another jurisdiction with authority over 
the local educational agency. 
(2) TECHNICAL
ASSISTANCE.—The Secretary, 
in consultation with the Secretary of Energy and the 
Administrator
of
the
Environmental
Protection 
Agency, shall provide outreach and technical assist-
ance to States and school districts concerning the 
best practices in school modernization, renovation, 
and repair, including those related to student aca-
demic achievement and student and staff health, en-
ergy efficiency, and environmental protection. 
(n) YOUTHBUILD PROGRAMS.—The Secretary of 
Education, in consultation with the Secretary of Labor, 
shall work with recipients of funds under this section to 
promote appropriate opportunities for participants in a 
YouthBuild program (as defined in section 173A of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to 
gain employment experience on modernization, renovation, 
and repair projects funded under this section. 
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HR 1 PP 
(o) REPORTING.— 
(1) REPORTS BY LOCAL EDUCATIONAL AGEN-
CIES.—Local educational agencies receiving a grant 
under this section shall compile, and submit to the 
State educational agency (which shall compile and 
submit such reports to the Secretary), a report de-
scribing the projects for which such funds were used, 
including— 
(A) the number of public schools in the 
agency,
including
the
number
of
charter 
schools; 
(B) the total amount of funds received by 
the local educational agency under this section 
and the amount of such funds expended, includ-
ing the amount expended for modernization, 
renovation, and repair of charter schools; 
(C) the number of public schools in the 
agency with a metro-centric locale code of 41, 
42, or 43 as determined by the National Center 
for Education Statistics and the percentage of 
funds received by the agency under this section 
that were used for projects at such schools; 
(D) the number of public schools in the 
agency that are eligible for schoolwide programs 
under section 1114 of the Elementary and Sec-
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HR 1 PP 
ondary Education Act of 1965 and the percent-
age of funds received by the agency under this 
section that were used for projects at such 
schools; 
(E) the cost of each project, which, if any, 
of the standards described in subsection (k)(1) 
the project met, and any demonstrable or ex-
pected academic, energy, or environmental ben-
efits as a result of the project; 
(F) if flooring was installed, whether— 
(i) it was low- or no-VOC (Volatile 
Organic Compounds) flooring; 
(ii) it was made from sustainable ma-
terials; and 
(iii) use of flooring described in clause 
(i) or (ii) was cost effective; and 
(G) the total number and amount of con-
tracts awarded, and the number and amount of 
contracts awarded to local, small, minority- 
owned, women-owned, and veteran-owned busi-
nesses. 
(2) REPORTS BY SECRETARY.—Not later than 
December 31, 2011, the Secretary of Education 
shall submit to the Committees on Education and 
Labor and Appropriations of the House of Rep-
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HR 1 PP 
resentatives and the Committees on Health, Edu-
cation, Labor, and Pensions and Appropriations of 
the Senate a report on grants made under this sec-
tion, including the information described in para-
graph (1), the types of modernization, renovation, 
and repair funded, and the number of students im-
pacted, including the number of students counted 
under section 1113(a)(5) of the Elementary and 
Secondary Education Act of 1965. 
SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA-
TION, AND REPAIR. 
(a) PURPOSE.—Grants awarded under this section 
shall be for the purpose of modernizing, renovating, and 
repairing institution of higher education facilities that are 
primarily used for instruction, research, or student hous-
ing. 
(b) GRANTS TO STATE HIGHER EDUCATION AGEN-
CIES.— 
(1)
FORMULA.—From
the
amounts
appro-
priated to carry out this section, the Secretary of 
Education shall allocate funds to State higher edu-
cation agencies based on the number of students at-
tending institutions of higher education, with the 
State higher education agency in each State receiv-
ing an amount that is in proportion to the number 
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HR 1 PP 
of full-time equivalent undergraduate students at-
tending institutions of higher education in such 
State for the most recent fiscal year for which there 
are data available, relative to the total number of 
full-time equivalent undergraduate students attend-
ing institutions of higher education in all States for 
such fiscal year. 
(2) APPLICATION.—To be eligible to receive an 
allocation from the Secretary under paragraph (1), 
a State higher education agency shall submit an ap-
plication to the Secretary at such time and in such 
manner as the Secretary may reasonably require. 
(3) REALLOCATION.—Amounts allocated to a 
State higher education agency under this section 
that are not obligated by such agency within 6 
months
of
the
date
the
agency
receives
such 
amounts shall be returned to the Secretary, and the 
Secretary shall reallocate such amounts to State 
higher education agencies in other States on the 
same basis as the original allocations under para-
graph (1)(B). 
(4)
ADMINISTRATION
AND
OVERSIGHT
EX-
PENSES.—From the amounts appropriated to carry 
out this section, not more than $6,000,000 shall be 
available to the Secretary for administrative and 
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oversight expenses related to carrying out this sec-
tion. 
(c) USE OF GRANTS BY STATE HIGHER EDUCATION 
AGENCIES.— 
(1) SUBGRANTS TO INSTITUTIONS OF HIGHER 
EDUCATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), each State higher education 
agency receiving an allocation under subsection 
(b)(1) shall use the amount allocated to award 
subgrants to institutions of higher education 
within the State to carry out projects in accord-
ance with subsection (d)(1). 
(B) SUBGRANT
AWARD
ALLOCATION.—A 
State higher education agency shall award sub-
grants to institutions of higher education under 
this section based on the demonstrated need of 
each institution for facility modernization, ren-
ovation, and repair. 
(C)
PRIORITY
CONSIDERATIONS.—In 
awarding subgrants under this section, each 
State higher education agency shall give pri-
ority consideration to institutions of higher edu-
cation with any of the following characteristics: 
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(i) The institution is eligible for Fed-
eral assistance under title III or title V of 
the Higher Education Act of 1965. 
(ii) The institution was impacted by a 
major disaster or emergency declared by 
the President (as defined in section 102(2) 
of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 
5122(2))), including an institution affected 
by a Gulf hurricane disaster, as such term 
is defined in section 824(g)(1) of the High-
er Education Act of 1965 (20 U.S.C. 
11611–3(g)(1)). 
(iii) The institution demonstrates that 
the proposed project or projects to be car-
ried out with a subgrant under this section 
will increase the energy efficiency of the in-
stitution’s facilities and comply with the 
LEED Green Building Rating System. 
(2)
ADMINISTRATIVE
AND
OVERSIGHT
EX-
PENSES.—Of the allocation amount received under 
subsection (b)(1), a State higher education agency 
may reserve not more than 5 percent of such 
amount, or $500,000, whichever is less, for adminis-
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trative and oversight expenses related to carrying 
out this section. 
(d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH-
ER EDUCATION.— 
(1) PERMISSIBLE USES OF FUNDS.—An institu-
tion of higher education receiving a subgrant under 
this section shall use such subgrant to modernize, 
renovate, or repair facilities of the institution that 
are primarily used for instruction, research, or stu-
dent housing, which may include any of the fol-
lowing: 
(A) Repair, replacement, or installation of 
roofs, electrical wiring, plumbing systems, sew-
age systems, or lighting systems. 
(B) Repair, replacement, or installation of 
heating, ventilation, or air conditioning systems 
(including insulation). 
(C) Compliance with fire and safety codes, 
including— 
(i) professional installation of fire or 
life safety alarms; and 
(ii) modernizations, renovations, and 
repairs that ensure that the institution’s 
facilities
are
prepared
for
emergencies, 
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223 
HR 1 PP 
such as improving building infrastructure 
to accommodate security measures. 
(D) Retrofitting necessary to increase the 
energy efficiency of the institution’s facilities. 
(E) Renovations to the institution’s facili-
ties necessary to comply with accessibility re-
quirements in the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12101 et seq.) and sec-
tion 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794). 
(F) Abatement or removal of asbestos from 
the institution’s facilities. 
(G) Modernization, renovation, and repair 
relating to improving science and engineering 
laboratories, libraries, and instructional facili-
ties. 
(H)
Upgrading
or
installation
of
edu-
cational technology infrastructure. 
(I) Installation or upgrading of renewable 
energy generation and heating systems, includ-
ing solar, photovoltaic, wind, biomass (including 
wood pellet), or geothermal systems, or compo-
nents of such systems. 
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(J) Other modernization, renovation, or re-
pair projects that are primarily for instruction, 
research, or student housing. 
(2) GREEN SCHOOL REQUIREMENT.—An insti-
tution of higher education receiving a subgrant 
under this section shall use not less than 25 percent 
of such subgrant to carry out projects for mod-
ernization, renovation, or repair that are certified, 
verified, or consistent with the applicable provisions 
of— 
(A) the LEED Green Building Rating Sys-
tem; 
(B) Energy Star; 
(C) the CHPS Criteria; 
(D) Green Globes; or 
(E) an equivalent program adopted by the 
State or the State higher education agency. 
(3) PROHIBITED USES OF FUNDS.—No funds 
awarded under this section may be used for— 
(A) the maintenance of systems, equip-
ment, or facilities, including maintenance asso-
ciated with any permissible uses of funds de-
scribed in paragraph (1); 
(B) modernization, renovation, or repair of 
stadiums or other facilities primarily used for 
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225 
HR 1 PP 
athletic contests or exhibitions or other events 
for which admission is charged to the general 
public; 
(C) modernization, renovation, or repair of 
facilities— 
(i) used for sectarian instruction, reli-
gious worship, or a school or department 
of divinity; or 
(ii) in which a substantial portion of 
the functions of the facilities are subsumed 
in a religious mission; or 
(D) construction of new facilities. 
(4) USE IT OR LOSE IT REQUIREMENTS.— 
(A)
DEADLINE
FOR
BINDING
COMMIT-
MENTS.—Each institution of higher education 
receiving a subgrant under this section shall 
enter into contracts or other binding commit-
ments not later than 1 year after the date of 
the enactment of this Act (or not later than 9 
months after the subgrant is awarded, if later) 
to make use of 50 percent of the funds award-
ed, and shall enter into contracts or other bind-
ing commitments not later than 2 years after 
the date of the enactment of this Act (or not 
later than 21 months after the subgrant is 
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226 
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awarded, if later) to make use of the remaining 
funds. In the case of activities to be carried out 
directly by an institution of higher education re-
ceiving such a subgrant (rather than by con-
tracts, subgrants, or other arrangements with 
third parties), a certification by the institution 
specifying the amounts, planned timing, and 
purpose of such expenditures shall be deemed a 
binding commitment for purposes of this sec-
tion. 
(B) REDISTRIBUTION
OF
UNCOMMITTED 
FUNDS.—A State higher education agency shall 
recover or deobligate any subgrant funds not 
committed in accordance with subparagraph 
(A), and redistribute such funds to other insti-
tutions of higher education that are— 
(i) eligible for subgrants under this 
section; and 
(ii) able to make use of such funds in 
a timely manner (including binding com-
mitments within 120 days after the re-
allocation). 
(e) APPLICATION OF GEPA.—The grant program au-
thorized in this section is an applicable program (as that 
term is defined in section 400 of the General Education 
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Provisions Act (20 U.S.C. 1221)) subject to section 439 
of such Act (20 U.S.C. 1232b). The Secretary shall, not-
withstanding section 437 of such Act (20 U.S.C. 1232) 
and section 553 of title 5, United States Code, establish 
such program rules as may be necessary to implement 
such grant program by notice in the Federal Register. 
(f) REPORTING.— 
(1)
REPORTS
BY
INSTITUTIONS.—Not
later 
than September 30, 2011, each institution of higher 
education receiving a subgrant under this section 
shall submit to the State higher education agency 
awarding such subgrant a report describing the 
projects for which such subgrant was received, in-
cluding— 
(A) a description of each project carried 
out, or planned to be carried out, with such 
subgrant, including the types of modernization, 
renovation, and repair to be completed by each 
such project; 
(B) the total amount of funds received by 
the
institution
under
this
section
and
the 
amount of such funds expended, as of the date 
of the report, on the such projects; 
(C) the actual or planned cost of each such 
project and any demonstrable or expected aca-
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demic, energy, or environmental benefits result-
ing from such project; and 
(D) the total number of contracts, and 
amount of funding for such contracts, awarded 
by the institution to carry out such projects, as 
of the date of such report, including the num-
ber of contracts, and amount of funding for 
such contracts, awarded to local, small, minor-
ity-owned,
women-owned,
and
veteran-owned 
businesses, as such terms are defined by the 
Small Business Act. 
(2) REPORTS BY STATES.—Not later than De-
cember 31, 2011, each State higher education agen-
cy receiving a grant under this section shall submit 
to the Secretary a report containing a compilation of 
all of the reports under paragraph (1) submitted to 
the agency by institutions of higher education. 
(3) REPORTS BY THE SECRETARY.—Not later 
than March 31, 2012, the Secretary shall submit to 
the Committee on Education and Labor in the 
House of Representatives and the Committee on 
Health, Education, Labor, and Pensions in the Sen-
ate and Committees on Appropriations of the House 
of Representatives and the Senate a report on 
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(2) in paragraph (4)— 
(A) in subparagraph (A)— 
(i) in clause (i)(I) and clause (iii)(I), 
by striking ‘‘$6,000’’ each place it appears 
and inserting ‘‘$8,000’’; and 
(ii)
in
clause
(ii)(I)
and
clause 
(iii)(II), by striking ‘‘$7,000’’ each place it 
appears and inserting ‘‘$9,000’’; and 
(B)
in
subparagraph
(B),
by
striking 
‘‘$57,500’’ and inserting ‘‘$65,500’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall be effective for loans first disbursed on 
or after January 1, 2009. 
SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE. 
(a)
TEMPORARY
CALCULATION
RULE.—Section 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end 
the following new clause: 
‘‘(vii)
TEMPORARY
CALCULATION 
RULE
DURING
UNSTABLE
COMMERCIAL 
PAPER MARKETS.— 
‘‘(I)
CALCULATION
BASED
ON 
LIBOR.—For the calendar quarter be-
ginning on October 1, 2008, and end-
ing on December 31, 2008, in com-
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puting the special allowance paid pur-
suant to this subsection with respect 
to loans for which the first disburse-
ment is made on or after January 1, 
2000, clause (i)(I) of this subpara-
graph shall be applied by substituting 
‘the rate that is the average rate of 
the 3-month London Inter Bank Of-
fered
Rate
(LIBOR)
for
United 
States dollars in effect for each of the 
days in such quarter as compiled and 
released by the British Bankers Asso-
ciation, minus 0.13 percent,’ for ‘the 
average of the bond equivalent rates 
of the quotes of the 3-month commer-
cial paper (financial) rates in effect 
for each of the days in such quarter 
as reported by the Federal Reserve in 
Publication H–15 (or its successor) 
for such 3-month period’. 
‘‘(II)
PARTICIPATION
INTER-
ESTS.—Notwithstanding subclause (I) 
of this clause, the special allowance 
paid on any loan held by a lender that 
has
sold
participation
interests
in 
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such loan to the Secretary shall be the 
rate computed under this subpara-
graph without regard to subclause (I) 
of this clause, unless the lender agrees 
that the participant’s yield with re-
spect to such participation interest is 
to be calculated in accordance with 
subclause (I) of this clause.’’. 
(b)
CONFORMING
AMENDMENTS.—Section 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
U.S.C. 1087–1(b)(2)(I)) is further amended— 
(1) in clause (i)(II), by striking ‘‘such average 
bond equivalent rate’’ and inserting ‘‘the rate deter-
mined under subclause (I)’’; and 
(2) in clause (v)(III), by striking ‘‘(iv), and 
(vi)’’ and inserting ‘‘(iv), (vi), and (vii)’’. 
Subtitle D—Related Agencies 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
OPERATING EXPENSES 
For an additional amount for ‘‘Operating Expenses’’ 
to carry out the Domestic Volunteer Service Act of 1973 
and the National and Community Service Act of 1990 
(‘‘1990 Act’’), $160,000,000, which shall be used to ex-
pand existing AmeriCorps grants: Provided, That funds 
made available under this heading may be used to provide 
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adjustments to awards made prior to September 30, 2010 
in order to waive the match requirement authorized in sec-
tion 121(e)(4) of part I of subtitle C of the 1990 Act, 
if the Chief Executive Officer of the Corporation for Na-
tional and Community Service (‘‘CEO’’) determines that 
the grantee has reduced capacity to meet this requirement: 
Provided further, That in addition to requirements identi-
fied herein, funds provided under this heading shall be 
subject to the terms and conditions under which funds are 
appropriated in fiscal year 2009: Provided further, That 
the CEO shall provide the Committees on Appropriations 
of the House of Representatives and the Senate a fiscal 
year 2009 operating plan for the funds appropriated under 
this heading prior to making any Federal obligations of 
such funds in fiscal year 2009, but not later than 90 days 
after the date of enactment of this Act, and a fiscal year 
2010 operating plan for such funds prior to making any 
Federal obligations of such funds in fiscal year 2010, but 
not later than November 1, 2009, that detail the allocation 
of resources and the increased number of volunteers sup-
ported by the AmeriCorps programs: Provided further, 
That the CEO shall provide to the Committees on Appro-
priations of the House of Representatives and the Senate 
a report on the actual obligations, expenditures, and unob-
ligated balances for each activity funded under this head-
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ing not later than November 1, 2009, and every 6 months 
thereafter as long as funding provided under this heading 
is available for obligation or expenditure. 
NATIONAL SERVICE TRUST 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘National Service 
Trust’’ established under subtitle D of title I of the Na-
tional and Community Service Act of 1990 (‘‘1990 Act’’), 
$40,000,000, which shall remain available until expended: 
Provided, That the Corporation for National and Commu-
nity Service may transfer additional funds from the 
amount provided within ‘‘Operating Expenses’’ for grants 
made under subtitle C of the 1990 Act to this appropria-
tion upon determination that such transfer is necessary 
to support the activities of national service participants 
and after notice is transmitted to the Committees on Ap-
propriations of the House of Representatives and the Sen-
ate: Provided further, That the amount appropriated for 
or transferred to the National Service Trust may be in-
vested under section 145(b) of the 1990 Act without re-
gard to the requirement to apportion funds under 31 
U.S.C. 1513(b). 
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SOCIAL SECURITY ADMINISTRATION 
LIMITATION ON ADMINISTRATIVE EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Limitation on Admin-
istrative Expenses’’, $900,000,000, which shall be used as 
follows: 
(1) $400,000,000 for the construction and asso-
ciated costs to establish a new National Computer 
Center, which may include lease or purchase of real 
property: Provided, That the construction plan and 
site selection for such center shall be subject to re-
view and approval by the Office of Management and 
Budget: Provided further, That the Committees on 
Appropriations of the House of Representatives and 
the Senate shall be notified 15 days in advance of 
the lease or purchase of such site: Provided further, 
That such center shall continue to be a government- 
operated facility. 
(2) $500,000,000 for processing disability and 
retirement
workloads:
Provided,
That
up
to 
$40,000,000 may be used by the Commissioner of 
Social Security for health information technology re-
search and activities to facilitate the adoption of 
electronic medical records in disability claims, in-
cluding the transfer of funds to ‘‘Supplemental Se-
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curity Income Program’’ to carry out activities 
under section 1110 of the Social Security Act. 
TITLE X—MILITARY CONSTRUC-
TION
AND
VETERANS
AF-
FAIRS 
DEPARTMENT OF DEFENSE 
MILITARY CONSTRUCTION, ARMY 
For an additional amount for ‘‘Military Construction, 
Army’’, $920,000,000: Provided, That notwithstanding 
any other provision of law, such funds may be obligated 
and expended to carry out planning and design and mili-
tary construction projects in the United States not other-
wise authorized by law: Provided further, That of the 
amount provided under this heading, $600,000,000 shall 
be for training and recruit troop housing, $220,000,000 
shall
be
for
permanent
party
troop
housing,
and 
$100,000,000 shall be for child development centers: Pro-
vided further, That not later than 30 days after the date 
of enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Appropriations of the House 
of Representatives and the Senate an expenditure plan for 
funds provided under this heading. 
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS 
For an additional amount for ‘‘Military Construction, 
Navy and Marine Corps’’, $350,000,000: Provided, That 
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notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and 
design and military construction projects in the United 
States not otherwise authorized by law: Provided further, 
That
of
the
amount
provided
under
this
heading, 
$170,000,000 shall be for sailor and marine housing and 
$180,000,000 shall be for child development centers: Pro-
vided further, That not later than 30 days after the date 
of enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Appropriations of the House 
of Representatives and the Senate an expenditure plan for 
funds provided under this heading. 
MILITARY CONSTRUCTION, AIR FORCE 
For an additional amount for ‘‘Military Construction, 
Air
Force’’,
$280,000,000:
Provided,
That
notwith-
standing any other provision of law, such funds may be 
obligated and expended to carry out planning and design 
and military construction projects in the United States not 
otherwise authorized by law: Provided further, That of the 
amount provided under this heading, $200,000,000 shall 
be for airmen housing and $80,000,000 shall be for child 
development centers: Provided further, That not later than 
30 days after the date of enactment of this Act, the Sec-
retary of Defense shall submit to the Committees on Ap-
propriations of the House of Representatives and the Sen-
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ate an expenditure plan for funds provided under this 
heading. 
MILITARY CONSTRUCTION, DEFENSE-WIDE 
For an additional amount for ‘‘Military Construction, 
Defense-Wide’’, $3,750,000,000, for the construction of 
hospitals and ambulatory surgery centers: Provided, That 
notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and 
design and military construction projects in the United 
States not otherwise authorized by law: Provided further, 
That not later than 30 days after the date of enactment 
of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Represent-
atives and the Senate an expenditure plan for funds pro-
vided under this heading. 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
For an additional amount for ‘‘Military Construction, 
Army National Guard’’, $140,000,000: Provided, That 
notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and 
design and military construction projects in the United 
States not otherwise authorized by law: Provided further, 
That not later than 30 days after the date of enactment 
of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Represent-
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atives and the Senate an expenditure plan for funds pro-
vided under this heading. 
MILITARY CONSTRUCTION, AIR NATIONAL GUARD 
For an additional amount for ‘‘Military Construction, 
Air National Guard’’, $70,000,000: Provided, That not-
withstanding any other provision of law, such funds may 
be obligated and expended to carry out planning and de-
sign and military construction projects in the United 
States not otherwise authorized by law: Provided further, 
That not later than 30 days after the date of enactment 
of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Represent-
atives and the Senate an expenditure plan for funds pro-
vided under this heading. 
MILITARY CONSTRUCTION, ARMY RESERVE 
For an additional amount for ‘‘Military Construction, 
Army Reserve’’, $100,000,000: Provided, That notwith-
standing any other provision of law, such funds may be 
obligated and expended to carry out planning and design 
and military construction projects in the United States not 
otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the Committees 
on Appropriations of the House of Representatives and the 
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Senate an expenditure plan for funds provided under this 
heading. 
MILITARY CONSTRUCTION, NAVY RESERVE 
For an additional amount for ‘‘Military Construction, 
Navy Reserve’’, $30,000,000: Provided, That notwith-
standing any other provision of law, such funds may be 
obligated and expended to carry out planning and design 
and military construction projects in the United States not 
otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the Committees 
on Appropriations of the House of Representatives and the 
Senate an expenditure plan for funds provided under this 
heading. 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
For an additional amount for ‘‘Military Construction, 
Air Force Reserve’’, $60,000,000: Provided, That notwith-
standing any other provision of law, such funds may be 
obligated and expended to carry out planning and design 
and military construction projects in the United States not 
otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the Committees 
on Appropriations of the House of Representatives and the 
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Senate an expenditure plan for funds provided under this 
heading. 
DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
1990 
For an additional amount to be deposited into the 
Department of Defense Base Closure Account 1990, es-
tablished by section 2906(a)(1) of the Defense Base Clo-
sure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
$300,000,000: Provided, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Appropriations of the 
House of Representatives and the Senate an expenditure 
plan for funds provided under this heading. 
DEPARTMENT OF VETERANS AFFAIRS 
VETERANS HEALTH ADMINISTRATION 
MEDICAL FACILITIES 
For an additional amount for ‘‘Medical Facilities’’ for 
non-recurring maintenance, including energy projects, 
$950,000,000: Provided, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Vet-
erans Affairs shall submit to the Committees on Appro-
priations of the House of Representatives and the Senate 
an expenditure plan for funds provided under this head-
ing. 
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HR 1 PP 
NATIONAL CEMETERY ADMINISTRATION 
For an additional amount for ‘‘National Cemetery 
Administration’’ for monument and memorial repairs, 
$50,000,000: Provided, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Vet-
erans Affairs shall submit to the Committees on Appro-
priations of the House of Representatives and the Senate 
an expenditure plan for funds provided under this head-
ing. 
TITLE XI—DEPARTMENT OF 
STATE 
DEPARTMENT OF STATE 
ADMINISTRATION OF FOREIGN AFFAIRS 
CAPITAL INVESTMENT FUND 
For an additional amount for ‘‘Capital Investment 
Fund’’, $276,000,000, of which up to $120,000,000 shall 
be available for the design and construction of a backup 
information management facility in the United States to 
support mission-critical operations and projects, and up 
to $98,527,000 shall be available to carry out the Depart-
ment of State’s responsibilities under the Comprehensive 
National Cybersecurity Initiative: Provided, That the Sec-
retary of State shall submit to the Committees on Appro-
priations of the House of Representatives and the Senate 
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within 90 days of enactment of this Act a detailed spend-
ing plan for funds appropriated under this heading. 
INTERNATIONAL COMMISSIONS 
INTERNATIONAL BOUNDARY AND WATER COMMISSION, 
UNITED STATES AND MEXICO 
CONSTRUCTION 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Construction’’ for the 
water quantity program to meet immediate repair and re-
habilitation requirements, $224,000,000: Provided, That 
up to $2,000,000 may be transferred to, and merged with, 
funds available under the heading ‘‘International Bound-
ary and Water Commission, United States and Mexico— 
Salaries and Expenses’’, and such amount shall be in lieu 
of amounts available under section 1106 of this Act: Pro-
vided, That the Secretary of State shall submit to the 
Committees on Appropriations of the House of Represent-
atives and the Senate within 90 days of enactment of this 
Act a detailed spending plan for funds appropriated under 
this heading. 
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HR 1 PP 
TITLE
XII—TRANSPORTATION, 
AND
HOUSING
AND
URBAN 
DEVELOPMENT 
DEPARTMENT OF TRANSPORTATION 
FEDERAL AVIATION ADMINISTRATION 
GRANTS-IN-AID FOR AIRPORTS 
For an additional amount for ‘‘Grants-in-Aid for Air-
ports’’, to enable the Secretary of Transportation to make 
grants for discretionary projects as authorized by sub-
chapter I of chapter 471 and subchapter I of chapter 475 
of title 49, United States Code, $3,000,000,000: Provided, 
That such funds shall not be subject to apportionment for-
mulas, special apportionment categories, or minimum per-
centages under chapter 471: Provided further, That the 
conditions, certifications, and assurances required for 
grants under subchapter I of chapter 471 of such title 
apply: Provided further, That for purposes of applying sec-
tion 1104 of this Act to this appropriation, the deadline 
for grantees to enter into contracts or other binding com-
mitments to make use of not less than 50 percent of the 
funds awarded shall be 90 days after award of the grant. 
FEDERAL HIGHWAY ADMINISTRATION 
HIGHWAY INFRASTRUCTURE INVESTMENT 
For projects and activities eligible under section 133 
of title 23, United States Code, section 144 of such title 
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(without regard to subsection (g)), and sections 103, 119, 
134, 148, and 149 of such title, $30,000,000,000, of 
which $300,000,000 shall be for Indian reservation roads 
under section 204 of such title; $250,000,000 shall be for 
park roads and parkways under section 204 of such title; 
$20,000,000 shall be for highway surface transportation 
and technology training under section 140(b) of such title; 
and $20,000,000 shall be for disadvantaged business en-
terprises bonding assistance under section 332(e) of title 
49, United States Code: Provided, That the amount set 
aside from this appropriation pursuant to section 1106 of 
this Act shall not be more than 0.2 percent of the funds 
made available under this heading instead of the percent-
age specified in such section: Provided further, That, after 
making the set-asides authorized by the previous provisos, 
the funds made available under this heading shall be dis-
tributed among the States, and Puerto Rico, American 
Samoa, Guam, the Virgin Islands, and the Commonwealth 
of the Northern Mariana Islands, in the same ratio as the 
obligation limitation for fiscal year 2008 was distributed 
among the States in accordance with the formula specified 
in section 120(a)(6) of division K of Public Law 110–161, 
but, in the case of the Puerto Rico Highway Program and 
the Territorial Highway Program, under section 120(a)(5) 
of such division: Provided further, That 45 percent of the 
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funds distributed to a State under this heading shall be 
suballocated within the State in the manner and for the 
purposes described in section 133(d) of title 23, United 
States Code, (without regard to the comparison to fiscal 
year 2005 in paragraph (2)): Provided further, That in 
selecting projects to be funded, recipients shall give pri-
ority to projects that can award contracts within 90 days 
of enactment of this Act, are included in an approved 
Statewide Transportation Improvement Program (STIP) 
and/or Metropolitan Transportation Improvement Pro-
gram (TIP), are projected for completion within a three- 
year time frame, and are located in economically dis-
tressed areas as defined by section 301 of the Public 
Works and Economic Development Act of 1965, as 
amended (42 U.S.C. 3161): Provided further, That funds 
made available under this heading shall be administered 
as if apportioned under chapter 1 of title 23, United 
States Code, except for funds made available for Indian 
reservation roads and park roads and parkways which 
shall be administered in accordance with chapter 2 of title 
23, United States Code: Provided further, That the Fed-
eral share payable on account of any project or activity 
carried out with funds made available under this heading 
shall, at the option of the recipient, be up to 100 percent 
of the total cost thereof: Provided further, That funds 
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made available by this Act shall not be obligated for the 
purposes authorized under section 115(b) of title 23, 
United States Code: Provided further, That the provisions 
of section 1101(b) of Public Law 109–59 shall apply to 
funds made available under this heading: Provided further, 
That, in lieu of the redistribution required by section 
1104(b) of this Act, if less than 50 percent of the funds 
made available to each State and territory under this 
heading are obligated within 90 days after the date of dis-
tribution of those funds to the States and territories, then 
the portion of the 50 percent of the total funding distrib-
uted to the State or territory that has not been obligated 
shall be redistributed, in the manner described in section 
120(c) of division K of Public Law 110–161, to those 
States and territories that have obligated at least 50 per-
cent of the funds made available under this heading and 
are able to obligate amounts in addition to those pre-
viously distributed, except that, for those funds suballo-
cated within the State, if less than 50 percent of the funds 
so suballocated within the State are obligated within 75 
days of suballocation, then the portion of the 50 percent 
of funding so suballocated that has not been obligated will 
be returned to the State for use anywhere in the State 
prior to being redistributed in accordance with the first 
part of this proviso: Provided further, That, in lieu of the 
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redistribution required by section 1104(b) of this Act, any 
funds made available under this heading that are not obli-
gated by August 1, 2010, shall be redistributed, in the 
manner described in section 120(c) of division K of Public 
Law 110–161, to those States able to obligate amounts 
in addition to those previously distributed, except that 
funds suballocated within the State that are not obligated 
by June 1, 2010, will be returned to the State for use 
anywhere in the State prior to being redistributed in ac-
cordance with the first part of this proviso: Provided fur-
ther, That notwithstanding section 1103 of this Act, funds 
made available under this heading shall be apportioned not 
later than 7 days after the date of enactment of this Act. 
FEDERAL RAILROAD ADMINISTRATION 
CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL 
SERVICE 
For an additional amount for ‘‘Capital Assistance for 
Intercity Passenger Rail Service’’ to enable the Secretary 
of Transportation to make grants for capital costs as au-
thorized by chapter 244 of title 49 United States Code, 
$300,000,000: Provided, That notwithstanding section 
1103 of this Act, the Secretary shall give preference to 
projects for the repair, rehabilitation, upgrade, or pur-
chase of railroad assets or infrastructure that can be 
awarded within 90 days of enactment of this Act: Provided 
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further, That in awarding grants for the acquisition of a 
piece of rolling stock or locomotive, the Secretary shall 
give preference to FRA-compliant rolling stock and loco-
motives: Provided further, That the Secretary shall give 
preference to projects that support the development of 
intercity high speed rail service: Provided further, That the 
Federal share shall be, at the option of the recipient, up 
to 100 percent. 
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL 
RAILROAD PASSENGER CORPORATION 
For an additional amount for ‘‘Capital and Debt 
Service Grants to the National Railroad Passenger Cor-
poration’’ (Amtrak) to enable the Secretary of Transpor-
tation to make capital grants to Amtrak as authorized by 
section 101(c) of the Passenger Rail Investment and Im-
provement
Act
of
2008
(Public
Law
110–432), 
$800,000,000: Provided, That priority shall be given to 
projects for the repair, rehabilitation, or upgrade of rail-
road assets or infrastructure: Provided further, That none 
of the funds under this heading shall be used to subsidize 
the operating losses of Amtrak: Provided further, Notwith-
standing section 1103 of this Act, funds made available 
under this heading shall be awarded not later than 7 days 
after the date of enactment of this Act. 
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FEDERAL TRANSIT ADMINISTRATION 
TRANSIT CAPITAL ASSISTANCE 
For transit capital assistance grants, $6,000,000,000 
(increased by $1,500,000,000), of which $5,400,000,000 
(increased by $1,350,000,000) shall be for grants under 
section 5307 of title 49, United States Code and shall be 
apportioned in accordance with section 5336 of such title 
(other than subsections (i)(1) and (j)) but may not be 
combined or commingled with any other funds apportioned 
under such section 5336, and of which $600,000,000 (in-
creased by $150,000,000) shall be for grants under sec-
tion 5311 of such title and shall be apportioned in accord-
ance with such section 5311 but may not be combined or 
commingled with any other funds apportioned under that 
section: Provided, That of the funds provided for section 
5311 under this heading, 3 percent shall be made available 
for section 5311(c)(1): Provided further, That applicable 
chapter 53 requirements shall apply except that the Fed-
eral share of the costs for which a grant is made under 
this heading shall be, at the option of the recipient, up 
to 100 percent: Provided further, In lieu of the require-
ments of section 1103 of this Act, funds made available 
under this heading shall be apportioned not later than 7 
days after the date of enactment of this Act: Provided fur-
ther, That for purposes of applying section 1104 of this 
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Act to this appropriation, the deadline for grantees to 
enter into obligations to make use of not less than 50 per-
cent of the funds awarded shall be 90 days after appor-
tionment: Provided further, That the provisions of section 
1101(b) of Public Law 109–59 shall apply to funds made 
available under this heading: Provided further, That not-
withstanding any other provision of law, of the funds ap-
portioned in accordance with section 5336, up to three- 
quarters of 1 percent shall be available for administrative 
expenses and program management oversight and of the 
funds apportioned in accordance with section 5311, up to 
one-half of 1 percent shall be available for administrative 
expenses and program management oversight and both 
amounts shall remain available for obligation until Sep-
tember 30, 2012: Provided further, That the preceding 
proviso shall apply in lieu of the provisions in section 1106 
of this Act. 
FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT 
For an amount for capital expenditures authorized 
under section 5309(b)(2) of title 49, United States Code, 
$2,000,000,000: Provided, That the Secretary of Trans-
portation shall apportion funds under this heading pursu-
ant to the formula set forth in section 5337 of title 49, 
United States Code: Provided further, That the funds ap-
propriated under this heading shall not be commingled 
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with funds available under the Formula and Bus Grants 
account: Provided further, In lieu of the requirements of 
section 1103 of this Act, funds made available under this 
heading shall be apportioned not later than 7 days after 
the date of enactment of this Act: Provided further, That 
for purposes of applying section 1104 of this Act to this 
appropriation, the deadline for grantees to enter into obli-
gations to make use of not less than 50 percent of the 
funds awarded shall be 90 days after apportionment: Pro-
vided further, That applicable chapter 53 requirements 
shall apply except that the Federal share of the costs for 
which a grant is made under this heading shall be, at the 
option of the recipient, up to 100 percent: Provided fur-
ther, That the provisions of section 1101(b) of Public Law 
109–59 shall apply to funds made available under this 
heading: Provided further, That notwithstanding any other 
provision of law, up to 1 percent of the funds under this 
heading shall be available for administrative expenses and 
program management oversight and shall remain available 
for obligation until September 30, 2012: Provided further, 
That the preceding proviso shall apply in lieu of the provi-
sions in section 1106 of this Act. 
CAPITAL INVESTMENT GRANTS 
For an additional amount for ‘‘Capital Investment 
Grants’’, as authorized under section 5338(c)(4) of title 
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49, United States Code, and allocated under section 
5309(m)(2)(A) of such title, to enable the Secretary of 
Transportation to make discretionary grants as authorized 
by section 5309(d) and (e) of such title, $1,000,000,000 
(increased
by
$1,500,000,000):
Provided,
That
such 
amount shall be allocated without regard to the limitation 
under section 5309(m)(2)(A)(i): Provided further, That in 
selecting projects to be funded, priority shall be given to 
projects that are currently in construction or are able to 
award contracts based on bids within 90 days of enact-
ment of this Act: Provided further, That for purposes of 
applying section 1104 of this Act to this appropriation, 
the deadline for grantees to enter into contracts or other 
binding commitments to make use of not less than 50 per-
cent of the funds awarded shall be 90 days after award: 
Provided further, That the provisions of section 1101(b) 
of Public Law 109–59 shall apply to funds made available 
under this heading: Provided further, That applicable 
chapter 53 requirements shall apply, except that notwith-
standing any other provision of law, up to 1 percent of 
the funds under this heading shall be available for admin-
istrative expenses and program management oversight and 
shall remain available for obligation until September 30, 
2012: Provided further, That the preceding proviso shall 
apply in lieu of the provisions in section 1106 of this Act. 
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HR 1 PP 
DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT 
PUBLIC AND INDIAN HOUSING 
PUBLIC HOUSING CAPITAL FUND 
For an additional amount for ‘‘Public Housing Cap-
ital Fund’’ to carry out capital and management activities 
for public housing agencies, as authorized under section 
9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) (‘‘the Act’’), $5,000,000,000: Provided, That the 
Secretary of Housing and Urban Development shall dis-
tribute at least $4,000,000,000 of this amount by the 
same formula used for amounts made available in fiscal 
year 2008: Provided further, That public housing authori-
ties shall give priority to capital projects that can award 
contracts based on bids within 120 days from the date 
the funds are made available to the public housing au-
thorities: Provided further, That public housing agencies 
shall give priority consideration to the rehabilitation of va-
cant rental units: Provided further, That notwithstanding 
any other provision of the Act or regulations: (1) funding 
provided herein may not be used for Operating Fund ac-
tivities pursuant to section 9(g) of the Act; and (2) any 
restriction of funding to replacement housing uses shall 
be inapplicable: Provided further, That public housing 
agencies shall prioritize capital projects underway or al-
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ready in their 5-year plans: Provided further, That of the 
amount provided under this heading, the Secretary may 
obligate up to $1,000,000,000, for competitive grants to 
public housing authorities for activities including: (1) in-
vestments that leverage private sector funding or financ-
ing for housing renovations and energy conservation ret-
rofit investments; (2) rehabilitation of units using sustain-
able materials and methods that improve energy efficiency, 
reduce energy costs, or preserve and improve units with 
good access to public transportation or employment cen-
ters; (3) increase the availability of affordable rental hous-
ing by expediting rehabilitation projects to bring vacant 
units into use or by filling the capital investment gap for 
redevelopment or replacement housing projects which have 
been approved or are otherwise ready to proceed but are 
stalled due to the inability to obtain anticipated private 
capital; or (4) address the needs of seniors and persons 
with disabilities through improvements to housing and re-
lated facilities which attract or promote the coordinated 
delivery of supportive services: Provided further, That the 
Secretary may waive statutory or regulatory provisions re-
lated to the obligation and expenditure of capital funds 
if necessary to facilitate the timely expenditure of funds 
(except for requirements related to fair housing, non-
discrimination, labor standards, and the environment). 
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ELDERLY, DISABLED, AND SECTION 8 ASSISTED HOUSING 
ENERGY RETROFIT 
For grants or loans to owners of properties receiving 
project-based assistance pursuant to section 202 of the 
Housing Act of 1959 (12 U.S.C. 17012), section 811 of 
the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8013), or section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f), to accomplish energy 
retrofit investments, $2,500,000,000: Provided, That such 
loans or grants shall be provided through the Office of 
Affordable Housing Preservation of the Department of 
Housing and Urban Development, on such terms and con-
ditions as the Secretary of Housing and Urban Develop-
ment deems appropriate: Provided further, That eligible 
owners must have at least a satisfactory management re-
view rating, be in substantial compliance with applicable 
performance standards and legal requirements, and com-
mit to an additional period of affordability determined by 
the Secretary: Provided further, That the Secretary shall 
undertake appropriate underwriting and oversight with re-
spect to such transactions: Provided further, That the Sec-
retary may set aside funds made available under this 
heading for an efficiency incentive payable upon satisfac-
tory completion of energy retrofit investments, and may 
provide additional incentives if such investments resulted 
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in extraordinary job creation for low-income and very low- 
income persons: Provided further, that of the funds pro-
vided under this heading, 1 percent shall be available only 
for staffing, training, technical assistance, technology, 
monitoring, research and evaluation activities. 
NATIVE AMERICAN HOUSING BLOCK GRANTS 
For an additional amount for ‘‘Native American 
Housing Block Grants’’, as authorized under title I of the 
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 
seq.), $500,000,000: Provided, That $250,000,000 of the 
amount appropriated under this heading shall be distrib-
uted according to the same funding formula used in fiscal 
year 2008: Provided further, That in selecting projects to 
be funded, recipients shall give priority to projects that 
can award contracts based on bids within 120 days from 
the date that funds are available to the recipients: Pro-
vided further, That in allocating the funds appropriated 
under this heading, the Secretary of Housing and Urban 
Development shall not require an additional action plan 
from grantees: Provided further, That the Secretary may 
obligate $250,000,000 of the amount appropriated under 
this heading for competitive grants to eligible entities that 
apply for funds as authorized under NAHASDA: Provided 
further, That in awarding competitive funds, the Secretary 
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shall give priority to projects that will spur construction 
and rehabilitation and will create employment opportuni-
ties for low-income and unemployed persons. 
COMMUNITY PLANNING AND DEVELOPMENT 
COMMUNITY DEVELOPMENT FUND 
For an additional amount for ‘‘Community Develop-
ment Fund’’ $1,000,000,000, to carry out the community 
development block grant program under title I of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.): Provided, That the amount appro-
priated in this paragraph shall be distributed according 
to the same funding formula used in fiscal year 2008: Pro-
vided further, That in allocating the funds appropriated 
in this paragraph, the Secretary of Housing and Urban 
Development shall not require an additional action plan 
from grantees: Provided further, That in selecting projects 
to be funded, recipients shall give priority to projects that 
can award contracts based on bids within 120 days from 
the date the funds are made available to the recipients; 
Provided further, That in administering funds provided in 
this paragraph, the Secretary may waive any provision of 
any statute or regulation that the Secretary administers 
in connection with the obligation by the Secretary or the 
use by the recipient of these funds (except for require-
ments related to fair housing, nondiscrimination, labor 
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standards, and the environment), upon a finding that such 
waiver is required to facilitate the timely use of such funds 
and would not be inconsistent with the overall purpose of 
the statute. 
For a further additional amount for ‘‘Community De-
velopment Fund’’, $4,190,000,000, to be used for neigh-
borhood stabilization activities related to emergency as-
sistance for the redevelopment of abandoned and fore-
closed homes as authorized under division B, title III of 
the Housing and Economic Recovery Act of 2008 (Public 
Law 110–289), of which— 
(1) not less than $3,440,000,000 shall be allo-
cated by a competition for which eligible entities 
shall be States, units of general local government, 
and nonprofit entities or consortia of nonprofit enti-
ties: Provided, That the award criteria for such com-
petition shall include grantee capacity, leveraging 
potential, targeted impact of foreclosure prevention, 
and any additional factors determined by the Sec-
retary of Housing and Urban Development: Provided 
further, that the Secretary may establish a minimum 
grant size: Provided further, That amounts made 
available under this Section may be used to: (A) es-
tablish financing mechanisms for purchase and rede-
velopment of foreclosed-upon homes and residential 
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properties, including such mechanisms as soft-sec-
onds, loan loss reserves, and shared-equity loans for 
low- and moderate-income homebuyers; (B) purchase 
and rehabilitate homes and residential properties 
that have been abandoned or foreclosed upon, in 
order to sell or rent such homes and properties; (C) 
establish and operate land banks for homes that 
have been foreclosed upon; (D) demolish foreclosed 
properties that have become blighted structures; and 
(E) redevelop demolished or vacant foreclosed prop-
erties in order to sell or rent such properties; and 
(2) up to $750,000,000 shall be awarded by 
competition to nonprofit entities or consortia of non-
profit entities to provide community stabilization as-
sistance by: (A) accelerating state and local govern-
ment and nonprofit productivity; (B) increasing the 
scale and efficiency of property transfers of fore-
closed and vacant residential properties from finan-
cial institutions and government entities to qualified 
local housing providers in order to return the prop-
erties to productive affordable housing use; (C) 
building industry and property management capac-
ity; and (D) partnering with private sector real es-
tate developers and contractors and leveraging pri-
vate sector capital: Provided further, That such com-
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munity stabilization assistance shall be provided pri-
marily in States and areas with high rates of de-
faults and foreclosures to support the acquisition, re-
habilitation and property management of single-fam-
ily and multi-family homes and to work in partner-
ship with the private sector real estate industry and 
to leverage available private and public funds for 
those purposes: Provided further, That for purposes 
of this paragraph qualified local housing providers 
shall be nonprofit organizations with demonstrated 
capabilities in real estate development or acquisition 
and rehabilitation or property management of single- 
or multi-family homes, or local or state governments 
or instrumentalities of such governments: Provided 
further, That qualified local housing providers shall 
be expected to utilize and leverage additional local 
nonprofit, governmental, for-profit and private re-
sources: 
Provided further, That in the case of any foreclosure on 
any dwelling or residential real property acquired with any 
amounts made available under this heading, any successor 
in interest in such property pursuant to the foreclosure 
shall assume such interest subject to: (1) the provision by 
such successor in interest of a notice to vacate to any bona 
fide tenant at least 90 days before the effective date of 
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such notice; and (2) the rights of any bona fide tenant, 
as of the date of such notice of foreclosure: (A) under any 
bona fide lease entered into before the notice of foreclosure 
to occupy the premises until the end of the remaining term 
of the lease, except that a successor in interest may termi-
nate a lease effective on the date of sale of the unit to 
a purchaser who will occupy the unit as a primary resi-
dence, subject to the receipt by the tenant of the 90-day 
notice under this paragraph; or (B) without a lease or with 
a lease terminable at will under State law, subject to the 
receipt by the tenant of the 90-day notice under this para-
graph, except that nothing in this paragraph shall affect 
the requirements for termination of any Federal- or State- 
subsidized tenancy or of any State or local law that pro-
vides longer time periods or other additional protections 
for tenants: Provided further, That, for purposes of this 
paragraph, a lease or tenancy shall be considered bona fide 
only if: (1) the mortgagor under the contract is not the 
tenant; (2) the lease or tenancy was the result of an arms- 
length transaction; and (3) the lease or tenancy requires 
the receipt of rent that is not substantially less than fair 
market rent for the property: Provided further, That the 
recipient of any grant or loan from amounts made avail-
able under this heading may not refuse to lease a dwelling 
unit in housing assisted with such loan or grant to a hold-
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er of a voucher or certificate of eligibility under section 
8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) because of the status of the prospective tenant as 
such a holder: Provided further, That in the case of any 
qualified foreclosed housing for which funds made avail-
able under this heading are used and in which a recipient 
of assistance under section 8(o) of the U.S. Housing Act 
of 1937 resides at the time of acquisition or financing, 
the owner and any successor in interest shall be subject 
to the lease and to the housing assistance payments con-
tract for the occupied unit: Provided further, That 
vacating the property prior to sale shall not constitute 
good cause for termination of the tenancy unless the prop-
erty is unmarketable while occupied or unless the owner 
or subsequent purchaser desires the unit for personal or 
family use: Provided further, That this paragraph shall not 
preempt any State or local law that provides more protec-
tion for tenants: Provided further, That amounts made 
available under this heading may be used for the costs 
of demolishing foreclosed housing that is deteriorated or 
unsafe: Provided further, That the amount for demolition 
of such housing may not exceed 10 percent of amounts 
allocated under this paragraph to States and units of gen-
eral local government: Provided further, That no amounts 
from a grant made under this paragraph may be used to 
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demolish any public housing (as such term is defined in 
section 3 of the United States Housing Act of 1937 (42 
U.S.C. 1437a)): Provided further, That section 2301(d)(4) 
of the Housing and Economic Recovery Act of 2008 (Pub-
lic Law 110–289) is repealed. 
HOME INVESTMENT PARTNERSHIPS PROGRAM 
For an additional amount for ‘‘HOME Investment 
Partnerships Program’’ as authorized under Title II of the 
Cranston-Gonzalez National Affordable Housing Act (‘‘the 
Act’’), $1,500,000,000: Provided, That the amount appro-
priated under this heading shall be distributed according 
to the same funding formula used in fiscal year 2008: Pro-
vided further, That the Secretary of Housing and Urban 
Development may waive statutory or regulatory provisions 
related to the obligation of such funds if necessary to fa-
cilitate the timely expenditure of funds (except for require-
ments related to fair housing, nondiscrimination, labor 
standards, and the environment): Provided further, That 
in selecting projects to be funded, recipients shall give pri-
ority to projects that can award contracts based on bids 
within 120 days from the date that funds are available 
to the recipients. 
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SELF-HELP AND ASSISTED HOMEOWNERSHIP 
OPPORTUNITY PROGRAM 
For an additional amount for ‘‘Self-Help and As-
sisted Homeownership Opportunity Program’’, as author-
ized under section 11 of the Housing Opportunity Pro-
gram Extension Act of 1996, $10,000,000: Provided, That 
in awarding competitive grant funds, the Secretary of 
Housing and Urban Development shall give priority to the 
provision and rehabilitation of sustainable, affordable sin-
gle and multifamily units in low-income, high-need rural 
areas: Provided further, That in selecting projects to be 
funded, grantees shall give priority to projects that can 
award contracts based on bids within 120 days from the 
date the funds are made available to the grantee. 
HOMELESS ASSISTANCE GRANTS 
For an additional amount for ‘‘Homeless Assistance 
Grants’’, for the emergency shelter grants program as au-
thorized under subtitle B of tile IV of the McKinney-Vento 
Homeless Assistance Act, $1,500,000,000: Provided, That 
in addition to homeless prevention activities specified in 
the emergency shelter grant program, funds provided 
under this heading may be used for the provision of short- 
term or medium-term rental assistance; housing relocation 
and stabilization services including housing search, medi-
ation or outreach to property owners, legal services, credit 
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repair, resolution of security or utility deposits, utility pay-
ments, rental assistance for a final month at a location, 
and moving costs assistance; or other appropriate home-
lessness prevention activities; Provided further, That these 
funds shall be allocated pursuant to the formula author-
ized by section 413 of such Act: Provided further, That 
the Secretary of Housing and Urban Development may 
waive statutory or regulatory provisions related to the obli-
gation and use of emergency shelter grant funds necessary 
to facilitate the timely expenditure of funds. 
OFFICE OF HEALTHY HOMES AND LEAD HAZARD 
CONTROL 
LEAD HAZARD REDUCTION 
For an additional amount for ‘‘Lead Hazard Reduc-
tion’’, for the Lead Hazard Reduction Program as author-
ized by section 1011 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992, $100,000,000: Provided, 
That for purposes of environmental review, pursuant to 
the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) and other provisions of law that further the 
purposes of such Act, a grant under the Healthy Homes 
Initiative,
Operation
Lead
Elimination
Action
Plan 
(LEAP), or the Lead Technical Studies program under 
this heading or under prior appropriations Acts for such 
purposes under this heading, shall be considered to be 
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funds for a special project for purposes of section 305(e) 
of the Multifamily Housing Property Disposition Reform 
Act of 1994: Provided further, That of the total amount 
made available under this heading, $30,000,000 shall be 
made available on a competitive basis for areas with the 
highest lead paint abatement needs. 
GENERAL PROVISIONS, THIS TITLE 
SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING 
REQUIREMENTS TO ENSURE TRANSPARENCY 
AND ACCOUNTABILITY. 
(a) MAINTENANCE OF EFFORT.—Not later than 30 
days after the date of enactment of this Act, for each 
amount that is distributed to a State or agency thereof 
from an appropriation in this Act for a covered program, 
the Governor of the State shall certify that the State will 
maintain its effort with regard to State funding for the 
types of projects that are funded by the appropriation. As 
part of this certification, the Governor shall submit to the 
covered agency a statement identifying the amount of 
funds the State planned to expend as of October 1, 2008, 
from non-Federal sources in the period beginning on the 
date of enactment of this Act through September 30, 
2010, for the types of projects that are funded by the ap-
propriation. 
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(b) FAILURE TO MAINTAIN EFFORT.—If a Governor 
is unable to certify that Federal funds will not supplant 
non-Federal funds pursuant to subsection (a), then the 
Federal funds apportioned to that State under this Act 
that will supplant non-Federal funds will be recaptured 
by the appropriate Federal agency and redistributed to 
States or agencies that can spend the Federal funds with-
out supplanting non-Federal funds. 
(c) PERIODIC REPORTS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, each grant recipient shall submit to 
the covered agency from which they received funding 
periodic reports on the use of the funds appropriated 
in this Act for covered programs. Such reports shall 
be collected and compiled by the covered agency and 
transmitted to Congress. 
(2) CONTENTS OF REPORTS.—For amounts re-
ceived under each covered program by a grant re-
cipient under this Act, the grant recipient shall in-
clude in the periodic reports information tracking— 
(A) the amount of Federal funds appro-
priated, allocated, obligated, and outlayed under 
the appropriation; 
(B) the number of projects that have been 
put out to bid under the appropriation and the 
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amount of Federal funds associated with such 
projects; 
(C) the number of projects for which con-
tracts have been awarded under the appropria-
tion and the amount of Federal funds associ-
ated with such contracts; 
(D) the number of projects for which work 
has
begun
under
such
contracts
and
the 
amount of Federal funds associated with such 
contracts; 
(E) the number of projects for which work 
has been completed under such contracts and 
the amount of Federal funds associated with 
such contracts; 
(F) the number of jobs created or sus-
tained
by
the
Federal
funds
provided
for 
projects under the appropriation, including in-
formation on job sectors and pay levels; and 
(G) for each covered program report infor-
mation tracking the actual aggregate expendi-
tures by each grant recipient from non-Federal 
sources for projects eligible for funding under 
the program during the period beginning on the 
date of enactment of this Act through Sep-
tember 30, 2010, as compared to the level of 
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such expenditures that were planned to occur 
during such period as of the date of enactment 
of this Act. 
(3) TIMING OF REPORTS.—Each grant recipient 
shall submit the first of the periodic reports required 
under this subsection not later than 30 days after 
the date of enactment of this Act and shall submit 
updated reports not later than 60 days, 120 days, 
180 days, 1 year, and 3 years after such date of en-
actment. 
(d) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) COVERED
AGENCY.—The term ‘‘covered 
agency’’ means the Federal Aviation Administration, 
the Federal Highway Administration, the Federal 
Railroad Administration, and the Federal Transit 
Administration of the Department of Transpor-
tation. 
(2) COVERED
PROGRAM.—The term ‘‘covered 
program’’ means funds appropriated in this Act for 
‘‘Grants-in-Aid for Airports’’ to the Federal Aviation 
Administration; for ‘‘Highway Infrastructure Invest-
ment’’ to the Federal Highway Administration; for 
‘‘Capital Assistance for Intercity Passenger Rail 
Service’’ to the Federal Railroad Administration; for 
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‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In-
frastructure Investment’’, and ‘‘Capital Investment 
Grants’’ to the Federal Transit Administration. 
(3) GRANT RECIPIENT.—The term ‘‘grant re-
cipient’’ means a State or other recipient of assist-
ance provided under a covered program in this Act. 
Such term does not include a Federal department or 
agency. 
SEC. 12002. FHA LOAN LIMITS FOR 2009. 
(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
For mortgages for which the mortgagee issues credit ap-
proval for the borrower during calendar year 2009, if the 
dollar amount limitation on the principal obligation of a 
mortgage determined under section 203(b)(2) of the Na-
tional Housing Act (12 U.S.C. 1709(b)(2)) for any size 
residence for any area is less than such dollar amount lim-
itation that was in effect for such size residence for such 
area for 2008 pursuant to section 202 of the Economic 
Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 
620), notwithstanding any other provision of law, the max-
imum dollar amount limitation on the principal obligation 
of a mortgage for such size residence for such area for 
purposes of such section 203(b)(2) shall be considered (ex-
cept for purposes of section 255(g) of such Act (12 U.S.C. 
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1715z–20(g))) to be such dollar amount limitation in ef-
fect for such size residence for such area for 2008. 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
Notwithstanding any other provision of law, if the Sec-
retary of Housing and Urban Development determines, for 
any geographic area that is smaller than an area for which 
dollar amount limitations on the principal obligation of a 
mortgage are determined under section 203(b)(2) of the 
National Housing Act, that a higher such maximum dollar 
amount limitation is warranted for any particular size or 
sizes of residences in such sub-area by higher median 
home prices in such sub-area, the Secretary may, for mort-
gages for which the mortgagee issues credit approval for 
the borrower during calendar year 2009, increase the max-
imum dollar amount limitation for such size or sizes of 
residences for such sub-area that is otherwise in effect (in-
cluding pursuant to subsection (a) of this section), but in 
no case to an amount that exceeds the amount specified 
in section 202(a)(2) of the Economic Stimulus Act of 
2008. 
SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009. 
(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
For mortgages originated during calendar year 2009, if 
the limitation on the maximum original principal obliga-
tion of a mortgage that may purchased by the Federal 
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National Mortgage Association or the Federal Home Loan 
Mortgage Corporation determined under section 302(b)(2) 
of the Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Fed-
eral Home Loan Mortgage Corporation Act (12 U.S.C. 
1754(a)(2)), respectively, for any size residence for any 
area is less than such maximum original principal obliga-
tion limitation that was in effect for such size residence 
for such area for 2008 pursuant to section 201 of the Eco-
nomic Stimulus Act of 2008 (Public Law 110–185; 122 
Stat. 619), notwithstanding any other provision of law, the 
limitation on the maximum original principal obligation of 
a mortgage for such Association and Corporation for such 
size residence for such area shall be such maximum limita-
tion in effect for such size residence for such area for 
2008. 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
Notwithstanding any other provision of law, if the Direc-
tor of the Federal Housing Finance Agency determines, 
for any geographic area that is smaller than an area for 
which limitations on the maximum original principal obli-
gation of a mortgage are determined for the Federal Na-
tional Mortgage Association or the Federal Home Loan 
Mortgage Corporation, that a higher such maximum origi-
nal principal obligation limitation is warranted for any 
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particular size or sizes of residences in such sub-area by 
higher median home prices in such sub-area, the Director 
may, for mortgages originated during 2009, increase the 
maximum original principal obligation limitation for such 
size or sizes of residences for such sub-area that is other-
wise in effect (including pursuant to subsection (a) of this 
section) for such Association and Corporation, but in no 
case to an amount that exceeds the amount specified in 
the matter following the comma in section 201(a)(1)(B) 
of the Economic Stimulus Act of 2008. 
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 
2009. 
For mortgages for which the mortgagee issues credit 
approval for the borrower during calendar year 2009, the 
second sentence of section 255(g) of the National Housing 
Act (12 U.S.C. 171520(g)) shall be considered to require 
that in no case may the benefits of insurance under such 
section 255 exceed 150 percent of the maximum dollar 
amount in effect under the sixth sentence of section 
305(a)(2) of the Federal Home Loan Mortgage Corpora-
tion Act (12 U.S.C. 1454(a)(2)). 
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TITLE XIII—STATE FISCAL 
STABILIZATION FUND 
DEPARTMENT OF EDUCATION 
STATE FISCAL STABILIZATION FUND 
For necessary expenses for a State Fiscal Stabiliza-
tion Fund, $79,000,000,000, which shall be administered 
by
the
Department
of
Education,
of
which 
$39,500,000,000 shall become available on July 1, 2009, 
and remain available through September 30, 2010, and 
$39,500,000,000 shall become available on July 1, 2010, 
and remain available through September 30, 2011: Pro-
vided, That the provisions of section 1103 of this Act shall 
not apply to the funds reserved under section 13001(c) 
of this title: Provided further, That the amount made 
available under section 13001(b) of this title for adminis-
tration and oversight shall take the place of the set-aside 
under section 1106 of this Act. 
GENERAL PROVISIONS, THIS TITLE 
SEC. 13001. ALLOCATIONS. 
(a) OUTLYING AREAS.—From each year’s appropria-
tion to carry out this title, the Secretary of Education 
shall first allocate one half of 1 percent to the outlying 
areas on the basis of their respective needs, as determined 
by the Secretary, for activities consistent with this title 
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under such terms and conditions as the Secretary may de-
termine. 
(b) ADMINISTRATION AND OVERSIGHT.—The Sec-
retary may, in addition, reserve up to $12,500,000 each 
year for administration and oversight of this title, includ-
ing for program evaluation. 
(c) RESERVATION FOR ADDITIONAL PROGRAMS.— 
After reserving funds under subsections (a) and (b), the 
Secretary shall reserve $7,500,000,000 each year for 
grants under sections 13006 and 13007. 
(d) STATE ALLOCATIONS.—After carrying out sub-
sections (a), (b), and (c), the Secretary shall allocate the 
remaining funds made available to carry out this title to 
the States as follows: 
(1) 61 percent on the basis of their relative 
population of individuals aged 5 through 24. 
(2) 39 percent on the basis of their relative 
total population. 
(e) STATE GRANTS.—From funds allocated under 
subsection (d), the Secretary shall make grants to the 
Governor of each State. 
(f) REALLOCATION.—The Governor shall return to 
the Secretary any funds received under subsection (e) that 
the Governor does not obligate within one year of receiving 
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a grant, and the Secretary shall reallocate such funds to 
the remaining States in accordance with subsection (d). 
SEC. 13002. STATE USES OF FUNDS. 
(a) EDUCATION FUND.— 
(1) IN
GENERAL.—For each fiscal year, the 
Governor shall use at least 61 percent of the State’s 
allocation under section 13001 for the support of el-
ementary, secondary, and postsecondary education. 
(2) RESTORING 2008 STATE SUPPORT FOR EDU-
CATION.— 
(A)
IN
GENERAL.—The
Governor
shall 
first use the funds described in paragraph (1)— 
(i) to provide the amount of funds, 
through the State’s principal elementary 
and secondary funding formula, that is 
needed to restore State support for elemen-
tary and secondary education to the fiscal 
year 2008 level; and 
(ii) to provide the amount of funds to 
public institutions of higher education in 
the State that is needed to restore State 
support for postsecondary education to the 
fiscal year 2008 level. 
(B) SHORTFALL.—If the Governor deter-
mines that the amount of funds available under 
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paragraph (1) is insufficient to restore State 
support for education to the levels described in 
clauses (i) and (ii) of subparagraph (A), the 
Governor shall allocate those funds between 
those clauses in proportion to the relative short-
fall in State support for the education sectors 
described in those clauses. 
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS 
OPERATED
BY
LOCAL
EDUCATIONAL
AGENCIES.— 
After carrying out paragraph (2), the Governor shall 
use any funds remaining under paragraph (1) to 
provide local educational agencies in the State with 
subgrants based on their relative shares of funding 
under part A of title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311 et 
seq.) for the most recent year for which data are 
available. 
(b) OTHER GOVERNMENT SERVICES.—For each fis-
cal year, the Governor may use up to 39 percent of the 
State’s allocation under section 1301 for public safety and 
other government services, which may include assistance 
for elementary and secondary education and public institu-
tions of higher education. 
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SEC.
13003.
USES
OF
FUNDS
BY
LOCAL
EDUCATIONAL 
AGENCIES. 
(a) IN GENERAL.—A local educational agency that 
receives funds under this title may use the funds for any 
activity authorized by the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 
the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 2301 
et seq.) (‘‘the Perkins Act’’). 
(b) PROHIBITION.—A local educational agency may 
not use funds received under this title for capital projects 
unless authorized by ESEA, IDEA, or the Perkins Act. 
SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER 
EDUCATION. 
(a) IN GENERAL.—A public institution of higher edu-
cation that receives funds under this title shall use the 
funds for education and general expenditures, and in such 
a way as to mitigate the need to raise tuition and fees 
for in-State students. 
(b) PROHIBITION.—An institution of higher edu-
cation may not use funds received under this title to in-
crease its endowment. 
(c) ADDITIONAL PROHIBITION.—An institution of 
higher education may not use funds received under this 
title for construction, renovation, or facility repair. 
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SEC. 13005. STATE APPLICATIONS. 
(a) IN GENERAL.—The Governor of a State desiring 
to receive an allocation under section 13001 shall submit 
an annual application at such time, in such manner, and 
containing such information as the Secretary may reason-
ably require. 
(b) FIRST YEAR APPLICATION.—In the first of such 
applications, the Governor shall— 
(1) include the assurances described in sub-
section (e); 
(2) provide baseline data that demonstrates the 
State’s current status in each of the areas described 
in such assurances; and 
(3) describe how the State intends to use its al-
location. 
(c) SECOND YEAR APPLICATION.—In the second year 
application, the Governor shall— 
(1) include the assurances described in sub-
section (e); and 
(2) describe how the State intends to use its al-
location. 
(d) INCENTIVE GRANT APPLICATION.—The Governor 
of a State seeking a grant under section 13006 shall— 
(1) submit an application for consideration; 
(2) describe the status of the State’s progress 
in each of the areas described in subsection (e), and 
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the strategies the State is employing to help ensure 
that high-need students in the State continue mak-
ing progress towards meeting the State’s student 
academic achievement standards; 
(3) describe how the State would use its grant 
funding, including how it will allocate the funds to 
give priority to high-need schools and local edu-
cational agencies; and 
(4) include a plan for evaluating its progress in 
closing achievement gaps. 
(e) ASSURANCES.—An application under subsection 
(b) or (c) shall include the following assurances: 
(1) MAINTENANCE OF EFFORT.— 
(A) ELEMENTARY AND SECONDARY EDU-
CATION.—The State will, in each of fiscal years 
2009 and 2010, maintain State support for ele-
mentary and secondary education at least at 
the level of such support in fiscal year 2006. 
(B) HIGHER EDUCATION.—The State will, 
in each of fiscal years 2009 and 2010, maintain 
State support for public institutions of higher 
education (not including support for capital 
projects or for research and development) at 
least at the level of such support in fiscal year 
2006. 
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(2) ACHIEVING EQUITY IN TEACHER DISTRIBU-
TION.—The State will take actions to comply with 
section
1111(b)(8)(C)
of
ESEA
(20
U.S.C. 
6311(b)(8)(C)) in order to address inequities in the 
distribution of teachers between high-and low-pov-
erty schools, and to ensure that low-income and mi-
nority children are not taught at higher rates than 
other children by inexperienced, unqualified, or out- 
of-field teachers. 
(3)
IMPROVING
COLLECTION
AND
USE
OF 
DATA.—The State will establish a longitudinal data 
system that includes the elements described in sec-
tion 6401(e)(2)(D) of the America COMPETES Act 
(20 U.S.C. 9871). 
(4) ASSESSMENTS.—The State— 
(A) will enhance the quality of academic 
assessments described in section 1111(b)(3) of 
ESEA (20 U.S.C. 6311(b)(3)) through activi-
ties such as those described in section 6112(a) 
of such Act (20 U.S.C. 7301a(a)); and 
(B) will comply with the requirements of 
paragraphs 3(C)(ix) and (6) of section 1111(b) 
of ESEA (20 U.S.C. 6311(b)) and section 
612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) 
related to the inclusion of children with disabil-
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HR 1 PP 
ities and limited English proficient students in 
State assessments, the development of valid and 
reliable assessments for those students, and the 
provision of accommodations that enable their 
participation in State assessments. 
SEC. 13006. STATE INCENTIVE GRANTS. 
(a) IN GENERAL.—From the total amount reserved 
under section 13001(c) that is not used for section 13007, 
the Secretary shall, in fiscal year 2010, make grants to 
States that have made significant progress in meeting the 
objectives of paragraphs (2), (3), and (4) of section 
13005(e). 
(b) BASIS FOR GRANTS.—The Secretary shall deter-
mine which States receive grants under this section, and 
the amount of those grants, on the basis of information 
provided in State applications under section 13005 and 
such other criteria as the Secretary determines appro-
priate. 
(c) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—Each State receiving a grant under this section 
shall use at least 50 percent of the grant to provide local 
educational agencies in the State with subgrants based on 
their relative shares of funding under part A of title I of 
ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 
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HR 1 PP 
SEC. 13007. INNOVATION FUND. 
(a) IN GENERAL.— 
(1) PROGRAM ESTABLISHED.—From the total 
amount reserved under section 13001(c), the Sec-
retary may reserve up to $325,000,000 each year to 
establish an Innovation Fund, which shall consist of 
academic achievement awards that recognize States, 
local educational agencies, or schools that meet the 
requirements described in subsection (b). 
(2) BASIS FOR AWARDS.—The Secretary shall 
make awards to States, local educational agencies, 
or schools that have made significant gains in clos-
ing the achievement gap as described in subsection 
(b)(1)— 
(A) to allow such States, local educational 
agencies, and schools to expand their work and 
serve as models for best practices; 
(B) to allow such States, local educational 
agencies, and schools to work in partnership 
with the private sector and the philanthropic 
community; and 
(C) to identify and document best practices 
that can be shared, and taken to scale based on 
demonstrated success. 
(b) ELIGIBILITY.—To be eligible for such an award, 
a State, local educational agency, or school shall— 
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(1) have significantly closed the achievement 
gaps between groups of students described in section 
1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 
(2) have exceeded the State’s annual measur-
able
objectives
consistent
with
such
section 
1111(b)(2) for 2 or more consecutive years or have 
demonstrated success in significantly increasing stu-
dent academic achievement for all groups of stu-
dents described in such section through another 
measure, such as measures described in section 
1111(c)(2) of ESEA; 
(3) have made significant improvement in other 
areas, such as graduation rates or increased recruit-
ment and placement of high-quality teachers and 
school leaders, as demonstrated with meaningful 
data; and 
(4) demonstrate that they have established 
partnerships with the private sector, which may in-
clude philanthropic organizations, and that the pri-
vate sector will provide matching funds in order to 
help bring results to scale. 
SEC. 13008. STATE REPORTS. 
For each year of the program under this title, a State 
receiving funds under this title shall submit a report to 
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the Secretary, at such time and in such manner as the 
Secretary may require, that describes— 
(1) the uses of funds provided under this title 
within the State; 
(2) how the State distributed the funds it re-
ceived under this title; 
(3) the number of jobs that the Governor esti-
mates were saved or created with funds the State re-
ceived under this title; 
(4) tax increases that the Governor estimates 
were averted because of the availability of funds 
from this title; 
(5) the State’s progress in reducing inequities 
in the distribution of teachers, in implementing a 
State student longitudinal data system, and in devel-
oping and implementing valid and reliable assess-
ments for limited English proficient students and 
children with disabilities; 
(6) the tuition and fee increases for in-State 
students imposed by public institutions of higher 
education in the State during the period of avail-
ability of funds under this title, and a description of 
any actions taken by the State to limit those in-
creases; and 
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(7) the extent to which public institutions of 
higher education maintained, increased, or decreased 
enrollment of in-State students, including students 
eligible for Pell Grants or other need-based financial 
assistance. 
SEC. 13009. EVALUATION. 
The Comptroller General of the United States shall 
conduct evaluations of the programs under sections 13006 
and 13007 which shall include, but not be limited to, the 
criteria used for the awards made, the States selected for 
awards, award amounts, how each State used the award 
received, and the impact of this funding on the progress 
made toward closing achievement gaps. 
SEC. 13010. SECRETARY’S REPORT TO CONGRESS. 
The Secretary shall submit a report to the Committee 
on Education and Labor of the House of Representatives, 
the Committee on Health, Education, Labor, and Pen-
sions of the Senate, and the Committees on Appropria-
tions of the House of Representatives and of the Senate, 
not less than 6 months following the submission of State 
reports, that evaluates the information provided in the 
State reports under section 13008. 
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SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS-
SISTANCE. 
No recipient of funds under this title shall use such 
funds to provide financial assistance to students to attend 
private elementary or secondary schools. 
SEC. 13012. DEFINITIONS. 
Except as otherwise provided in this title, as used in 
this title— 
(1) the term ‘‘institution of higher education’’ 
has the meaning given such term in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 
1001); 
(2) the term ‘‘Secretary’’ means the Secretary 
of Education; 
(3) the term ‘‘State’’ means each of the 50 
States, the District of Columbia, and the Common-
wealth of Puerto Rico; and 
(4) any other term used in this title that is de-
fined in section 9101 of ESEA (20 U.S.C. 7801) 
shall have the meaning given the term in that sec-
tion. 
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DIVISION B—OTHER 
PROVISIONS 
TITLE I—TAX PROVISIONS 
SEC. 1000. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘American Recovery and Reinvestment Tax Act of 2009’’. 
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this title is as follows: 
Sec. 1000. Short title, etc. 
Subtitle A—Making Work Pay 
Sec. 1001. Making work pay credit. 
Subtitle B—Additional Tax Relief for Families With Children 
Sec. 1101. Increase in earned income tax credit. 
Sec. 1102. Increase of refundable portion of child credit. 
Subtitle C—American Opportunity Tax Credit 
Sec. 1201. American opportunity tax credit. 
Subtitle D—Housing Incentives 
Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. 
Sec. 1302. Coordination of low-income housing credit and low-income housing 
grants. 
Subtitle E—Tax Incentives for Business 
PART 1—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1401. Special allowance for certain property acquired during 2009. 
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Sec. 1402. Temporary increase in limitations on expensing of certain depre-
ciable business assets. 
PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES 
Sec. 1411. 5-year carryback of operating losses. 
Sec. 1412. Exception for TARP recipients. 
PART 3—INCENTIVES FOR NEW JOBS 
Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. 
PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON 
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE 
Sec. 1431. Clarification of regulations related to limitations on certain built-in 
losses following an ownership change. 
Subtitle F—Fiscal Relief for State and Local Governments 
PART 1—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 
financial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 
allocation rules for financial institutions. 
Sec. 1503. Temporary modification of alternative minimum tax limitations on 
tax-exempt bonds. 
PART 2—TAX CREDIT BONDS FOR SCHOOLS 
Sec. 1511. Qualified school construction bonds. 
Sec. 1512. Extension and expansion of qualified zone academy bonds. 
PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS 
Sec. 1521. Taxable bond option for governmental bonds. 
PART 4—RECOVERY ZONE BONDS 
Sec. 1531. Recovery zone bonds. 
Sec. 1532. Tribal economic development bonds. 
PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS 
Sec. 1541. Repeal of withholding tax on government contractors. 
Subtitle G—Energy Incentives 
PART 1—RENEWABLE ENERGY INCENTIVES 
Sec. 1601. Extension of credit for electricity produced from certain renewable 
resources. 
Sec. 1602. Election of investment credit in lieu of production credit. 
Sec. 1603. Repeal of certain limitations on credit for renewable energy prop-
erty. 
Sec. 1604. Coordination with renewable energy grants. 
PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY 
BONDS AND QUALIFIED ENERGY CONSERVATION BONDS 
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HR 1 PP 
Sec. 1611. Increased limitation on issuance of new clean renewable energy 
bonds. 
Sec. 1612. Increased limitation and expansion of qualified energy conservation 
bonds. 
PART 3—ENERGY CONSERVATION INCENTIVES 
Sec. 1621. Extension and modification of credit for nonbusiness energy prop-
erty. 
Sec. 1622. Modification of credit for residential energy efficient property. 
Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling 
property. 
PART 4—ENERGY RESEARCH INCENTIVES 
Sec. 1631. Increased research credit for energy research. 
Subtitle H—Other Provisions 
PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS 
FINANCED WITH CERTAIN TAX-FAVORED BONDS 
Sec. 1701. Application of certain labor standards to projects financed with cer-
tain tax-favored bonds. 
PART 2—GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING 
Sec. 1711. Grants to States for low-income housing projects in lieu of low-in-
come housing credit allocations for 2009. 
PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX 
CREDITS 
Sec. 1721. Grants for specified energy property in lieu of tax credits. 
PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF 
THIS ACT 
Sec. 1731. Study of economic, employment, and related effects of this Act. 
Subtitle A—Making Work Pay 
SEC. 1001. MAKING WORK PAY CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 36 the following new section: 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
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the tax imposed by this subtitle for the taxable year an 
amount equal to the lesser of— 
‘‘(1) 6.2 percent of earned income of the tax-
payer, or 
‘‘(2) $500 ($1,000 in the case of a joint re-
turn). 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) (determined without re-
gard to this paragraph) for the taxable year shall be 
reduced (but not below zero) by 2 percent of so 
much of the taxpayer’s modified adjusted gross in-
come as exceeds $75,000 ($150,000 in the case of 
a joint return). 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of subparagraph (A), the term ‘modi-
fied adjusted gross income’ means the adjusted 
gross income of the taxpayer for the taxable year in-
creased by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means any individual other than— 
‘‘(A) any nonresident alien individual, 
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‘‘(B) any individual with respect to whom 
a deduction under section 151 is allowable to 
another taxpayer for a taxable year beginning 
in the calendar year in which the individual’s 
taxable year begins, and 
‘‘(C) an estate or trust. 
Such term shall not include any individual unless the 
requirements of section 32(c)(1)(E) are met with re-
spect to such individual. 
‘‘(2) EARNED INCOME.—The term ‘earned in-
come’ has the meaning given such term by section 
32(c)(2), except that such term shall not include net 
earnings from self-employment which are not taken 
into account in computing taxable income. For pur-
poses of the preceding sentence, any amount ex-
cluded from gross income by reason of section 112 
shall be treated as earned income which is taken 
into account in computing taxable income for the 
taxable year. 
‘‘(d) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2010.’’. 
(b) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSION.—The Sec-
retary of the Treasury shall pay to each posses-
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sion of the United States with a mirror code 
tax system amounts equal to the loss to that 
possession by reason of the amendments made 
by this section with respect to taxable years be-
ginning in 2009 and 2010. Such amounts shall 
be determined by the Secretary of the Treasury 
based on information provided by the govern-
ment of the respective possession. 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States which does not have a mirror 
code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the ag-
gregate benefits that would have been provided 
to residents of such possession by reason of the 
amendments made by this section for taxable 
years beginning in 2009 and 2010 if a mirror 
code tax system had been in effect in such pos-
session. The preceding sentence shall not apply 
with respect to any possession of the United 
States unless such possession has a plan, which 
has been approved by the Secretary of the 
Treasury, under which such possession will 
promptly distribute such payments to the resi-
dents of such possession. 
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(2)
COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes for any taxable year under section 36A of the 
Internal Revenue Code of 1986 (as added by this 
section) to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section for such 
taxable year, or 
(B) who is eligible for a payment under a 
plan described in paragraph (1)(B) with respect 
to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A)
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the 
term ‘‘possession of the United States’’ includes 
the Commonwealth of Puerto Rico and the 
Commonwealth of the Northern Mariana Is-
lands. 
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
tem of such possession if the income tax liabil-
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ity of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this sub-
section shall be treated in the same manner as 
a refund due from the credit allowed under sec-
tion 36A of the Internal Revenue Code of 1986 
(as added by this section). 
(c) REFUNDS DISREGARDED IN THE ADMINISTRA-
TION
OF FEDERAL PROGRAMS
AND FEDERALLY AS-
SISTED PROGRAMS.—Any credit or refund allowed or 
made to any individual by reason of section 36A of the 
Internal Revenue Code of 1986 (as added by this section) 
or by reason of subsection (b) of this section shall not be 
taken into account as income and shall not be taken into 
account as resources for the month of receipt and the fol-
lowing 2 months, for purposes of determining the eligi-
bility of such individual or any other individual for benefits 
or assistance, or the amount or extent of benefits or assist-
ance, under any Federal program or under any State or 
local program financed in whole or in part with Federal 
funds. 
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(d) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36A,’’ after ‘‘36,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36A,’’ after 
‘‘36,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 36 the fol-
lowing new item: 
‘‘Sec. 36A. Making work pay credit.’’. 
(e) EFFECTIVE DATE.—This section shall apply to 
taxable years beginning after December 31, 2008. 
Subtitle B—Additional Tax Relief 
for Families With Children 
SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT. 
(a) IN GENERAL.—Subsection (b) of section 32 is 
amended by adding at the end the following new para-
graph: 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
the case of any taxable year beginning in 2009 or 
2010— 
‘‘(A)
INCREASED
CREDIT
PERCENTAGE 
FOR 3 OR MORE QUALIFYING CHILDREN.—In 
the case of a taxpayer with 3 or more qualifying 
children, the credit percentage is 45 percent. 
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‘‘(B)
REDUCTION
OF
MARRIAGE
PEN-
ALTY.— 
‘‘(i) IN GENERAL.—The dollar amount 
in effect under paragraph (2)(B) shall be 
$5,000. 
‘‘(ii)
INFLATION
ADJUSTMENT.—In 
the case of any taxable year beginning in 
2010, the $5,000 amount in clause (i) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost of living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins determined by sub-
stituting ‘calendar year 2008’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
‘‘(iii) ROUNDING.—Subparagraph (A) 
of subsection (j)(2) shall apply after taking 
into account any increase under clause 
(ii).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
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SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD 
CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 24(d) is 
amended to read as follows: 
‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not-
withstanding paragraph (3), in the case of any tax-
able year beginning in 2009 or 2010, the dollar 
amount in effect for such taxable year under para-
graph (1)(B)(i) shall be zero.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Subtitle C—American Opportunity 
Tax Credit 
SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A (relating to Hope 
scholarship credit) is amended by redesignating subsection 
(i) as subsection (j) and by inserting after subsection (h) 
the following new subsection: 
‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 
case of any taxable year beginning in 2009 or 2010— 
‘‘(1) INCREASE IN CREDIT.—The Hope Scholar-
ship Credit shall be an amount equal to the sum 
of— 
‘‘(A) 100 percent of so much of the quali-
fied tuition and related expenses paid by the 
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taxpayer during the taxable year (for education 
furnished to the eligible student during any 
academic period beginning in such taxable year) 
as does not exceed $2,000, plus 
‘‘(B) 25 percent of such expenses so paid 
as exceeds $2,000 but does not exceed $4,000. 
‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF 
POST-SECONDARY EDUCATION.—Subparagraphs (A) 
and (C) of subsection (b)(2) shall be applied by sub-
stituting ‘4’ for ‘2’. 
‘‘(3) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES
TO
INCLUDE
REQUIRED
COURSE
MATE-
RIALS.—Subsection (f)(1)(A) shall be applied by 
substituting ‘tuition, fees, and course materials’ for 
‘tuition and fees’. 
‘‘(4)
INCREASE
IN
AGI
LIMITS
FOR
HOPE 
SCHOLARSHIP
CREDIT.—In lieu of applying sub-
section (d) with respect to the Hope Scholarship 
Credit, such credit (determined without regard to 
this paragraph) shall be reduced (but not below 
zero) by the amount which bears the same ratio to 
such credit (as so determined) as— 
‘‘(A) the excess of— 
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‘‘(i) the taxpayer’s modified adjusted 
gross income (as defined in subsection 
(d)(3)) for such taxable year, over 
‘‘(ii) $80,000 ($160,000 in the case of 
a joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a 
joint return). 
‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE 
MINIMUM TAX.—In the case of a taxable year to 
which section 26(a)(2) does not apply, so much of 
the credit allowed under subsection (a) as is attrib-
utable to the Hope Scholarship Credit shall not ex-
ceed the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this subsection 
and sections 23, 25D, and 30D) and section 27 
for the taxable year. 
Any reference in this section or section 24, 25, 26, 
25B, 904, or 1400C to a credit allowable under this 
subsection shall be treated as a reference to so much 
of the credit allowable under subsection (a) as is at-
tributable to the Hope Scholarship Credit. 
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‘‘(6)
PORTION
OF
CREDIT
MADE
REFUND-
ABLE.—40 percent of so much of the credit allowed 
under subsection (a) as is attributable to the Hope 
Scholarship Credit (determined after application of 
paragraph (4) and without regard to this paragraph 
and section 26(a)(2) or paragraph (5), as the case 
may be) shall be treated as a credit allowable under 
subpart C (and not allowed under subsection (a)). 
The preceding sentence shall not apply to any tax-
payer for any taxable year if such taxpayer is a child 
to whom subsection (g) of section 1 applies for such 
taxable year. 
‘‘(7) COORDINATION
WITH
MIDWESTERN
DIS-
ASTER AREA BENEFITS.—In the case of a taxpayer 
with respect to whom section 702(a)(1)(B) of the 
Heartland Disaster Tax Relief Act of 2008 applies 
for any taxable year, such taxpayer may elect to 
waive the application of this subsection to such tax-
payer for such taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 24(b)(3)(B) is amended by inserting 
‘‘25A(i),’’ after ‘‘23,’’. 
(2) Section 25(e)(1)(C)(ii) is amended by in-
serting ‘‘25A(i),’’ after ‘‘24,’’. 
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HR 1 PP 
(3) Section 26(a)(1) is amended by inserting 
‘‘25A(i),’’ after ‘‘24,’’. 
(4) Section 25B(g)(2) is amended by inserting 
‘‘25A(i),’’ after ‘‘23,’’. 
(5) Section 904(i) is amended by inserting 
‘‘25A(i),’’ after ‘‘24,’’. 
(6) Section 1400C(d)(2) is amended by insert-
ing ‘‘25A(i),’’ after ‘‘24,’’. 
(7) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘25A,’’ before 
‘‘35’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
(d)
APPLICATION
OF
EGTRRA
SUNSET.—The 
amendment made by subsection (b)(1) shall be subject to 
title IX of the Economic Growth and Tax Relief Reconcili-
ation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates. 
(e) TREASURY STUDIES REGARDING EDUCATION IN-
CENTIVES.— 
(1) STUDY
REGARDING
COORDINATION
WITH 
NON-TAX
EDUCATIONAL
INCENTIVES.—The
Sec-
retary of the Treasury, or the Secretary’s delegate, 
shall study how to coordinate the credit allowed 
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under section 25A of the Internal Revenue Code of 
1986 with the Federal Pell Grant program under 
section 401 of the Higher Education Act of 1965. 
(2) STUDY REGARDING IMPOSITION OF COMMU-
NITY
SERVICE
REQUIREMENTS.—The Secretary of 
the Treasury, or the Secretary’s delegate, shall study 
the feasibility of requiring students to perform com-
munity service as a condition of taking their tuition 
and related expenses into account under section 25A 
of the Internal Revenue Code of 1986. 
(3) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of 
the Treasury, or the Secretary’s delegate, shall re-
port to Congress on the results of the studies con-
ducted under this paragraph. 
Subtitle D—Housing Incentives 
SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST- 
TIME HOMEBUYER CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 36(f) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) WAIVER OF RECAPTURE FOR PUR-
CHASES IN 2009.—In the case of any credit al-
lowed with respect to the purchase of a prin-
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cipal residence after December 31, 2008, and 
before July 1, 2009— 
‘‘(i) paragraph (1) shall not apply, 
and 
‘‘(ii) paragraph (2) shall apply only if 
the disposition or cessation described in 
paragraph (2) with respect to such resi-
dence occurs during the 36-month period 
beginning on the date of the purchase of 
such residence by the taxpayer.’’. 
(b) CONFORMING AMENDMENT.—Subsection (g) of 
section 36 is amended by striking ‘‘subsection (c)’’ and 
inserting ‘‘subsections (c) and (f)(4)(D)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to residences purchased after De-
cember 31, 2008. 
SEC.
1302.
COORDINATION
OF
LOW-INCOME
HOUSING 
CREDIT AND LOW-INCOME HOUSING GRANTS. 
Subsection (i) of section 42 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(9) COORDINATION WITH LOW-INCOME HOUS-
ING GRANTS.— 
‘‘(A)
REDUCTION
IN
STATE
HOUSING 
CREDIT
CEILING
FOR
LOW-INCOME
HOUSING 
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GRANTS RECEIVED IN 2009.—For purposes of 
this section, the amounts described in clauses 
(i) through (iv) of subsection (h)(3)(C) with re-
spect to any State for 2009 shall each be re-
duced by so much of such amount as is taken 
into account in determining the amount of any 
grant to such State under section 1711 of the 
American Recovery and Reinvestment Tax Act 
of 2009. 
‘‘(B) SPECIAL RULE FOR BASIS.—Basis of 
a qualified low-income building shall not be re-
duced by the amount of any grant described in 
subparagraph (A).’’. 
Subtitle E—Tax Incentives for 
Business 
PART 1—TEMPORARY INVESTMENT INCENTIVES 
SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 
ACQUIRED DURING 2009. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
is amended— 
(1) by striking ‘‘January 1, 2010’’ and insert-
ing ‘‘January 1, 2011’’, and 
(2) by striking ‘‘January 1, 2009’’ each place 
it appears and inserting ‘‘January 1, 2010’’. 
(b) CONFORMING AMENDMENTS.— 
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HR 1 PP 
shortfall: Provided further, That these funds shall remain 
available through September 30, 2011. 
For an additional amount for ‘‘Student Financial As-
sistance’’ to carry out part E of title IV of the Higher Edu-
cation Act of 1965, $61,000,000: Provided, That these funds 
shall remain available through September 30, 2010. 
HIGHER EDUCATION 
For an additional amount for ‘‘Higher Education’’ for 
carrying out activities under part A of title II of the Higher 
Education Act of 1965, $50,000,000: Provided, That these 
funds shall remain available through September 30, 2010. 
DEPARTMENTAL MANAGEMENT 
OFFICE OF THE INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of the Inspec-
tor General’’, $4,000,000, which shall remain available 
through September 30, 2012, for salaries and expenses nec-
essary for oversight and audit of programs, grants, and 
projects funded in this Act and administered by the Depart-
ment of Education and an additional $10,000,000 for such 
purposes, to remain available until September 30, 2012. 
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