SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Spending Reduction 
Act of 2012’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—AGRICULTURE 
Sec. 101. ARRA sunset at March 1, 2013. 
Sec. 102. Categorical eligibility limited to cash assistance. 
Sec. 103. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 104. Employment and training; workfare. 
Sec. 105. End State bonus program for the supplemental nutrition assistance 
program. 
Sec. 106. Funding of employment and training programs. 
Sec. 107. Turn off indexing for nutrition education and obesity prevention. 
Sec. 108. Extension of Authorization of Food and Nutrition Act of 2008. 
Sec. 109. Effective date and application of amendments. 
TITLE II—COMMITTEE ON ENERGY AND COMMERCE 
Subtitle A—Repeal of Certain ACA Funding Provisions 
Sec. 201. Repealing mandatory funding to states to establish American Health 
Benefit Exchanges. 
Sec. 202. Repealing Prevention and Public Health Fund. 
Sec. 203. Rescinding unobligated balances for CO-OP program. 
Subtitle B—Medicaid 
Sec. 211. Revision of provider tax indirect guarantee threshold. 
Sec. 212. Rebasing of State DSH allotments for fiscal year 2022. 
Sec. 213. Repeal of Medicaid and CHIP maintenance of effort requirements 
under PPACA. 
Sec. 214. Medicaid payments to territories. 
Sec. 215. Repealing bonus payments for enrollment under Medicaid and CHIP. 
TITLE III—FINANCIAL SERVICES 
Sec. 301. Table of contents. 
Subtitle A—Orderly Liquidation Fund 
Sec. 311. Repeal of liquidation authority. 
Subtitle B—Home Affordable Modification Program 
Sec. 321. Short title. 
Sec. 322. Congressional findings. 
Sec. 323. Termination of authority.
Sec. 324. Sense of Congress. 
Subtitle C—Bureau of Consumer Financial Protection 
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
Subtitle D—Repeal of the Office of Financial Research 
Sec. 341. Repeal of the Office of Financial Research. 
TITLE IV—COMMITTEE ON THE JUDICIARY 
Sec. 401. Short title. 
Sec. 402. Encouraging speedy resolution of claims. 
Sec. 403. Compensating patient injury. 
Sec. 404. Maximizing patient recovery. 
Sec. 405. Punitive damages. 
Sec. 406. Authorization of payment of future damages to claimants in health 
care lawsuits. 
Sec. 407. Definitions. 
Sec. 408. Effect on other laws. 
Sec. 409. State flexibility and protection of States’ rights. 
Sec. 410. Applicability; effective date. 
TITLE V—COMMITTEE ON OVERSIGHT AND GOVERNMENT 
REFORM 
Sec. 501. Retirement contributions. 
Sec. 502. Annuity supplement. 
Sec. 503. Contributions to Thrift Savings Fund of payments for accrued or ac-
cumulated leave. 
TITLE VI—COMMITTEE ON WAYS AND MEANS 
Subtitle A—Recapture of Overpayments Resulting From Certain Federally- 
subsidized Health Insurance 
Sec. 601. Recapture of overpayments resulting from certain federally-subsidized 
health insurance. 
Subtitle B—Social Security Number Required to Claim the Refundable 
Portion of the Child Tax Credit 
Sec. 611. Social security number required to claim the refundable portion of the 
child tax credit. 
Subtitle C—Human Resources Provisions 
Sec. 621. Repeal of the program of block grants to States for social services. 
TITLE VII—SEQUESTER REPLACEMENT 
Sec. 701. Short title. 
Sec. 702. Protecting veterans programs from sequester. 
Sec. 703. Achieving $19 billion in discretionary savings. 
Sec. 704. Conforming amendments to section 314 of the Congressional Budget 
and Impoundment Control Act of 1974. 
Sec. 705. Treatment for PAYGO purposes.
Sec. 706. Elimination of the fiscal year 2013 sequestration for defense direct 
spending. 
TITLE I—AGRICULTURE 
SEC. 101. ARRA SUNSET AT MARCH 1, 2013. 
Section 101(a)(2) of division A of the American Re-
covery and Reinvestment Act of 2009 (Public Law 111– 
5; 123 Stat. 120) is amended by striking ‘‘October 31, 
2013’’ and inserting ‘‘February 28, 2013’’. 
SEC. 102. CATEGORICAL ELIGIBILITY LIMITED TO CASH AS-
SISTANCE. 
Section 5 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014) is amended— 
(1) in the 2d sentence of subsection (a) by 
striking ‘‘households in which each member receives 
benefits’’ and inserting ‘‘households in which each 
member receives cash assistance’’, and 
(2) in subsection (j) by striking ‘‘or who re-
ceives benefits under a State program’’ and inserting 
‘‘or who receives cash assistance under a State pro-
gram’’. 
SEC. 103. STANDARD UTILITY ALLOWANCES BASED ON THE 
RECEIPT 
OF 
ENERGY 
ASSISTANCE 
PAY-
MENTS. 
(a) STANDARD UTILITY ALLOWANCE.—Section 5 of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended—
(1) in subsection (e)(6)(C) by striking clause 
(iv), and 
(2) in subsection (k) by striking paragraph (4) 
and inserting the following: 
‘‘(4) THIRD PARTY ENERGY ASSISTANCE PAY-
MENTS.—For purposes of subsection (d)(1), a pay-
ment made under a State law (other than a law re-
ferred to in paragraph (2)(G)) to provide energy as-
sistance to a household shall be considered money 
payable directly to the household.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
2605(f)(2) of the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8624(f)(2)) is amended— 
(1) by striking ‘‘and for purposes of deter-
mining any excess shelter expense deduction under 
section 5(e) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2014(e))’’, and 
(2) in subparagraph (A) by inserting before the 
semicolon the following: ‘‘, except that such pay-
ments or allowances shall not be deemed to be ex-
pended for purposes of determining any excess shel-
ter expense deduction under section 5(e)(6) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6))’’.
SEC. 104. EMPLOYMENT AND TRAINING; WORKFARE. 
(a) ADMINISTRATIVE COST-SHARING FOR EMPLOY-
MENT AND TRAINING PROGRAMS.— 
(1) IN GENERAL.—Section 16 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2025) is amend-
ed— 
(A) in subsection (a) by inserting ‘‘(other 
than a program carried out under section 
6(d)(4) or section 20)’’ after ‘‘supplemental nu-
trition assistance program’’ the 1st place it ap-
pears, and 
(B) in subsection (h)— 
(i) by striking paragraphs (2) and (3), 
and 
(ii) by redesignating paragraphs (4) 
and (5) as paragraphs (2) and (3), respec-
tively. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 17(b)(1)(B)(iv)(III)(hh) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2026(b)(1)(B)(iv)(III)(hh)) 
is 
amended 
by 
striking ‘‘(g), (h)(2), or (h)(3)’’ and inserting 
‘‘or (g)’’. 
(B) Section 22(d)(1)(B)(ii) of the Food 
and 
Nutrition 
Act 
of 
2008 
(7 
U.S.C. 
2031(d)(1)(B)(ii)) is amended is amended by
striking ‘‘, (g), (h)(2), and (h)(3)’’ and insert-
ing ‘‘and (g)’’. 
(b) ADMINISTRATIVE
COST-SHARING
AND
REIM-
BURSEMENTS FOR WORKFARE.—Section 20 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2029) is amended 
by striking subsection (g). 
SEC. 105. END STATE BONUS PROGRAM FOR THE SUPPLE-
MENTAL NUTRITION ASSISTANCE PROGRAM. 
Section 16 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025) is amended by striking subsection (d). 
SEC. 106. FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS. 
For purposes of fiscal year 2013, the reference to 
$90,000,000 in section 16(h)(1)(A) of the Food and Nu-
trition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) shall be 
deemed to be a reference to $79,000,000. 
SEC. 107. TURN OFF INDEXING FOR NUTRITION EDU-
CATION AND OBESITY PREVENTION. 
Section 28(d) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2037(d)) is amended by striking ‘‘years—’’ and 
all that follows through the period at the end, and insert-
ing ‘‘years, $375,000,000.’’.
(2) in paragraph (3)(A) by striking ‘‘para-
graphs (6), (7), and (8)’’ and inserting ‘‘paragraphs 
(6), (7), (8), and (9)’’; and 
(3) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) REBASING OF STATE DSH ALLOTMENTS 
FOR
FISCAL
YEAR
2022.—With respect to fiscal 
2022, for purposes of applying paragraph (3)(A) to 
determine the DSH allotment for a State, the 
amount of the DSH allotment for the State under 
paragraph (3) for fiscal year 2021 shall be treated 
as if it were such amount as reduced under para-
graph (7).’’. 
SEC. 213. REPEAL OF MEDICAID AND CHIP MAINTENANCE 
OF EFFORT REQUIREMENTS UNDER PPACA. 
(a) REPEAL OF PPACA MEDICAID MOE.—Section 
1902 of the Social Security Act (42 U.S.C. 1396a) is 
amended by striking subsection (gg). 
(b) REPEAL
OF
PPACA CHIP MOE.—Section 
2105(d)(3) of the Social Security Act (42 U.S.C. 
1397ee(d)(3)) is amended— 
(1) by striking subparagraph (A); 
(2) by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively; and
(3) in the paragraph heading, by striking 
‘‘CONTINUATION
OF
ELIGIBILITY
STANDARDS
FOR 
CHILDREN UNTIL OCTOBER 1, 2019’’ and inserting 
‘‘CONTINUITY OF COVERAGE’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1902(a) of the Social Security Act 
(42 U.S.C. 1396a(a)) is amended by striking para-
graph (74). 
(2) Effective January 1, 2014, paragraph (14) 
of section 1902(e) (as added by section 2002(a) of 
Public Law 111–148) is amended by striking the 
third sentence of subparagraph (A). 
(d) EFFECTIVE DATE.—Except as provided in sub-
section (c)(2), the amendments made by this section shall 
take effect on the date of the enactment of this section. 
SEC. 214. MEDICAID PAYMENTS TO TERRITORIES. 
(a) LIMIT ON PAYMENTS.—Section 1108(g) of the 
Social Security Act (42 U.S.C. 1308(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘paragraphs (3) and (5)’’; 
and 
(B) by inserting ‘‘paragraph (3)’’ after 
‘‘and subject to’’;
(2) in paragraph (4), by striking ‘‘(3), and’’ 
and all that follows through ‘‘of this subsection’’ and 
inserting ‘‘and (3) of this subsection’’; and 
(3) by striking paragraph (5). 
(b) FMAP.—The first sentence of section 1905(b) of 
the Social Security Act (42 U.S.C. 1396d(b)) is amended 
by striking ‘‘shall be 55 percent’’ and inserting ‘‘shall be 
50 percent’’. 
SEC. 215. REPEALING BONUS PAYMENTS FOR ENROLL-
MENT UNDER MEDICAID AND CHIP. 
(a) IN GENERAL.—Paragraphs (3) and (4) of section 
2105(a) of the Social Security Act (42 U.S.C. 1397ee(a)) 
are repealed. 
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 
funds made available by section 2105(a)(3) of the Social 
Security Act, the unobligated balance is rescinded. 
(c) CONFORMING CHANGES.— 
(1) AVAILABILITY OF EXCESS FUNDS FOR PER-
FORMANCE
BONUSES.—Section 2104(n)(2) of the 
Social Security Act (42 U.S.C. 1397dd(n)(2)) is 
amended by striking subparagraph (D). 
(2) OUTREACH OR COVERAGE BENCHMARKS.— 
Section 2111(b)(3) of the Social Security Act (42 
U.S.C. 1397kk(b)(3)) is amended— 
(A) in subparagraph (A)—
(i) in clause (i), by inserting ‘‘or’’ 
after the semicolon at the end; and 
(ii) by striking clause (ii); and 
(B) by striking subparagraph (C). 
TITLE III—FINANCIAL SERVICES 
SEC. 301. TABLE OF CONTENTS. 
The table of contents for this title is as follows: 
Sec. 301. Table of contents. 
Subtitle A—Orderly Liquidation Fund 
Sec. 311. Repeal of liquidation authority. 
Subtitle B—Home Affordable Modification Program 
Sec. 321. Short title. 
Sec. 322. Congressional findings. 
Sec. 323. Termination of authority. 
Sec. 324. Sense of Congress. 
Subtitle C—Bureau of Consumer Financial Protection 
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
Subtitle D—Repeal of the Office of Financial Research 
Sec. 341. Repeal of the Office of Financial Research. 
Subtitle A—Orderly Liquidation 
Fund 
SEC. 311. REPEAL OF LIQUIDATION AUTHORITY. 
(a) IN GENERAL.—Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby re-
pealed and any Federal law amended by such title shall, 
on and after the date of enactment of this Act, be effective 
as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted.
(b) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK WALL STREET REFORM AND 
CONSUMER
PROTECTION
ACT.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act is 
amended— 
(A) in the table of contents for such Act, 
by striking all items relating to title II; 
(B) in section 165(d)(6), by striking ‘‘, a 
receiver appointed under title II,’’; 
(C) in section 716(g), by striking ‘‘or a 
covered financial company under title II’’; 
(D) in section 1105(e)(5), by striking 
‘‘amount of any securities issued under that 
chapter 31 for such purpose shall be treated in 
the same manner as securities issued under sec-
tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 
such securities under that chapter 31 for such 
purpose shall by treated as public debt trans-
actions of the United States, and the proceeds 
from the sale of any obligations acquired by the 
Secretary under this paragraph shall be depos-
ited into the Treasury of the United States as 
miscellaneous receipts’’; and 
(E) in section 1106(c)(2), by amending 
subparagraph (A) to read as follows: