104TH CONGRESS
2D SESSION
H. R. 3603
AN ACT
Making appropriations for Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
programs for the fiscal year ending September 30, 1997,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for Ag-
riculture, Rural Development, Food and Drug Administra-
tion, and Related Agencies programs for the fiscal year
ending September 30, 1997, and for other purposes,
namely:
TITLE I
AGRICULTURAL PROGRAMS
PRODUCTION, PROCESSING, AND MARKETING
OFFICE OF THE SECRETARY
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses of the Office of the Secretary
of Agriculture, and not to exceed $75,000 for employment
under 5 U.S.C. 3109, $2,836,000: Provided, That not to
exceed $11,000 of this amount, along with any unobli-
gated balances of representation funds in the Foreign Ag-
ricultural Service shall be available for official reception
and representation expenses, not otherwise provided for,
as determined by the Secretary: Provided further, That
none of the funds appropriated or otherwise made avail-
able by this Act may be used to detail an individual from
an agency funded in this Act to any Under Secretary office
or Assistant Secretary office for more than 30 days: Pro-
vided further, That none of the funds made available by
this Act may be used to enforce section 793(d) of Public
Law 104–127.
EXECUTIVE OPERATIONS
CHIEF ECONOMIST
For necessary expenses of the Chief Economist, in-
cluding economic analysis, risk assessment, cost-benefit
analysis, and the functions of the World Agricultural Out-
look Board, as authorized by the Agricultural Marketing
Act of 1946 (7 U.S.C. 1622g), and including employment
pursuant to the second sentence of section 706(a) of the
Organic Act of 1944 (7 U.S.C. 2225), of which not to
exceed $5,000 is for employment under 5 U.S.C. 3109,
$4,231,000.
NATIONAL APPEALS DIVISION
For necessary expenses of the National Appeals Divi-
sion, including employment pursuant to the second sen-
tence of section 706(a) of the Organic Act of 1944 (7
U.S.C. 2225), of which not to exceed $25,000 is for em-
ployment under 5 U.S.C. 3109, $11,718,000.
OFFICE OF BUDGET AND PROGRAM ANALYSIS
For necessary expenses of the Office of Budget and
Program Analysis, including employment pursuant to the
second sentence of section 706(a) of the Organic Act of
1944 (7 U.S.C. 2225), of which not to exceed $5,000 is
for employment under 5 U.S.C. 3109, $5,986,000.
CHIEF FINANCIAL OFFICER
For necessary expenses of the Office of the Chief Fi-
nancial Officer, including employment pursuant to the sec-
ond sentence of section 706(a) of the Organic Act of 1944
(7 U.S.C. 2225), of which not to exceed $10,000 is for
employment under 5 U.S.C. 3109, $4,283,000: Provided,
That the Chief Financial Officer shall actively market
cross-servicing activities of the National Finance Center.
OFFICE OF THE ASSISTANT SECRETARY FOR
ADMINISTRATION
For necessary salaries and expenses of the Office of
the Assistant Secretary for Administration to carry out
the programs funded in this Act, $613,000.
AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL
PAYMENTS
(INCLUDING TRANSFERS OF FUNDS)
For payment of space rental and related costs pursu-
ant to Public Law 92–313, including authorities pursuant
to the 1984 delegation of authority from the Adminis-
trator of General Services to the Department of Agri-
culture under 40 U.S.C. 486, for programs and activities
of the Department which are included in this Act, and for
the operation, maintenance, and repair of Agriculture
buildings, $120,548,000: Provided, That in the event an
agency within the Department should require modification
of space needs, the Secretary of Agriculture may transfer
a share of that agency’s appropriation made available by
this Act to this appropriation, or may transfer a share
of this appropriation to that agency’s appropriation, but
such transfers shall not exceed 5 percent of the funds
made available for space rental and related costs to or
from this account. In addition, for construction, repair,
improvement, extension, alteration, and purchase of fixed
equipment or facilities as necessary to carry out the pro-
grams of the Department, where not otherwise provided,
$5,000,000, to remain available until expended; making
a total appropriation of $125,548,000.
HAZARDOUS WASTE MANAGEMENT
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses of the Department of Agri-
culture, to comply with the requirement of section 107(g)
of the Comprehensive Environmental Response, Com-
pensation, and Liability Act, as amended, 42 U.S.C.
9607(g), and section 6001 of the Resource Conservation
and Recovery Act, as amended, 42 U.S.C. 6961,
$15,700,000, to remain available until expended: Pro-
vided, That appropriations and funds available herein to
the Department for Hazardous Waste Management may
be transferred to any agency of the Department for its
use in meeting all requirements pursuant to the above
Acts on Federal and non-Federal lands.
DEPARTMENTAL ADMINISTRATION
(INCLUDING TRANSFERS OF FUNDS)
For Departmental Administration, $28,304,000, to
provide for necessary expenses for management support
services to offices of the Department and for general ad-
ministration and disaster management of the Department,
repairs and alterations, and other miscellaneous supplies
and expenses not otherwise provided for and necessary for
the practical and efficient work of the Department, includ-
ing employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of
which not to exceed $10,000 is for employment under 5
U.S.C. 3109: Provided, That this appropriation shall be
reimbursed from applicable appropriations in this Act for
travel expenses incident to the holding of hearings as re-
quired by 5 U.S.C. 551–558.
OFFICE OF THE ASSISTANT SECRETARY FOR
CONGRESSIONAL RELATIONS
(INCLUDING TRANSFERS OF FUNDS)
For necessary salaries and expenses of the Office of
the Assistant Secretary for Congressional Relations to
carry out the programs funded in this Act, including pro-
grams involving intergovernmental affairs and liaison
within the executive branch, $3,728,000: Provided, That
no other funds appropriated to the Department in this Act
shall be available to the Department for support of activi-
ties of congressional relations: Provided further, That not
less than $2,241,000 shall be transferred to agencies fund-
ed in this Act to maintain personnel at the agency level.
OFFICE OF COMMUNICATIONS
For necessary expenses to carry on services relating
to the coordination of programs involving public affairs,
for the dissemination of agricultural information, and the
coordination of information, work, and programs author-
ized by Congress in the Department, $8,138,000, includ-
ing employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), of
which not to exceed $10,000 shall be available for employ-
ment under 5 U.S.C. 3109, and not to exceed $2,000,000
may be used for farmers’ bulletins.
OFFICE OF THE INSPECTOR GENERAL
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses of the Office of the Inspector
General, including employment pursuant to the second
sentence of section 706(a) of the Organic Act of 1944 (7
U.S.C. 2225), and the Inspector General Act of 1978, as
amended, $63,028,000, including such sums as may be
necessary for contracting and other arrangements with
public agencies and private persons pursuant to section
6(a)(9) of the Inspector General Act of 1978, as amended,
including a sum not to exceed $50,000 for employment
under 5 U.S.C. 3109; and including a sum not to exceed
$95,000 for certain confidential operational expenses in-
cluding the payment of informants, to be expended under
the direction of the Inspector General pursuant to Public
Law 95–452 and section 1337 of Public Law 97–98: Pro-
vided, That funds transferred to the Office of the Inspec-
tor General through forfeiture proceedings or from the De-
partment of Justice Assets Forfeiture Fund or the De-
partment of the Treasury Forfeiture Fund, as a partici-
pating agency, as an equitable share from the forfeiture
of property in investigations in which the Office of the In-
spector General participates, or through the granting of
a Petition for Remission or Mitigation, shall be deposited
to the credit of this account for law enforcement activities
authorized under the Inspector General Act of 1978, as
amended, to remain available until expended.
OFFICE OF THE GENERAL COUNSEL
For necessary expenses of the Office of the General
Counsel, $27,749,000.
OFFICE OF THE UNDER SECRETARY FOR RESEARCH,
EDUCATION AND ECONOMICS
For necessary salaries and expenses of the Office of
the Under Secretary for Research, Education and Eco-
nomics to administer the laws enacted by the Congress
for the Economic Research Service, the National Agricul-
tural Statistics Service, the Agricultural Research Service,
and the Cooperative State Research, Education, and Ex-
tension Service, $540,000.
ECONOMIC RESEARCH SERVICE
For necessary expenses of the Economic Research
Service in conducting economic research and analysis, as
authorized by the Agricultural Marketing Act of 1946 (7
U.S.C. 1621–1627) and other laws, $54,176,000: Pro-
vided, That this appropriation shall be available for em-
ployment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225).
NATIONAL AGRICULTURAL STATISTICS SERVICE
For necessary expenses of the National Agricultural
Statistics Service in conducting statistical reporting and
service work, including crop and livestock estimates, sta-
tistical coordination and improvements, marketing sur-
veys, and the Census of Agriculture notwithstanding 13
U.S.C. 142(a–b), as authorized by the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1621–1627) and other laws,
$100,221,000, of which up to $17,500,000 shall be avail-
able until expended for the Census of Agriculture: Pro-
vided, That this appropriation shall be available for em-
ployment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and
not to exceed $40,000 shall be available for employment
under 5 U.S.C. 3109.
AGRICULTURAL RESEARCH SERVICE
For necessary expenses to enable the Agricultural Re-
search Service to perform agricultural research and dem-
onstration relating to production, utilization, marketing,
and distribution (not otherwise provided for); home eco-
nomics or nutrition and consumer use including the acqui-
sition, preservation, and dissemination of agricultural in-
formation; and for acquisition of lands by donation, ex-
change, or purchase at a nominal cost not to exceed $100,
$702,831,000: Provided, That appropriations hereunder
shall be available for temporary employment pursuant to
the second sentence of section 706(a) of the Organic Act
of 1944 (7 U.S.C. 2225), and not to exceed $115,000 shall
be available for employment under 5 U.S.C. 3109: Pro-
vided further, That appropriations hereunder shall be
available for the operation and maintenance of aircraft
and the purchase of not to exceed one for replacement
only: Provided further, That appropriations hereunder
shall be available pursuant to 7 U.S.C. 2250 for the con-
struction, alteration, and repair of buildings and improve-
ments, but unless otherwise provided the cost of construct-
ing any one building shall not exceed $250,000, except for
headhouses or greenhouses which shall each be limited to
$1,000,000, and except for ten buildings to be constructed
or improved at a cost not to exceed $500,000 each, and
the cost of altering any one building during the fiscal year
shall not exceed 10 percent of the current replacement
value of the building or $250,000, whichever is greater:
Provided further, That the limitations on alterations con-
tained in this Act shall not apply to modernization or re-
placement of existing facilities at Beltsville, Maryland:
Provided further, That the foregoing limitations shall not
apply to replacement of buildings needed to carry out the
Act of April 24, 1948 (21 U.S.C. 113a): Provided further,
That funds may be received from any State, other political
subdivision, organization, or individual for the purpose of
establishing or operating any research facility or research
project of the Agricultural Research Service, as authorized
by law.
None of the funds in the foregoing paragraph shall
be available to carry out research related to the produc-
tion, processing or marketing of tobacco or tobacco prod-
ucts.
BUILDINGS AND FACILITIES
For acquisition of land, construction, repair, improve-
ment, extension, alteration, and purchase of fixed equip-
ment or facilities as necessary to carry out the agricultural
research programs of the Department of Agriculture,
where not otherwise provided, $59,600,000, to remain
available until expended (7 U.S.C. 2209b): Provided, That
funds may be received from any State, other political sub-
division, organization, or individual for the purpose of es-
tablishing any research facility of the Agricultural Re-
search Service, as authorized by law.
COOPERATIVE STATE RESEARCH, EDUCATION, AND
EXTENSION SERVICE
RESEARCH AND EDUCATION ACTIVITIES
For payments to agricultural experiment stations, for
cooperative forestry and other research, for facilities, and
for other expenses, including $163,671,000 to carry into
effect the provisions of the Hatch Act (7 U.S.C. 361a–
361i); $19,882,000 for grants for cooperative forestry re-
search (16 U.S.C. 582a–582–a7); $26,902,000 for pay-
ments to the 1890 land-grant colleges, including Tuskegee
University (7 U.S.C. 3222); $44,235,000 for special
grants for agricultural research (7 U.S.C. 450i(c));
$11,769,000 for special grants for agricultural research
on improved pest control (7 U.S.C. 450i(c)); $96,735,000
for competitive research grants (7 U.S.C. 450i(b));
$4,775,000 for the support of animal health and disease
programs (7 U.S.C. 3195); $650,000 for supplemental
and alternative crops and products (7 U.S.C. 3319d);
$500,000 for grants for research pursuant to the Critical
Agricultural Materials Act of 1984 (7 U.S.C. 178) and
section 1472 of the Food and Agriculture Act of 1977,
as amended (7 U.S.C. 3318), to remain available until ex-
pended; $475,000 for rangeland research grants (7 U.S.C.
3331–3336); $3,000,000 for higher education graduate
fellowships grants (7 U.S.C. 3152(b)(6)), to remain avail-
able until expended (7 U.S.C. 2209b); $4,000,000 for
higher education challenge grants (7 U.S.C. 3152(b)(1));
$1,000,000 for a higher education minority scholars pro-
gram (7 U.S.C. 3152(b)(5)), to remain available until ex-
pended (7 U.S.C. 2209b); $2,000,000 for an education
grants program for Hispanic-serving Institutions (7
U.S.C. 3241); $4,000,000 for aquaculture grants (7
U.S.C. 3322); $8,000,000 for sustainable agriculture re-
search and education (7 U.S.C. 5811); $9,200,000 for a
program of capacity building grants to colleges eligible to
receive funds under the Act of August 30, 1890 (7 U.S.C.
321–326 and 328), including Tuskegee University 7
U.S.C. 3152(b)(4), to remain available until expended (7
U.S.C. 2209b); $1,450,000 for payments to the 1994 In-
stitutions pursuant to section 534(a)(1) of Public Law
103–382; and $9,605,000 for necessary expenses of Re-
search and Education Activities, of which not to exceed
$100,000 shall be for employment under 5 U.S.C. 3109;
in all, $411,849,000.
None of the funds in the foregoing paragraph shall
be available to carry out research related to the produc-
tion, processing or marketing of tobacco or tobacco prod-
ucts.
NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND
For establishment of a Native American institutions
endowment fund, as authorized by Public Law 130–382
(7 U.S.C. 301 note), $4,600,000.
BUILDINGS AND FACILITIES
For acquisition of land, construction, repair, improve-
ment, extension, alteration, and purchase of fixed equip-
ment or facilities and for grants to States and other eligi-
ble recipients for such purposes, as necessary to carry out
the agricultural research, extension, and teaching pro-
grams of the Department of Agriculture, where not other-
wise provided, $30,449,000, to remain available until ex-
pended (7 U.S.C. 2209b).
EXTENSION ACTIVITIES
Payments to States, the District of Columbia, Puerto
Rico, Guam, the Virgin Islands, Micronesia, Northern
Marianas, and American Samoa: For payments for coop-
erative extension work under the Smith-Lever Act, as
amended, to be distributed under sections 3(b) and 3(c)
of said Act, and under section 208(c) of Public Law 93–
471, for retirement and employees’ compensation costs for
extension agents and for costs of penalty mail for coopera-
tive extension agents and State extension directors,
$260,438,000; payments for the nutrition and family edu-
cation program for low-income areas under section 3(d)
of the Act, $58,695,000; payments for the pest manage-
ment program under section 3(d) of the Act, $10,783,000;
payments for the farm safety program under section 3(d)
of the Act, $2,855,000; payments for the pesticide impact
assessment program under section 3(d) of the Act,
$3,214,000; payments to upgrade 1890 land-grant college
research, extension, and teaching facilities as authorized
by section 1447 of Public Law 95–113, as amended (7
U.S.C. 3222b), $7,549,000, to remain available until ex-
pended; payments for the rural development centers under
section 3(d) of the Act, $908,000; payments for a ground-
water quality program under section 3(d) of the Act,
$10,733,000; payments for the agricultural telecommuni-
cations program, as authorized by Public Law 101–624
(7 U.S.C. 5926), $1,167,000; payments for youth-at-risk
programs under section 3(d) of the Act, $9,554,000; pay-
ments for a food safety program under section 3(d) of the
Act, $2,365,000; payments for carrying out the provisions
of the Renewable Resources Extension Act of 1978,
$3,192,000; payments for Indian reservation agents under
section 3(d) of the Act, $1,672,000; payments for sustain-
able agriculture programs under section 3(d) of the Act,
$3,309,000; payments for rural health and safety edu-
cation as authorized by section 2390 of Public Law 101–
624 (7 U.S.C. 2661 note, 2662), $2,628,000; payments
for cooperative extension work by the colleges receiving the
benefits of the second Morrill Act (7 U.S.C. 321–326,
328) and Tuskegee University, $24,337,000; and for Fed-
eral administration and coordination including administra-
tion of the Smith-Lever Act, as amended, and the Act of
September 29, 1977 (7 U.S.C. 341–349), as amended,
and section 1361(c) of the Act of October 3, 1980 (7
U.S.C. 301 note), and to coordinate and provide program
leadership for the extension work of the Department and
the several States and insular possessions, $6,271,000; in
all, $409,670,000: Provided, That funds hereby appro-
priated pursuant to section 3(c) of the Act of June 26,
1953, and section 506 of the Act of June 23, 1972, as
amended, shall not be paid to any State, the District of
Columbia, Puerto Rico, Guam, or the Virgin Islands, Mi-
cronesia, Northern Marianas, and American Samoa prior
to availability of an equal sum from non-Federal sources
for expenditure during the current fiscal year.
OFFICE OF THE ASSISTANT SECRETARY FOR
MARKETING AND REGULATORY PROGRAMS
For necessary salaries and expenses of the Office of
the Assistant Secretary for Marketing and Regulatory
Programs to administer programs under the laws enacted
by the Congress for the Animal and Plant Health Inspec-
tion Service, Agricultural Marketing Service, and the
Grain Inspection, Packers and Stockyards Administration,
$618,000.
ANIMAL AND PLANT HEALTH INSPECTION SERVICE
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
For expenses, not otherwise provided for, including
those pursuant to the Act of February 28, 1947, as
amended (21 U.S.C. 114b–c), necessary to prevent, con-
trol, and eradicate pests and plant and animal diseases;
to carry out inspection, quarantine, and regulatory activi-
ties; to discharge the authorities of the Secretary of Agri-
culture under the Act of March 2, 1931 (46 Stat. 1468;
7 U.S.C. 426–426b); and to protect the environment, as
authorized by law, $435,428,000, of which $4,500,000
shall be available for the control of outbreaks of insects,
plant diseases, animal diseases and for control of pest ani-
mals and birds to the extent necessary to meet emergency
conditions: Provided, That no funds shall be used to for-
mulate or administer a brucellosis eradication program for
the current fiscal year that does not require minimum
matching by the States of at least 40 percent: Provided
further, That this appropriation shall be available for field
employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and
not to exceed $40,000 shall be available for employment
under 5 U.S.C. 3109: Provided further, That this appro-
priation shall be available for the operation and mainte-
nance of aircraft and the purchase of not to exceed four,
of which two shall be for replacement only: Provided fur-
ther, That, in addition, in emergencies which threaten any
segment of the agricultural production industry of this
country, the Secretary may transfer from other appropria-
tions or funds available to the agencies or corporations
of the Department such sums as he may deem necessary,
to be available only in such emergencies for the arrest and
eradication of contagious or infectious disease or pests of
animals, poultry, or plants, and for expenses in accordance
with the Act of February 28, 1947, as amended, and sec-
tion 102 of the Act of September 21, 1944, as amended,
and any unexpended balances of funds transferred for
such emergency purposes in the next preceding fiscal year
shall be merged with such transferred amounts: Provided
further, That appropriations hereunder shall be available
pursuant to law (7 U.S.C. 2250) for the repair and alter-
ation of leased buildings and improvements, but unless
otherwise provided the cost of altering any one building
during the fiscal year shall not exceed 10 percent of the
current replacement value of the building.
In fiscal year 1997 the agency is authorized to collect
fees to cover the total costs of providing technical assist-
ance, goods, or services requested by States, other political
subdivisions, domestic and international organizations,
foreign governments, or individuals, provided that such
fees are structured such that any entity’s liability for such
fees is reasonably based on the technical assistance, goods,
or services provided to the entity by the agency, and such
fees shall be credited to this account, to remain available
until expended, without further appropriation, for provid-
ing such assistance, goods, or services.
Of the total amount available under this heading in
fiscal year 1997, $98,000,000 shall be derived from user
fees deposited in the Agricultural Quarantine Inspection
User Fee Account.
BUILDINGS AND FACILITIES
For plans, construction, repair, preventive mainte-
nance, environmental support, improvement, extension, al-
teration, and purchase of fixed equipment or facilities, as
authorized by 7 U.S.C. 2250, and acquisition of land as
authorized by 7 U.S.C. 428a, $3,200,000, to remain avail-
able until expended.
AGRICULTURAL MARKETING SERVICE
MARKETING SERVICES
For necessary expenses to carry on services related
to consumer protection, agricultural marketing and dis-
tribution, transportation, and regulatory programs, as au-
thorized by law, and for administration and coordination
of payments to States; including field employment pursu-
ant to section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $90,000 for employment under
5 U.S.C. 3109, $37,592,000, including funds for the
wholesale market development program for the design and
development of wholesale and farmer market facilities for
the major metropolitan areas of the country: Provided,
That this appropriation shall be available pursuant to law
(7 U.S.C. 2250) for the alteration and repair of buildings
and improvements, but the cost of altering any one build-
ing during the fiscal year shall not exceed 10 percent of
the current replacement value of the building.
Fees may be collected for the cost of standardization
activities, as established by regulation pursuant to law (31
U.S.C. 9701).
LIMITATION ON ADMINISTRATIVE EXPENSES
Not to exceed $59,012,000 (from fees collected) shall
be obligated during the current fiscal year for administra-
tive expenses: Provided, That if crop size is understated
and/or other uncontrollable events occur, the agency may
exceed this limitation by up to 10 percent with notification
to the Appropriations Committees.
FUNDS FOR STRENGTHENING MARKETS, INCOME, AND
SUPPLY (SECTION 32)
(INCLUDING TRANSFERS OF FUNDS)
Funds available under section 32 of the Act of Au-
gust 24, 1935 (7 U.S.C. 612c) shall be used only for com-
modity program expenses as authorized therein, and other
related operating expenses, except for: (1) transfers to the
Department of Commerce as authorized by the Fish and
Wildlife Act of August 8, 1956; (2) transfers otherwise
provided in this Act; and (3) not more than $10,576,000
for formulation and administration of marketing agree-
ments and orders pursuant to the Agricultural Marketing
Agreement Act of 1937, as amended, and the Agricultural
Act of 1961.
PAYMENTS TO STATES AND POSSESSIONS
For payments to departments of agriculture, bureaus
and departments of markets, and similar agencies for
marketing activities under section 204(b) of the Agricul-
tural Marketing Act of 1946 (7 U.S.C. 1623(b)),
$1,200,000.
GRAIN INSPECTION, PACKERS AND STOCKYARDS
ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses to carry out the provisions
of the United States Grain Standards Act, as amended,
for the administration of the Packers and Stockyards Act,
for certifying procedures used to protect purchasers of
farm products, and the standardization activities related
to grain under the Agricultural Marketing Act of 1946,
as amended, including field employment pursuant to sec-
tion 706(a) of the Organic Act of 1944 (7 U.S.C. 2225),
and not to exceed $25,000 for employment under 5 U.S.C.
3109, $22,728,000: Provided, That this appropriation
shall be available pursuant to law (7 U.S.C. 2250) for the
alteration and repair of buildings and improvements, but
the cost of altering any one building during the fiscal year
shall not exceed 10 percent of the current replacement
value of the building.
INSPECTION AND WEIGHING SERVICES
LIMITATION ON INSPECTION AND WEIGHING SERVICE
EXPENSES
Not to exceed $43,207,000 (from fees collected) shall
be obligated during the current fiscal year for inspection
and weighing services: Provided, That if grain export ac-
tivities require additional supervision and oversight, or
other uncontrollable factors occur, this limitation may be
exceeded by up to 10 percent with notification to the Ap-
propriations Committees.
OFFICE OF THE UNDER SECRETARY FOR FOOD SAFETY
For necessary salaries and expenses of the Office of
the Under Secretary for Food Safety to administer the
laws enacted by the Congress for the Food Safety and In-
spection Service, $446,000.
FOOD SAFETY AND INSPECTION SERVICE
For necessary expenses to carry on services author-
ized by the Federal Meat Inspection Act, as amended, the
Poultry Products Inspection Act, as amended, and the
Egg Products Inspection Act, as amended, $574,000,000,
and in addition, $1,000,000 may be credited to this ac-
count from fees collected for the cost of laboratory accredi-
tation as authorized by section 1017 of Public Law 102–
237: Provided, That this appropriation shall not be avail-
able for shell egg surveillance under section 5(d) of the
Egg Products Inspection Act (21 U.S.C. 1034(d)): Pro-
vided further, That this appropriation shall be available
for field employment pursuant to section 706(a) of the Or-
ganic Act of 1944 (7 U.S.C. 2225), and not to exceed
$75,000 shall be available for employment under 5 U.S.C.
3109: Provided further, That this appropriation shall be
available pursuant to law (7 U.S.C. 2250) for the alter-
ation and repair of buildings and improvements, but the
cost of altering any one building during the fiscal year
shall not exceed 10 percent of the current replacement
value of the building.
OFFICE OF THE UNDER SECRETARY FOR FARM AND
FOREIGN AGRICULTURAL SERVICES
For necessary salaries and expenses of the Office of
the Under Secretary for Farm and Foreign Agricultural
Services to administer the laws enacted by Congress for
the Consolidated Farm Service Agency, Foreign Agricul-
tural Service, and the Commodity Credit Corporation,
$572,000.
FARM SERVICE AGENCY
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses for carrying out the adminis-
tration and implementation of programs administered by
the Farm Service Agency, $746,440,000: Provided, That
the Secretary is authorized to use the services, facilities,
and authorities (but not the funds) of the Commodity
Credit Corporation to make program payments for all pro-
grams administered by the Agency: Provided further, That
other funds made available to the Agency for authorized
activities may be advanced to and merged with this ac-
count: Provided further, That these funds shall be avail-
able for employment pursuant to the second sentence of
section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $1,000,000 shall be available for
employment under 5 U.S.C. 3109.
DAIRY INDEMNITY PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses involved in making indemnity
payments to dairy farmers for milk or cows producing
such milk and manufacturers of dairy products who have
been directed to remove their milk or dairy products from
commercial markets because it contained residues of
chemicals registered and approved for use by the Federal
Government, and in making indemnity payments for milk,
or cows producing such milk, at a fair market value to
any dairy farmer who is directed to remove his milk from
commercial markets because of (1) the presence of prod-
ucts of nuclear radiation or fallout if such contamination
is not due to the fault of the farmer, or (2) residues of
chemicals or toxic substances not included under the first
sentence of the Act of August 13, 1968, as amended (7
U.S.C. 450j), if such chemicals or toxic substances were
not used in a manner contrary to applicable regulations
or labeling instructions provided at the time of use and
the contamination is not due to the fault of the farmer,
$100,000, to remain available until expended (7 U.S.C.
2209b): Provided, That none of the funds contained in this
Act shall be used to make indemnity payments to any
farmer whose milk was removed from commercial markets
as a result of his willful failure to follow procedures pre-
scribed by the Federal Government: Provided further, That
this amount shall be transferred to the Commodity Credit
Corporation: Provided further, That the Secretary is au-
thorized to utilize the services, facilities, and authorities
of the Commodity Credit Corporation for the purpose of
making dairy indemnity disbursements.
OUTREACH FOR SOCIALLY DISADVANTAGED FARMERS
For grants and contracts pursuant to section 2501
of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 2279), $1,000,000, to remain available
until expended.
AGRICULTURAL CREDIT INSURANCE FUND PROGRAM
ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For gross obligations for the principal amount of di-
rect and guaranteed loans as authorized by 7 U.S.C.
1928–1929, to be available from funds in the Agricultural
Credit Insurance Fund, as follows: farm ownership loans,
$600,000,000, of which $550,000,000 shall be for guaran-
teed loans; operating loans, $2,345,071,000, of which
$1,700,000,000 shall be for unsubsidized guaranteed
loans and $200,000,000 shall be for subsidized guaranteed
loans; Indian tribe land acquisition loans as authorized by
25 U.S.C. 488, $1,000,000; for emergency insured loans,
$25,000,000 to meet the needs resulting from natural dis-
asters and for credit sales of acquired property,
$25,000,000.
For the cost of direct and guaranteed loans, including
the cost of modifying loans as defined in section 502 of
the Congressional Budget Act of 1974, as follows: farm
ownership loans, $27,975,000, of which $22,055,000 shall
be for guaranteed loans; operating loans, $96,840,000, of
which $19,210,000 shall be for unsubsidized guaranteed
loans and $18,480,000 shall be for subsidized guaranteed
loans; Indian tribe land acquisition loans as authorized by
25 U.S.C. 488, $54,000; for emergency insured loans,
$6,365,000 to meet the needs resulting from natural dis-
asters; and for credit sales of acquired property,
$2,530,000.
In addition, for administrative expenses necessary to
carry out the direct and guaranteed loan programs,
$221,046,000, of which $208,446,000 shall be transferred
to and merged with the ‘‘Farm Service Agency, Salaries
and Expenses’’ account.
OFFICE OF RISK MANAGEMENT
For administrative and operating expenses, as au-
thorized by the Federal Agriculture Improvement and Re-
form Act of 1996 (7 U.S.C. 6933), $62,198,000: Provided,
That not to exceed $700 shall be available for official re-
ception and representation expenses, as authorized by 7
U.S.C. 1506(i).
CORPORATIONS
The following corporations and agencies are hereby
authorized to make expenditures, within the limits of
funds and borrowing authority available to each such cor-
poration or agency and in accord with law, and to make
contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Government
Corporation Control Act, as amended, as may be necessary
in carrying out the programs set forth in the budget for
the current fiscal year for such corporation or agency, ex-
cept as hereinafter provided.
FEDERAL CROP INSURANCE CORPORATION FUND
For payments as authorized by section 516 of the
Federal Crop Insurance Act, as amended, such sums as
may be necessary, to remain available until expended (7
U.S.C. 2209b).
COMMODITY CREDIT CORPORATION FUND
REIMBURSEMENT FOR NET REALIZED LOSSES
For fiscal year 1997, such sums as may be necessary
to reimburse the Commodity Credit Corporation for net
realized losses sustained, but not previously reimbursed
(estimated to be $1,500,000,000 in the President’s fiscal
year 1997 Budget Request (H. Doc. 104–162)), but not
to exceed $1,500,000,000, pursuant to section 2 of the
Act of August 17, 1961, as amended (15 U.S.C. 713a–
11).
OPERATIONS AND MAINTENANCE FOR HAZARDOUS WASTE
MANAGEMENT
For fiscal year 1997, the Commodity Credit Corpora-
tion shall not expend more than $5,000,000 for expenses
to comply with the requirement of section 107(g) of the
Comprehensive Environmental Response, Compensation,
and Liability Act, as amended, 42 U.S.C. 9607(g), and
section 6001 of the Resource Conservation and Recovery
Act, as amended, 42 U.S.C. 6961: Provided, That ex-
penses shall be for operations and maintenance costs only
and that other hazardous waste management costs shall
be paid for by the USDA Hazardous Waste Management
appropriation in this Act.
TITLE II
CONSERVATION PROGRAMS
OFFICE OF THE UNDER SECRETARY FOR NATURAL
RESOURCES AND ENVIRONMENT
For necessary salaries and expenses of the Office of
the Under Secretary for Natural Resources and Environ-
ment to administer the laws enacted by the Congress for
the Forest Service and the Natural Resources Conserva-
tion Service, $693,000.
NATURAL RESOURCES CONSERVATION SERVICE
CONSERVATION OPERATIONS
For necessary expenses for carrying out the provi-
sions of the Act of April 27, 1935 (16 U.S.C. 590a–590f)
including preparation of conservation plans and establish-
ment of measures to conserve soil and water (including
farm irrigation and land drainage and such special meas-
ures for soil and water management as may be necessary
to prevent floods and the siltation of reservoirs and to con-
trol agricultural related pollutants); operation of conserva-
tion plant materials centers; classification and mapping of
soil; dissemination of information; acquisition of lands,
water, and interests therein for use in the plant materials
program by donation, exchange, or purchase at a nominal
cost not to exceed $100 pursuant to the Act of August
3, 1956 (7 U.S.C. 428a); purchase and erection or alter-
ation or improvement of permanent and temporary build-
ings; and operation and maintenance of aircraft,
$619,392,000, to remain available until expended (7
U.S.C. 2209b), of which not less than $5,835,000 is for
snow survey and water forecasting and not less than
$8,825,000 is for operation and establishment of the plant
materials centers: Provided, That appropriations here-
under shall be available pursuant to 7 U.S.C. 2250 for
construction and improvement of buildings and public im-
provements at plant materials centers, except that the cost
of alterations and improvements to other buildings and
other public improvements shall not exceed $250,000: Pro-
vided further, That when buildings or other structures are
erected on non-Federal land, that the right to use such
land is obtained as provided in 7 U.S.C. 2250a: Provided
further, That this appropriation shall be available for tech-
nical assistance and related expenses to carry out pro-
grams authorized by section 202(c) of title II of the Colo-
rado River Basin Salinity Control Act of 1974, as amend-
ed (43 U.S.C. 1592(c)): Provided further, That no part
of this appropriation may be expended for soil and water
conservation operations under the Act of April 27, 1935
(16 U.S.C. 590a–590f) in demonstration projects: Pro-
vided further, That this appropriation shall be available
for employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225) and
not to exceed $25,000 shall be available for employment
under 5 U.S.C. 3109: Provided further, That qualified
local engineers may be temporarily employed at per diem
rates to perform the technical planning work of the Service
(16 U.S.C. 590e–2).
WATERSHED SURVEYS AND PLANNING
For necessary expenses to conduct research, inves-
tigation, and surveys of watersheds of rivers and other wa-
terways, and for small watershed investigations and plan-
ning, in accordance with the Watershed Protection and
Flood Prevention Act approved August 4, 1954, as
amended (16 U.S.C. 1001–1009), $10,762,000: Provided,
That this appropriation shall be available for employment
pursuant to the second sentence of section 706(a) of the
Organic Act of 1944 (7 U.S.C. 2225), and not to exceed
$110,000 shall be available for employment under 5
U.S.C. 3109.
WATERSHED AND FLOOD PREVENTION OPERATIONS
For necessary expenses to carry out preventive meas-
ures, including but not limited to research, engineering op-
erations, methods of cultivation, the growing of vegetation,
rehabilitation of existing works and changes in use of land,
in accordance with the Watershed Protection and Flood
Prevention Act approved August 4, 1954, as amended (16
U.S.C. 1001–1005, 1007–1009), the provisions of the Act
of April 27, 1935 (16 U.S.C. 590a–f), and in accordance
with the provisions of laws relating to the activities of the
Department, $101,036,000, to remain available until ex-
pended (7 U.S.C. 2209b) (of which up to $15,000,000
may be available for the watersheds authorized under the
Flood Control Act approved June 22, 1936 (33 U.S.C.
701, 16 U.S.C. 1006a), as amended and supplemented:
Provided, That this appropriation shall be available for
employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225), and
not to exceed $200,000 shall be available for employment
under 5 U.S.C. 3109: Provided further, That not to exceed
$1,000,000 of this appropriation is available to carry out
the purposes of the Endangered Species Act of 1973 (Pub-
lic Law 93–205), as amended, including cooperative ef-
forts as contemplated by that Act to relocate endangered
or threatened species to other suitable habitats as may be
necessary to expedite project construction.
RESOURCE CONSERVATION AND DEVELOPMENT
For necessary expenses in planning and carrying out
projects for resource conservation and development and
for sound land use pursuant to the provisions of section
32(e) of title III of the Bankhead-Jones Farm Tenant
Act, as amended (7 U.S.C. 1010–1011; 76 Stat. 607), the
Act of April 27, 1935 (16 U.S.C. 590a–f), and the Agri-
culture and Food Act of 1981 (16 U.S.C. 3451–3461),
$29,377,000, to remain available until expended (7 U.S.C.
2209b): Provided, That this appropriation shall be avail-
able for employment pursuant to the second sentence of
section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $50,000 shall be available for
employment under 5 U.S.C. 3109.
FORESTRY INCENTIVES PROGRAM
For necessary expenses, not otherwise provided for,
to carry out the program of forestry incentives, as author-
ized in the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2101), including technical assistance and relat-
ed expenses, $6,325,000, to remain available until ex-
pended, as authorized by that Act.
TITLE III
RURAL ECONOMIC AND COMMUNITY
DEVELOPMENT PROGRAMS
OFFICE OF THE UNDER SECRETARY FOR RURAL
DEVELOPMENT
For necessary salaries and expenses of the Office of
the Under Secretary for Rural Development to administer
programs under the laws enacted by the Congress for the
Rural Housing Service, Rural Business-Cooperative Serv-
ice, and the Rural Utilities Service of the Department of
Agriculture, $588,000.
RURAL HOUSING SERVICE
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For gross obligations for the principal amount of di-
rect and guaranteed loans as authorized by title V of the
Housing Act of 1949, as amended, to be available from
funds in the rural housing insurance fund, as follows:
$3,300,000,000 for loans to section 502 borrowers, as de-
termined by the Secretary, of which $2,300,000,000 shall
be for unsubsidized guaranteed loans; $35,000,000 for
section 504 housing repair loans; $15,000,000 for section
514 farm labor housing; $58,654,000 for section 515 rent-
al housing; $600,000 for section 524 site loans;
$50,000,000 for credit sales of acquired property; and
$600,000 for section 523 self-help housing land develop-
ment loans.
For the cost of direct and guaranteed loans, including
the cost of modifying loans, as defined in section 502 of
the Congressional Budget Act of 1974, as follows: section
502 loans, $89,210,000, of which $6,210,000 shall be for
unsubsidized guaranteed loans; section 504 housing repair
loans, $11,081,000; section 514 farm labor housing,
$6,885,000; section 515 rental housing, $28,987,000: Pro-
vided, That no funds for new construction for section 515
rental housing may be available for fiscal year 1997; credit
sales of acquired property, $4,050,000; and section 523
self-help housing land development loans, $17,000.
In addition, for administrative expenses necessary to
carry out the direct and guaranteed loan programs,
$366,205,000, which shall be transferred to and merged
with the appropriation for ‘‘Rural Housing Service, Sala-
ries and Expenses’’.
RENTAL ASSISTANCE PROGRAM
For rental assistance agreements entered into or re-
newed pursuant to the authority under section 521(a)(2)
or agreements entered into in lieu of debt forgiveness or
payments for eligible households as authorized by section
502(c)(5)(D) of the Housing Act of 1949, as amended,
$493,870,000; and in addition such sums as may be nec-
essary, as authorized by section 521(c) of the Act, to liq-
uidate debt incurred prior to fiscal year 1992 to carry out
the rental assistance program under section 521(a)(2) of
the Act: Provided, That of this amount not more than
$5,900,000 shall be available for debt forgiveness or pay-
ments for eligible households as authorized by section
502(c)(5)(D) of the Act, and not to exceed $10,000 per
project for advances to nonprofit organizations or public
agencies to cover direct costs (other than purchase price)
incurred in purchasing projects pursuant to section
502(c)(5)(C) of the Act: Provided further, That agree-
ments entered into or renewed during fiscal year 1997
shall be funded for a five-year period, although the life
of any such agreement may be extended to fully utilize
amounts obligated.
MUTUAL AND SELF-HELP HOUSING GRANTS
For grants and contracts pursuant to section
523(b)(1)(A) of the Housing Act of 1949 (42 U.S.C.
1490c), $26,000,000, to remain available until expended
(7 U.S.C. 2209b).
RURAL HOUSING ASSISTANCE PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
For the cost of direct loans, loan guarantees, agree-
ments, and grants, as authorized by 7 U.S.C. 1926, 42
U.S.C. 1472, 1474, 1479, 1486, and 1490(a), except for
sections 381E, 381H, 381N of the Consolidated Farm and
Rural Development Act, $73,190,000, to remain available
until expended, for direct loans and loan guarantees for
community facilities, community facilities grant program,
rural housing for domestic farm labor grants, supervisory
and technical assistance grants, very low-income housing
repair grants, rural community fire protection grants,
rural housing preservation grants, and compensation for
construction defects of the Rural Housing Service: Pro-
vided, That the cost of direct loans and loan guarantees
shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That
the amounts appropriated shall be transferred to loan pro-
gram and grant accounts as determined by the Secretary:
Provided further, That no funds for new construction re-
lating to 515 rental housing may be available for fiscal
year 1997: Provided further, That of the funds made avail-
able in this paragraph not more than $1,200,000 shall be
available for the multi-family rural housing loan guarantee
program as authorized by section 5 of Public Law 104–
120: Provided further, That if such funds are not obligated
for multi-family rural housing loan guarantees by June
30, 1997, they remain available for other authorized pur-
poses under this head: Provided further, That of the total
amount appropriated, not to exceed $1,200,000 shall be
available for the cost of direct loans, loan guarantees, and
grants to be made available for empowerment zones and
enterprise communities as authorized by Public Law 103–
66: Provided further, That if such funds are not obligated
for empowerment zones and enterprise communities by
June 30, 1997, they remain available for other authorized
purposes under this head.
SALARIES AND EXPENSES
For necessary expenses of the Rural Housing Service,
including administering the programs authorized by the
Consolidated Farm and Rural Development Act, as
amended, title V of the Housing Act of 1949, as amended,
and cooperative agreements, $53,889,000: Provided, That
this appropriation shall be available for employment pur-
suant to the second sentence of 706(a) of the Organic Act
of 1944, and not to exceed $520,000 may be used for em-
ployment under 5 U.S.C. 3109.
RURAL BUSINESS-COOPERATIVE SERVICE
RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of direct loans, $18,400,000, as author-
ized by the Rural Development Loan Fund (42 U.S.C.
9812(a)): Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974: Provided fur-
ther, That these funds are available to subsidize gross obli-
gations for the principal amount of direct loans of
$40,000,000: Provided further, That through June 30,
1997, of the total amount appropriated $3,345,000 shall
be available for the cost of direct loans, for empowerment
zones and enterprise communities, as authorized by title
XIII of the Omnibus Budget Reconciliation Act of 1993,
to subsidize gross obligations for the principal amount of
direct loans, $7,246,000.
RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM
ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the principal amount of direct loans, as author-
ized under section 313 of the Rural Electrification Act,
for the purpose of promoting rural economic development
and job creation projects, $12,865,000.
For the cost of direct loans, including the cost of
modifying loans as defined in section 502 of the Congres-
sional Budget Act of 1974, $2,830,000. In addition, for
administrative expenses necessary to carry out the direct
loan program, $654,000, which shall be transferred to and
merged with the appropriation for ‘‘Salaries and Ex-
penses.’’
ALTERNATIVE AGRICULTURAL RESEARCH AND
COMMERCIALIZATION REVOLVING FUND
For necessary expenses to carry out the Alternative
Agricultural Research and Commercialization Act of 1990
(7 U.S.C. 5901–5908), $6,000,000 is appropriated to the
alternative agricultural research and commercialization re-
volving fund.
RURAL BUSINESS—COOPERATIVE ASSISTANCE PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
For the cost of direct loans, loan guarantees, and
grants, as authorized by 7 U.S.C. 1926, 1928, and 1932,
except for 381E, 381H, 381N of the Consolidated Farm
and Rural Development Act, $51,400,000, to remain
available until expended, for direct loans and loan guaran-
tees for business and industry assistance, rural business
grants, rural cooperative development grants, and rural
business opportunity grants of the Rural Business—Coop-
erative Service: Provided, That the cost of direct loans and
loan guarantees shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided
further, That $500,000 shall be available for grants to
qualified nonprofit organizations as authorized under sec-
tion 310B(c)(2) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1932): Provided further, That the
amounts appropriated shall be transferred to loan pro-
gram and grant accounts as determined by the Secretary:
Provided further, That, of the total amount appropriated,
not to exceed $3,000,000 shall be available for cooperative
development: Provided further, That, of the total amount
appropriated, not to exceed $148,000 shall be available for
the cost of direct loans, loan guarantees, and grants to
be made available for business and industry loans for
empowerment zones and enterprise communities as au-
thorized by Public Law 103–66 and rural development
loans for empowerment zones and enterprise communities
as authorized by title XIII of the Omnibus Budget Rec-
onciliation Act of 1993: Provided further, That if such
funds are not obligated for empowerment zones and enter-
prise communities by June 30, 1997, they remain avail-
able for other authorized purposes under this head.
SALARIES AND EXPENSES
For necessary expenses of the Rural Business-Coop-
erative Service, including administering the programs au-
thorized by the Consolidated Farm and Rural Develop-
ment Act, as amended; section 1323 of the Food Security
Act of 1985; the Cooperative Marketing Act of 1926; for
activities relating to the marketing aspects of cooperatives,
including economic research findings, as authorized by the
Agricultural Marketing Act of 1946; for activities with in-
stitutions concerning the development and operation of ag-
ricultural cooperatives; and cooperative agreements;
$25,680,000: Provided, That this appropriation shall be
available for employment pursuant to the second sentence
of 706(a) of the Organic Act of 1944, and not to exceed
$260,000 may be used for employment under 5 U.S.C.
3109.
RURAL UTILITIES SERVICE
RURAL ELECTRIFICATION AND TELECOMMUNICATIONS
LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Insured loans pursuant to the authority of section
305 of the Rural Electrification Act of 1936, as amended
(7 U.S.C. 935), shall be made as follows: 5 percent rural
electrification loans, $125,000,000, 5 percent rural tele-
communications loans, $75,000,000; cost of money rural
telecommunications loans, $300,000,000; municipal rate
rural electric loans, $525,000,000; and loans made pursu-
ant to section 306 of that Act, rural electric,
$300,000,000, 
and 
rural 
telecommunications,
$120,000,000, to remain available until expended.
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, including the cost of modi-
fying loans, of direct and guaranteed loans authorized by
the Rural Electrification Act of 1936, as amended (7
U.S.C. 935), as follows: cost of direct loans, $4,818,000;
cost of municipal rate loans, $28,245,000; cost of money
rural telecommunications loans, $60,000; cost of loans
guaranteed pursuant to section 306, $2,790,000: Pro-
vided, That notwithstanding section 305(d)(2) of the
Rural Electrification Act of 1936, borrower interest rates
may exceed 7 percent per year.
In addition, for administrative expenses necessary to
carry out the direct and guaranteed loan programs,
$29,982,000, which shall be transferred to and merged
with the appropriation for ‘‘Salaries and Expenses.’’
RURAL TELEPHONE BANK PROGRAM ACCOUNT
The Rural Telephone Bank is hereby authorized to
make such expenditures, within the limits of funds avail-
able to such corporation in accord with law, and to make
such contracts and commitments without regard to fiscal
year limitations as provided by section 104 of the Govern-
ment Corporation Control Act, as amended, as may be
necessary in carrying out its authorized programs for the
current fiscal year. During fiscal year 1997 and within
the resources and authority available, gross obligations for
the 
principal 
amount 
of 
direct 
loans 
shall 
be
$175,000,000.
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, including the cost of modi-
fying loans, of direct loans authorized by the Rural Elec-
trification Act of 1936, as amended (7 U.S.C. 935),
$2,328,000.
In addition, for administrative expenses necessary to
carry out the loan programs, $3,500,000.
DISTANCE LEARNING AND MEDICAL LINK PROGRAM
For the cost of direct loans and grants, as authorized
by 7 U.S.C. 950aaa et seq., as amended, $7,500,000, to
remain available until expended, to be available for loans
and grants for telemedicine and distance learning services
in rural areas: Provided, That the costs of direct loans