134 
islation meeting the criteria in paragraph (1), 
estate and gift tax law had instead been amend-
ed so that the tax rates, nominal exemption 
amounts, and related parameters in effect for tax 
year 2009 had remained in effect thereafter with-
out change. 
(d) PERMANENT EXTENSION OF MIDDLE-CLASS TAX 
CUTS AND AMT RELIEF.— 
(1) CRITERIA.—Legislation that includes provi-
sions extending middle-class tax cuts or AMT relief 
shall trigger the current policy adjustment required 
by this division if those provisions extend one or more 
of the following provisions— 
(A) AMT relief for calendar year 2010 and 
subsequent years in such a manner that the 
number of AMT taxpayers is not estimated to ex-
ceed the number of AMT taxpayers in tax year 
2008 in any year through the tenth year after 
enactment; 
(B) the 10 percent bracket as in effect for 
tax year 2010, as provided for under section 
101(a) of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 and any later amend-
ments through July 15, 2009;
135 
(C) the child tax credit as in effect for tax 
year 2010, as provided for under section 201 of 
the Economic Growth and Tax Relief Reconcili-
ation Act and any later amendments through 
July 15, 2009; 
(D) tax benefits for married couples as in 
effect for tax year 2010, as provided for under 
title III of the Economic Growth and Tax Relief 
Reconciliation Act and any later amendments 
through July 15, 2009; 
(E) the adoption credit as in effect in tax 
year 2010, as provided for under section 202 of 
the Economic Growth and Tax Relief Reconcili-
ation Act of 2001 and any later amendments 
through July 15, 2009; 
(F) the dependent care credit as in effect in 
tax year 2010, as provided for under section 204 
of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 and any later amend-
ments through July 15, 2009; 
(G) the employer-provided child care credit 
as in effect in tax year 2010, as provided for 
under section 205 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 and any 
later amendments through July 15, 2009;
136 
(H) the education tax benefits as in effect in 
tax year 2010, as provided for under title IV of 
the Economic Growth and Tax Relief Reconcili-
ation Act of 2001 and any later amendments 
through July 15, 2009; 
(I) the 25 and 28 percent brackets as in ef-
fect for tax year 2010, as provided for under sec-
tion 101(a) of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 and any later 
amendments through July 15, 2009; and 
(J) the 33 percent brackets as in effect for 
tax year 2010, as provided for under section 
101(a) of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 and any later amend-
ment affecting taxpayers with taxable income of 
$200,000 or less for individuals and $250,000 or 
less for couples in calendar year 2010 and in-
creased in each subsequent year by an amount 
equal to the cost of living adjustment determined 
under section 1(f)(3) of the Internal Revenue 
Code of 1986 for the calendar year in which the 
taxable year begins, determined by substituting 
‘‘calendar year 2008’’ for ‘‘calendar year 1992’’ 
in subparagraph (B) thereof.
137 
(2) ADJUSTMENT.—The amount of the maximum 
current policy adjustment shall be the difference be-
tween what total revenues would have been under the 
Internal Revenue Code of 1986 (as scheduled on July 
15, 2009, to be in effect) and what revenues would be 
if legislation— 
(A) permanently extending the AMT exemp-
tion and brackets in effect in tax year 2009 but 
increased in tax year 2010 and each subsequent 
tax year as indicated under subsection (d)(2)(B), 
along with any additional amount necessary to 
prevent the number of taxpayers who must pay 
AMT from increasing; and 
(B) permanently extending the provisions 
identified in paragraph (1), 
were enacted on the same day as the legislation re-
ferred to in paragraph (1). 
SEC. 108. APPLICATION OF BBEDCA. 
For purposes of this division— 
(1) notwithstanding section 275 of BBEDCA, the 
provisions of sections 255, 256, 257, and 274 of 
BBEDCA, as amended by this division, shall apply 
to the provisions of this division;
138 
(2) references in sections 255, 256, 257, and 274 
to ‘‘this part’’ or ‘‘this title’’ shall be interpreted as 
applying to this division; 
(3) references in sections 255, 256, 257, and 274 
of BBEDCA to ‘‘section 254’’ shall be interpreted as 
referencing section 105 of this division; 
(4) the reference in section 256(b) of BBEDCA 
to ‘‘section 252 or 253’’ shall be interpreted as ref-
erencing section 105 of this division; 
(5) the reference in section 256(d)(1) of 
BBEDCA to ‘‘section 252 or 253’’ shall be interpreted 
as referencing section 106 of this division; 
(6) the reference in section 256(d)(4) of 
BBEDCA to ‘‘section 252 or 253’’ shall be interpreted 
as referencing section 105 of this division; 
(7) section 256(k) of BBEDCA shall apply to a 
sequestration, if any, under this division; and 
(8) references in section 257(e) of BBEDCA to 
‘‘section 251, 252, or 253’’ shall be interpreted as ref-
erencing section 104 of this division. 
SEC. 109. TECHNICAL CORRECTIONS. 
(a) Section 250(c)(18) of BBEDCA is amended by 
striking ‘‘the expenses the Federal deposit insurance agen-
cies’’ and inserting ‘‘the expenses of the Federal deposit in-
surance agencies’’.
139 
(b) Section 256(k)(1) of BBEDCA is amended by strik-
ing ‘‘in paragraph (5)’’ and inserting ‘‘in paragraph (6)’’. 
SEC. 110. CONFORMING AMENDMENTS. 
(a) Section 256(a) of BBEDCA is repealed. 
(b) Section 256(b) of BBEDCA is amended by striking 
‘‘origination fees under sections 438(c)(2) and 455(c) of 
that Act shall each be increased by 0.50 percentage point.’’ 
and inserting in lieu thereof ‘‘origination fees under sec-
tions 438(c)(2) and (6) and 455(c) and loan processing and 
issuance fees under section 428(f)(1)(A)(ii) of that Act shall 
each be increased by the uniform percentage specified in 
that sequestration order, and, for student loans originated 
during the period of the sequestration, special allowance 
payments under section 438(b) of that Act accruing during 
the period of the sequestration shall be reduced by the uni-
form percentage specified in that sequestration order.’’. 
(c) Section 256(c) of BBEDCA is repealed. 
(d) Section 256(d) of BBEDCA is amended— 
(1) by redesignating paragraphs (2), (3), and (4) 
as paragraphs (3), (5), and (6); 
(2) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) CALCULATION OF REDUCTION IN PAYMENT 
AMOUNTS.—To achieve the total percentage reduction 
in those programs required by section 252 or 253,
140 
subject to paragraph (2), and notwithstanding section 
710 of the Social Security Act, OMB shall determine, 
and the applicable Presidential order under section 
254 shall implement, the percentage reduction that 
shall apply, with respect to the health insurance pro-
grams under title XVIII of the Social Security Act— 
‘‘(A) in the case of parts A and B of such 
title, to individual payments for services fur-
nished during the one-year period beginning on 
the first day of the first month beginning after 
the date the order is issued (or, if later, the date 
specified in paragraph (4)); and 
‘‘(B) in the case of parts C and D, to 
monthly payments under contracts under such 
parts for the same one-year period; 
such that the reduction made in payments under that 
order shall achieve the required total percentage re-
duction in those payments for that period.’’; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) UNIFORM REDUCTION RATE; MAXIMUM PER-
MISSIBLE REDUCTION.—Reductions in payments for 
programs and activities under such title XVIII pursu-
ant to a sequestration order under section 254 shall 
be at a uniform rate, which shall not exceed 4 per-
141 
cent, across all such programs and activities subject 
to such order.’’; 
(4) by inserting after paragraph (3), as redesig-
nated, the following: 
‘‘(4) TIMING OF SUBSEQUENT SEQUESTRATION 
ORDER.—A sequestration order required by section 
252 or 253 with respect to programs under such title 
XVIII shall not take effect until the first month begin-
ning after the end of the effective period of any prior 
sequestration order with respect to such programs, as 
determined in accordance with paragraph (1).’’; 
(5) in paragraph (6), as redesignated, to read as 
follows: 
‘‘(6) SEQUESTRATION
DISREGARDED
IN
COM-
PUTING PAYMENT AMOUNTS.—The Secretary of Health 
and Human Services shall not take into account any 
reductions in payment amounts which have been or 
may be effected under this part, for purposes of com-
puting any adjustments to payment rates under such 
title XVIII, specifically including— 
‘‘(A) the part C growth percentage under 
section 1853(c)(6); 
‘‘(B) the part D annual growth rate under 
section 1860D–2(b)(6); and
142 
‘‘(C) application of risk corridors to part D 
payment rates under section 1860D–15(e).’’; and 
(6) by adding after paragraph (6), as redesig-
nated, the following: 
‘‘(7) EXEMPTIONS
FROM
SEQUESTRATION.—In 
addition to the programs and activities specified in 
section 255, the following shall be exempt from seques-
tration under this part: 
‘‘(A) PART
D
LOW-INCOME
SUBSIDIES.— 
Premium and cost-sharing subsidies under sec-
tion 1860D–14 of the Social Security Act. 
‘‘(B) PART
D
CATASTROPHIC
SUBSIDY.— 
Payments 
under 
section 
1860D–15(b) 
and 
(e)(2)(B) of the Social Security Act. 
‘‘(C) QUALIFIED
INDIVIDUAL
(QI)
PRE-
MIUMS.—Payments to States for coverage of 
Medicare cost-sharing for certain low-income 
Medicare beneficiaries under section 1933 of the 
Social Security Act.’’. 
SEC. 111. EXEMPT PROGRAMS AND ACTIVITIES. 
(a) DESIGNATIONS.—Section 255 of BBEDCA is 
amended by redesignating subsection (i) as (j) and striking 
‘‘1998’’ and inserting in lieu thereof ‘‘2010’’.
143 
(b) SOCIAL SECURITY, VETERANS PROGRAMS, NET IN-
TEREST, AND TAX CREDITS.—Subsections (a) through (d) 
of section 255 of BBEDCA are amended to read as follows: 
‘‘(a) SOCIAL SECURITY BENEFITS AND TIER I RAIL-
ROAD RETIREMENT BENEFITS.—Benefits payable under the 
old-age, survivors, and disability insurance program estab-
lished under title II of the Social Security Act (42 U.S.C. 
401 et seq.), and benefits payable under section 231b(a), 
231b(f)(2), 231c(a), and 231c(f) of title 45, United States 
Code, shall be exempt from reduction under any order 
issued under this part. 
‘‘(b) VETERANS PROGRAMS.—The following program 
shall be exempt from reduction under any order issued 
under this part— 
‘‘All programs administered by the Department 
of Veterans Affairs. 
‘‘Special Benefits for Certain World War II Vet-
erans (28–0401–0–1–701). 
‘‘(c) NET INTEREST.—No reduction of payments for 
net interest (all of major functional category 900) shall be 
made under any order issued under this part. 
‘‘(d) REFUNDABLE INCOME TAX CREDITS.—Payments 
to individuals made pursuant to provisions of the Internal 
Revenue Code of 1986 establishing refundable tax credits
144 
shall be exempt from reduction under any order issued 
under this part.’’. 
(c) OTHER PROGRAMS AND ACTIVITIES, LOW-INCOME 
PROGRAMS, AND ECONOMIC RECOVERY PROGRAMS.—Sub-
sections (g) and (h) of section 255 of BBEDCA are amended 
to read as follows: 
‘‘(g) OTHER PROGRAMS AND ACTIVITIES.— 
‘‘(1)(A) The following budget accounts and ac-
tivities shall be exempt from reduction under any 
order issued under this part: 
‘‘Activities resulting from private donations, 
bequests, or voluntary contributions to the Gov-
ernment. 
‘‘Activities financed by voluntary payments 
to the Government for goods or services to be pro-
vided for such payments. 
‘‘Administration of Territories, Northern 
Mariana Islands Covenant grants (14–0412–0– 
1–808). 
‘‘Advances to the Unemployment Trust 
Fund and Other Funds (16–0327–0–1–600). 
‘‘Black Lung Disability Trust Fund Refi-
nancing (16–0329–0–1–601). 
‘‘Bonneville Power Administration Fund 
and borrowing authority established pursuant to
145 
section 13 of Public Law 93–454 (1974), as 
amended (89–4045–0–3–271). 
‘‘Claims, Judgments, and Relief Acts (20– 
1895–0–1–808). 
‘‘Compact of Free Association (14–0415–0– 
1–808). 
‘‘Compensation of the President (11–0209– 
01–1–802). 
‘‘Comptroller of the Currency, Assessment 
Funds (20–8413–0–8–373). 
‘‘Continuing Fund, Southeastern Power Ad-
ministration (89–5653–0–2–271). 
‘‘Continuing Fund, Southwestern Power 
Administration (89–5649–0–2–271). 
‘‘Dual Benefits Payments Account (60– 
0111–0–1–601). 
‘‘Emergency Fund, Western Area Power Ad-
ministration (89–5069–0–2–271). 
‘‘Exchange Stabilization Fund (20–4444–0– 
3–155). 
‘‘Federal Deposit Insurance Corporation, 
Deposit Insurance Fund (51–4596–4–4–373). 
‘‘Federal Deposit Insurance Corporation, 
FSLIC Resolution Fund (51–4065–0–3–373).
147 
‘‘Internal Revenue Collections for Puerto 
Rico (20–5737–0–2–806). 
‘‘Intragovernmental funds, including those 
from which the outlays are derived primarily 
from resources paid in from other government 
accounts, except to the extent such funds are aug-
mented by direct appropriations for the fiscal 
year during which an order is in effect. 
‘‘Medical Facilities Guarantee and Loan 
Fund (75–9931–0–3–551). 
‘‘National Credit Union Administration, 
Central Liquidity Facility (25–4470–0–3–373). 
‘‘National Credit Union Administration, 
Corporate Credit Union Share Guarantee Pro-
gram (25–4476–0–3–376). 
‘‘National Credit Union Administration, 
Credit Union Homeowners Affordability Relief 
Program (25–4473–0–3–371). 
‘‘National Credit Union Administration, 
Credit Union Share Insurance Fund (25–4468– 
0–3–373). 
‘‘National Credit Union Administration, 
Credit Union System Investment Program (25– 
4474–0–3–376).
148 
‘‘National Credit Union Administration, 
Operating fund (25–4056–0–3–373). 
‘‘National Credit Union Administration, 
Share Insurance Fund Corporate Debt Guar-
antee Program (25–4469–0–3–376). 
‘‘National Credit Union Administration, 
U.S. Central Federal Credit Union Capital Pro-
gram (25–4475–0–3–376). 
‘‘Office of Thrift Supervision (20–4108–0– 
3–373). 
‘‘Panama Canal Commission Compensation 
Fund (16–5155–0–2–602). 
‘‘Payment of Vietnam and USS Pueblo 
prisoner-of-war claims within the Salaries and 
Expenses, Foreign Claims Settlement account 
(15–0100–0–1–153). 
‘‘Payment to Civil Service Retirement and 
Disability Fund (24–0200–0–1–805). 
‘‘Payment to Department of Defense Medi-
care-Eligible Retiree Health Care Fund (97– 
0850–0–1–054). 
‘‘Payment to Judiciary Trust Funds (10– 
0941–0–1–752). 
‘‘Payment to Military Retirement Fund 
(97–0040–0–1–054).
149 
‘‘Payment to the Foreign Service Retire-
ment and Disability Fund (19–0540–0–1–153). 
‘‘Payments to Copyright Owners (03–5175– 
0–2–376). 
‘‘Payments to Health Care Trust Funds 
(75–0580–0–1–571). 
‘‘Payment to Radiation Exposure Com-
pensation Trust Fund (15–0333–0–1–054). 
‘‘Payments to Social Security Trust Funds 
(28–0404–0–1–651). 
‘‘Payments to the United States Territories, 
Fiscal Assistance (14–0418–0–1–806). 
‘‘Payments to trust funds from excise taxes 
or other receipts properly creditable to such trust 
funds. 
‘‘Payments to widows and heirs of deceased 
Members of Congress (00–0215–0–1–801). 
‘‘Postal Service Fund (18–4020–0–3–372). 
‘‘Radiation Exposure Compensation Trust 
Fund (15–8116–0–1–054). 
‘‘Reimbursement to Federal Reserve Banks 
(20–0562–0–1–803). 
‘‘Salaries of Article III judges. 
‘‘Soldiers and Airmen’s Home, payment of 
claims (84–8930–0–7–705).
150 
‘‘Tennessee Valley Authority Fund, except 
nonpower programs and activities (64–4110–0– 
3–999). 
‘‘Tribal and Indian trust accounts within 
the Department of the Interior which fund prior 
legal obligations of the Government or which are 
established pursuant to Acts of Congress regard-
ing Federal management of tribal real property 
or other fiduciary responsibilities, including but 
not limited to Tribal Special Fund (14–5265–0– 
2–452), Tribal Trust Fund (14–8030–0–7–452), 
White Earth Settlement (14–2204–0–1–452), and 
Indian Water Rights and Habitat Acquisition 
(14–5505–0–2–303). 
‘‘United Mine Workers of America 1992 
Benefit Plan (95–8260–0–7–551). 
‘‘United Mine Workers of America 1993 
Benefit Plan (95–8535–0–7–551). 
‘‘United Mine Workers of America Com-
bined Benefit Fund (95–8295–0–7–551). 
‘‘United States Enrichment Corporation 
Fund (95–4054–0–3–271). 
‘‘Universal Service Fund (27–5183–0–2– 
376).
151 
‘‘Vaccine Injury Compensation (75–0320– 
0–1–551). 
‘‘Vaccine Injury Compensation Program 
Trust Fund (20–8175–0–7–551). 
‘‘(B) The following Federal retirement and dis-
ability accounts and activities shall be exempt from 
reduction under any order issued under this part: 
‘‘Black Lung Disability Trust Fund (20– 
8144–0–7–601). 
‘‘Central Intelligence Agency Retirement 
and Disability System Fund (56–3400–0–1– 
054). 
‘‘Civil Service Retirement and Disability 
Fund (24–8135–0–7–602). 
‘‘Comptrollers general retirement system 
(05–0107–0–1–801). 
‘‘Contributions to U.S. Park Police annuity 
benefits, Other Permanent Appropriations (14– 
9924–0–2–303). 
‘‘Court of Appeals for Veterans Claims Re-
tirement Fund (95–8290–0–7–705). 
‘‘Department of Defense Medicare-Eligible 
Retiree Health Care Fund (97–5472–0–2–551). 
‘‘District of Columbia Federal Pension 
Fund (20–5511–0–2–601).
152 
‘‘District of Columbia Judicial Retirement 
and Survivors Annuity Fund (20–8212–0–7– 
602). 
‘‘Energy Employees Occupational Illness 
Compensation Fund (16–1523–0–1–053). 
‘‘Foreign National Employees Separation 
Pay (97–8165–0–7–051). 
‘‘Foreign Service National Defined Con-
tributions Retirement Fund (19–5497–0–2–602). 
‘‘Foreign Service National Separation Li-
ability Trust Fund (19–8340–0–7–602). 
‘‘Foreign Service Retirement and Disability 
Fund(19–8186–0–7–602). 
‘‘Government Payment for Annuitants, Em-
ployees Health Benefits (24–0206–0–1–551). 
‘‘Government Payment for Annuitants, Em-
ployee Life Insurance (24–0500–0–1–602). 
‘‘Judicial Officers’ Retirement Fund (10– 
8122–0–7–602). 
‘‘Judicial Survivors’ Annuities Fund (10– 
8110–0–7–602). 
‘‘Military Retirement Fund (97–8097–0–7– 
602). 
‘‘National Railroad Retirement Investment 
Trust (60–8118–0–7–601).
154 
‘‘United States Secret Service, DC Annuity 
(70–0400–0–1–751). 
‘‘Voluntary Separation Incentive Fund (97– 
8335–0–7–051). 
‘‘(2) Prior legal obligations of the Government in 
the following budget accounts and activities shall be 
exempt from any order issued under this part: 
‘‘Biomass Energy Development (20–0114– 
0–1–271). 
‘‘Check Forgery Insurance Fund (20–4109– 
0–3–803). 
‘‘Credit liquidating accounts. 
‘‘Credit reestimates. 
‘‘Employees Life Insurance Fund (24– 
8424–0–8–602). 
‘‘Federal Aviation Insurance Revolving 
Fund (69–4120–0–3–402). 
‘‘Federal Crop Insurance Corporation Fund 
(12–4085–0–3–351). 
‘‘Federal Emergency Management Agency, 
National Flood Insurance Fund (58–4236–0–3– 
453). 
‘‘Federal Home Loan Mortgage Corporation 
(Freddie Mac).
155 
‘‘Federal National Mortgage Corporation 
(Fannie Mae). 
‘‘Geothermal resources development fund 
(89–0206–0–1–271). 
‘‘Low-Rent Public Housing—Loans and 
Other Expenses (86–4098–0–3–604). 
‘‘Maritime Administration, War Risk In-
surance Revolving Fund (69–4302–0–3–403). 
‘‘Natural 
Resource 
Damage 
Assessment 
Fund (14–1618–0–1–302). 
‘‘Overseas Private Investment Corporation, 
Noncredit Account (71–4184–0–3–151). 
‘‘Pension Benefit Guaranty Corporation 
Fund (16–4204–0–3–601). 
‘‘San Joaquin Restoration Fund (14–5537– 
0–2–301). 
‘‘Servicemembers’ Group Life Insurance 
Fund (36–4009–0–3–701). 
‘‘Terrorism Insurance Program (20–0123– 
0–1–376). 
‘‘(h) LOW-INCOME PROGRAMS.—The following pro-
grams shall be exempt from reduction under any order 
issued under this part: 
‘‘Academic Competitiveness/Smart Grant Pro-
gram (91–0205–0–1–502).
156 
‘‘Child Care Entitlement to States (75–1550–0– 
1–609). 
‘‘Child Enrollment Contingency Fund (75–5551– 
0–2–551). 
‘‘Child Nutrition Programs (with the exception 
of special milk programs) (12–3539–0–1–605). 
‘‘Children’s Health Insurance Fund (75–0515–0– 
1–551). 
‘‘Commodity Supplemental Food Program (12– 
3507–0–1–605). 
‘‘Contingency Fund (75–1522–0–1–609). 
‘‘Family Support Programs (75–1501–0–1–609). 
‘‘Federal Pell Grants under section 401 Title IV 
of the Higher Education Act. 
‘‘Grants to States for Medicaid (75–0512–0–1– 
551). 
‘‘Payments for Foster Care and Permanency 
(75–1545–0–1–609). 
‘‘Supplemental Nutrition Assistance Program 
(12–3505–0–1–605). 
‘‘Supplemental Security Income Program (28– 
0406–0–1–609). 
‘‘Temporary Assistance for Needy Families (75– 
1552–0–1–609).’’.
157 
(d) ECONOMIC RECOVERY PROGRAMS.—Section 255 of 
BBEDCA is amended by adding the following after sub-
section (h): 
‘‘(i) ECONOMIC RECOVERY PROGRAMS.—The following 
programs shall be exempt from reduction under any order 
issued under this part: 
‘‘All programs enacted in, or increases in pro-
grams provided by, the American Recovery and Rein-
vestment Act of 2009. 
‘‘Exchange Stabilization Fund-Money Market 
Mutual Fund Guaranty Facility (20–4274–0–3–376). 
‘‘Financial Stabilization Reserve (20–0131–4–1– 
376). 
‘‘GSE Mortgage-Backed Securities Purchase Pro-
gram Account (20–0126–0–1–371). 
‘‘GSE Preferred Stock Purchase Agreements (20– 
0125–0–1–371). 
‘‘Office of Financial Stability (20–0128–0–1– 
376). 
‘‘Special Inspector General for the Troubled 
Asset Relief Program (20–0133–0–1–376). 
‘‘Troubled Asset Relief Program Account (20– 
0132–0–1–376). 
‘‘Troubled Asset Relief Program Equity Purchase 
Program (20–0134–0–1–376).
158 
‘‘Troubled Asset Relief Program, Home Afford-
able Modification Program (20–0136–0–1–604).’’. 
Attest: 
Clerk.