In the Senate of the United States, 
August 5, 2010. 
Resolved, That the bill from the House of Representa-
tives (H.R. 1586) entitled ‘‘An Act to modernize the air traf-
fic control system, improve the safety, reliability, and avail-
ability of transportation by air in the United States, provide 
for modernization of the air traffic control system, reauthor-
ize the Federal Aviation Administration, and for other pur-
poses.’’, do pass with the following 
SENATE AMENDMENT TO HOUSE AMENDMENT TO 
SENATE AMENDMENT: 
In lieu of the matter proposed to be inserted, insert 
the following: 
SHORT TITLE 
SECTION
1. This Act may be cited as the 
‘‘llllllAct ofllll’’.
† HR 1586 EAS2 
cent to the Secretary of the Interior for schools 
operated or funded by the Bureau of Indian Af-
fairs on the basis of the schools’ respective needs 
for activities consistent with this heading under 
such terms and conditions as the Secretary of the 
Interior may determine. 
(2) RESERVATION.—A State that receives an al-
location of funds appropriated under this heading 
may reserve not more than 2 percent for the adminis-
trative costs of carrying out its responsibilities with 
respect to those funds. 
(3) AWARDS
TO
LOCAL
EDUCATIONAL
AGEN-
CIES.— 
(A) Except as specified in paragraph (2), 
an allocation of funds to a State shall be used 
only for awards to local educational agencies for 
the support of elementary and secondary edu-
cation in accordance with paragraph (5) for the 
2010–2011 school year (or, in the case of re-
allocations made under section 14001(f) of divi-
sion A of Public Law 111–5, for the 2010–2011 
or the 2011–2012 school year). 
(B) Funds used to support elementary and 
secondary education shall be distributed through 
a State’s primary elementary and secondary
† HR 1586 EAS2 
funding formulae or based on local educational 
agencies’ relative shares of funds under part A of 
title I of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311 et seq.) for 
the most recent fiscal year for which data are 
available. 
(C) Subsections (a) and (b) of section 14002 
of division A of Public Law 111–5 shall not 
apply to funds appropriated under this heading. 
(4) COMPLIANCE WITH EDUCATION REFORM AS-
SURANCES.—For purposes of awarding funds appro-
priated under this heading, any State that has an ap-
proved application for Phase II of the State Fiscal 
Stabilization Fund that was submitted in accordance 
with the application notice published in the Federal 
Register on November 17, 2009 (74 Fed. Reg. 59142) 
shall be deemed to be in compliance with subsection 
(b) and paragraphs (2) through (5) of subsection (d) 
of section 14005 of division A of Public Law 111–5. 
(5) REQUIREMENT TO USE FUNDS TO RETAIN OR 
CREATE EDUCATION JOBS.—Notwithstanding section 
14003(a) of division A of Public Law 111–5, funds 
awarded to local educational agencies under para-
graph (3)—
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(A) may be used only for compensation and 
benefits and other expenses, such as support serv-
ices, necessary to retain existing employees, to 
recall or rehire former employees, and to hire 
new employees, in order to provide early child-
hood, elementary, or secondary educational and 
related services; and 
(B) may not be used for general adminis-
trative expenses or for other support services ex-
penditures as those terms were defined by the 
National Center for Education Statistics in its 
Common Core of Data as of the date of enact-
ment of this Act. 
(6) PROHIBITION ON USE OF FUNDS FOR RAINY- 
DAY FUNDS OR DEBT RETIREMENT.—A State that re-
ceives an allocation may not use such funds, directly 
or indirectly, to— 
(A) establish, restore, or supplement a 
rainy-day fund; 
(B) supplant State funds in a manner that 
has the effect of establishing, restoring, or 
supplementing a rainy-day fund; 
(C) reduce or retire debt obligations in-
curred by the State; or
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(D) supplant State funds in a manner that 
has the effect of reducing or retiring debt obliga-
tions incurred by the State. 
(7) DEADLINE FOR AWARD.—The Secretary shall 
award funds appropriated under this heading not 
later than 45 days after the date of the enactment of 
this Act to States that have submitted applications 
meeting the requirements applicable to funds under 
this heading. The Secretary shall not require informa-
tion in applications beyond what is necessary to de-
termine compliance with applicable provisions of law. 
(8) ALTERNATE DISTRIBUTION OF FUNDS.—If, 
within 30 days after the date of the enactment of this 
Act, a Governor has not submitted an approvable ap-
plication, the Secretary shall provide for funds allo-
cated to that State to be distributed to another entity 
or other entities in the State (notwithstanding section 
14001(e) of division A of Public Law 111–5) for sup-
port of elementary and secondary education, under 
such terms and conditions as the Secretary may es-
tablish, provided that all terms and conditions that 
apply to funds appropriated under this heading shall 
apply to such funds distributed to such entity or enti-
ties. No distribution shall be made to a State under 
this paragraph, however, unless the Secretary has de-
† HR 1586 EAS2 
termined (on the basis of such information as may be 
available) that the requirements of clauses (i), (ii), or 
(iii) of paragraph 10(A) are likely to be met, notwith-
standing the lack of an application from the Governor 
of that State. 
(9) LOCAL
EDUCATIONAL
AGENCY
APPLICA-
TION.—Section 442 of the General Education Provi-
sions Act shall not apply to a local educational agen-
cy that has previously submitted an application to 
the State under title XIV of division A of Public Law 
111–5. The assurances provided under that applica-
tion shall continue to apply to funds awarded under 
this heading. 
(10) MAINTENANCE OF EFFORT.— 
(A) Except as provided in paragraph (8), 
the Secretary shall not allocate funds to a State 
under paragraph (1) unless the Governor of the 
State provides an assurance to the Secretary 
that— 
(i) for State fiscal year 2011, the State 
will maintain State support for elementary 
and secondary education (in the aggregate 
or on the basis of expenditures per pupil) 
and for public institutions of higher edu-
cation (not including support for capital
† HR 1586 EAS2 
projects or for research and development or 
tuition and fees paid by students) at not 
less than the level of such support for each 
of the two categories, respectively, for State 
fiscal year 2009; 
(ii) for State fiscal year 2011, the 
State will maintain State support for ele-
mentary and secondary education and for 
public institutions of higher education (not 
including support for capital projects or for 
research and development or tuition and 
fees paid by students) at a percentage of the 
total revenues available to the State that is 
equal to or greater than the percentage pro-
vided for each of the two categories, respec-
tively, for State fiscal year 2010; or 
(iii) in the case of a State in which 
State tax collections for calendar year 2009 
were less than State tax collections for cal-
endar year 2006, for State fiscal year 2011 
the State will maintain State support for 
elementary and secondary education (in the 
aggregate) and for public institutions of 
higher education (not including support for 
capital projects or for research and develop-
† HR 1586 EAS2 
ment or tuition and fees paid by stu-
dents)— 
(I) at not less than the level of 
such support for each of the two cat-
egories, respectively, for State fiscal 
year 2006; or 
(II) at a percentage of the total 
revenues available to the State that is 
equal to or greater than the percentage 
provided for each of the two categories, 
respectively, for State fiscal year 2006. 
(B) Section 14005(d)(1) and subsections (a) 
through (c) of section 14012 of division A of 
Public Law 111–5 shall not apply to funds ap-
propriated under this heading. 
(11) ADDITIONAL
REQUIREMENTS
FOR
THE 
STATE OF TEXAS.—The following requirements shall 
apply to the State of Texas: 
(A) Notwithstanding paragraph (3)(B), 
funds used to support elementary and secondary 
education shall be distributed based on local edu-
cational agencies’ relative shares of funds 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 fiscal year which data
† HR 1586 EAS2 
are available. Funds distributed pursuant to this 
paragraph shall be used to supplement and not 
supplant State formula funding that is distrib-
uted on a similar basis to part A of title I of the 
Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311 et seq.). 
(B) The Secretary shall not allocate funds 
to the State of Texas under paragraph (1) unless 
the Governor of the State provides an assurance 
to the Secretary that the State will for fiscal 
years 2011, 2012, and 2013 maintain State sup-
port for elementary and secondary education at 
a percentage of the total revenues available to the 
State that is equal to or greater than the per-
centage provided for such purpose for fiscal year 
2011 prior to the enactment of this Act. 
(C) Notwithstanding paragraph (8), no dis-
tribution shall be made to the State of Texas or 
local education agencies therein unless the Gov-
ernor of Texas makes an assurance to the Sec-
retary that the requirements in paragraphs 
(11)(A) and (11)(B) will be met, notwith-
standing the lack of an application from the 
Governor of Texas.
† HR 1586 EAS2 
TITLE II 
STATE FISCAL RELIEF AND OTHER PROVISIONS; 
REVENUE OFFSETS 
Subtitle A—State Fiscal Relief and Other Provisions 
EXTENSION OF ARRA INCREASE IN FMAP 
SEC. 201. Section 5001 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111–5) is amend-
ed— 
(1) in subsection (a)(3), by striking ‘‘first cal-
endar quarter’’ and inserting ‘‘first 3 calendar quar-
ters’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘para-
graph (2)’’ and inserting ‘‘paragraphs (2) and 
(3)’’; and 
(B) by adding at the end the following: 
‘‘(3) PHASE-DOWN OF GENERAL INCREASE.— 
‘‘(A) SECOND
QUARTER
OF
FISCAL
YEAR 
2011.—For each State, for the second quarter of 
fiscal year 2011, the FMAP percentage increase 
for the State under paragraph (1) or (2) (as ap-
plicable) shall be 3.2 percentage points. 
‘‘(B) THIRD
QUARTER
OF
FISCAL
YEAR 
2011.—For each State, for the third quarter of 
fiscal year 2011, the FMAP percentage increase
† HR 1586 EAS2 
for the State under paragraph (1) or (2) (as ap-
plicable) shall be 1.2 percentage points.’’; 
(3) in subsection (c)— 
(A) in paragraph (2)(B), by striking ‘‘July 
1, 2010’’ and inserting ‘‘January 1, 2011’’; 
(B) in paragraph (3)(B)(i), by striking 
‘‘July 1, 2010’’ and inserting ‘‘January 1, 2011’’ 
each place it appears; and 
(C) in paragraph (4)(C)(ii), by striking 
‘‘the 3-consecutive-month period beginning with 
January 2010’’ and inserting ‘‘any 3-consecu-
tive-month period that begins after December 
2009 and ends before January 2011’’; 
(4) in subsection (e), by adding at the end the 
following: 
‘‘Notwithstanding paragraph (5), effective for payments 
made on or after January 1, 2010, the increases in the 
FMAP for a State under this section shall apply to pay-
ments under title XIX of such Act that are attributable to 
expenditures for medical assistance provided to nonpreg-
nant childless adults made eligible under a State plan 
under such title (including under any waiver under such 
title or under section 1115 of such Act (42 U.S.C. 1315)) 
who would have been eligible for child health assistance or 
other health benefits under eligibility standards in effect as
† HR 1586 EAS2 
of December 31, 2009, of a waiver of the State child health 
plan under the title XXI of such Act.’’; 
(5) in subsection (g)— 
(A) in paragraph (1), by striking ‘‘Sep-
tember 30, 2011’’ and inserting ‘‘March 31, 
2012’’; 
(B) in paragraph (2), by inserting ‘‘of such 
Act’’ after ‘‘1923’’; and 
(C) by adding at the end the following: 
‘‘(3) CERTIFICATION BY CHIEF EXECUTIVE OFFI-
CER.—No additional Federal funds shall be paid to a 
State as a result of this section with respect to a cal-
endar quarter occurring during the period beginning 
on January 1, 2011, and ending on June 30, 2011, 
unless, not later than 45 days after the date of enact-
ment of this paragraph, the chief executive officer of 
the State certifies that the State will request and use 
such additional Federal funds.’’; and 
(6) in subsection (h)(3), by striking ‘‘December 
31, 2010’’ and inserting ‘‘June 30, 2011’’. 
TREATMENT OF CERTAIN DRUGS FOR COMPUTATION OF 
MEDICAID AMP 
SEC. 202. Effective as if included in the enactment of 
Public Law 111–148, section 1927(k)(1)(B)(i)(IV) of the 
Social Security Act (42 U.S.C. 1396r–8(k)(1)(B)(i)(IV)), as 
amended by section 2503(a)(2)(B) of Public Law 111–148
† HR 1586 EAS2 
and section 1101(c)(2) of Public Law 111–152, is amended 
by adding at the end the following: ‘‘, unless the drug is 
an inhalation, infusion, instilled, implanted, or injectable 
drug that is not generally dispensed through a retail com-
munity pharmacy; and’’. 
SUNSET OF TEMPORARY INCREASE IN BENEFITS UNDER 
THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 
SEC. 203. Section 101(a) of title I of division A of 
Public Law 111–5 (123 Stat. 120), as amended by section 
4262 of this Act, is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) TERMINATION.—The authority provided by 
this subsection shall terminate after March 31, 
2014.’’. 
Subtitle B—Revenue Offsets 
RULES TO PREVENT SPLITTING FOREIGN TAX CREDITS 
FROM THE INCOME TO WHICH THEY RELATE 
SEC. 211. (a) IN GENERAL.—Subpart A of part III 
of subchapter N of chapter 1 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RE-
LATED INCOME TAKEN INTO ACCOUNT. 
‘‘(a) IN GENERAL.—If there is a foreign tax credit 
splitting event with respect to a foreign income tax paid 
or accrued by the taxpayer, such tax shall not be taken into