337 
(1) IN GENERAL.—In addition to amounts oth-
erwise made available, there are appropriated for fis-
cal year 2021, out of any funds in the Treasury not 
otherwise appropriated, $30,461,355,534, to remain 
available until September 30, 2024, that shall— 
(A) be for grants to eligible recipients 
under sections 5307, 5309, 5310, and 5311 of 
title 49, United States Code, to prevent, pre-
pare for, and respond to coronavirus; and 
(B) not be subject to any prior restriction 
on the total amount of funds available for im-
plementation or execution of programs author-
ized under sections 5307, 5310, or 5311 of 
such title. 
(2) AVAILABILITY OF FUNDS FOR OPERATING 
EXPENSES.— 
(A) IN
GENERAL.—Notwithstanding sub-
section (a)(1) or (b) of section 5307 and section 
5310(b)(2)(A) of title 49, United States Code, 
funds provided under this section, other than 
subsection (b)(4), shall be available for the op-
erating expenses of transit agencies to prevent, 
prepare for, and respond to the coronavirus 
public health emergency, including, beginning 
on January 20, 2020—
338 
(i) reimbursement for payroll of public 
transportation (including payroll and ex-
penses of private providers of public trans-
portation); 
(ii) operating costs to maintain service 
due to lost revenue due as a result of the 
coronavirus public health emergency, in-
cluding the purchase of personal protective 
equipment; and 
(iii) paying the administrative leave of 
operations or contractor personnel due to 
reductions in service. 
(B) USE OF FUNDS.—Funds described in 
subparagraph (A) shall be— 
(i) available for immediate obligation, 
notwithstanding the requirement for such 
expenses to be included in a transportation 
improvement program, long-range trans-
portation plan, statewide transportation 
plan, or statewide transportation improve-
ment program under sections 5303 and 
5304 of title 49, United States Code; 
(ii) directed to payroll and operations 
of public transportation (including payroll 
and expenses of private providers of public
339 
transportation), unless the recipient cer-
tifies to the Administrator of the Federal 
Transit Administration that the recipient 
has not furloughed any employees; 
(iii) used to provide a Federal share 
of the costs for any grant made under this 
section of 100 percent. 
(b) ALLOCATION OF FUNDS.— 
(1) URBANIZED AREA FORMULA GRANTS.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a), $26,086,580,227 
shall be for grants to recipients and subrecipi-
ents under section 5307 of title 49, United 
States Code, and shall be administered as if 
such funds were provided under section 5307 of 
such title. 
(B) ALLOCATION.—Amounts made avail-
able under subparagraph (A) shall be appor-
tioned to urbanized areas based on data con-
tained in the National Transit Database such 
that— 
(i) each urbanized area shall receive 
an apportionment of an amount that, when 
combined with amounts that were other-
wise made available to such urbanized area
340 
for similar activities to prevent, prepare 
for, and respond to coronavirus, is equal to 
132 percent of the urbanized area’s 2018 
operating costs; and 
(ii) for funds remaining after the ap-
portionment described in clause (i), such 
funds shall be apportioned such that— 
(I) each urbanized area that did 
not receive an apportionment under 
clause (i) shall receive an apportion-
ment equal to 25 percent of the ur-
banized area’s 2018 operating costs; 
and 
(II) each urbanized area under 
clause (i), when the amounts that 
were otherwise made available, prior 
to clause (i) to that urbanized area 
for similar activities to prevent, pre-
pare for, and respond to coronavirus 
are equal to or greater than 130 per-
cent of the urbanized area’s 2018 op-
erating costs but do not exceed 132 
percent of such costs, such urbanized 
area shall receive an apportionment 
equal to 10 percent of the urbanized
341 
area’s 2018 operating costs, in addi-
tion to amounts apportioned to the 
urbanized area under clause (i). 
(2) FORMULA
GRANTS
FOR
THE
ENHANCED 
MOBILITY OF SENIORS AND INDIVIDUALS WITH DIS-
ABILITIES.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a), $50,000,000 
shall be for grants to recipients or subrecipients 
eligible under section 5310 of title 49, United 
States Code, and shall be apportioned in ac-
cordance with such section. 
(B) ALLOCATION RATIO.—Amounts made 
available under subparagraph (A) shall be allo-
cated in the same ratio as funds were provided 
under section 5310 of title 49, United States 
Code, for fiscal year 2020. 
(3) FORMULA GRANTS FOR RURAL AREAS.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a), $317,214,013 
shall be for grants to recipients or subrecipients 
eligible under section 5311 of title 49, United 
States Code, and shall be administered as if the 
funds were provided under section 5311 of such 
title, and shall be apportioned in accordance
342 
with such section, except as described in para-
graph (B). 
(B) ALLOCATION RATIO.—Amounts made 
available under subparagraph (A) to States, as 
defined in section 5302 of title 49, United 
States Code, shall be allocated to such States 
based on data contained in the National Transit 
Database, such that— 
(i) any State that received an amount 
for similar activities to prevent, prepare 
for, and respond to coronavirus that is 
equal to or greater than 150 percent of the 
combined 2018 rural operating costs of the 
recipients and subrecipients in such State 
shall receive an amount equal to 5 percent 
of such State’s 2018 rural operating costs; 
(ii) any State that does not receive an 
allocation under clause (i) that received an 
amount for similar activities to prevent, 
prepare for, and respond to coronavirus 
that is equal to or greater than 140 per-
cent of the combined 2018 rural operating 
costs of the recipients and subrecipients in 
that State shall receive an amount equal to
343 
10 percent of such State’s 2018 rural op-
erating costs; and 
(iii) any State that does not receive an 
allocation under clauses (i) or (ii) shall re-
ceive an amount equal to 20 percent of 
such State’s 2018 rural operating costs. 
(4) CAPITAL INVESTMENTS.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a)— 
(i) $1,425,000,000 shall be for grants 
administered under subsections (d) and (e) 
of section 5309 of title 49, United States 
Code, and section 3005(b) of the FAST 
Act (Public Law 114–94); and 
(ii) $250,000,000 shall be for grants 
administered under subsection (h) of sec-
tion 5309 of title 49, United States Code. 
(B) FUNDING DISTRIBUTION.— 
(i) IN
GENERAL.—Of the amounts 
made available in subparagraph (A)(i), 
$1,250,000,000 shall be provided to each 
recipient for all projects with existing full 
funding grant agreements that received al-
locations for fiscal year 2019 or 2020 and 
all projects under section 3005(b) of Pub-
344 
lic Law 114–94 that received allocations 
for fiscal year 2019 or 2020, except that 
recipients with projects open for revenue 
service are not eligible to receive a grant 
under this subparagraph. Funds shall be 
provided proportionally based on the non- 
capital investment grant or non-expedited 
project delivery share of the amount allo-
cated. 
(ii) ALLOCATION.—Of the amounts 
made available in subparagraph (A)(i), 
$175,000,000 shall be provided to each re-
cipient for all projects with existing full 
funding grant agreements that received an 
allocation only prior to fiscal year 2019, 
except that projects open for revenue serv-
ice are not eligible to receive a grant under 
this subparagraph and no project may re-
ceive more than 40 percent of the amounts 
provided under this clause. The Adminis-
trator of the Federal Transit Administra-
tion shall proportionally distribute funds in 
excess of such percent to recipients for 
which the percent of funds does not exceed 
40 percent. Funds shall be provided pro-
345 
portionally based on the non-capital invest-
ment grant share of the amount allocated. 
(iii) 
ELIGIBLE
RECIPIENTS.—For 
amounts made available in subparagraph 
(A)(ii), eligible recipients shall be any re-
cipient of an allocation under subsection 
(h) of section 5309 of title 49, United 
States Code, or an applicant in the project 
development phase described in paragraph 
(2) of such subsection. 
(iv) AMOUNT.—Amounts distributed 
under clauses (i), (ii), and (iii) of subpara-
graph (A) shall be provided notwith-
standing the limitation of any calculation 
of the maximum amount of Federal finan-
cial assistance for the project under sub-
section (k)(2)(C)(ii) or (h)(7) of section 
5309 of title 49, United States Code, or 
section 3005(b)(9) of the FAST Act (Pub-
lic Law 114–94). 
(5) SECTION 5311(F) SERVICES.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a) and in addition 
to the amounts made available under paragraph 
(3), $100,000,000 shall be available for grants
346 
to recipients for bus operators that partner with 
recipients or subrecipients of funds under sec-
tion 5311(f) of title 49, United States Code. 
(B) ALLOCATION RATIO.—Notwithstanding 
paragraph (3), the Administrator of the Federal 
Transit Administration shall allocate amounts 
under subparagraph (A) in the same ratio as 
funds were provided under section 5311 of title 
49, United States Code, for fiscal year 2020. 
(C) EXCEPTION.—If a State or territory 
does not have bus providers eligible under sec-
tion 5311(f) of title 49, United States Code, 
funds under this paragraph may be used by 
such State or territory for any expense eligible 
under section 5311 of title 49, United States 
Code. 
(6) PLANNING.— 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a), $25,000,000 
shall be for grants to recipients eligible under 
section 5307 of title 49, United States Code, 
for the planning of public transportation associ-
ated with the restoration of services as the 
coronavirus public health emergency concludes
347 
and shall be available in accordance with such 
section. 
(B) AVAILABILITY OF FUNDS FOR ROUTE 
PLANNING.—Amounts made available under 
subparagraph (A) shall be available for route 
planning designed to— 
(i) increase ridership and reduce trav-
el times, while maintaining or expanding 
the total level of vehicle revenue miles of 
service provided in the planning period; or 
(ii) make service adjustments to in-
crease the quality or frequency of service 
provided to low-income riders and dis-
advantaged neighborhoods or communities. 
(C) LIMITATION.—Amounts made available 
under subparagraph (A) shall not be used for 
route planning related to transitioning public 
transportation service provided as of the date of 
receipt of funds to a transportation network 
company or other third-party contract provider, 
unless the existing provider of public transpor-
tation service is a third-party contract provider. 
(7) RECIPIENTS AND SUBRECIPIENTS REQUIR-
ING ADDITIONAL ASSISTANCE.—
348 
(A) IN GENERAL.—Of the amounts made 
available under subsection (a), $2,207,561,294 
shall be for grants to eligible recipients or sub-
recipients of funds under sections 5307 or 5311 
of title 49, United States Code, that, as a result 
of COVID–19, require additional assistance for 
costs related to operations, personnel, cleaning, 
and sanitization combating the spread of patho-
gens on transit systems, and debt service pay-
ments incurred to maintain operations and 
avoid layoffs and furloughs. 
(B) ADMINISTRATION.—Funds made avail-
able under subparagraph (A) shall, after alloca-
tion, be administered as if provided under para-
graph (1) or (3), as applicable. 
(C) APPLICATION REQUIREMENTS.— 
(i) IN GENERAL.—The Administrator 
of the Federal Transit Administration may 
not allocate funds to an eligible recipient 
or subrecipient of funds under chapter 53 
of title 49, United States Code, unless the 
recipient provides to the Administrator— 
(I) estimates of financial need;
350 
(I) IN
GENERAL.—Applications 
for assistance under this paragraph 
shall be evaluated by the Adminis-
trator of the Federal Transit Admin-
istration based on the level of finan-
cial need demonstrated by an eligible 
recipient or subrecipient, including 
projections of future financial need to 
maintain service as a percentage of 
the 2018 operating costs that has not 
been replaced by the funds made 
available to the eligible recipient or 
subrecipient under paragraphs (1) 
through (5) of this subsection when 
combined with the amounts allocated 
to such eligible recipient or sub-
recipient from funds previously made 
available for the operating expenses of 
transit agencies related to the re-
sponse to the COVID–19 public 
health emergency. 
(II) 
RESTRICTION.—Amounts 
made available under this paragraph 
shall only be available for operating 
expenses.
351 
(iv) STATE
APPLICANTS.—A State 
may apply for assistance under this para-
graph on behalf of an eligible recipient or 
subrecipient or a group of eligible recipi-
ents or subrecipients. 
(D) UNOBLIGATED
FUNDS.—If amounts 
made available under this paragraph remain 
unobligated on September 30, 2023, such 
amounts shall be available for any purpose eligi-
ble under sections 5307 or 5311 of title 49, 
United States Code. 
SEC. 7007. RELIEF FOR AIRPORTS. 
(a) IN GENERAL.— 
(1) IN GENERAL.—In addition to amounts oth-
erwise available, there is appropriated for fiscal year 
2021, out of any funds in the Treasury not other-
wise appropriated, $8,000,000,000, to remain avail-
able until September 30, 2024, for assistance to air-
ports under sections 47101 through 47144 of title 
49, United States Code, to be made available to pre-
vent, prepare for, and respond to coronavirus. 
(2) 
REQUIREMENTS
AND
LIMITATIONS.— 
Amounts made available under this section— 
(A) may not be used for any purpose not 
directly related to the airport; and
352 
(B) may not be provided to any airport 
that was allocated in excess of 4 years of oper-
ating funds to prevent, prepare for, and re-
spond to coronavirus in fiscal year 2020. 
(b) ALLOCATIONS.—The following terms shall apply 
to the amounts made available under this section: 
(1) OPERATING EXPENSES AND DEBT SERVICE 
PAYMENTS.— 
(A) 
IN
GENERAL.—Not 
more 
than 
$6,492,000,000 shall be made available for pri-
mary airports, as such term is defined in sec-
tion 47102 of title 49, United States Code, and 
certain cargo airports, for costs related to oper-
ations, personnel, cleaning, sanitization, jani-
torial services, combating the spread of patho-
gens at the airport, and debt service payments. 
(B) 
DISTRIBUTION.— 
Amounts 
made 
available under this paragraph— 
(i) shall not be subject to the reduced 
apportionments under section 47114(f) of 
title 49, United States Code; 
(ii) shall first be apportioned as set 
forth 
in 
sections 
47114(c)(1)(A), 
47114(c)(1)(C)(i), 
47114(c)(1)(C)(ii), 
47114(c)(2)(A), 
47114(c)(2)(B), 
and
353 
47114(c)(2)(E) of title 49, United States 
Code; and 
(iii) shall not be subject to a max-
imum apportionment limit set forth in sec-
tion 47114(c)(1)(B) of title 49, United 
States Code. 
(C) REMAINING
AMOUNTS.—Any amount 
remaining after distribution under subpara-
graph (B) shall be distributed to the sponsor of 
each primary airport (as such term is defined 
in section 47102 of title 49, United States 
Code) based on each such primary airport’s 
passenger enplanements compared to the total 
passenger enplanements of all such primary air-
ports in calendar year 2019. 
(2) FEDERAL
SHARE
FOR
DEVELOPMENT 
PROJECTS.— 
(A) 
IN
GENERAL.—Not 
more 
than 
$608,000,000 allocated under subsection (a)(1) 
shall be available to pay a Federal share of 100 
percent of the costs for any grant awarded in 
fiscal year 2021, or in fiscal year 2020 with less 
than a 100-percent Federal share, for an air-
port development project (as such term is de-
fined in section 47102 of title 49).
354 
(B) REMAINING AMOUNTS.—Any amount 
remaining under this paragraph shall be distrib-
uted as described in paragraph (1)(C). 
(3) NONPRIMARY AIRPORTS.— 
(A) 
IN
GENERAL.—Not 
more 
than 
$100,000,000 shall be made available for gen-
eral aviation and commercial service airports 
that are not primary airports (as such terms 
are defined in section 47102 of title 49, United 
States Code) for costs related to operations, 
personnel, cleaning, sanitization, janitorial serv-
ices, combating the spread of pathogens at the 
airport, and debt service payments. 
(B) DISTRIBUTION.—Amounts made avail-
able under this paragraph shall be apportioned 
to each non-primary airport based on the cat-
egories published in the most current National 
Plan of Integrated Airport Systems, reflecting 
the percentage of the aggregate published eligi-
ble development costs for each such category, 
and then dividing the allocated funds evenly 
among the eligible airports in each category, 
rounding up to the nearest thousand dollars.
355 
(C) REMAINING
AMOUNTS.—Any amount 
remaining under this paragraph shall be distrib-
uted as described in paragraph (1)(C). 
(4) AIRPORT CONCESSIONS.— 
(A) 
IN
GENERAL.—Not 
more 
than 
$800,000,000 shall be made available for spon-
sors of primary airports to provide relief from 
rent and minimum annual guarantees to airport 
concessions, of which at least $640,000,000 
shall be available to provide relief to eligible 
small airport concessions and of which at least 
$160,000,000 shall be available to provide relief 
to eligible large airport concessions located at 
primary airports. 
(B) DISTRIBUTION.—The amounts made 
available for each set-aside in this paragraph 
shall be distributed to the sponsor of each pri-
mary airport (as such term is defined in section 
47102 of title 49, United States Code) based on 
each 
such 
primary 
airport’s 
passenger 
enplanements compared to the total passenger 
enplanements of all such primary airports in 
calendar year 2019. 
(C) CONDITIONS.—As a condition of ap-
proving a grant under this paragraph—
356 
(i) the sponsor shall provide such re-
lief from the date of enactment of this Act 
until the sponsor has provided relief equal-
ing the total grant amount, to the extent 
practicable and to the extent permissible 
under State laws, local laws, and applicable 
trust indentures; and 
(ii) for each set-aside, the sponsor 
shall provide relief from rent and minimum 
annual guarantee obligations to each eligi-
ble airport concession in an amount that 
reflects each eligible airport concession’s 
proportional share of the total amount of 
the rent and minimum annual guarantees 
of those eligible airport concessions at such 
airport. 
(c) ADMINISTRATION.— 
(1) ADMINISTRATIVE EXPENSES.—The Admin-
istrator of the Federal Aviation Administration may 
retain up to 0.1 percent of the funds provided under 
this section to fund the award of, and oversight by 
the Administrator of, grants made under this sec-
tion. 
(2) 
WORKFORCE
RETENTION
REQUIRE-
MENTS.—
357 
(A) REQUIRED RETENTION.—As a condi-
tion for receiving funds provided under this sec-
tion, an airport shall continue to employ, 
through September 30, 2021, at least 90 per-
cent of the number of individuals employed 
(after making adjustments for retirements or 
voluntary employee separations) by the airport 
as of March 27, 2020. 
(B) WAIVER
OF
RETENTION
REQUIRE-
MENT.—The Secretary shall waive the work-
force retention requirement if the Secretary de-
termines that— 
(i) the airport is experiencing eco-
nomic hardship as a direct result of the re-
quirement; or 
(ii) the requirement reduces aviation 
safety or security. 
(C) EXCEPTION.—The workforce retention 
requirement shall not apply to nonhub airports 
or nonprimary airports receiving funds under 
this section. 
(D) NONCOMPLIANCE.—Any financial as-
sistance provided under this section to an air-
port that fails to comply with the workforce re-
tention requirement described in subparagraph
359 
to as the ‘‘Fund’’), to be administered by the Adminis-
trator of the Federal Aviation Administration, for the pur-
poses set forth in subsection (b). In addition to amounts 
otherwise available, there is appropriated for fiscal year 
2021, out of any money in the Treasury not otherwise ap-
propriated, $9,000,000, which shall be deposited into the 
Fund and remain available through September 30, 2022. 
(b) PURPOSE.—Amounts in the Fund shall be avail-
able to the Administrator for the use of paid leave under 
this section by any employee of the Administration who 
is unable to work because the employee— 
(1) is subject to a Federal, State, or local quar-
antine or isolation order related to COVID–19; 
(2) has been advised by a health care provider 
to self-quarantine due to concerns related to 
COVID–19; 
(3) is caring for an individual who is subject to 
such an order or has been so advised; 
(4) is experiencing symptoms of COVID–19 
and seeking a medical diagnosis; 
(5) is caring for a son or daughter of such em-
ployee if the school or place of care of the son or 
daughter has been closed, if the school of such son 
or daughter requires or makes optional a virtual 
learning instruction model or requires or makes op-
360 
tional a hybrid of in-person and virtual learning in-
struction models, or the child care provider of such 
son or daughter is unavailable, due to COVID–19 
precautions; 
(6) is experiencing any other substantially simi-
lar condition; 
(7) is caring for a family member with a mental 
or physical disability or who is 55 years of age or 
older and incapable of self-care, without regard to 
whether another individual other than the employee 
is available to care for such family member, if the 
place of care for such family member is closed or the 
direct care provider is unavailable due to COVID– 
19; or 
(8) is obtaining immunization related to 
COVID–19 or to recover from any injury, disability, 
illness, or condition related to such immunization. 
(c) LIMITATIONS.— 
(1) PERIOD
OF
AVAILABILITY.—Paid leave 
under this section may only be provided to and used 
by an employee of the Administration during the pe-
riod beginning on the date of enactment of this sec-
tion and ending on September 30, 2021. 
(2) TOTAL HOURS; AMOUNT.—Paid leave under 
this section—
361 
(A) shall be provided to an employee of the 
Administration in an amount not to exceed 600 
hours of paid leave for each full-time employee, 
and in the case of a part-time employee, em-
ployee on an uncommon tour of duty, or em-
ployee with a seasonal work schedule, in an 
amount not to exceed the proportional equiva-
lent of 600 hours to the extent amounts in the 
Fund remain available for reimbursement; 
(B) shall be paid at the same hourly rate 
as other leave payments; and 
(C) may not be provided to an employee if 
the leave would result in payments greater than 
$2,800 in aggregate for any biweekly pay pe-
riod for a full-time employee, or a proportion-
ally equivalent biweekly limit for a part-time 
employee. 
(3) RELATIONSHIP
TO
OTHER
LEAVE.—Paid 
leave under this section— 
(A) is in addition to any other leave pro-
vided to an employee of the Administration; and 
(B) may not be used by an employee of the 
Administration concurrently with any other 
paid leave.
362 
(4) CALCULATION OF RETIREMENT BENEFIT.— 
Any paid leave provided to an employee of the Ad-
ministration under this section shall reduce the total 
service used to calculate any Federal retirement ben-
efit. 
Subtitle B—Aviation 
Manufacturing Jobs Protection 
SEC. 7101. DEFINITIONS. 
In this subtitle: 
(1) ELIGIBLE
EMPLOYEE
GROUP.—The term 
‘‘eligible employee group’’ means the portion of an 
employer’s United States workforce that— 
(A) does not exceed 25 percent of the em-
ployer’s total United States workforce as of 
April 1, 2020; and 
(B) contains only employees with a total 
compensation level of $200,000 or less per year; 
and 
(C) is engaged in aviation manufacturing 
activities and services, or maintenance, repair, 
and overhaul activities and services. 
(2) AVIATION
MANUFACTURING
COMPANY.— 
The term ‘‘aviation manufacturing company’’ means 
a corporation, firm, or other business entity— 
(A) that—
363 
(i) actively manufactures an aircraft, 
aircraft engine, propeller, or a component, 
part, or systems of an aircraft or aircraft 
engine under a Federal Aviation Adminis-
tration production approval; or 
(ii) holds a certificate issued under 
part 145 of title 14, Code of Federal Regu-
lations, for maintenance, repair, and over-
haul of aircraft, aircraft engines, compo-
nents, or propellers. 
(B) which— 
(i) is established, created, or orga-
nized in the United States or under the 
laws of the United States; and 
(ii) has significant operations in, and 
a majority of its employees engaged in 
aviation manufacturing activities and serv-
ices, or maintenance, repair, and overhaul 
activities and services based in the United 
States; 
(C) which has involuntarily furloughed or 
laid off at least 10 percent of its workforce in 
2020 as compared to 2019 or has experienced 
at least a 15 percent decline in 2020 revenues 
as compared to 2019;
364 
(D) that, as supported by sworn financial 
statements or other appropriate data, has iden-
tified the eligible employee group and the 
amount of total compensation level for the eligi-
ble employee group; 
(E) that agrees to provide private con-
tributions and maintain the total compensation 
level for the eligible employee group for the du-
ration of an agreement under this subtitle; 
(F) that agrees to provide immediate no-
tice and justification to the Secretary of invol-
untary furloughs or layoffs exceeding 10 per-
cent of the workforce that is not included in an 
eligible employee group for the duration of an 
agreement and receipt of public contributions 
under this subtitle; 
(G) that has not conducted involuntary 
furloughs or reduced pay rates or benefits for 
the eligible employee group, subject to the em-
ployer’s right to discipline or terminate an em-
ployee in accordance with employer policy, be-
tween the date of application and the date on 
which such a corporation, firm, or other busi-
ness entity enters into an agreement with the 
Secretary under this subtitle; and
365 
(H) that— 
(i) in the case of a corporation, firm, 
or other business entity including any par-
ent company or subsidiary of such a cor-
poration, firm, or other business entity, 
that holds any type or production certifi-
cate or similar authorization issued under 
section 44704 of title 49, United States 
Code, with respect to a transport-category 
airplane covered under part 25 of title 14, 
Code of Federal Regulations, certificated 
with a passenger seating capacity of 50 or 
more, agrees to refrain from conducting in-
voluntary layoffs or furloughs, or reducing 
pay rates and benefits, for the eligible em-
ployee group, subject to the employer’s 
right to discipline or terminate an em-
ployee in accordance with employer policy 
from the date of agreement until Sep-
tember 30, 2021, or the duration of the 
agreement and receipt of public contribu-
tions under this subtitle, whichever period 
ends later; or 
(ii) in the case of corporation, firm, or 
other business entity not specified under
366 
subparagraph (i), agrees to refrain from 
conducting involuntary layoffs or fur-
loughs, or reducing pay rates and benefits, 
for the eligible employee group, subject to 
the employer’s right to discipline or termi-
nate an employee in accordance with em-
ployer policy for the duration of the agree-
ment and receipt of public contributions 
under this subtitle. 
(3) EMPLOYEE.—The term ‘‘employee’’ has the 
meaning given that term in section 3 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203). 
(4) EMPLOYER.—The term ‘‘employer’’ means 
an aviation manufacturing company that is an em-
ployer (as defined in section 3 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203)). 
(5) PRIVATE CONTRIBUTION.—The term ‘‘pri-
vate contribution’’ means the contribution funded by 
the employer under this subtitle to maintain 50 per-
cent of the eligible employee group’s total compensa-
tion level, and combined with the public contribu-
tion, is sufficient to maintain the total compensation 
level for the eligible employee group as of April 1, 
2020.
367 
(6) PUBLIC CONTRIBUTION.—The term ‘‘public 
contribution’’ means the contribution funded by the 
Federal Government under this title to provide 50 
percent of the eligible employees group’s total com-
pensation level, and combined with the private con-
tribution, is sufficient to maintain the total com-
pensation level for those in the eligible employee 
group as of April 1, 2020. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(8) TOTAL COMPENSATION LEVEL.—The term 
‘‘total compensation level’’ means the level of total 
base compensation and benefits being provided to an 
eligible employee group employee, excluding overtime 
and premium pay, and excluding any Federal, State, 
or local payroll taxes paid, as of April 1, 2020. 
SEC. 7102. PAYROLL SUPPORT PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
payroll support program and enter into agreements with 
employers who meet the eligibility criteria specified in sub-
section (b) and are not ineligible under subsection (c), to 
provide public contributions to supplement compensation 
of an eligible employee group. There is appropriated for 
fiscal year 2021, out of amounts in the Treasury not oth-
erwise appropriated, $3,000,000,000, to remain available
368 
until September 30, 2023, for the Secretary to carry out 
the payroll support program authorized under the pre-
ceding sentence for which 1 percent of the funds may be 
used for implementation costs and administrative ex-
penses. 
(b) ELIGIBILITY.—The Secretary shall enter into an 
agreement and provide public contributions, for a term no 
longer than 6 months, solely with an employer that agrees 
to use the funds received under an agreement exclusively 
for the continuation of employee wages, salaries, and bene-
fits, to maintain the total compensation level for the eligi-
ble employee group as of April 1, 2020 for the duration 
of the agreement, and to facilitate the retention, rehire, 
or recall of employees of the employer, except that such 
funds may not be used for back pay of returning rehired 
or recalled employees. 
(c) INELIGIBILITY.—The Secretary may not enter 
into any agreement under this section with an employer 
who was allowed a credit under section 2301 of the 
CARES Act (26 U.S.C. 3111 note) for the immediately 
preceding calendar quarter ending before such agreement 
is entered into, who received financial assistance under 
section 4113 of the CARES Act (15 U.S.C. 9073), or who 
is currently expending financial assistance under the pay-
check protection program established under section
369 
7(a)(36) of the Small Business Act (15 U.S.C. 
636(a)(36)), as of the date the employer submits an appli-
cation under the payroll support program established 
under subsection (a). 
(d) REDUCTIONS.—To address any shortfall in assist-
ance that would otherwise be provided under this subtitle, 
the Secretary shall reduce, on a pro rata basis, the finan-
cial assistance provided under this subtitle. 
(e) AGREEMENT DEADLINE.—No agreement may be 
entered into by the Secretary under the payroll support 
program established under subsection (a) after the last 
day of the 6 month period that begins on the effective 
date of the first agreement entered into under such pro-
gram. 
Subtitle C—Continued Assistance 
to Rail Workers 
SEC. 7201. ADDITIONAL ENHANCED BENEFITS UNDER THE 
RAILROAD UNEMPLOYMENT INSURANCE ACT. 
(a) IN GENERAL.—Section 2(a)(5)(A) of the Railroad 
Unemployment Insurance Act (45 U.S.C. 352(a)(5)(A)) is 
amended— 
(1) in the first sentence— 
(A) by striking ‘‘March 14, 2021’’ and in-
serting ‘‘August 29, 2021’’;
370 
(B) by striking ‘‘or July 1, 2020’’ and in-
serting ‘‘July 1, 2020, or July 1, 2021’’; and 
(2) by adding at the end the following: ‘‘For 
registration periods beginning after March 14, 2021, 
but on or before August 29, 2021, the recovery ben-
efit payable under this subparagraph shall be in the 
amount of $800.’’. 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under subparagraph (B) of 
section 2(a)(5) of the Railroad Unemployment Insurance 
Act (45 U.S.C. 352(a)(5)) shall be available to cover the 
cost of recovery benefits provided under such section 
2(a)(5) by reason of the amendments made by subsection 
(a) as well as to cover the cost of such benefits provided 
under such section 2(a)(5) as in effect on the day before 
the date of enactment of this Act. 
SEC. 7202. EXTENDED UNEMPLOYMENT BENEFITS UNDER 
THE RAILROAD UNEMPLOYMENT INSURANCE 
ACT. 
(a) IN GENERAL.—Section 2(c)(2)(D) of the Rail-
road 
Unemployment 
Insurance 
Act 
(45 
U.S.C. 
352(c)(2)(D)) is amended— 
(1) in clause (i)— 
(A) in subclause (I), by striking ‘‘185 
days’’ and inserting ‘‘305 days’’;
371 
(B) in subclause (II), 
(i) by striking ‘‘19 consecutive 14-day 
periods’’ and inserting ‘‘31 consecutive 14- 
day periods’’; and 
(ii) by striking ‘‘6 consecutive 14-day 
periods’’ and inserting ‘‘18 consecutive 14- 
day periods’’; 
(2) in clause (ii)— 
(A) by striking ‘‘120 days of unemploy-
ment’’ and inserting ‘‘240 days of unemploy-
ment’’; 
(B) by striking ‘‘12 consecutive 14-day pe-
riods’’ and inserting ‘‘24 consecutive 14-day pe-
riods’’; and 
(C) by striking ‘‘6 consecutive 14-day peri-
ods’’ and inserting ‘‘18 consecutive 14-day peri-
ods’’; and 
(3) in clause (iii)— 
(A) by striking ‘‘June 30, 2021’’ and in-
serting ‘‘June 30, 2022’’; and 
(B) by striking ‘‘the provisions of clauses 
(i) and (ii) shall not apply to any employee 
whose extended benefit period under subpara-
graph (B) begins after March 14, 2021, and 
shall not apply to any employee with respect to
372 
any registration period beginning after April 5, 
2021.’’ and inserting ‘‘the provisions of clauses 
(i) and (ii) shall not apply to any employee with 
respect to any registration period beginning 
after August 29, 2021.’’ 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under either the first or 
second sentence of clause (v) of section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act shall be available 
to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason 
of the amendments made by subsection (a) as well as to 
cover the cost of such benefits provided under such section 
2(c)(2)(D) as in effect on the day before the date of enact-
ment of this Act. 
SEC. 7203. EXTENSION OF WAIVER OF THE 7-DAY WAITING 
PERIOD FOR BENEFITS UNDER THE RAIL-
ROAD UNEMPLOYMENT INSURANCE ACT. 
(a) IN GENERAL.—Section 2112(a) of the CARES 
Act (15 U.S.C. 9030(a)) is amended by striking ‘‘March 
14, 2021’’ and inserting ‘‘August 29, 2021’’. 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under section 2112(c) of 
the CARES Act (15 U.S.C. 9030(c)) shall be available to 
cover the cost of additional benefits payable due to section
373 
2112(a) of such Act by reason of the amendments made 
by subsection (a) as well as to cover the cost of such bene-
fits payable due to such section 2112(a) as in effect on 
the day before the date of enactment of this Act. 
SEC. 7204. RAILROAD RETIREMENT BOARD AND OFFICE OF 
THE INSPECTOR GENERAL FUNDING. 
In addition to amounts otherwise made available, 
there are appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated— 
(1) $27,975,000, to remain available until ex-
pended, for the Railroad Retirement Board, to pre-
vent, prepare for, and respond to coronavirus, of 
which— 
(A) $6,800,000 shall be for additional hir-
ing and overtime bonuses as needed to admin-
ister the Railroad Unemployment Insurance 
Act; and 
(B) $21,175,000 shall be to supplement, 
not supplant, existing resources devoted to op-
erations and improvements for the Information 
Technology Investment Initiatives of the Rail-
road Retirement Board; and 
(2) $500,000, to remain available until ex-
pended, for the Railroad Retirement Board Office of
374 
Inspector General for audit, investigatory and review 
activities. 
TITLE VIII—COMMITTEE ON 
VETERANS’ AFFAIRS 
SEC. 8001. FUNDING FOR CLAIMS AND APPEALS PROC-
ESSING. 
In addition to amounts otherwise made available, 
there is appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated, 
$272,000,000, to remain available until September 30, 
2023, pursuant to sections 308, 310, 7101 through 7113, 
7701, and 7703 of title 38, United States Code. 
SEC. 8002. FUNDING AVAILABILITY FOR MEDICAL CARE 
AND HEALTH NEEDS. 
In addition to amounts otherwise made available, 
there is appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated, 
$13,482,000,000, to remain available until September 30, 
2023, for allocation under chapters 17, 20, 73, and 81 
of title 38, United States Code, of which not more than 
$4,000,000,000 shall be available pursuant to section 
1703 of title 38, United States Code for health care fur-
nished through the Veterans Community Care program in 
sections 1703(c)(1) and 1703(c)(5) of such title.
375 
SEC. 8003. FUNDING FOR SUPPLY CHAIN MODERNIZATION. 
In addition to amounts otherwise made available, 
there is appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated, 
$100,000,000, to remain available until September 30, 
2022, for the supply chain modernization initiative under 
sections 308, 310, and 7301(b) of title 38, United States 
Code. 
SEC. 8004. FUNDING FOR STATE HOMES. 
In addition to amounts otherwise made available, 
there are appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated— 
(1) $500,000,000, to remain available until ex-
pended, for allocation under sections 8131 through 
8137 of title 38, United States Code: and 
(2) $250,000,000, to remain available until 
September 30, 2022, for a one-time only obligation 
and expenditure to existing State extended care fa-
cilities for veterans in proportion to each State’s 
share of the total resident capacity in such facilities 
as of the date of enactment of this Act where such 
capacity includes only veterans on whose behalf the 
Department pays a per diem payment pursuant to 
section 1741 or 1745 of title 38, United States 
Code.
376 
SEC. 8005. FUNDING FOR THE DEPARTMENT OF VETERANS 
AFFAIRS OFFICE OF INSPECTOR GENERAL. 
In addition to amounts otherwise made available, 
there is appropriated to the Office of Inspector General 
of the Department of Veterans Affairs for fiscal year 
2021, out of any money in the Treasury not otherwise ap-
propriated, $10,000,000, to remain available until ex-
pended, for audits, investigations, and other oversight of 
projects and activities carried out with funds made avail-
able to the Department of Veterans Affairs. 
SEC. 8006. COVID–19 VETERAN RAPID RETRAINING ASSIST-
ANCE PROGRAM. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall carry out a program under which the Secretary shall 
provide up to 12 months of retraining assistance to an 
eligible veteran for the pursuit of a covered program of 
education. Such retraining assistance shall be in addition 
to any other entitlement to educational assistance or bene-
fits for which a veteran is, or has been, eligible. 
(b) ELIGIBLE VETERANS.— 
(1) IN GENERAL.—In this section, the term ‘‘el-
igible veteran’’ means a veteran who— 
(A) as of the date of the receipt by the De-
partment of Veterans Affairs of an application 
for assistance under this section, is at least 22 
years of age but not more than 66 years of age;
377 
(B) as of such date, is unemployed by rea-
son of the covered public health emergency, as 
certified by the veteran; 
(C) as of such date, is not eligible to re-
ceive educational assistance under chapter 30, 
31, 32, 33, or 35 of title 38, United States 
Code, or chapter 1606 of title 10, United States 
Code; 
(D) is not enrolled in any Federal or State 
jobs program; 
(E) is not in receipt of compensation for a 
service-connected disability rated totally dis-
abling by reason of unemployability; and 
(F) will not be in receipt of unemployment 
compensation (as defined in section 85(b) of the 
Internal Revenue Code of 1986), including any 
cash benefit received pursuant to subtitle A of 
title II of division A of the CARES Act (Public 
Law 116–136), as of the first day on which the 
veteran would receive a housing stipend pay-
ment under this section. 
(2) TREATMENT OF VETERANS WHO TRANSFER 
ENTITLEMENT.—For purposes of paragraph (1)(C), 
a veteran who has transferred all of the veteran’s 
entitlement to educational assistance under section
378 
3319 of title 38, United States Code, shall be con-
sidered to be a veteran who is not eligible to receive 
educational assistance under chapter 33 of such 
title. 
(3) FAILURE TO COMPLETE.—A veteran who 
receives retraining assistance under this section to 
pursue a program of education and who fails to com-
plete the program of education shall not be eligible 
to receive additional assistance under this section. 
(c) COVERED PROGRAMS OF EDUCATION.— 
(1) IN GENERAL.—For purposes of this section, 
a covered program of education is a program of edu-
cation (as such term is defined in section 3452(b) of 
title 38, United States Code) for training, pursued 
on a full-time or part-time basis— 
(A) that— 
(i) is approved under chapter 36 of 
such title; 
(ii) does not lead to a bachelors or 
graduate degree; and 
(iii) is designed to provide training for 
a high-demand occupation, as determined 
under paragraph (3); or 
(B) that is a high technology program of 
education offered by a qualified provider, under
379 
the meaning given such terms in section 116 of 
the Harry W. Colmery Veterans Educational 
Assistance Act of 2017 (Public Law 115–48; 38 
U.S.C. 3001 note). 
(2) ACCREDITED PROGRAMS.—In the case of an 
accredited program of education, the program of 
education shall not be considered a covered program 
of education under this section if the program has 
received a show cause order from the accreditor of 
the program during the five-year period preceding 
the date of the enactment of this Act. 
(3) DETERMINATION OF HIGH-DEMAND OCCU-
PATIONS.— 
(A) INITIAL
IMPLEMENTATION.—In car-
rying out this section, the Secretary shall use 
the list of high-demand occupations compiled by 
the Commissioner of Labor Statistics until the 
final list under subparagraph (C) is complete. 
(B) STUDY REQUIRED.—The Secretary of 
Veterans Affairs shall enter into an agreement 
with a federally funded research and develop-
ment corporation or another appropriate non- 
Department entity for the conduct of a study to 
determine which occupations are high-demand 
occupations. Such study shall be completed not
380 
later than 90 days after the date of the enact-
ment of this Act. 
(C) FINAL LIST.—The Secretary— 
(i) may add or remove occupation 
from the list in use pursuant to subpara-
graph (A) during the 90-day period fol-
lowing the completion of the study required 
by subparagraph (B); 
(ii) shall issue a final list of high-de-
mand occupations for use under this sec-
tion by not later than 90 days after the 
date of the completion of the study; and 
(iii) shall make such final list publicly 
available on a website of the Department. 
(D) USE
OF
LIST.—The Secretary shall 
use the list developed under this paragraph in 
order to apply the requirement that retraining 
assistance under this section is used for train-
ing for a high-demand occupation, but the Sec-
retary may remove occupations from the list as 
the Secretary determines appropriate. 
(4) FULL-TIME
DEFINED.—For purposes of 
this subsection, the term ‘‘full-time’’ has the mean-
ing given such term under section 3688 of title 38, 
United States Code.
381 
(d) AMOUNT OF ASSISTANCE.— 
(1) RETRAINING ASSISTANCE.—The Secretary 
of Veterans Affairs shall provide to an eligible vet-
eran pursuing a covered program of education under 
the retraining assistance program under this section 
an amount equal to the amount of educational as-
sistance payable under section 3313(c)(1)(A) of title 
38, United States Code, for each month the veteran 
pursues the covered program of education. Such 
amount shall be payable directly to the educational 
institution offering the covered program of education 
pursued by the veteran as follows: 
(A) 50 percent of the total amount payable 
shall be paid when the eligible veteran begins 
the program of education. 
(B) 25 percent of the total amount payable 
shall be paid when the eligible veteran com-
pletes the program of education. 
(C) 25 percent of the total amount payable 
shall be paid when the eligible veteran finds em-
ployment in a field related to the program of 
education. 
(2) FAILURE TO COMPLETE.— 
(A) PRO-RATED PAYMENTS.—In the case 
of a veteran who pursues a covered program of
382 
education under the retraining assistance pro-
gram under this section, but who does not com-
plete the program of education, the Secretary 
shall pay to the educational institution offering 
such program of education a pro-rated amount 
based on the number of months the veteran 
pursued the program of education in accordance 
with this paragraph. 
(B) PAYMENT
OTHERWISE
DUE
UPON 
COMPLETION
OF
PROGRAM.—The Secretary 
shall pay to the educational institution a pro- 
rated amount under paragraph (1)(B) when the 
veteran provides notice to the educational insti-
tution that the veteran no longer intends to 
pursue the program of education. 
(C) NONRECOVERY
FROM
VETERAN.—In 
the case of a veteran referred to in subpara-
graph (A), the educational institution may not 
seek payment from the veteran for any amount 
that would have been payable under paragraph 
(1)(B) had the veteran completed the program 
of education. 
(D) PAYMENT DUE UPON EMPLOYMENT.— 
(i) VETERANS
WHO
FIND
EMPLOY-
MENT.—In the case of a veteran referred
383 
to in subparagraph (A) who finds employ-
ment in a field related to the program of 
education during the 180-day period begin-
ning on the date on which the veteran 
withdraws from the program of education, 
the Secretary shall pay to the educational 
institution a pro-rated amount under para-
graph (1)(C) when the veteran finds such 
employment. 
(ii) VETERANS WHO DO NOT FIND EM-
PLOYMENT.—In the case of a veteran re-
ferred to in subparagraph (A) who does 
not find employment in a field related to 
the program of education during the 180- 
day period beginning on the date on which 
the veteran withdraws from the program of 
education— 
(I) the Secretary shall not make 
a payment to the educational institu-
tion under paragraph (1)(C); and 
(II) the educational institution 
may not seek payment from the vet-
eran for any amount that would have 
been payable under paragraph (1)(C)
384 
had the veteran found employment 
during such 180-day period. 
(3) HOUSING STIPEND.—For each month that 
an eligible veteran pursues a covered program of 
education under the retraining assistance program 
under this section, the Secretary shall pay to the 
veteran a monthly housing stipend in an amount 
equal to— 
(A) in the case of a covered program of 
education leading to a degree, or a covered pro-
gram of education not leading to a degree, at 
an institution of higher learning (as that term 
is defined in section 3452(f) of title 38, United 
States Code) pursued on more than a half-time 
basis, the amount specified under subsection 
(c)(1)(B) of section 3313 of title 38, United 
States Code; 
(B) in the case of a covered program of 
education other than a program of education 
leading to a degree at an institution other than 
an institution of higher learning pursued on 
more than a half-time basis, the amount speci-
fied under subsection (g)(3)(A)(ii) of such sec-
tion; or
385 
(C) in the case of a covered program of 
education pursued on less than a half-time 
basis, or a covered program of education pur-
sued solely through distance learning on more 
than a half-time basis, the amount specified 
under subsection (c)(1)(B)(iii) of such section. 
(4) FAILURE
TO
FIND
EMPLOYMENT.—The 
Secretary shall not make a payment under para-
graph (1)(C) with respect to an eligible veteran who 
completes or fails to complete a program of edu-
cation under the retraining assistance program 
under this section if the veteran fails to find employ-
ment in a field related to the program of education 
within the 180-period beginning on the date on 
which the veteran withdraws from or completes the 
program. 
(e) NO TRANSFERABILITY.—Retraining assistance 
provided under this section may not be transferred to an-
other individual. 
(f) LIMITATION.—Not more than 17,250 eligible vet-
erans may receive retraining assistance under this section. 
(g) TERMINATION.—No retraining assistance may be 
paid under this section after the date that is 21 months 
after the date of the enactment of this Act.
386 
(h) COMPTROLLER GENERAL REPORT.—Not later 
than 180 days after the termination of the retraining as-
sistance program under subsection (k), the Comptroller 
General shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives a report 
on the outcomes and effectiveness of the program. 
(i) FUNDING.—In addition to amounts otherwise 
available there is appropriated to the Department of Vet-
erans Affairs for fiscal year 2021, out of any money in 
the Treasury not otherwise appropriated, $386,000,000, 
to remain available until expended, to carry out this sec-
tion. 
SEC. 8007. PROHIBITION ON COPAYMENTS AND COST SHAR-
ING FOR VETERANS DURING EMERGENCY RE-
LATING TO COVID–19. 
(a) IN GENERAL.—The Secretary of Veterans Af-
fairs— 
(1) shall provide for any copayment or other 
cost sharing with respect to health care under the 
laws administered by the Secretary received by a 
veteran during the period specified in subsection (b); 
and 
(2) shall reimburse any veteran who paid a co-
payment or other cost sharing for health care under 
the laws administered by the Secretary received by
387 
the veteran during such period the amount paid by 
the veteran. 
(b) PERIOD SPECIFIED.—The period specified in this 
subsection is the period beginning on April 6, 2020, and 
ending on September 30, 2021. 
(c) FUNDING.—In addition to amounts otherwise 
available, there is appropriated to the Secretary of Vet-
erans Affairs for fiscal year 2021, out of any money in 
the Treasury not otherwise appropriated, $2,000,000,000, 
to remain available until expended, to carry out this sec-
tion, except for health care furnished pursuant to section 
1703(c)(2)–(c)(4) of title 38, United States Code. 
SEC. 8008. EMERGENCY DEPARTMENT OF VETERANS AF-
FAIRS EMPLOYEE LEAVE FUND. 
(a) ESTABLISHMENT; APPROPRIATION.—There is es-
tablished in the Treasury the Emergency Department of 
Veterans Affairs Employee Leave Fund (in this section 
referred to as the ‘‘Fund’’), to be administered by the Sec-
retary of Veterans Affairs, for the purposes set forth in 
subsection (b). In addition to amounts otherwise available, 
there is appropriated for fiscal year 2021, out of any 
money in the Treasury not otherwise appropriated, 
$80,000,000, which shall be deposited into the Fund and 
remain available through September 20, 2022.
388 
(b) PURPOSE.—Amounts in the Fund shall be avail-
able for payment to the Department of Veterans Affairs 
for the use of paid leave by any covered employee who 
is unable to work because the employee— 
(1) is subject to a Federal, State, or local quar-
antine or isolation order related to COVID–19; 
(2) has been advised by a health care provider 
to self-quarantine due to concerns related to 
COVID–19; 
(3) is caring for an individual who is subject to 
such an order or has been so advised; 
(4) is experiencing symptoms of COVID–19 
and seeking a medical diagnosis; 
(5) is caring for a son or daughter of such em-
ployee if the school or place of care of the son or 
daughter has been closed, if the school of such son 
or daughter requires or makes optional a virtual 
learning instruction model or requires or makes op-
tional a hybrid of in-person and virtual learning in-
struction models, or the child care provider of such 
son or daughter is unavailable, due to COVID–19 
precautions; 
(6) is experiencing any other substantially simi-
lar condition;
389 
(7) is caring for a family member with a mental 
or physical disability or who is 55 years of age or 
older and incapable of self-care, without regard to 
whether another individual other than the employee 
is available to care for such family member, if the 
place of care for such family member is closed or the 
direct care provider is unavailable due to COVID– 
19; or 
(8) is obtaining immunization related to 
COVID–19 or to recover from any injury, disability, 
illness, or condition related to such immunization. 
(c) LIMITATIONS.— 
(1) PERIOD
OF
AVAILABILITY.—Paid leave 
under this section may only be provided to and used 
by a covered employee during the period beginning 
on the date of enactment of this Act and ending on 
September 30, 2021. 
(2) TOTAL HOURS; AMOUNT.—Paid leave under 
this section— 
(A) shall be provided to a covered employee 
in an amount not to exceed 600 hours of paid 
leave for each full-time employee, and in the 
case of a part-time employee, employee on an 
uncommon tour of duty, or employee with a 
seasonal work schedule, in an amount not to ex-
390 
ceed the proportional equivalent of 600 hours to 
the extent amounts in the Fund remain avail-
able for reimbursement; 
(B) shall be paid at the same hourly rate 
as other leave payments; and 
(C) may not be provided to a covered em-
ployee if the leave would result in payments 
greater than $2,800 in aggregate for any bi-
weekly pay period for a full-time employee, or 
a proportionally equivalent biweekly limit for a 
part-time employee. 
(3) RELATIONSHIP
TO
OTHER
LEAVE.—Paid 
leave under this section— 
(A) is in addition to any other leave pro-
vided to a covered employee; and 
(B) may not be used by a covered em-
ployee concurrently with any other paid leave. 
(4) CALCULATION OF RETIREMENT BENEFIT.— 
Any paid leave provided to a covered employee under 
this section shall reduce the total service used to cal-
culate any Federal civilian retirement benefit. 
(d) COVERED EMPLOYEE DEFINED.—In this section, 
the term ‘‘covered employee’’ means an employee of the 
Department of Veterans Affairs appointed under chapter 
74 of title 38, United States Code.
391 
TITLE IX—COMMITTEE ON WAYS 
AND MEANS 
Subtitle A—Crisis Support for 
Unemployed Workers 
PART 1—EXTENSION OF CARES ACT 
UNEMPLOYMENT PROVISIONS 
SEC. 9011. EXTENSION OF PANDEMIC UNEMPLOYMENT AS-
SISTANCE. 
(a) IN GENERAL.—Section 2102(c) of the CARES 
Act (15 U.S.C. 9021(c)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘paragraphs (2) and (3)’’ 
and inserting ‘‘paragraph (2)’’; and 
(B) in subparagraph (A)(ii), by striking 
‘‘March 14, 2021’’ and inserting ‘‘August 29, 
2021’’; and 
(2) by striking paragraph (3) and redesignating 
paragraph (4) as paragraph (3). 
(b) INCREASE
IN NUMBER
OF WEEKS.—Section 
2102(c)(2) of such Act (15 U.S.C. 9021(c)(2)) is amend-
ed— 
(1) by striking ‘‘50 weeks’’ and inserting ‘‘74 
weeks’’; and 
(2) by striking ‘‘50-week period’’ and inserting 
‘‘74-week period’’.
392 
(c) HOLD HARMLESS
FOR PROPER ADMINISTRA-
TION.—In the case of an individual who is eligible to re-
ceive pandemic unemployment assistance under section 
2102 of the CARES Act (15 U.S.C. 9021) as of the day 
before the date of enactment of this Act and on the date 
of enactment of this Act becomes eligible for pandemic 
emergency unemployment compensation under section 
2107 of the CARES Act (15 U.S.C. 9025) by reason of 
the amendments made by section 9016(b) of this title, any 
payment of pandemic unemployment assistance under 
such section 2102 made after the date of enactment of 
this Act to such individual during an appropriate period 
of time, as determined by the Secretary of Labor, that 
should have been made under such section 2107 shall not 
be considered to be an overpayment of assistance under 
such section 2102, except that an individual may not re-
ceive payment for assistance under section 2102 and a 
payment for assistance under section 2107 for the same 
week of unemployment. 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply as if included in the 
enactment of the CARES Act (Public Law 116–136), ex-
cept that no amount shall be payable by virtue of such 
amendments with respect to any week of unemployment 
commencing before the date of the enactment of this Act.
393 
SEC. 9012. EXTENSION OF EMERGENCY UNEMPLOYMENT 
RELIEF FOR GOVERNMENTAL ENTITIES AND 
NONPROFIT ORGANIZATIONS. 
(a) IN GENERAL.—Section 903(i)(1)(D) of the Social 
Security Act (42 U.S.C. 1103(i)(1)(D)) is amended by 
striking ‘‘March 14, 2021’’ and inserting ‘‘August 29, 
2021’’. 
(b) INCREASE IN REIMBURSEMENT RATE.—Section 
903(i)(1)(B) of such Act (42 U.S.C. 1103(i)(1)(B)) is 
amended— 
(1) in the first sentence, by inserting ‘‘and ex-
cept as otherwise provided in this subparagraph’’ 
after ‘‘as determined by the Secretary of Labor’’; 
and 
(2) by inserting after the first sentence the fol-
lowing: ‘‘With respect to the amounts of such com-
pensation paid for weeks of unemployment beginning 
after March 31, 2021, and ending on or before Au-
gust 29, 2021, the preceding sentence shall be ap-
plied by substituting ‘75 percent’ for ‘one-half’.’’. 
SEC. 9013. EXTENSION OF FEDERAL PANDEMIC UNEMPLOY-
MENT COMPENSATION. 
(a) IN GENERAL.—Section 2104(e)(2) of the CARES 
Act (15 U.S.C. 9023(e)(2)) is amended by striking 
‘‘March 14, 2021’’ and inserting ‘‘August 29, 2021’’.
394 
(b) AMOUNT.—Section 2104(b)(3)(A) of such Act 
(15 U.S.C. 9023(b)(3)(A)) is amended by adding at the 
end the following: 
‘‘(iii) For weeks of unemployment 
ending after March 14, 2021, and ending 
on or before August 29, 2021, $400.’’. 
SEC. 9014. EXTENSION OF FULL FEDERAL FUNDING OF THE 
FIRST WEEK OF COMPENSABLE REGULAR 
UNEMPLOYMENT FOR STATES WITH NO WAIT-
ING WEEK. 
(a) IN GENERAL.—Section 2105(e)(2) of the CARES 
Act (15 U.S.C. 9024(e)(2)) is amended by striking 
‘‘March 14, 2021’’ and inserting ‘‘August 29, 2021’’. 
(b) FULL REIMBURSEMENT.—Paragraph (3) of sec-
tion 2105(c) of such Act (15 U.S.C. 9024(c)) is repealed 
and such section shall be applied to weeks of unemploy-
ment to which an agreement under section 2105 of such 
Act applies as if such paragraph had not been enacted. 
SEC. 9015. EXTENSION OF EMERGENCY STATE STAFFING 
FLEXIBILITY. 
If a State modifies its unemployment compensation 
law and policies, subject to the succeeding sentence, with 
respect to personnel standards on a merit basis on an 
emergency temporary basis as needed to respond to the 
spread of COVID-19, such modifications shall be dis-
395 
regarded for the purposes of applying section 303 of the 
Social Security Act and section 3304 of the Internal Rev-
enue Code of 1986 to such State law. Such modifications 
shall only apply through August 29, 2021, and shall be 
limited to engaging of temporary staff, rehiring of retirees 
or former employees on a non-competitive basis, and other 
temporary actions to quickly process applications and 
claims. 
SEC. 9016. EXTENSION OF PANDEMIC EMERGENCY UNEM-
PLOYMENT COMPENSATION. 
(a) IN GENERAL.—Section 2107(g) of the CARES 
Act (15 U.S.C. 9025(g)) is amended to read as follows: 
‘‘(g) APPLICABILITY.—An agreement entered into 
under this section shall apply to weeks of unemployment— 
‘‘(1) beginning after the date on which such 
agreement is entered into; and 
‘‘(2) ending on or before August 29, 2021.’’. 
(b) INCREASE
IN NUMBER
OF WEEKS.—Section 
2107(b)(2) of such Act (15 U.S.C. 9025(b)(2)) is amend-
ed by striking ‘‘24’’ and inserting ‘‘48’’. 
(c) COORDINATION OF PANDEMIC EMERGENCY UN-
EMPLOYMENT COMPENSATION WITH EXTENDED COM-
PENSATION.—Section 2107(a)(5)(B) of such Act (15 
U.S.C. 9025(a)(5)(B)) is amended by inserting ‘‘or for the 
week that includes the date of enactment of the American
396 
Rescue Plan Act of 2021 (without regard to the amend-
ments made by subsections (a) and (b) of section 9016 
of such Act)’’ after ‘‘2020)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply as if included in the enactment 
of the CARES Act (Public Law 116–136), except that no 
amount shall be payable by virtue of such amendments 
with respect to any week of unemployment commencing 
before the date of the enactment of this Act. 
SEC. 9017. EXTENSION OF TEMPORARY FINANCING OF 
SHORT-TIME COMPENSATION PAYMENTS IN 
STATES WITH PROGRAMS IN LAW. 
Section 2108(b)(2) of the CARES Act (15 U.S.C. 
9026(b)(2)) is amended by striking ‘‘March 14, 2021’’ 
and inserting ‘‘August 29, 2021’’. 
SEC. 9018. EXTENSION OF TEMPORARY FINANCING OF 
SHORT-TIME COMPENSATION AGREEMENTS 
FOR STATES WITHOUT PROGRAMS IN LAW. 
Section 2109(d)(2) of the CARES Act (15 U.S.C. 
9027(d)(2)) is amended by striking ‘‘March 14, 2021’’ 
and inserting ‘‘August 29, 2021’’.
397 
PART 2—EXTENSION OF FFCRA UNEMPLOYMENT 
PROVISIONS 
SEC. 9021. EXTENSION OF TEMPORARY ASSISTANCE FOR 
STATES WITH ADVANCES. 
Section 1202(b)(10)(A) of the Social Security Act 
(42 U.S.C. 1322(b)(10)(A)) is amended by striking 
‘‘March 14, 2021’’ and inserting ‘‘August 29, 2021’’. 
SEC. 9022. EXTENSION OF FULL FEDERAL FUNDING OF EX-
TENDED UNEMPLOYMENT COMPENSATION. 
Section 4105 of the Families First Coronavirus Re-
sponse Act (26 U.S.C. 3304 note) is amended by striking 
‘‘March 14, 2021’’ each place it appears and inserting 
‘‘August 29, 2021’’. 
PART 3—DEPARTMENT OF LABOR FUNDING FOR 
TIMELY, ACCURATE, AND EQUITABLE PAYMENT 
SEC. 9031. FUNDING FOR ADMINISTRATION. 
In addition to amounts otherwise available, there is 
appropriated to the Employment and Training Adminis-
tration of the Department of Labor for fiscal year 2021, 
out of any money in the Treasury not otherwise appro-
priated, $8,000,000, to remain available until expended, 
for necessary expenses to carry out Federal activities re-
lating to the administration of unemployment compensa-
tion programs.
398 
SEC. 9032. FUNDING FOR FRAUD PREVENTION, EQUITABLE 
ACCESS, AND TIMELY PAYMENT TO ELIGIBLE 
WORKERS. 
(a) IN GENERAL.—In addition to amounts otherwise 
available, there is appropriated to the Secretary of Labor 
for fiscal year 2021, out of any money in the Treasury 
not otherwise appropriated, $2,000,000,000, to remain 
available until expended, to detect and prevent fraud, pro-
mote equitable access, and ensure the timely payment of 
benefits with respect to unemployment insurance pro-
grams, including programs extended under this subtitle. 
(b) USE OF FUNDS.—Amounts made available under 
subsection (a) may be used— 
(1) for Federal administrative costs related to 
the purposes described in subsection (a); 
(2) for systemwide infrastructure investment 
and development related to such purposes; and 
(3) to make grants to States or territories ad-
ministering unemployment insurance programs de-
scribed in subsection (a) for such purposes, includ-
ing the establishment of procedures or the building 
of infrastructure to verify or validate identity, imple-
ment Federal guidance regarding fraud detection 
and prevention, and accelerate claims processing or 
process claims backlogs due to the pandemic.
399 
(c) RESTRICTIONS ON GRANTS TO STATES AND TER-
RITORIES.—As a condition of receiving a grant under sub-
section (b)(3), the Secretary may require that a State or 
territory receiving such a grant shall— 
(1) use such program integrity tools as the Sec-
retary may specify; and 
(2) as directed by the Secretary, conduct user 
accessibility testing on any new system developed by 
the Secretary pursuant to subsection (b)(2). 
Subtitle B—Emergency Assistance 
to Families Through Home Vis-
iting Programs 
SEC. 
9101. 
EMERGENCY 
ASSISTANCE 
TO 
FAMILIES 
THROUGH HOME VISITING PROGRAMS. 
Title V of the Social Security Act (42 U.S.C. 701- 
713) is amended by inserting after section 511 the fol-
lowing: 
‘‘SEC. 
511A. 
EMERGENCY 
ASSISTANCE 
TO 
FAMILIES 
THROUGH HOME VISITING PROGRAMS. 
‘‘(a) SUPPLEMENTAL APPROPRIATION.—In addition 
to amounts otherwise appropriated, out of any money in 
the Treasury of the United States not otherwise appro-
priated, there are appropriated to the Secretary 
$150,000,000, to remain available through September 30, 
2022, to enable eligible entities to conduct programs in
400 
accordance with section 511 and subsection (c) of this sec-
tion. 
‘‘(b) ELIGIBILITY FOR FUNDS.—To be eligible to re-
ceive funds made available by subsection (a) of this sec-
tion, an entity shall— 
‘‘(1) as of the date of the enactment of this sec-
tion, be conducting a program under section 511; 
‘‘(2) ensure the modification of grants, con-
tracts, and other agreements, as applicable, executed 
under section 511 under which the program is con-
ducted as are necessary to provide that, during the 
period that begins with the date of the enactment of 
this section and ends with the end of the 2nd suc-
ceeding fiscal year after the funds are awarded, the 
entity shall— 
‘‘(A) not reduce funding for, or staffing 
levels of, the program on account of reduced en-
rollment in the program; and 
‘‘(B) when using funds to provide emer-
gency supplies to eligible families receiving 
grant services under section 511, ensure coordi-
nation with local diaper banks to the extent 
practicable; and
401 
‘‘(3) reaffirm that, in conducting the program, 
the entity will focus on priority populations (as de-
fined in section 511(d)(4)). 
‘‘(c) USES OF FUNDS.—An entity to which funds are 
provided under this section shall use the funds— 
‘‘(1) to serve families with home visits or with 
virtual visits, that may be conducted by the use of 
electronic information and telecommunications tech-
nologies, in a service delivery model described in sec-
tion 511(d)(3)(A); 
‘‘(2) to pay hazard pay or other additional staff 
costs associated with providing home visits or ad-
ministration for programs funded under section 511; 
‘‘(3) to train home visitors employed by the en-
tity in conducting a virtual home visit and in emer-
gency preparedness and response planning for fami-
lies served, and may include training on how to safe-
ly conduct intimate partner violence screenings, and 
training on safety and planning for families served 
to support the family outcome improvements listed 
in section 511(d)(2)(B); 
‘‘(4) for the acquisition by families served by 
programs under section 511 of such technological 
means as are needed to conduct and support a vir-
tual home visit;
402 
‘‘(5) to provide emergency supplies (such as 
diapers and diapering supplies including diaper 
wipes and diaper cream, necessary to ensure that a 
child using a diaper is properly cleaned and pro-
tected from diaper rash, formula, food, water, hand 
soap and hand sanitizer) to an eligible family (as de-
fined in section 511(k)(2)); 
‘‘(6) to coordinate with and provide reimburse-
ment for supplies to diaper banks when using such 
entities to provide emergency supplies specified in 
paragraph (5); or 
‘‘(7) to provide prepaid grocery cards to an eli-
gible family (as defined in section 511(k)(2)) partici-
pating in the maternal, infant, and early childhood 
home visiting program under section 511 for the 
purpose of enabling the family to meet the emer-
gency needs of the family.’’. 
Subtitle C—Emergency Assistance 
to Children and Families 
SEC. 9201. PANDEMIC EMERGENCY ASSISTANCE. 
Section 403 of the Social Security Act (42 U.S.C. 
603) is amended by adding at the end the following: 
‘‘(c) PANDEMIC EMERGENCY ASSISTANCE.— 
‘‘(1) APPROPRIATION.—In addition to amounts 
otherwise available, there is appropriated for fiscal
403 
year 2021, out of any money in the Treasury of the 
United 
States 
not 
otherwise 
appropriated, 
$1,000,000,000, to remain available until expended, 
to carry out this subsection. 
‘‘(2) RESERVATION OF FUNDS FOR TECHNICAL 
ASSISTANCE.—Of the amount specified in paragraph 
(1), the Secretary shall reserve $2,000,000 for ad-
ministrative expenses and the provision of technical 
assistance to States and Indian tribes with respect 
to the use of funds provided under this subsection. 
‘‘(3) ALLOTMENTS.— 
‘‘(A) 50 STATES AND THE DISTRICT OF 
COLUMBIA.— 
‘‘(i) TOTAL AMOUNT TO BE ALLOT-
TED.—The Secretary shall allot a total of 
92.5 percent of the amount specified in 
paragraph (1) that is not reserved under 
paragraph (2) among the States that are 
not a territory and that are operating a 
program funded under this part, in accord-
ance with clause (ii) of this subparagraph. 
‘‘(ii) 
ALLOTMENT
FORMULA.—The 
Secretary shall allot to each such State the 
sum of the following percentages of the 
total amount described in clause (i):
404 
‘‘(I) 50 percent, multiplied by— 
‘‘(aa) the population of chil-
dren in the State, determined on 
the basis of the most recent pop-
ulation estimates as determined 
by the Bureau of the Census; di-
vided by 
‘‘(bb) the total population of 
children in the States that are 
not territories, as so determined; 
plus 
‘‘(II) 50 percent, multiplied by— 
‘‘(aa) the total amount ex-
pended by the State for basic as-
sistance, 
non-recurrent 
short 
term benefits, and emergency as-
sistance in fiscal year 2019, as 
reported by the State under sec-
tion 411; divided by 
‘‘(bb) the total amount ex-
pended by the States that are not 
territories for basic assistance, 
non-recurrent short term bene-
fits, and emergency assistance in
405 
fiscal year 2019, as so reported 
by the States. 
‘‘(B) TERRITORIES AND INDIAN TRIBES.— 
The Secretary shall allot among the territories 
and Indian tribes otherwise eligible for a grant 
under this part such portions of 7.5 percent of 
the amount specified in paragraph (1) that are 
not reserved under paragraph (2) as the Sec-
retary deems appropriate based on the needs of 
the territory or tribe involved. 
‘‘(C) EXPENDITURE
COMMITMENT
RE-
QUIREMENT.—To receive the full amount of 
funding payable under this subsection, a State 
or Indian tribe shall inform the Secretary as to 
whether it intends to use all of its allotment 
under this paragraph and provide that informa-
tion— 
‘‘(i) in the case of a State that is not 
a territory, within 45 days after the date 
of the enactment of this subsection; or 
‘‘(ii) in the case of a territory or an 
Indian tribe, within 90 days after such 
date of enactment. 
‘‘(4) GRANTS.—
406 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide funds to each State and Indian tribe to 
which an amount is allotted under paragraph 
(3), from the amount so allotted. 
‘‘(B) TREATMENT OF UNUSED FUNDS.— 
‘‘(i) REALLOTMENT.—The Secretary 
shall reallot in accordance with paragraph 
(3) all funds provided to any State or In-
dian tribe under this subsection that are 
unused, among the other States and In-
dian tribes eligible for funds under this 
subsection. For purposes of paragraph (3), 
the Secretary shall treat the funds as if in-
cluded in the amount specified in para-
graph (1). 
‘‘(ii) PROVISION.—The Secretary shall 
provide funds to each such other State or 
Indian tribe in an amount equal to the 
amount so reallotted. 
‘‘(5) RECIPIENT OF FUNDS PROVIDED FOR TER-
RITORIES.—In the case of a territory not operating 
a program funded under this part, the Secretary 
shall provide the funds required to be provided to 
the territory under this subsection, to the agency
408 
‘‘(ii) EXCEPTION
FOR
REALLOTTED 
FUNDS.—A State or Indian tribe to which 
funds are provided under paragraph (4)(B) 
shall expend the funds within 12 months 
after receipt. 
‘‘(7) EXPENDITURE REPORTS.—On expending 
all funds provided to a State or Indian tribe under 
this subsection, the entity shall submit to the Sec-
retary a written report that describes how the funds 
were expended, which report shall be so submitted— 
‘‘(A) if the entity is a State that is not a 
territory, within 90 days after expenditure; or 
‘‘(B) if the entity is a territory or is oper-
ating a tribal program funded under this part, 
within 120 days after expenditure. 
‘‘(8) SUSPENSION
OF
TERRITORY
SPENDING 
CAP.—Section 1108 shall not apply with respect to 
any funds provided under this subsection. 
‘‘(9) DEFINITIONS.—In this subsection: 
‘‘(A) APPLICABLE PERIOD.—The term ‘ap-
plicable period’ means the period that begins 
with April 1, 2021, and ends with September 
30, 2022. 
‘‘(B) NON-RECURRENT SHORT TERM BEN-
EFITS.—The term ‘non-recurrent short term
409 
benefits’ has the meaning given the term in 
OMB approved Form ACF-196R, published on 
July 31, 2014. 
‘‘(C) STATE.—The term ‘State’ means the 
50 States of the United States, the District of 
Columbia, and the territories. 
‘‘(D) TERRITORY.—The term ‘territory’ 
means the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern 
Mariana Islands.’’. 
Subtitle D—Elder Justice and 
Support Guarantee 
SEC. 9301. ADDITIONAL FUNDING FOR AGING AND DIS-
ABILITY SERVICES PROGRAMS. 
Subtitle A of title XX of the Social Security Act (42 
U.S.C. 1397-1397h) is amended by adding at the end the 
following: 
‘‘SEC. 2010. ADDITIONAL FUNDING FOR AGING AND DIS-
ABILITY SERVICES PROGRAMS. 
‘‘(a) APPROPRIATION.—In addition to amounts oth-
erwise available, there is appropriated for fiscal year 2021, 
out of any money in the Treasury not otherwise appro-
priated, $276,000,000, to remain available until expended, 
to carry out the programs described in subtitle B.
410 
‘‘(b) USE OF FUNDS.— 
‘‘(1) IN
GENERAL.—Of the amounts made 
available by subsection (a)— 
‘‘(A) $88,000,000 shall be made available 
to carry out the programs described in subtitle 
B in fiscal year 2021, of which not less than an 
amount equal to $100,0000,000 minus the 
amount previously provided in fiscal year 2021 
to carry out section 2042(b) shall be made 
available to carry out such section; and 
‘‘(B) $188,000,000 shall be made available 
to carry out the programs described in subtitle 
B in fiscal year 2022, of which not less than 
$100,000,000 shall be for activities described in 
section 2042(b). 
‘‘(2) 
SERVICES
FOR
ALL
ADULTS.—The 
amounts made available by subsection (a) of this 
section to carry out section 2042(b) may be used to 
provide services under programs described in section 
2042(b) for all adults, as defined by local adult pro-
tective services statutes and regulations.’’.
411 
Subtitle 
E—Support 
to 
Skilled 
Nursing Facilities in Response 
to COVID–19 
SEC. 9401. PROVIDING FOR INFECTION CONTROL SUPPORT 
TO SKILLED NURSING FACILITIES THROUGH 
CONTRACTS WITH QUALITY IMPROVEMENT 
ORGANIZATIONS. 
Section 1862(g) of the Social Security Act (42 U.S.C. 
1395y(g)) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(1) The Secretary’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) In addition to any amounts otherwise available, 
there is appropriated to the Secretary, out of any monies 
in 
the 
Treasury 
not 
otherwise 
appropriated, 
$200,000,000, to remain available until expended, for pur-
poses of carrying out infection control support (as deter-
mined appropriate by the Secretary) through the develop-
ment and dissemination of protocols relating to the pre-
vention or mitigation of COVID–19 in skilled nursing fa-
cilities (as defined in section 1819(a)).’’.
412 
SEC. 9402. FUNDING FOR STRIKE TEAMS FOR RESIDENT 
AND EMPLOYEE SAFETY IN SKILLED NURS-
ING FACILITIES. 
Section 1819 of the Social Security Act (42 U.S.C. 
1395i–3) is amended by adding at the end the following 
new subsection: 
‘‘(k) FUNDING FOR STRIKE TEAMS.—In addition to 
amounts otherwise available, there is appropriated to the 
Secretary, out of any monies in the Treasury not otherwise 
appropriated, $250,000,000, to remain available until ex-
pended, for purposes of allocating such amount among the 
States (including the District of Columbia and each terri-
tory of the United States) for such a State to establish 
and implement a strike team that will be deployed to a 
skilled nursing facility in the State with diagnosed or sus-
pected cases of COVID–19 among residents or staff for 
the purposes of assisting with clinical care, infection con-
trol, or staffing during the emergency period described in 
section 1135(g)(1)(B).’’. 
Subtitle F—Preserving Health 
Benefits for Workers 
SEC. 9501. PRESERVING HEALTH BENEFITS FOR WORKERS. 
(a) PREMIUM ASSISTANCE
FOR COBRA CONTINU-
ATION COVERAGE FOR INDIVIDUALS AND THEIR FAMI-
LIES.— 
(1) PROVISION OF PREMIUM ASSISTANCE.—
413 
(A) 
REDUCTION
OF
PREMIUMS
PAY-
ABLE.—In the case of any premium for a pe-
riod of coverage during the period beginning on 
the first day of the first month beginning after 
the date of the enactment of this Act, and end-
ing on September 30, 2021, for COBRA con-
tinuation coverage with respect to any assist-
ance eligible individual described in paragraph 
(3), such individual shall be treated for pur-
poses of any COBRA continuation provision as 
having paid the amount of such premium if 
such individual pays (or any person other than 
such individual’s employer pays on behalf of 
such individual) 15 percent of the amount of 
such premium. 
(B) PLAN ENROLLMENT OPTION.— 
(i) IN
GENERAL.—Notwithstanding 
the COBRA continuation provisions, any 
assistance eligible individual who is en-
rolled in a group health plan offered by a 
plan sponsor may, not later than 90 days 
after the date of notice of the plan enroll-
ment option described in this subpara-
graph, elect to enroll in coverage under a 
plan offered by such plan sponsor that is
414 
different than coverage under the plan in 
which such individual was enrolled at the 
time, in the case of any assistance eligible 
individual described in paragraph (3), the 
qualifying event specified in section 603(2) 
of the Employee Retirement Income Secu-
rity Act of 1974, section 4980B(f)(3)(B) 
of the Internal Revenue Code of 1986, or 
section 2203(2) of the Public Health Serv-
ice Act, except for the voluntary termi-
nation of such individual’s employment by 
such individual, occurred, and such cov-
erage shall be treated as COBRA continu-
ation coverage for purposes of the applica-
ble COBRA continuation coverage provi-
sion. 
(ii) REQUIREMENTS.—Any assistance 
eligible individual may elect to enroll in 
different coverage as described in clause (i) 
only if— 
(I) the employer involved has 
made a determination that such em-
ployer will permit such assistance eli-
gible individual to enroll in different
415 
coverage as provided under this sub-
paragraph; 
(II) the premium for such dif-
ferent coverage does not exceed the 
premium for coverage in which such 
individual was enrolled at the time 
such qualifying event occurred; 
(III) the different coverage in 
which the individual elects to enroll is 
coverage that is also offered to simi-
larly situated active employees of the 
employer at the time at which such 
election is made; and 
(IV) the different coverage in 
which the individual elects to enroll is 
not— 
(aa) coverage that provides 
only excepted benefits as defined 
in section 9832(c) of the Internal 
Revenue Code of 1986, section 
733(c) of the Employee Retire-
ment Income Security Act of 
1974, and section 2791(c) of the 
Public Health Service Act;
416 
(bb) a qualified small em-
ployer health reimbursement ar-
rangement (as defined in section 
9831(d)(2) of the Internal Rev-
enue Code of 1986); or 
(cc) a flexible spending ar-
rangement (as defined in section 
106(c)(2) of the Internal Rev-
enue Code of 1986). 
(2) LIMITATION OF PERIOD OF PREMIUM AS-
SISTANCE.— 
(A) ELIGIBILITY
FOR
ADDITIONAL
COV-
ERAGE.—Paragraph (1)(A) shall not apply with 
respect to any assistance eligible individual de-
scribed in paragraph (3) for months of coverage 
beginning on or after the earlier of— 
(i) the first date that such individual 
is eligible for coverage under any other 
group health plan (other than coverage 
consisting of only excepted benefits (as de-
fined in section 9832(c) of the Internal 
Revenue Code of 1986, section 733(c) of 
the Employee Retirement Income Security 
Act of 1974, and section 2791(c) of the 
Public Health Service Act), coverage under
417 
a flexible spending arrangement (as de-
fined in section 106(c)(2) of the Internal 
Revenue Code of 1986), coverage under a 
qualified small employer health reimburse-
ment arrangement (as defined in section 
9831(d)(2) of the Internal Revenue Code 
of 1986)), or eligible for benefits under the 
Medicare program under title XVIII of the 
Social Security Act; or 
(ii) the earlier of— 
(I) the date following the expira-
tion of the maximum period of con-
tinuation coverage required under the 
applicable COBRA continuation cov-
erage provision; or 
(II) the date following the expira-
tion of the period of continuation cov-
erage 
allowed 
under 
paragraph 
(4)(B)(ii). 
(B) NOTIFICATION
REQUIREMENT.—Any 
assistance eligible individual shall notify the 
group health plan with respect to which para-
graph (1)(A) applies if such paragraph ceases 
to apply by reason of clause (i) of subparagraph 
(A) (as applicable). Such notice shall be pro-
418 
vided to the group health plan in such time and 
manner as may be specified by the Secretary of 
Labor. 
(3) ASSISTANCE
ELIGIBLE
INDIVIDUAL.—For 
purposes of this section, the term ‘‘assistance eligible 
individual’’ means, with respect to a period of cov-
erage during the period beginning on the first day 
of the first month beginning after the date of the en-
actment of this Act, and ending on September 30, 
2021, any individual that is a qualified beneficiary 
who— 
(A) is eligible for COBRA continuation 
coverage by reason of a qualifying event speci-
fied in section 603(2) of the Employee Retire-
ment Income Security Act of 1974, section 
4980B(f)(3)(B) of the Internal Revenue Code 
of 1986, or section 2203(2) of the Public 
Health Service Act, except for the voluntary 
termination of such individual’s employment by 
such individual; and 
(B) elects such coverage. 
(4) EXTENSION OF ELECTION PERIOD AND EF-
FECT ON COVERAGE.— 
(A) IN GENERAL.—For purposes of apply-
ing section 605(a) of the Employee Retirement
419 
Income 
Security 
Act 
of 
1974, 
section 
4980B(f)(5)(A) of the Internal Revenue Code 
of 1986, and section 2205(a) of the Public 
Health Service Act, in the case of— 
(i) an individual who does not have an 
election of COBRA continuation coverage 
in effect on the first day of the first month 
beginning after the date of the enactment 
of this Act but who would be an assistance 
eligible individual described in paragraph 
(3) if such election were so in effect; or 
(ii) an individual who elected COBRA 
continuation coverage and discontinued 
from such coverage before the first day of 
the first month beginning after the date of 
the enactment of this Act, 
such individual may elect the COBRA continu-
ation coverage under the COBRA continuation 
coverage provisions containing such provisions 
during the period beginning on the first day of 
the first month beginning after the date of the 
enactment of this Act and ending 60 days after 
the date on which the notification required 
under paragraph (6)(C) is provided to such in-
dividual.
420 
(B) COMMENCEMENT OF COBRA CONTINU-
ATION COVERAGE.—Any COBRA continuation 
coverage elected by a qualified beneficiary dur-
ing an extended election period under subpara-
graph (A)— 
(i) shall commence (including for pur-
poses of applying the treatment of pre-
mium payments under paragraph (1)(A) 
and any cost-sharing requirements for 
items and services under a group health 
plan) with the first period of coverage be-
ginning on or after the first day of the 
first month beginning after the date of the 
enactment of this Act, and 
(ii) shall not extend beyond the period 
of COBRA continuation coverage that 
would have been required under the appli-
cable COBRA continuation coverage provi-
sion if the coverage had been elected as re-
quired under such provision. 
(5) NOTICES TO INDIVIDUALS.— 
(A) GENERAL NOTICE.— 
(i) IN GENERAL.—In the case of no-
tices provided under section 606(a)(4) of 
the Employee Retirement Income Security
421 
Act of 1974 (29 U.S.C. 1166(4)), section 
4980B(f)(6)(D) of the Internal Revenue 
Code of 1986, or section 2206(4) of the 
Public Health Service Act (42 U.S.C. 
300bb–6(4)), with respect to individuals 
who, during the period described in para-
graph (3), become entitled to elect COBRA 
continuation coverage, the requirements of 
such provisions shall not be treated as met 
unless such notices include an additional 
written notification to the recipient in clear 
and understandable language of— 
(I) the availability of premium 
assistance with respect to such cov-
erage under this subsection; and 
(II) the option to enroll in dif-
ferent coverage if the employer per-
mits assistance eligible individuals de-
scribed in paragraph (3) to elect en-
rollment in different coverage (as de-
scribed in paragraph (1)(B)). 
(ii) ALTERNATIVE
NOTICE.—In the 
case of COBRA continuation coverage to 
which the notice provision under such sec-
tions does not apply, the Secretary of
422 
Labor, in consultation with the Secretary 
of the Treasury and the Secretary of 
Health and Human Services, shall, in con-
sultation with administrators of the group 
health plans (or other entities) that provide 
or administer the COBRA continuation 
coverage involved, provide rules requiring 
the provision of such notice. 
(iii) FORM.—The requirement of the 
additional notification under this subpara-
graph may be met by amendment of exist-
ing notice forms or by inclusion of a sepa-
rate document with the notice otherwise 
required. 
(B) SPECIFIC REQUIREMENTS.—Each ad-
ditional notification under subparagraph (A) 
shall include— 
(i) the forms necessary for estab-
lishing eligibility for premium assistance 
under this subsection; 
(ii) the name, address, and telephone 
number necessary to contact the plan ad-
ministrator and any other person main-
taining relevant information in connection 
with such premium assistance;
423 
(iii) a description of the extended elec-
tion period provided for in paragraph 
(4)(A); 
(iv) a description of the obligation of 
the qualified beneficiary under paragraph 
(2)(B) and the penalty provided under sec-
tion 6720C of the Internal Revenue Code 
of 1986 for failure to carry out the obliga-
tion; 
(v) a description, displayed in a 
prominent manner, of the qualified bene-
ficiary’s right to a reduced premium and 
any conditions on entitlement to the re-
duced premium; and 
(vi) a description of the option of the 
qualified beneficiary to enroll in different 
coverage if the employer permits such ben-
eficiary to elect to enroll in such different 
coverage under paragraph (1)(B). 
(C) NOTICE
IN
CONNECTION
WITH
EX-
TENDED ELECTION PERIODS.—In the case of 
any assistance eligible individual described in 
paragraph (3) (or any individual described in 
paragraph (4)(A)) who became entitled to elect 
COBRA continuation coverage before the first
424 
day of the first month beginning after the date 
of the enactment of this Act, the administrator 
of the applicable group health plan (or other 
entity) shall provide (within 60 days after such 
first day of such first month) for the additional 
notification required to be provided under sub-
paragraph (A) and failure to provide such no-
tice shall be treated as a failure to meet the no-
tice requirements under the applicable COBRA 
continuation provision. 
(D) MODEL NOTICES.—Not later than 30 
days after the date of enactment of this Act, 
with respect to any assistance eligible individual 
described in paragraph (3), the Secretary of 
Labor, in consultation with the Secretary of the 
Treasury and the Secretary of Health and 
Human Services, shall prescribe models for the 
additional notification required under this para-
graph. 
(6) NOTICE
OF
EXPIRATION
OF
PERIOD
OF 
PREMIUM ASSISTANCE.— 
(A) IN GENERAL.—With respect to any as-
sistance eligible individual, subject to subpara-
graph 
(B), 
the 
requirements 
of 
section 
606(a)(4) of the Employee Retirement Income
425 
Security Act of 1974 (29 U.S.C. 1166(4)), sec-
tion 4980B(f)(6)(D) of the Internal Revenue 
Code of 1986, or section 2206(4) of the Public 
Health Service Act (42 U.S.C. 300bb–6(4)), 
shall not be treated as met unless the plan ad-
ministrator of the individual, during the period 
specified under subparagraph (C), provides to 
such individual a written notice in clear and un-
derstandable language— 
(i) that the premium assistance for 
such individual will expire soon and the 
prominent identification of the date of 
such expiration; and 
(ii) that such individual may be eligi-
ble for coverage without any premium as-
sistance through— 
(I) COBRA continuation cov-
erage; or 
(II) coverage under a group 
health plan. 
(B) EXCEPTION.—The requirement for the 
group health plan administrator to provide the 
written notice under subparagraph (A) shall be 
waived if the premium assistance for such indi-
427 
fraud and abuse under this subsection, except that 
the Secretary of Labor and the Secretary of Health 
and Human Services may prescribe such regulations 
(including interim final regulations) or other guid-
ance as may be necessary or appropriate to carry 
out the provisions of paragraphs (5), (6), and (8). 
(8) OUTREACH.— 
(A) 
IN
GENERAL.—The 
Secretary 
of 
Labor, in consultation with the Secretary of the 
Treasury and the Secretary of Health and 
Human Services, shall provide outreach con-
sisting of public education and enrollment as-
sistance relating to premium assistance pro-
vided under this subsection. Such outreach shall 
target employers, group health plan administra-
tors, public assistance programs, States, insur-
ers, and other entities as determined appro-
priate by such Secretaries. Such outreach shall 
include an initial focus on those individuals 
electing continuation coverage who are referred 
to in paragraph (5)(C). Information on such 
premium assistance, including enrollment, shall 
also be made available on websites of the De-
partments of Labor, Treasury, and Health and 
Human Services.
428 
(B) ENROLLMENT
UNDER
MEDICARE.— 
The Secretary of Health and Human Services 
shall provide outreach consisting of public edu-
cation. Such outreach shall target individuals 
who lose health insurance coverage. Such out-
reach shall include information regarding en-
rollment for Medicare benefits for purposes of 
preventing mistaken delays of such enrollment 
by such individuals, including lifetime penalties 
for failure of timely enrollment. 
(9) DEFINITIONS.—For purposes of this sec-
tion: 
(A) ADMINISTRATOR.—The term ‘‘admin-
istrator’’ has the meaning given such term in 
section 3(16)(A) of the Employee Retirement 
Income Security Act of 1974. 
(B) COBRA
CONTINUATION
COVERAGE.— 
The term ‘‘COBRA continuation coverage’’ 
means continuation coverage provided pursuant 
to part 6 of subtitle B of title I of the Em-
ployee Retirement Income Security Act of 1974 
(other than under section 609), title XXII of 
the Public Health Service Act, or section 
4980B of the Internal Revenue Code of 1986 
(other than subsection (f)(1) of such section in-
429 
sofar as it relates to pediatric vaccines), or 
under a State program that provides com-
parable continuation coverage. Such term does 
not include coverage under a health flexible 
spending arrangement under a cafeteria plan 
within the meaning of section 125 of the Inter-
nal Revenue Code of 1986. 
(C) COBRA
CONTINUATION
PROVISION.— 
The term ‘‘COBRA continuation provision’’ 
means the provisions of law described in sub-
paragraph (B). 
(D) 
COVERED
EMPLOYEE.—The 
term 
‘‘covered employee’’ has the meaning given such 
term in section 607(2) of the Employee Retire-
ment Income Security Act of 1974. 
(E) QUALIFIED BENEFICIARY.—The term 
‘‘qualified beneficiary’’ has the meaning given 
such term in section 607(3) of the Employee 
Retirement Income Security Act of 1974. 
(F) GROUP
HEALTH
PLAN.—The term 
‘‘group health plan’’ has the meaning given 
such term in section 607(1) of the Employee 
Retirement Income Security Act of 1974. 
(G) STATE.—The term ‘‘State’’ includes 
the District of Columbia, the Commonwealth of
430 
Puerto Rico, the Virgin Islands, Guam, Amer-
ican Samoa, and the Commonwealth of the 
Northern Mariana Islands. 
(H) PERIOD
OF
COVERAGE.—Any ref-
erence in this subsection to a period of coverage 
shall be treated as a reference to a monthly or 
shorter period of coverage with respect to which 
premiums are charged with respect to such cov-
erage. 
(I) PLAN
SPONSOR.—The term ‘‘plan 
sponsor’’ has the meaning given such term in 
section 3(16)(B) of the Employee Retirement 
Income Security Act of 1974. 
(J) PREMIUM.—The term ‘‘premium’’ in-
cludes, with respect to COBRA continuation 
coverage, any administrative fee. 
(10) IMPLEMENTATION FUNDING.—In addition 
to amounts otherwise made available, out of any 
funds in the Treasury not otherwise appropriated, 
there are appropriated to the Secretary of Labor for 
fiscal year 2021, $10,000,000, to remain available 
until expended, for the Employee Benefits Security 
Administration to carry out the provisions of this 
subtitle. 
(b) COBRA PREMIUM ASSISTANCE.—
431 
(1) ALLOWANCE OF CREDIT.— 
(A) IN GENERAL.—Subchapter B of chap-
ter 65 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new section: 
‘‘SEC. 6432. CONTINUATION COVERAGE PREMIUM ASSIST-
ANCE. 
‘‘(a) IN GENERAL.—The person to whom premiums 
are payable for continuation coverage under section 
9501(a)(1) of the American Rescue Plan Act of 2021 shall 
be allowed as a credit against the tax imposed by section 
3111(b), or so much of the taxes imposed under section 
3221(a) as are attributable to the rate in effect under sec-
tion 3111(b), for each calendar quarter an amount equal 
to the premiums not paid by assistance eligible individuals 
for such coverage by reason of such section 9501(a)(1) 
with respect to such calendar quarter. 
‘‘(b) PERSON TO WHOM PREMIUMS ARE PAYABLE.— 
For purposes of subsection (a), except as otherwise pro-
vided by the Secretary, the person to whom premiums are 
payable under such continuation coverage shall be treated 
as being— 
‘‘(1) in the case of any group health plan which 
is a multiemployer plan (as defined in section 3(37)
432 
of the Employee Retirement Income Security Act of 
1974), the plan, 
‘‘(2) in the case of any group health plan not 
described in paragraph (1)— 
‘‘(A) which is subject to the COBRA con-
tinuation provisions contained in— 
‘‘(i) the Internal Revenue Code of 
1986, 
‘‘(ii) the Employee Retirement Income 
Security Act of 1974, or 
‘‘(iii) the Public Health Service Act, 
or 
‘‘(B) under which some or all of the cov-
erage is not provided by insurance, 
the employer maintaining the plan, and 
‘‘(3) in the case of any group health plan not 
described in paragraph (1) or (2), the insurer pro-
viding the coverage under the group health plan. 
‘‘(c) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) CREDIT
LIMITED
TO
CERTAIN
EMPLOY-
MENT TAXES.—The credit allowed by subsection (a) 
with respect to any calendar quarter shall not exceed 
the tax imposed by section 3111(b), or so much of 
the taxes imposed under section 3221(a) as are at-
tributable to the rate in effect under section
433 
3111(b), for such calendar quarter (reduced by any 
credits allowed against such taxes under sections 
3131, 3132, and 3134) on the wages paid with re-
spect to the employment of all employees of the em-
ployer. 
‘‘(2) REFUNDABILITY OF EXCESS CREDIT.— 
‘‘(A) CREDIT
IS
REFUNDABLE.—If the 
amount of the credit under subsection (a) ex-
ceeds the limitation of paragraph (1) for any 
calendar quarter, such excess shall be treated 
as an overpayment that shall be refunded under 
sections 6402(a) and 6413(b). 
‘‘(B) CREDIT MAY BE ADVANCED.—In an-
ticipation of the credit, including the refundable 
portion under subparagraph (A), the credit may 
be advanced, according to forms and instruc-
tions provided by the Secretary, up to an 
amount calculated under subsection (a) through 
the end of the most recent payroll period in the 
quarter. 
‘‘(C) TREATMENT
OF
DEPOSITS.—The 
Secretary shall waive any penalty under section 
6656 for any failure to make a deposit of the 
tax imposed by section 3111(b), or so much of 
the taxes imposed under section 3221(a) as are
434 
attributable to the rate in effect under section 
3111(b), if the Secretary determines that such 
failure was due to the anticipation of the credit 
allowed under this section. 
‘‘(D) TREATMENT
OF
PAYMENTS.—For 
purposes of section 1324 of title 31, United 
States Code, any amounts due to an employer 
under this paragraph shall be treated in the 
same manner as a refund due from a credit 
provision referred to in subsection (b)(2) of 
such section. 
‘‘(3) OVERSTATEMENTS.—Any overstatement of 
the credit to which a person is entitled under this 
section (and any amount paid by the Secretary as a 
result of such overstatement) shall be treated as an 
underpayment by such person of the taxes described 
in paragraph (1) and may be assessed and collected 
by the Secretary in the same manner as such taxes. 
‘‘(d) GOVERNMENTAL ENTITIES.—For purposes of 
this section, the term ‘person’ includes the government of 
any State or political subdivision thereof, any Indian tribal 
government (as defined in section 139E(c)(1)), any agency 
or instrumentality of any of the foregoing, and any agency 
or instrumentality of the Government of the United States
435 
that is described in section 501(c)(1) and exempt from 
taxation under section 501(a). 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—For purposes 
of chapter 1, the gross income of any person allowed a 
credit under this section shall be increased for the taxable 
year which includes the last day of any calendar quarter 
with respect to which such credit is allowed by the amount 
of such credit. No credit shall be allowed under this sec-
tion with respect to any amount which is taken into ac-
count as qualified wages under section 2301 of the 
CARES Act or section 3134 of this title or as qualified 
health plan expenses under section 7001(d) or 7003(d) of 
the Families First Coronavirus Response Act or section 
3131 or 3132 of this title. 
‘‘(f) EXTENSION OF LIMITATION ON ASSESSMENT.— 
Notwithstanding section 6501, the limitation on the time 
period for the assessment of any amount attributable to 
a credit claimed under this section shall not expire before 
the date that is 5 years after the later of— 
‘‘(1) the date on which the original return 
which includes the calendar quarter with respect to 
which such credit is determined is filed, or 
‘‘(2) the date on which such return is treated 
as filed under section 6501(b)(2).
436 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations, or other guidance, forms, instructions, and 
publications, as may be necessary or appropriate to carry 
out this section, including— 
‘‘(1) the requirement to report information or 
the establishment of other methods for verifying the 
correct amounts of reimbursements under this sec-
tion, 
‘‘(2) the application of this section to group 
health plans that are multiemployer plans (as de-
fined in section 3(37) of the Employee Retirement 
Income Security Act of 1974), 
‘‘(3) to allow the advance payment of the credit 
determined under subsection (a), subject to the limi-
tations provided in this section, based on such infor-
mation as the Secretary shall require, 
‘‘(4) to provide for the reconciliation of such 
advance payment with the amount of the credit at 
the time of filing the return of tax for the applicable 
quarter or taxable year, and 
‘‘(5) allowing the credit to third party payors 
(including professional employer organizations, cer-
tified professional employer organizations, or agents 
under section 3504).’’.
437 
(B) CLERICAL AMENDMENT.—The table of 
sections for subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘Sec. 6432. Continuation coverage premium assistance.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to pre-
miums to which subsection (a)(1)(A) applies 
and wages paid on or after April 1, 2021. 
(D) SPECIAL RULE IN CASE OF EMPLOYEE 
PAYMENT THAT IS NOT REQUIRED UNDER THIS 
SECTION.— 
(i) IN GENERAL.—In the case of an 
assistance eligible individual who pays, 
with respect any period of coverage to 
which subsection (a)(1)(A) applies, the 
amount of the premium for such coverage 
that the individual would have (but for this 
Act) been required to pay, the person to 
whom such payment is payable shall reim-
burse such individual for the amount of 
such premium paid in excess of the 
amount required to be paid under sub-
section (a)(1)(A). 
(ii) CREDIT OF REIMBURSEMENT.—A 
person to which clause (i) applies shall be
438 
allowed a credit in the manner provided 
under section 6432 of the Internal Rev-
enue Code of 1986 for any payment made 
to the employee under such clause. 
(iii) PAYMENT
OF
CREDITS.—Any 
person to which clause (i) applies shall 
make the payment required under such 
clause to the individual not later than 60 
days after the date on which such indi-
vidual elects continuation coverage under 
subsection (a)(1). 
(2) PENALTY FOR FAILURE TO NOTIFY HEALTH 
PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM 
ASSISTANCE.— 
(A) IN GENERAL.—Part I of subchapter B 
of chapter 68 of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 
PLAN OF CESSATION OF ELIGIBILITY FOR 
CONTINUATION COVERAGE PREMIUM ASSIST-
ANCE. 
‘‘(a) IN GENERAL.—Except in the case of a failure 
described in subsection (b) or (c), any person required to 
notify a group health plan under section 9501(a)(2)(B)
439 
of the American Rescue Plan Act of 2021 who fails to 
make such a notification at such time and in such manner 
as the Secretary of Labor may require shall pay a penalty 
of $250 for each such failure. 
‘‘(b) INTENTIONAL FAILURE.—In the case of any 
such failure that is fraudulent, such person shall pay a 
penalty equal to the greater of— 
‘‘(1) $250, or 
‘‘(2) 110 percent of the premium assistance 
provided under section 9501(a)(1)(A) of the Amer-
ican Rescue Plan Act of 2021 after termination of 
eligibility under such section. 
‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 
shall be imposed under this section with respect to any 
failure if it is shown that such failure is due to reasonable 
cause and not to willful neglect.’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections of part I of subchapter B of chapter 68 
of such Code is amended by adding at the end 
the following new item: 
‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 
for continuation coverage premium assistance.’’. 
(3) COORDINATION WITH HCTC.— 
(A) IN GENERAL.—Section 35(g)(9) of the 
Internal Revenue Code of 1986 is amended to 
read as follows:
440 
‘‘(9) CONTINUATION COVERAGE PREMIUM AS-
SISTANCE.—In the case of an assistance eligible in-
dividual who receives premium assistance for con-
tinuation coverage under section 9501(a)(1) of the 
American Rescue Plan Act of 2021 for any month 
during the taxable year, such individual shall not be 
treated as an eligible individual, a certified indi-
vidual, or a qualifying family member for purposes 
of this section or section 7527 with respect to such 
month.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by subparagraph (A) shall apply to tax-
able years ending after the date of the enact-
ment of this Act. 
(4) EXCLUSION OF CONTINUATION COVERAGE 
PREMIUM ASSISTANCE FROM GROSS INCOME.— 
(A) IN GENERAL.—Part III of subchapter 
B of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 
139H the following new section: 
‘‘SEC. 139I. CONTINUATION COVERAGE PREMIUM ASSIST-
ANCE. 
‘‘In the case of an assistance eligible individual (as 
defined in subsection (a)(3) of section 9501 of the Amer-
ican Rescue Plan Act of 2021), gross income does not in-
441 
clude any premium assistance provided under subsection 
(a)(1) of such section.’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections for part III of subchapter B of chapter 
1 of such Code is amended by inserting after 
the item relating to section 139H the following 
new item: 
‘‘Sec. 139I. Continuation coverage premium assistance.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to taxable 
years ending after the date of the enactment of 
this Act. 
Subtitle G—Promoting Economic 
Security 
PART 1—2021 RECOVERY REBATES TO 
INDIVIDUALS 
SEC. 9601. 2021 RECOVERY REBATES TO INDIVIDUALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by inserting 
after section 6428A the following new section: 
‘‘SEC. 6428B. 2021 RECOVERY REBATES TO INDIVIDUALS. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by subtitle A for the first taxable year beginning 
in 2021 an amount equal to the 2021 rebate amount de-
termined for such taxable year.
442 
‘‘(b) 2021 REBATE AMOUNT.—For purposes of this 
section, the term ‘2021 rebate amount’ means, with re-
spect to any taxpayer for any taxable year, the sum of— 
‘‘(1) $1,400 ($2,800 in the case of a joint re-
turn), plus 
‘‘(2) $1,400 multiplied by the number of de-
pendents of the taxpayer for such taxable year. 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘eligible individual’ means any individual 
other than— 
‘‘(1) any nonresident alien individual, 
‘‘(2) any individual who is a dependent of an-
other taxpayer for a taxable year beginning in the 
calendar year in which the individual’s taxable year 
begins, and 
‘‘(3) an estate or trust. 
‘‘(d) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed by subsection (a) (determined without re-
gard to this subsection and subsection (f)) shall be 
reduced (but not below zero) by the amount which 
bears the same ratio to such credit (as so deter-
mined) as— 
‘‘(A) the excess of—
443 
‘‘(i) the taxpayer’s adjusted gross in-
come for such taxable year, over 
‘‘(ii) $75,000, bears to 
‘‘(B) $25,000. 
‘‘(2) SPECIAL RULES.— 
‘‘(A) 
JOINT
RETURN
OR
SURVIVING 
SPOUSE.—In the case of a joint return or a sur-
viving spouse (as defined in section 2(a)), para-
graph (1) shall be applied by substituting 
‘$150,000’ for ‘$75,000’ and ‘$50,000’ for 
‘$25,000’. 
‘‘(B) HEAD OF HOUSEHOLD.—In the case 
of a head of household (as defined in section 
2(b)), paragraph (1) shall be applied by sub-
stituting 
‘$112,500’ 
for 
‘$75,000’ 
and 
‘$37,500’ for ‘$25,000’. 
‘‘(e) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) DEPENDENT DEFINED.—For purposes of 
this section, the term ‘dependent’ has the meaning 
given such term by section 152. 
‘‘(2) 
IDENTIFICATION
NUMBER
REQUIRE-
MENT.— 
‘‘(A) IN GENERAL.—In the case of a re-
turn other than a joint return, the $1,400 
amount in subsection (b)(1) shall be treated as
444 
being zero unless the taxpayer includes the 
valid identification number of the taxpayer on 
the return of tax for the taxable year. 
‘‘(B) JOINT RETURNS.—In the case of a 
joint return, the $2,800 amount in subsection 
(b)(1) shall be treated as being— 
‘‘(i) $1,400 if the valid identification 
number of only 1 spouse is included on the 
return of tax for the taxable year, and 
‘‘(ii) zero if the valid identification 
number of neither spouse is so included. 
‘‘(C) DEPENDENTS.—A dependent shall 
not be taken into account under subsection 
(b)(2) unless the valid identification number of 
such dependent is included on the return of tax 
for the taxable year. 
‘‘(D) VALID IDENTIFICATION NUMBER.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘valid identifica-
tion number’ means a social security num-
ber issued to an individual by the Social 
Security Administration on or before the 
due date for filing the return for the tax-
able year.
445 
‘‘(ii) ADOPTION
TAXPAYER
IDENTI-
FICATION NUMBER.—For purposes of sub-
paragraph (C), in the case of a dependent 
who is adopted or placed for adoption, the 
term ‘valid identification number’ shall in-
clude the adoption taxpayer identification 
number of such dependent. 
‘‘(E) SPECIAL
RULE
FOR
MEMBERS
OF 
THE ARMED FORCES.—Subparagraph (B) shall 
not apply in the case where at least 1 spouse 
was a member of the Armed Forces of the 
United States at any time during the taxable 
year and the valid identification number of at 
least 1 spouse is included on the return of tax 
for the taxable year. 
‘‘(F) COORDINATION
WITH
CERTAIN
AD-
VANCE PAYMENTS.—In the case of any payment 
determined pursuant to subsection (g)(6), a 
valid identification number shall be treated for 
purposes of this paragraph as included on the 
taxpayer’s return of tax if such valid identifica-
tion number is available to the Secretary as de-
scribed in such subsection. 
‘‘(G) MATHEMATICAL OR CLERICAL ERROR 
AUTHORITY.—Any omission of a correct valid
446 
identification number required under this para-
graph shall be treated as a mathematical or 
clerical error for purposes of applying section 
6213(g)(2) to such omission. 
‘‘(3) CREDIT TREATED AS REFUNDABLE.—The 
credit allowed by subsection (a) shall be treated as 
allowed by subpart C of part IV of subchapter A of 
chapter 1. 
‘‘(f) COORDINATION WITH ADVANCE REFUNDS OF 
CREDIT.— 
‘‘(1) REDUCTION OF REFUNDABLE CREDIT.— 
The amount of the credit which would (but for this 
paragraph) be allowable under subsection (a) shall 
be reduced (but not below zero) by the aggregate re-
funds and credits made or allowed to the taxpayer 
(or, except as otherwise provided by the Secretary, 
any dependent of the taxpayer) under subsection (g). 
Any failure to so reduce the credit shall be treated 
as arising out of a mathematical or clerical error 
and assessed according to section 6213(b)(1). 
‘‘(2) JOINT
RETURNS.—Except as otherwise 
provided by the Secretary, in the case of a refund 
or credit made or allowed under subsection (g) with 
respect to a joint return, half of such refund or cred-
447 
it shall be treated as having been made or allowed 
to each individual filing such return. 
‘‘(g) ADVANCE REFUNDS AND CREDITS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (5) 
and (6), each individual who was an eligible indi-
vidual for such individual’s first taxable year begin-
ning in 2019 shall be treated as having made a pay-
ment against the tax imposed by chapter 1 for such 
taxable year in an amount equal to the advance re-
fund amount for such taxable year. 
‘‘(2) ADVANCE REFUND AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the advance refund amount is the 
amount that would have been allowed as a cred-
it under this section for such taxable year if 
this section (other than subsection (f) and this 
subsection) had applied to such taxable year. 
‘‘(B) TREATMENT OF DECEASED INDIVID-
UALS.—For purposes of determining the ad-
vance refund amount with respect to such tax-
able year— 
‘‘(i) any individual who was deceased 
before January 1, 2021, shall be treated 
for purposes of applying subsection (e)(2) 
in the same manner as if the valid identi-
448 
fication number of such person was not in-
cluded on the return of tax for such tax-
able year (except that subparagraph (E) 
thereof shall not apply), 
‘‘(ii) notwithstanding clause (i), in the 
case of a joint return with respect to which 
only 1 spouse is deceased before January 
1, 2021, such deceased spouse was a mem-
ber of the Armed Forces of the United 
States at any time during the taxable year, 
and the valid identification number of such 
deceased spouse is included on the return 
of tax for the taxable year, the valid identi-
fication number of 1 (and only 1) spouse 
shall be treated as included on the return 
of tax for the taxable year for purposes of 
applying subsection (e)(2)(B) with respect 
to such joint return, and 
‘‘(iii) no amount shall be determined 
under subsection (e)(2) with respect to any 
dependent of the taxpayer if the taxpayer 
(both spouses in the case of a joint return) 
was deceased before January 1, 2021. 
‘‘(3) TIMING
AND
MANNER
OF
PAYMENTS.— 
The Secretary shall, subject to the provisions of this
449 
title and consistent with rules similar to the rules of 
subparagraphs (B) and (C) of section 6428A(f)(3), 
refund or credit any overpayment attributable to this 
subsection as rapidly as possible, consistent with a 
rapid effort to make payments attributable to such 
overpayments electronically if appropriate. No re-
fund or credit shall be made or allowed under this 
subsection after December 31, 2021. 
‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sub-
section. 
‘‘(5) APPLICATION TO INDIVIDUALS WHO HAVE 
FILED A RETURN OF TAX FOR 2020.— 
‘‘(A) APPLICATION
TO
2020
RETURNS 
FILED AT TIME OF INITIAL DETERMINATION.— 
If, at the time of any determination made pur-
suant to paragraph (3), the individual referred 
to in paragraph (1) has filed a return of tax for 
the individual’s first taxable year beginning in 
2020, paragraph (1) shall be applied with re-
spect to such individual by substituting ‘2020’ 
for ‘2019’. 
‘‘(B) ADDITIONAL PAYMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
individual who files, before the additional
450 
payment determination date, a return of 
tax for such individual’s first taxable year 
beginning in 2020, the Secretary shall 
make a payment (in addition to any pay-
ment made under paragraph (1)) to such 
individual equal to the excess (if any) of— 
‘‘(I) the amount which would be 
determined 
under 
paragraph 
(1) 
(after the application of subparagraph 
(A)) by applying paragraph (1) as of 
the additional payment determination 
date, over 
‘‘(II) the amount of any payment 
made with respect to such individual 
under paragraph (1). 
‘‘(ii) ADDITIONAL
PAYMENT
DETER-
MINATION
DATE.—The term ‘additional 
payment determination date’ means the 
earlier of— 
‘‘(I) the date which is 90 days 
after the 2020 calendar year filing 
deadline, or 
‘‘(II) September 1, 2021. 
‘‘(iii) 2020 CALENDAR
YEAR
FILING 
DEADLINE.—The term ‘2020 calendar year
451 
filing deadline’ means the date specified in 
section 6072(a) with respect to returns for 
calendar year 2020. Such date shall be de-
termined after taking into account any pe-
riod disregarded under section 7508A if 
such disregard applies to substantially all 
returns for calendar year 2020 to which 
section 6072(a) applies. 
‘‘(6) APPLICATION
TO
CERTAIN
INDIVIDUALS 
WHO HAVE NOT FILED A RETURN OF TAX FOR 2019 
OR 2020 AT TIME OF DETERMINATION.—In the case 
of any individual who, at the time of any determina-
tion made pursuant to paragraph (3), has filed a tax 
return for neither the year described in paragraph 
(1) nor for the year described in paragraph (5)(A), 
the Secretary shall, consistent with rules similar to 
the rules of section 6428A(f)(5)(H)(i), apply para-
graph (1) on the basis of information available to 
the Secretary and shall, on the basis of such infor-
mation, determine the advance refund amount with 
respect to such individual without regard to sub-
section (d) unless the Secretary has reason to know 
that such amount would otherwise be reduced by 
reason of such subsection.
452 
‘‘(7) SPECIAL RULE RELATED TO TIME OF FIL-
ING
RETURN.—Solely for purposes of this sub-
section, a return of tax shall not be treated as filed 
until such return has been processed by the Internal 
Revenue Service. 
‘‘(8) RESTRICTION ON USE OF CERTAIN PRE-
VIOUSLY ISSUED PREPAID DEBIT CARDS.—Payments 
made by the Secretary to individuals under this sec-
tion shall not be in the form of an increase in the 
balance of any previously issued prepaid debit card 
if, as of the time of the issuance of such card, such 
card was issued solely for purposes of making pay-
ments under section 6428 or 6428A. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section, 
including— 
‘‘(1) regulations or other guidance providing 
taxpayers the opportunity to provide the Secretary 
information sufficient to allow the Secretary to make 
payments to such taxpayers under subsection (g) 
(including the determination of the amount of such 
payment) if such information is not otherwise avail-
able to the Secretary, and
453 
‘‘(2) regulations or other guidance to ensure to 
the maximum extent administratively practicable 
that, in determining the amount of any credit under 
subsection (a) and any credit or refund under sub-
section (g), an individual is not taken into account 
more than once, including by different taxpayers and 
including by reason of a change in joint return sta-
tus or dependent status between the taxable year for 
which an advance refund amount is determined and 
the taxable year for which a credit under subsection 
(a) is determined. 
‘‘(i) OUTREACH.—The Secretary shall carry out a ro-
bust and comprehensive outreach program to ensure that 
all taxpayers described in subsection (h)(1) learn of their 
eligibility for the advance refunds and credits under sub-
section (g); are advised of the opportunity to receive such 
advance refunds and credits as provided under subsection 
(h)(1); and are provided assistance in applying for such 
advance refunds and credits.’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of
454 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the 
amendments made by this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(3) 
INCLUSION
OF
ADMINISTRATIVE
EX-
PENSES.—The Secretary of the Treasury shall pay 
to each possession of the United States to which the 
Secretary makes a payment under paragraph (1) or 
(2) an amount equal to the lesser of— 
(A) the increase (if any) of the administra-
tive expenses of such possession—
455 
(i) in the case of a possession de-
scribed in paragraph (1), by reason of the 
amendments made by this section, and 
(ii) in the case of a possession de-
scribed in paragraph (2), by reason of car-
rying out the plan described in such para-
graph, or 
(B) $500,000 ($10,000,000 in the case of 
Puerto Rico). 
The amount described in subparagraph (A) shall be 
determined by the Secretary of the Treasury based 
on information provided by the government of the 
respective possession. 
(4) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 6428B of the Internal Revenue 
Code of 1986 (as added by this section), nor shall 
any credit or refund be made or allowed under sub-
section (g) of such section, to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (2).
456 
(5) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
reference to the income tax laws of the United 
States as if such possession were the United States. 
(6) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this subsection shall be treated in 
the same manner as a refund due from a credit pro-
vision referred to in subsection (b)(2) of such sec-
tion. 
(c) ADMINISTRATIVE PROVISIONS.— 
(1) 
DEFINITION
OF
DEFICIENCY.—Section 
6211(b)(4)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘6428, and 6428A’’ and in-
serting ‘‘6428, 6428A, and 6428B’’. 
(2) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any refund payable by reason of section 
6428B(g) of the Internal Revenue Code of 1986 (as 
added by this section), or any such refund payable 
by reason of subsection (b) of this section, shall not 
be—
457 
(A) subject to reduction or offset pursuant 
to subsection (c), (d), (e), or (f) of section 6402 
of the Internal Revenue Code of 1986, or 
(B) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
(3) CONFORMING AMENDMENTS.— 
(A) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘6428B,’’ after ‘‘6428A,’’. 
(B) The table of sections for subchapter B 
of chapter 65 of the Internal Revenue Code of 
1986 is amended by inserting after the item re-
lating to section 6428A the following new item: 
‘‘Sec. 6428B. 2021 recovery rebates to individuals.’’. 
(d) APPROPRIATIONS.—Immediately upon the enact-
ment of this Act, in addition to amounts otherwise avail-
able, there are appropriated for fiscal year 2021, out of 
any money in the Treasury not otherwise appropriated: 
(1) $1,464,500,000 to remain available until 
September 30, 2023 for necessary expenses for the 
Internal Revenue Service for the administration of 
the advance payments, the provision of taxpayer as-
sistance, and the furtherance of integrated, modern-
ized, and secure Internal Revenue Service systems, 
of which up to $20,000,000 is available for premium
458 
pay for services related to the development of infor-
mation technology as determined by the Commis-
sioner of the Internal Revenue occurring between 
January 1, 2020 and December 31, 2022, notwith-
standing any limitations on pay otherwise imposed, 
and all of which shall supplement and not supplant 
any other appropriations that may be available for 
this purpose. 
(2) $7,000,000 to remain available until Sep-
tember 30, 2022, for necessary expenses for the Bu-
reau of the Fiscal Service to carry out this section 
(and the amendments made by this section), which 
shall supplement and not supplant any other appro-
priations that may be available for this purpose, and 
(3) $8,000,000 to remain available until Sep-
tember 30, 2023, for the Treasury Inspector General 
for Tax Administration for the purposes of over-
seeing activities related to the administration of this 
section (and the amendments made by this section), 
which shall supplement and not supplant any other 
appropriations that may be available for this pur-
pose.
459 
PART 2—CHILD TAX CREDIT 
SEC. 9611. CHILD TAX CREDIT IMPROVEMENTS FOR 2021. 
(a) IN GENERAL.—Section 24 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(i) SPECIAL RULES FOR 2021.—In the case of any 
taxable year beginning after December 31, 2020, and be-
fore January 1, 2022— 
‘‘(1) REFUNDABLE
CREDIT.—If the taxpayer 
(in the case of a joint return, either spouse) has a 
principal place of abode in the United States (deter-
mined as provided in section 32) for more than one- 
half of the taxable year or is a bona fide resident of 
Puerto Rico (within the meaning of section 937(a)) 
for such taxable year— 
‘‘(A) subsection (d) shall not apply, and 
‘‘(B) so much of the credit determined 
under subsection (a) (after application of sub-
paragraph (A)) as does not exceed the amount 
of such credit which would be so determined 
without regard to subsection (h)(4) shall be al-
lowed under subpart C (and not allowed under 
this subpart). 
‘‘(2) 17-YEAR-OLDS ELIGIBLE FOR TREATMENT 
AS QUALIFYING CHILDREN.—This section shall be 
applied—
460 
‘‘(A) by substituting ‘age 18’ for ‘age 17’ 
in subsection (c)(1), and 
‘‘(B) by substituting ‘described in sub-
section (c) (determined after the application of 
subsection (i)(2)(A))’ for ‘described in sub-
section (c)’ in subsection (h)(4)(A). 
‘‘(3) CREDIT AMOUNT.—Subsection (h)(2) shall 
not apply and subsection (a) shall be applied by sub-
stituting ‘$3,000 ($3,600 in the case of a qualifying 
child who has not attained age 6 as of the close of 
the calendar year in which the taxable year of the 
taxpayer begins)’ for ‘$1,000’. 
‘‘(4) 
REDUCTION
OF
INCREASED
CREDIT 
AMOUNT BASED ON MODIFIED ADJUSTED GROSS IN-
COME.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowable under subsection (a) (deter-
mined without regard to subsection (b)) shall be 
reduced by $50 for each $1,000 (or fraction 
thereof) by which the taxpayer’s modified ad-
justed gross income (as defined in subsection 
(b)) exceeds the applicable threshold amount. 
‘‘(B) APPLICABLE THRESHOLD AMOUNT.— 
For purposes of this paragraph, the term ‘ap-
plicable threshold amount’ means—
461 
‘‘(i) $150,000, in the case of a joint 
return or surviving spouse (as defined in 
section 2(a)), 
‘‘(ii) $112,500, in the case of a head 
of household (as defined in section 2(b)), 
and 
‘‘(iii) $75,000, in any other case. 
‘‘(C) LIMITATION ON REDUCTION.— 
‘‘(i) IN
GENERAL.—The amount of 
the reduction under subparagraph (A) 
shall not exceed the lesser of— 
‘‘(I) the applicable credit increase 
amount, or 
‘‘(II) 5 percent of the applicable 
phaseout threshold range. 
‘‘(ii) APPLICABLE
CREDIT
INCREASE 
AMOUNT.—For purposes of this subpara-
graph, the term ‘applicable credit increase 
amount’ means the excess (if any) of— 
‘‘(I) the amount of the credit al-
lowable under this section for the tax-
able year determined without regard 
to this paragraph and subsection (b), 
over
462 
‘‘(II) the amount of such credit 
as so determined and without regard 
to paragraph (3). 
‘‘(iii) 
APPLICABLE
PHASEOUT 
THRESHOLD RANGE.—For purposes of this 
subparagraph, the term ‘applicable phase-
out threshold range’ means the excess of— 
‘‘(I) the threshold amount appli-
cable to the taxpayer under subsection 
(b) (determined after the application 
of subsection (h)(3)), over 
‘‘(II) the applicable threshold 
amount applicable to the taxpayer 
under this paragraph. 
‘‘(D) COORDINATION WITH LIMITATION ON 
OVERALL CREDIT.—Subsection (b) shall be ap-
plied by substituting ‘the credit allowable under 
subsection (a) (determined after the application 
of subsection (i)(4)(A)’ for ‘the credit allowable 
under subsection (a)’.’’. 
(b) ADVANCE PAYMENT OF CREDIT.— 
(1) IN GENERAL.—Chapter 77 of such Code is 
amended by inserting after section 7527 the fol-
lowing new section:
463 
‘‘SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program for making periodic payments to taxpayers 
which, in the aggregate during any calendar year, equal 
the annual advance amount determined with respect to 
such taxpayer for such calendar year. Except as provided 
in subsection (b)(3)(B), the periodic payments made to 
any taxpayer for any calendar year shall be in equal 
amounts. 
‘‘(b) ANNUAL ADVANCE AMOUNT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘annual advance 
amount’ means, with respect to any taxpayer for any 
calendar year, the amount (if any) which is esti-
mated by the Secretary as being equal to 50 percent 
of the amount which would be treated as allowed 
under subpart C of part IV of subchapter A of chap-
ter 1 by reason of section 24(i)(1) for the taxpayer’s 
taxable year beginning in such calendar year if— 
‘‘(A) the status of the taxpayer as a tax-
payer described in section 24(i)(1) is deter-
mined with respect to the reference taxable 
year, 
‘‘(B) the taxpayer’s modified adjusted 
gross income for such taxable year is equal to
464 
the taxpayer’s modified adjusted gross income 
for the reference taxable year, 
‘‘(C) the only children of such taxpayer for 
such taxable year are qualifying children prop-
erly claimed on the taxpayer’s return of tax for 
the reference taxable year, and 
‘‘(D) the ages of such children (and the 
status of such children as qualifying children) 
are determined for such taxable year by taking 
into account the passage of time since the ref-
erence taxable year. 
‘‘(2) REFERENCE TAXABLE YEAR.—Except as 
provided in paragraph (3)(A), the term ‘reference 
taxable year’ means, with respect to any taxpayer 
for any calendar year, the taxpayer’s taxable year 
beginning in the preceding calendar year or, in the 
case of taxpayer who did not file a return of tax for 
such taxable year, the taxpayer’s taxable year begin-
ning in the second preceding calendar year. 
‘‘(3) 
MODIFICATIONS
DURING
CALENDAR 
YEAR.— 
‘‘(A) IN
GENERAL.—The Secretary may 
modify, during any calendar year, the annual 
advance amount with respect to any taxpayer 
for such calendar year to take into account—
465 
‘‘(i) a return of tax filed by such tax-
payer during such calendar year (and the 
taxable year to which such return relates 
may be taken into account as the reference 
taxable year), and 
‘‘(ii) any other information provided 
by the taxpayer to the Secretary which al-
lows the Secretary to determine payments 
under subsection (a) which, in the aggre-
gate during any taxable year of the tax-
payer, more closely total the Secretary’s 
estimate of the amount treated as allowed 
under subpart C of part IV of subchapter 
A of chapter 1 by reason of section 
24(i)(1) for such taxable year of such tax-
payer. 
‘‘(B) ADJUSTMENT TO REFLECT EXCESS 
OR DEFICIT IN PRIOR PAYMENTS.—In the case 
of any modification of the annual advance 
amount under subparagraph (A), the Secretary 
may adjust the amount of any periodic payment 
made after the date of such modification to 
properly take into account the amount by which 
any periodic payment made before such date 
was greater than or less than the amount that
466 
such payment would have been on the basis of 
the annual advance amount as so modified. 
‘‘(4) DETERMINATION OF STATUS.—If informa-
tion contained in the taxpayer’s return of tax for the 
reference taxable year does not establish the status 
of the taxpayer as being described in section 
24(i)(1), the Secretary shall, for purposes of para-
graph (1)(A), determine such status based on infor-
mation known to the Secretary. 
‘‘(5) TREATMENT
OF
CERTAIN
DEATHS.—A 
child shall not be taken into account in determining 
the annual advance amount under paragraph (1) if 
the death of such child is known to the Secretary as 
of the beginning of the calendar year for which the 
estimate under such paragraph is made. 
‘‘(c) ON-LINE INFORMATION PORTAL.—The Sec-
retary shall establish an on-line portal which allows tax-
payers to— 
‘‘(1) elect not to receive payments under this 
section, and 
‘‘(2) provide information to the Secretary which 
would be relevant to a modification under subsection 
(b)(3)(B) of the annual advance amount, including 
information regarding—
468 
the same manner as if such payments were Federal 
payments not made under this title. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (B) and (C) of 
section 6428A(f)(3) shall apply for purposes of this 
section. 
‘‘(3) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any payment made to any individual under 
this section shall not be— 
‘‘(A) subject to reduction or offset pursu-
ant to subsection (c), (d), (e), or (f) of section 
6402, or 
‘‘(B) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
‘‘(4) APPLICATION OF ADVANCE PAYMENTS IN 
THE POSSESSIONS OF THE UNITED STATES.— 
‘‘(A) IN GENERAL.—The advance payment 
amount determined under this section shall be 
determined— 
‘‘(i) by applying section 24(i)(1) with-
out regard to the phrase ‘or is a bona fide 
resident of Puerto Rico (within the mean-
ing of section 937(a))’, and
469 
‘‘(ii) 
without 
regard 
to 
section 
24(k)(3)(C)(ii)(I). 
‘‘(B) MIRROR CODE POSSESSIONS.—In the 
case of any possession of the United States with 
a mirror code tax system (as defined in section 
24(k)), this section shall not be treated as part 
of the income tax laws of the United States for 
purposes of determining the income tax law of 
such possession unless such possession elects to 
have this section be so treated. 
‘‘(C) ADMINISTRATIVE EXPENSES OF AD-
VANCE PAYMENTS.— 
‘‘(i) MIRROR CODE POSSESSIONS.—In 
the case of any possession described in 
subparagraph (B) which makes the elec-
tion described in such subparagraph, the 
amount otherwise paid by the Secretary to 
such possession under section 24(k)(1)(A) 
with respect to taxable years beginning in 
2021 shall be increased by $300,000 if 
such possession has a plan, which has been 
approved by the Secretary, for making ad-
vance payments consistent with such elec-
tion.
470 
‘‘(ii) AMERICAN SAMOA.—The amount 
otherwise paid by the Secretary to Amer-
ican Samoa under subparagraph (A) of 
section 24(k)(3) with respect to taxable 
years beginning in 2021 shall be increased 
by $300,000 if the plan described in sub-
paragraph (B) of such section includes a 
program, which has been approved by the 
Secretary, for making advance payments 
under rules similar to the rules of this sec-
tion. 
‘‘(iii) TIMING
OF
PAYMENT.—The 
Secretary may pay, upon the request of the 
possession of the United States to which 
the payment is to be made, the amount of 
the increase determined under clause (i) or 
(ii) immediately upon approval of the plan 
referred to in such clause, respectively. 
‘‘(f) APPLICATION.—No payments shall be made 
under the program established under subsection (a) with 
respect to— 
‘‘(1) any period before July 1, 2021, or 
‘‘(2) any period after December 31, 2021. 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines
471 
necessary or appropriate to carry out the purposes of this 
section and subsections (i)(1) and (j) of section 24, includ-
ing regulations or other guidance which provides for the 
application of such provisions where the filing status of 
the taxpayer for a taxable year is different from the status 
used for determining the annual advance amount.’’. 
(2) RECONCILIATION OF CREDIT AND ADVANCE 
CREDIT.—Section 24 of such Code, as amended by 
the preceding provision of this Act, is amended by 
adding at the end the following new subsection: 
‘‘(j) RECONCILIATION
OF CREDIT
AND ADVANCE 
CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed under this section to any taxpayer for any 
taxable year shall be reduced (but not below zero) by 
the aggregate amount of payments made under sec-
tion 7527A to such taxpayer during such taxable 
year. Any failure to so reduce the credit shall be 
treated as arising out of a mathematical or clerical 
error and assessed according to section 6213(b)(1). 
‘‘(2) EXCESS ADVANCE PAYMENTS.— 
‘‘(A) IN
GENERAL.—If the aggregate 
amount of payments under section 7527A to 
the taxpayer during the taxable year exceeds 
the amount of the credit allowed under this sec-
472 
tion to such taxpayer for such taxable year (de-
termined without regard to paragraph (1)), the 
tax imposed by this chapter for such taxable 
year shall be increased by the amount of such 
excess. Any failure to so increase the tax shall 
be treated as arising out of a mathematical or 
clerical error and assessed according to section 
6213(b)(1). 
‘‘(B) SAFE HARBOR BASED ON MODIFIED 
ADJUSTED GROSS INCOME.— 
‘‘(i) IN GENERAL.—In the case of a 
taxpayer whose modified adjusted gross in-
come (as defined in subsection (b)) for the 
taxable year does not exceed 200 percent 
of the applicable income threshold, the 
amount of the increase determined under 
subparagraph (A) with respect to such tax-
payer for such taxable year shall be re-
duced (but not below zero) by the safe har-
bor amount. 
‘‘(ii) PHASE
OUT
OF
SAFE
HARBOR 
AMOUNT.—In the case of a taxpayer whose 
modified adjusted gross income (as defined 
in subsection (b)) for the taxable year ex-
ceeds the applicable income threshold, the
473 
safe harbor amount otherwise in effect 
under clause (i) shall be reduced by the 
amount which bears the same ratio to such 
amount as such excess bears to the appli-
cable income threshold. 
‘‘(iii) APPLICABLE
INCOME
THRESH-
OLD.—For purposes of this subparagraph, 
the term ‘applicable income threshold’ 
means— 
‘‘(I) $60,000 in the case of a 
joint return or surviving spouse (as 
defined in section 2(a)), 
‘‘(II) $50,000 in the case of a 
head of household, and 
‘‘(III) $40,000 in any other case. 
‘‘(iv) SAFE
HARBOR
AMOUNT.—For 
purposes of this subparagraph, the term 
‘safe harbor amount’ means, with respect 
to any taxable year, the product of— 
‘‘(I) $2,000, multiplied by 
‘‘(II) the excess (if any) of the 
number of qualified children taken 
into account in determining the an-
nual advance amount with respect to 
the taxpayer under section 7527A
474 
with respect to months beginning in 
such taxable year, over the number of 
qualified children taken into account 
in determining the credit allowed 
under this section for such taxable 
year.’’. 
(3) 
COORDINATION
WITH
WAGE
WITH-
HOLDING.—Section 3402(f)(1)(C) of such Code is 
amended by striking ‘‘section 24(a)’’ and inserting 
‘‘section 24 (determined after application of sub-
section (j) thereof)’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 26(b)(2) of such Code is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (X), by striking the period at the 
end of subparagraph (Y) and inserting ‘‘, and’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(Z) section 24(j)(2) (relating to excess 
advance payments).’’. 
(B) Section 6211(b)(4)(A) of such Code, 
as amended by the preceding provisions of this 
subtitle, is amended—
475 
(i) by striking ‘‘24(d)’’ and inserting 
‘‘24 by reason of subsections (d) and (i)(1) 
thereof’’, and 
(ii) by striking ‘‘and 6428B’’ and in-
serting ‘‘6428B, and 7527A’’. 
(C) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended— 
(i) by inserting ‘‘24,’’ before ‘‘25A’’, 
and 
(ii) by striking ‘‘ or 6431’’ and insert-
ing ‘‘6431, or 7527A’’. 
(D) The table of sections for chapter 77 of 
the Internal Revenue Code of 1986 is amended 
by inserting after the item relating to section 
7527 the following new item: 
‘‘Sec. 7527A. Advance payment of child tax credit.’’. 
(5) APPROPRIATIONS TO CARRY OUT ADVANCE 
PAYMENTS.—Immediately upon the enactment of 
this Act, in addition to amounts otherwise available, 
there are appropriated for fiscal year 2021, out of 
any money in the Treasury not otherwise appro-
priated: 
(A) $397,200,000 to remain available until 
September 30, 2022, for necessary expenses for 
the Internal Revenue Service to carry out this 
section (and the amendments made by this sec-
476 
tion), which shall supplement and not supplant 
any other appropriations that may be available 
for this purpose, and 
(B) $16,200,000 to remain available until 
September 30, 2022, for necessary expenses for 
the Bureau of the Fiscal Service to carry out 
this section (and the amendments made by this 
section), which shall supplement and not sup-
plant any other appropriations that may be 
available for this purpose. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2020. 
(2) ESTABLISHMENT
OF
ADVANCE
PAYMENT 
PROGRAM.—The Secretary of the Treasury (or the 
Secretary’s designee) shall establish the program de-
scribed in section 7527A of the Internal Revenue 
Code of 1986 as soon as practicable after the date 
of the enactment of this Act, except that the Sec-
retary shall ensure that the timing of the establish-
ment of such program does not interfere with car-
rying out section 6428B(g) as rapidly as possible.
477 
SEC. 9612. APPLICATION OF CHILD TAX CREDIT IN POSSES-
SIONS. 
(a) IN GENERAL.—Section 24 of the Internal Rev-
enue Code of 1986, as amended by the preceding provi-
sions of this Act, is amended by adding at the end the 
following new subsection: 
‘‘(k) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) MIRROR CODE POSSESSIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to each possession of the United States 
with a mirror code tax system amounts equal to 
the loss (if any) to that possession by reason of 
the application of this section (determined with-
out regard to this subsection) with respect to 
taxable years beginning after 2020. Such 
amounts shall be determined by the Secretary 
based on information provided by the govern-
ment of the respective possession. 
‘‘(B) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.—No credit shall be allowed under this 
section for any taxable year to any individual to 
whom a credit is allowable against taxes im-
posed by a possession of the United States with 
a mirror code tax system by reason of the appli-
478 
cation of this section in such possession for 
such taxable year. 
‘‘(C) MIRROR
CODE
TAX
SYSTEM.—For 
purposes of this paragraph, the term ‘mirror 
code tax system’ means, with respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
‘‘(2) PUERTO RICO.— 
‘‘(A) APPLICATION TO TAXABLE YEARS IN 
2021.— 
‘‘(i) For application of refundable 
credit to residents of Puerto Rico, see sub-
section (i)(1). 
‘‘(ii) For nonapplication of advance 
payment to residents of Puerto Rico, see 
section 7527A(e)(5)(A). 
‘‘(B) APPLICATION
TO
TAXABLE
YEARS 
AFTER 2021.—In the case of any bona fide resi-
dent of Puerto Rico (within the meaning of sec-
tion 937(a)) for any taxable year beginning 
after December 31, 2021—
479 
‘‘(i) the credit determined under this 
section shall be allowable to such resident, 
and 
‘‘(ii) subsection (d)(1)(B)(ii) shall be 
applied without regard to the phrase ‘in 
the case of a taxpayer with 3 or more 
qualifying children’. 
‘‘(3) AMERICAN SAMOA.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
pay to American Samoa amounts estimated by 
the Secretary as being equal to the aggregate 
benefits that would have been provided to resi-
dents of American Samoa by reason of the ap-
plication of this section for taxable years begin-
ning after 2020 if the provisions of this section 
had been in effect in American Samoa (applied 
as if American Samoa were the United States 
and without regard to the application of this 
section to bona fide residents of Puerto Rico 
under subsection (i)(1)). 
‘‘(B) DISTRIBUTION REQUIREMENT.—Sub-
paragraph (A) shall not apply unless American 
Samoa has a plan, which has been approved by 
the Secretary, under which American Samoa
480 
will promptly distribute such payments to its 
residents. 
‘‘(C) COORDINATION
WITH
CREDIT
AL-
LOWED
AGAINST
UNITED
STATES
INCOME 
TAXES.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year with respect to which a plan 
is approved under subparagraph (B), this 
section (other than this subsection) shall 
not apply to any individual eligible for a 
distribution under such plan. 
‘‘(ii) APPLICATION
OF
SECTION
IN 
EVENT
OF
ABSENCE
OF
APPROVED 
PLAN.—In the case of a taxable year with 
respect to which a plan is not approved 
under subparagraph (B)— 
‘‘(I) if such taxable year begins 
in 2021, subsection (i)(1) shall be ap-
plied by substituting ‘bona fide resi-
dent of Puerto Rico or American 
Samoa’ for ‘bona fide resident of 
Puerto Rico’, and 
‘‘(II) if such taxable year begins 
after December 31, 2021, rules simi-
lar to the rules of paragraph (2)(B)
481 
shall apply with respect to bona fide 
residents of American Samoa (within 
the meaning of section 937(a)). 
‘‘(4) TREATMENT
OF
PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, the payments under this subsection shall be 
treated in the same manner as a refund due from 
a credit provision referred to in subsection (b)(2) of 
such section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
PART 3—EARNED INCOME TAX CREDIT 
SEC. 9621. STRENGTHENING THE EARNED INCOME TAX 
CREDIT FOR INDIVIDUALS WITH NO QUALI-
FYING CHILDREN. 
(a) SPECIAL RULES FOR 2021.—Section 32 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(n) SPECIAL RULES FOR INDIVIDUALS WITHOUT 
QUALIFYING CHILDREN.—In the case of any taxable year 
beginning after December 31, 2020, and before January 
1, 2022— 
‘‘(1) DECREASE IN MINIMUM AGE FOR CRED-
IT.—
482 
‘‘(A) 
IN
GENERAL.—Subsection 
(c)(1)(A)(ii)(II) shall be applied by substituting 
‘the applicable minimum age’ for ‘age 25’. 
‘‘(B) APPLICABLE
MINIMUM
AGE.—For 
purposes of this paragraph, the term ‘applicable 
minimum age’ means— 
‘‘(i) except as otherwise provided in 
this subparagraph, age 19, 
‘‘(ii) in the case of a specified student 
(other than a qualified former foster youth 
or a qualified homeless youth), age 24, and 
‘‘(iii) in the case of a qualified former 
foster youth or a qualified homeless youth, 
age 18. 
‘‘(C) SPECIFIED STUDENT.—For purposes 
of this paragraph, the term ‘specified student’ 
means, with respect to any taxable year, an in-
dividual who is an eligible student (as defined 
in section 25A(b)(3)) during at least 5 calendar 
months during the taxable year. 
‘‘(D) 
QUALIFIED
FORMER
FOSTER 
YOUTH.—For purposes of this paragraph, the 
term ‘qualified former foster youth’ means an 
individual who—
483 
‘‘(i) on or after the date that such in-
dividual attained age 14, was in foster care 
provided under the supervision or adminis-
tration of an entity administering (or eligi-
ble to administer) a plan under part B or 
part E of title IV of the Social Security 
Act (without regard to whether Federal as-
sistance was provided with respect to such 
child under such part E), and 
‘‘(ii) provides (in such manner as the 
Secretary may provide) consent for entities 
which administer a plan under part B or 
part E of title IV of the Social Security 
Act to disclose to the Secretary informa-
tion related to the status of such individual 
as a qualified former foster youth. 
‘‘(E) QUALIFIED HOMELESS YOUTH.—For 
purposes of this paragraph, the term ‘qualified 
homeless youth’ means, with respect to any tax-
able year, an individual who certifies, in a man-
ner as provided by the Secretary, that such in-
dividual is either an unaccompanied youth who 
is a homeless child or youth, or is unaccom-
panied, at risk of homelessness, and self-sup-
porting.
484 
‘‘(2) ELIMINATION
OF
MAXIMUM
AGE
FOR 
CREDIT.—Subsection (c)(1)(A)(ii)(II) shall be ap-
plied without regard to the phrase ‘but not attained 
age 65’. 
‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER-
CENTAGES.—The table contained in subsection 
(b)(1) shall be applied by substituting ‘15.3’ for 
‘7.65’ each place it appears therein. 
‘‘(4) INCREASE
IN
EARNED
INCOME
AND 
PHASEOUT AMOUNTS.— 
‘‘(A) IN GENERAL.—The table contained in 
subsection (b)(2)(A) shall be applied— 
‘‘(i) by substituting ‘$9,820’ for 
‘$4,220’, and 
‘‘(ii) by substituting ‘$11,610’ for 
‘$5,280’. 
‘‘(B) COORDINATION WITH INFLATION AD-
JUSTMENT.—Subsection (j) shall not apply to 
any dollar amount specified in this paragraph.’’. 
(b) INFORMATION RETURN MATCHING.—As soon as 
practicable, the Secretary of the Treasury (or the Sec-
retary’s delegate) shall develop and implement procedures 
to use information returns under section 6050S (relating 
to returns relating to higher education tuition and related 
expenses) to check the status of individuals as specified
485 
students for purposes of section 32(n)(1)(B)(ii) of the In-
ternal Revenue Code of 1986 (as added by this section). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9622. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED 
INCOME CREDIT IN CASE OF QUALIFYING 
CHILDREN WHO FAIL TO MEET CERTAIN 
IDENTIFICATION REQUIREMENTS. 
(a) IN GENERAL.—Section 32(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (F). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9623. CREDIT ALLOWED IN CASE OF CERTAIN SEPA-
RATED SPOUSES. 
(a) IN GENERAL.—Section 32(d) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘MARRIED INDIVIDUALS.—In 
the case of’’ and inserting the following: ‘‘MARRIED 
INDIVIDUALS.— 
‘‘(1) IN GENERAL.—In the case of’’, and 
(2) by adding at the end the following new 
paragraph:
486 
‘‘(2) DETERMINATION OF MARITAL STATUS.— 
For purposes of this section— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), marital status shall be deter-
mined under section 7703(a). 
‘‘(B) SPECIAL
RULE
FOR
SEPARATED 
SPOUSE.—An individual shall not be treated as 
married if such individual— 
‘‘(i) is married (as determined under 
section 7703(a)) and does not file a joint 
return for the taxable year, 
‘‘(ii) resides with a qualifying child of 
the individual for more than one-half of 
such taxable year, and 
‘‘(iii)(I) during the last 6 months of 
such taxable year, does not have the same 
principal place of abode as the individual’s 
spouse, or 
‘‘(II) has a decree, instrument, or 
agreement (other than a decree of divorce) 
described in section 121(d)(3)(C) with re-
spect to the individual’s spouse and is not 
a member of the same household with the 
individual’s spouse by the end of the tax-
able year.’’.
487 
(b) CONFORMING AMENDMENTS.— 
(1) Section 32(c)(1)(A) of such Code is amend-
ed by striking the last sentence. 
(2) Section 32(c)(1)(E)(ii) of such Code is 
amended by striking ‘‘(within the meaning of section 
7703)’’. 
(3) Section 32(d)(1) of such Code, as amended 
by subsection (a), is amended by striking ‘‘(within 
the meaning of section 7703)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9624. MODIFICATION OF DISQUALIFIED INVESTMENT 
INCOME TEST. 
(a) IN GENERAL.—Section 32(i) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘$2,200’’ and 
inserting ‘‘$10,000’’. 
(b) INFLATION ADJUSTMENT.—Section 32(j)(1) of 
such Code is amended— 
(1) in the matter preceding subparagraph (A), 
by inserting ‘‘(2021 in the case of the dollar amount 
in subsection (i)(1))’’ after ‘‘2015’’, 
(2) in subparagraph (B)(i)—
488 
(A) by striking ‘‘subsections (b)(2)(A) and 
(i)(1)’’ and inserting ‘‘subsection (b)(2)(A)’’, 
and 
(B) by striking ‘‘and’’ at the end, 
(3) by striking the period at the end of sub-
paragraph (B)(ii) and inserting ‘‘, and’’, and 
(4) by inserting after subparagraph (B)(ii) the 
following new clause: 
‘‘(iii) in the case of the $10,000 
amount in subsection (i)(1), ‘calendar year 
2020’ for ‘calendar year 2016’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9625. APPLICATION OF EARNED INCOME TAX CREDIT 
IN POSSESSIONS OF THE UNITED STATES. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 7530. APPLICATION OF EARNED INCOME TAX CREDIT 
TO POSSESSIONS OF THE UNITED STATES. 
‘‘(a) PUERTO RICO.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this
489 
subsection, make payments to Puerto Rico equal 
to— 
‘‘(A) the specified matching amount for 
such calendar year, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by Puerto 
Rico during such calendar year for edu-
cation efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to the earned income tax credit, or 
‘‘(ii) $1,000,000. 
‘‘(2) REQUIREMENT TO REFORM EARNED IN-
COME TAX CREDIT.—The Secretary shall not make 
any payments under paragraph (1) with respect to 
any calendar year unless Puerto Rico has in effect 
an earned income tax credit for taxable years begin-
ning in or with such calendar year which (relative to 
the earned income tax credit which was in effect for 
taxable years beginning in or with calendar year 
2019) increases the percentage of earned income 
which is allowed as a credit for each group of indi-
viduals with respect to which such percentage is sep-
arately stated or determined in a manner designed 
to substantially increase workforce participation.
490 
‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘specified 
matching amount’ means, with respect to any 
calendar year, the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with such 
calendar year, over 
‘‘(II) the base amount for such 
calendar year, or 
‘‘(ii) the product of 3, multiplied by 
the base amount for such calendar year. 
‘‘(B) BASE AMOUNT.— 
‘‘(i) BASE AMOUNT FOR 2021.—In the 
case of calendar year 2021, the term ‘base 
amount’ means the greater of— 
‘‘(I) the cost to Puerto Rico of 
the earned income tax credit for tax-
able years beginning in or with cal-
endar year 2019 (rounded to the 
nearest multiple of $1,000,000), or 
‘‘(II) $200,000,000.
491 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any calendar year after 2021, 
the term ‘base amount’ means the dollar 
amount determined under clause (i) in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by— 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘calendar year 2020’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount determined under this clause 
shall be rounded to the nearest multiple of 
$1,000,000. 
‘‘(4) RULES RELATED TO PAYMENTS.— 
‘‘(A) TIMING
OF
PAYMENTS.—The Sec-
retary shall make payments under paragraph 
(1) for any calendar year— 
‘‘(i) after receipt of such information 
as the Secretary may require to determine 
such payments, and 
‘‘(ii) except as provided in clause (i), 
within a reasonable period of time before
492 
the due date for individual income tax re-
turns (as determined under the laws of 
Puerto Rico) for taxable years which began 
on the first day of such calendar year. 
‘‘(B) INFORMATION.—The Secretary may 
require the reporting of such information as the 
Secretary may require to carry out this sub-
section. 
‘‘(C) 
DETERMINATION
OF
COST
OF 
EARNED INCOME TAX CREDIT.—For purposes 
of this subsection, the cost to Puerto Rico of 
the earned income tax credit shall be deter-
mined by the Secretary on the basis of the laws 
of Puerto Rico and shall include reductions in 
revenues received by Puerto Rico by reason of 
such credit and refunds attributable to such 
credit, but shall not include any administrative 
costs with respect to such credit. 
‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS-
TEMS.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
subsection, make payments to the Virgin Islands,
493 
Guam, and the Commonwealth of the Northern Mar-
iana Islands equal to— 
‘‘(A) the cost to such possession of the 
earned income tax credit for taxable years be-
ginning in or with such calendar year, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by such 
possession during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), and 
(C) of subsection (a)(4) shall apply for purposes of 
this subsection. 
‘‘(c) AMERICAN SAMOA.— 
‘‘(1) IN GENERAL.—With respect to calendar 
year 2021 and each calendar year thereafter, the 
Secretary shall, except as otherwise provided in this 
subsection, make payments to American Samoa 
equal to— 
‘‘(A) the lesser of—
494 
‘‘(i) the cost to American Samoa of 
the earned income tax credit for taxable 
years beginning in or with such calendar 
year, or 
‘‘(ii) $16,000,000, plus 
‘‘(B) in the case of calendar years 2021 
through 2025, the lesser of— 
‘‘(i) the expenditures made by Amer-
ican Samoa during such calendar year for 
education efforts with respect to individual 
taxpayers and tax return preparers relat-
ing to such earned income tax credit, or 
‘‘(ii) $50,000. 
‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN 
AN EARNED INCOME TAX CREDIT.—The Secretary 
shall not make any payments under paragraph (1) 
with respect to any calendar year unless American 
Samoa has in effect an earned income tax credit for 
taxable years beginning in or with such calendar 
year which allows a refundable tax credit to individ-
uals on the basis of the taxpayer’s earned income 
which is designed to substantially increase workforce 
participation. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any calendar year after 2021, the $16,000,000
495 
amount in paragraph (1)(A)(ii) shall be increased by 
an amount equal to— 
‘‘(A) such dollar amount, multiplied by— 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, determined by substituting ‘calendar year 
2020’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase determined under this clause shall be 
rounded to the nearest multiple of $100,000. 
‘‘(4) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subparagraphs (A), (B), and 
(C) of subsection (a)(4) shall apply for purposes of 
this subsection. 
‘‘(d) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner 
as a refund due from a credit provision referred to in sub-
section (b)(2) of such section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item: 
‘‘Sec. 7530. Application of earned income tax credit to possessions of the 
United States.’’.
496 
SEC. 9626. TEMPORARY SPECIAL RULE FOR DETERMINING 
EARNED INCOME FOR PURPOSES OF EARNED 
INCOME TAX CREDIT. 
(a) IN GENERAL.—If the earned income of the tax-
payer for the taxpayer’s first taxable year beginning in 
2021 is less than the earned income of the taxpayer for 
the taxpayer’s first taxable year beginning in 2019, the 
credit allowed under section 32 of the Internal Revenue 
Code of 1986 may, at the election of the taxpayer, be de-
termined by substituting— 
(1) such earned income for the taxpayer’s first 
taxable year beginning in 2019, for 
(2) such earned income for the taxpayer’s first 
taxable year beginning in 2021. 
(b) EARNED INCOME.— 
(1) IN GENERAL.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given 
such term under section 32(c) of the Internal Rev-
enue Code of 1986. 
(2) APPLICATION
TO
JOINT
RETURNS.—For 
purposes of subsection (a), in the case of a joint re-
turn, the earned income of the taxpayer for the first 
taxable year beginning in 2019 shall be the sum of 
the earned income of each spouse for such taxable 
year. 
(c) SPECIAL RULES.—
497 
(1) ERRORS TREATED AS MATHEMATICAL ER-
RORS.—For purposes of section 6213 of the Internal 
Revenue Code of 1986, an incorrect use on a return 
of earned income pursuant to subsection (a) shall be 
treated as a mathematical or clerical error. 
(2) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
subsection, the Internal Revenue Code of 1986 shall 
be applied without regard to any substitution under 
subsection (a). 
(d) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the application of the provisions of this section 
(other than this subsection) with respect to section 
32 of the Internal Revenue Code of 1986. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
498 
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the pro-
visions of this section (other than this subsection) 
with respect to section 32 of the Internal Revenue 
Code of 1986 if a mirror code tax system had been 
in effect in such possession. The preceding sentence 
shall not apply unless the respective possession has 
a plan, which has been approved by the Secretary of 
the Treasury, under which such possession will 
promptly distribute such payments to its residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this section shall be treated in the 
same manner as a refund due from a credit provi-
sion referred to in subsection (b)(2) of such section.
499 
PART 4—DEPENDENT CARE ASSISTANCE 
SEC. 9631. REFUNDABILITY AND ENHANCEMENT OF CHILD 
AND DEPENDENT CARE TAX CREDIT. 
(a) IN GENERAL.—Section 21 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(g) SPECIAL RULES FOR 2021.—In the case of any 
taxable year beginning after December 31, 2020, and be-
fore January 1, 2022— 
‘‘(1) CREDIT MADE REFUNDABLE.—If the tax-
payer (in the case of a joint return, either spouse) 
has a principal place of abode in the United States 
(determined as provided in section 32) for more than 
one-half of the taxable year, the credit allowed under 
subsection (a) shall be treated as a credit allowed 
under subpart C (and not allowed under this sub-
part). 
‘‘(2) INCREASE IN DOLLAR LIMIT ON AMOUNT 
CREDITABLE.—Subsection (c) shall be applied— 
‘‘(A) by substituting ‘$8,000’ for ‘$3,000’ 
in paragraph (1) thereof, and 
‘‘(B) by substituting ‘$16,000’ for ‘$6,000’ 
in paragraph (2) thereof. 
‘‘(3) INCREASE IN APPLICABLE PERCENTAGE.— 
Subsection (a)(2) shall be applied—
500 
‘‘(A) by substituting ‘50 percent’ for ‘35 
percent ’, and 
‘‘(B) 
by 
substituting 
‘$125,000’ 
for 
‘$15,000’. 
‘‘(4) APPLICATION OF PHASEOUT TO HIGH IN-
COME INDIVIDUALS.— 
‘‘(A) IN
GENERAL.—Subsection (a)(2) 
shall be applied by substituting ‘the phaseout 
percentage’ for ‘20 percent’. 
‘‘(B) PHASEOUT PERCENTAGE.—The term 
‘phaseout percentage’ means 20 percent re-
duced (but not below zero) by 1 percentage 
point for each $2,000 (or fraction thereof) by 
which the taxpayer’s adjusted gross income for 
the taxable year exceeds $400,000.’’. 
(b) APPLICATION OF CREDIT IN POSSESSIONS.—Sec-
tion 21 of such Code, as amended by subsection (a), is 
amended by adding at the end the following new sub-
section: 
‘‘(h) APPLICATION OF CREDIT IN POSSESSIONS.— 
‘‘(1) PAYMENT TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary shall pay to 
each possession of the United States with a mirror 
code tax system amounts equal to the loss (if any) 
to that possession by reason of the application of
501 
this section (determined without regard to this sub-
section) with respect to taxable years beginning in or 
with 2021. Such amounts shall be determined by the 
Secretary based on information provided by the gov-
ernment of the respective possession. 
‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary shall pay to each possession of the United 
States which does not have a mirror code tax system 
amounts estimated by the Secretary as being equal 
to the aggregate benefits that would have been pro-
vided to residents of such possession by reason of 
this section with respect to taxable years beginning 
in or with 2021 if a mirror code tax system had 
been in effect in such possession. The preceding sen-
tence shall not apply unless the respective possession 
has a plan, which has been approved by the Sec-
retary, under which such possession will promptly 
distribute such payments to its residents. 
‘‘(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—In the 
case of any taxable year beginning in or with 2021, 
no credit shall be allowed under this section to any 
individual—
502 
‘‘(A) to whom a credit is allowable against 
taxes imposed by a possession with a mirror 
code tax system by reason of this section, or 
‘‘(B) who is eligible for a payment under 
a plan described in paragraph (2). 
‘‘(4) MIRROR
CODE
TAX
SYSTEM.—For pur-
poses of this subsection, the term ‘mirror code tax 
system’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
reference to the income tax laws of the United 
States as if such possession were the United States. 
‘‘(5) TREATMENT
OF
PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, the payments under this subsection shall be 
treated in the same manner as a refund due from 
a credit provision referred to in subsection (b)(2) of 
such section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code, as 
amended by the preceding provisions of this Act, is 
amended by inserting ‘‘21 by reason of subsection 
(g) thereof,’’ before ‘‘24’’.
503 
(2) Section 1324(b)(2) of title 31, United 
States Code (as amended by the preceding provi-
sions of this title), is amended by inserting ‘‘21,’’ be-
fore ‘‘24’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9632. INCREASE IN EXCLUSION FOR EMPLOYER-PRO-
VIDED DEPENDENT CARE ASSISTANCE. 
(a) IN GENERAL.—Section 129(a)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(D) SPECIAL
RULE
FOR
2021.—In the 
case of any taxable year beginning after Decem-
ber 31, 2020, and before January 1, 2022, sub-
paragraph (A) shall be applied be substituting 
‘$10,500 (half such dollar amount’ for ‘$5,000 
($2,500’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
(c) RETROACTIVE PLAN AMENDMENTS.—A plan that 
otherwise satisfies all applicable requirements of sections 
125 and 129 of the Internal Revenue Code of 1986 (in-
cluding any rules or regulations thereunder) shall not fail
504 
to be treated as a cafeteria plan or dependent care assist-
ance program merely because such plan is amended pursu-
ant to a provision under this section and such amendment 
is retroactive, if— 
(1) such amendment is adopted no later than 
the last day of the plan year in which the amend-
ment is effective, and 
(2) the plan is operated consistent with the 
terms of such amendment during the period begin-
ning on the effective date of the amendment and 
ending on the date the amendment is adopted. 
PART 5—CREDITS FOR PAID SICK AND FAMILY 
LEAVE 
SEC. 9641. PAYROLL CREDITS. 
(a) IN GENERAL.—Chapter 21 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subchapter: 
‘‘Subchapter D—Credits 
‘‘Sec. 3131. Credit for paid sick leave. 
‘‘Sec. 3132. Payroll credit for paid family leave. 
‘‘Sec. 3133. Special rule related to tax on employers. 
‘‘SEC. 3131. CREDIT FOR PAID SICK LEAVE. 
‘‘(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against applicable employment 
taxes for each calendar quarter an amount equal to 100 
percent of the qualified sick leave wages paid by such em-
ployer with respect to such calendar quarter.
505 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) WAGES
TAKEN
INTO
ACCOUNT.—The 
amount of qualified sick leave wages taken into ac-
count under subsection (a) with respect to any indi-
vidual shall not exceed $200 ($511 in the case of 
any day any portion of which is paid sick time de-
scribed in paragraph (1), (2), or (3) of section 
5102(a) of the Emergency Paid Sick Leave Act, ap-
plied with the modification described in subsection 
(c)(2)(A)(i)) for any day (or portion thereof) for 
which the individual is paid qualified sick leave 
wages. 
‘‘(2) OVERALL
LIMITATION
ON
NUMBER
OF 
DAYS TAKEN INTO ACCOUNT.—The aggregate num-
ber of days taken into account under paragraph (1) 
for any calendar quarter shall not exceed the excess 
(if any) of— 
‘‘(A) 10, over 
‘‘(B) the aggregate number of days so 
taken into account during preceding calendar 
quarters in such calendar year (other than the 
first quarter of calendar year 2021). 
‘‘(3) CREDIT
LIMITED
TO
CERTAIN
EMPLOY-
MENT TAXES.—The credit allowed by subsection (a) 
with respect to any calendar quarter shall not exceed
506 
the applicable employment taxes for such calendar 
quarter on the wages paid with respect to the em-
ployment of all employees of the employer. 
‘‘(4) REFUNDABILITY OF EXCESS CREDIT.— 
‘‘(A) CREDIT
IS
REFUNDABLE.—If the 
amount of the credit under subsection (a) ex-
ceeds the limitation of paragraph (3) for any 
calendar quarter, such excess shall be treated 
as an overpayment that shall be refunded under 
sections 6402(a) and 6413(b). 
‘‘(B) ADVANCING CREDIT.—In anticipation 
of the credit, including the refundable portion 
under subparagraph (A), the credit shall be ad-
vanced, according to forms and instructions 
provided by the Secretary, up to an amount cal-
culated under subsection (a), subject to the lim-
its under paragraph (1) and (2), all calculated 
through the end of the most recent payroll pe-
riod in the quarter. 
‘‘(c) QUALIFIED SICK LEAVE WAGES.—For purposes 
of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified sick 
leave wages’ means wages paid by an employer 
which would be required to be paid by reason of the
507 
Emergency Paid Sick Leave Act as if such Act ap-
plied after March 31, 2021. 
‘‘(2) RULES OF APPLICATION.—For purposes of 
determining whether wages are qualified sick leave 
wages under paragraph (1)— 
‘‘(A) IN GENERAL.—The Emergency Paid 
Sick Leave Act shall be applied— 
‘‘(i) by inserting ‘, the employee is 
seeking or awaiting the results of a diag-
nostic test for, or a medical diagnosis of, 
COVID-19 and such employee has been ex-
posed to COVID-19 or the employee’s em-
ployer has requested such test or diag-
nosis, or the employee is obtaining immu-
nization related to COVID–19 or recov-
ering from any injury, disability, illness, or 
condition related to such immunization’ 
after 
‘medical 
diagnosis’ 
in 
section 
5102(a)(3) thereof, and 
‘‘(ii) by applying section 5102(b)(1) of 
such Act separately with respect to each 
calendar year after 2020 (and, in the case 
of calendar year 2021, without regard to 
the first quarter thereof).
508 
‘‘(B) 
LEAVE
MUST
MEET
REQUIRE-
MENTS.—If an employer fails to comply with 
any requirement of such Act (determined with-
out regard to section 5109 thereof) with respect 
to paid sick time (as defined in section 5110 of 
such Act), amounts paid by such employer with 
respect to such paid sick time shall not be 
taken into account as qualified sick leave wages. 
For purposes of the preceding sentence, an em-
ployer which takes an action described in sec-
tion 5104 of such Act shall be treated as failing 
to meet a requirement of such Act. 
‘‘(d) ALLOWANCE OF CREDIT FOR CERTAIN HEALTH 
PLAN EXPENSES.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed under subsection (a) shall be increased by so 
much of the employer’s qualified health plan ex-
penses as are properly allocable to the qualified sick 
leave wages for which such credit is so allowed. 
‘‘(2) QUALIFIED HEALTH PLAN EXPENSES.— 
For purposes of this subsection, the term ‘qualified 
health plan expenses’ means amounts paid or in-
curred by the employer to provide and maintain a 
group health plan (as defined in section 5000(b)(1)), 
but only to the extent that such amounts are ex-
509 
cluded from the gross income of employees by reason 
of section 106(a). 
‘‘(3) ALLOCATION
RULES.—For purposes of 
this section, qualified health plan expenses shall be 
allocated to qualified sick leave wages in such man-
ner as the Secretary may prescribe. Except as other-
wise provided by the Secretary, such allocation shall 
be treated as properly made if made on the basis of 
being pro rata among covered employees and pro 
rata on the basis of periods of coverage (relative to 
the time periods of leave to which such wages re-
late). 
‘‘(e) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) APPLICABLE
EMPLOYMENT
TAXES.—For 
purposes of this section, the term ‘applicable employ-
ment taxes’ means the following: 
‘‘(A) The taxes imposed under section 
3111(b). 
‘‘(B) So much of the taxes imposed under 
section 3221(a) as are attributable to the rate 
in effect under section 3111(b). 
‘‘(2) WAGES.—For purposes of this section, the 
term ‘wages’ means wages (as defined in section 
3121(a), determined without regard to paragraphs 
(1) through (22) of section 3121(b)) and compensa-
510 
tion (as defined in section 3231(e), determined with-
out regard to the sentence in paragraph (1) thereof 
which begins ‘Such term does not include remunera-
tion’). 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—For pur-
poses of chapter 1, the gross income of the em-
ployer, for the taxable year which includes the last 
day of any calendar quarter with respect to which a 
credit is allowed under this section, shall be in-
creased by the amount of such credit. Any wages 
taken into account in determining the credit allowed 
under this section shall not be taken into account for 
purposes of determining the credit allowed under 
sections 45A, 45P, 45S, 51, 3132, and 3134. In the 
case of any credit allowed under section 2301 of the 
CARES Act or section 41 with respect to wages 
taken into account under this section, the credit al-
lowed under this section shall be reduced by the por-
tion of the credit allowed under such section 2301 
or section 41 which is attributable to such wages. 
‘‘(4) ELECTION TO NOT TAKE CERTAIN WAGES 
INTO ACCOUNT.—This section shall not apply to so 
much of the qualified sick leave wages paid by an el-
igible employer as such employer elects (at such time
511 
and in such manner as the Secretary may prescribe) 
to not take into account for purposes of this section. 
‘‘(5) CERTAIN GOVERNMENTAL EMPLOYERS.— 
No credit shall be allowed under this section to the 
Government of the United States or to any agency 
or instrumentality thereof. The preceding sentence 
shall not apply to any organization described in sec-
tion 501(c)(1) and exempt from tax under section 
501(a). 
‘‘(6) EXTENSION OF LIMITATION ON ASSESS-
MENT.—Notwithstanding section 6501, the limita-
tion on the time period for the assessment of any 
amount attributable to a credit claimed under this 
section shall not expire before the date that is 5 
years after the later of— 
‘‘(A) the date on which the original return 
which includes the calendar quarter with re-
spect to which such credit is determined is filed, 
or 
‘‘(B) the date on which such return is 
treated as filed under section 6501(b)(2). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carry out the purposes of this section, including—
512 
‘‘(1) regulations or other guidance to prevent 
the avoidance of the purposes of the limitations 
under this section, 
‘‘(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section, 
‘‘(3) regulations or other guidance providing for 
waiver of penalties for failure to deposit amounts in 
anticipation of the allowance of the credit allowed 
under this section, 
‘‘(4) regulations or other guidance for recap-
turing the benefit of credits determined under this 
section in cases where there is a subsequent adjust-
ment to the credit determined under subsection (a), 
‘‘(5) regulations or other guidance to ensure 
that the wages taken into account under this section 
conform with the paid sick time required to be pro-
vided under the Emergency Paid Sick Leave Act, 
and 
‘‘(6) regulations or other guidance to permit the 
advancement of the credit determined under sub-
section (a). 
‘‘(g) APPLICATION OF SECTION.—This section shall 
apply only to wages paid with respect to the period begin-
ning on April 1, 2021, and ending on September 30, 2021.
513 
‘‘(h) TREATMENT
OF DEPOSITS.—The Secretary 
shall waive any penalty under section 6656 for any failure 
to make a deposit of applicable employment taxes if the 
Secretary determines that such failure was due to the an-
ticipation of the credit allowed under this section. 
‘‘(i) 
NON-DISCRIMINATION
REQUIREMENT.—No 
credit shall be allowed under this section to any employer 
for any calendar quarter if such employer, with respect 
to the availability of the provision of qualified sick leave 
wages to which this section otherwise applies for such cal-
endar quarter, discriminates in favor of highly com-
pensated employees (within the meaning of section 
414(q)), full-time employees, or employees on the basis of 
employment tenure with such employer. 
‘‘SEC. 3132. PAYROLL CREDIT FOR PAID FAMILY LEAVE. 
‘‘(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against applicable employment 
taxes for each calendar quarter an amount equal to 100 
percent of the qualified family leave wages paid by such 
employer with respect to such calendar quarter. 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) WAGES
TAKEN
INTO
ACCOUNT.—The 
amount of qualified family leave wages taken into 
account under subsection (a) with respect to any in-
dividual shall not exceed—
514 
‘‘(A) for any day (or portion thereof) for 
which the individual is paid qualified family 
leave wages, $200, and 
‘‘(B) in the aggregate with respect to all 
calendar quarters, $12,000. 
‘‘(2) CREDIT
LIMITED
TO
CERTAIN
EMPLOY-
MENT TAXES.—The credit allowed by subsection (a) 
with respect to any calendar quarter shall not exceed 
the applicable employment taxes for such calendar 
quarter (reduced by any credits allowed under sec-
tion 3131) on the wages paid with respect to the em-
ployment of all employees of the employer. 
‘‘(3) REFUNDABILITY OF EXCESS CREDIT.— 
‘‘(A) CREDIT
IS
REFUNDABLE.—If the 
amount of the credit under subsection (a) ex-
ceeds the limitation of paragraph (2) for any 
calendar quarter, such excess shall be treated 
as an overpayment that shall be refunded under 
sections 6402(a) and 6413(b). 
‘‘(B) ADVANCING CREDIT.—In anticipation 
of the credit, including the refundable portion 
under subparagraph (A), the credit shall be ad-
vanced, according to forms and instructions 
provided by the Secretary, up to an amount cal-
culated under subsection (a), subject to the lim-
515 
its under paragraph (1) and (2), all calculated 
through the end of the most recent payroll pe-
riod in the quarter. 
‘‘(c) QUALIFIED FAMILY LEAVE WAGES.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified family leave wages’ means 
wages paid by an employer which would be required 
to be paid by reason of the Emergency Family and 
Medical Leave Expansion Act (including the amend-
ments made by such Act) as if such Act (and 
amendments made by such Act) applied after March 
31, 2021. 
‘‘(2) RULES OF APPLICATION.— 
‘‘(A) IN GENERAL.—For purposes of deter-
mining whether wages are qualified family leave 
wages under paragraph (1)— 
‘‘(i) section 110(a)(2)(A) of the Fam-
ily and Medical Leave Act of 1993 shall be 
applied by inserting ‘or any reason for 
leave described in section 5102(a) of the 
Families First Coronavirus Response Act, 
or the employee is seeking or awaiting the 
results of a diagnostic test for, or a med-
ical diagnosis of, COVID-19 and such em-
ployee has been exposed to COVID-19 or
516 
the employee’s employer has requested 
such test or diagnosis, or the employee is 
obtaining immunization related to COVID– 
19 or recovering from any injury, dis-
ability, illness, or condition related to such 
immunization’ after ‘public health emer-
gency’, and 
‘‘(ii) section 110(b) of such Act shall 
be applied— 
‘‘(I) without regard to paragraph 
(1) thereof, 
‘‘(II) by striking ‘after taking 
leave after such section for 10 days’ 
in paragraph (2)(A) thereof, and 
‘‘(III) by substituting ‘$12,000’ 
for ‘$10,000’ in paragraph (2)(B)(ii) 
thereof. 
‘‘(B) 
LEAVE
MUST
MEET
REQUIRE-
MENTS.—For purposes of determining whether 
wages would be required to be paid under para-
graph (1), if an employer fails to comply with 
any requirement of the Family and Medical 
Leave Act of 1993 or the Emergency Family 
and Medical Leave Expansion Act (determined 
without regard to any time limitation under sec-
517 
tion 102(a)(1)(F) of the Family and Medical 
Leave Act of 1994) with respect to any leave 
provided for a qualifying need related to a pub-
lic health emergency (as defined in section 110 
of such Act, applied as described in subpara-
graph (A)(i)), amounts paid by such employer 
with respect to such leave shall not be taken 
into account as qualified family leave wages. 
For purposes of the preceding sentence, an em-
ployer which takes an action described in sec-
tion 105 of the Family and Medical Leave Act 
of 1993 shall be treated as failing to meet a re-
quirement of such Act. 
‘‘(d) ALLOWANCE OF CREDIT FOR CERTAIN HEALTH 
PLAN EXPENSES.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowed under subsection (a) shall be increased by so 
much of the employer’s qualified health plan ex-
penses as are properly allocable to the qualified fam-
ily leave wages for which such credit is so allowed. 
‘‘(2) QUALIFIED HEALTH PLAN EXPENSES.— 
For purposes of this subsection, the term ‘qualified 
health plan expenses’ means amounts paid or in-
curred by the employer to provide and maintain a 
group health plan (as defined in section 5000(b)(1)),
518 
but only to the extent that such amounts are ex-
cluded from the gross income of employees by reason 
of section 106(a). 
‘‘(3) ALLOCATION
RULES.—For purposes of 
this section, qualified health plan expenses shall be 
allocated to qualified family leave wages in such 
manner as the Secretary may prescribe. Except as 
otherwise provided by the Secretary, such allocation 
shall be treated as properly made if made on the 
basis of being pro rata among covered employees 
and pro rata on the basis of periods of coverage (rel-
ative to the time periods of leave to which such 
wages relate). 
‘‘(e) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) APPLICABLE
EMPLOYMENT
TAXES.—For 
purposes of this section, the term ‘applicable employ-
ment taxes’ means the following: 
‘‘(A) The taxes imposed under section 
3111(b). 
‘‘(B) So much of the taxes imposed under 
section 3221(a) as are attributable to the rate 
in effect under section 3111(b). 
‘‘(2) WAGES.—For purposes of this section, the 
term ‘wages’ means wages (as defined in section 
3121(a), determined without regard to paragraphs
519 
(1) through (22) of section 3121(b)) and compensa-
tion (as defined in section 3231(e), determined with-
out regard to the sentence in paragraph (1) thereof 
which begins ‘Such term does not include remunera-
tion’). 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—For pur-
poses of chapter 1, the gross income of the em-
ployer, for the taxable year which includes the last 
day of any calendar quarter with respect to which a 
credit is allowed under this section, shall be in-
creased by the amount of such credit. Any wages 
taken into account in determining the credit allowed 
under this section shall not be taken into account for 
purposes of determining the credit allowed under 
sections 45A, 45P, 45S, 51, 3131, and 3134. In the 
case of any credit allowed under section 2301 of the 
CARES Act or section 41 with respect to wages 
taken into account under this section, the credit al-
lowed under this section shall be reduced by the por-
tion of the credit allowed under such section 2301 
or section 41 which is attributable to such wages. 
‘‘(4) ELECTION TO NOT TAKE CERTAIN WAGES 
INTO ACCOUNT.—This section shall not apply to so 
much of the qualified family leave wages paid by an 
eligible employer as such employer elects (at such
520 
time and in such manner as the Secretary may pre-
scribe) to not take into account for purposes of this 
section. 
‘‘(5) CERTAIN GOVERNMENTAL EMPLOYERS.— 
No credit shall be allowed under this section to the 
Government of the United States or to any agency 
or instrumentality thereof. The preceding sentence 
shall not apply to any organization described in sec-
tion 501(c)(1) and exempt from tax under section 
501(a). 
‘‘(6) EXTENSION OF LIMITATION ON ASSESS-
MENT.—Notwithstanding section 6501, the limita-
tion on the time period for the assessment of any 
amount attributable to a credit claimed under this 
section shall not expire before the date that is 5 
years after the later of— 
‘‘(A) the date on which the original return 
which includes the calendar quarter with re-
spect to which such credit is determined is filed, 
or 
‘‘(B) the date on which such return is 
treated as filed under section 6501(b)(2). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carry out the purposes of this section, including—
521 
‘‘(1) regulations or other guidance to prevent 
the avoidance of the purposes of the limitations 
under this section, 
‘‘(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section, 
‘‘(3) regulations or other guidance providing for 
waiver of penalties for failure to deposit amounts in 
anticipation of the allowance of the credit allowed 
under this section, 
‘‘(4) regulations or other guidance for recap-
turing the benefit of credits determined under this 
section in cases where there is a subsequent adjust-
ment to the credit determined under subsection (a), 
‘‘(5) regulations or other guidance to ensure 
that the wages taken into account under this section 
conform with the paid leave required to be provided 
under the Emergency Family and Medical Leave Ex-
pansion Act (including the amendments made by 
such Act), and 
‘‘(6) regulations or other guidance to permit the 
advancement of the credit determined under sub-
section (a).
522 
‘‘(g) APPLICATION OF SECTION.—This section shall 
apply only to wages paid with respect to the period begin-
ning on April 1, 2021, and ending on September 30, 2021. 
‘‘(h) TREATMENT
OF DEPOSITS.—The Secretary 
shall waive any penalty under section 6656 for any failure 
to make a deposit of applicable employment taxes if the 
Secretary determines that such failure was due to the an-
ticipation of the credit allowed under this section. 
‘‘(i) 
NON-DISCRIMINATION
REQUIREMENT.—No 
credit shall be allowed under this section to any employer 
for any calendar quarter if such employer, with respect 
to the availability of the provision of qualified family leave 
wages to which this section otherwise applies for such cal-
endar quarter, discriminates in favor of highly com-
pensated employees (within the meaning of section 
414(q)), full-time employees, or employees on the basis of 
employment tenure with such employer. 
‘‘SEC. 3133. SPECIAL RULE RELATED TO TAX ON EMPLOY-
ERS. 
‘‘(a) IN GENERAL.—The credit allowed by section 
3131 and the credit allowed by section 3132 shall each 
be increased by the amount of the taxes imposed by sub-
sections (a) and (b) of section 3111 and section 3221(a) 
on qualified sick leave wages, or qualified family leave
523 
wages, for which credit is allowed under such section 3131 
or 3132 (respectively). 
‘‘(b) DENIAL OF DOUBLE BENEFIT.—For denial of 
double benefit with respect to the credit increase under 
subsection (a), see sections 3131(e)(3) and 3132(e)(3).’’. 
(b) REFUNDS.—Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting 
‘‘3131, 3132,’’ before ‘‘6428’’. 
(c) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 21 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
item: 
‘‘SUBCHAPTER D—CREDITS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid with respect to 
calendar quarters beginning after March 31, 2021. 
SEC. 9642. CREDIT FOR SICK LEAVE FOR CERTAIN SELF- 
EMPLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible self-em-
ployed individual, there shall be allowed as a credit against 
the tax imposed by chapter 1 of the Internal Revenue Code 
of 1986 for any taxable year an amount equal to the quali-
fied sick leave equivalent amount with respect to the indi-
vidual. 
(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For 
purposes of this section—
524 
(1) IN GENERAL.—The term ‘‘eligible self-em-
ployed individual’’ means an individual who— 
(A) regularly carries on any trade or busi-
ness within the meaning of section 1402 of the 
Internal Revenue Code of 1986, and 
(B) would be entitled to receive paid leave 
during the taxable year pursuant to the Emer-
gency Paid Sick Leave Act if— 
(i) the individual were an employee of 
an employer (other than himself or her-
self), and 
(ii) such Act applied after March 31, 
2021. 
(2) RULES OF APPLICATION.—For purposes of 
paragraph (1)(B), in determining whether an indi-
vidual would be entitled to receive paid leave under 
the Emergency Paid Sick Leave Act, such Act shall 
be applied— 
(A) by inserting ‘‘, the employee is seeking 
or awaiting the results of a diagnostic test for, 
or a medical diagnosis of, COVID-19 and such 
employee has been exposed to COVID-19 or is 
unable to work pending the results of such test 
or diagnosis, or the employee is obtaining im-
munization related to COVID–19 or recovering
525 
from any injury, disability, illness, or condition 
related to such immunization’’ after ‘‘medical 
diagnosis’’ in section 5102(a)(3) of such Act, 
and 
(B) by applying section 5102(b)(1) of such 
Act separately with respect to each taxable 
year. 
(c) 
QUALIFIED
SICK
LEAVE
EQUIVALENT 
AMOUNT.—For purposes of this section— 
(1) IN
GENERAL.—The term ‘‘qualified sick 
leave equivalent amount’’ means, with respect to any 
eligible self-employed individual, an amount equal 
to— 
(A) the number of days during the taxable 
year (but not more than 10) that the individual 
is unable to perform services in any trade or 
business referred to in section 1402 of the In-
ternal Revenue Code of 1986 for a reason with 
respect to which such individual would be enti-
tled to receive sick leave as described in sub-
section (b), multiplied by 
(B) the lesser of— 
(i) $200 ($511 in the case of any day 
of paid sick time described in paragraph 
(1), (2), or (3) of section 5102(a) of the
526 
Emergency Paid Sick Leave Act, applied 
with the modification described in sub-
section (b)(2)(A)) of this section, or 
(ii) 67 percent (100 percent in the 
case of any day of paid sick time described 
in paragraph (1), (2), or (3) of section 
5102(a) of the Emergency Paid Sick Leave 
Act) of the average daily self-employment 
income of the individual for the taxable 
year. 
(2) AVERAGE
DAILY
SELF-EMPLOYMENT
IN-
COME.—For purposes of this subsection, the term 
‘‘average daily self-employment income’’ means an 
amount equal to— 
(A) the net earnings from self-employment 
of the individual for the taxable year, divided by 
(B) 260. 
(3) ELECTION TO USE PRIOR YEAR NET EARN-
INGS
FROM
SELF-EMPLOYMENT
INCOME.—In the 
case of an individual who elects (at such time and 
in such manner as the Secretary may provide) the 
application of this paragraph, paragraph (2)(A) shall 
be applied by substituting ‘‘the prior taxable year’’ 
for ‘‘the taxable year’’.
527 
(4) ELECTION TO NOT TAKE DAYS INTO AC-
COUNT.—Any day shall not be taken into account 
under paragraph (1)(A) if the eligible self-employed 
individual elects (at such time and in such manner 
as the Secretary may prescribe) to not take such day 
into account for purposes of such paragraph. 
(d) CREDIT REFUNDABLE.— 
(1) IN GENERAL.—The credit determined under 
this section shall be treated as a credit allowed to 
the taxpayer under subpart C of part IV of sub-
chapter A of chapter 1 of such Code. 
(2) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, any 
refund due from the credit determined under this 
section shall be treated in the same manner as a re-
fund due from a credit provision referred to in sub-
section (b)(2) of such section. 
(e) SPECIAL RULES.— 
(1) DOCUMENTATION.—No credit shall be al-
lowed under this section unless the individual main-
tains such documentation as the Secretary may pre-
scribe to establish such individual as an eligible self- 
employed individual. 
(2) DENIAL OF DOUBLE BENEFIT.—In the case 
of an individual who receives wages (as defined in
528 
section 3121(a) of the Internal Revenue Code of 
1986) or compensation (as defined in section 
3231(e) of such Code) paid by an employer which 
are required to be paid by reason of the Emergency 
Paid Sick Leave Act, the qualified sick leave equiva-
lent amount otherwise determined under subsection 
(c) of this section shall be reduced (but not below 
zero) to the extent that the sum of the amount de-
scribed in such subsection and in section 3131(b)(1) 
of such Code exceeds $2,000 ($5,110 in the case of 
any day any portion of which is paid sick time de-
scribed in paragraph (1), (2), or (3) of section 
5102(a) of the Emergency Paid Sick Leave Act). 
(f) APPLICATION OF SECTION.—Only days occurring 
during the period beginning on April 1, 2021, and ending 
on September 30, 2021, may be taken into account under 
subsection (c)(1)(A). 
(g) APPLICATION OF CREDIT IN CERTAIN POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary shall pay to 
each possession of the United States which has a 
mirror code tax system amounts equal to the loss (if 
any) to that possession by reason of the application 
of the provisions of this section. Such amounts shall
529 
be determined by the Secretary based on information 
provided by the government of the respective posses-
sion. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary shall pay to each possession of the United 
States which does not have a mirror code tax system 
amounts estimated by the Secretary as being equal 
to the aggregate benefits (if any) that would have 
been provided to residents of such possession by rea-
son of the provisions of this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary, under which such posses-
sion will promptly distribute such payments to its 
residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States.
530 
(4) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this subsection shall be treated in 
the same manner as a refund due from a credit pro-
vision referred to in subsection (b)(2) of such sec-
tion. 
(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carry out the purposes of this section, including— 
(1) regulations or other guidance to effectuate 
the purposes of this section, and 
(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section. 
SEC. 9643. CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF- 
EMPLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible self-em-
ployed individual, there shall be allowed as a credit against 
the tax imposed by chapter 1 of the Internal Revenue Code 
of 1986 for any taxable year an amount equal to 100 per-
cent of the qualified family leave equivalent amount with 
respect to the individual. 
(b) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.—For 
purposes of this section—
531 
(1) IN GENERAL.—The term ‘‘eligible self-em-
ployed individual’’ means an individual who— 
(A) regularly carries on any trade or busi-
ness within the meaning of section 1402 of the 
Internal Revenue Code of 1986, and 
(B) would be entitled to receive paid leave 
during the taxable year pursuant to the Emer-
gency Family and Medical Leave Expansion Act 
if— 
(i) the individual were an employee of 
an employer (other than himself or her-
self), 
(ii) section 102(a)(1)(F) of the Fam-
ily and Medical Leave Act of 1993 applied 
after March 31, 2021. 
(2) RULES OF APPLICATION.—For purposes of 
paragraph (1)(B), in determining whether an indi-
vidual would be entitled to receive paid leave under 
the Emergency Family and Medical Leave Act— 
(A) section 110(a)(2)(A) of the Family and 
Medical Leave Act of 1993 shall be applied by 
inserting ‘‘or any reason for leave described in 
section 
5102(a) 
of 
the 
Families 
First 
Coronavirus Response Act, or the employee is 
seeking or awaiting the results of a diagnostic