104 
‘‘(4) Chapters 30, 32, 33, 34, 35, and 36 of this 
title.’’. 
(C) Section 16163(e) of title 10, United 
States Code, is amended by inserting ‘‘33,’’ after 
‘‘32,’’. 
(2) ADDITIONAL CONFORMING AMENDMENTS.— 
(A) Title 38, United States Code, is further 
amended by inserting ‘‘33,’’ after ‘‘32,’’ each 
place it appears in the following provisions: 
(i) In subsections (b) and (e)(1) of sec-
tion 3485. 
(ii) In section 3688(b). 
(iii) In subsections (a)(1), (c)(1), 
(c)(1)(G), (d), and (e)(2) of section 3689. 
(iv) In section 3690( b)(3)(A). 
(v) In subsections (a) and (b) of section 
3692. 
(vi) In section 3697(a). 
(B) Section 3697A(b)(1) of such title is 
amended by striking ‘‘or 32’’ and inserting ‘‘32, 
or 33’’. 
(c) APPLICABILITY TO INDIVIDUALS UNDER MONT-
GOMERY GI BILL PROGRAM.— 
(1) INDIVIDUALS ELIGIBLE TO ELECT PARTICIPA-
TION
IN
POST-9/11
EDUCATIONAL
ASSISTANCE.—An
105 
individual may elect to receive educational assistance 
under chapter 33 of title 38, United States Code (as 
added by subsection (a)), if such individual— 
(A) as of August 1, 2009— 
(i) is entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, and has used, but retains un-
used, entitlement under that chapter; 
(ii) is entitled to educational assist-
ance under chapter 107, 1606, or 1607 of 
title 10, United States Code, and has used, 
but retains unused, entitlement under the 
applicable chapter; 
(iii) is entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, but has not used any entitle-
ment under that chapter; 
(iv) is entitled to educational assist-
ance under chapter 107, 1606, or 1607 of 
title 10, United States Code, but has not 
used any entitlement under such chapter; 
(v) is a member of the Armed Forces 
who is eligible for receipt of basic edu-
cational assistance under chapter 30 of title 
38, United States Code, and is making con-
106 
tributions toward such assistance under sec-
tion 3011(b) or 3012(c) of such title; or 
(vi) is a member of the Armed Forces 
who is not entitled to basic educational as-
sistance under chapter 30 of title 38, United 
States Code, by reason of an election under 
section 3011(c)(1) or 3012(d)(1) of such 
title; and 
(B) as of the date of the individual’s elec-
tion under this paragraph, meets the require-
ments for entitlement to educational assistance 
under chapter 33 of title 38, United States Code 
(as so added). 
(2) CESSATION OF CONTRIBUTIONS TOWARD GI 
BILL.—Effective as of the first month beginning on or 
after the date of an election under paragraph (1) of 
an individual described by subparagraph (A)(v) of 
that paragraph, the obligation of the individual to 
make contributions under section 3011(b) or 3012(c) 
of title 38, United States Code, as applicable, shall 
cease, and the requirements of such section shall be 
deemed to be no longer applicable to the individual. 
(3) REVOCATION OF REMAINING TRANSFERRED 
ENTITLEMENT.—
107 
(A) ELECTION TO REVOKE.—If, on the date 
an individual described in subparagraph (A)(i) 
or (A)(iii) of paragraph (1) makes an election 
under that paragraph, a transfer of the entitle-
ment of the individual to basic educational as-
sistance under section 3020 of title 38, United 
States Code, is in effect and a number of months 
of the entitlement so transferred remain unuti-
lized, the individual may elect to revoke all or a 
portion of the entitlement so transferred that re-
mains unutilized. 
(B) AVAILABILITY
OF
REVOKED
ENTITLE-
MENT.—Any entitlement revoked by an indi-
vidual under this paragraph shall no longer be 
available to the dependent to whom transferred, 
but shall be available to the individual instead 
for educational assistance under chapter 33 of 
title 38, United States Code (as so added), in ac-
cordance with the provisions of this subsection. 
(C) AVAILABILITY OF UNREVOKED ENTITLE-
MENT.—Any entitlement described in subpara-
graph (A) that is not revoked by an individual 
in accordance with that subparagraph shall re-
main available to the dependent or dependents 
concerned in accordance with the current trans-
108 
fer of such entitlement under section 3020 of title 
38, United States Code. 
(4) POST-9/11 EDUCATIONAL ASSISTANCE.— 
(A) IN GENERAL.—Subject to subparagraph 
(B) and except as provided in paragraph (5), an 
individual making an election under paragraph 
(1) shall be entitled to educational assistance 
under chapter 33 of title 38, United States Code 
(as so added), in accordance with the provisions 
of such chapter, instead of basic educational as-
sistance under chapter 30 of title 38, United 
States Code, or educational assistance under 
chapter 107, 1606, or 1607 of title 10, United 
States Code, as applicable. 
(B) LIMITATION ON ENTITLEMENT FOR CER-
TAIN INDIVIDUALS.—In the case of an individual 
making an election under paragraph (1) who is 
described by subparagraph (A)(i) of that para-
graph, the number of months of entitlement of 
the individual to educational assistance under 
chapter 33 of title 38, United States Code (as so 
added), shall be the number of months equal to— 
(i) the number of months of unused en-
titlement of the individual under chapter 30
109 
of title 38, United States Code, as of the 
date of the election, plus 
(ii) the number of months, if any, of 
entitlement revoked by the individual under 
paragraph (3)(A). 
(5) CONTINUING ENTITLEMENT TO EDUCATIONAL 
ASSISTANCE NOT AVAILABLE UNDER 9/11 ASSISTANCE 
PROGRAM.— 
(A) IN GENERAL.—In the event educational 
assistance to which an individual making an 
election under paragraph (1) would be entitled 
under chapter 30 of title 38, United States Code, 
or chapter 107, 1606, or 1607 of title 10, United 
States Code, as applicable, is not authorized to 
be available to the individual under the provi-
sions of chapter 33 of title 38, United States 
Code (as so added), the individual shall remain 
entitled to such educational assistance in accord-
ance with the provisions of the applicable chap-
ter. 
(B) CHARGE FOR USE OF ENTITLEMENT.— 
The utilization by an individual of entitlement 
under subparagraph (A) shall be chargeable 
against the entitlement of the individual to edu-
cational assistance under chapter 33 of title 38,
110 
United States Code (as so added), at the rate of 
one month of entitlement under such chapter 33 
for each month of entitlement utilized by the in-
dividual under subparagraph (A) (as determined 
as if such entitlement were utilized under the 
provisions of chapter 30 of title 38, United 
States Code, or chapter 107, 1606, or 1607 of 
title 10, United States Code, as applicable). 
(6) ADDITIONAL
POST-9/11
ASSISTANCE
FOR 
MEMBERS HAVING MADE CONTRIBUTIONS TOWARD GI 
BILL.— 
(A) ADDITIONAL ASSISTANCE.—In the case 
of an individual making an election under para-
graph (1) who is described by clause (i), (iii), or 
(v) of subparagraph (A) of that paragraph, the 
amount of educational assistance payable to the 
individual under chapter 33 of title 38, United 
States Code (as so added), as a monthly stipend 
payable under paragraph (1)(B) of section 
3313(c) of such title (as so added), or under 
paragraphs (2) through (7) of that section (as 
applicable), shall be the amount otherwise pay-
able as a monthly stipend under the applicable 
paragraph increased by the amount equal to—
111 
(i) the total amount of contributions 
toward basic educational assistance made 
by the individual under section 3011(b) or 
3012(c) of title 38, United States Code, as 
of the date of the election, multiplied by 
(ii) the fraction— 
(I) the numerator of which is— 
(aa) the number of months of 
entitlement to basic educational 
assistance under chapter 30 of 
title 38, United States Code, re-
maining to the individual at the 
time of the election; plus 
(bb) the number of months, if 
any, of entitlement under such 
chapter 30 revoked by the indi-
vidual under paragraph (3)(A); 
and 
(II) the denominator of which is 
36 months. 
(B) MONTHS OF REMAINING ENTITLEMENT 
FOR CERTAIN INDIVIDUALS.—In the case of an 
individual covered by subparagraph (A) who is 
described by paragraph (1)(A)(v), the number of 
months of entitlement to basic educational assist-
112 
ance remaining to the individual for purposes of 
subparagraph (A)(ii)(I)(aa) shall be 36 months. 
(C) TIMING
OF
PAYMENT.—The amount 
payable with respect to an individual under sub-
paragraph (A) shall be paid to the individual to-
gether with the last payment of the monthly sti-
pend payable to the individual under paragraph 
(1)(B) of section 3313(c) of title 38, United 
States Code (as so added), or under paragraphs 
(2) through (7) of that section (as applicable), 
before the exhaustion of the individual’s entitle-
ment to educational assistance under chapter 33 
of such title (as so added). 
(7) CONTINUING ENTITLEMENT TO ADDITIONAL 
ASSISTANCE
FOR
CRITICAL
SKILLS
OR
SPECIALITY 
AND
ADDITIONAL
SERVICE.—An individual making 
an election under paragraph (1)(A) who, at the time 
of the election, is entitled to increased educational as-
sistance under section 3015(d) of title 38, United 
States Code, or section 16131(i) of title 10, United 
States Code, or supplemental educational assistance 
under subchapter III of chapter 30 of title 38, United 
States Code, shall remain entitled to such increased 
educational assistance or supplemental educational 
assistance in the utilization of entitlement to edu-
113 
cational assistance under chapter 33 of title 38, 
United States Code (as so added), in an amount 
equal to the quarter, semester, or term, as applicable, 
equivalent of the monthly amount of such increased 
educational assistance or supplemental educational 
assistance payable with respect to the individual at 
the time of the election. 
(8) IRREVOCABILITY OF ELECTIONS.—An election 
under paragraph (1) or (3)(A) is irrevocable. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on August 1, 
2009. 
INCREASE IN AMOUNTS OF BASIC EDUCATIONAL 
ASSISTANCE UNDER THE MONTGOMERY GI BILL 
SEC. 3004. (a) EDUCATIONAL ASSISTANCE BASED ON 
THREE-YEAR PERIOD
OF OBLIGATED SERVICE.—Sub-
section (a)(1) of section 3015 of title 38, United States Code, 
is amended— 
(1) by striking subparagraphs (A) through (C) 
and inserting the following new subparagraph: 
‘‘(A) for months occurring during the period be-
ginning on August 1, 2008, and ending on the last 
day of fiscal year 2009, $1,321; and’’; and 
(2) by redesignating subparagraph (D) as sub-
paragraph (B).
114 
(b) EDUCATIONAL ASSISTANCE BASED ON TWO-YEAR 
PERIOD
OF OBLIGATED SERVICE.—Subsection (b)(1) of 
such section is amended— 
(1) by striking subparagraphs (A) through (C) 
and inserting the following new subparagraph: 
‘‘(A) for months occurring during the period be-
ginning on August 1, 2008, and ending on the last 
day of fiscal year 2009, $1,073; and’’; and 
(2) by redesignating subparagraph (D) as sub-
paragraph (B). 
(c) MODIFICATION OF MECHANISM FOR COST-OF-LIV-
ING ADJUSTMENTS.—Subsection (h)(1) of such section is 
amended by striking subparagraphs (A) and (B) and in-
serting the following new subparagraphs: 
‘‘(A) the average cost of undergraduate tuition in 
the United States, as determined by the National 
Center for Education Statistics, for the last academic 
year preceding the beginning of the fiscal year for 
which the increase is made, exceeds 
‘‘(B) the average cost of undergraduate tuition in 
the United States, as so determined, for the academic 
year preceding the academic year described in sub-
paragraph (A).’’. 
(d) EFFECTIVE DATE.—
115 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on August 1, 2008. 
(2) NO COST-OF-LIVING ADJUSTMENT FOR FISCAL 
YEAR 2009.—The adjustment required by subsection 
(h) of section 3015 of title 38, United States Code (as 
amended by this section), in rates of basic educational 
assistance payable under subsections (a) and (b) of 
such section (as so amended) shall not be made for 
fiscal year 2009. 
MODIFICATION OF AMOUNT AVAILABLE FOR REIMBURSE-
MENT
OF
STATE
AND
LOCAL
AGENCIES
ADMIN-
ISTERING VETERANS EDUCATION BENEFITS 
SEC. 3005. Section 3674(a)(4) of title 38, United 
States Code, is amended by striking ‘‘may not exceed’’ and 
all that follows through the end and inserting ‘‘shall be 
$19,000,000.’’. 
TITLE IV—EMERGENCY UNEMPLOYMENT 
COMPENSATION 
FEDERAL-STATE AGREEMENTS 
SEC. 4001. (a) IN GENERAL.—Any State which desires 
to do so may enter into and participate in an agreement 
under this title with the Secretary of Labor (in this title 
referred to as the ‘‘Secretary’’). Any State which is a party 
to an agreement under this title may, upon providing 30 
days’ written notice to the Secretary, terminate such agree-
ment.
116 
(b) PROVISIONS
OF AGREEMENT.—Any agreement 
under subsection (a) shall provide that the State agency of 
the State will make payments of emergency unemployment 
compensation to individuals who— 
(1) have exhausted all rights to regular com-
pensation under the State law or under Federal law 
with respect to a benefit year (excluding any benefit 
year that ended before May 1, 2007); 
(2) have no rights to regular compensation or ex-
tended compensation with respect to a week under 
such law or any other State unemployment compensa-
tion law or to compensation under any other Federal 
law (except as provided under subsection (e)); and 
(3) are not receiving compensation with respect 
to such week under the unemployment compensation 
law of Canada. 
(c) EXHAUSTION OF BENEFITS.—For purposes of sub-
section (b)(1), an individual shall be deemed to have ex-
hausted such individual’s rights to regular compensation 
under a State law when— 
(1) no payments of regular compensation can be 
made under such law because such individual has re-
ceived all regular compensation available to such in-
dividual based on employment or wages during such 
individual’s base period; or
117 
(2) such individual’s rights to such compensation 
have been terminated by reason of the expiration of 
the benefit year with respect to which such rights ex-
isted. 
(d) WEEKLY BENEFIT AMOUNT, ETC.—For purposes 
of any agreement under this title— 
(1) the amount of emergency unemployment 
compensation which shall be payable to any indi-
vidual for any week of total unemployment shall be 
equal to the amount of the regular compensation (in-
cluding dependents’ allowances) payable to such indi-
vidual during such individual’s benefit year under 
the State law for a week of total unemployment; 
(2) the terms and conditions of the State law 
which apply to claims for regular compensation and 
to the payment thereof shall apply to claims for emer-
gency unemployment compensation and the payment 
thereof, except where otherwise inconsistent with the 
provisions of this title or with the regulations or oper-
ating instructions of the Secretary promulgated to 
carry out this title; and 
(3) the maximum amount of emergency unem-
ployment compensation payable to any individual for 
whom an emergency unemployment compensation ac-
count is established under section 4002 shall not ex-
118 
ceed the amount established in such account for such 
individual. 
(e) ELECTION
BY
STATES.—Notwithstanding any 
other provision of Federal law (and if State law permits), 
the Governor of a State that is in an extended benefit period 
may provide for the payment of emergency unemployment 
compensation prior to extended compensation to individ-
uals who otherwise meet the requirements of this section. 
EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT 
SEC. 4002. (a) IN GENERAL.—Any agreement under 
this title shall provide that the State will establish, for each 
eligible individual who files an application for emergency 
unemployment compensation, an emergency unemployment 
compensation account with respect to such individual’s ben-
efit year. 
(b) AMOUNT IN ACCOUNT.— 
(1) IN GENERAL.—The amount established in an 
account under subsection (a) shall be equal to the less-
er of— 
(A) 50 percent of the total amount of reg-
ular compensation (including dependents’ allow-
ances) payable to the individual during the indi-
vidual’s benefit year under such law, or 
(B) 13 times the individual’s average week-
ly benefit amount for the benefit year.
119 
(2) WEEKLY BENEFIT AMOUNT.—For purposes of 
this subsection, an individual’s weekly benefit amount 
for any week is the amount of regular compensation 
(including dependents’ allowances) under the State 
law payable to such individual for such week for total 
unemployment. 
(c) SPECIAL RULE.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of this section, if, at the time that the indi-
vidual’s account is exhausted or at any time there-
after, such individual’s State is in an extended benefit 
period (as determined under paragraph (2)), then, 
such account shall be augmented by an amount equal 
to the amount originally established in such account 
(as determined under subsection (b)(1)). 
(2) EXTENDED BENEFIT PERIOD.—For purposes 
of paragraph (1), a State shall be considered to be in 
an extended benefit period, as of any given time, if— 
(A) such a period is then in effect for such 
State under the Federal-State Extended Unem-
ployment Compensation Act of 1970; 
(B) such a period would then be in effect for 
such State under such Act if section 203(d) of 
such Act—
120 
(i) were applied by substituting ‘‘4’’ 
for ‘‘5’’ each place it appears; and 
(ii) did not include the requirement 
under paragraph (1)(A); or 
(C) such a period would then be in effect for 
such State under such Act if— 
(i) section 203(f) of such Act were ap-
plied to such State (regardless of whether 
the State by law had provided for such ap-
plication); and 
(ii) such section 203(f)— 
(I) were applied by substituting 
‘6.0’ for ‘6.5’ in paragraph (1)(A)(i); 
and 
(II) did not include the require-
ment under paragraph (1)(A)(ii). 
PAYMENTS TO STATES HAVING AGREEMENTS FOR THE 
PAYMENT OF EMERGENCY UNEMPLOYMENT COMPENSATION 
SEC. 4003. (a) GENERAL RULE.—There shall be paid 
to each State that has entered into an agreement under this 
title an amount equal to 100 percent of the emergency un-
employment compensation paid to individuals by the State 
pursuant to such agreement. 
(b) TREATMENT
OF
REIMBURSABLE
COMPENSA-
TION.—No payment shall be made to any State under this 
section in respect of any compensation to the extent the
121 
State is entitled to reimbursement in respect of such com-
pensation under the provisions of any Federal law other 
than this title or chapter 85 of title 5, United States Code. 
A State shall not be entitled to any reimbursement under 
such chapter 85 in respect of any compensation to the extent 
the State is entitled to reimbursement under this title in 
respect of such compensation. 
(c) DETERMINATION OF AMOUNT.—Sums payable to 
any State by reason of such State having an agreement 
under this title shall be payable, either in advance or by 
way of reimbursement (as may be determined by the Sec-
retary), in such amounts as the Secretary estimates the 
State will be entitled to receive under this title for each cal-
endar month, reduced or increased, as the case may be, by 
any amount by which the Secretary finds that the Sec-
retary’s estimates for any prior calendar month were great-
er or less than the amounts which should have been paid 
to the State. Such estimates may be made on the basis of 
such statistical, sampling, or other method as may be agreed 
upon by the Secretary and the State agency of the State 
involved. 
FINANCING PROVISIONS 
SEC. 4004. (a) IN GENERAL.—Funds in the extended 
unemployment compensation account (as established by sec-
tion 905(a) of the Social Security Act (42 U.S.C. 1105(a)) 
of the Unemployment Trust Fund (as established by section
122 
904(a) of such Act (42 U.S.C. 1104(a)) shall be used for 
the making of payments to States having agreements en-
tered into under this title. 
(b) CERTIFICATION.—The Secretary shall from time to 
time certify to the Secretary of the Treasury for payment 
to each State the sums payable to such State under this 
title. The Secretary of the Treasury, prior to audit or settle-
ment by the Government Accountability Office, shall make 
payments to the State in accordance with such certification, 
by transfers from the extended unemployment compensation 
account (as so established) to the account of such State in 
the Unemployment Trust Fund (as so established). 
(c) ASSISTANCE TO STATES.—There are appropriated 
out of the employment security administration account (as 
established by section 901(a) of the Social Security Act (42 
U.S.C. 1101(a)) of the Unemployment Trust Fund, without 
fiscal year limitation, such funds as may be necessary for 
purposes of assisting States (as provided in title III of the 
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the 
costs of administration of agreements under this title. 
(d) APPROPRIATIONS
FOR
CERTAIN
PAYMENTS.— 
There are appropriated from the general fund of the Treas-
ury, without fiscal year limitation, to the extended unem-
ployment compensation account (as so established) of the 
Unemployment Trust Fund (as so established) such sums
123 
as the Secretary estimates to be necessary to make the pay-
ments under this section in respect of— 
(1) compensation payable under chapter 85 of 
title 5, United States Code; and 
(2) compensation payable on the basis of services 
to which section 3309(a)(1) of the Internal Revenue 
Code of 1986 applies. 
Amounts appropriated pursuant to the preceding sentence 
shall not be required to be repaid. 
FRAUD AND OVERPAYMENTS 
SEC. 4005. (a) IN GENERAL.—If an individual know-
ingly has made, or caused to be made by another, a false 
statement or representation of a material fact, or knowingly 
has failed, or caused another to fail, to disclose a material 
fact, and as a result of such false statement or representa-
tion or of such nondisclosure such individual has received 
an amount of emergency unemployment compensation 
under this title to which such individual was not entitled, 
such individual— 
(1) shall be ineligible for further emergency un-
employment compensation under this title in accord-
ance with the provisions of the applicable State un-
employment compensation law relating to fraud in 
connection with a claim for unemployment compensa-
tion; and
124 
(2) shall be subject to prosecution under section 
1001 of title 18, United States Code. 
(b) REPAYMENT.—In the case of individuals who have 
received amounts of emergency unemployment compensa-
tion under this title to which they were not entitled, the 
State shall require such individuals to repay the amounts 
of such emergency unemployment compensation to the State 
agency, except that the State agency may waive such repay-
ment if it determines that— 
(1) the payment of such emergency unemploy-
ment compensation was without fault on the part of 
any such individual; and 
(2) such repayment would be contrary to equity 
and good conscience. 
(c) RECOVERY BY STATE AGENCY.— 
(1) IN GENERAL.—The State agency may recover 
the amount to be repaid, or any part thereof, by de-
ductions from any emergency unemployment com-
pensation payable to such individual under this title 
or from any unemployment compensation payable to 
such individual under any State or Federal unem-
ployment compensation law administered by the 
State agency or under any other State or Federal law 
administered by the State agency which provides for 
the payment of any assistance or allowance with re-
125 
spect to any week of unemployment, during the 3-year 
period after the date such individuals received the 
payment of the emergency unemployment compensa-
tion to which they were not entitled, except that no 
single deduction may exceed 50 percent of the weekly 
benefit amount from which such deduction is made. 
(2) OPPORTUNITY FOR HEARING.—No repayment 
shall be required, and no deduction shall be made, 
until a determination has been made, notice thereof 
and an opportunity for a fair hearing has been given 
to the individual, and the determination has become 
final. 
(d) REVIEW.—Any determination by a State agency 
under this section shall be subject to review in the same 
manner and to the same extent as determinations under 
the State unemployment compensation law, and only in 
that manner and to that extent. 
DEFINITIONS 
SEC. 4006. In this title, the terms ‘‘compensation’’, 
‘‘regular compensation’’, ‘‘extended compensation’’, ‘‘benefit 
year’’, ‘‘base period’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, 
and ‘‘week’’ have the respective meanings given such terms 
under section 205 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 (26 U.S.C. 3304 note).
126 
APPLICABILITY 
SEC. 4007. (a) IN GENERAL.—Except as provided in 
subsection (b), an agreement entered into under this title 
shall apply to weeks of unemployment— 
(1) beginning after the date on which such agree-
ment is entered into; and 
(2) ending on or before March 31, 2009. 
(b) TRANSITION
FOR AMOUNT REMAINING
IN AC-
COUNT.— 
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), in the case of an individual who has amounts re-
maining in an account established under section 4002 
as of the last day of the last week (as determined in 
accordance with the applicable State law) ending on 
or before March 31, 2009, emergency unemployment 
compensation shall continue to be payable to such in-
dividual from such amounts for any week beginning 
after such last day for which the individual meets the 
eligibility requirements of this title. 
(2) LIMIT ON AUGMENTATION.—If the account of 
an individual is exhausted after the last day of such 
last week (as so determined), then section 4002(c) 
shall not apply and such account shall not be aug-
mented under such section, regardless of whether such
127 
individual’s State is in an extended benefit period (as 
determined under paragraph (2) of such section). 
(3) LIMIT ON COMPENSATION.—No compensation 
shall be payable by reason of paragraph (1) for any 
week beginning after June 30, 2009. 
TITLE V—MEDICAID PROVISIONS 
SEC. 5001. (a) MORATORIA ON CERTAIN MEDICAID 
REGULATIONS.— 
(1) EXTENSION OF CERTAIN MORATORIA IN PUB-
LIC
LAW
110–28.—Section 7002(a)(1) of the U.S. 
Troop Readiness, Veterans’ Care, Katrina Recovery, 
and Iraq Accountability Appropriations Act, 2007 
(Public Law 110–28) is amended— 
(A) by striking ‘‘prior to the date that is 1 
year after the date of enactment of this Act’’ and 
inserting ‘‘prior to April 1, 2009’’; 
(B) in subparagraph (A), by inserting after 
‘‘Federal Regulations)’’ the following: ‘‘or in the 
final regulation, relating to such parts, published 
on May 29, 2007 (72 Federal Register 29748)’’; 
and 
(C) in subparagraph (C), by inserting be-
fore the period at the end the following: ‘‘, in-
cluding the proposed regulation published on 
May 23, 2007 (72 Federal Register 28930)’’.
128 
(2) EXTENSION OF CERTAIN MORATORIA IN PUB-
LIC LAW 110–173.—Section 206 of the Medicare, Med-
icaid, and SCHIP Extension Act of 2007 (Public 
Law 110–173) is amended— 
(A) by striking ‘‘June 30, 2008’’ and insert-
ing ‘‘April 1, 2009’’; 
(B) by inserting ‘‘, including the proposed 
regulation published on August 13, 2007 (72 
Federal Register 45201),’’ after ‘‘rehabilitation 
services’’; and 
(C) by inserting ‘‘, including the final regu-
lation published on December 28, 2007 (72 Fed-
eral Register 73635),’’ after ‘‘school-based trans-
portation’’. 
(3) ADDITIONAL MORATORIA.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the Secretary of Health 
and Human Services shall not, prior to April 1, 
2009, take any action (through promulgation of 
regulation, issuance of regulatory guidance, use 
of Federal payment audit procedures, or other 
administrative action, policy, or practice, in-
cluding a Medical Assistance Manual trans-
mittal or letter to State Medicaid directors) to 
impose any restrictions relating to a provision
129 
described in subparagraph (B), (C), or (D) if 
such restrictions are more restrictive in any as-
pect than those applied to the respective provi-
sion as of the date specified in subparagraph (E) 
for such provision. 
(B) PORTION OF INTERIM FINAL REGULA-
TION RELATING TO MEDICAID TREATMENT OF OP-
TIONAL CASE MANAGEMENT SERVICES.— 
(i) IN
GENERAL.—Subject to clause 
(ii), the provision described in this subpara-
graph is the interim final regulation relat-
ing to optional State plan case management 
services under the Medicaid program pub-
lished on December 4, 2007 (72 Federal 
Register 68077) in its entirety. 
(ii) EXCEPTION.—The provision de-
scribed in this subparagraph does not in-
clude the portion of such regulation as re-
lates directly to implementing section 
1915(g)(2)(A)(ii) of the Social Security Act, 
as amended by section 6052 of the Deficit 
Reduction Act of 2005 (Public Law 109– 
171), through the definition of case manage-
ment services and targeted case manage-
ment services contained in proposed section
130 
440.169 of title 42, Code of Federal Regula-
tions, but only to the extent that such por-
tion is not more restrictive than the policies 
set forth in the Dear State Medicaid Direc-
tor letter on case management issued on 
January 19, 2001 (SMDL #01–013), and 
with respect to community transition case 
management, the Dear State Medicaid Di-
rector letter issued on July 25, 2000 
(Olmstead Update 3). 
(C) PROPOSED REGULATION RELATING TO 
REDEFINITION OF MEDICAID OUTPATIENT HOS-
PITAL
SERVICES.—The provision described in 
this subparagraph is the proposed regulation re-
lating to clarification of outpatient clinic and 
hospital facility services definition and upper 
payment limit under the Medicaid program pub-
lished on September 28, 2007 (72 Federal Reg-
ister 55158) in its entirety. 
(D) PORTION
OF
PROPOSED
REGULATION 
RELATING TO MEDICAID ALLOWABLE PROVIDER 
TAXES.— 
(i) IN
GENERAL.—Subject to clause 
(ii), the provision described in this subpara-
graph is the final regulation relating to
131 
health-care-related taxes under the Medicaid 
program published on February 22, 2008 
(73 Federal Register 9685) in its entirety. 
(ii) EXCEPTION.—The provision de-
scribed in this subparagraph does not in-
clude the portions of such regulation as re-
late to the following: 
(I) REDUCTION IN THRESHOLD.— 
The reduction from 6 percent to 5.5 
percent in the threshold applied under 
section 433.68(f)(3)(i) of title 42, Code 
of Federal Regulations, for determining 
whether or not there is an indirect 
guarantee to hold a taxpayer harmless, 
as required to carry out section 
1903(w)(4)(C)(ii) of the Social Secu-
rity Act, as added by section 403 of the 
Medicare Improvement and Extension 
Act of 2006 (division B of Public Law 
109–432). 
(II) CHANGE
IN
DEFINITION
OF 
MANAGED
CARE.—The change in the 
definition of managed care as proposed 
in the revision of section 433.56(a)(8) 
of title 42, Code of Federal Regula-
132 
tions, as required to carry out section 
1903(w)(7)(A)(viii) of the Social Secu-
rity Act, as amended by section 6051 
of the Deficit Reduction Act of 2005 
(Public Law 109–171). 
(E) DATE SPECIFIED.—The date specified 
in this subparagraph for the provision described 
in— 
(i) subparagraph (B) is December 3, 
2007; 
(ii) subparagraph (C) is September 27, 
2007; or 
(iii) subparagraph (D) is February 21, 
2008. 
(b) FUNDS
TO
REDUCE
MEDICAID
FRAUD
AND 
ABUSE.— 
(1) IN GENERAL.—For purposes of reducing fraud and 
abuse in the Medicaid program under title XIX of the So-
cial Security Act— 
(A) there is appropriated to the Secretary of 
Health and Human Services, out of any money 
in the Treasury not otherwise appropriated, 
$25,000,000, for fiscal year 2009; and
133 
(B) there is authorized to be appropriated 
to the Secretary $25,000,000 for fiscal year 2010 
and each subsequent fiscal year. 
Amounts appropriated under this section shall re-
main available for expenditure until expended and 
shall be in addition to any other amounts appro-
priated or made available to the Secretary for such 
purposes with respect to the Medicaid program. 
(2) ANNUAL REPORT.—Not later than September 30 
of 2009 and of each subsequent year, the Secretary of Health 
and Human Services shall submit to the Committee on En-
ergy and Commerce of the House of Representatives and 
the Committee on Finance of the Senate a report on the 
activities (and the results of such activities) funded under 
paragraph (1) to reduce waste, fraud, and abuse in the 
Medicaid program under title XIX of the Social Security 
Act during the previous 12 month period, including the 
amount of funds appropriated under such paragraph for 
each such activity and an estimate of the savings to the 
Medicaid program resulting from each such activity. 
(c) STUDY AND REPORTS TO CONGRESS.— 
(1) SECRETARIAL
REPORT
IDENTIFYING
PROB-
LEMS.—Not later than July 1, 2008, the Secretary of 
Health and Human Services shall submit to the Com-
mittee on Energy and Commerce of the House of Rep-
134 
resentatives and the Committee on Finance of the 
Senate a report that— 
(A) outlines the specific problems the Med-
icaid regulations referred to in the amendments 
made by paragraphs (1) and (2) of subsection 
(a) and in the provisions described in subpara-
graph (B) through (D) of paragraph (3) of such 
subsection were intended to address; 
(B) detailing how these regulations were de-
signed to address these specific problems; and 
(C) cites the legal authority for such regula-
tions. 
(2) INDEPENDENT COMPREHENSIVE STUDY AND 
REPORT.— 
(A) IN GENERAL.—Not later than July 1, 
2008, the Secretary of Health and Human Serv-
ices shall enter into a contract with an inde-
pendent organization for the purpose of— 
(i) producing a comprehensive report 
on the prevalence of the problems outlined 
in the report submitted under paragraph 
(1); 
(ii) identifying strategies in existence 
to address these problems; and
135 
(iii) assessing the impact of each regu-
lation referred to in such paragraph on 
each State and the District of Columbia. 
(B) 
ADDITIONAL
MATTER.—The 
report 
under subparagraph (A) shall also include— 
(i) an identification of which claims 
for items and services (including adminis-
trative activities) under title XIX of the So-
cial Security Act are not processed through 
systems described in section 1903(r) of such 
Act; 
(ii) an examination of the reasons why 
these claims for such items and services are 
not processed through such systems; and 
(iii) recommendations on actions by 
the Federal government and the States that 
can make claims for such items and services 
more accurate and complete consistent with 
such title. 
(C) DEADLINE.—The report under subpara-
graph (A) shall be submitted to the Committee 
on Energy and Commerce of the House of Rep-
resentatives and the Committee on Finance of the 
Senate not later than March 1, 2009.
136 
(D) COOPERATION OF STATES.—If the Sec-
retary of Health and Human Services deter-
mines that a State or the District of Columbia 
has not cooperated with the independent organi-
zation for purposes of the report under this para-
graph, the Secretary shall reduce the amount 
paid to the State or District under section 
1903(a) of the Social Security Act (42 U.S.C. 
1396b(a)) by $25,000 for each day on which the 
Secretary determines such State or District has 
not so cooperated. Such reduction shall be made 
through a process that permits the State or Dis-
trict to challenge the Secretary’s determination. 
(3) FUNDING.— 
(A) IN GENERAL.—Out of any money in the 
Treasury of the United States not otherwise ap-
propriated, there are appropriated to the Sec-
retary without further appropriation, $5,000,000 
to carry out this subsection. 
(B) AVAILABILITY; AMOUNTS IN ADDITION 
TO OTHER AMOUNTS APPROPRIATED FOR SUCH 
ACTIVITIES.—Amounts appropriated pursuant to 
subparagraph (A) shall— 
(i) remain available until expended; 
and
137 
(ii) be in addition to any other 
amounts appropriated or made available to 
the Secretary of Health and Human Serv-
ices with respect to the Medicaid program. 
(d) ASSET VERIFICATION THROUGH ACCESS TO IN-
FORMATION HELD BY FINANCIAL INSTITUTIONS.— 
(1) ADDITION OF AUTHORITY.—Title XIX of the 
Social Security Act is amended by inserting after sec-
tion 1939 the following new section: 
‘‘ASSET VERIFICATION THROUGH ACCESS TO INFORMATION 
HELD BY FINANCIAL INSTITUTIONS 
‘‘SEC. 1940. (a) IMPLEMENTATION.— 
‘‘(1) IN GENERAL.—Subject to the provisions of 
this section, each State shall implement an asset 
verification program described in subsection (b), for 
purposes of determining or redetermining the eligi-
bility of an individual for medical assistance under 
the State plan under this title. 
‘‘(2) PLAN SUBMITTAL.—In order to meet the re-
quirement of paragraph (1), each State shall— 
‘‘(A) submit not later than a deadline speci-
fied by the Secretary consistent with paragraph 
(3), a State plan amendment under this title 
that describes how the State intends to imple-
ment the asset verification program; and
138 
‘‘(B) provide for implementation of such 
program for eligibility determinations and rede-
terminations made on or after 6 months after the 
deadline established for submittal of such plan 
amendment. 
‘‘(3) PHASE-IN.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IMPLEMENTATION
IN
CURRENT 
ASSET
VERIFICATION
DEMO
STATES.—The 
Secretary shall require those States specified 
in subparagraph (C) (to which an asset 
verification program has been applied be-
fore the date of the enactment of this sec-
tion) to implement an asset verification 
program under this subsection by the end of 
fiscal year 2009. 
‘‘(ii) 
IMPLEMENTATION
IN
OTHER 
STATES.—The Secretary shall require other 
States to submit and implement an asset 
verification program under this subsection 
in such manner as is designed to result in 
the application of such programs, in the ag-
gregate for all such other States, to enroll-
ment of approximately, but not less than, 
the following percentage of enrollees, in the
139 
aggregate for all such other States, by the 
end of the fiscal year involved: 
‘‘(I) 12.5 percent by the end of fis-
cal year 2009. 
‘‘(II) 25 percent by the end of fis-
cal year 2010. 
‘‘(III) 50 percent by the end of fis-
cal year 2011. 
‘‘(IV) 75 percent by the end of fis-
cal year 2012. 
‘‘(V) 100 percent by the end of fis-
cal year 2013. 
‘‘(B) CONSIDERATION.—In selecting States 
under subparagraph (A)(ii), the Secretary shall 
consult with the States involved and take into 
account the feasibility of implementing asset 
verification programs in each such State. 
‘‘(C) STATES SPECIFIED.—The States speci-
fied in this subparagraph are California, New 
York, and New Jersey. 
‘‘(D) CONSTRUCTION.—Nothing in subpara-
graph (A)(ii) shall be construed as preventing a 
State from requesting, and the Secretary approv-
ing, the implementation of an asset verification
140 
program in advance of the deadline otherwise es-
tablished under such subparagraph. 
‘‘(4) EXEMPTION OF TERRITORIES.—This section 
shall only apply to the 50 States and the District of 
Columbia. 
‘‘(b) ASSET VERIFICATION PROGRAM.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
an asset verification program means a program de-
scribed in paragraph (2) under which a State— 
‘‘(A) requires each applicant for, or recipi-
ent of, medical assistance under the State plan 
under this title on the basis of being aged, blind, 
or disabled to provide authorization by such ap-
plicant or recipient (and any other person whose 
resources are material to the determination of 
the eligibility of the applicant or recipient for 
such assistance) for the State to obtain (subject 
to the cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act 
but at no cost to the applicant or recipient) from 
any financial institution (within the meaning of 
section 1101(1) of such Act) any financial record 
(within the meaning of section 1101(2) of such 
Act) held by the institution with respect to the 
applicant or recipient (and such other person, as
141 
applicable), whenever the State determines the 
record is needed in connection with a determina-
tion with respect to such eligibility for (or the 
amount or extent of) such medical assistance; 
and 
‘‘(B) uses the authorization provided under 
subparagraph (A) to verify the financial re-
sources of such applicant or recipient (and such 
other person, as applicable), in order to deter-
mine or redetermine the eligibility of such appli-
cant or recipient for medical assistance under 
the State plan. 
‘‘(2) PROGRAM
DESCRIBED.—A program de-
scribed in this paragraph is a program for verifying 
individual assets in a manner consistent with the ap-
proach used by the Commissioner of Social Security 
under section 1631(e)(1)(B)(ii). 
‘‘(c) 
DURATION
OF
AUTHORIZATION.—Notwith-
standing section 1104(a)(1) of the Right to Financial Pri-
vacy Act, an authorization provided to a State under sub-
section (b)(1) shall remain effective until the earliest of— 
‘‘(1) the rendering of a final adverse decision on 
the applicant’s application for medical assistance 
under the State’s plan under this title;
142 
‘‘(2) the cessation of the recipient’s eligibility for 
such medical assistance; or 
‘‘(3) the express revocation by the applicant or 
recipient (or such other person described in subsection 
(b)(1), as applicable) of the authorization, in a writ-
ten notification to the State. 
‘‘(d) TREATMENT OF RIGHT TO FINANCIAL PRIVACY 
ACT REQUIREMENTS.— 
‘‘(1) An authorization obtained by the State 
under subsection (b)(1) shall be considered to meet the 
requirements of the Right to Financial Privacy Act 
for purposes of section 1103(a) of such Act, and need 
not be furnished to the financial institution, notwith-
standing section 1104(a) of such Act. 
‘‘(2) The certification requirements of section 
1103(b) of the Right to Financial Privacy Act shall 
not apply to requests by the State pursuant to an au-
thorization provided under subsection (b)(1). 
‘‘(3) A request by the State pursuant to an au-
thorization provided under subsection (b)(1) is 
deemed to meet the requirements of section 1104(a)(3) 
of the Right to Financial Privacy Act and of section 
1102 of such Act, relating to a reasonable description 
of financial records.
143 
‘‘(e) REQUIRED DISCLOSURE.—The State shall inform 
any person who provides authorization pursuant to sub-
section (b)(1)(A) of the duration and scope of the authoriza-
tion. 
‘‘(f) REFUSAL OR REVOCATION OF AUTHORIZATION.— 
If an applicant for, or recipient of, medical assistance 
under the State plan under this title (or such other person 
described in subsection (b)(1), as applicable) refuses to pro-
vide, or revokes, any authorization made by the applicant 
or recipient (or such other person, as applicable) under sub-
section (b)(1)(A) for the State to obtain from any financial 
institution any financial record, the State may, on that 
basis, determine that the applicant or recipient is ineligible 
for medical assistance. 
‘‘(g) USE OF CONTRACTOR.—For purposes of imple-
menting an asset verification program under this section, 
a State may select and enter into a contract with a public 
or private entity meeting such criteria and qualifications 
as the State determines appropriate, consistent with re-
quirements in regulations relating to general contracting 
provisions and with section 1903(i)(2). In carrying out ac-
tivities under such contract, such an entity shall be subject 
to the same requirements and limitations on use and disclo-
sure of information as would apply if the State were to 
carry out such activities directly.
144 
‘‘(h) TECHNICAL ASSISTANCE.—The Secretary shall 
provide States with technical assistance to aid in imple-
mentation of an asset verification program under this sec-
tion. 
‘‘(i) REPORTS.—A State implementing an asset 
verification program under this section shall furnish to the 
Secretary such reports concerning the program, at such 
times, in such format, and containing such information as 
the Secretary determines appropriate. 
‘‘(j) TREATMENT OF PROGRAM EXPENSES.—Notwith-
standing any other provision of law, reasonable expenses 
of States in carrying out the program under this section 
shall be treated, for purposes of section 1903(a), in the same 
manner as State expenditures specified in paragraph (7) 
of such section.’’. 
(2) 
STATE
PLAN
REQUIREMENTS.—Section 
1902(a) of such Act (42 U.S.C. 1396a(a)) is amend-
ed— 
(A) in paragraph (69) by striking ‘‘and’’ at 
the end; 
(B) in paragraph (70) by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by inserting after paragraph (70), as so 
amended, the following new paragraph:
145 
‘‘(71) provide that the State will implement an 
asset verification program as required under section 
1940.’’. 
(3) WITHHOLDING OF FEDERAL MATCHING PAY-
MENTS FOR NONCOMPLIANT STATES.—Section 1903(i) 
of such Act (42 U.S.C. 1396b(i)) is amended— 
(A) in paragraph (22) by striking ‘‘or’’ at 
the end; 
(B) in paragraph (23) by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(C) by adding after paragraph (23) the fol-
lowing new paragraph: 
‘‘(24) if a State is required to implement an 
asset verification program under section 1940 and 
fails to implement such program in accordance with 
such section, with respect to amounts expended by 
such State for medical assistance for individuals sub-
ject to asset verification under such section, unless— 
‘‘(A) the State demonstrates to the Sec-
retary’s satisfaction that the State made a good 
faith effort to comply; 
‘‘(B) not later than 60 days after the date 
of a finding that the State is in noncompliance, 
the State submits to the Secretary (and the Sec-
146 
retary approves) a corrective action plan to rem-
edy such noncompliance; and 
‘‘(C) not later than 12 months after the date 
of such submission (and approval), the State ful-
fills the terms of such corrective action plan.’’. 
(4) REPEAL.—Section 4 of Public Law 110–90 
is repealed. 
(e) ADJUSTMENT TO PAQI FUND.—Section 1848(l)(2) 
of the Social Security Act (42 U.S.C. 1395w-4(l)(2)), as 
amended by section 101(a)(2) of the Medicare, Medicaid, 
and SCHIP Extension Act of 2007 (Public Law 110–173), 
is amended— 
(1) in subparagraph (A)(i)— 
(A) 
in 
subclause 
(III), 
by 
striking 
‘‘$4,960,000,000’’ 
and 
inserting 
‘‘$3,940,000,000’’; and 
(B) by adding at the end the following new 
subclause: 
‘‘(IV) For expenditures during 
2014, 
an 
amount 
equal 
to 
$3,750,000,000.’’; 
(2) in subparagraph (A)(ii), by adding at the 
end the following new subclause: 
‘‘(IV) 2014.—The amount avail-
able for expenditures during 2014 shall
147 
only be available for an adjustment to 
the update of the conversion factor 
under subsection (d) for that year.’’; 
and 
(3) in subparagraph (B)— 
(A) in clause (ii), by striking ‘‘and’’ at the 
end; 
(B) in clause (iii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(iv) 2014 for payment with respect to 
physicians’ 
services 
furnished 
during 
2014.’’. 
TITLE VI—ACCOUNTABILITY AND 
TRANSPARENCY IN GOVERNMENT CONTRACTING 
CHAPTER 1—CLOSE THE CONTRACTOR FRAUD 
LOOPHOLE 
SHORT TITLE 
SEC. 6101. This chapter may be cited as the ‘‘Close 
the Contractor Fraud Loophole Act’’. 
REVISION OF THE FEDERAL ACQUISITION REGULATION 
SEC. 6102. The Federal Acquisition Regulation shall 
be amended within 180 days after the date of the enactment 
of this Act pursuant to FAR Case 2007–006 (as published 
at 72 Fed Reg. 64019, November 14, 2007) or any follow-
148 
on FAR case to include provisions that require timely noti-
fication by Federal contractors of violations of Federal 
criminal law or overpayments in connection with the 
award or performance of covered contracts or subcontracts, 
including those performed outside the United States and 
those for commercial items. 
DEFINITION 
SEC. 6103. In this chapter, the term ‘‘covered contract’’ 
means any contract in an amount greater than $5,000,000 
and more than 120 days in duration. 
CHAPTER 2—GOVERNMENT FUNDING 
TRANSPARENCY 
SHORT TITLE 
SEC. 6201. This chapter may be cited as the ‘‘Govern-
ment Funding Transparency Act of 2008’’. 
FINANCIAL DISCLOSURE REQUIREMENTS FOR CERTAIN 
RECIPIENTS OF FEDERAL AWARDS 
SEC. 6202. (a) DISCLOSURE REQUIREMENTS.—Sec-
tion 2(b)(1) of the Federal Funding Accountability and 
Transparency Act (Public Law 109–282; 31 U.S.C. 6101 
note) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (E); 
(2) by redesignating subparagraph (F) as sub-
paragraph (G); and
149 
(3) by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) the names and total compensation of 
the five most highly compensated officers of the 
entity if— 
‘‘(i) the entity in the preceding fiscal 
year received— 
‘‘(I) 80 percent or more of its an-
nual gross revenues in Federal awards; 
and 
‘‘(II) $25,000,000 or more in an-
nual gross revenues from Federal 
awards; and 
‘‘(ii) the public does not have access to 
information about the compensation of the 
senior executives of the entity through peri-
odic reports filed under section 13(a) or 
15(d) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(a), 78o(d)) or section 
6104 of the Internal Revenue Code of 
1986.’’. 
(b) REGULATIONS REQUIRED.—The Director of the Of-
fice of Management and Budget shall promulgate regula-
tions to implement the amendment made by this chapter. 
Such regulations shall include a definition of ‘‘total com-
150 
pensation’’ that is consistent with regulations of the Securi-
ties and Exchange Commission at section 402 of part 229 
of title 17 of the Code of Federal Regulations (or any subse-
quent regulation). 
TITLE VII—GI BILL FINANCING PROVISION 
GI BILL FINANCING PROVISION 
SEC. 7001. (a) IN GENERAL.—Part I of subchapter A 
of chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by inserting after section 1 the following new section: 
‘‘SEC. 1A. INCREASE IN TAX ON HIGH INCOME INDIVIDUALS 
TO FINANCE THE GI BILL. 
‘‘(a) GENERAL RULE.—In the case of a taxpayer other 
than a corporation, there is hereby imposed (in addition 
to any other tax imposed by this subtitle) a tax equal to 
0.47 percent of so much of modified adjusted gross income 
as exceeds $500,000 ($1,000,000 in the case of a joint return 
or a surviving spouse (as defined in section 2(a)). 
‘‘(b) MODIFIED ADJUSTED GROSS INCOME.—For pur-
poses of this section, the term ‘modified adjusted gross in-
come’ means adjusted gross income reduced by any deduc-
tion allowed for investment interest (as defined in section 
163(d)). In the case of an estate or trust, a rule similar 
to the rule of section 67(e) shall apply for purposes of deter-
mining adjusted gross income for purposes of this section.
151 
‘‘(c) NONRESIDENT ALIEN.—In the case of a non-
resident alien individual, only amounts taken into account 
in connection with the tax imposed by section 871(b) shall 
be taken into account under this section. 
‘‘(d) MARITAL STATUS.—For purposes of this section, 
marital status shall be determined under section 7703. 
‘‘(e) NOT TREATED AS TAX IMPOSED BY THIS CHAP-
TER FOR CERTAIN PURPOSES.—The tax imposed under this 
section shall not be treated as tax imposed by this chapter 
for purposes of determining the amount of any credit under 
this chapter or for purposes of section 55.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
part I of subchapter A of chapter 1 of such Code is amended 
by inserting after the item relating to section 1 the following 
new item: 
‘‘Sec. 1A. Increase in tax on high income individuals to finance the GI bill.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2008. 
(d) SECTION 15 NOT TO APPLY.—The amendment 
made by subsection (a) shall not be treated as a change in 
a rate of tax for purposes of section 15 of the Internal Rev-
enue Code of 1986.
152 
TITLE VIII—GENERAL PROVISIONS 
AVAILABILITY OF FUNDS 
SEC. 8001. No part of any appropriation contained 
in this Act shall remain available for obligation beyond the 
current fiscal year unless expressly so provided herein. 
EMERGENCY DESIGNATION 
SEC. 8002. Each amount in each title of this Act is 
designated as an emergency requirement and necessary to 
meet emergency needs pursuant to subsections (a) and (b) 
of section 204 of S. Con. Res. 21 (110th Congress), the con-
current resolution on the budget for fiscal year 2008. 
SHORT TITLE 
SEC. 8003. This Act may be cited as the ‘‘Supple-
mental Appropriations Act, 2008’’. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H.R. 2642 
HOUSE AMENDMENTS 
TO SENATE 
AMENDMENT