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CHAPTER 7 
DEPARTMENT OF EDUCATION 
HIGHER EDUCATION 
For an additional amount under part B of title VII 
of the Higher Education Act of 1965 (‘‘HEA’’) for institu-
tions of higher education (as defined in section 101 or sec-
tion 102(c) of that Act) that are located in an area in 
which a major disaster was declared in accordance with 
section 401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act related to Hurricanes Katrina 
or Rita, $30,000,000: Provided, That such funds shall be 
available to the Secretary of Education only for payments 
to help defray the expenses (which may include lost rev-
enue, reimbursement for expenses already incurred, and 
construction) incurred by such institutions of higher edu-
cation that were forced to close, relocate or significantly 
curtail their activities as a result of damage directly 
caused by such hurricanes and for payments to enable 
such institutions to provide grants to students who attend 
such institutions for academic years beginning on or after 
July 1, 2006: Provided further, That such payments shall 
be made in accordance with criteria established by the Sec-
retary and made publicly available without regard to sec-
tion 437 of the General Education Provisions Act, section 
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553 of title 5, United States Code, or part B of title VII 
of the HEA. 
HURRICANE EDUCATION RECOVERY 
For carrying out activities authorized by subpart 1 
of part D of title V of the Elementary and Secondary Edu-
cation Act of 1965, $30,000,000, to remain available until 
expended, for use by the States of Louisiana, Mississippi, 
and Alabama primarily for recruiting, retaining, and com-
pensating new and current teachers, school principals, as-
sistant principals, principal resident directors, assistant 
directors, and other educators, who commit to work for 
at least three years in school-based positions in public ele-
mentary and secondary schools located in an area with re-
spect to which a major disaster was declared under section 
401 of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5170) by reason of Hur-
ricane Katrina or Hurricane Rita, including through such 
mechanisms as paying salary premiums, performance bo-
nuses, housing subsidies, signing bonuses, and relocation 
costs and providing loan forgiveness, with priority given 
to teachers and school-based school principals, assistant 
principals, principal resident directors, assistant directors, 
and other educators who previously worked or lived in one 
of the affected areas, are currently employed (or become 
employed) in such a school in any of the affected areas 
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after those disasters, and commit to continue that employ-
ment for at least 3 years, Provided, That funds available 
under this heading to such States may also be used for 
1 or more of the following activities: (1) to build the capac-
ity, knowledge, and skill of teachers and school-based 
school principals, assistant principals, principal resident 
directors, assistant directors, and other educators in such 
public elementary and secondary schools to provide an ef-
fective education, including the design, adaptation, and 
implementation of high-quality formative assessments; (2) 
the establishment of partnerships with nonprofit entities 
with a demonstrated track record in recruiting and retain-
ing outstanding teachers and other school-based school 
principals, assistant principals, principal resident direc-
tors, and assistant directors; and (3) paid release time for 
teachers and principals to identify and replicate successful 
practices from the fastest-improving and highest-per-
forming schools: Provided further, That the Secretary of 
Education shall allocate amounts available under this 
heading among such States that submit applications; that 
such allocation shall be based on the number of public ele-
mentary and secondary schools in each State that were 
closed for 19 days or more during the period beginning 
on August 29, 2005, and ending on December 31, 2005, 
due to Hurricane Katrina or Hurricane Rita; and that 
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such States shall in turn allocate funds to local edu-
cational agencies, with priority given first to such agencies 
with the highest percentages of public elementary and sec-
ondary schools that are closed as a result of such hurri-
canes as of the date of enactment of this division and then 
to such agencies with the highest percentages of public 
elementary and secondary schools with a student-teacher 
ratio of at least 25 to 1, and with any remaining amounts 
to be distributed to such agencies with demonstrated need, 
as determined by the State Superintendent of Education: 
Provided further, That, in the case of any State that choos-
es to use amounts available under this heading for per-
formance bonuses, not later than 60 days after the date 
of enactment of this division, and in collaboration with 
local educational agencies, teachers’ unions, local prin-
cipals’ organizations, local parents’ organizations, local 
business organizations, and local charter schools organiza-
tions, the State educational agency shall develop a plan 
for a rating system for performance bonuses, and if no 
agreement has been reached that is satisfactory to all con-
sulting entities by such deadline, the State educational 
agency shall immediately send a letter notifying Congress 
and shall, not later than 30 days after such notification, 
establish and implement a rating system that shall be 
based on classroom observation and feedback more than 
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once annually, conducted by multiple sources (including, 
but not limited to, principals and master teachers), and 
evaluated against research-based rubrics that use plan-
ning, instructional, and learning environment standards to 
measure teacher performance, except that the require-
ments of this proviso shall not apply to a State that has 
enacted a State law in 2006 authorizing performance pay 
for teachers. 
PROGRAMS TO RESTART SCHOOL OPERATIONS 
Funds made available under section 102 of the Hur-
ricane Education Recovery Act (title IV of division B of 
Public Law 109–148) may be used by the States of Lou-
isiana, Mississippi, Alabama, and Texas, in addition to the 
uses of funds described in section 102(e), for the following 
costs: (1) recruiting, retaining, and compensating new and 
current teachers, school principals, assistant principals, 
principal resident directors, assistant directors, and other 
educators for school-based positions in public elementary 
and secondary schools impacted by Hurricane Katrina or 
Hurricane Rita, including through such mechanisms as 
paying salary premiums, performance bonuses, housing 
subsidies, signing bonuses, and relocation costs and pro-
viding loan forgiveness; (2) activities to build the capacity, 
knowledge, and skills of teachers and school-based school 
principals, assistant principals, principal resident direc-
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tors, assistant directors, and other educators in such pub-
lic elementary and secondary schools to provide an effec-
tive education, including the design, adaptation, and im-
plementation of high-quality formative assessments; (3) 
the establishment of partnerships with nonprofit entities 
with a demonstrated track record in recruiting and retain-
ing outstanding teachers and school-based school prin-
cipals, assistant principals, principal resident directors, 
and assistant directors; and (4) paid release time for 
teachers and principals to identify and replicate successful 
practices from the fastest-improving and highest-per-
forming schools. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 3701. Section 105(b) of title IV of division B 
of Public Law 109–148 is amended by adding at the end 
the following new sentence: ‘‘With respect to the program 
authorized by section 102 of this Act, the waiver authority 
in subsection (a) of this section shall be available until 
the end of fiscal year 2008.’’. 
SEC. 3702. Notwithstanding section 2002(c) of the 
Social Security Act (42 U.S.C. 1397a(c)), funds made 
available under the heading ‘‘Social Services Block Grant’’ 
in division B of Public Law 109–148 shall be available 
for expenditure by the States through the end of fiscal 
year 2009. 
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SEC. 3703. (a) In the event that Louisiana, Mis-
sissippi, Alabama, or Texas fails to meet its match re-
quirement with funds appropriated in fiscal years 2006 
or 2007, for fiscal years 2008 and 2009, the Secretary 
of Health and Human Services may waive the application 
of section 2617(d)(4) of the Public Health Service Act for 
Louisiana, Mississippi, Alabama, and Texas. 
(b) The Secretary may not exercise the waiver au-
thority available under subsection (a) to allow a grantee 
to provide less than a 25 percent matching grant. 
(c) For grant years beginning in 2008, Louisiana, 
Mississippi, Alabama, and Texas and any eligible metro-
politan area in Louisiana, Mississippi, Alabama, and 
Texas shall comply with each of the applicable require-
ments under title XXVI of the Public Health Service Act 
(42 U.S.C. 300ff–11 et seq.). 
CHAPTER 8 
DEPARTMENT OF TRANSPORTATION 
FEDERAL HIGHWAY ADMINISTRATION 
FEDERAL-AID HIGHWAYS 
EMERGENCY RELIEF PROGRAM 
(INCLUDING RESCISSION OF FUNDS) 
For an additional amount for the Emergency Relief 
Program as authorized under section 125 of title 23, 
United States Code, $682,942,000, to remain available 
until expended: Provided, That section 125(d)(1) of title 
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23, United States Code, shall not apply to emergency re-
lief projects that respond to damage caused by the 2005– 
2006 winter storms in the State of California: Provided 
further, That of the unobligated balances of funds appor-
tioned to each State under chapter 1 of title 23, United 
States Code, $682,942,000 are rescinded: Provided fur-
ther, That such rescission shall not apply to the funds dis-
tributed in accordance with sections 130(f) and 104(b)(5) 
of title 23, United States Code; sections 133(d)(1) and 
163 of such title, as in effect on the day before the date 
of enactment of Public Law 109–59; and the first sentence 
of section 133(d)(3)(A) of such title. 
FEDERAL TRANSIT ADMINISTRATION 
FORMULA GRANTS 
For an additional amount to be allocated by the Sec-
retary to recipients of assistance under chapter 53 of title 
49, United States Code, directly affected by Hurricanes 
Katrina and Rita, $35,000,000, for the operating and cap-
ital costs of transit services, to remain available until ex-
pended: Provided, That the Federal share for any project 
funded from this amount shall be 100 percent. 
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DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the Office of Inspector 
General, for the necessary costs related to the con-
sequences of Hurricanes Katrina and Rita, $7,000,000, 
to remain available until expended. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 3801. The third proviso under the heading ‘‘De-
partment of Housing and Urban Development—Public 
and Indian Housing—Tenant-Based Rental Assistance’’ 
in chapter 9 of title I of division B of Public Law 109– 
148 (119 Stat. 2779) is amended by striking ‘‘for up to 
18 months’’ and inserting ‘‘until December 31, 2007’’. 
SEC. 3802. Section 21033 of the Continuing Appro-
priations Resolution, 2007 (division B of Public Law 109– 
289, as amended by Public Law 110–5) is amended by 
adding after the third proviso: ‘‘: Provided further, That 
notwithstanding the previous proviso, except for applying 
the 2007 Annual Adjustment Factor and making any 
other specified adjustments, public housing agencies speci-
fied in category 1 below shall receive funding for calendar 
year 2007 based on the higher of the amounts the agencies 
would receive under the previous proviso or the amounts 
the agencies received in calendar year 2006, and public 
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housing agencies specified in categories 2 and 3 below 
shall receive funding for calendar year 2007 equal to the 
amounts the agencies received in calendar year 2006, ex-
cept that public housing agencies specified in categories 
1 and 2 below shall receive funding under this proviso only 
if, and to the extent that, any such public housing agency 
submits a plan, approved by the Secretary, that dem-
onstrates that the agency can effectively use within 12 
months the funding that the agency would receive under 
this proviso that is in addition to the funding that the 
agency would receive under the previous proviso: (1) public 
housing agencies that are eligible for assistance under sec-
tion 901 in Public Law 109–148 (119 Stat. 2781) or are 
located in the same counties as those eligible under section 
901 and operate voucher programs under section 8(o) of 
the United States Housing Act of 1937 but do not operate 
public housing under section 9 of such Act, and any public 
housing agency that otherwise qualifies under this cat-
egory must demonstrate that they have experienced a loss 
of rental housing stock as a result of the 2005 hurricanes; 
(2) public housing agencies that would receive less funding 
under the previous proviso than they would receive under 
this proviso and that have been placed in receivership or 
the Secretary has declared to be in breach of an Annual 
Contributions Contract by June 1, 2007; and (3) public 
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