I 
112TH CONGRESS 
1ST SESSION 
H. R. 12 
To provide tax relief for American workers and businesses, to put workers 
back on the job while rebuilding and modernizing America, and to provide 
pathways back to work for Americans looking for jobs. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2011 
Mr. LARSON of Connecticut (by request): introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committees on Small Business, Transportation and Infrastructure, 
Education and the Workforce, Energy and Commerce, Financial Services, 
House Administration, the Judiciary, Oversight and Government Reform, 
Rules, and Science, Space, and Technology, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide tax relief for American workers and businesses, 
to put workers back on the job while rebuilding and 
modernizing America, and to provide pathways back to 
work for Americans looking for jobs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Jobs Act of 2011’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. References. 
Sec. 3. Severability. 
Sec. 4. Buy America—Use of American iron, steel, and manufactured goods. 
Sec. 5. Wage rate and employment protection requirements. 
TITLE I—RELIEF FOR WORKERS AND BUSINESSES 
Subtitle A—Payroll Tax Relief 
Sec. 101. Temporary payroll tax cut for employers, employees, and the self-em-
ployed. 
Sec. 102. Temporary tax credit for increased payroll. 
Subtitle B—Other Relief for Businesses 
Sec. 111. Extension of temporary 100 percent bonus depreciation for certain 
business assets. 
Sec. 112. Surety bonds. 
Sec. 113. Delay in application of withholding on government contractors. 
TITLE II—PUTTING WORKERS BACK ON THE JOB WHILE 
REBUILDING AND MODERNIZING AMERICA 
Subtitle A—Veterans Hiring Preferences 
Sec. 201. Returning heroes and wounded warriors work opportunity tax credits. 
Subtitle B—Teacher Stabilization 
Sec. 202. Purpose. 
Sec. 203. Grants for the outlying areas and the Secretary of the Interior; avail-
ability of funds. 
Sec. 204. State allocation. 
Sec. 205. State application. 
Sec. 206. State reservation and responsibilities. 
Sec. 207. Local educational agencies. 
Sec. 208. Early learning. 
Sec. 209. Maintenance of effort. 
Sec. 210. Reporting. 
Sec. 211. Definitions. 
Sec. 212. Authorization of appropriations. 
Subtitle C—First Responder Stabilization 
Sec. 213. Purpose. 
Sec. 214. Grant program. 
Sec. 215. Appropriations. 
Subtitle D—School Modernization 
PART I—ELEMENTARY AND SECONDARY SCHOOLS 
Sec. 221. Purpose. 
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Sec. 222. Authorization of appropriations. 
Sec. 223. Allocation of funds. 
Sec. 224. State use of funds. 
Sec. 225. State and local applications. 
Sec. 226. Use of funds. 
Sec. 227. Private schools. 
Sec. 228. Additional provisions. 
PART II—COMMUNITY COLLEGE MODERNIZATION 
Sec. 229. Federal assistance for community college modernization. 
PART III—GENERAL PROVISIONS 
Sec. 230. Definitions. 
Sec. 231. Buy American. 
Subtitle E—Immediate Transportation Infrastructure Investments 
Sec. 241. Immediate transportation infrastructure investments. 
Subtitle F—Building and Upgrading Infrastructure for Long-Term 
Development 
Sec. 242. Short title. 
Sec. 243. Findings and purpose. 
Sec. 244. Definitions. 
PART I—AMERICAN INFRASTRUCTURE FINANCING AUTHORITY 
Sec. 245. Establishment and general authority of AIFA. 
Sec. 246. Voting members of the Board of Directors. 
Sec. 247. Chief executive officer of AIFA. 
Sec. 248. Powers and duties of the Board of Directors. 
Sec. 249. Senior management. 
Sec. 250. Special Inspector General for AIFA. 
Sec. 251. Other personnel. 
Sec. 252. Compliance. 
PART II—TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN 
GUARANTEES 
Sec. 253. Eligibility criteria for assistance from AIFA and terms and limita-
tions of loans. 
Sec. 254. Loan terms and repayment. 
Sec. 255. Compliance and enforcement. 
Sec. 256. Audits; reports to the President and Congress. 
PART III—FUNDING OF AIFA 
Sec. 257. Administrative fees. 
Sec. 258. Efficiency of AIFA. 
Sec. 259. Funding. 
PART IV—EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX 
TREATMENT FOR CERTAIN TAX-EXEMPT BONDS 
Sec. 260. Extension of exemption from alternative minimum tax treatment for 
certain tax-exempt bonds. 
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Subtitle G—Project Rebuild 
Sec. 261. Project rebuild. 
Subtitle H—National Wireless Initiative 
Sec. 271. Definitions. 
PART I—AUCTIONS OF SPECTRUM AND SPECTRUM MANAGEMENT 
Sec. 272. Clarification of authorities to repurpose Federal spectrum for com-
mercial purposes. 
Sec. 273. Incentive auction authority. 
Sec. 274. Requirements when repurposing certain mobile satellite services spec-
trum for terrestrial broadband use. 
Sec. 275. Permanent extension of auction authority. 
Sec. 276. Authority to auction licenses for domestic satellite services. 
Sec. 277. Directed auction of certain spectrum. 
Sec. 278. Authority to establish spectrum license user fees. 
PART II—PUBLIC SAFETY BROADBAND NETWORK 
Sec. 281. Reallocation of D block for public safety. 
Sec. 282. Flexible use of narrowband spectrum. 
Sec. 283. Single public safety wireless network licensee. 
Sec. 284. Establishment of public safety broadband corporation. 
Sec. 285. Board of directors of the corporation. 
Sec. 286. Officers, employees, and committees of the corporation. 
Sec. 287. Nonprofit and nonpolitical nature of the corporation. 
Sec. 288. Powers, duties, and responsibilities of the corporation. 
Sec. 289. Initial funding for corporation. 
Sec. 290. Permanent self-funding; duty to assess and collect fees for network 
use. 
Sec. 291. Audit and report. 
Sec. 292. Annual report to Congress. 
Sec. 293. Provision of technical assistance. 
Sec. 294. State and local implementation. 
Sec. 295. State and local implementation fund. 
Sec. 296. Public safety wireless communications research and development. 
Sec. 297. Public safety trust fund. 
Sec. 298. FCC report on efficient use of public safety spectrum. 
Sec. 299. Public safety roaming and priority access. 
TITLE III—ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS 
BACK TO WORK 
Subtitle A—Supporting Unemployed Workers 
Sec. 301. Short title. 
PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND 
CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT
OF 
SELF-EMPLOYMENT ASSISTANCE PROGRAM 
Sec. 311. Extension of emergency unemployment compensation program. 
Sec. 312. Temporary extension of extended benefit provisions. 
Sec. 313. Reemployment services and reemployment and eligibility assessment 
activities. 
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Sec. 314. Federal-State agreements to administer a self-employment assistance 
program. 
Sec. 315. Conforming amendment on payment of Bridge to Work wages. 
Sec. 316. Additional extended unemployment benefits under the Railroad Un-
employment Insurance Act. 
PART II—REEMPLOYMENT NOW PROGRAM 
Sec. 321. Establishment of reemployment NOW program. 
Sec. 322. Distribution of funds. 
Sec. 323. State plan. 
Sec. 324. Bridge to Work program. 
Sec. 325. Wage insurance. 
Sec. 326. Enhanced reemployment strategies. 
Sec. 327. Self-employment programs. 
Sec. 328. Additional innovative programs. 
Sec. 329. Guidance and additional requirements. 
Sec. 330. Report of information and evaluations to Congress and the public. 
Sec. 331. State. 
PART III—SHORT-TIME COMPENSATION PROGRAM 
Sec. 341. Treatment of short-time compensation programs. 
Sec. 342. Temporary financing of short-time compensation payments in states 
with programs in law. 
Sec. 343. Temporary financing of short-time compensation agreements. 
Sec. 344. Grants for short-time compensation programs. 
Sec. 345. Assistance and guidance in implementing programs. 
Sec. 346. Reports. 
Subtitle B—Long Term Unemployed Hiring Preferences 
Sec. 351. Long term unemployed workers work opportunity tax credits. 
Subtitle C—Pathways Back to Work 
Sec. 361. Short title. 
Sec. 362. Establishment of pathways back to work fund. 
Sec. 363. Availability of funds. 
Sec. 364. Subsidized employment for unemployed, low-income adults. 
Sec. 365. Summer employment and year-round employment opportunities for 
low-income youth. 
Sec. 366. Work-based employment strategies of demonstrated effectiveness. 
Sec. 367. General requirements. 
Sec. 368. Definitions. 
Subtitle D—Prohibition of Discrimination in Employment on the Basis of an 
Individual’s Status as Unemployed 
Sec. 371. Short title. 
Sec. 372. Findings and purpose. 
Sec. 373. Definitions. 
Sec. 374. Prohibited acts. 
Sec. 375. Enforcement. 
Sec. 376. Federal and State immunity. 
Sec. 377. Relationship to other laws. 
Sec. 378. Severability. 
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Sec. 379. Effective date. 
TITLE IV—OFFSETS 
Subtitle A—28 Percent Limitation on Certain Deductions and Exclusions 
Sec. 401. 28 percent limitation on certain deductions and exclusions. 
Subtitle B—Tax Carried Interest in Investment Partnerships as Ordinary 
Income 
Sec. 411. Partnership interests transferred in connection with performance of 
services. 
Sec. 412. Special rules for partners providing investment management services 
to partnerships. 
Subtitle C—Close Loophole for Corporate Jet Depreciation 
Sec. 421. General aviation aircraft treated as 7-year property. 
Subtitle D—Repeal Oil Subsidies 
Sec. 431. Repeal of deduction for intangible drilling and development costs in 
the case of oil and gas wells. 
Sec. 432. Repeal of deduction for tertiary injectants. 
Sec. 433. Repeal of percentage depletion for oil and gas wells. 
Sec. 434. Section 199 deduction not allowed with respect to oil, natural gas, 
or primary products thereof. 
Sec. 435. Repeal oil and gas working interest exception to passive activity rules. 
Sec. 436. Repeal enhanced oil recovery credit. 
Sec. 437. Uniform seven-year amortization for geological and geophysical ex-
penditures. 
Sec. 438. Repeal marginal well production credit. 
Subtitle E—Dual Capacity Taxpayers 
Sec. 441. Modifications of foreign tax credit rules applicable to dual capacity 
taxpayers. 
Sec. 442. Separate basket treatment taxes paid on foreign oil and gas income. 
Subtitle F—Increased Target and Trigger for Joint Select Committee on 
Deficit Reduction 
Sec. 451. Increased target and trigger for joint select committee on deficit re-
duction. 
SEC. 2. REFERENCES. 
Except as expressly provided otherwise, any reference 
to ‘‘this Act’’ contained in any subtitle of this Act shall 
be treated as referring only to the provisions of that sub-
title. 
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SEC. 3. SEVERABILITY. 
If any provision of this Act, or the application thereof 
to any person or circumstance, is held invalid, the remain-
der of the Act and the application of such provision to 
other persons or circumstances shall not be affected there-
by. 
SEC. 4. BUY AMERICAN—USE OF AMERICAN IRON, STEEL, 
AND MANUFACTURED GOODS. 
(a) None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the 
construction, alteration, maintenance, or repair of a public 
building or public work unless all of the iron, steel, and 
manufactured goods used in the project are produced in 
the United States. 
(b) Subsection (a) shall not apply in any case or cat-
egory of cases in which the head of the Federal depart-
ment or agency involved finds that— 
(1) applying subsection (a) would be incon-
sistent with the public interest; 
(2) iron, steel, and the relevant manufactured 
goods are not produced in the United States in suffi-
cient and reasonably available quantities and of a 
satisfactory quality; or 
(3) inclusion of iron, steel, and manufactured 
goods produced in the United States will increase 
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the cost of the overall project by more than 25 per-
cent. 
(c) If the head of a Federal department or agency 
determines that it is necessary to waive the application 
of subsection (a) based on a finding under subsection (b), 
the head of the department or agency shall publish in the 
Federal Register a detailed written justification as to why 
the provision is being waived. 
(d) This section shall be applied in a manner con-
sistent with United States obligations under international 
agreements. 
SEC. 5. WAGE RATE AND EMPLOYMENT PROTECTION RE-
QUIREMENTS. 
(a) Notwithstanding any other provision of law and 
in a manner consistent with other provisions in this Act, 
all laborers and mechanics employed by contractors and 
subcontractors on projects funded directly by or assisted 
in whole or in part by and through the Federal Govern-
ment pursuant to this Act shall be paid wages at rates 
not less than those prevailing on projects of a character 
similar in the locality as determined by the Secretary of 
Labor in accordance with subchapter IV of chapter 31 of 
title 40, United States Code. 
(b) With respect to the labor standards specified in 
this section, the Secretary of Labor shall have the author-
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ity and functions set forth in Reorganization Plan Num-
bered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and sec-
tion 3145 of title 40, United States Code. 
(c) Projects as defined under title 49, United States 
Code, funded directly by or assisted in whole or in part 
by and through the Federal Government pursuant to this 
Act shall be subject to the requirements of section 5333(b) 
of title 49, United States Code. 
TITLE I—RELIEF FOR WORKERS 
AND BUSINESSES 
Subtitle A—Payroll Tax Relief 
SEC. 101. TEMPORARY PAYROLL TAX CUT FOR EMPLOYERS, 
EMPLOYEES, AND THE SELF-EMPLOYED. 
(a) WAGES.—Notwithstanding any other provision of 
law— 
(1) with respect to remuneration received dur-
ing the payroll tax holiday period, the rate of tax 
under 3101(a) of the Internal Revenue Code of 1986 
shall be 3.1 percent (including for purposes of deter-
mining the applicable percentage under sections 
3201(a) and 3211(a) of such Code), and 
(2) with respect to remuneration paid during 
the payroll tax holiday period, the rate of tax under 
3111(a) of such Code shall be 3.1 percent (including 
for purposes of determining the applicable percent-
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age under sections 3221(a) and 3211(a) of such 
Code). 
(3) Subsection (a)(2) shall only apply to— 
(A) employees performing services in a 
trade or business of a qualified employer, or 
(B) in the case of a qualified employer ex-
empt from tax under section 501(a), in further-
ance of the activities related to the purpose or 
function constituting the basis of the employer’s 
exemption under section 501. 
(4) Subsection (a)(2) shall apply only to the 
first $5 million of remuneration or compensation 
paid by a qualified employer subject to section 
3111(a) or a corresponding amount of compensation 
subject to section 3221(a). 
(b) SELF-EMPLOYMENT TAXES.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, with respect to any taxable year 
which begins in the payroll tax holiday period, the 
rate of tax under section 1401(a) of the Internal 
Revenue Code of 1986 shall be— 
(A) 6.2 percent on the portion of net earn-
ings from self-employment subject to section 
1401(a) during the payroll tax period that does 
not exceed the amount of the excess of $5 mil-
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lion over total remuneration, if any, subject to 
section 3111(a) paid during the payroll tax holi-
day period to employees of the self-employed 
person, and 
(B) 9.3 percent for any portion of net 
earnings from self-employment not subject to 
subsection (b)(1)(A). 
(2) COORDINATION WITH DEDUCTIONS FOR EM-
PLOYMENT
TAXES.—For purposes of the Internal 
Revenue Code of 1986, in the case of any taxable 
year which begins in the payroll tax holiday period— 
(A) DEDUCTION IN COMPUTING NET EARN-
INGS
FROM
SELF-EMPLOYMENT.—The deduc-
tion allowed under section 1402(a)(12) of such 
Code shall be the sum of (i) 4.55 percent times 
the amount of the taxpayer’s net earnings from 
self-employment for the taxable year subject to 
subsection (b)(1)(A) of this section, plus (ii) 
7.65 percent of the taxpayer’s net earnings 
from self-employment in excess of that amount. 
(B) INDIVIDUAL DEDUCTION.—The deduc-
tion under section 164(f) of such Code shall be 
equal to the sum of (i) one-half of the taxes im-
posed by section 1401 (after the application of 
this section) with respect to the taxpayer’s net 
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earnings from self-employment for the taxable 
year subject to subsection (b)(1)(A) of this sec-
tion plus (ii) 62.7 percent of the taxes imposed 
by section 1401 (after the application of this 
section) with respect to the excess. 
(c) REGULATORY AUTHORITY.—The Secretary may 
prescribe any such regulations or other guidance necessary 
or appropriate to carry out this section, including the allo-
cation of the excess of $5 million over total remuneration 
subject to section 3111(a) paid during the payroll tax holi-
day period among related taxpayers treated as a single 
qualified employer. 
(d) DEFINITIONS.— 
(1) PAYROLL TAX HOLIDAY PERIOD.—The term 
‘‘payroll tax holiday period’’ means calendar year 
2012. 
(2) QUALIFIED
EMPLOYER.—For purposes of 
this paragraph: 
(A) IN
GENERAL.—The term ‘‘qualified 
employer’’ means any employer other than the 
United States, any State or possession of the 
United States, or any political subdivision 
thereof, or any instrumentality of the foregoing. 
(B) TREATMENT OF EMPLOYEES OF POST- 
SECONDARY
EDUCATIONAL
INSTITUTIONS.— 
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Notwithstanding subparagraph (A), the term 
‘‘qualified employer’’ includes any employer 
which is a public institution of higher education 
(as defined in section 101 of the Higher Edu-
cation Act of 1965). 
(3) AGGREGATION
RULES.—For purposes of 
this subsection rules similar to sections 414(b), 
414(c), 414(m), and 414(o) shall apply to determine 
when multiple entities shall be treated as a single 
employer, and rules with respect to predecessor and 
successor employers may be applied, in such manner 
as may be prescribed by the Secretary. 
(e) TRANSFERS OF FUNDS.— 
(1) TRANSFERS
TO
FEDERAL
OLD-AGE
AND 
SURVIVORS
INSURANCE
TRUST
FUND.—There are 
hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability In-
surance Trust Fund established under section 201 
of the Social Security Act (42 U.S.C. 401) amounts 
equal to the reduction in revenues to the Treasury 
by reason of the application of subsections (a) and 
(b) to employers other than those described in sub-
section (e)(2). Amounts appropriated by the pre-
ceding sentence shall be transferred from the general 
fund at such times and in such manner as to rep-
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licate to the extent possible the transfers which 
would have occurred to such Trust Fund had such 
amendments not been enacted. 
(2) TRANSFERS TO SOCIAL SECURITY EQUIVA-
LENT BENEFIT ACCOUNT.—There are hereby appro-
priated to the Social Security Equivalent Benefit Ac-
count established under section 15A(a) of the Rail-
road Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 
amounts equal to the reduction in revenues to the 
Treasury by reason of the application of subsection 
(a) to employers subject to the Railroad Retirement 
Tax. Amounts appropriated by the preceding sen-
tence shall be transferred from the general fund at 
such times and in such manner as to replicate to the 
extent possible the transfers which would have oc-
curred to such Account had such amendments not 
been enacted. 
(f) COORDINATION WITH OTHER FEDERAL LAWS.— 
For purposes of applying any provision of Federal law 
other than the provisions of the Internal Revenue Code 
of 1986, the rate of tax in effect under section 3101(a) 
of such Code shall be determined without regard to the 
reduction in such rate under this section. 
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SEC. 102. TEMPORARY TAX CREDIT FOR INCREASED PAY-
ROLL. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, each qualified employer shall be allowed, with 
respect to wages for services performed for such qualified 
employer, a payroll increase credit determined as follows: 
(1) With respect to the period from October 1, 
2011 through December 31, 2011, 6.2 percent of 
the excess, if any, (but not more than $12.5 million 
of the excess) of the wages subject to tax under sec-
tion 3111(a) of the Internal Revenue Code of 1986 
for such period over such wages for the cor-
responding period of 2010. 
(2) With respect to the period from January 1, 
2012 through December 31, 2012, 
(A) 6.2 percent of the excess, if any, (but 
not more than $50 million of the excess) of the 
wages subject to tax under section 3111(a) of 
the Internal Revenue Code of 1986 for such pe-
riod over such wages for calendar year 2011, 
minus 
(B) 3.1 percent of the result (but not less 
than zero) of subtracting from $5 million such 
wages for calendar year 2011. 
(3) In the case of a qualified employer for 
which the wages subject to tax under section 
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3111(a) of the Internal Revenue Code of 1986 (a) 
were zero for the corresponding period of 2010 re-
ferred to in subsection (a)(1), the amount of such 
wages shall be deemed to be 80 percent of the 
amount of wages taken into account for the period 
from October 1, 2011 through December 31, 2011 
and (b) were zero for the calendar year 2011 re-
ferred to in subsection (a)(2), then the amount of 
such wages shall be deemed to be 80 percent of the 
amount of wages taken into account for 2012. 
(4) This subsection shall only apply with re-
spect to the wages of employees performing services 
in a trade or business of a qualified employer or, in 
the case of a qualified employer exempt from tax 
under section 501(a) of the Internal Revenue Code 
of 1986, in furtherance of the activities related to 
the purpose or function constituting the basis of the 
employer’s exemption under section 501. 
(b) QUALIFIED EMPLOYERS.—For purposes of this 
section— 
(1) IN
GENERAL.—The term ‘‘qualified em-
ployer’’ means any employer other than the United 
States, any State or possession of the United States, 
or any political subdivision thereof, or any instru-
mentality of the foregoing. 
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(2) TREATMENT OF EMPLOYEES OF POST-SEC-
ONDARY
EDUCATIONAL
INSTITUTIONS.—Notwith-
standing paragraph (1), the term ‘‘qualified em-
ployer’’ includes any employer which is a public in-
stitution of higher education (as defined in section 
101 of the Higher Education Act of 1965). 
(c) AGGREGATION RULES.—For purposes of this sub-
section rules similar to sections 414(b), 414(c), 414(m), 
and 414(o) of the Internal Revenue Code of 1986 shall 
apply to determine when multiple entities shall be treated 
as a single employer, and rules with respect to predecessor 
and successor employers may be applied, in such manner 
as may be prescribed by the Secretary. 
(d) APPLICATION OF CREDITS.—The payroll increase 
credit shall be treated as a credit allowable under Subtitle 
C of the Internal Revenue Code of 1986 under rules pre-
scribed by the Secretary of the Treasury, provided that 
the amount so treated for the period described in sub-
section (a)(1) or subsection (a)(2) shall not exceed the 
amount of tax imposed on the qualified employer under 
section 3111(a) of such Code for the relevant period. Any 
income tax deduction by a qualified employer for amounts 
paid under section 3111(a) of such Code or similar Rail-
road Retirement Tax provisions shall be reduced by the 
amounts so credited. 
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(e) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Trust 
Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act 
(42 U.S.C. 401) amounts equal to the reduction in reve-
nues to the Treasury by reason of the amendments made 
by subsection (d). Amounts appropriated by the preceding 
sentence shall be transferred from the general fund at 
such times and in such manner as to replicate to the ex-
tent possible the transfers which would have occurred to 
such Trust Fund had such amendments not been enacted. 
(f) 
APPLICATION
TO
RAILROAD
RETIREMENT 
TAXES.—For purposes of qualified employers that are em-
ployers under section 3231(a) of the Internal Revenue 
Code of 1986, subsections (a)(1) and (a)(2) of this section 
shall apply by substituting section 3221 for section 3111, 
and substituting the term ‘‘compensation’’ for ‘‘wages’’ as 
appropriate. 
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Subtitle B—Other Relief for 
Businesses 
SEC. 111. EXTENSION OF TEMPORARY 100 PERCENT BONUS 
DEPRECIATION FOR CERTAIN BUSINESS AS-
SETS. 
(a) IN GENERAL.—Paragraph (5) of section 168(k) 
of the Internal Revenue Code is amended— 
(1) by striking ‘‘January 1, 2012’’ each place 
it appears and inserting ‘‘January 1, 2013’’, and 
(2) by striking ‘‘January 1, 2013’’ and insert-
ing ‘‘January 1, 2014’’. 
(b) CONFORMING AMENDMENT.—The heading for 
paragraph (5) of section 168(k) of the Internal Revenue 
Code is amended by striking ‘‘PRE-2012 PERIODS’’ and in-
serting ‘‘PRE-2013 PERIODS’’. 
SEC. 112. SURETY BONDS. 
(a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 
the Small Business Investment Act of 1958 (15 U.S.C. 
694b(a)(1)) is amended by striking ‘‘$2,000,000’’ and in-
serting ‘‘$5,000,000’’. 
(b) DENIAL OF LIABILITY.—Section 411(e)(2) of the 
Small Business Investment Act of 1958 (15 U.S.C. 
694b(e)(2)) is amended by striking ‘‘$2,000,000’’ and in-
serting ‘‘$5,000,000’’. 
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(c) SUNSET.—The amendments made by subsections 
(a) and (b) of this section shall remain in effect until Sep-
tember 30, 2012. 
(d) FUNDING.—There is appropriated out of any 
money in the Treasury not otherwise appropriated, 
$3,000,000, to remain available until expended, for addi-
tional capital for the Surety Bond Guarantees Revolving 
Fund, as authorized by the Small Business Investment 
Act of 1958, as amended. 
SEC. 113. DELAY IN APPLICATION OF WITHHOLDING ON 
GOVERNMENT CONTRACTORS. 
Subsection (b) of section 511 of the Tax Increase 
Prevention and Reconciliation Act of 2005 is amended by 
striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2013’’. 
TITLE 
II—PUTTING 
WORKERS 
BACK ON THE JOB WHILE RE-
BUILDING AND MODERNIZING 
AMERICA 
Subtitle A—Veterans Hiring 
Preferences 
SEC. 201. RETURNING HEROES AND WOUNDED WARRIORS 
WORK OPPORTUNITY TAX CREDITS. 
(a) IN GENERAL.—Paragraph (3) of section 51(b) of 
the Internal Revenue Code is amended by striking 
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‘‘($12,000 per year in the case of any individual who is 
a qualified veteran by reason of subsection (d)(3)(A)(ii))’’ 
and inserting ‘‘($12,000 per year in the case of any indi-
vidual who is a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(I), $14,000 per year in the case of any indi-
vidual who is a qualified veteran by reason of subsection 
(d)(3)(A)(iv), and $24,000 per year in the case of any in-
dividual who is a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(II))’’. 
(b) RETURNING HEROES TAX CREDITS.—Section 
51(d)(3)(A) of the Internal Revenue Code is amended by 
striking ‘‘or’’ at the end of clause (3)(A)(i), and inserting 
the following new clauses after clause (ii)— 
‘‘(iii) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or ex-
ceed 4 weeks (but less than 6 months), or 
‘‘(iv) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or ex-
ceed 6 months.’’. 
(c) SIMPLIFIED CERTIFICATION.—Section 51(d) of 
the Internal revenue Code is amended by adding a new 
paragraph (15) as follows— 
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‘‘(15) CREDIT
ALLOWED
FOR
UNEMPLOYED 
VETERANS.— 
‘‘(A) IN GENERAL.—Any qualified veteran 
under paragraphs (3)(A)(ii)(II), (3)(A)(iii), and 
(3)(A)(iv) will be treated as certified by the des-
ignated local agency as having aggregate peri-
ods of unemployment if— 
‘‘(i) in the case of qualified veterans 
under 
paragraphs 
(3)(A)(ii)(II) 
and 
(3)(A)(iv), the veteran is certified by the 
designated local agency as being in receipt 
of 
unemployment 
compensation 
under 
State or Federal law for not less than 6 
months during the 1-year period ending on 
the hiring date; or 
‘‘(ii) in the case of a qualified veteran 
under paragraph (3)(A)(iii), the veteran is 
certified by the designated local agency as 
being in receipt of unemployment com-
pensation under State or Federal law for 
not less than 4 weeks (but less than 6 
months) during the 1-year period ending 
on the hiring date. 
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‘‘(B) REGULATORY AUTHORITY.—The Sec-
retary in his discretion may provide alternative 
methods for certification.’’. 
(d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM-
PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 52(c) of 
the Internal Revenue Code is amended— 
(1) by striking the word ‘‘No’’ at the beginning 
of the section and replacing it with ‘‘Except as pro-
vided in this subsection, no’’; 
(2) by inserting at the end of section 52(c) the 
following new paragraphs— 
‘‘(1) IN GENERAL.—In the case of a tax-exempt 
employer, there shall be treated as a credit allowable 
under subpart C (and not allowable under subpart 
D) the lesser of— 
‘‘(A) the amount of the work opportunity 
credit determined under this subpart with re-
spect to such employer that is related to the 
hiring of qualified veterans described in sections 
51(d)(3)(A)(ii)(II), (iii) or (iv); or 
‘‘(B) the amount of the payroll taxes of the 
employer during the calendar year in which the 
taxable year begins. 
‘‘(2) CREDIT AMOUNT.—In calculating for tax- 
exempt employers, the work opportunity credit shall 
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(e) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary of the Treasury shall pay to each pos-
session of the United States with a mirror code 
tax system amounts equal to the loss to that 
possession by reason of the application of this 
section (other than this subsection). Such 
amounts shall be determined by the Secretary 
of the Treasury based on information provided 
by the government of the respective possession 
of the United States. 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States, which does not have a mirror 
code tax system, amounts estimated by the Sec-
retary of the Treasury as being equal to the ag-
gregate credits that would have been provided 
by the possession by reason of the application 
of this section (other than this subsection) if a 
mirror code tax system had been in effect in 
such possession. The preceding sentence shall 
not apply with respect to any possession of the 
United States unless such possession has a 
plan, which has been approved by the Secretary 
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of the Treasury, under which such possession 
will promptly distribute such payments. 
(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No in-
crease in the credit determined under section 38(b) 
of the Internal Revenue Code of 1986 that is attrib-
utable to the credit provided by this section (other 
than this subsection (e)) shall be taken into account 
with respect to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession of the United 
States by reason of this section for such taxable 
year, or 
(B) who is eligible for a payment under a 
plan described in paragraph (1)(B) with respect 
to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection (e), 
the term ‘‘possession of the United States’’ in-
cludes American Samoa, the Commonwealth of 
the Northern Mariana Islands, the Common-
wealth of Puerto Rico, Guam, and the United 
States Virgin Islands. 
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(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
tem of such possession if the income tax liabil-
ity 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. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, rules similar to the rules of section 
1001(b)(3)(C) of the American Recovery and 
Reinvestment Tax Act of 2009 shall apply. 
(f) EFFECTIVE DATE.—The amendment made by 
this section shall apply to individuals who begin work for 
the employer after the date of the enactment of this Act. 
Subtitle B—Teacher Stabilization 
SEC. 202. PURPOSE. 
The purpose of this subtitle is to provide funds to 
States to prevent teacher layoffs and support the creation 
of additional jobs in public early childhood, elementary, 
and secondary education in the 2011–2012 and 2012– 
2013 school years. 
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SEC. 203. GRANTS FOR THE OUTLYING AREAS AND THE 
SECRETARY OF THE INTERIOR; AVAILABILITY 
OF FUNDS. 
(a) RESERVATION OF FUNDS.—From the amount ap-
propriated to carry out this subtitle under section 212, 
the Secretary— 
(1) shall reserve up to one-half of one percent 
to provide assistance to the outlying areas on the 
basis of their respective needs, as determined by the 
Secretary, for activities consistent with this subtitle 
under such terms and conditions as the Secretary 
may determine; 
(2) shall reserve up to one-half of one percent 
to provide assistance to the Secretary of the Interior 
to carry out activities consistent with this subtitle, in 
schools operated or funded by the Bureau of Indian 
Education; and 
(3) may reserve up to $2,000,000 for adminis-
tration and oversight of this subtitle, including pro-
gram evaluation. 
(b) AVAILABILITY OF FUNDS.—Funds made avail-
able under section 212 shall remain available to the Sec-
retary until September 30, 2012. 
SEC. 204. STATE ALLOCATION. 
(a) ALLOCATION.—After reserving funds under sec-
tion 203(a), the Secretary shall allocate the remaining 
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funds appropriated under section 212 to States, of 
which— 
(1) 60 percent shall be allocated to States on 
the basis of their relative population of individuals 
aged 5 through 17; and 
(2) 40 percent shall be allocated to States on 
the basis of their relative total population. 
(b) AWARDS.—The Secretary shall award a State’s 
allocation under subsection (a) to the Governor of the 
State only if the Secretary has approved the State’s appli-
cation under section 205. 
(c) ALTERNATE DISTRIBUTION OF FUNDS.— 
(1) IN GENERAL.—If, within 30 days after the 
date of enactment of this Act, a Governor has not 
submitted an approvable application to the Sec-
retary, the Secretary shall, consistent with para-
graph (2), provide for funds allocated to that State 
to be distributed to another entity or other entities 
in the State for the support of early childhood, ele-
mentary, and secondary education, under such terms 
and conditions as the Secretary may establish. 
(2) MAINTENANCE OF EFFORT.— 
(A) GOVERNOR
ASSURANCE.—The Sec-
retary shall not allocate funds under paragraph 
(1) unless the Governor of the State provides 
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an assurance to the Secretary that the State 
will for fiscal years 2012 and 2013 meet the re-
quirements of section 209. 
(B) ALLOCATIONS TO OTHER ENTITIES.— 
Notwithstanding subparagraph (A), the Sec-
retary may allocate up to 50 percent of the 
funds that are available to the State under 
paragraph (1) to another entity or entities in 
the State, provided that the State educational 
agency submits data to the Secretary dem-
onstrating that the State will for fiscal year 
2012 meet the requirements of section 209(a) 
or the Secretary otherwise determines that the 
State will meet those requirements, or such 
comparable requirements as the Secretary may 
establish, for that year. 
(3) REQUIREMENTS.—An entity that receives 
funds under paragraph (1) shall use those funds in 
accordance with the requirements of this subtitle. 
(d) REALLOCATION.—If a State does not receive 
funding under this subtitle or only receives a portion of 
its allocation under subsection (c), the Secretary shall re-
allocate the State’s entire allocation or the remaining por-
tion of its allocation, as the case may be, to the remaining 
States in accordance with subsection (a). 
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SEC. 205. STATE APPLICATION. 
The Governor of a State desiring to receive a grant 
under this subtitle shall submit an application to the Sec-
retary within 30 days of the date of enactment of this Act, 
in such manner, and containing such information as the 
Secretary may reasonably require to determine the State’s 
compliance with applicable provisions of law. 
SEC. 206. STATE RESERVATION AND RESPONSIBILITIES. 
(a) RESERVATION.—Each State receiving a grant 
under section 204(b) may reserve— 
(1) not more than 10 percent of the grant 
funds for awards to State-funded early learning pro-
grams; and 
(2) not more than 2 percent of the grant funds 
for the administrative costs of carrying out its re-
sponsibilities under this subtitle. 
(b) STATE RESPONSIBILITIES.—Each State receiving 
a grant under this subtitle shall, after reserving any funds 
under subsection (a)— 
(1) use the remaining grant funds only for 
awards to local educational agencies for the support 
of early childhood, elementary, and secondary edu-
cation; and 
(2) distribute those funds, through subgrants, 
to its local educational agencies by distributing— 
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SEC. 207. LOCAL EDUCATIONAL AGENCIES. 
Each local educational agency that receives a 
subgrant under this subtitle— 
(1) shall use the subgrant funds only for com-
pensation and benefits and other expenses, such as 
support services, necessary to retain existing employ-
ees, recall or rehire former employees, or hire new 
employees to provide early childhood, elementary, or 
secondary educational and related services; 
(2) shall obligate those funds not later than 
September 30, 2013; and 
(3) may not use those funds for general admin-
istrative expenses or for other support services or ex-
penditures, as those terms are defined by the Na-
tional Center for Education Statistics in the Com-
mon Core of Data, as of the date of enactment of 
this Act. 
SEC. 208. EARLY LEARNING. 
Each State-funded early learning program that re-
ceives funds under this subtitle shall— 
(1) use those funds only for compensation, ben-
efits, and other expenses, such as support services, 
necessary to retain early childhood educators, recall 
or rehire former early childhood educators, or hire 
new early childhood educators to provide early learn-
ing services; and 
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(2) obligate those funds not later than Sep-
tember 30, 2013. 
SEC. 209. MAINTENANCE OF EFFORT. 
(a) REQUIREMENT.—The Secretary shall not allocate 
funds to a State under this subtitle unless the State pro-
vides an assurance to the Secretary that— 
(1) for State fiscal year 2012— 
(A) the State will maintain State support 
for early childhood, elementary, and secondary 
education (in the aggregate or on the basis of 
expenditure per pupil) and for public institu-
tions of higher education (not including support 
for capital projects or for research and develop-
ment or tuition and fees paid by students) at 
not less than the level of such support for each 
of the two categories for State fiscal year 2011; 
or 
(B) the State will maintain State support 
for early childhood, elementary, and secondary 
education and for public institutions of higher 
education (not including support for capital 
projects or for research and development or tui-
tion and fees paid by students) at a percentage 
of the total revenues available to the State that 
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is equal to or greater than the percentage pro-
vided for State fiscal year 2011; and 
(2) for State fiscal year 2013— 
(A) the State will maintain State support 
for early childhood, elementary, and secondary 
education (in the aggregate or on the basis of 
expenditure per pupil) and for public institu-
tions of higher education (not including support 
for capital projects or for research and develop-
ment or tuition and fees paid by students) at 
not less than the level of such support for each 
of the two categories for State fiscal year 2012; 
or 
(B) the State will maintain State support 
for early childhood, elementary, and secondary 
education and for public institutions of higher 
education (not including support for capital 
projects or for research and development or tui-
tion and fees paid by students) at a percentage 
of the total revenues available to the State that 
is equal to or greater than the percentage pro-
vided for State fiscal year 2012. 
(b) WAIVER.—The Secretary may waive the require-
ments of this section if the Secretary determines that a 
waiver would be equitable due to— 
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(1) exceptional or uncontrollable circumstances, 
such as a natural disaster; or 
(2) a precipitous decline in the financial re-
sources of the State. 
SEC. 210. REPORTING. 
Each State that receives a grant under this subtitle 
shall submit, on an annual basis, a report to the Secretary 
that contains— 
(1) a description of how funds received under 
this part were expended or obligated; and 
(2) an estimate of the number of jobs supported 
by the State using funds received under this subtitle. 
SEC. 211. DEFINITIONS. 
In this subtitle: 
(1) ESEA DEFINITIONS.—Except as otherwise 
provided, the terms ‘‘local educational agency’’, 
‘‘outlying area’’, ‘‘Secretary’’, ‘‘State’’, and ‘‘State 
educational agency’’ have the meanings given those 
terms in section 9101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
(2) STATE.—The term ‘‘State’’ does not include 
an outlying area. 
(3) EARLY
CHILD
EDUCATOR.—The term 
‘‘early childhood educator’’ means an individual 
who— 
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(A) works directly with children in a State- 
funded early learning program in a low-income 
community; 
(B) is involved directly in the care, devel-
opment, and education of infants, toddlers, or 
young children age five and under; and 
(C) has completed a baccalaureate or ad-
vanced degree in early childhood development or 
early childhood education, or in a field related 
to early childhood education. 
(4) STATE-FUNDED
EARLY
LEARNING
PRO-
GRAM.—The term ‘‘State-funded early learning pro-
gram’’ means a program that provides educational 
services to children from birth to kindergarten entry 
and receives funding from a State. 
SEC. 212. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated, and there 
are appropriated, $30,000,000,000 to carry out this sub-
title for fiscal year 2012. 
Subtitle C—First Responder 
Stabilization 
SEC. 213. PURPOSE. 
The purpose of this subtitle is to provide funds to 
States and localities to prevent layoffs of, and support the 
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creation of additional jobs for, law enforcement officers 
and other first responders. 
SEC. 214. GRANT PROGRAM. 
The Attorney General shall carry out a competitive 
grant program pursuant to section 1701 of title I of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 
U.S.C. 3796dd) for hiring, rehiring, or retention of career 
law enforcement officers under part Q of such title. Grants 
awarded under this section shall not be subject to sub-
sections (g) or (i) of section 1701 or to section 1704 of 
such Act (42 U.S.C. 3796dd–3(c)). 
SEC. 215. APPROPRIATIONS. 
There are hereby appropriated to the Community 
Oriented Policing Stabilization Fund out of any money in 
the Treasury not otherwise obligated, $5,000,000,000, to 
remain available until September 30, 2012, of which 
$4,000,000,000 shall be for the Attorney General to carry 
out the competitive grant program under section 214; and 
of which $1,000,000,000 shall be transferred by the Attor-
ney General to a First Responder Stabilization Fund from 
which the Secretary of Homeland Security shall make 
competitive grants for hiring, rehiring, or retention pursu-
ant to the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2201 et seq.), to carry out section 34 
of such Act (15 U.S.C. 2229a). In making such grants, 
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the Secretary may grant waivers from the requirements 
in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), 
(c)(2), and (c)(4)(A) of such section 34. Of the amounts 
appropriated herein, not to exceed $8,000,000 shall be for 
administrative costs of the Attorney General, and not to 
exceed $2,000,000 shall be for administrative costs of the 
Secretary of Homeland Security. 
Subtitle D—School Modernization 
PART I—ELEMENTARY AND SECONDARY 
SCHOOLS 
SEC. 221. PURPOSE. 
The purpose of this part is to provide assistance for 
the modernization, renovation, and repair of elementary 
and secondary school buildings in public school districts 
across America in order to support the achievement of im-
proved educational outcomes in those schools. 
SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated, and there 
are appropriated, $25,000,000,000 to carry out this part, 
which shall be available for obligation by the Secretary 
until September 30, 2012. 
SEC. 223. ALLOCATION OF FUNDS. 
(a) RESERVATIONS.—Of the amount made available 
to carry out this part, the Secretary shall reserve— 
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(1) one-half of one percent for the Secretary of 
the Interior to carry out modernization, renovation, 
and repair activities described in section 226 in 
schools operated or funded by the Bureau of Indian 
Education; 
(2) one-half of one percent to make grants to 
the outlying areas for modernization, renovation, 
and repair activities described in section 226; and 
(3) such funds as the Secretary determines are 
needed to conduct a survey, by the National Center 
for Education Statistics, of the school construction, 
modernization, renovation, and repair needs of the 
public schools of the United States. 
(b) STATE
ALLOCATION.—After reserving funds 
under subsection (a), the Secretary shall allocate the re-
maining amount among the States in proportion to their 
respective allocations under part A of title I of the Ele-
mentary and Secondary Education Act of 1965 (in this 
part referred to as the ‘‘ESEA’’) (20 U.S.C. 6311 et seq.) 
for fiscal year 2011, except that— 
(1) the Secretary shall allocate 40 percent of 
such remaining amount to the 100 local educational 
agencies with the largest numbers of children aged 
5–17 living in poverty, as determined using the most 
recent data available from the Department of Com-
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merce that are satisfactory to the Secretary, in pro-
portion to those agencies’ respective allocations 
under part A of title I of the ESEA for fiscal year 
2011; and 
(2) the allocation to any State shall be reduced 
by the aggregate amount of the allocations under 
paragraph (1) to local educational agencies in that 
State. 
(c) REMAINING ALLOCATION.— 
(1) STATES.—If a State does not apply for its 
allocation under subsection (b) (or applies for less 
than the full allocation for which it is eligible) or 
does not use that allocation in a timely manner, the 
Secretary may— 
(A) reallocate all or a portion of that allo-
cation to the other States in accordance with 
subsection (b); or 
(B) use all or a portion of that allocation 
to make direct allocations to local educational 
agencies within the State based on their respec-
tive allocations under part A of title I of the 
ESEA for fiscal year 2011 or such other meth-
od as the Secretary may determine. 
(2) LOCAL EDUCATIONAL AGENCIES.—If a local 
educational agency does not apply for its allocation 
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under subsection (b)(1), applies for less than the full 
allocation for which it is eligible, or does not use 
that allocation in a timely manner, the Secretary 
may reallocate all or a portion of its allocation to the 
State in which that agency is located. 
SEC. 224. STATE USE OF FUNDS. 
(a) RESERVATION.—Each State that receives a grant 
under this part may reserve not more than one percent 
of the State’s allocation under section 223(b) for the pur-
pose of administering the grant, except that no State may 
reserve more than $750,000 for this purpose. 
(b) FUNDS TO LOCAL EDUCATIONAL AGENCIES.— 
(1) FORMULA
SUBGRANTS.—From the grant 
funds that are not reserved under subsection (a), a 
State shall allocate at least 50 percent to local edu-
cational agencies, including charter schools that are 
local educational agencies, that did not receive funds 
under section 223(b)(1) from the Secretary, in ac-
cordance with their respective allocations under part 
A of title I of the ESEA for fiscal year 2011, except 
that no such local educational agency shall receive 
less than $10,000. 
(2) ADDITIONAL SUBGRANTS.—The State shall 
use any funds remaining, after reserving funds 
under subsection (a) and allocating funds under 
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paragraph (1), for subgrants to local educational 
agencies that did not receive funds under section 
223(b)(1), including charter schools that are local 
educational agencies, to support modernization, ren-
ovation, and repair projects that the State deter-
mines, using objective criteria, are most needed in 
the State, with priority given to projects in rural 
local educational agencies. 
(c) REMAINING FUNDS.—If a local educational agen-
cy does not apply for an allocation under subsection 
(b)(1), applies for less than its full allocation, or fails to 
use that allocation in a timely manner, the State may re-
allocate any unused portion to other local educational 
agencies in accordance with subsection (b). 
SEC. 225. STATE AND LOCAL APPLICATIONS. 
(a) STATE APPLICATION.—A State that desires to re-
ceive a grant under this part shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information and assurances as the Secretary 
may require, which shall include— 
(1) an identification of the State agency or enti-
ty that will administer the program under this part; 
and 
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(2) the State’s process for determining how the 
grant funds will be distributed and administered, in-
cluding— 
(A) how the State will determine the cri-
teria and priorities in making subgrants under 
section 224(b)(2); 
(B) any additional criteria the State will 
use in determining which projects it will fund 
under that section; 
(C) a description of how the State will con-
sider— 
(i) the needs of local educational 
agencies for assistance under this part; 
(ii) the impact of potential projects on 
job creation in the State; 
(iii) the fiscal capacity of local edu-
cational agencies applying for assistance; 
(iv) the percentage of children in 
those local educational agencies who are 
from low-income families; and 
(v) the potential for leveraging assist-
ance provided by the program under this 
part through matching or other financing 
mechanisms; 
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(D) a description of how the State will en-
sure that the local educational agencies receiv-
ing subgrants meet the requirements of this 
part; 
(E) a description of how the State will en-
sure that the State and its local educational 
agencies meet the deadlines established in sec-
tion 228; 
(F) a description of how the State will give 
priority to the use of green practices that are 
certified, verified, or consistent with any appli-
cable provisions of— 
(i) the LEED Green Building Rating 
System; 
(ii) Energy Star; 
(iii) the CHPS Criteria; 
(iv) Green Globes; or 
(v) an equivalent program adopted by 
the State or another jurisdiction with au-
thority over the local educational agency; 
(G) a description of the steps that the 
State will take to ensure that local educational 
agencies receiving subgrants under this part 
will adequately maintain any facilities that are 
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modernized, renovated, or repaired with such 
subgrant funds; and 
(H) such additional information and assur-
ances as the Secretary may require. 
(b) LOCAL APPLICATION.—A local educational agen-
cy that is eligible under section 223(b)(1) that desires to 
receive a grant under this part shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information and assurances as the Secretary 
may require, which shall include— 
(1) a description of how the local educational 
agency will meet the deadlines and requirements of 
this part; 
(2) a description of the steps that the local edu-
cational agency will take to adequately maintain any 
facilities that are modernized, renovated, or repaired 
with funds under this part; and 
(3) such additional information and assurances 
as the Secretary may require. 
SEC. 226. USE OF FUNDS. 
(a) IN GENERAL.—Funds awarded to local edu-
cational agencies under this part shall be used only for 
either or both of the following modernization, renovation, 
or repair activities in facilities that are used for elemen-
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tary or secondary education or for early learning pro-
grams: 
(1) Direct payments for school modernization, 
renovation, or repair. 
(2) To pay interest on bonds or payments for 
other financing instruments that are newly issued 
for the purpose of financing school modernization, 
renovation, or repair. 
(b) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available under this part shall be used to supplement, and 
not supplant, other Federal, State, and local funds that 
would otherwise be expended to modernize, renovate, or 
repair eligible school facilities. 
(c) PROHIBITION.—Funds awarded to local edu-
cational agencies under this part may not be used for— 
(1) new construction; 
(2) payment of routine maintenance costs; or 
(3) modernization, renovation, or repair of sta-
diums or other facilities primarily used for athletic 
contests or exhibitions or other events for which ad-
mission is charged to the general public. 
SEC. 227. PRIVATE SCHOOLS. 
(a) IN GENERAL.—Section 9501 of the ESEA (20 
U.S.C. 7881) shall apply to this part in the same manner 
as it applies to activities under that Act, except that— 
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(1) such section 9501 shall not apply with re-
spect to the title to any real property modernized, 
renovated, or repaired with assistance provided 
under this part; 
(2) educational services or other benefits funded 
under this part for private schools shall be provided 
only to private, nonprofit elementary or secondary 
schools with a rate of child poverty of at least 40 
percent and may include only— 
(A) modifications of school facilities nec-
essary to meet the standards applicable to pub-
lic schools under the Americans with Disabil-
ities Act of 1990 (42 U.S.C. 12101 et seq.); 
(B) modifications of school facilities nec-
essary to meet the standards applicable to pub-
lic schools under section 504 of the Rehabilita-
tion Act of 1973 (29 U.S.C. 794); and 
(C) asbestos or polychlorinated biphenyls 
abatement or removal from school facilities; and 
(3) expenditures for services provided using 
funds made available under section 226 shall be con-
sidered equal for purposes of section 9501(a)(4) of 
the ESEA if the per-pupil expenditures for services 
described in paragraph (2) for students enrolled in 
private, nonprofit elementary and secondary schools 
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that have child-poverty rates of at least 40 percent 
are consistent with the per-pupil expenditures under 
this part for children enrolled in the public schools 
of the local educational agency receiving funds under 
this part. 
(b) REMAINING FUNDS.—If the expenditure for serv-
ices described in subsection (a)(2) is less than the amount 
calculated under subsection (a)(3) because of insufficient 
need for those services, the remainder shall be available 
to the local educational agency for modernization, renova-
tion, or repair of its school facilities. 
(c) APPLICATION.—If any provision of this section, 
or the application thereof, to any person or circumstance 
is judicially determined to be invalid, the remainder of the 
section and the application to other persons or cir-
cumstances shall not be affected thereby. 
SEC. 228. ADDITIONAL PROVISIONS. 
(a) 24-MONTH PERIOD OF AVAILABILITY.—Funds 
appropriated under section 222 shall be available for obli-
gation by local educational agencies receiving grants from 
the Secretary under section 223(b)(1), by States reserving 
funds under section 224(a), and by local educational agen-
cies receiving subgrants under section 224(b)(1) only dur-
ing the period that ends 24 months after the date of enact-
ment of this Act. 
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(b) 36-MONTH PERIOD OF AVAILABILITY.—Funds 
appropriated under section 222 shall be available for obli-
gation by local educational agencies receiving subgrants 
under section 224(b)(2) only during the period that ends 
36 months after the date of enactment of this Act. 
(c) APPLICABILITY OF GEPA.—Section 439 of the 
General Education Provisions Act (20 U.S.C. 1232b) shall 
apply to funds available under this part. 
(d) LIMITATION.—For purposes of section 223(b)(1), 
Hawaii, the District of Columbia, and the Commonwealth 
of Puerto Rico are not local educational agencies. 
PART II—COMMUNITY COLLEGE 
MODERNIZATION 
SEC. 229. FEDERAL ASSISTANCE FOR COMMUNITY COL-
LEGE MODERNIZATION. 
(a) IN GENERAL.— 
(1) GRANT
PROGRAM.—From the amounts 
made available under subsection (h), the Secretary 
shall award grants to States to modernize, renovate, 
or repair existing facilities at community colleges. 
(2) ALLOCATION.— 
(A) RESERVATIONS.—Of the amount made 
available to carry out this section, the Secretary 
shall reserve— 
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(i) up to 0.25 percent for grants to in-
stitutions that are eligible under section 
316 of the Higher Education Act of 1965 
(20 U.S.C. 1059c) to provide for mod-
ernization, renovation, and repair activities 
described in this section; and 
(ii) up to 0.25 percent for grants to 
the outlying areas to provide for mod-
ernization, renovation, and repair activities 
described in this section. 
(B) ALLOCATION.—After reserving funds 
under subparagraph (A), the Secretary shall al-
locate to each State that has an application ap-
proved by the Secretary an amount that bears 
the same relation to any remaining funds as the 
total number of students in such State who are 
enrolled in institutions described in section 
230(b)(1)(A) plus the number of students who 
are estimated to be enrolled in and pursuing a 
degree or certificate that is not a bachelor’s, 
master’s, professional, or other advanced degree 
in 
institutions 
described 
in 
section 
230(b)(1)(B), based on the proportion of de-
grees or certificates awarded by such institu-
tions that are not bachelor’s, master’s, profes-
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sional, or other advanced degrees, as reported 
to the Integrated Postsecondary Data System 
bears to the estimated total number of such 
students in all States, except that no State shall 
receive less than $2,500,000. 
(C) REALLOCATION.—Amounts not allo-
cated under this section to a State because the 
State either did not submit an application 
under subsection (b), the State submitted an 
application that the Secretary determined did 
not meet the requirements of such subsection, 
or the State cannot demonstrate to the Sec-
retary a sufficient demand for projects to war-
rant the full allocation of the funds, shall be 
proportionately reallocated under this para-
graph to the other States that have a dem-
onstrated need for, and are receiving, alloca-
tions under this section. 
(D) STATE
ADMINISTRATION.—A State 
that receives a grant under this section may use 
not more than one percent of that grant to ad-
minister it, except that no State may use more 
than $750,000 of its grant for this purpose. 
(3) SUPPLEMENT, 
NOT
SUPPLANT.—Funds 
made available under this section shall be used to 
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supplement, and not supplant, other Federal, State, 
and local funds that would otherwise be expended to 
modernize, renovate, or repair existing community 
college facilities. 
(b) APPLICATION.—A State that desires to receive a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing 
such information and assurances as the Secretary may re-
quire. Such application shall include a description of— 
(1) how the funds provided under this section 
will improve instruction at community colleges in the 
State and will improve the ability of those colleges 
to educate and train students to meet the workforce 
needs of employers in the State; 
(2) the projected start of each project and the 
estimated number of persons to be employed in the 
project; and 
(3) the cost of each project and the total 
amount of funds requested for each project and for 
all projects. 
(c) PROHIBITED USES OF FUNDS.— 
(1) IN
GENERAL.—No funds awarded under 
this section may be used for— 
(A) payment of routine maintenance costs; 
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(B) construction, modernization, renova-
tion, or repair of stadiums or other facilities 
primarily used for athletic contests or exhibi-
tions or other events for which admission is 
charged to the general public; or 
(C) construction, modernization, renova-
tion, or repair of facilities— 
(i) used for sectarian instruction, reli-
gious worship, or a school or department 
of divinity; or 
(ii) in which a substantial portion of 
the functions of the facilities are subsumed 
in a religious mission. 
(2) 
FOUR-YEAR
INSTITUTIONS.—No 
funds 
awarded to a four-year public institution of higher 
education under this section may be used for any fa-
cility, service, or program of the institution that is 
not available to students who are pursuing a degree 
or certificate that is not a bachelor’s, master’s, pro-
fessional, or other advanced degree. 
(d) GREEN PROJECTS.—In providing assistance to 
community college projects under this section, the State 
shall consider the extent to which a community college’s 
project involves activities that are certified, verified, or 
consistent with the applicable provisions of— 
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(1) the LEED Green Building Rating System; 
(2) Energy Star; 
(3) the CHPS Criteria, as applicable; 
(4) Green Globes; or 
(5) an equivalent program adopted by the State 
or the State higher education agency that includes 
a verifiable method to demonstrate compliance with 
such program. 
(e) APPLICATION OF GEPA.—Section 439 of the 
General Education Provisions Act (20 U.S.C. 1232b) shall 
apply to funds available under this section. 
(f) REPORTS BY THE STATES.—Each State that re-
ceives a grant under this section shall, not later than Sep-
tember 30, 2012, and annually thereafter for each fiscal 
year in which the State expends funds received under this 
section, submit to the Secretary a report that includes— 
(1) a description of the projects for which the 
grant was, or will be, used; 
(2) a description of the amount and nature of 
the assistance provided to each community college 
under this section; and 
(3) the number of jobs created by the projects 
funded under this section. 
(g) REPORT BY THE SECRETARY.—The Secretary 
shall submit to the authorizing committees (as defined in 
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section 103 of the Higher Education Act of 1965; 20 
U.S.C. 1003) an annual report on the grants made under 
this section, including the information described in sub-
section (f). 
(h) AVAILABILITY OF FUNDS.— 
(1) There are authorized to be appropriated, 
and there are appropriated, to carry out this section 
(in addition to any other amounts appropriated to 
carry out this section and out of any money in the 
Treasury 
not 
otherwise 
appropriated), 
$5,000,000,000 for fiscal year 2012. 
(2) Funds appropriated under this subsection 
shall be available for obligation by community col-
leges only during the period that ends 36 months 
after the date of enactment of this Act. 
PART III—GENERAL PROVISIONS 
SEC. 230. DEFINITIONS. 
(a) ESEA TERMS.—Except as otherwise provided, in 
this subtitle, the terms ‘‘local educational agency’’, ‘‘Sec-
retary’’, and ‘‘State educational agency’’ have the mean-
ings given those terms in section 9101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801). 
(b) ADDITIONAL DEFINITIONS.—The following defi-
nitions apply to this title: 
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(1) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ means— 
(A) a junior or community college, as that 
term is defined in section 312(f) of the Higher 
Education Act of 1965 (20 U.S.C. 1058(f)); or 
(B) an institution of higher education (as 
defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)) that awards a 
significant number of degrees and certificates, 
as determined by the Secretary, that are not— 
(i) bachelor’s degrees (or an equiva-
lent); or 
(ii) master’s, professional, or other 
advanced degrees. 
(2) CHPS CRITERIA.—The term ‘‘CHPS Cri-
teria’’ means the green building rating program de-
veloped by the Collaborative for High Performance 
Schools. 
(3) ENERGY STAR.—The term ‘‘Energy Star’’ 
means the Energy Star program of the United 
States Department of Energy and the United States 
Environmental Protection Agency. 
(4) 
GREEN
GLOBES.—The 
term 
‘‘Green 
Globes’’ means the Green Building Initiative envi-
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ronmental design and rating system referred to as 
Green Globes. 
(5) LEED GREEN BUILDING RATING SYSTEM.— 
The term ‘‘LEED Green Building Rating System’’ 
means the United States Green Building Council 
Leadership in Energy and Environmental Design 
green building rating standard referred to as the 
LEED Green Building Rating System. 
(6) MODERNIZATION, RENOVATION, AND
RE-
PAIR.—The term ‘‘modernization, renovation, and 
repair’’ means— 
(A) comprehensive assessments of facili-
ties, including indoor air-quality assessments, to 
identify— 
(i) facility conditions or deficiencies 
that could adversely affect student and 
staff health, safety, performance, or pro-
ductivity or energy, water, or materials ef-
ficiency; and 
(ii) needed facility improvements; 
(B) repairing, replacing, or installing roofs 
(which may be extensive, intensive, or semi-in-
tensive ‘‘green’’ roofs); electrical wiring; water 
supply and plumbing systems, sewage systems, 
storm water runoff systems, lighting systems 
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(or components of such systems); or building 
envelope, windows, ceilings, flooring, or doors, 
including security doors; 
(C) repairing, replacing, or installing heat-
ing, ventilation, or air conditioning systems, or 
components of those systems (including insula-
tion) to improve energy efficiency; 
(D) compliance with fire, health, seismic, 
and safety codes, including professional installa-
tion of fire and life safety alarms, and mod-
ernizations, renovations, and repairs that en-
sure that facilities are prepared for such emer-
gencies as acts of terrorism, campus violence, 
and natural disasters, such as improving build-
ing infrastructure to accommodate security 
measures and installing or upgrading tech-
nology to ensure that a school or incident is 
able to respond to such emergencies; 
(E) making modifications necessary to 
make educational facilities accessible in compli-
ance with the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12101 et seq.) and section 
504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), except that such modifications 
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shall not be the primary use of a grant or 
subgrant; 
(F) abatement, removal, or interim con-
trols of asbestos, polychlorinated biphenyls, 
mold, mildew, or lead-based hazards, including 
lead-based paint hazards; 
(G) retrofitting necessary to increase en-
ergy efficiency; 
(H) measures, such as selection and sub-
stitution of products and materials, and imple-
mentation of improved maintenance and oper-
ational procedures, such as ‘‘green cleaning’’ 
programs, to reduce or eliminate potential stu-
dent or staff exposure to— 
(i) volatile organic compounds; 
(ii) particles such as dust and pollens; 
or 
(iii) combustion gases; 
(I) modernization, renovation, or repair 
necessary to reduce the consumption of coal, 
electricity, land, natural gas, oil, or water; 
(J) installation or upgrading of educational 
technology infrastructure; 
(K) installation or upgrading of renewable 
energy generation and heating systems, includ-
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ing solar, photovoltaic, wind, biomass (including 
wood pellet and woody biomass), waste-to-en-
ergy, solar-thermal, and geothermal systems, 
and energy audits; 
(L) modernization, renovation, or repair 
activities related to energy efficiency and renew-
able energy, and improvements to building in-
frastructures to accommodate bicycle and pe-
destrian access; 
(M) ground improvements, storm water 
management, landscaping, and environmental 
clean-up when necessary; 
(N) other modernization, renovation, or re-
pair to— 
(i) improve teachers’ ability to teach 
and students’ ability to learn; 
(ii) ensure the health and safety of 
students and staff; or 
(iii) improve classroom, laboratory, 
and vocational facilities in order to en-
hance the quality of science, technology, 
engineering, and mathematics instruction; 
and 
(O) required environmental remediation re-
lated to facilities modernization, renovation, or 
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repair activities described in subparagraphs (A) 
through (N). 
(7) OUTLYING
AREA.—The term ‘‘outlying 
area’’ means the U.S. Virgin Islands, Guam, Amer-
ican Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Republic of Palau. 
(8) STATE.—The term ‘‘State’’ means each of 
the 50 States of the United States, the Common-
wealth of Puerto Rico, and the District of Columbia. 
SEC. 231. BUY AMERICAN. 
Section 1605 of division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111–5) applies 
to funds made available under this title. 
Subtitle E—Immediate Transpor-
tation 
Infrastructure 
Invest-
ments 
SEC. 241. IMMEDIATE TRANSPORTATION INFRASTRUCTURE 
INVESTMENTS. 
(a) GRANTS-IN-AID FOR AIRPORTS.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $2,000,000,000 to 
carry out airport improvement under subchapter I of 
chapter 471 and subchapter I of chapter 475 of title 
49, United States Code. 
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(2) FEDERAL SHARE; LIMITATION ON OBLIGA-
TIONS.—The Federal share payable of the costs for 
which a grant is made under this subsection, shall 
be 100 percent. The amount made available under 
this subsection shall not be subject to any limitation 
on obligations for the Grants-In-Aid for Airports 
program set forth in any Act or in title 49, United 
States Code. 
(3) DISTRIBUTION OF FUNDS.—Funds provided 
to the Secretary under this subsection shall not be 
subject to apportionment formulas, special appor-
tionment categories, or minimum percentages under 
chapter 471 of such title. 
(4) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
(5) ADMINISTRATIVE EXPENSES.—Of the funds 
made available under this subsection, 0.3 percent 
shall be available to the Secretary for administrative 
expenses, shall remain available for obligation until 
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September 30, 2015, and may be used in conjunc-
tion with funds otherwise provided for the adminis-
tration of the Grants-In-Aid for Airports program. 
(b) NEXT GENERATION AIR TRAFFIC CONTROL AD-
VANCEMENTS.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $1,000,000,000 for 
necessary Federal Aviation Administration capital, 
research, and operating costs to carry out Next Gen-
eration air traffic control system advancements. 
(2) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. 
(c) HIGHWAY INFRASTRUCTURE INVESTMENT.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $27,000,000,000 
for restoration, repair, construction and other activi-
ties eligible under section 133(b) of title 23, United 
States Code, and for passenger and freight rail 
transportation and port infrastructure projects eligi-
ble for assistance under section 601(a)(8) of title 23. 
(2) FEDERAL SHARE; LIMITATION ON OBLIGA-
TIONS.—The Federal share payable on account of 
any project or activity carried out with funds made 
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available under this subsection shall be, at the op-
tion of the recipient, up to 100 percent of the total 
cost thereof. The amount made available under this 
subsection shall not be subject to any limitation on 
obligations for Federal-aid highways and highway 
safety construction programs set forth in any Act or 
in title 23, United States Code. 
(3) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
(4) DISTRIBUTION OF FUNDS.—Of the funds 
provided in this subsection, after making the set- 
asides required by paragraphs (9), (10), (11), (12), 
and (15), 50 percent of the funds shall be appor-
tioned to States using the formula set forth in sec-
tion 104(b)(3) of title 23, United States Code, and 
the remaining funds shall be apportioned to States 
in the same ratio as the obligation limitation for fis-
cal year 2010 was distributed among the States in 
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accordance with the formula specified in section 
120(a)(6) of division A of Public Law 111–117. 
(5) APPORTIONMENT.—Apportionments under 
paragraph (4) shall be made not later than 30 days 
after the date of the enactment of this Act. 
(6) REDISTRIBUTION.— 
(A) The Secretary shall, 180 days fol-
lowing the date of apportionment, withdraw 
from each State an amount equal to 50 percent 
of the funds apportioned under paragraph (4) 
to that State (excluding funds suballocated 
within the State) less the amount of funding 
obligated (excluding funds suballocated within 
the State), and the Secretary shall redistribute 
such amounts to other States that have had no 
funds withdrawn under this subparagraph in 
the manner described in section 120(c) of divi-
sion A of Public Law 111–117. 
(B) One year following the date of appor-
tionment, the Secretary shall withdraw from 
each recipient of funds apportioned under para-
graph (4) any unobligated funds, and the Sec-
retary shall redistribute such amounts to States 
that have had no funds withdrawn under this 
paragraph (excluding funds suballocated within 
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the State) in the manner described in section 
120(c) of division A of Public Law 111–117. 
(C) At the request of a State, the Sec-
retary may provide an extension of the one-year 
period only to the extent that the Secretary de-
termines that the State has encountered ex-
treme conditions that create an unworkable bid-
ding environment or other extenuating cir-
cumstances. Before granting an extension, the 
Secretary notify in writing the Committee on 
Transportation and Infrastructure and the 
Committee on Environment and Public Works, 
providing a thorough justification for the exten-
sion. 
(7) TRANSPORTATION ENHANCEMENTS.—Three 
percent of the funds apportioned to a State under 
paragraph (4) shall be set aside for the purposes de-
scribed in section 133(d)(2) of title 23, United 
States Code (without regard to the comparison to 
fiscal year 2005). 
(8) SUBALLOCATION.—Thirty percent of the 
funds apportioned to a State under this subsection 
shall be suballocated within the State in the manner 
and for the purposes described in the first sentence 
of 
sections 
133(d)(3)(A), 
133(d)(3)(B), 
and 
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133(d)(3)(D) of title 23, United States Code. Such 
suballocation shall be conducted in every State. 
Funds suballocated within a State to urbanized 
areas and other areas shall not be subject to the re-
distribution of amounts required 180 days following 
the date of apportionment of funds provided by 
paragraph (6)(A). 
(9) PUERTO RICO AND TERRITORIAL HIGHWAY 
PROGRAMS.—Of the funds provided under this sub-
section, $105,000,000 shall be set aside for the 
Puerto Rico highway program authorized under sec-
tion 165 of title 23, United States Code, and 
$45,000,000 shall be for the territorial highway pro-
gram authorized under section 215 of title 23, 
United States Code. 
(10) FEDERAL LANDS AND INDIAN RESERVA-
TIONS.—Of the funds provided under this sub-
section, $550,000,000 shall be set aside for invest-
ments in transportation at Indian reservations and 
Federal lands in accordance with the following:. 
(A) Of the funds set aside by this para-
graph, $310,000,000 shall be for the Indian 
Reservation 
Roads 
program, 
$170,000,000 
shall be for the Park Roads and Parkways pro-
gram, $60,000,000 shall be for the Forest 
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Highway Program, and $10,000,000 shall be 
for the Refuge Roads program. 
(B) For investments at Indian reservations 
and Federal lands, priority shall be given to 
capital investments, and to projects and activi-
ties that can be completed within 2 years of en-
actment of this Act. 
(C) One year following the enactment of 
this Act, to ensure the prompt use of the fund-
ing provided for investments at Indian reserva-
tions and Federal lands, the Secretary shall 
have the authority to redistribute unobligated 
funds within the respective program for which 
the funds were appropriated. 
(D) Up to four percent of the funding pro-
vided for Indian Reservation Roads may be 
used by the Secretary of the Interior for pro-
gram management and oversight and project-re-
lated administrative expenses. 
(E) Section 134(f)(3)(C)(ii)(II) of title 23, 
United States Code, shall not apply to funds set 
aside by this paragraph. 
(11) JOB
TRAINING.—Of the funds provided 
under this subsection, $50,000,000 shall be set aside 
for the development and administration of transpor-
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tation training programs under section 140(b) title 
23, United States Code. 
(A) Funds set aside under this subsection 
shall be competitively awarded and used for the 
purpose of providing training, apprenticeship 
(including Registered Apprenticeship), skill de-
velopment, and skill improvement programs, as 
well as summer transportation institutes and 
may be transferred to, or administered in part-
nership with, the Secretary of Labor and shall 
demonstrate to the Secretary of Transportation 
program outcomes, including— 
(i) impact on areas with transpor-
tation workforce shortages; 
(ii) diversity of training participants; 
(iii) number of participants obtaining 
certifications or credentials required for 
specific types of employment; 
(iv) employment outcome metrics, 
such as job placement and job retention 
rates, established in consultation with the 
Secretary of Labor and consistent with 
metrics used by programs under the Work-
force Investment Act; 
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(v) to the extent practical, evidence 
that the program did not preclude workers 
that participate in training or apprentice-
ship activities under the program from 
being referred to, or hired on, projects 
funded under this chapter; and 
(vi) identification of areas of collabo-
ration with the Department of Labor pro-
grams, including co-enrollment. 
(B) To be eligible to receive a competitively 
awarded grant under this subsection, a State 
must certify that at least 0.1 percent of the 
amounts apportioned under the Surface Trans-
portation Program and Bridge Program will be 
obligated in the first fiscal year after enactment 
of this act for job training activities consistent 
with section 140(b) of title 23, United States 
Code. 
(12) 
DISADVANTAGED
BUSINESS
ENTER-
PRISES.—Of the funds provided under this sub-
section, $10,000,000 shall be set aside for training 
programs and assistance programs under section 
140(c) of title 23, United States Code. Funds set 
aside under this paragraph should be allocated to 
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businesses that have proven success in adding staff 
while effectively completing projects. 
(13) STATE
PLANNING
AND
OVERSIGHT
EX-
PENSES.—Of amounts apportioned under paragraph 
(4) of this subsection, a State may use up to 0.5 
percent for activities related to projects funded 
under this subsection, including activities eligible 
under sections 134 and 135 of title 23, United 
States Code, State administration of subgrants, and 
State oversight of subrecipients. 
(14) CONDITIONS.— 
(A) Funds made available under this sub-
section shall be administered as if apportioned 
under chapter 1 of title 23, United States Code, 
except for funds made available for investments 
in transportation at Indian reservations and 
Federal lands, and for the territorial highway 
program, which shall be administered in accord-
ance with chapter 2 of title 23, United States 
Code, and except for funds made available for 
disadvantaged business enterprises bonding as-
sistance, which shall be administered in accord-
ance with chapter 3 of title 49, United States 
Code. 
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(B) Funds made available under this sub-
section shall not be obligated for the purposes 
authorized under section 115(b) of title 23, 
United States Code. 
(C) Funding provided under this sub-
section shall be in addition to any and all funds 
provided for fiscal years 2011 and 2012 in any 
other Act for ‘‘Federal-aid Highways’’ and shall 
not affect the distribution of funds provided for 
‘‘Federal-aid Highways’’ in any other Act. 
(D) Section 1101(b) of Public Law 109–59 
shall apply to funds apportioned under this sub-
section. 
(15) OVERSIGHT.—The Administrator of the 
Federal Highway Administration may set aside up 
to 0.15 percent of the funds provided under this 
subsection to fund the oversight by the Adminis-
trator of projects and activities carried out with 
funds made available to the Federal Highway Ad-
ministration in this Act, and such funds shall be 
available through September 30, 2015. 
(d) CAPITAL ASSISTANCE FOR HIGH SPEED RAIL 
CORRIDORS
AND INTERCITY PASSENGER RAIL SERV-
ICE.— 
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(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $4,000,000,000 for 
grants for high-speed rail projects as authorized 
under sections 26104 and 26106 of title 49, United 
States Code, capital investment grants to support 
intercity passenger rail service as authorized under 
section 24406 of title 49, United States Code, and 
congestion grants as authorized under section 24105 
of title 49, United States Code, and to enter into co-
operative agreements for these purposes as author-
ized, except that the Administrator of the Federal 
Railroad Administration may retain up to one per-
cent of the funds provided under this heading to 
fund the award and oversight by the Administrator 
of grants made under this subsection, which retained 
amount shall remain available for obligation until 
September 30, 2015. 
(2) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
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(3) FEDERAL SHARE.—The Federal share pay-
able of the costs for which a grant or cooperative 
agreements is made under this subsection shall be, 
at the option of the recipient, up to 100 percent. 
(4) INTERIM GUIDANCE.—The Secretary shall 
issue interim guidance to applicants covering appli-
cation procedures and administer the grants pro-
vided under this subsection pursuant to that guid-
ance until final regulations are issued. 
(5) INTERCITY PASSENGER RAIL CORRIDORS.— 
Not less than 85 percent of the funds provided 
under this subsection shall be for cooperative agree-
ments that lead to the development of entire seg-
ments or phases of intercity or high-speed rail cor-
ridors. 
(6) CONDITIONS.— 
(A) In addition to the provisions of title 
49, United States Code, that apply to each of 
the individual programs funded under this sub-
section, subsections 24402(a)(2), 24402(i), and 
24403(a) and (c) of title 49, United States 
Code, shall also apply to the provision of funds 
provided under this subsection. 
(B) A project need not be in a State rail 
plan developed under Chapter 227 of title 49, 
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United States Code, to be eligible for assistance 
under this subsection. 
(C) Recipients of grants under this para-
graph shall conduct all procurement trans-
actions using such grant funds in a manner 
that provides full and open competition, as de-
termined by the Secretary, in compliance with 
existing labor agreements. 
(e) CAPITAL GRANTS TO THE NATIONAL RAILROAD 
PASSENGER CORPORATION.— 
(1) IN
GENERAL.—There is made available 
$2,000,000,000 to enable the Secretary of Transpor-
tation to make capital grants to the National Rail-
road Passenger Corporation (Amtrak), as authorized 
by section 101(c) of the Passenger Rail Investment 
and Improvement Act of 2008 (Public Law 110– 
432). 
(2) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
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(3) PROJECT PRIORITY.—The priority for the 
use of funds shall be given to projects for the repair, 
rehabilitation, or upgrade of railroad assets or infra-
structure, and for capital projects that expand pas-
senger rail capacity including the rehabilitation of 
rolling stock. 
(4) CONDITIONS.— 
(A) None of the funds under this sub-
section shall be used to subsidize the operating 
losses of Amtrak. 
(B) The funds provided under this sub-
section shall be awarded not later than 90 days 
after the date of enactment of this Act. 
(C) The Secretary shall take measures to 
ensure that projects funded under this sub-
section shall be completed within 2 years of en-
actment of this Act, and shall serve to supple-
ment and not supplant planned expenditures for 
such activities from other Federal, State, local 
and corporate sources. The Secretary shall cer-
tify to the House and Senate Committees on 
Appropriations in writing compliance with the 
preceding sentence. 
(5) OVERSIGHT.—The Administrator of the 
Federal Railroad Administration may set aside 0.5 
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percent of the funds provided under this subsection 
to fund the oversight by the Administrator of 
projects and activities carried out with funds made 
available in this subsection, and such funds shall be 
available through September 30, 2015. 
(f) TRANSIT CAPITAL ASSISTANCE.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $3,000,000,000 for 
grants for transit capital assistance grants as de-
fined by section 5302(a)(1) of title 49, United 
States Code. Notwithstanding any provision of chap-
ter 53 of title 49, however, a recipient of funding 
under this subsection may use up to 10 percent of 
the amount provided for the operating costs of 
equipment and facilities for use in public transpor-
tation or for other eligible activities. 
(2) FEDERAL SHARE; LIMITATION ON OBLIGA-
TIONS.—The applicable requirements of chapter 53 
of title 49, United States Code, shall apply to fund-
ing provided under this subsection, except that the 
Federal share of the costs for which any grant is 
made under this subsection shall be, at the option of 
the recipient, up to 100 percent. The amount made 
available under this subsection shall not be subject 
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to any limitation on obligations for transit programs 
set forth in any Act or chapter 53 of title 49. 
(3) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
(4) DISTRIBUTION OF FUNDS.—The Secretary 
of Transportation shall— 
(A) provide 80 percent of the funds appro-
priated under this subsection for grants under 
section 5307 of title 49, United States Code, 
and apportion such funds in accordance with 
section 5336 of such title; 
(B) provide 10 percent of the funds appro-
priated under this subsection in accordance 
with section 5340 of such title; and 
(C) provide 10 percent of the funds appro-
priated under this subsection for grants under 
section 5311 of title 49, United States Code, 
and apportion such funds in accordance with 
such section. 
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(5) APPORTIONMENT.—The funds apportioned 
under this subsection shall be apportioned not later 
than 21 days after the date of the enactment of this 
Act. 
(6) REDISTRIBUTION.— 
(A) The Secretary shall, 180 days fol-
lowing the date of apportionment, withdraw 
from each urbanized area or State an amount 
equal to 50 percent of the funds apportioned to 
such urbanized areas or States less the amount 
of funding obligated, and the Secretary shall re-
distribute such amounts to other urbanized 
areas or States that have had no funds with-
drawn under this proviso utilizing whatever 
method he deems appropriate to ensure that all 
funds redistributed under this proviso shall be 
utilized promptly. 
(B) One year following the date of appor-
tionment, the Secretary shall withdraw from 
each urbanized area or State any unobligated 
funds, and the Secretary shall redistribute such 
amounts to other urbanized areas or States 
that have had no funds withdrawn under this 
proviso utilizing whatever method the Secretary 
deems appropriate to ensure that all funds re-
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distributed under this proviso shall be utilized 
promptly. 
(C) At the request of an urbanized area or 
State, the Secretary of Transportation may pro-
vide an extension of such 1-year period if the 
Secretary determines that the urbanized area or 
State has encountered an unworkable bidding 
environment 
or 
other 
extenuating 
cir-
cumstances. Before granting an extension, the 
Secretary shall notify in writing the Committee 
on Transportation and Infrastructure and the 
Committee on Banking, Housing and Urban 
Affairs, providing a thorough justification for 
the extension. 
(7) CONDITIONS.— 
(A) Of the funds provided for section 5311 
of title 49, United States Code, 2.5 percent 
shall be made available for section 5311(c)(1). 
(B) Section 1101(b) of Public Law 109–59 
shall apply to funds appropriated under this 
subsection. 
(C) The funds appropriated under this 
subsection shall not be comingled with any prior 
year funds. 
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(8) OVERSIGHT.—Notwithstanding any other 
provision of law, 0.3 percent of the funds provided 
for grants under section 5307 and section 5340, and 
0.3 percent of the funds provided for grants under 
section 5311, shall be available for administrative 
expenses and program management oversight, and 
such funds shall be available through September 30, 
2015. 
(g) STATE OF GOOD REPAIR.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $6,000,000,000 for 
capital expenditures as authorized by sections 
5309(b)(2) and (3) of title 49, United States Code. 
(2) FEDERAL SHARE.—The applicable require-
ments of chapter 53 of title 49, United States Code, 
shall apply, except that the Federal share of the 
costs for which a grant is made under this sub-
section shall be, at the option of the recipient, up to 
100 percent. 
(3) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
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ment and obligate remaining amounts not later than 
two years after enactment. 
(4) DISTRIBUTION OF FUNDS.— 
(A) The Secretary of Transportation shall 
apportion not less than 75 percent of the funds 
under this subsection for the modernization of 
fixed guideway systems, pursuant to the for-
mula set forth in section 5336(b) title 49, 
United States Code, other than subsection 
(b)(2)(A)(ii). 
(B) Of the funds appropriated under this 
subsection, not less than 25 percent shall be 
available for the restoration or replacement of 
existing public transportation assets related to 
bus systems, pursuant to the formula set forth 
in section 5336 other than subsection (b). 
(5) APPORTIONMENT.—The funds made avail-
able under this subsection shall be apportioned not 
later than 30 days after the date of the enactment 
of this Act. 
(6) REDISTRIBUTION.— 
(A) The Secretary shall, 180 days fol-
lowing the date of apportionment, withdraw 
from each urbanized area an amount equal to 
50 percent of the funds apportioned to such ur-
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banized area less the amount of funding obli-
gated, and the Secretary shall redistribute such 
amounts to other urbanized areas that have had 
no funds withdrawn under this paragraph uti-
lizing whatever method the Secretary deems ap-
propriate to ensure that all funds redistributed 
under this paragraph shall be utilized promptly. 
(B) One year following the date of appor-
tionment, the Secretary shall withdraw from 
each urbanized area any unobligated funds, and 
the Secretary shall redistribute such amounts to 
other urbanized areas that have had no funds 
withdrawn under this paragraph, utilizing what-
ever method the Secretary deems appropriate to 
ensure that all funds redistributed under this 
paragraph shall be utilized promptly. 
(C) At the request of an urbanized area, 
the Secretary may provide an extension of the 
1-year period if the Secretary finds that the ur-
banized area has encountered an unworkable 
bidding environment or other extenuating cir-
cumstances. Before granting an extension, the 
Secretary shall notify the Committee on Trans-
portation and Infrastructure and the Com-
mittee on Banking, Housing, and Urban Af-
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fairs, providing a thorough justification for the 
extension. 
(7) CONDITIONS.— 
(A) The provisions of section 1101(b) of 
Public Law 109–59 shall apply to funds made 
available under this subsection. 
(B) The funds appropriated under this 
subsection shall not be commingled with any 
prior year funds. 
(8) OVERSIGHT.—Notwithstanding any other 
provision of law, 0.3 percent of the funds under this 
subsection shall be available for administrative ex-
penses and program management oversight and shall 
remain available for obligation until September 30, 
2015. 
(h) TRANSPORTATION
INFRASTRUCTURE
GRANTS 
AND FINANCING.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $5,000,000,000 for 
capital investments in surface transportation infra-
structure. The Secretary shall distribute funds pro-
vided under this subsection as discretionary grants 
to be awarded to State and local governments or 
transit agencies on a competitive basis for projects 
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that will have a significant impact on the Nation, a 
metropolitan area, or a region. 
(2) FEDERAL SHARE; LIMITATION ON OBLIGA-
TIONS.—The Federal share payable of the costs for 
which a grant is made under this subsection, shall 
be 100 percent. 
(3) AVAILABILITY.—The amounts made avail-
able under this subsection shall be available for obli-
gation until the date that is two years after the date 
of the enactment of this Act. The Secretary shall ob-
ligate amounts totaling not less than 50 percent of 
the funds made available within one year of enact-
ment and obligate remaining amounts not later than 
two years after enactment. 
(4) PROJECT ELIGIBILITY.—Projects eligible for 
funding provided under this subsection include— 
(A) highway or bridge projects eligible 
under title 23, United States Code, including 
interstate rehabilitation, improvements to the 
rural collector road system, the reconstruction 
of overpasses and interchanges, bridge replace-
ments, seismic retrofit projects for bridges, and 
road realignments; 
(B) public transportation projects eligible 
under chapter 53 of title 49, United States 
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Code, including investments in projects partici-
pating in the New Starts or Small Starts pro-
grams that will expedite the completion of those 
projects and their entry into revenue service; 
(C) passenger and freight rail transpor-
tation projects; and 
(D) port infrastructure investments, in-
cluding projects that connect ports to other 
modes of transportation and improve the effi-
ciency of freight movement. 
(5) TIFIA 
PROGRAM.—The Secretary may 
transfer to the Federal Highway Administration 
funds made available under this subsection for the 
purpose of paying the subsidy and administrative 
costs of projects eligible for Federal credit assistance 
under chapter 6 of title 23, United States Code, if 
the Secretary finds that such use of the funds would 
advance the purposes of this subsection. 
(6) PROJECT
PRIORITY.—The Secretary shall 
give priority to projects that are expected to be com-
pleted within 3 years of the date of the enactment 
of this Act. 
(7) DEADLINE FOR ISSUANCE OF COMPETITION 
CRITERIA.—The Secretary shall publish criteria on 
which to base the competition for any grants award-
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ed under this subsection not later than 90 days after 
enactment of this Act. The Secretary shall require 
applications for funding provided under this sub-
section to be submitted not later than 180 days after 
the publication of the criteria, and announce all 
projects selected to be funded from such funds not 
later than 1 year after the date of the enactment of 
the Act. 
(8) APPLICABILITY OF TITLE 40.—Each project 
conducted using funds provided under this sub-
section shall comply with the requirements of sub-
chapter IV of chapter 31 of title 40, United States 
Code. 
(9) ADMINISTRATIVE
EXPENSES.—The Sec-
retary may retain up to one half of one percent of 
the funds provided under this subsection, and may 
transfer portions of those funds to the Administra-
tors of the Federal Highway Administration, the 
Federal Transit Administration, the Federal Rail-
road Administration and the Maritime Administra-
tion, to fund the award and oversight of grants 
made under this subsection. Funds retained shall re-
main available for obligation until September 30, 
2015. 
(i) LOCAL HIRING.— 
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(1) IN GENERAL.—In the case of the funding 
made available under subsections (a) through (h) of 
this section, the Secretary of Transportation may es-
tablish standards under which a contract for con-
struction may be advertised that contains require-
ments for the employment of individuals residing in 
or adjacent to any of the areas in which the work 
is to be performed to perform construction work re-
quired under the contract, provided that— 
(A) all or part of the construction work 
performed under the contract occurs in an area 
designated by the Secretary as an area of high 
unemployment, using data reported by the 
United States Department of Labor, Bureau of 
Labor Statistics; 
(B) the estimated cost of the project of 
which the contract is a part is greater than $10 
million, except that the estimated cost of the 
project in the case of construction funded under 
subsection (c) shall be greater than $50 million; 
and 
(C) the recipient may not require the hir-
ing of individuals who do not have the nec-
essary skills to perform work in any craft or 
trade; provided that the recipient may require 
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the hiring of such individuals if the recipient es-
tablishes reasonable provisions to train such in-
dividuals to perform any such work under the 
contract effectively. 
(2) PROJECT STANDARDS.— 
(A) IN GENERAL.—Any standards estab-
lished by the Secretary under this section shall 
ensure that any requirements specified under 
subsection (c)(1)— 
(i) do not compromise the quality of 
the project; 
(ii) are reasonable in scope and appli-
cation; 
(iii) do not unreasonably delay the 
completion of the project; and 
(iv) do not unreasonably increase the 
cost of the project; 
(B) AVAILABLE
PROGRAMS.—The Sec-
retary shall make available to recipients the 
workforce development and training programs 
set forth in section 24604(e)(1)(D) of this title 
to assist recipients who wish to establish train-
ing programs that satisfy the provisions of sec-
tion (c)(1)(C). The Secretary of Labor shall 
make available its qualifying workforce and 
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training development programs to recipients 
who wish to establish training programs that 
satisfy the provisions of section (c)(1)(C). 
(3) IMPLEMENTING
REGULATIONS.—The Sec-
retary shall promulgate final regulations to imple-
ment the authority of this subsection. 
(j) ADMINISTRATIVE PROVISIONS.— 
(1) APPLICABILITY OF TITLE 40.—Each project 
conducted using funds provided under this subtitle 
shall comply with the requirements of subchapter IV 
of chapter 31 of title 40, United States Code. 
(2) BUY AMERICAN.—Section 1605 of division 
A of the American Recovery and Reinvestment Act 
of 2009 (Public Law 111–5) applies to each project 
conducted using funds provided under this subtitle. 
Subtitle F—Building and Upgrad-
ing 
Infrastructure 
for 
Long- 
Term Development 
SEC. 242. SHORT TITLE. 
This subtitle may be cited as the ‘‘Building and Up-
grading Infrastructure for Long-Term Development Act’’. 
SEC. 243. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds that— 
(1) infrastructure has always been a vital ele-
ment of the economic strength of the United States 
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and a key indicator of the international leadership of 
the United States; 
(2) the Erie Canal, the Hoover Dam, the rail-
roads, and the interstate highway system are all tes-
taments to American ingenuity and have helped pro-
pel and maintain the United States as the world’s 
largest economy; 
(3) according to the World Economic Forum’s 
Global Competitiveness Report, the United States 
fell to second place in 2009, and dropped to fourth 
place overall in 2010, however, in the ‘‘Quality of 
overall infrastructure’’ category of the same report, 
the United States ranked twenty-third in the world; 
(4) according to the World Bank’s 2010 Logis-
tic Performance Index, the capacity of countries to 
efficiently move goods and connect manufacturers 
and consumers with international markets is improv-
ing around the world, and the United States now 
ranks seventh in the world in logistics-related infra-
structure behind countries from both Europe and 
Asia; 
(5) according to a January 2009 report from 
the University of Massachusetts/Alliance for Amer-
ican Manufacturing entitled ‘‘Employment, Produc-
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tivity and Growth,’’ infrastructure investment is a 
‘‘highly effective engine of job creation’’; 
(6) according to the American Society of Civil 
Engineers, the current condition of the infrastruc-
ture in the United States earns a grade point aver-
age of D, and an estimated $2,200,000,000,000 in-
vestment is needed over the next 5 years to bring 
American infrastructure up to adequate condition; 
(7) according to the National Surface Trans-
portation Policy and Revenue Study Commission, 
$225,000,000,000 is needed annually from all 
sources for the next 50 years to upgrade the United 
States surface transportation system to a state of 
good repair and create a more advanced system; 
(8) the current infrastructure financing mecha-
nisms of the United States, both on the Federal and 
State level, will fail to meet current and foreseeable 
demands and will create large funding gaps; 
(9) published reports state that there may not 
be enough demand for municipal bonds to maintain 
the same level of borrowing at the same rates, re-
sulting in significantly decreased infrastructure in-
vestment at the State and local level; 
(10) current funding mechanisms are not read-
ily scalable and do not— 
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(A) serve large in-State or cross jurisdic-
tion infrastructure projects, projects of regional 
or national significance, or projects that cross 
sector silos; 
(B) sufficiently catalyze private sector in-
vestment; or 
(C) ensure the optimal return on public re-
sources; 
(11) although grant programs of the United 
States Government must continue to play a central 
role in financing the transportation, environment, 
and energy infrastructure needs of the United 
States, current and foreseeable demands on existing 
Federal, State, and local funding for infrastructure 
expansion clearly exceed the resources to support 
these programs by margins wide enough to prompt 
serious concerns about the United States ability to 
sustain long-term economic development, produc-
tivity, and international competitiveness; 
(12) the capital markets, including pension 
funds, private equity funds, mutual funds, sovereign 
wealth funds, and other investors, have a growing 
interest in infrastructure investment and represent 
hundreds of billions of dollars of potential invest-
ment; and 
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(13) the establishment of a United States Gov-
ernment-owned, independent, professionally managed 
institution that could provide credit support to quali-
fied infrastructure projects of regional and national 
significance, making transparent merit-based invest-
ment decisions based on the commercial viability of 
infrastructure projects, would catalyze the participa-
tion of significant private investment capital. 
(b) PURPOSE.—The purpose of this Act is to facili-
tate investment in, and long-term financing of, economi-
cally viable infrastructure projects of regional or national 
significance in a manner that both complements existing 
Federal, State, local, and private funding sources for these 
projects and introduces a merit-based system for financing 
such projects, in order to mobilize significant private sec-
tor investment, create jobs, and ensure United States com-
petitiveness through an institution that limits the need for 
ongoing Federal funding. 
SEC. 244. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) AIFA.—The term ‘‘AIFA’’ means the 
American Infrastructure Financing Authority estab-
lished under this Act. 
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(2) BLIND
TRUST.—The term ‘‘blind trust’’ 
means a trust in which the beneficiary has no knowl-
edge of the specific holdings and no rights over how 
those holdings are managed by the fiduciary of the 
trust prior to the dissolution of the trust. 
(3) BOARD OF DIRECTORS.—The term ‘‘Board 
of Directors’’ means Board of Directors of AIFA. 
(4) CHAIRPERSON.—The term ‘‘Chairperson’’ 
means the Chairperson of the Board of Directors of 
AIFA. 
(5) CHIEF
EXECUTIVE
OFFICER.—The term 
‘‘chief executive officer’’ means the chief executive 
officer of AIFA, appointed under section 247. 
(6) COST.—The term ‘‘cost’’ has the same 
meaning as in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a). 
(7) DIRECT LOAN.—The term ‘‘direct loan’’ has 
the same meaning as in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a). 
(8) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means an individual, corporation, partnership 
(including a public-private partnership), joint ven-
ture, trust, State, or other non-Federal govern-
mental entity, including a political subdivision or any 
other instrumentality of a State, or a revolving fund. 
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(9) INFRASTRUCTURE PROJECT.— 
(A) IN GENERAL.—The term ‘‘eligible in-
frastructure project’’ means any non-Federal 
transportation, water, or energy infrastructure 
project, or an aggregation of such infrastruc-
ture projects, as provided in this Act. 
(B) TRANSPORTATION
INFRASTRUCTURE 
PROJECT.—The term ‘‘transportation infra-
structure project’’ means the construction, al-
teration, or repair, including the facilitation of 
intermodal transit, of the following subsectors: 
(i) Highway or road. 
(ii) Bridge. 
(iii) Mass transit. 
(iv) Inland waterways. 
(v) Commercial ports. 
(vi) Airports. 
(vii) Air traffic control systems. 
(viii) Passenger rail, including high- 
speed rail. 
(ix) Freight rail systems. 
(C) WATER INFRASTRUCTURE PROJECT.— 
The term ‘‘water infrastructure project’’ means 
the construction, consolidation, alteration, or 
repair of the following subsectors: 
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(i) Waterwaste treatment facility. 
(ii) Storm water management system. 
(iii) Dam. 
(iv) Solid waste disposal facility. 
(v) Drinking water treatment facility. 
(vi) Levee. 
(vii) Open space management system. 
(D) 
ENERGY
INFRASTRUCTURE 
PROJECT.—The term ‘‘energy infrastructure 
project’’ means the construction, alteration, or 
repair of the following subsectors: 
(i) Pollution reduced energy genera-
tion. 
(ii) Transmission and distribution. 
(iii) Storage. 
(iv) Energy efficiency enhancements 
for buildings, including public and com-
mercial buildings. 
(E) BOARD AUTHORITY TO MODIFY SUB-
SECTORS.—The Board of Directors may make 
modifications, at the discretion of the Board, to 
the subsectors described in this paragraph by a 
vote of not fewer than 5 of the voting members 
of the Board of Directors. 
(10) INVESTMENT PROSPECTUS.— 
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(A) The term ‘‘investment prospectus’’ 
means the processes and publications described 
below that will guide the priorities and strategic 
focus for the Bank’s investments. The invest-
ment prospectus shall follow rulemaking proce-
dures under section 553 of title 5, United 
States Code. 
(B) The Bank shall publish a detailed de-
scription of its strategy in an Investment Pro-
spectus within one year of the enactment of this 
subchapter. The Investment Prospectus shall— 
(i) specify what the Bank shall con-
sider significant to the economic competi-
tiveness of the United States or a region 
thereof in a manner consistent with the 
primary objective; 
(ii) specify the priorities and strategic 
focus of the Bank in forwarding its stra-
tegic objectives and carrying out the Bank 
strategy; 
(iii) specify the priorities and strategic 
focus of the Bank in promoting greater ef-
ficiency in the movement of freight; 
(iv) specify the priorities and strategic 
focus of the Bank in promoting the use of 
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100 
innovation and best practices in the plan-
ning, design, development and delivery of 
projects; 
(v) describe in detail the framework 
and methodology for calculating applica-
tion qualification scores and associated 
ranges as specified in this subchapter, 
along with the data to be requested from 
applicants and the mechanics of calcula-
tions to be applied to that data to deter-
mine qualification scores and ranges; 
(vi) describe how selection criteria will 
be applied by the Chief Executive Officer 
in determining the competitiveness of an 
application and its qualification score and 
range relative to other current applications 
and previously funded applications; and 
(vii) describe how the qualification 
score and range methodology and project 
selection framework are consistent with 
maximizing the Bank goals in both urban 
and rural areas. 
(C) The Investment Prospectus and any 
subsequent updates thereto shall be approved 
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101 
by a majority vote of the Board of Directors 
prior to publication. 
(D) The Bank shall update the Investment 
Prospectus on every biennial anniversary of its 
original publication. 
(11) INVESTMENT-GRADE
RATING.—The term 
‘‘investment-grade rating’’ means a rating of BBB 
minus, Baa3, or higher assigned to an infrastructure 
project by a ratings agency. 
(12) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ has the same meaning as in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a). 
(13) 
PUBLIC-PRIVATE
PARTNERSHIP.—The 
term ‘‘public-private partnership’’ means any eligible 
entity— 
(A)(i) which is undertaking the develop-
ment of all or part of an infrastructure project 
that will have a public benefit, pursuant to re-
quirements established in one or more contracts 
between the entity and a State or an instru-
mentality of a State; or 
(ii) the activities of which, with respect to 
such an infrastructure project, are subject to 
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102 
regulation by a State or any instrumentality of 
a State; 
(B) which owns, leases, or operates or will 
own, lease, or operate, the project in whole or 
in part; and 
(C) the participants in which include not 
fewer than 1 nongovernmental entity with sig-
nificant investment and some control over the 
project or project vehicle. 
(14) RURAL INFRASTRUCTURE PROJECT.—The 
term ‘‘rural infrastructure project’’ means an infra-
structure project in a rural area, as that term is de-
fined in section 343(a)(13)(A) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 
1991(a)(13)(A)). 
(15) SECRETARY.—Unless the context other-
wise requires, the term ‘‘Secretary’’ means the Sec-
retary of the Treasury or the designee thereof. 
(16) SENIOR MANAGEMENT.—The term ‘‘senior 
management’’ means the chief financial officer, chief 
risk officer, chief compliance officer, general counsel, 
chief lending officer, and chief operations officer of 
AIFA established under section 249, and such other 
officers as the Board of Directors may, by majority 
vote, add to senior management. 
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103 
(17) STATE.—The term ‘‘State’’ includes the 
District of Columbia, Puerto Rico, Guam, American 
Samoa, the Virgin Islands, the Commonwealth of 
Northern Mariana Islands, and any other territory 
of the United States. 
PART I—AMERICAN INFRASTRUCTURE 
FINANCING AUTHORITY 
SEC. 245. ESTABLISHMENT AND GENERAL AUTHORITY OF 
AIFA. 
(a) ESTABLISHMENT OF AIFA.—The American In-
frastructure Financing Authority is established as a whol-
ly owned Government corporation. 
(b) GENERAL AUTHORITY OF AIFA.—AIFA shall 
provide direct loans and loan guarantees to facilitate infra-
structure projects that are both economically viable and 
of regional or national significance, and shall have such 
other authority, as provided in this Act. 
(c) INCORPORATION.— 
(1) IN GENERAL.—The Board of Directors first 
appointed shall be deemed the incorporator of AIFA, 
and the incorporation shall be held to have been ef-
fected from the date of the first meeting of the 
Board of Directors. 
(2) CORPORATE OFFICE.—AIFA shall— 
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104 
(A) maintain an office in Washington, DC; 
and 
(B) for purposes of venue in civil actions, 
be considered to be a resident of Washington, 
DC. 
(d) RESPONSIBILITY OF THE SECRETARY.—The Sec-
retary shall take such action as may be necessary to assist 
in implementing AIFA, and in carrying out the purpose 
of this Act. 
(e) RULE OF CONSTRUCTION.—Chapter 91 of title 
31, United States Code, does not apply to AIFA, unless 
otherwise specifically provided in this Act. 
SEC. 246. VOTING MEMBERS OF THE BOARD OF DIREC-
TORS. 
(a) VOTING MEMBERSHIP OF THE BOARD OF DIREC-
TORS.— 
(1) IN GENERAL.—AIFA shall have a Board of 
Directors consisting of 7 voting members appointed 
by the President, by and with the advice and consent 
of the Senate, not more than 4 of whom shall be 
from the same political party. 
(2) CHAIRPERSON.—One of the voting members 
of the Board of Directors shall be designated by the 
President to serve as Chairperson thereof. 
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105 
(3) CONGRESSIONAL RECOMMENDATIONS.—Not 
later than 30 days after the date of enactment of 
this Act, the majority leader of the Senate, the mi-
nority leader of the Senate, the Speaker of the 
House of Representatives, and the minority leader of 
the House of Representatives shall each submit a 
recommendation to the President for appointment of 
a member of the Board of Directors, after consulta-
tion with the appropriate committees of Congress. 
(b) VOTING RIGHTS.—Each voting member of the 
Board of Directors shall have an equal vote in all decisions 
of the Board of Directors. 
(c) QUALIFICATIONS OF VOTING MEMBERS.—Each 
voting member of the Board of Directors shall— 
(1) be a citizen of the United States; and 
(2) have significant demonstrated expertise in— 
(A) the management and administration of 
a financial institution relevant to the operation 
of AIFA; or a public financial agency or author-
ity; 
(B) the financing, development, or oper-
ation of infrastructure projects; or 
(C) analyzing the economic benefits of in-
frastructure investment. 
(d) TERMS.— 
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106 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this Act, each voting member of the Board 
of Directors shall be appointed for a term of 4 years. 
(2) INITIAL STAGGERED TERMS.—Of the voting 
members first appointed to the Board of Directors— 
(A) the initial Chairperson and 3 of the 
other voting members shall each be appointed 
for a term of 4 years; and 
(B) the remaining 3 voting members shall 
each be appointed for a term of 2 years. 
(3) DATE OF INITIAL NOMINATIONS.—The ini-
tial nominations for the appointment of all voting 
members of the Board of Directors shall be made 
not later than 60 days after the date of enactment 
of this Act. 
(4) BEGINNING OF TERM.—The term of each of 
the initial voting members appointed under this sec-
tion shall commence immediately upon the date of 
appointment, except that, for purposes of calculating 
the term limits specified in this subsection, the ini-
tial terms shall each be construed as beginning on 
January 22 of the year following the date of the ini-
tial appointment. 
(5) VACANCIES.—A vacancy in the position of 
a voting member of the Board of Directors shall be 
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107 
filled by the President, and a member appointed to 
fill a vacancy on the Board of Directors occurring 
before the expiration of the term for which the pred-
ecessor was appointed shall be appointed only for 
the remainder of that term. 
(e) MEETINGS.— 
(1) OPEN TO THE PUBLIC; NOTICE.—Except as 
provided in paragraph (3), all meetings of the Board 
of Directors shall be— 
(A) open to the public; and 
(B) preceded by reasonable public notice. 
(2) FREQUENCY.—The Board of Directors shall 
meet not later than 60 days after the date on which 
all members of the Board of Directors are first ap-
pointed, at least quarterly thereafter, and otherwise 
at the call of either the Chairperson or 5 voting 
members of the Board of Directors. 
(3) EXCEPTION FOR CLOSED MEETINGS.—The 
voting members of the Board of Directors may, by 
majority vote, close a meeting to the public if, dur-
ing the meeting to be closed, there is likely to be dis-
closed proprietary or sensitive information regarding 
an infrastructure project under consideration for as-
sistance under this Act. The Board of Directors 
shall prepare minutes of any meeting that is closed 
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108 
to the public, and shall make such minutes available 
as soon as practicable, not later than 1 year after 
the date of the closed meeting, with any necessary 
redactions to protect any proprietary or sensitive in-
formation. 
(4) QUORUM.—For purposes of meetings of the 
Board of Directors, 5 voting members of the Board 
of Directors shall constitute a quorum. 
(f) COMPENSATION
OF
MEMBERS.—Each voting 
member of the Board of Directors shall be compensated 
at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level III of the Executive 
Schedule under section 5314 of title 5, United States 
Code, for each day (including travel time) during which 
the member is engaged in the performance of the duties 
of the Board of Directors. 
(g) CONFLICTS OF INTEREST.—A voting member of 
the Board of Directors may not participate in any review 
or decision affecting an infrastructure project under con-
sideration for assistance under this Act, if the member has 
or is affiliated with an entity who has a financial interest 
in such project. 
SEC. 247. CHIEF EXECUTIVE OFFICER OF AIFA. 
(a) IN GENERAL.—The chief executive officer of 
AIFA shall be a nonvoting member of the Board of Direc-
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109 
tors, who shall be responsible for all activities of AIFA, 
and shall support the Board of Directors as set forth in 
this Act and as the Board of Directors deems necessary 
or appropriate. 
(b) APPOINTMENT AND TENURE OF THE CHIEF EX-
ECUTIVE OFFICER.— 
(1) IN GENERAL.—The President shall appoint 
the chief executive officer, by and with the advice 
and consent of the Senate. 
(2) TERM.—The chief executive officer shall be 
appointed for a term of 6 years. 
(3) VACANCIES.—Any vacancy in the office of 
the chief executive officer shall be filled by the Presi-
dent, and the person appointed to fill a vacancy in 
that position occurring before the expiration of the 
term for which the predecessor was appointed shall 
be appointed only for the remainder of that term. 
(c) QUALIFICATIONS.—The chief executive officer— 
(1) shall have significant expertise in manage-
ment and administration of a financial institution, 
or significant expertise in the financing and develop-
ment of infrastructure projects, or significant exper-
tise in analyzing the economic benefits of infrastruc-
ture investment; and 
(2) may not— 
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110 
(A) hold any other public office; 
(B) have any financial interest in an infra-
structure project then being considered by the 
Board of Directors, unless that interest is 
placed in a blind trust; or 
(C) have any financial interest in an in-
vestment institution or its affiliates or any 
other entity seeking or likely to seek financial 
assistance for any infrastructure project from 
AIFA, unless any such interest is placed in a 
blind trust for the tenure of the service of the 
chief executive officer plus 2 additional years. 
(d) RESPONSIBILITIES.—The chief executive officer 
shall have such executive functions, powers, and duties as 
may be prescribed by this Act, the bylaws of AIFA, or 
the Board of Directors, including— 
(1) responsibility for the development and im-
plementation of the strategy of AIFA, including— 
(A) the development and submission to the 
Board of Directors of the investment pro-
spectus, the annual business plans and budget; 
(B) the development and submission to the 
Board of Directors of a long-term strategic 
plan; and 
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(C) the development, revision, and submis-
sion to the Board of Directors of internal poli-
cies; and 
(2) responsibility for the management and over-
sight of the daily activities, decisions, operations, 
and personnel of AIFA, including— 
(A) the appointment of senior manage-
ment, subject to approval by the voting mem-
bers of the Board of Directors, and the hiring 
and termination of all other AIFA personnel; 
(B) requesting the detail, on a reimburs-
able basis, of personnel from any Federal agen-
cy having specific expertise not available from 
within AIFA, following which request the head 
of the Federal agency may detail, on a reim-
bursable basis, any personnel of such agency 
reasonably requested by the chief executive offi-
cer; 
(C) assessing and recommending in the 
first instance, for ultimate approval or dis-
approval by the Board of Directors, compensa-
tion and adjustments to compensation of senior 
management and other personnel of AIFA as 
may be necessary for carrying out the functions 
of AIFA; 
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(D) ensuring, in conjunction with the gen-
eral counsel of AIFA, that all activities of 
AIFA are carried out in compliance with appli-
cable law; 
(E) overseeing the involvement of AIFA in 
all projects, including— 
(i) developing eligible projects for 
AIFA financial assistance; 
(ii) determining the terms and condi-
tions of all financial assistance packages; 
(iii) 
monitoring 
all 
infrastructure 
projects assisted by AIFA, including re-
sponsibility for ensuring that the proceeds 
of any loan made, guaranteed, or partici-
pated in are used only for the purposes for 
which the loan or guarantee was made; 
(iv) preparing and submitting for ap-
proval by the Board of Directors the docu-
ments required under paragraph (1); and 
(v) ensuring the implementation of de-
cisions of the Board of Directors; and 
(F) such other activities as may be nec-
essary or appropriate in carrying out this Act. 
(e) COMPENSATION.— 
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(1) IN
GENERAL.—Any compensation assess-
ment or recommendation by the chief executive offi-
cer under this section shall be without regard to the 
provisions of chapter 51 or subchapter III of chapter 
53 of title 5, United States Code. 
(2) CONSIDERATIONS.—The compensation as-
sessment or recommendation required under this 
subsection shall take into account merit principles, 
where applicable, as well as the education, experi-
ence, level of responsibility, geographic differences, 
and retention and recruitment needs in determining 
compensation of personnel. 
SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIREC-
TORS. 
The Board of Directors shall— 
(1) as soon as is practicable after the date on 
which all members are appointed, approve or dis-
approve senior management appointed by the chief 
executive officer; 
(2) not later than 180 days after the date on 
which all members are appointed— 
(A) develop and approve the bylaws of 
AIFA, including bylaws for the regulation of 
the affairs and conduct of the business of 
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AIFA, consistent with the purpose, goals, objec-
tives, and policies set forth in this Act; 
(B) establish subcommittees, including an 
audit committee that is composed solely of 
members of the Board of Directors who are 
independent of the senior management of 
AIFA; 
(C) develop and approve, in consultation 
with senior management, a conflict-of-interest 
policy for the Board of Directors and for senior 
management; 
(D) approve or disapprove internal policies 
that the chief executive officer shall submit to 
the Board of Directors, including— 
(i) policies regarding the loan applica-
tion and approval process, including— 
(I) disclosure and application 
procedures to be followed by entities 
in the course of nominating infra-
structure projects for assistance under 
this Act; 
(II) guidelines for the selection 
and approval of projects; 
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(III) specific criteria for deter-
mining eligibility for project selection, 
consistent with title II; and 
(IV) standardized terms and con-
ditions, fee schedules, or legal require-
ments of a contract or program, so as 
to carry out this Act; and 
(ii) operational guidelines; and 
(E) approve or disapprove a multi-year or 
1-year business plan and budget for AIFA; 
(3) ensure that AIFA is at all times operated 
in a manner that is consistent with this Act, by— 
(A) monitoring and assessing the effective-
ness of AIFA in achieving its strategic goals; 
(B) periodically reviewing internal policies; 
(C) reviewing and approving annual busi-
ness plans, annual budgets, and long-term 
strategies submitted by the chief executive offi-
cer; 
(D) reviewing and approving annual re-
ports submitted by the chief executive officer; 
(E) engaging one or more external audi-
tors, as set forth in this Act; and 
(F) reviewing and approving all changes to 
the organization of senior management; 
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(4) appoint and fix, by a vote of 5 of the 7 vot-
ing members of the Board of Directors, and without 
regard to the provisions of chapter 51 or subchapter 
III of chapter 53 of title 5, United States Code, the 
compensation and adjustments to compensation of 
all AIFA personnel, provided that in appointing and 
fixing any compensation or adjustments to com-
pensation under this paragraph, the Board shall— 
(A) consult with, and seek to maintain 
comparability with, other comparable Federal 
personnel; 
(B) consult with the Office of Personnel 
Management; and 
(C) carry out such duties consistent with 
merit principles, where applicable, as well as the 
education, experience, level of responsibility, ge-
ographic differences, and retention and recruit-
ment needs in determining compensation of per-
sonnel; 
(5) establish such other criteria, requirements, 
or procedures as the Board of Directors may con-
sider to be appropriate in carrying out this Act; 
(6) serve as the primary liaison for AIFA in 
interactions with Congress, the Executive Branch, 
and State and local governments, and to represent 
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117 
the interests of AIFA in such interactions and oth-
ers; 
(7) approve by a vote of 5 of the 7 voting mem-
bers of the Board of Directors any changes to the 
bylaws or internal policies of AIFA; 
(8) have the authority and responsibility— 
(A) to oversee entering into and carry out 
such contracts, leases, cooperative agreements, 
or other transactions as are necessary to carry 
out this Act with— 
(i) any Federal department or agency; 
(ii) any State, territory, or possession 
(or any political subdivision thereof, includ-
ing State infrastructure banks) of the 
United States; and 
(iii) any individual, public-private 
partnership, firm, association, or corpora-
tion; 
(B) to approve of the acquisition, lease, 
pledge, exchange, and disposal of real and per-
sonal property by AIFA and otherwise approve 
the exercise by AIFA of all of the usual inci-
dents of ownership of property, to the extent 
that the exercise of such powers is appropriate 
to and consistent with the purposes of AIFA; 
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(C) to determine the character of, and the 
necessity for, the obligations and expenditures 
of AIFA, and the manner in which the obliga-
tions and expenditures will be incurred, allowed, 
and paid, subject to this Act and other Federal 
law specifically applicable to wholly owned Fed-
eral corporations; 
(D) to execute, in accordance with applica-
ble bylaws and regulations, appropriate instru-
ments; 
(E) to approve other forms of credit en-
hancement that AIFA may provide to eligible 
projects, as long as the forms of credit enhance-
ments are consistent with the purposes of this 
Act and terms set forth in title II; 
(F) to exercise all other lawful powers 
which are necessary or appropriate to carry out, 
and are consistent with, the purposes of AIFA; 
(G) to sue or be sued in the corporate ca-
pacity of AIFA in any court of competent juris-
diction; 
(H) to indemnify the members of the 
Board of Directors and officers of AIFA for 
any liabilities arising out of the actions of the 
members and officers in such capacity, in ac-
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119 
cordance with, and subject to the limitations 
contained in this Act; 
(I) to review all financial assistance pack-
ages to all eligible infrastructure projects, as 
submitted by the chief executive officer and to 
approve, postpone, or deny the same by major-
ity vote; 
(J) to review all restructuring proposals 
submitted by the chief executive officer, includ-
ing assignation, pledging, or disposal of the in-
terest of AIFA in a project, including payment 
or income from any interest owned or held by 
AIFA, and to approve, postpone, or deny the 
same by majority vote; and 
(K) to enter into binding commitments, as 
specified in approved financial assistance pack-
ages; 
(9) delegate to the chief executive officer those 
duties that the Board of Directors deems appro-
priate, to better carry out the powers and purposes 
of the Board of Directors under this section; and 
(10) to approve a maximum aggregate amount 
of outstanding obligations of AIFA at any given 
time, taking into consideration funding, and the size 
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of AIFA’s addressable market for infrastructure 
projects. 
SEC. 249. SENIOR MANAGEMENT. 
(a) IN GENERAL.—Senior management shall support 
the chief executive officer in the discharge of the respon-
sibilities of the chief executive officer. 
(b) APPOINTMENT OF SENIOR MANAGEMENT.—The 
chief executive officer shall appoint such senior managers 
as are necessary to carry out the purpose of AIFA, as 
approved by a majority vote of the voting members of the 
Board of Directors. 
(c) TERM.—Each member of senior management 
shall serve at the pleasure of the chief executive officer 
and the Board of Directors. 
(d) REMOVAL OF SENIOR MANAGEMENT.—Any mem-
ber of senior management may be removed, either by a 
majority of the voting members of the Board of Directors 
upon request by the chief executive officer, or otherwise 
by vote of not fewer than 5 voting members of the Board 
of Directors. 
(e) SENIOR MANAGEMENT.— 
(1) IN
GENERAL.—Each member of senior 
management shall report directly to the chief execu-
tive officer, other than the Chief Risk Officer, who 
shall report directly to the Board of Directors. 
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121 
(2) DUTIES AND RESPONSIBILITIES.— 
(A) CHIEF
FINANCIAL
OFFICER.—The 
Chief Financial Officer shall be responsible for 
all financial functions of AIFA, provided that, 
at the discretion of the Board of Directors, spe-
cific functions of the Chief Financial Officer 
may be delegated externally. 
(B) CHIEF
RISK
OFFICER.—The Chief 
Risk Officer shall be responsible for all func-
tions of AIFA relating to— 
(i) the creation of financial, credit, 
and operational risk management guide-
lines and policies; 
(ii) credit analysis for infrastructure 
projects; 
(iii) the creation of conforming stand-
ards for infrastructure finance agreements; 
(iv) the monitoring of the financial, 
credit, and operational exposure of AIFA; 
and 
(v) risk management and mitigation 
actions, including by reporting such ac-
tions, or recommendations of such actions 
to be taken, directly to the Board of Direc-
tors. 
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122 
(C) CHIEF
COMPLIANCE
OFFICER.—The 
Chief Compliance Officer shall be responsible 
for all functions of AIFA relating to internal 
audits, accounting safeguards, and the enforce-
ment of such safeguards and other applicable 
requirements. 
(D) GENERAL
COUNSEL.—The General 
Counsel shall be responsible for all functions of 
AIFA relating to legal matters and, in consulta-
tion with the chief executive officer, shall be re-
sponsible for ensuring that AIFA complies with 
all applicable law. 
(E) CHIEF
OPERATIONS
OFFICER.—The 
Chief Operations Officer shall be responsible for 
all operational functions of AIFA, including 
those relating to the continuing operations and 
performance of all infrastructure projects in 
which AIFA retains an interest and for all 
AIFA functions related to human resources. 
(F) CHIEF LENDING OFFICER.—The Chief 
Lending Officer shall be responsible for— 
(i) all functions of AIFA relating to 
the development of project pipeline, finan-
cial structuring of projects, selection of in-
frastructure projects to be reviewed by the 
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123 
Board of Directors, preparation of infra-
structure projects to be presented to the 
Board of Directors, and set aside for rural 
infrastructure projects; and 
(ii) the creation and management of— 
(I) a Center for Excellence to 
provide technical assistance to public 
sector borrowers in the development 
and 
financing 
of 
infrastructure 
projects; and 
(II) an Office of Rural Assistance 
to provide technical assistance in the 
development and financing of rural in-
frastructure projects. 
(iii) the establishment of guidelines to 
ensure diversification of lending activities 
by region, infrastructure project type, and 
project size. 
(f) CHANGES TO SENIOR MANAGEMENT.—The Board 
of Directors, in consultation with the chief executive offi-
cer, may alter the structure of the senior management of 
AIFA at any time to better accomplish the goals, objec-
tives, and purposes of AIFA, provided that the functions 
of the Chief Financial Officer set forth in subsection (e) 
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124 
remain separate from the functions of the Chief Risk Offi-
cer set forth in subsection (e). 
(g) CONFLICTS OF INTEREST.—No individual ap-
pointed to senior management may— 
(1) hold any other public office; 
(2) have any financial interest in an infrastruc-
ture project then being considered by the Board of 
Directors, unless that interest is placed in a blind 
trust; or 
(3) have any financial interest in an investment 
institution or its affiliates, AIFA or its affiliates, or 
other entity then seeking or likely to seek financial 
assistance for any infrastructure project from AIFA, 
unless any such interest is placed in a blind trust 
during the term of service of that individual in a 
senior management position, and for a period of 2 
years thereafter. 
SEC. 250. SPECIAL INSPECTOR GENERAL FOR AIFA. 
(a) IN GENERAL.—During the first 5 operating years 
of AIFA, the Office of the Inspector General of the De-
partment of the Treasury shall have responsibility for 
AIFA. 
(b) OFFICE
OF
THE SPECIAL INSPECTOR GEN-
ERAL.—Effective 5 years after the date of enactment of 
the commencement of the operations of AIFA, there is es-
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125 
tablished the Office of the Special Inspector General for 
AIFA. 
(c) APPOINTMENT
OF INSPECTOR GENERAL; RE-
MOVAL.— 
(1) HEAD OF OFFICE.—The head of the Office 
of the Special Inspector General for AIFA shall be 
the Special Inspector General for AIFA (in this Act 
referred to as the ‘‘Special Inspector General’’), who 
shall be appointed by the President, by and with the 
advice and consent of the Senate. 
(2) BASIS
OF
APPOINTMENT.—The appoint-
ment of the Special Inspector General shall be made 
on the basis of integrity and demonstrated ability in 
accounting, auditing, financial analysis, law, man-
agement analysis, public administration, or inves-
tigations. 
(3) TIMING OF NOMINATION.—The nomination 
of an individual as Special Inspector General shall 
be made as soon as is practicable after the effective 
date under subsection (b). 
(4) REMOVAL.—The Special Inspector General 
shall be removable from office in accordance with 
the provisions of section 3(b) of the Inspector Gen-
eral Act of 1978 (5 U.S.C. App.). 
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126 
(5) RULE OF CONSTRUCTION.—For purposes of 
section 7324 of title 5, United States Code, the Spe-
cial Inspector General shall not be considered an em-
ployee who determines policies to be pursued by the 
United States in the nationwide administration of 
Federal law. 
(6) RATE OF PAY.—The annual rate of basic 
pay of the Special Inspector General shall be the an-
nual rate of basic pay for an Inspector General 
under section 3(e) of the Inspector General Act of 
1978 (5 U.S.C. App.). 
(d) DUTIES.— 
(1) IN GENERAL.—It shall be the duty of the 
Special Inspector General to conduct, supervise, and 
coordinate audits and investigations of the business 
activities of AIFA. 
(2) OTHER SYSTEMS, PROCEDURES, AND CON-
TROLS.—The Special Inspector General shall estab-
lish, maintain, and oversee such systems, procedures, 
and controls as the Special Inspector General con-
siders appropriate to discharge the duty under para-
graph (1). 
(3) ADDITIONAL DUTIES.—In addition to the 
duties specified in paragraphs (1) and (2), the In-
spector General shall also have the duties and re-
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127 
sponsibilities of inspectors general under the Inspec-
tor General Act of 1978. 
(e) POWERS AND AUTHORITIES.— 
(1) IN GENERAL.—In carrying out the duties 
specified in subsection (c), the Special Inspector 
General shall have the authorities provided in section 
6 of the Inspector General Act of 1978. 
(2) ADDITIONAL AUTHORITY.—The Special In-
spector General shall carry out the duties specified 
in subsection (c)(1) in accordance with section 
4(b)(1) of the Inspector General Act of 1978. 
(f) PERSONNEL, FACILITIES, 
AND
OTHER
RE-
SOURCES.— 
(1) ADDITIONAL OFFICERS.— 
(A) The Special Inspector General may se-
lect, appoint, and employ such officers and em-
ployees as may be necessary for carrying out 
the duties of the Special Inspector General, 
subject to the provisions of title 5, United 
States Code, governing appointments in the 
competitive service, and the provisions of chap-
ter 51 and subchapter III of chapter 53 of such 
title, relating to classification and General 
Schedule pay rates. 
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128 
(B) The Special Inspector General may ex-
ercise the authorities of subsections (b) through 
(i) of section 3161 of title 5, United States 
Code (without regard to subsection (a) of that 
section). 
(2) RETENTION OF SERVICES.—The Special In-
spector General may obtain services as authorized by 
section 3109 of title 5, United States Code, at daily 
rates not to exceed the equivalent rate prescribed for 
grade GS–15 of the General Schedule by section 
5332 of such title. 
(3) ABILITY TO CONTRACT FOR AUDITS, STUD-
IES, AND OTHER SERVICES.—The Special Inspector 
General may enter into contracts and other arrange-
ments for audits, studies, analyses, and other serv-
ices with public agencies and with private persons, 
and make such payments as may be necessary to 
carry out the duties of the Special Inspector Gen-
eral. 
(4) REQUEST FOR INFORMATION.— 
(A) IN
GENERAL.—Upon request of the 
Special Inspector General for information or as-
sistance from any department, agency, or other 
entity of the Federal Government, the head of 
such entity shall, insofar as is practicable and 
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129 
not in contravention of any existing law, furnish 
such information or assistance to the Special 
Inspector General, or an authorized designee. 
(B) REFUSAL TO COMPLY.—Whenever in-
formation or assistance requested by the Spe-
cial Inspector General is, in the judgment of the 
Special Inspector General, unreasonably refused 
or not provided, the Special Inspector General 
shall report the circumstances to the Secretary 
of the Treasury, without delay. 
(g) REPORTS.— 
(1) ANNUAL REPORT.—Not later than 1 year 
after the confirmation of the Special Inspector Gen-
eral, and every calendar year thereafter, the Special 
Inspector General shall submit to the President a re-
port summarizing the activities of the Special In-
spector General during the previous 1-year period 
ending on the date of such report. 
(2) PUBLIC
DISCLOSURES.—Nothing in this 
subsection shall be construed to authorize the public 
disclosure of information that is— 
(A) specifically prohibited from disclosure 
by any other provision of law; 
(B) specifically required by Executive order 
to be protected from disclosure in the interest 
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of national defense or national security or in 
the conduct of foreign affairs; or 
(C) a part of an ongoing criminal inves-
tigation. 
SEC. 251. OTHER PERSONNEL. 
Except as otherwise provided in the bylaws of AIFA, 
the chief executive officer, in consultation with the Board 
of Directors, shall appoint, remove, and define the duties 
of such qualified personnel as are necessary to carry out 
the powers, duties, and purpose of AIFA, other than sen-
ior management, who shall be appointed in accordance 
with section 249. 
SEC. 252. COMPLIANCE. 
The provision of assistance by the Board of Directors 
pursuant to this Act shall not be construed as superseding 
any provision of State law or regulation otherwise applica-
ble to an infrastructure project. 
PART II—TERMS AND LIMITATIONS ON DIRECT 
LOANS AND LOAN GUARANTEES 
SEC. 253. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 
AIFA AND TERMS AND LIMITATIONS OF 
LOANS. 
(a) IN GENERAL.—Any project whose use or purpose 
is private and for which no public benefit is created shall 
not be eligible for financial assistance from AIFA under 
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this Act. Financial assistance under this Act shall only 
be made available if the applicant for such assistance has 
demonstrated to the satisfaction of the Board of Directors 
that the infrastructure project for which such assistance 
is being sought— 
(1) is not for the refinancing of an existing in-
frastructure project; and 
(2) meets— 
(A) any pertinent requirements set forth in 
this Act; 
(B) any criteria established by the Board 
of Directors or chief executive officer in accord-
ance with this Act; and 
(C) the definition of a transportation infra-
structure project, water infrastructure project, 
or energy infrastructure project. 
(b) CONSIDERATIONS.—The criteria established by 
the Board of Directors pursuant to this Act shall provide 
adequate consideration of— 
(1) the economic, financial, technical, environ-
mental, and public benefits and costs of each infra-
structure project under consideration for financial 
assistance under this Act, prioritizing infrastructure 
projects that— 
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(A) contribute to regional or national eco-
nomic growth; 
(B) offer value for money to taxpayers; 
(C) demonstrate a clear and significant 
public benefit; 
(D) lead to job creation; and 
(E) mitigate environmental concerns; 
(2) the means by which development of the in-
frastructure project under consideration is being fi-
nanced, including— 
(A) the terms, conditions, and structure of 
the proposed financing; 
(B) the credit worthiness and standing of 
the project sponsors, providers of equity, and 
cofinanciers; 
(C) the financial assumptions and projec-
tions on which the infrastructure project is 
based; and 
(D) whether there is sufficient State or 
municipal political support for the successful 
completion of the infrastructure project; 
(3) the likelihood that the provision of assist-
ance by AIFA will cause such development to pro-
ceed more promptly and with lower costs than would 
be the case without such assistance; 
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(4) the extent to which the provision of assist-
ance by AIFA maximizes the level of private invest-
ment in the infrastructure project or supports a 
public-private partnership, while providing a signifi-
cant public benefit; 
(5) the extent to which the provision of assist-
ance by AIFA can mobilize the participation of other 
financing partners in the infrastructure project; 
(6) the technical and operational viability of the 
infrastructure project; 
(7) the proportion of financial assistance from 
AIFA; 
(8) the geographic location of the project in an 
effort to have geographic diversity of projects funded 
by AIFA; 
(9) the size of the project and its impact on the 
resources of AIFA; 
(10) the infrastructure sector of the project, in 
an effort to have projects from more than one sector 
funded by AIFA; and 
(11) Encourages use of innovative procurement, 
asset management, or financing to minimize the all- 
in-life-cycle cost, and improve the cost-effectiveness 
of a project. 
(c) APPLICATION.— 
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(1) IN GENERAL.—Any eligible entity seeking 
assistance from AIFA under this Act for an eligible 
infrastructure project shall submit an application to 
AIFA at such time, in such manner, and containing 
such information as the Board of Directors or the 
chief executive officer may require. 
(2) REVIEW OF APPLICATIONS.—AIFA shall re-
view applications for assistance under this Act on an 
ongoing basis. The chief executive officer, working 
with the senior management, shall prepare eligible 
infrastructure projects for review and approval by 
the Board of Directors. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument shall be repayable, in whole or 
in part, from tolls, user fees, or other dedicated rev-
enue sources that also secure the infrastructure 
project obligations. 
(d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), to be eligible for assistance under this 
Act, an infrastructure project shall have project 
costs that are reasonably anticipated to equal or ex-
ceed $100,000,000. 
(2) RURAL
INFRASTRUCTURE
PROJECTS.—To 
be eligible for assistance under this Act a rural in-
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frastructure project shall have project costs that are 
reasonably 
anticipated 
to 
equal 
or 
exceed 
$25,000,000. 
(e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 
(1) IN GENERAL.—The amount of a direct loan 
or loan guarantee under this Act shall not exceed 
the lesser of 50 percent of the reasonably anticipated 
eligible infrastructure project costs or, if the direct 
loan or loan guarantee does not receive an invest-
ment grade rating, the amount of the senior project 
obligations. 
(2) MAXIMUM ANNUAL LOAN AND LOAN GUAR-
ANTEE VOLUME.—The aggregate amount of direct 
loans and loan guarantees made by AIFA in any 
single fiscal year may not exceed— 
(A) during the first 2 fiscal years of the 
operations of AIFA, $10,000,000,000; 
(B) during fiscal years 3 through 9 of the 
operations of AIFA, $20,000,000,000; or 
(C) during any fiscal year thereafter, 
$50,000,000,000. 
(f) STATE AND LOCAL PERMITS REQUIRED.—The 
provision of assistance by the Board of Directors pursuant 
to this Act shall not be deemed to relieve any recipient 
of such assistance, or the related infrastructure project, 
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of any obligation to obtain required State and local per-
mits and approvals. 
SEC. 254. LOAN TERMS AND REPAYMENT. 
(a) IN GENERAL.—A direct loan or loan guarantee 
under this Act with respect to an eligible infrastructure 
project shall be on such terms, subject to such conditions, 
and contain such covenants, representations, warranties, 
and requirements (including requirements for audits) as 
the chief executive officer determines appropriate. 
(b) TERMS.—A direct loan or loan guarantee under 
this Act— 
(1) shall— 
(A) be payable, in whole or in part, from 
tolls, user fees, or other dedicated revenue 
sources that also secure the senior project obli-
gations (such as availability payments and dedi-
cated State or local revenues); and 
(B) include a rate covenant, coverage re-
quirement, or similar security feature sup-
porting the project obligations; and 
(2) may have a lien on revenues described in 
paragraph (1), subject to any lien securing project 
obligations. 
(c) BASE INTEREST RATE.—The base interest rate 
on a direct loan under this Act shall be not less than the 
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yield on United States Treasury obligations of a similar 
maturity to the maturity of the direct loan. 
(d) RISK ASSESSMENT.—Before entering into an 
agreement for assistance under this Act, the chief execu-
tive officer, in consultation with the Director of the Office 
of Management and Budget and considering rating agency 
preliminary or final rating opinion letters of the project 
under this section, shall estimate an appropriate Federal 
credit subsidy amount for each direct loan and loan guar-
antee, taking into account such letter, as well as any com-
parable market rates available for such a loan or loan 
guarantee, should any exist. The final credit subsidy cost 
for each loan and loan guarantee shall be determined con-
sistent with the Federal Credit Reform Act, 2 U.S.C. 
661a, et seq. 
(e) CREDIT FEE.—With respect to each agreement 
for assistance under this Act, the chief executive officer 
may charge a credit fee to the recipient of such assistance 
to pay for, over time, all or a portion of the Federal credit 
subsidy determined under subsection (d), with the remain-
der paid by the account established for AIFA; provided, 
that the source of fees paid under this section shall not 
be a loan or debt obligation guaranteed by the Federal 
Government. In the case of a direct loan, such credit fee 
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shall be in addition to the base interest rate established 
under subsection (c). 
(f) MATURITY DATE.—The final maturity date of a 
direct loan or loan guaranteed by AIFA under this Act 
shall be not later than 35 years after the date of substan-
tial completion of the infrastructure project, as determined 
by the chief executive officer. 
(g) RATING OPINION LETTER.— 
(1) IN GENERAL.—The chief executive officer 
shall require each applicant for assistance under this 
Act to provide a rating opinion letter from at least 
1 ratings agency, indicating that the senior obliga-
tions of the infrastructure project, which may be the 
Federal credit instrument, have the potential to 
achieve an investment-grade rating. 
(2) RURAL INFRASTRUCTURE PROJECTS.—With 
respect to a rural infrastructure project, a rating 
agency opinion letter described in paragraph (1) 
shall not be required, except that the loan or loan 
guarantee shall receive an internal rating score, 
using methods similar to the ratings agencies gen-
erated by AIFA, measuring the proposed direct loan 
or loan guarantee against comparable direct loans or 
loan guarantees of similar credit quality in a similar 
sector. 
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(h) INVESTMENT-GRADE RATING REQUIREMENT.— 
(1) LOANS AND LOAN GUARANTEES.—The exe-
cution of a direct loan or loan guarantee under this 
Act shall be contingent on the senior obligations of 
the infrastructure project receiving an investment- 
grade rating. 
(2) RATING OF AIFA OVERALL PORTFOLIO.— 
The average rating of the overall portfolio of AIFA 
shall be not less than investment grade after 5 years 
of operation. 
(i) TERMS AND REPAYMENT OF DIRECT LOANS.— 
(1) SCHEDULE.—The chief executive officer 
shall establish a repayment schedule for each direct 
loan under this Act, based on the projected cash 
flow from infrastructure project revenues and other 
repayment sources. 
(2) COMMENCEMENT.—Scheduled loan repay-
ments of principal or interest on a direct loan under 
this Act shall commence not later than 5 years after 
the date of substantial completion of the infrastruc-
ture project, as determined by the chief executive of-
ficer of AIFA. 
(3) 
DEFERRED
PAYMENTS
OF
DIRECT 
LOANS.— 
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(A) AUTHORIZATION.—If, at any time 
after the date of substantial completion of an 
infrastructure project assisted under this Act, 
the infrastructure project is unable to generate 
sufficient revenues to pay the scheduled loan re-
payments of principal and interest on the direct 
loan under this Act, the chief executive officer 
may allow the obligor to add unpaid principal 
and interest to the outstanding balance of the 
direct loan, if the result would benefit the tax-
payer. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest, in ac-
cordance with the terms of the obligation, 
until fully repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the loan. 
(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the infrastructure project meet-
ing criteria established by the Board of Di-
rectors. 
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(ii) REPAYMENT
STANDARDS.—The 
criteria established under clause (i) shall 
include standards for reasonable assurance 
of repayment. 
(4) PREPAYMENT OF DIRECT LOANS.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the in-
frastructure project obligations and direct loan 
and all deposit requirements under the terms of 
any trust agreement, bond resolution, or similar 
agreement securing project obligations under 
this Act may be applied annually to prepay the 
direct loan, without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A direct loan under this Act may be 
prepaid at any time, without penalty, from the 
proceeds of refinancing from non-Federal fund-
ing sources. 
(5) SALE OF DIRECT LOANS.— 
(A) IN
GENERAL.—As soon as is prac-
ticable after substantial completion of an infra-
structure project assisted under this Act, and 
after notifying the obligor, the chief executive 
officer may sell to another entity, or reoffer into 
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the capital markets, a direct loan for the infra-
structure project, if the chief executive officer 
determines that the sale or reoffering can be 
made on favorable terms for the taxpayer. 
(B) CONSENT OF OBLIGOR.—In making a 
sale or reoffering under subparagraph (A), the 
chief executive officer may not change the origi-
nal terms and conditions of the direct loan, 
without the written consent of the obligor. 
(j) LOAN GUARANTEES.— 
(1) TERMS.—The terms of a loan guaranteed 
by AIFA under this Act shall be consistent with the 
terms set forth in this section for a direct loan, ex-
cept that the rate on the guaranteed loan and any 
payment, pre-payment, or refinancing features shall 
be negotiated between the obligor and the lender, 
with the consent of the chief executive officer. 
(2) GUARANTEED
LENDER.—A guaranteed 
lender shall be limited to those lenders meeting the 
definition of that term in section 601(a) of title 23, 
United States Code. 
(k) COMPLIANCE WITH FCRA; IN GENERAL.—Di-
rect loans and loan guarantees authorized by this Act shall 
be subject to the provisions of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.), as amended. 
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SEC. 255. COMPLIANCE AND ENFORCEMENT. 
(a) CREDIT
AGREEMENT.—Notwithstanding any 
other provision of law, each eligible entity that receives 
assistance under this Act from AIFA shall enter into a 
credit agreement that requires such entity to comply with 
all applicable policies and procedures of AIFA, in addition 
to all other provisions of the loan agreement. 
(b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 
case in which a recipient of assistance under this Act is 
materially out of compliance with the loan agreement, or 
any applicable policy or procedure of AIFA, the Board of 
Directors may take action to cancel unutilized loan 
amounts, or to accelerate the repayment terms of any out-
standing obligation. 
(c) Nothing in this Act is intended to affect existing 
provisions of law applicable to the planning, development, 
construction, or operation of projects funded under the 
Act. 
SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CON-
GRESS. 
(a) ACCOUNTING.—The books of account of AIFA 
shall be maintained in accordance with generally accepted 
accounting principles, and shall be subject to an annual 
audit by independent public accountants of nationally rec-
ognized standing appointed by the Board of Directors. 
(b) REPORTS.— 
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(1) BOARD OF DIRECTORS.—Not later than 90 
days after the last day of each fiscal year, the Board 
of Directors shall submit to the President and Con-
gress a complete and detailed report with respect to 
the preceding fiscal year, setting forth— 
(A) a summary of the operations of AIFA, 
for such fiscal year; 
(B) a schedule of the obligations of AIFA 
and capital securities outstanding at the end of 
such fiscal year, with a statement of the 
amounts issued and redeemed or paid during 
such fiscal year; 
(C) the status of infrastructure projects re-
ceiving funding or other assistance pursuant to 
this Act during such fiscal year, including all 
nonperforming loans, and including disclosure 
of all entities with a development, ownership, or 
operational interest in such infrastructure 
projects; 
(D) a description of the successes and 
challenges encountered in lending to rural com-
munities, including the role of the Center for 
Excellence and the Office of Rural Assistance 
established under this Act; and 
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(E) an assessment of the risks of the port-
folio of AIFA, prepared by an independent 
source. 
(2) GAO.—Not later than 5 years after the 
date of enactment of this Act, the Comptroller Gen-
eral of the United States shall conduct an evaluation 
of, and shall submit to Congress a report on, activi-
ties of AIFA for the fiscal years covered by the re-
port that includes an assessment of the impact and 
benefits of each funded infrastructure project, in-
cluding a review of how effectively each such infra-
structure project accomplished the goals prioritized 
by the infrastructure project criteria of AIFA. 
(c) BOOKS AND RECORDS.— 
(1) IN GENERAL.—AIFA shall maintain ade-
quate books and records to support the financial 
transactions of AIFA, with a description of financial 
transactions and infrastructure projects receiving 
funding, and the amount of funding for each such 
project maintained on a publically accessible data-
base. 
(2) AUDITS BY THE SECRETARY AND GAO.— 
The books and records of AIFA shall at all times be 
open to inspection by the Secretary of the Treasury, 
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the Special Inspector General, and the Comptroller 
General of the United States. 
PART III—FUNDING OF AIFA 
SEC. 257. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—In addition to fees that may be 
collected under section 254(e), the chief executive officer 
shall establish and collect fees from eligible funding recipi-
ents with respect to loans and loan guarantees under this 
Act that— 
(1) are sufficient to cover all or a portion of the 
administrative costs to the Federal Government for 
the operations of AIFA, including the costs of expert 
firms, including counsel in the field of municipal and 
project finance, and financial advisors to assist with 
underwriting, credit analysis, or other independent 
reviews, as appropriate; 
(2) may be in the form of an application or 
transaction fee, or other form established by the 
CEO; and 
(3) may be based on the risk premium associ-
ated with the loan or loan guarantee, taking into 
consideration— 
(A) the price of United States Treasury 
obligations of a similar maturity; 
(B) prevailing market conditions; 
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(C) the ability of the infrastructure project 
to support the loan or loan guarantee; and 
(D) the total amount of the loan or loan 
guarantee; 
(b) AVAILABILITY OF AMOUNTS.—Amounts collected 
under subsections (a)(1), (a)(2)(a)(3) shall be available 
without further action; provided further, that the source 
of fees paid under this section shall not be a loan or debt 
obligation guaranteed by the Federal Government. 
SEC. 258. EFFICIENCY OF AIFA. 
The chief executive officer shall, to the extent pos-
sible, take actions consistent with this Act to minimize the 
risk and cost to the taxpayer of AIFA activities. Fees and 
premiums for loan guarantee or insurance coverage will 
be set at levels that minimize administrative and Federal 
credit subsidy costs to the Government, as defined in Sec-
tion 502 of the Federal Credit Reform Act of 1990, as 
amended, of such coverage, while supporting achievement 
of the program’s objectives, consistent with policies as set 
forth in the Business Plan. 
SEC. 259. FUNDING. 
There is hereby appropriated to AIFA to carry out 
this Act, for the cost of direct loans and loan guarantees 
subject to the limitations under section 253, and for ad-
ministrative costs, $10,000,000,000, to remain available 
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until expended; provided, that such costs, including the 
costs of modifying such loans, shall be as defined in sec-
tion 502 of the Federal Credit Reform Act of 1990, as 
amended; provided further, that of this amount, not more 
than $25,000,000 for each of fiscal years 2012 through 
2013, and not more than $50,000,000 for fiscal year 2014 
may be used for administrative costs of AIFA; provided 
further, that not more than 5 percent of such amount shall 
be used to offset subsidy costs associated with rural 
projects. Amounts authorized shall be available without 
further action. 
PART IV—EXTENSION OF EXEMPTION FROM AL-
TERNATIVE MINIMUM TAX TREATMENT FOR 
CERTAIN TAX-EXEMPT BONDS 
SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE 
MINIMUM TAX TREATMENT FOR CERTAIN 
TAX-EXEMPT BONDS. 
(a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2013’’; and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, 2011, AND 2012’’. 
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(b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 
section 56(g)(4)(B) of the Internal Revenue Code of 1986 
is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2013’’; and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, 2011, AND 2012’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2010. 
Subtitle G—Project Rebuild 
SEC. 261. PROJECT REBUILD. 
(a) DIRECT
APPROPRIATIONS.—There is appro-
priated, out of any money in the Treasury not otherwise 
appropriated, $15,000,000,000, to remain available until 
September 30, 2014, for assistance to eligible entities in-
cluding States and units of general local government (as 
such terms are defined in section 102 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302)), 
and qualified nonprofit organizations, businesses or con-
sortia of eligible entities for the redevelopment of aban-
doned and foreclosed-upon properties and for the stabiliza-
tion of affected neighborhoods. 
(b) ALLOCATION OF APPROPRIATED AMOUNTS.— 
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(1) IN
GENERAL.—Of the amounts appro-
priated, two thirds shall be allocated to States and 
units of general local government based on a funding 
formula established by the Secretary of Housing and 
Urban Development (in this subtitle referred to as 
the ‘‘Secretary’’). Of the amounts appropriated, one 
third shall be distributed competitively to eligible en-
tities. 
(2) FORMULA TO BE DEVISED SWIFTLY.—The 
funding formula required under paragraph (1) shall 
be established and the Secretary shall announce for-
mula funding allocations, not later than 30 days 
after the date of enactment of this section. 
(3) FORMULA CRITERIA.—The Secretary may 
establish a minimum grant size, and the funding for-
mula required under paragraph (1) shall ensure that 
any amounts appropriated or otherwise made avail-
able under this section are allocated to States and 
units of general local government with the greatest 
need, as such need is determined in the discretion of 
the Secretary based on— 
(A) the number and percentage of home 
foreclosures in each State or unit of general 
local government; 
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151 
(B) the number and percentage of homes 
in default or delinquency in each State or unit 
of general local government; and 
(C) other factors such as established pro-
gram designs, grantee capacity and perform-
ance, number and percentage of commercial 
foreclosures, overall economic conditions, and 
other market needs data, as determined by the 
Secretary. 
(4) COMPETITION CRITERIA.— 
(A) For the funds distributed competi-
tively, eligible entities shall be States, units of 
general local government, nonprofit entities, 
for-profit entities, and consortia of eligible enti-
ties that demonstrate capacity to use funding 
within the period of this program. 
(B) In selecting grantees, the Secretary 
shall ensure that grantees are in areas with the 
greatest number and percentage of residential 
and commercial foreclosures and other market 
needs data, as determined by the Secretary. Ad-
ditional award criteria shall include dem-
onstrated grantee capacity to execute projects 
involving acquisition and rehabilitation or rede-
velopment of foreclosed residential and commer-
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152 
cial property and neighborhood stabilization, le-
verage, knowledge of market conditions and of 
effective stabilization activities to address iden-
tified conditions, and any additional factors de-
termined by the Secretary. 
(C) The Secretary may establish a min-
imum grant size. 
(D) The Secretary shall publish competi-
tion criteria for any grants awarded under this 
heading not later than 60 days after appropria-
tion of funds, and applications shall be due to 
the Secretary within 120 days. 
(c) USE OF FUNDS.— 
(1) OBLIGATION AND EXPENDITURE.—The Sec-
retary shall obligate all funding within 150 days of 
enactment of this Act. Any eligible entity that re-
ceives amounts pursuant to this section shall expend 
all funds allocated to it within three years of the 
date the funds become available to the grantee for 
obligation. Furthermore, the Secretary shall by No-
tice establish intermediate expenditure benchmarks 
at the one and two year dates from the date the 
funds become available to the grantee for obligation. 
(2) PRIORITIES.— 
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153 
(A) JOB CREATION.—Each grantee or eli-
gible entity shall describe how its proposed use 
of funds will prioritize job creation, and sec-
ondly, will address goals to stabilize neighbor-
hoods, reverse vacancy, or increase or stabilize 
residential and commercial property values. 
(B) TARGETING.—Any State or unit of 
general local government that receives formula 
amounts pursuant to this section shall, in dis-
tributing and targeting such amounts give pri-
ority emphasis and consideration to those met-
ropolitan areas, metropolitan cities, urban 
areas, rural areas, low- and moderate-income 
areas, and other areas with the greatest need, 
including those— 
(i) with the greatest percentage of 
home foreclosures; 
(ii) identified as likely to face a sig-
nificant rise in the rate of residential or 
commercial foreclosures; and 
(iii) with higher than national average 
unemployment rate. 
(C) LEVERAGE.—Each grantee or eligible 
entity shall describe how its proposed use of 
funds will leverage private funds. 
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154 
(3) ELIGIBLE USES.—Amounts made available 
under this section may be used to— 
(A) establish financing mechanisms for the 
purchase and redevelopment of abandoned and 
foreclosed-upon 
properties, 
including 
such 
mechanisms as soft-seconds, loan loss reserves, 
and shared-equity loans for low- and moderate- 
income homebuyers; 
(B) purchase and rehabilitate properties 
that have been abandoned or foreclosed upon, 
in order to sell, rent, or redevelop such prop-
erties; 
(C) establish and operate land banks for 
properties that have been abandoned or fore-
closed upon; 
(D) demolish blighted structures; 
(E) redevelop abandoned, foreclosed, de-
molished, or vacant properties; and 
(F) engage in other activities, as deter-
mined by the Secretary through notice, that are 
consistent with the goals of creating jobs, stabi-
lizing neighborhoods, reversing vacancy reduc-
tion, and increasing or stabilizing residential 
and commercial property values. 
(d) LIMITATIONS.— 
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155 
(1) ON PURCHASES.—Any purchase of a prop-
erty under this section shall be at a price not to ex-
ceed its current market value, taking into account 
its current condition. 
(2) REHABILITATION.—Any rehabilitation of an 
eligible property under this section shall be to the 
extent necessary to comply with applicable laws, and 
other requirements relating to safety, quality, mar-
ketability, and habitability, in order to sell, rent, or 
redevelop such properties or provide a renewable en-
ergy source or sources for such properties. 
(3) SALE OF HOMES.—If an abandoned or fore-
closed-upon home is purchased, redeveloped, or oth-
erwise sold to an individual as a primary residence, 
then such sale shall be in an amount equal to or less 
than the cost to acquire and redevelop or rehabilitate 
such home or property up to a decent, safe, market-
able, and habitable condition. 
(4) ON
DEMOLITION
OF
PUBLIC
HOUSING.— 
Public housing, as defined at section 3(b)(6) of the 
United States Housing Act of 1937, may not be de-
molished with funds under this section. 
(5) ON
DEMOLITION
ACTIVITIES.—No more 
than 10 percent of any grant made under this sec-
tion may be used for demolition activities unless the 
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156 
Secretary determines that such use represents an 
appropriate response to local market conditions. 
(6) ON USE OF FUNDS FOR NON-RESIDENTIAL 
PROPERTY.—No more than 30 percent of any grant 
made under this section may be used for eligible ac-
tivities under subparagraphs (A), (B), and (E) of 
subsection (c)(3) that will not result in residential 
use of the property involved unless the Secretary de-
termines that such use represents an appropriate re-
sponse to local market conditions. 
(e) RULES OF CONSTRUCTION.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, amounts appropriated, reve-
nues generated, or amounts otherwise made avail-
able to eligible entities under this section shall be 
treated as though such funds were community devel-
opment block grant funds under title I of the Hous-
ing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
(2) NO MATCH.—No matching funds shall be 
required in order for an eligible entity to receive any 
amounts under this section. 
(3) TENANT PROTECTIONS.—An eligible entity 
receiving a grant under this section shall comply 
with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, 
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157 
and 23rd provisos of the American Recovery and Re-
investment Act of 2009 (Public Law 111–5, 123 
Stat. 218–19), as amended by section 1497(b)(2) of 
the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Public Law 111–203, 124 Stat. 
2211). 
(4) VICINITY HIRING.—An eligible entity receiv-
ing a grant under this section shall comply with sec-
tion 1497(a)(8) of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act (Public Law 
111–203, 129 Stat. 2210). 
(5) BUY
AMERICAN.—Section 1605 of title 
XVI. 
(f) AUTHORITY TO SPECIFY ALTERNATIVE REQUIRE-
MENTS.— 
(1) IN
GENERAL.—In administering the pro-
gram under this section, the Secretary may specify 
alternative requirements to any provision under title 
I of the Housing and Community Development Act 
of 1974 or under title I of the Cranston-Gonzalez 
National Affordable Housing Act of 1990 (except for 
those provisions in these laws related to fair hous-
ing, nondiscrimination, labor standards, and the en-
vironment) for the purpose of expediting and facili-
tating the use of funds under this section. 
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158 
(2) NOTICE.—The Secretary shall provide writ-
ten notice of intent to the public via internet to exer-
cise the authority to specify alternative requirements 
under paragraph. 
(3) LOW
AND
MODERATE
INCOME
REQUIRE-
MENT.— 
(A) IN
GENERAL.—Notwithstanding the 
authority of the Secretary under paragraph 
(1)— 
(i) all of the formula and competitive 
grantee funds appropriated or otherwise 
made available under this section shall be 
used with respect to individuals and fami-
lies whose income does not exceed 120 per-
cent of area median income; and 
(ii) not less than 25 percent of the 
formula and competitive grantee funds ap-
propriated or otherwise made available 
under this section shall be used for the 
purchase and redevelopment of eligible 
properties that will be used to house indi-
viduals or families whose incomes do not 
exceed 50 percent of area median income. 
(B) 
RECURRENT
REQUIREMENT.—The 
Secretary shall, by rule or order, ensure, to the 
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159 
maximum extent practicable and for the longest 
feasible term, that the sale, rental, or redevelop-
ment of abandoned and foreclosed-upon homes 
and residential properties under this section re-
main affordable to individuals or families de-
scribed in subparagraph (A). 
(g) NATIONWIDE DISTRIBUTION OF RESOURCES.— 
Notwithstanding any other provision of this section or the 
amendments made by this section, each State shall receive 
not less than $20,000,000 of formula funds. 
(h) LIMITATION ON USE OF FUNDS WITH RESPECT 
TO EMINENT DOMAIN.—No State or unit of general local 
government may use any amounts received pursuant to 
this section to fund any project that seeks to use the power 
of eminent domain, unless eminent domain is employed 
only for a public use, which shall not be construed to in-
clude economic development that primarily benefits pri-
vate entities. 
(i) LIMITATION ON DISTRIBUTION OF FUNDS.— 
(1) IN
GENERAL.—None of the funds made 
available under this title or title IV shall be distrib-
uted to— 
(A) an organization which has been in-
dicted for a violation under Federal law relating 
to an election for Federal office; or 
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160 
(B) an organization which employs applica-
ble individuals. 
(2) APPLICABLE
INDIVIDUALS
DEFINED.—In 
this section, the term ‘‘applicable individual’’ means 
an individual who— 
(A) is— 
(i) employed by the organization in a 
permanent or temporary capacity; 
(ii) contracted or retained by the or-
ganization; or 
(iii) acting on behalf of, or with the 
express or apparent authority of, the orga-
nization; and 
(B) has been indicted for a violation under 
Federal law relating to an election for Federal 
office. 
(j) RENTAL HOUSING PREFERENCES.—Each State 
and local government receiving formula amounts shall es-
tablish procedures to create preferences for the develop-
ment of affordable rental housing. 
(k) JOB CREATION.—If a grantee chooses to use 
funds to create jobs by establishing and operating a pro-
gram to maintain eligible neighborhood properties, not 
more than 10 percent of any grant may be used for that 
purpose. 
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161 
(l) PROGRAM SUPPORT AND CAPACITY BUILDING.— 
The Secretary may use up to 0.75 percent of the funds 
appropriated for capacity building of and support for eligi-
ble entities and grantees undertaking neighborhood sta-
bilization programs, staffing, training, technical assist-
ance, technology, monitoring, travel, enforcement, re-
search, and evaluation activities. 
(1) Funds set aside for the purposes of this 
subparagraph shall remain available until September 
30, 2016. 
(2) Any funds made available under this sub-
paragraph and used by the Secretary for personnel 
expenses related to administering funding under this 
subparagraph shall be transferred to ‘‘Personnel 
Compensation and Benefits, Community Planning 
and Development’’. 
(3) Any funds made available under this sub-
paragraph and used by the Secretary for training or 
other administrative expenses shall be transferred to 
‘‘Administration, 
Operations, 
and 
Management, 
Community Planning and Development’’ for non- 
personnel expenses. 
(4) Any funds made available under this sub-
paragraph and used by the Secretary for technology 
shall be transferred to ‘‘Working Capital Fund’’. 
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