147 
Subtitle F—Limit Military Bands 
SEC. 641. LIMITATION ON EXPENDITURES FOR MILITARY 
MUSICAL UNITS. 
Amounts expended for any fiscal year for military 
musical units (as defined in section 974 of title 10, United 
States Code) may not exceed $200,000,000. 
Subtitle G—Reduction in Number 
of General and Flag Officers 
SEC. 651. RETURN OF MAXIMUM NUMBER OF GENERAL 
AND FLAG OFFICERS TO COLD WAR LEVELS. 
Section 526 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(i) ADDITIONAL LIMITATION STATED AS RATIO OF 
MEMBERS ON ACTIVE DUTY.—Notwithstanding any other 
provision of this section, the number of general officers 
on active duty in the Army, Air Force, or Marine Corps, 
and the number of flag officers on active duty in the Navy, 
may not exceed six general officers or flag officers for each 
10,000 members of that armed force on active duty.’’. 
Subtitle H—Audit the Pentagon 
SEC. 661. PURPOSES. 
The purposes of this subtitle are as follows: 
(1) To strengthen American national security 
by ensuring that— 
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(A) military planning, operations, weapons 
development, and a long-term national security 
strategy are connected to sound financial con-
trols; and 
(B) defense dollars are spent efficiently. 
(2) To instill a culture of accountability at the 
Department of Defense that supports the vast ma-
jority of dedicated members of the Armed Forces 
and civilians who want to ensure proper accounting 
and prevent waste, fraud, and abuse. 
SEC. 662. FINDINGS. 
Congress finds the following: 
(1) The 2011 Financial Report of the United 
States Government found that 32 of 35 major Fed-
eral agencies received clean audit opinions. Two 
more, the Department of Homeland Security and 
the Department of State, received ‘‘qualified’’ audit 
opinions but are making progress. Only the Depart-
ment of Defense had a ‘‘disclaimer’’ because it 
lacked any auditable reporting or accounting avail-
able for independent review. 
(2) The financial management of the Depart-
ment of Defense has been on the ‘‘High-Risk’’ list 
of the Government Accountability Office (GAO). The 
GAO found that the Department is not consistently 
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able to ‘‘control costs; ensure basic accountability; 
anticipate future costs and claims on the budget; 
measure performance; maintain funds control; and 
prevent and detect fraud, waste, and abuse’’. 
(3) At a September 2010 hearing of the Senate, 
the Government Accountability Office stated that 
past expenditures by the Department of Defense of 
$5,800,000,000 to improve financial information, 
and billions of dollars more of anticipated expendi-
tures on new information technology systems for 
that purpose, may not suffice to achieve full audit 
readiness of the financial statement of the Depart-
ment. At that hearing, the Government Account-
ability Office could not predict when the Department 
would achieve full audit readiness of such state-
ments. 
(4) Section 9 of article I of the Constitution of 
the United States requires all agencies of the Fed-
eral Government, including the Department of De-
fense, to publish ‘‘a regular statement and account 
of the receipts and expenditures of all public 
money’’. 
(5) Section 303(d) of the Chief Financial Offi-
cers Act of 1990 (Public Law 101–576) required 
that financial statements be prepared and independ-
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ently audited for the Department of the Army by 
March 31, 1992, and for the Department of the Air 
Force by March 31, 1993. Neither the Department 
of the Army nor the Department of the Air Force 
has complied. 
(6) Section 3515 of title 31, United States 
Code, requires the agencies of the Federal Govern-
ment, including the Department of Defense, to 
present auditable financial statements beginning not 
later than March 1, 1997. The Department has not 
complied with this law. 
(7) The Federal Financial Management Im-
provement Act of 1996 (31 U.S.C. 3512 note) re-
quires financial systems acquired by the Federal 
Government, including the Department of Defense, 
to be able to provide information to leaders to man-
age and control the cost of government. The Depart-
ment has not complied with this law. 
(8) The National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107–107) requires 
the Secretary of Defense to report to Congress an-
nually on the reliability of the financial statements 
of the Department of Defense, to minimize resources 
spent on producing unreliable financial statements, 
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and to use resources saved to improve financial man-
agement policies, procedures, and internal controls. 
(9) In 2005, the Department of Defense cre-
ated a Financial Improvement and Audit Readiness 
(FIAR) Plan, overseen by a directorate within the 
office of the Under Secretary of Defense (Comp-
troller), to improve Department business processes 
with the goal of producing timely, reliable, and accu-
rate financial information that could generate an 
audit-ready annual financial statement. In December 
2005, that directorate, known as the FIAR Direc-
torate, issued the first of a series of semiannual re-
ports on the status of the Financial Improvement 
and Audit Readiness Plan. 
(10) The National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84) requires 
regular status reports on the Financial Improvement 
and Audit Readiness Plan described in paragraph 
(9), and codified as a statutory requirement the goal 
of the Plan in ensuring that Department of Defense 
financial statements are validated as ready for audit 
not later than September 30, 2017. 
SEC. 663. SPENDING REDUCTIONS FOR AGENCIES WITHOUT 
CLEAN AUDITS. 
(a) APPLICABILITY.— 
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(1) IN GENERAL.—Subject to paragraph (2), 
this section applies to each Federal agency identified 
by the Director of the Office of Management and 
Budget as required to have an audited financial 
statement under section 3515 of title 31, United 
States Code. 
(2) APPLICABILITY TO MILITARY DEPARTMENTS 
AND DEFENSE AGENCIES.—For purposes of para-
graph (1), in the case of the Department of Defense, 
each military department and each Defense Agency 
shall be treated as a separate Federal agency. 
(b) DEFINITIONS.—In this section, the terms ‘‘finan-
cial statement’’ and ‘‘external independent auditor’’ have 
the meanings given those terms in section 3521(e) of title 
31, United States Code. 
(c) 
ADJUSTMENTS
FOR
FINANCIAL
ACCOUNT-
ABILITY.— 
(1) REDUCTION REQUIRED.—If a Federal agen-
cy has not submitted a financial statement for a fis-
cal year by March 1 of the next fiscal year, or if 
such financial statement has not received either an 
unqualified or a qualified audit opinion by an inde-
pendent external auditor by such date, the discre-
tionary budget authority available for the Federal 
agency for the then current fiscal year is reduced by 
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5 percent, with the reduction applied proportionately 
to each account (other than an account listed in sub-
section (d) or an account for which a waiver is made 
under subsection (e)). 
(2) TREATMENT OF REDUCTION.—An amount 
equal to the total amount of any reduction made 
under paragraph (2) shall be retained in the general 
fund of the Treasury for the purposes of deficit re-
duction. 
(d) ACCOUNTS EXCLUDED.—The following accounts 
are excluded from any reductions referred to in subsection 
(c)(1): 
(1) Military personnel, reserve personnel, and 
National Guard personnel accounts of the Depart-
ment of Defense. 
(2) The Defense Health Program account of 
the Department of Defense. 
(e) WAIVER.—The President may waive subsection 
(c)(1) with respect to an account if the President certifies 
that applying the subsection to that account would harm 
national security or members of the Armed Forces who 
are serving in a combat zone. 
(f) REPORT.—Not later than 60 days after an adjust-
ment is made under subsection (c), the Director of the 
Office of Management and Budget shall submit to Con-
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gress a report describing the amount of the adjustment 
and the affected accounts. 
SEC. 664. REPORT ON DEPARTMENT OF DEFENSE REPORT-
ING REQUIREMENTS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Under Secretary of Defense (Comp-
troller) shall submit to Congress a report setting forth the 
following: 
(1) A list of each report of the Department of 
Defense required by law to be submitted to Congress 
which, in the opinion of the Under Secretary, would 
no longer be necessary if the financial statements of 
the Department of Defense were audited with an un-
qualified opinion. 
(2) A list of each report of the Department re-
quired by law to be submitted to Congress which, in 
the opinion of the Under Secretary, interferes with 
the capacity of the Department to achieve an audit 
of the financial statements of the Department with 
an unqualified opinion. 
SEC. 665. SENSE OF CONGRESS IN IMPLEMENTATION OF 
DEFENSE BUDGET REDUCTIONS. 
It is the sense of Congress that— 
(1) as the overall defense budget is cut, con-
gressional defense committees and the Department 
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of Defense should not endanger members of the 
Armed Forces by reducing wounded warrior ac-
counts or vital protection (such as body armor) for 
members of the Armed Forces in harm’s way; 
(2) the valuation of legacy assets by the De-
partment of Defense should be simplified without 
compromising essential controls or generally accept-
ed government auditing standards; and 
(3) nothing in this subtitle should be construed 
to require or permit the declassification of account-
ing details about classified defense programs, and, 
as required by law, the Department of Defense 
should ensure financial accountability in such pro-
grams using proven practices, including using audi-
tors with security clearances. 
TITLE VII—INVEST IN JOB 
CREATION 
Subtitle A—Making Work Pay 
Extension 
SEC. 701. ONE-YEAR EXTENSION OF MAKING WORK PAY 
CREDIT. 
(a) IN GENERAL.—Subsection (e) of section 36A of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
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‘‘(e) TERMINATION.—This section shall not apply to 
taxable years— 
‘‘(1) beginning after December 31, 2010, and 
before January 1, 2013, or 
‘‘(2) beginning after December 31, 2013.’’. 
(b) TREATMENT OF POSSESSIONS.—Paragraph (1) 
of section 1001(b) of the American Recovery and Rein-
vestment Tax Act of 2009 is amended by striking ‘‘2009 
and 2010’’ both places it appears and inserting ‘‘2009, 
2010, and 2013’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
Subtitle B—Support for Teachers 
and School Modernization 
PART I—PREVENTING TEACHER LAYOFFS AND 
SUPPORTING 
THE 
CREATION 
OF 
ADDI-
TIONAL JOBS IN PUBLIC EARLY CHILDHOOD, 
ELEMENTARY, AND SECONDARY EDUCATION 
SEC. 711. PURPOSE. 
The purpose of this part is to provide funds to States 
to prevent teacher layoffs and support the creation of ad-
ditional jobs in public early childhood, elementary, and 
secondary education in the 2012–2013 and 2013–2014 
school years. 
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SEC. 712. 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 721, 
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 part 
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 part, 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 721 shall remain available to the Sec-
retary until September 30, 2014. 
SEC. 713. STATE ALLOCATION. 
(a) ALLOCATION.—After reserving funds under sec-
tion section 712(a), the Secretary shall allocate the re-
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maining funds appropriated under section 721 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 714. 
(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 2013 and 2014 meet the re-
quirements of section 718. 
(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 
2013 meet the requirements of section 718(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 part or only receives a portion of its 
allocation under subsection (c), the Secretary shall reallo-
cate the State’s entire allocation or the remaining portion 
of its allocation, as the case may be, to the remaining 
States in accordance with subsection (a). 
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SEC. 714. 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. 715. STATE RESERVATION AND RESPONSIBILITIES. 
(a) RESERVATION.—Each State receiving a grant 
under section 713(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 part 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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(A) 60 percent on the basis of the local 
educational agencies’ relative shares of enroll-
ment; and 
(B) 40 percent on the basis of the local 
educational agencies’ relative shares of funds 
received under part A of title I of the Elemen-
tary and Secondary Education Act of 1965 for 
fiscal year 2012; and 
(3) make those funds available to local edu-
cational agencies no later than 100 days after receiv-
ing a grant from the Secretary. 
(c) PROHIBITIONS.—A State shall not use funds re-
ceived under this subtitle to directly or indirectly— 
(1) establish, restore, or supplement a rainy-day 
fund; 
(2) supplant State funds in a manner that has 
the 
effect 
of 
establishing, 
restoring, 
or 
supplementing a rainy-day fund; 
(3) reduce or retire debt obligations incurred by 
the State; or 
(4) supplant State funds in a manner that has 
the effect of reducing or retiring debt obligations in-
curred by the State. 
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SEC. 716. LOCAL EDUCATIONAL AGENCIES. 
Each local educational agency that receives a 
subgrant under this part— 
(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, 2014; 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. 717. 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, 2014. 
SEC. 718. 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 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 
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is equal to or greater than the percentage pro-
vided for State fiscal year 2012; and 
(2) for State fiscal year 2014— 
(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 2013; 
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 2013. 
(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. 719. REPORTING. 
Each State that receives a grant under this part 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. 720. DEFINITIONS. 
In this part: 
(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. 721. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated, and there 
are appropriated, $30,000,000,000 to carry out this part 
for fiscal year 2013. 
PART II—ELEMENTARY AND SECONDARY 
SCHOOLS 
SEC. 731. 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 
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across America in order to support the achievement of im-
proved educational outcomes in those schools. 
SEC. 732. 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, 2014. 
SEC. 733. ALLOCATION OF FUNDS. 
(a) RESERVATIONS.—Of the amount made available 
to carry out this part, the Secretary shall reserve— 
(1) one-half of one percent for the Secretary of 
the Interior to carry out modernization, renovation, 
and repair activities described in section 736 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 736; 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-
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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 2013, 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-
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 
2013; 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— 
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169 
(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 2013 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 
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. 734. 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 733(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 
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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 733(b)(1) from the Secretary, in ac-
cordance with their respective allocations under part 
A of title I of the ESEA for fiscal year 2013, 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 
paragraph (1), for subgrants to local educational 
agencies that did not receive funds under section 
733(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). 
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SEC. 735. 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 
(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 734(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; 
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(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; 
(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 738; 
(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 
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(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 
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 733(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 
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(3) such additional information and assurances 
as the Secretary may require. 
SEC. 736. 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-
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 
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(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. 737. 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— 
(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 
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(C) asbestos or polychlorinated biphenyls 
abatement or removal from school facilities; and 
(3) expenditures for services provided using 
funds made available under section 736 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 
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. 
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SEC. 738. ADDITIONAL PROVISIONS. 
(a) 24-MONTH PERIOD OF AVAILABILITY.—Funds 
appropriated under section 732 shall be available for obli-
gation by local educational agencies receiving grants from 
the Secretary under section 733(b)(1), by States reserving 
funds under section 734(a), and by local educational agen-
cies receiving subgrants under section 734(b)(1) only dur-
ing the period that ends 24 months after the date of enact-
ment of this Act. 
(b) 36-MONTH PERIOD OF AVAILABILITY.—Funds 
appropriated under section 732 shall be available for obli-
gation by local educational agencies receiving subgrants 
under section 734(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 733(b)(1), 
Hawaii, the District of Columbia, and the Commonwealth 
of Puerto Rico are not local educational agencies. 
PART III—COMMUNITY COLLEGE 
MODERNIZATION 
SEC. 739. FEDERAL ASSISTANCE FOR COMMUNITY COL-
LEGE MODERNIZATION. 
(a) IN GENERAL.— 
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(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— 
(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 
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740(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 
740(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-
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-
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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 
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; 
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(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; 
(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 
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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— 
(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, 2013, and annually thereafter for each fiscal 
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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 
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 2013. 
(2) Funds appropriated under this subsection 
shall be available for obligation by community col-
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leges only during the period that ends 36 months 
after the date of enactment of this Act. 
PART IV—GENERAL PROVISIONS 
SEC. 740. 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: 
(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. 
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(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-
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— 
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(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 
(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-
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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 
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; 
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(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-
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— 
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(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 
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. 741. 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. 
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Subtitle C—Transportation 
Infrastructure Investments 
PART I—IMMEDIATE TRANSPORTATION 
INFRASTRUCTURE INVESTMENTS 
SEC. 751. IMMEDIATE TRANSPORTATION INFRASTRUCTURE 
INVESTMENTS. 
(a) GRANTS-IN-AID FOR AIRPORTS.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $6,000,000,000 to 
carry out airport improvement under subchapter I of 
chapter 471 and subchapter I of chapter 475 of title 
49, United States Code. 
(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. 
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(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 
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 $3,000,000,000 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-
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192 
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 $81,000,000,000 
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 
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 
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193 
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 
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 
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194 
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 
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 shall notify in writing the Committee 
on Transportation and Infrastructure and the 
Committee on Environment and Public Works, 
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providing a thorough justification for the exten-
sion. 
(7) PUERTO RICO AND TERRITORIAL HIGHWAY 
PROGRAMS.—Of the funds provided under this sub-
section, $315,000,000 shall be set aside for the 
Puerto Rico highway program and $135,000,000 
shall be for the territorial highway program author-
ized under section 165 of title 23, United States 
Code. 
(8) FEDERAL
LANDS
AND
INDIAN
RESERVA-
TIONS.—Of the funds provided under this sub-
section, $1,650,000,000 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, $930,000,000 shall be for the Indian 
Reservation 
Roads 
program, 
$510,000,000 
shall be for the Park Roads and Parkways pro-
gram, $180,000,000 shall be for the Forest 
Highway Program, and $30,000,000 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-
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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. 
(9) JOB
TRAINING.—Of the funds provided 
under this subsection, $150,000,000 shall be set 
aside for the development and administration of 
transportation 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 
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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; 
(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. 
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198 
(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. 
(10) 
DISADVANTAGED
BUSINESS
ENTER-
PRISES.—Of the funds provided under this sub-
section, $30,000,000 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 
businesses that have proven success in adding staff 
while effectively completing projects. 
(11) 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. 
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199 
(12) 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. 
(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. 
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200 
(D) Section 1101(b) of Public Law 109–59 
shall apply to funds apportioned under this sub-
section. 
(13) 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.— 
(1) IN GENERAL.—There is made available to 
the Secretary of Transportation $12,000,000,000 
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 
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201 
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. 
(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 
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202 
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, 
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.— 
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203 
(1) IN
GENERAL.—There is made available 
$6,000,000,000 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. 
(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. 
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204 
(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 
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 $9,000,000,000 for 
grants for transit capital assistance grants as de-
fined by section 5302(a)(3) of title 49, United 
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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 
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. 
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206 
(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. 
(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 
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207 
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-
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 
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214 
(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-
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-
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