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† HR 1319 EAS 
‘‘(i) a covered loan of the taxpayer 
under section 7(a)(37) of the Small Busi-
ness Act is not forgiven by reason of a deci-
sion under section 7(a)(37)(J) of such Act, 
or 
‘‘(ii) a covered loan of the taxpayer 
under section 7A of the Small Business Act 
is not forgiven by reason of a decision 
under section 7A(g) of such Act. 
Terms used in the preceding sentence which are 
also used in section 7A(g) or 7(a)(37)(J) of the 
Small Business Act shall, when applied in con-
nection with either such section, have the same 
meaning as when used in such section, respec-
tively. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary to 
carry out the purposes of this section, including— 
‘‘(1) regulations or other guidance to prevent the 
avoidance of the purposes of the limitations under 
this section, 
‘‘(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section,
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† HR 1319 EAS 
‘‘(3) regulations or other guidance providing for 
waiver of penalties for failure to deposit amounts in 
anticipation of the allowance of the credit allowed 
under this section, 
‘‘(4) regulations or other guidance for recap-
turing the benefit of credits determined under this sec-
tion in cases where there is a subsequent adjustment 
to the credit determined under subsection (a), 
‘‘(5) regulations or other guidance to ensure that 
the wages taken into account under this section con-
form with the paid leave required to be provided 
under the Emergency Family and Medical Leave Ex-
pansion Act (including the amendments made by such 
Act), 
‘‘(6) regulations or other guidance to permit the 
advancement of the credit determined under sub-
section (a), and 
‘‘(7) regulations or other guidance with respect 
to the allocation, reporting, and substantiation of col-
lectively bargained defined benefit pension plan con-
tributions and collectively bargained apprenticeship 
program contributions. 
‘‘(h) APPLICATION OF SECTION.—This section shall 
apply only to wages paid with respect to the period begin-
ning on April 1, 2021, and ending on September 30, 2021.
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† HR 1319 EAS 
‘‘(i) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 for any failure to 
make a deposit of applicable employment taxes if the Sec-
retary determines that such failure was due to the anticipa-
tion of the credit allowed under this section. 
‘‘(j) NON-DISCRIMINATION REQUIREMENT.—No credit 
shall be allowed under this section to any employer for any 
calendar quarter if such employer, with respect to the avail-
ability of the provision of qualified family leave wages to 
which this section otherwise applies for such calendar quar-
ter, discriminates in favor of highly compensated employees 
(within the meaning of section 414(q)), full-time employees, 
or employees on the basis of employment tenure with such 
employer. 
‘‘SEC. 3133. SPECIAL RULE RELATED TO TAX ON EMPLOY-
ERS. 
‘‘(a) IN GENERAL.—The credit allowed by section 3131 
and the credit allowed by section 3132 shall each be in-
creased by the amount of the taxes imposed by subsections 
(a) and (b) of section 3111 and section 3221(a) on qualified 
sick leave wages, or qualified family leave wages, for which 
credit is allowed under such section 3131 or 3132 (respec-
tively).
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† HR 1319 EAS 
‘‘(b) DENIAL OF DOUBLE BENEFIT.—For denial of 
double benefit with respect to the credit increase under sub-
section (a), see sections 3131(f)(3) and 3132(f)(3).’’. 
(b) REFUNDS.—Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting ‘‘3131, 
3132,’’ before ‘‘6428’’. 
(c) CLERICAL AMENDMENT.—The table of subchapters 
for chapter 21 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item: 
‘‘SUBCHAPTER D—CREDITS’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to amounts paid with respect to cal-
endar quarters beginning after March 31, 2021. 
SEC. 9642. CREDIT FOR SICK LEAVE FOR CERTAIN SELF-EM-
PLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible self-em-
ployed individual, there shall be allowed as a credit against 
the tax imposed by chapter 1 of the Internal Revenue Code 
of 1986 for any taxable year an amount equal to the quali-
fied sick leave equivalent amount with respect to the indi-
vidual. 
(b) ELIGIBLE
SELF-EMPLOYED
INDIVIDUAL.—For 
purposes of this section— 
(1) IN
GENERAL.—The term ‘‘eligible self-em-
ployed individual’’ means an individual who—
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† HR 1319 EAS 
(A) regularly carries on any trade or busi-
ness within the meaning of section 1402 of the 
Internal Revenue Code of 1986, and 
(B) would be entitled to receive paid leave 
during the taxable year pursuant to the Emer-
gency Paid Sick Leave Act if— 
(i) the individual were an employee of 
an employer (other than himself or herself), 
and 
(ii) such Act applied after March 31, 
2021. 
(2) RULES OF APPLICATION.—For purposes of 
paragraph (1)(B), in determining whether an indi-
vidual would be entitled to receive paid leave under 
the Emergency Paid Sick Leave Act, such Act shall 
be applied— 
(A) by inserting ‘‘, the employee is seeking 
or awaiting the results of a diagnostic test for, 
or a medical diagnosis of, COVID–19 and such 
employee has been exposed to COVID–19 or is 
unable to work pending the results of such test 
or diagnosis, or the employee is obtaining immu-
nization related to COVID–19 or recovering from 
any injury, disability, illness, or condition re-
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† HR 1319 EAS 
lated to such immunization’’ after ‘‘medical di-
agnosis’’ in section 5102(a)(3) of such Act, and 
(B) by applying section 5102(b)(1) of such 
Act separately with respect to each taxable year. 
(c) QUALIFIED SICK LEAVE EQUIVALENT AMOUNT.— 
For purposes of this section— 
(1) IN GENERAL.—The term ‘‘qualified sick leave 
equivalent amount’’ means, with respect to any eligi-
ble self-employed individual, an amount equal to— 
(A) the number of days during the taxable 
year (but not more than 10) that the individual 
is unable to perform services in any trade or 
business referred to in section 1402 of the Inter-
nal Revenue Code of 1986 for a reason with re-
spect to which such individual would be entitled 
to receive sick leave as described in subsection 
(b), multiplied by 
(B) the lesser of— 
(i) $200 ($511 in the case of any day 
of paid sick time described in paragraph 
(1), (2), or (3) of section 5102(a) of the 
Emergency Paid Sick Leave Act, applied 
with the modification described in sub-
section (b)(2)(A)) of this section, or
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† HR 1319 EAS 
as the Secretary may prescribe) to not take such day 
into account for purposes of such paragraph. 
(d) CREDIT REFUNDABLE.— 
(1) IN GENERAL.—The credit determined under 
this section shall be treated as a credit allowed to the 
taxpayer under subpart C of part IV of subchapter A 
of chapter 1 of such Code. 
(2) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, any re-
fund due from the credit determined under this sec-
tion shall be treated in the same manner as a refund 
due from a credit provision referred to in subsection 
(b)(2) of such section. 
(e) SPECIAL RULES.— 
(1) DOCUMENTATION.—No credit shall be al-
lowed under this section unless the individual main-
tains such documentation as the Secretary may pre-
scribe to establish such individual as an eligible self- 
employed individual. 
(2) DENIAL OF DOUBLE BENEFIT.—In the case of 
an individual who receives wages (as defined in sec-
tion 3121(a) of the Internal Revenue Code of 1986) 
or compensation (as defined in section 3231(e) of such 
Code) paid by an employer which are required to be 
paid by reason of the Emergency Paid Sick Leave
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† HR 1319 EAS 
Act, the qualified sick leave equivalent amount other-
wise determined under subsection (c) of this section 
shall be reduced (but not below zero) to the extent that 
the sum of the amount described in such subsection 
and in section 3131(b)(1) of such Code exceeds $2,000 
($5,110 in the case of any day any portion of which 
is paid sick time described in paragraph (1), (2), or 
(3) of section 5102(a) of the Emergency Paid Sick 
Leave Act). 
(f) APPLICATION OF SECTION.—Only days occurring 
during the period beginning on April 1, 2021, and ending 
on September 30, 2021, may be taken into account under 
subsection (c)(1)(A). 
(g) APPLICATION OF CREDIT IN CERTAIN POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary shall pay to each 
possession of the United States which has a mirror 
code tax system amounts equal to the loss (if any) to 
that possession by reason of the application of the 
provisions of this section. Such amounts shall be de-
termined by the Secretary based on information pro-
vided by the government of the respective possession. 
(2) PAYMENTS
TO
OTHER
POSSESSIONS.—The 
Secretary shall pay to each possession of the United
438 
† HR 1319 EAS 
States which does not have a mirror code tax system 
amounts estimated by the Secretary as being equal to 
the aggregate benefits (if any) that would have been 
provided to residents of such possession by reason of 
the provisions of this section if a mirror code tax sys-
tem had been in effect in such possession. The pre-
ceding sentence shall not apply unless the respective 
possession has a plan, which has been approved by 
the Secretary, under which such possession will 
promptly distribute such payments to its residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if the 
income tax liability of the residents of such possession 
under such system is determined by reference to the 
income tax laws of the United States as if such pos-
session were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the pay-
ments under this subsection shall be treated in the 
same manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section.
439 
† HR 1319 EAS 
(h) REGULATIONS.—The Secretary shall prescribe such 
regulations or other guidance as may be necessary to carry 
out the purposes of this section, including— 
(1) regulations or other guidance to effectuate the 
purposes of this section, and 
(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section. 
SEC. 9643. CREDIT FOR FAMILY LEAVE FOR CERTAIN SELF- 
EMPLOYED INDIVIDUALS. 
(a) IN GENERAL.—In the case of an eligible self-em-
ployed individual, there shall be allowed as a credit against 
the tax imposed by chapter 1 of the Internal Revenue Code 
of 1986 for any taxable year an amount equal to 100 per-
cent of the qualified family leave equivalent amount with 
respect to the individual. 
(b) ELIGIBLE
SELF-EMPLOYED
INDIVIDUAL.—For 
purposes of this section— 
(1) IN
GENERAL.—The term ‘‘eligible self-em-
ployed individual’’ means an individual who— 
(A) regularly carries on any trade or busi-
ness within the meaning of section 1402 of the 
Internal Revenue Code of 1986, and 
(B) would be entitled to receive paid leave 
during the taxable year pursuant to the Emer-
440 
† HR 1319 EAS 
gency Family and Medical Leave Expansion Act 
if— 
(i) the individual were an employee of 
an employer (other than himself or herself), 
(ii) section 102(a)(1)(F) of the Family 
and Medical Leave Act of 1993 applied 
after March 31, 2021. 
(2) RULES OF APPLICATION.—For purposes of 
paragraph (1)(B), in determining whether an indi-
vidual would be entitled to receive paid leave under 
the Emergency Family and Medical Leave Act— 
(A) section 110(a)(2)(A) of the Family and 
Medical Leave Act of 1993 shall be applied by 
inserting ‘‘or any reason for leave described in 
section 
5102(a) 
of 
the 
Families 
First 
Coronavirus Response Act, or the employee is 
seeking or awaiting the results of a diagnostic 
test for, or a medical diagnosis of, COVID–19 
and such employee has been exposed to COVID– 
19 or is unable to work pending the results of 
such test or diagnosis, or the employee is obtain-
ing immunization related to COVID–19 or re-
covering from any injury, disability, illness, or 
condition related to such immunization’’ after 
‘‘public health emergency’’, and
441 
† HR 1319 EAS 
(B) section 110(b) of such Act shall be ap-
plied— 
(i) without regard to paragraph (1) 
thereof, and 
(ii) by striking ‘‘after taking leave 
after such section for 10 days’’ in para-
graph (2)(A) thereof. 
(c) 
QUALIFIED
FAMILY
LEAVE
EQUIVALENT 
AMOUNT.—For purposes of this section— 
(1) IN GENERAL.—The term ‘‘qualified family 
leave equivalent amount’’ means, with respect to any 
eligible self-employed individual, an amount equal to 
the product of— 
(A) the number of days (not to exceed 60) 
during the taxable year that the individual is 
unable to perform services in any trade or busi-
ness referred to in section 1402 of the Internal 
Revenue Code of 1986 for a reason with respect 
to which such individual would be entitled to re-
ceive paid leave as described in subsection (b) of 
this section, multiplied by 
(B) the lesser of— 
(i) 67 percent of the average daily self- 
employment income of the individual for the 
taxable year, or
442 
† HR 1319 EAS 
(ii) $200. 
(2) AVERAGE
DAILY
SELF-EMPLOYMENT
IN-
COME.—For purposes of this subsection, the term ‘‘av-
erage daily self-employment income’’ means an 
amount equal to— 
(A) the net earnings from self-employment 
income of the individual for the taxable year, di-
vided by 
(B) 260. 
(3) ELECTION TO USE PRIOR YEAR NET EARN-
INGS FROM SELF-EMPLOYMENT INCOME.—In the case 
of an individual who elects (at such time and in such 
manner as the Secretary may provide) the applica-
tion of this paragraph, paragraph (2)(A) shall be ap-
plied by substituting ‘‘the prior taxable year’’ for ‘‘the 
taxable year’’. 
(4) COORDINATION
WITH
CREDIT
FOR
SICK 
LEAVE.—Any day taken into account in determining 
the qualified sick leave equivalent amount with re-
spect to any eligible-self employed individual under 
section 9642 shall not be take into account in deter-
mining the qualified family leave equivalent amount 
with respect to such individual under this section. 
(d) CREDIT REFUNDABLE.—
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† HR 1319 EAS 
(1) IN GENERAL.—The credit determined under 
this section shall be treated as a credit allowed to the 
taxpayer under subpart C of part IV of subchapter A 
of chapter 1 of such Code. 
(2) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, any re-
fund due from the credit determined under this sec-
tion shall be treated in the same manner as a refund 
due from a credit provision referred to in subsection 
(b)(2) of such section. 
(e) SPECIAL RULES.— 
(1) DOCUMENTATION.—No credit shall be al-
lowed under this section unless the individual main-
tains such documentation as the Secretary may pre-
scribe to establish such individual as an eligible self- 
employed individual. 
(2) DENIAL OF DOUBLE BENEFIT.—In the case of 
an individual who receives wages (as defined in sec-
tion 3121(a) of the Internal Revenue Code of 1986) 
or compensation (as defined in section 3231(e) of such 
Code) paid by an employer which are required to be 
paid by reason of the Emergency Family and Medical 
Leave Expansion Act, the qualified family leave 
equivalent amount otherwise described in subsection 
(c) of this section shall be reduced (but not below zero)
444 
† HR 1319 EAS 
to the extent that the sum of the amount described in 
such subsection and in section 3132(b)(1) of such 
Code exceeds $12,000. 
(3) REFERENCES TO EMERGENCY FAMILY AND 
MEDICAL LEAVE EXPANSION ACT.—Any reference in 
this section to the Emergency Family and Medical 
Leave Expansion Act shall be treated as including a 
reference to the amendments made by such Act. 
(f) APPLICATION OF SECTION.—Only days occurring 
during the period beginning on April 1, 2021 and ending 
on September 30, 2021, may be taken into account under 
subsection (c)(1)(A). 
(g) APPLICATION OF CREDIT IN CERTAIN POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary shall pay to each 
possession of the United States which has a mirror 
code tax system amounts equal to the loss (if any) to 
that possession by reason of the application of the 
provisions of this section. Such amounts shall be de-
termined by the Secretary based on information pro-
vided by the government of the respective possession. 
(2) PAYMENTS
TO
OTHER
POSSESSIONS.—The 
Secretary shall pay to each possession of the United 
States which does not have a mirror code tax system
445 
† HR 1319 EAS 
amounts estimated by the Secretary as being equal to 
the aggregate benefits (if any) that would have been 
provided to residents of such possession by reason of 
the provisions of this section if a mirror code tax sys-
tem had been in effect in such possession. The pre-
ceding sentence shall not apply unless the respective 
possession has a plan, which has been approved by 
the Secretary, under which such possession will 
promptly distribute such payments to its residents. 
(3) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if the 
income tax liability of the residents of such possession 
under such system is determined by reference to the 
income tax laws of the United States as if such pos-
session were the United States. 
(4) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the pay-
ments under this subsection shall be treated in the 
same manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(h) REGULATIONS.—The Secretary shall prescribe such 
regulations or other guidance as may be necessary to carry 
out the purposes of this section, including—
446 
† HR 1319 EAS 
(1) regulations or other guidance to prevent the 
avoidance of the purposes of this section, and 
(2) regulations or other guidance to minimize 
compliance and record-keeping burdens under this 
section. 
PART 6—EMPLOYEE RETENTION CREDIT 
SEC. 9651. EXTENSION OF EMPLOYEE RETENTION CREDIT. 
(a) IN GENERAL.—Subchapter D of chapter 21 of sub-
title C of the Internal Revenue Code of 1986, as added by 
section 9641, is amended by adding at the end the following: 
‘‘SEC. 3134. EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS SUBJECT TO CLOSURE DUE TO COVID–19. 
‘‘(a) IN GENERAL.—In the case of an eligible employer, 
there shall be allowed as a credit against applicable employ-
ment taxes for each calendar quarter an amount equal to 
70 percent of the qualified wages with respect to each em-
ployee of such employer for such calendar quarter. 
‘‘(b) LIMITATIONS AND REFUNDABILITY.— 
‘‘(1) IN GENERAL.— 
‘‘(A) WAGES TAKEN INTO ACCOUNT.—The 
amount of qualified wages with respect to any 
employee which may be taken into account under 
subsection (a) by the eligible employer for any 
calendar quarter shall not exceed $10,000.
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† HR 1319 EAS 
‘‘(B) RECOVERY STARTUP BUSINESSES.—In 
the case of an eligible employer which is a recov-
ery startup business (as defined in subsection 
(c)(5)), the amount of the credit allowed under 
subsection (a) (after application of subparagraph 
(A)) for any calendar quarter shall not exceed 
$50,000. 
‘‘(2) CREDIT LIMITED TO EMPLOYMENT TAXES.— 
The credit allowed by subsection (a) with respect to 
any calendar quarter shall not exceed the applicable 
employment taxes (reduced by any credits allowed 
under sections 3131 and 3132) on the wages paid 
with respect to the employment of all the employees 
of the eligible employer for such calendar quarter. 
‘‘(3) REFUNDABILITY OF EXCESS CREDIT.—If the 
amount of the credit under subsection (a) exceeds the 
limitation of paragraph (2) for any calendar quarter, 
such excess shall be treated as an overpayment that 
shall be refunded under sections 6402(a) and 6413(b). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) APPLICABLE
EMPLOYMENT
TAXES.—The 
term ‘applicable employment taxes’ means the fol-
lowing: 
‘‘(A) The taxes imposed under section 
3111(b).
448 
† HR 1319 EAS 
‘‘(B) So much of the taxes imposed under 
section 3221(a) as are attributable to the rate in 
effect under section 3111(b). 
‘‘(2) ELIGIBLE EMPLOYER.— 
‘‘(A) IN GENERAL.—The term ‘eligible em-
ployer’ means any employer— 
‘‘(i) which was carrying on a trade or 
business during the calendar quarter for 
which the credit is determined under sub-
section (a), and 
‘‘(ii) with respect to any calendar 
quarter, for which— 
‘‘(I) the operation of the trade or 
business described in clause (i) is fully 
or partially suspended during the cal-
endar quarter due to orders from an 
appropriate governmental authority 
limiting commerce, travel, or group 
meetings (for commercial, social, reli-
gious, or other purposes) due to the 
coronavirus disease 2019 (COVID–19), 
‘‘(II) the gross receipts (within the 
meaning of section 448(c)) of such em-
ployer for such calendar quarter are 
less than 80 percent of the gross re-
449 
† HR 1319 EAS 
ceipts of such employer for the same 
calendar quarter in calendar year 
2019, or 
‘‘(III) the employer is a recovery 
startup business (as defined in para-
graph (5)). 
With respect to any employer for any cal-
endar quarter, if such employer was not in 
existence as of the beginning of the same 
calendar quarter in calendar year 2019, 
clause (ii)(II) shall be applied by sub-
stituting ‘2020’ for ‘2019’. 
‘‘(B) ELECTION
TO
USE
ALTERNATIVE 
QUARTER.—At the election of the employer— 
‘‘(i) subparagraph (A)(ii)(II) shall be 
applied— 
‘‘(I) by substituting ‘for the imme-
diately preceding calendar quarter’ for 
‘for such calendar quarter’, and 
‘‘(II) by substituting ‘the cor-
responding calendar quarter in cal-
endar year 2019’ for ‘the same cal-
endar quarter in calendar year 2019’, 
and
450 
† HR 1319 EAS 
‘‘(ii) the last sentence of subparagraph 
(A) shall be applied by substituting ‘the cor-
responding calendar quarter in calendar 
year 2019’ for ‘the same calendar quarter in 
calendar year 2019’. 
An election under this subparagraph shall be 
made at such time and in such manner as the 
Secretary shall prescribe. 
‘‘(C) TAX-EXEMPT ORGANIZATIONS.—In the 
case of an organization which is described in sec-
tion 501(c) and exempt from tax under section 
501(a)— 
‘‘(i) clauses (i) and (ii)(I) of subpara-
graph (A) shall apply to all operations of 
such organization, and 
‘‘(ii) any reference in this section to 
gross receipts shall be treated as a reference 
to gross receipts within the meaning of sec-
tion 6033. 
‘‘(3) QUALIFIED WAGES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
wages’ means— 
‘‘(i) in the case of an eligible employer 
for which the average number of full-time 
employees (within the meaning of section
451 
† HR 1319 EAS 
4980H) employed by such eligible employer 
during 2019 was greater than 500, wages 
paid by such eligible employer with respect 
to which an employee is not providing serv-
ices due to circumstances described in sub-
clause (I) or (II) of paragraph (2)(A)(ii), or 
‘‘(ii) in the case of an eligible employer 
for which the average number of full-time 
employees (within the meaning of section 
4980H) employed by such eligible employer 
during 2019 was not greater than 500— 
‘‘(I) with respect to an eligible 
employer described in subclause (I) of 
paragraph (2)(A)(ii), wages paid by 
such eligible employer with respect to 
an employee during any period de-
scribed in such clause, or 
‘‘(II) with respect to an eligible 
employer described in subclause (II) of 
such paragraph, wages paid by such el-
igible employer with respect to an em-
ployee during such quarter. 
‘‘(B) SPECIAL RULE FOR EMPLOYERS NOT 
IN EXISTENCE IN 2019.—In the case of any em-
ployer that was not in existence in 2019, sub-
452 
† HR 1319 EAS 
paragraph (A) shall be applied by substituting 
‘2020’ for ‘2019’ each place it appears. 
‘‘(C) SEVERELY FINANCIALLY DISTRESSED 
EMPLOYERS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A)(i), in the case of a se-
verely financially distressed employer, the 
term ‘qualified wages’ means wages paid by 
such employer with respect to an employee 
during any calendar quarter. 
‘‘(ii) DEFINITION.—The term ‘severely 
financially distressed employer’ means an 
eligible employer as defined in paragraph 
(2), determined by substituting ‘less than 10 
percent’ for ‘less than 80 percent’ in sub-
paragraph (A)(ii)(II) thereof. 
‘‘(D) 
EXCEPTION.—The 
term 
‘qualified 
wages’ shall not include any wages taken into 
account under sections 41, 45A, 45P, 45S, 51, 
1396, 3131, and 3132. 
‘‘(4) WAGES.— 
‘‘(A) IN GENERAL.—The term ‘wages’ means 
wages (as defined in section 3121(a)) and com-
pensation (as defined in section 3231(e)). For 
purposes of the preceding sentence, in the case of
453 
† HR 1319 EAS 
any organization or entity described in sub-
section (f)(2), wages as defined in section 
3121(a) shall be determined without regard to 
paragraphs (5), (6), (7), (10), and (13) of section 
3121(b) (except with respect to services per-
formed in a penal institution by an inmate 
thereof). 
‘‘(B) ALLOWANCE
FOR
CERTAIN
HEALTH 
PLAN EXPENSES.— 
‘‘(i) IN GENERAL.—Such term shall in-
clude amounts paid by the eligible employer 
to provide and maintain a group health 
plan (as defined in section 5000(b)(1)), but 
only to the extent that such amounts are ex-
cluded from the gross income of employees 
by reason of section 106(a). 
‘‘(ii) ALLOCATION
RULES.—For pur-
poses of this section, amounts treated as 
wages under clause (i) shall be treated as 
paid with respect to any employee (and 
with respect to any period) to the extent 
that such amounts are properly allocable to 
such employee (and to such period) in such 
manner as the Secretary may prescribe. Ex-
cept as otherwise provided by the Secretary,
454 
† HR 1319 EAS 
such allocation shall be treated as properly 
made if made on the basis of being pro rata 
among periods of coverage. 
‘‘(5) RECOVERY STARTUP BUSINESS.—The term 
‘recovery startup business’ means any employer— 
‘‘(A) which began carrying on any trade or 
business after February 15, 2020, 
‘‘(B) for which the average annual gross re-
ceipts of such employer (as determined under 
rules 
similar 
to 
the 
rules 
under 
section 
448(c)(3)) for the 3-taxable-year period ending 
with the taxable year which precedes the cal-
endar quarter for which the credit is determined 
under subsection (a) does not exceed $1,000,000, 
and 
‘‘(C) which, with respect to such calendar 
quarter, is not described in subclause (I) or (II) 
of paragraph (2)(A)(ii). 
‘‘(6) OTHER TERMS.—Any term used in this sec-
tion which is also used in this chapter or chapter 22 
shall have the same meaning as when used in such 
chapter. 
‘‘(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52,
455 
† HR 1319 EAS 
or subsection (m) or (o) of section 414, shall be treated as 
one employer for purposes of this section. 
‘‘(e) CERTAIN RULES TO APPLY.—For purposes of this 
section, rules similar to the rules of sections 51(i)(1) and 
280C(a) shall apply. 
‘‘(f) CERTAIN GOVERNMENTAL EMPLOYERS.— 
‘‘(1) IN GENERAL.—This credit shall not apply 
to the Government of the United States, the govern-
ment of any State or political subdivision thereof, or 
any agency or instrumentality of any of the fore-
going. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to— 
‘‘(A) any organization described in section 
501(c)(1) and exempt from tax under section 
501(a), or 
‘‘(B) any entity described in paragraph (1) 
if— 
‘‘(i) such entity is a college or univer-
sity, or 
‘‘(ii) the principal purpose or function 
of such entity is providing medical or hos-
pital care.
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† HR 1319 EAS 
In the case of any entity described in subpara-
graph (B), such entity shall be treated as satis-
fying the requirements of subsection (c)(2)(A)(i). 
‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES INTO 
ACCOUNT.—This section shall not apply to so much of the 
qualified wages paid by an eligible employer as such em-
ployer elects (at such time and in such manner as the Sec-
retary may prescribe) to not take into account for purposes 
of this section. 
‘‘(h) COORDINATION WITH CERTAIN PROGRAMS.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to so much of the qualified wages paid by an eligible 
employer as are taken into account as payroll costs 
in connection with— 
‘‘(A) a covered loan under section 7(a)(37) 
or 7A of the Small Business Act, 
‘‘(B) a grant under section 324 of the Eco-
nomic Aid to Hard-Hit Small Businesses, Non- 
Profits, and Venues Act, or 
‘‘(C) a restaurant revitalization grant 
under section 5003 of the American Rescue Plan 
Act of 2021. 
‘‘(2) APPLICATION WHERE PPP LOANS NOT FOR-
GIVEN.—The Secretary shall issue guidance providing 
that payroll costs paid during the covered period shall
457 
† HR 1319 EAS 
not fail to be treated as qualified wages under this 
section by reason of paragraph (1) to the extent 
that— 
‘‘(A) a covered loan of the taxpayer under 
section 7(a)(37) of the Small Business Act is not 
forgiven by reason of a decision under section 
7(a)(37)(J) of such Act, or 
‘‘(B) a covered loan of the taxpayer under 
section 7A of the Small Business Act is not for-
given by reason of a decision under section 7A(g) 
of such Act. 
Terms used in the preceding sentence which are also 
used in section 7A(g) or 7(a)(37)(J) of the Small 
Business Act shall, when applied in connection with 
either such section, have the same meaning as when 
used in such section, respectively. 
‘‘(i) THIRD PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit described in 
section 3511(d)(2). 
‘‘(j) ADVANCE PAYMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no advance payment of the credit under 
subsection (a) shall be allowed. 
‘‘(2) ADVANCE
PAYMENTS
TO
SMALL
EMPLOY-
ERS.—
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† HR 1319 EAS 
‘‘(A) IN GENERAL.—Under rules provided 
by the Secretary, an eligible employer for which 
the average number of full-time employees (with-
in the meaning of section 4980H) employed by 
such eligible employer during 2019 was not 
greater than 500 may elect for any calendar 
quarter to receive an advance payment of the 
credit under subsection (a) for such quarter in 
an amount not to exceed 70 percent of the aver-
age quarterly wages paid by the employer in cal-
endar year 2019. 
‘‘(B) SPECIAL
RULE
FOR
SEASONAL
EM-
PLOYERS.—In the case of any employer who em-
ploys seasonal workers (as defined in section 
45R(d)(5)(B)), the employer may elect to apply 
subparagraph (A) by substituting ‘the wages for 
the calendar quarter in 2019 which corresponds 
to the calendar quarter to which the election re-
lates’ for ‘the average quarterly wages paid by 
the employer in calendar year 2019’. 
‘‘(C) SPECIAL RULE FOR EMPLOYERS NOT 
IN EXISTENCE IN 2019.—In the case of any em-
ployer that was not in existence in 2019, sub-
paragraphs (A) and (B) shall each be applied by
459 
† HR 1319 EAS 
substituting ‘2020’ for ‘2019’ each place it ap-
pears. 
‘‘(3) RECONCILIATION OF CREDIT WITH ADVANCE 
PAYMENTS.— 
‘‘(A) IN GENERAL.—The amount of credit 
which would (but for this subsection) be allowed 
under this section shall be reduced (but not below 
zero) by the aggregate payment allowed to the 
taxpayer under paragraph (2). Any failure to so 
reduce the credit shall be treated as arising out 
of a mathematical or clerical error and assessed 
according to section 6213(b)(1). 
‘‘(B) EXCESS ADVANCE PAYMENTS.—If the 
advance payments to a taxpayer under para-
graph (2) for a calendar quarter exceed the cred-
it allowed by this section (determined without re-
gard to subparagraph (A)), the tax imposed 
under section 3111(b) or so much of the tax im-
posed under section 3221(a) as is attributable to 
the rate in effect under section 3111(b) (which-
ever is applicable) for the calendar quarter shall 
be increased by the amount of such excess. 
‘‘(k) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 for any failure to 
make a deposit of any applicable employment taxes if the
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† HR 1319 EAS 
Secretary determines that such failure was due to the rea-
sonable anticipation of the credit allowed under this section. 
‘‘(l) EXTENSION OF LIMITATION ON ASSESSMENT.— 
Notwithstanding section 6501, the limitation on the time 
period for the assessment of any amount attributable to a 
credit claimed under this section shall not expire before the 
date that is 5 years after the later of— 
‘‘(1) the date on which the original return which 
includes the calendar quarter with respect to which 
such credit is determined is filed, or 
‘‘(2) the date on which such return is treated as 
filed under section 6501(b)(2). 
‘‘(m) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and other 
guidance as are necessary— 
‘‘(1) to allow the advance payment of the credit 
under subsection (a) as provided in subsection (j)(2), 
subject to the limitations provided in this section, 
based on such information as the Secretary shall re-
quire, 
‘‘(2) with respect to the application of the credit 
under subsection (a) to third party payors (including 
professional employer organizations, certified profes-
sional employer organizations, or agents under sec-
tion 3504), including regulations or guidance allow-
461 
† HR 1319 EAS 
ing such payors to submit documentation necessary to 
substantiate the eligible employer status of employers 
that use such payors, and 
‘‘(3) to prevent the avoidance of the purposes of 
the limitations under this section, including through 
the leaseback of employees. 
Any forms, instructions, regulations, or other guidance de-
scribed in paragraph (2) shall require the customer to be 
responsible for the accounting of the credit and for any li-
ability for improperly claimed credits and shall require the 
certified professional employer organization or other third 
party payor to accurately report such tax credits based on 
the information provided by the customer. 
‘‘(n) APPLICATION.—This section shall only apply to 
wages paid after June 30, 2021, and before January 1, 
2022.’’. 
(b) REFUNDS.—Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting 
‘‘3134,’’ before ‘‘6428’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subchapter D of chapter 21 of subtitle C of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘Sec. 3134. Employee retention credit for employers subject to closure due to 
COVID–19.’’.
462 
† HR 1319 EAS 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to calendar quarters beginning after 
June 30, 2021. 
PART 7—PREMIUM TAX CREDIT 
SEC. 9661. IMPROVING AFFORDABILITY BY EXPANDING 
PREMIUM ASSISTANCE FOR CONSUMERS. 
(a) IN GENERAL.—Section 36B(b)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended by adding at the end 
the following new clause: 
‘‘(iii) TEMPORARY PERCENTAGES FOR 
2021 AND 2022.—In the case of a taxable 
year beginning in 2021 or 2022— 
‘‘(I) clause (ii) shall not apply for 
purposes of adjusting premium per-
centages under this subparagraph, and 
‘‘(II) the following table shall be 
applied in lieu of the table contained 
in clause (i): 
‘‘In the case of household 
income (expressed as 
a percent of poverty line) 
within the following income tier: 
The initial 
premium 
percentage is— 
The final 
premium 
percentage is— 
Up to 150.0 percent ............................................
0.0 
0.0
150.0 percent up to 200.0 percent .....................
0.0 
2.0
200.0 percent up to 250.0 percent .....................
2.0 
4.0
250.0 percent up to 300.0 percent .....................
4.0 
6.0
300.0 percent up to 400.0 percent .....................
6.0 
8.5
400.0 percent and higher ...................................
8.5 
8.5’’.
463 
† HR 1319 EAS 
(b) CONFORMING AMENDMENT.—Section 36B(c)(1) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(E) TEMPORARY
RULE
FOR 2021 AND 
2022.—In the case of a taxable year beginning 
in 2021 or 2022, subparagraph (A) shall be ap-
plied without regard to ‘but does not exceed 400 
percent’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 9662. TEMPORARY MODIFICATION OF LIMITATIONS ON 
RECONCILIATION OF TAX CREDITS FOR COV-
ERAGE UNDER A QUALIFIED HEALTH PLAN 
WITH ADVANCE PAYMENTS OF SUCH CREDIT. 
(a) IN GENERAL.—Section 36B(f)(2)(B) of the Inter-
nal Revenue Code of 1986 is amended by adding at the end 
the following new clause: 
‘‘(iii) TEMPORARY
MODIFICATION
OF 
LIMITATION ON INCREASE.—In the case of 
any taxable year beginning in 2020, for 
any taxpayer who files for such taxable year 
an income tax return reconciling any ad-
vance payment of the credit under this sec-
464 
† HR 1319 EAS 
tion, the Secretary shall treat subparagraph 
(A) as not applying.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2019. 
SEC. 9663. APPLICATION OF PREMIUM TAX CREDIT IN CASE 
OF 
INDIVIDUALS 
RECEIVING 
UNEMPLOY-
MENT COMPENSATION DURING 2021. 
(a) IN GENERAL.—Section 36B of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(g) as subsection (h) and by inserting after subsection (f) 
the following new subsection: 
‘‘(g) SPECIAL RULE FOR INDIVIDUALS WHO RECEIVE 
UNEMPLOYMENT COMPENSATION DURING 2021.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
in the case of a taxpayer who has received, or has 
been approved to receive, unemployment compensa-
tion for any week beginning during 2021, for the tax-
able year in which such week begins— 
‘‘(A) such taxpayer shall be treated as an 
applicable taxpayer, and 
‘‘(B) there shall not be taken into account 
any household income of the taxpayer in excess 
of 133 percent of the poverty line for a family 
of the size involved.
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† HR 1319 EAS 
‘‘(2) UNEMPLOYMENT COMPENSATION.—For pur-
poses of this subsection, the term ‘unemployment com-
pensation’ has the meaning given such term in section 
85(b). 
‘‘(3) EVIDENCE OF UNEMPLOYMENT COMPENSA-
TION.—For purposes of this subsection, a taxpayer 
shall not be treated as having received (or been ap-
proved to receive) unemployment compensation for 
any week unless such taxpayer provides self-attesta-
tion of, and such documentation as the Secretary 
shall prescribe which demonstrates, such receipt or 
approval. 
‘‘(4) CLARIFICATION OF RULES REMAINING AP-
PLICABLE.— 
‘‘(A) JOINT RETURN REQUIREMENT.—Para-
graph (1)(A) shall not affect the application of 
subsection (c)(1)(C). 
‘‘(B) 
HOUSEHOLD
INCOME
AND 
AFFORDABILLITY.—Paragraph (1)(B) shall not 
apply to any determination of household income 
for purposes of paragraph (2)(C)(i)(II) or 
(4)(C)(ii) of subsection (c)’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020.
466 
† HR 1319 EAS 
PART 8—MISCELLANEOUS PROVISIONS 
SEC. 9671. REPEAL OF ELECTION TO ALLOCATE INTEREST, 
ETC. ON WORLDWIDE BASIS. 
(a) IN GENERAL.—Section 864 of the Internal Revenue 
Code of 1986 is amended by striking subsection (f). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2020. 
SEC. 9672. TAX TREATMENT OF TARGETED EIDL ADVANCES. 
For purposes of the Internal Revenue Code of 1986— 
(1) amounts received from the Administrator of 
the Small Business Administration in the form of a 
targeted EIDL advance under section 331 of the Eco-
nomic Aid to Hard-Hit Small Businesses, Nonprofits, 
and Venues Act (title III of division N of Public Law 
116–260) shall not be included in the gross income of 
the person that receives such amounts, 
(2) no deduction shall be denied, no tax attribute 
shall be reduced, and no basis increase shall be de-
nied, by reason of the exclusion from gross income 
provided by paragraph (1), and 
(3) in the case of a partnership or S corporation 
that receives such amounts— 
(A) any amount excluded from income by 
reason of paragraph (1) shall be treated as tax
467 
† HR 1319 EAS 
exempt income for purposes of sections 705 and 
1366 of the Internal Revenue Code of 1986, and 
(B) the Secretary of the Treasury (or the 
Secretary’s delegate) shall prescribe rules for de-
termining a partner’s distributive share of any 
amount described in subparagraph (A) for pur-
poses of section 705 of the Internal Revenue Code 
of 1986. 
SEC. 9673. TAX TREATMENT OF RESTAURANT REVITALIZA-
TION GRANTS. 
For purposes of the Internal Revenue Code of 1986— 
(1) amounts received from the Administrator of 
the Small Business Administration in the form of a 
restaurant revitalization grant under section 5003 
shall not be included in the gross income of the person 
that receives such amounts, 
(2) no deduction shall be denied, no tax attribute 
shall be reduced, and no basis increase shall be de-
nied, by reason of the exclusion from gross income 
provided by paragraph (1), and 
(3) in the case of a partnership or S corporation 
that receives such amounts— 
(A) except as otherwise provided by the Sec-
retary of the Treasury (or the Secretary’s dele-
gate), any amount excluded from income by rea-
468 
† HR 1319 EAS 
son of paragraph (1) shall be treated as tax ex-
empt income for purposes of sections 705 and 
1366 of the Internal Revenue Code of 1986, and 
(B) the Secretary of the Treasury (or the 
Secretary’s delegate) shall prescribe rules for de-
termining a partner’s distributive share of any 
amount described in subparagraph (A) for pur-
poses of section 705 of the Internal Revenue Code 
of 1986. 
SEC. 9674. MODIFICATION OF EXCEPTIONS FOR REPORTING 
OF THIRD PARTY NETWORK TRANSACTIONS. 
(a) IN GENERAL.—Section 6050W(e) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(e) DE MINIMIS EXCEPTION FOR THIRD PARTY SET-
TLEMENT ORGANIZATIONS.—A third party settlement orga-
nization shall not be required to report any information 
under subsection (a) with respect to third party network 
transactions of any participating payee if the amount 
which would otherwise be reported under subsection (a)(2) 
with respect to such transactions does not exceed $600.’’. 
(b) CLARIFICATION THAT REPORTING IS NOT RE-
QUIRED ON TRANSACTIONS WHICH ARE NOT FOR GOODS 
OR SERVICES.—Section 6050W(c)(3) of such Code is 
amended 
by 
inserting 
‘‘described 
in 
subsection 
(d)(3)(A)(iii)’’ after ‘‘any transaction’’.
469 
† HR 1319 EAS 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by sub-
section (a) shall apply to returns for calendar years 
beginning after December 31, 2021. 
(2) CLARIFICATION.—The amendment made by 
subsection (b) shall apply to transactions after the 
date of the enactment of this Act. 
SEC. 9675. MODIFICATION OF TREATMENT OF STUDENT 
LOAN FORGIVENESS. 
(a) IN GENERAL.—Section 108(f) of the Internal Rev-
enue Code of 1986 is amended by striking paragraph (5) 
and inserting the following: 
‘‘(5) SPECIAL RULE FOR DISCHARGES IN 2021 
THROUGH 2025.—Gross income does not include any 
amount which (but for this subsection) would be in-
cludible in gross income by reason of the discharge (in 
whole or in part) after December 31, 2020, and before 
January 1, 2026, of— 
‘‘(A) any loan provided expressly for post-
secondary educational expenses, regardless of 
whether provided through the educational insti-
tution or directly to the borrower, if such loan 
was made, insured, or guaranteed by— 
‘‘(i) the United States, or an instru-
mentality or agency thereof,
470 
† HR 1319 EAS 
‘‘(ii) a State, territory, or possession of 
the United States, or the District of Colum-
bia, or any political subdivision thereof, or 
‘‘(iii) an eligible educational institu-
tion (as defined in section 25A), 
‘‘(B) any private education loan (as defined 
in section 140(a)(7) of the Truth in Lending 
Act), 
‘‘(C) any loan made by any educational or-
ganization described in section 170(b)(1)(A)(ii) 
if such loan is made— 
‘‘(i) pursuant to an agreement with 
any entity described in subparagraph (A) 
or any private education lender (as defined 
in section 140(a) of the Truth in Lending 
Act) under which the funds from which the 
loan was made were provided to such edu-
cational organization, or 
‘‘(ii) pursuant to a program of such 
educational organization which is designed 
to encourage its students to serve in occupa-
tions with unmet needs or in areas with 
unmet needs and under which the services 
provided by the students (or former stu-
dents) are for or under the direction of a
471 
† HR 1319 EAS 
governmental unit or an organization de-
scribed in section 501(c)(3) and exempt 
from tax under section 501(a), or 
‘‘(D) any loan made by an educational or-
ganization described in section 170(b)(1)(A)(ii) 
or by an organization exempt from tax under 
section 501(a) to refinance a loan to an indi-
vidual to assist the individual in attending any 
such educational organization but only if the re-
financing loan is pursuant to a program of the 
refinancing organization which is designed as 
described in subparagraph (C)(ii). 
The preceding sentence shall not apply to the dis-
charge of a loan made by an organization described 
in subparagraph (C) or made by a private education 
lender (as defined in section 140(a)(7) of the Truth 
in Lending Act) if the discharge is on account of serv-
ices performed for either such organization or for such 
private education lender.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to discharges of loans after December 
31, 2020.
472 
† HR 1319 EAS 
Subtitle H—Pensions 
SEC. 9701. TEMPORARY DELAY OF DESIGNATION OF MULTI-
EMPLOYER PLANS AS IN ENDANGERED, CRIT-
ICAL, OR CRITICAL AND DECLINING STATUS. 
(a) IN GENERAL.—Notwithstanding the actuarial cer-
tification under section 305(b)(3) of the Employee Retire-
ment Income Security Act of 1974 and section 432(b)(3) 
of the Internal Revenue Code of 1986, if a plan sponsor 
of a multiemployer plan elects the application of this sec-
tion, then, for purposes of section 305 of such Act and sec-
tion 432 of such Code— 
(1) the status of the plan for its first plan year 
beginning during the period beginning on March 1, 
2020, and ending on February 28, 2021, or the next 
succeeding plan year (as designated by the plan spon-
sor in such election), shall be the same as the status 
of such plan under such sections for the plan year 
preceding such designated plan year, and 
(2) in the case of a plan which was in endan-
gered or critical status for the plan year preceding the 
designated plan year described in paragraph (1), the 
plan shall not be required to update its plan or sched-
ules under section 305(c)(6) of such Act and section 
432(c)(6) of such Code, or section 305(e)(3)(B) of such 
Act and section 432(e)(3)(B) of such Code, whichever
473 
† HR 1319 EAS 
is applicable, until the plan year following the des-
ignated plan year described in paragraph (1). 
(b) EXCEPTION FOR PLANS BECOMING CRITICAL DUR-
ING ELECTION.—If— 
(1) an election was made under subsection (a) 
with respect to a multiemployer plan, and 
(2) such plan has, without regard to such elec-
tion, been certified by the plan actuary under section 
305(b)(3) of the Employee Retirement Income Secu-
rity Act of 1974 and section 432(b)(3) of the Internal 
Revenue Code of 1986 to be in critical status for the 
designated plan year described in subsection (a)(1), 
then such plan shall be treated as a plan in critical 
status for such plan year for purposes of applying 
section 4971(g)(1)(A) of such Code, section 302(b)(3) 
of such Act (without regard to the second sentence 
thereof), and section 412(b)(3) of such Code (without 
regard to the second sentence thereof). 
(c) ELECTION AND NOTICE.— 
(1) ELECTION.—An election under subsection 
(a)— 
(A) shall be made at such time and in such 
manner as the Secretary of the Treasury or the 
Secretary’s delegate may prescribe and, once
474 
† HR 1319 EAS 
made, may be revoked only with the consent of 
the Secretary, and 
(B) if made— 
(i) before the date the annual certifi-
cation is submitted to the Secretary or the 
Secretary’s delegate under section 305(b)(3) 
of such Act and section 432(b)(3) of such 
Code, shall be included with such annual 
certification, and 
(ii) after such date, shall be submitted 
to the Secretary or the Secretary’s delegate 
not later than 30 days after the date of the 
election. 
(2) NOTICE TO PARTICIPANTS.— 
(A) IN GENERAL.—Notwithstanding section 
305(b)(3)(D) of the Employee Retirement Income 
Security Act of 1974 and section 432(b)(3)(D) of 
the Internal Revenue Code of 1986, if, by reason 
of an election made under subsection (a), the 
plan is in neither endangered nor critical sta-
tus— 
(i) the plan sponsor of a multiem-
ployer plan shall not be required to provide 
notice under such sections, and
475 
† HR 1319 EAS 
(ii) the plan sponsor shall provide to 
the participants and beneficiaries, the bar-
gaining parties, the Pension Benefit Guar-
anty Corporation, and the Secretary of 
Labor a notice of the election under sub-
section (a) and such other information as 
the Secretary of the Treasury (in consulta-
tion with the Secretary of Labor) may re-
quire— 
(I) if the election is made before 
the date the annual certification is 
submitted to the Secretary or the Sec-
retary’s 
delegate 
under 
section 
305(b)(3) of such Act and section 
432(b)(3) of such Code, not later than 
30 days after the date of the certifi-
cation, and 
(II) if the election is made after 
such date, not later than 30 days after 
the date of the election. 
(B) NOTICE
OF
ENDANGERED
STATUS.— 
Notwithstanding section 305(b)(3)(D) of such Act 
and section 432(b)(3)(D) of such Code, if the 
plan is certified to be in critical status for any 
plan year but is in endangered status by reason
476 
† HR 1319 EAS 
of an election made under subsection (a), the no-
tice provided under such sections shall be the no-
tice which would have been provided if the plan 
had been certified to be in endangered status. 
SEC. 9702. TEMPORARY EXTENSION OF THE FUNDING IM-
PROVEMENT AND REHABILITATION PERIODS 
FOR MULTIEMPLOYER PENSION PLANS IN 
CRITICAL AND ENDANGERED STATUS FOR 
2020 OR 2021. 
(a) IN GENERAL.—If the plan sponsor of a multiem-
ployer plan which is in endangered or critical status for 
a plan year beginning in 2020 or 2021 (determined after 
application of section 9701) elects the application of this 
section, then, for purposes of section 305 of the Employee 
Retirement Income Security Act of 1974 and section 432 
of the Internal Revenue Code of 1986, the plan’s funding 
improvement period or rehabilitation period, whichever is 
applicable, shall be extended by 5 years. 
(b) DEFINITIONS AND SPECIAL RULES.—For purposes 
of this section— 
(1) ELECTION.—An election under this section 
shall be made at such time, and in such manner and 
form, as (in consultation with the Secretary of Labor) 
the Secretary of the Treasury or the Secretary’s dele-
gate may prescribe.
477 
† HR 1319 EAS 
(2) DEFINITIONS.—Any term which is used in 
this section which is also used in section 305 of the 
Employee Retirement Income Security Act of 1974 
and section 432 of the Internal Revenue Code of 1986 
shall have the same meaning as when used in such 
sections. 
(c) EFFECTIVE DATE.—This section shall apply to 
plan years beginning after December 31, 2019. 
SEC. 9703. ADJUSTMENTS TO FUNDING STANDARD AC-
COUNT RULES. 
(a) ADJUSTMENTS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.—Section 304(b)(8) of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1084(b)) is amended by adding at 
the end the following new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A multi-
employer plan with respect to which the solvency 
test under subparagraph (C) is met as of Feb-
ruary 29, 2020, may elect to apply this para-
graph (without regard to whether such plan pre-
viously elected the application of this para-
graph)— 
‘‘(i) by substituting ‘February 29, 
2020’ for ‘August 31, 2008’ each place it
478 
† HR 1319 EAS 
appears in subparagraphs (A)(i), (B)(i)(I), 
and (B)(i)(II), 
‘‘(ii) by inserting ‘and other losses re-
lated 
to 
the 
virus 
SARS–CoV–2 
or 
coronavirus disease 2019 (COVID–19) (in-
cluding experience losses related to reduc-
tions in contributions, reductions in em-
ployment, and deviations from anticipated 
retirement rates, as determined by the plan 
sponsor)’ after ‘net investment losses’ in 
subparagraph (A)(i), and 
‘‘(iii) by substituting ‘this subpara-
graph or subparagraph (A)’ for ‘this sub-
paragraph and subparagraph (A) both’ in 
subparagraph (B)(iii). 
The preceding sentence shall not apply to a plan 
to which special financial assistance is granted 
under section 4262. For purposes of the applica-
tion of this subparagraph, the Secretary of the 
Treasury shall rely on the plan sponsor’s cal-
culations of plan losses unless such calculations 
are clearly erroneous.’’. 
(2) AMENDMENT TO INTERNAL REVENUE CODE 
OF 1986.—Section 431(b)(8) of the Internal Revenue
479 
† HR 1319 EAS 
Code of 1986 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) RELIEF FOR 2020 AND 2021.—A multi-
employer plan with respect to which the solvency 
test under subparagraph (C) is met as of Feb-
ruary 29, 2020, may elect to apply this para-
graph (without regard to whether such plan pre-
viously elected the application of this para-
graph)— 
‘‘(i) by substituting ‘February 29, 
2020’ for ‘August 31, 2008’ each place it 
appears in subparagraphs (A)(i), (B)(i)(I), 
and (B)(i)(II), 
‘‘(ii) by inserting ‘and other losses re-
lated 
to 
the 
virus 
SARS–CoV–2 
or 
coronavirus disease 2019 (COVID–19) (in-
cluding experience losses related to reduc-
tions in contributions, reductions in em-
ployment, and deviations from anticipated 
retirement rates, as determined by the plan 
sponsor)’ after ‘net investment losses’ in 
subparagraph (A)(i), and 
‘‘(iii) by substituting ‘this subpara-
graph or subparagraph (A)’ for ‘this sub-
480 
† HR 1319 EAS 
paragraph and subparagraph (A) both’ in 
subparagraph (B)(iii). 
The preceding sentence shall not apply to a plan 
to which special financial assistance is granted 
under section 4262 of the Employee Retirement 
Income Security Act of 1974. For purposes of the 
application of this subparagraph, the Secretary 
shall rely on the plan sponsor’s calculations of 
plan losses unless such calculations are clearly 
erroneous.’’. 
(b) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect as of the first day of the 
first plan year ending on or after February 29, 2020, 
except that any election a plan makes pursuant to 
this section that affects the plan’s funding standard 
account for the first plan year beginning after Feb-
ruary 29, 2020, shall be disregarded for purposes of 
applying the provisions of section 305 of the Em-
ployee Retirement Income Security Act of 1974 and 
section 432 of the Internal Revenue Code of 1986 to 
such plan year. 
(2) RESTRICTIONS
ON
BENEFIT
INCREASES.— 
Notwithstanding paragraph (1), the restrictions on 
plan amendments increasing benefits in sections
481 
† HR 1319 EAS 
304(b)(8)(D) of such Act and 431(b)(8)(D) of such 
Code, as applied by the amendments made by this 
section, shall take effect on the date of enactment of 
this Act. 
SEC. 9704. SPECIAL FINANCIAL ASSISTANCE PROGRAM FOR 
FINANCIALLY 
TROUBLED 
MULTIEMPLOYER 
PLANS. 
(a) APPROPRIATION.—Section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1305) 
is amended by adding at the end the following: 
‘‘(i)(1) An eighth fund shall be established for special 
financial assistance to multiemployer pension plans, as 
provided under section 4262, and to pay for necessary ad-
ministrative and operating expenses of the corporation re-
lating to such assistance. 
‘‘(2) There is appropriated from the general fund such 
amounts as are necessary for the costs of providing finan-
cial assistance under section 4262 and necessary adminis-
trative and operating expenses of the corporation. The 
eighth fund established under this subsection shall be cred-
ited with amounts from time to time as the Secretary of 
the Treasury, in conjunction with the Director of the Pen-
sion Benefit Guaranty Corporation, determines appro-
priate, from the general fund of the Treasury, but in no 
case shall such transfers occur after September 30, 2030.’’.
482 
† HR 1319 EAS 
(b) FINANCIAL ASSISTANCE AUTHORITY.—The Em-
ployee Retirement Income Security Act of 1974 is amended 
by inserting after section 4261 of such Act (29 U.S.C. 1431) 
the following: 
‘‘SEC. 4262. SPECIAL FINANCIAL ASSISTANCE BY THE COR-
PORATION. 
‘‘(a) SPECIAL FINANCIAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—The corporation shall pro-
vide special financial assistance to an eligible multi-
employer plan under this section, upon the applica-
tion of a plan sponsor of such a plan for such assist-
ance. 
‘‘(2) INAPPLICABILITY OF CERTAIN REPAYMENT 
OBLIGATION.—A plan receiving special financial as-
sistance pursuant to this section shall not be subject 
to repayment obligations with respect to such special 
financial assistance. 
‘‘(b) ELIGIBLE MULTIEMPLOYER PLANS.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
a multiemployer plan is an eligible multiemployer 
plan if— 
‘‘(A) the plan is in critical and declining 
status (within the meaning of section 305(b)(6)) 
in any plan year beginning in 2020 through 
2022;
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† HR 1319 EAS 
‘‘(B) a suspension of benefits has been ap-
proved with respect to the plan under section 
305(e)(9) as of the date of the enactment of this 
section; 
‘‘(C) in any plan year beginning in 2020 
through 2022, the plan is certified by the plan 
actuary to be in critical status (within the 
meaning of section 305(b)(2)), has a modified 
funded percentage of less than 40 percent, and 
has a ratio of active to inactive participants 
which is less than 2 to 3; or 
‘‘(D) the plan became insolvent for purposes 
of section 418E of the Internal Revenue Code of 
1986 after December 16, 2014, and has remained 
so insolvent and has not been terminated as of 
the date of enactment of this section. 
‘‘(2) MODIFIED
FUNDED
PERCENTAGE.—For 
purposes of paragraph (1)(C), the term ‘modified 
funded percentage’ means the percentage equal to a 
fraction the numerator of which is current value of 
plan assets (as defined in section 3(26) of such Act) 
and the denominator of which is current liabilities 
(as defined in section 431(c)(6)(D) of such Code and 
section 304(c)(6)(D) of such Act).
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† HR 1319 EAS 
‘‘(c) APPLICATIONS FOR SPECIAL FINANCIAL ASSIST-
ANCE.—Within 120 days of the date of enactment of this 
section, the corporation shall issue regulations or guidance 
setting forth requirements for special financial assistance 
applications under this section. In such regulations or guid-
ance, the corporation shall— 
‘‘(1) limit the materials required for a special fi-
nancial assistance application to the minimum nec-
essary to make a determination on the application; 
‘‘(2) specify effective dates for transfers of special 
financial assistance following approval of an applica-
tion, based on the effective date of the supporting ac-
tuarial analysis and the date on which the applica-
tion is submitted; and 
‘‘(3) provide for an alternate application for spe-
cial financial assistance under this section, which 
may be used by a plan that has been approved for a 
partition under section 4233 before the date of enact-
ment of this section. 
‘‘(d) TEMPORARY PRIORITY CONSIDERATION OF AP-
PLICATIONS.— 
‘‘(1) IN GENERAL.—The corporation may specify 
in regulations or guidance under subsection (c) that, 
during a period no longer than the first 2 years fol-
lowing the date of enactment of this section, applica-
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† HR 1319 EAS 
tions may not be filed by an eligible multiemployer 
plan unless— 
‘‘(A) the eligible multiemployer plan is in-
solvent or is likely to become insolvent within 5 
years of the date of enactment of this section; 
‘‘(B) the corporation projects the eligible 
multiemployer plan to have a present value of fi-
nancial assistance payments under section 4261 
that exceeds $1,000,000,000 if the special finan-
cial assistance is not ordered; 
‘‘(C) the eligible multiemployer plan has 
implemented benefit suspensions under section 
305(e)(9) as of the date of the enactment of this 
section; or 
‘‘(D) the corporation determines it appro-
priate based on other similar circumstances. 
‘‘(e) ACTUARIAL ASSUMPTIONS.— 
‘‘(1) ELIGIBILITY.—For purposes of determining 
eligibility for special financial assistance, the cor-
poration shall accept assumptions incorporated in a 
multiemployer plan’s determination that it is in crit-
ical status or critical and declining status (within the 
meaning of section 305(b)) for certifications of plan 
status completed before January 1, 2021, unless such 
assumptions are clearly erroneous. For certifications
486 
† HR 1319 EAS 
of plan status completed after December 31, 2020, a 
plan shall determine whether it is in critical or crit-
ical and declining status for purposes of eligibility for 
special financial assistance by using the assumptions 
that the plan used in its most recently completed cer-
tification of plan status before January 1, 2021, un-
less such assumptions (excluding the plan’s interest 
rate) are unreasonable. 
‘‘(2) AMOUNT
OF
FINANCIAL
ASSISTANCE.—In 
determining the amount of special financial assist-
ance in its application, an eligible multiemployer 
plan shall— 
‘‘(A) use the interest rate used by the plan 
in its most recently completed certification of 
plan status before January 1, 2021, provided 
that such interest rate may not exceed the inter-
est rate limit; and 
‘‘(B) for other assumptions, use the assump-
tions that the plan used in its most recently 
completed certification of plan status before Jan-
uary 1, 2021, unless such assumptions are un-
reasonable. 
‘‘(3) INTEREST RATE LIMIT.—The interest rate 
limit for purposes of this subsection is the rate speci-
fied in section 303(h)(2)(C)(iii) (disregarding modi-
487 
† HR 1319 EAS 
fications made under clause (iv) of such section) for 
the month in which the application for special finan-
cial assistance is filed by the eligible multiemployer 
plan or the 3 preceding months, with such specified 
rate increased by 200 basis points. 
‘‘(4) CHANGES IN ASSUMPTIONS.—If a plan de-
termines that use of one or more prior assumptions 
is unreasonable, the plan may propose in its applica-
tion to change such assumptions, provided that the 
plan discloses such changes in its application and de-
scribes why such assumptions are no longer reason-
able. The corporation shall accept such changed as-
sumptions unless it determines the changes are unrea-
sonable, individually or in the aggregate. The plan 
may not propose a change to the interest rate other-
wise required under this subsection for eligibility or 
financial assistance amount. 
‘‘(f) APPLICATION DEADLINE.—Any application by a 
plan for special financial assistance under this section shall 
be submitted to the corporation (and, in the case of a plan 
to which section 432(k)(1)(D) of the Internal Revenue Code 
of 1986 applies, to the Secretary of the Treasury) no later 
than December 31, 2025, and any revised application for 
special financial assistance shall be submitted no later than 
December 31, 2026.
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† HR 1319 EAS 
‘‘(g) DETERMINATIONS ON APPLICATIONS.—A plan’s 
application for special financial assistance under this sec-
tion that is timely filed in accordance with the regulations 
or guidance issued under subsection (c) shall be deemed ap-
proved unless the corporation notifies the plan within 120 
days of the filing of the application that the application 
is incomplete, any proposed change or assumption is unrea-
sonable, or the plan is not eligible under this section. Such 
notice shall specify the reasons the plan is ineligible for spe-
cial financial assistance, any proposed change or assump-
tion is unreasonable, or information is needed to complete 
the application. If a plan is denied assistance under this 
subsection, the plan may submit a revised application 
under this section. Any revised application for special fi-
nancial assistance submitted by a plan shall be deemed ap-
proved unless the corporation notifies the plan within 120 
days of the filing of the revised application that the applica-
tion is incomplete, any proposed change or assumption is 
unreasonable, or the plan is not eligible under this section. 
Special financial assistance issued by the corporation shall 
be effective on a date determined by the corporation, but 
no later than 1 year after a plan’s special financial assist-
ance application is approved by the corporation or deemed 
approved. The corporation shall not pay any special finan-
cial assistance after September 30, 2030.
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† HR 1319 EAS 
‘‘(h) MANNER OF PAYMENT.—The payment made by 
the corporation to an eligible multiemployer plan under 
this section shall be made as a single, lump sum payment. 
‘‘(i) AMOUNT AND MANNER OF SPECIAL FINANCIAL 
ASSISTANCE.— 
‘‘(1) IN GENERAL.—Special financial assistance 
under this section shall be a transfer of funds in the 
amount necessary as demonstrated by the plan spon-
sor on the application for such special financial as-
sistance, in accordance with the requirements de-
scribed in subsection (j). Special financial assistance 
shall be paid to such plan as soon as practicable upon 
approval of the application by the corporation. 
‘‘(2) NO
CAP.—Special financial assistance 
granted by the corporation under this section shall 
not be capped by the guarantee under 4022A. 
‘‘(j) DETERMINATION OF AMOUNT OF SPECIAL FINAN-
CIAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—The amount of financial as-
sistance provided to a multiemployer plan eligible for 
financial assistance under this section shall be such 
amount required for the plan to pay all benefits due 
during the period beginning on the date of payment 
of the special financial assistance payment under this 
section and ending on the last day of the plan year
490 
† HR 1319 EAS 
ending in 2051, with no reduction in a participant’s 
or beneficiary’s accrued benefit as of the date of enact-
ment of this section, except to the extent of a reduc-
tion in accordance with section 305(e)(8) adopted 
prior to the plan’s application for special financial 
assistance under this section, and taking into account 
the reinstatement of benefits required under subsection 
(k). 
‘‘(2) PROJECTIONS.—The funding projections for 
purposes of this section shall be performed on a deter-
ministic basis. 
‘‘(k) REINSTATEMENT OF SUSPENDED BENEFITS.— 
The Secretary, in coordination with the Secretary of the 
Treasury, shall ensure that an eligible multiemployer plan 
that receives special financial assistance under this sec-
tion— 
‘‘(1) reinstates any benefits that were suspended 
under section 305(e)(9) or section 4245(a) in accord-
ance with guidance issued by the Secretary of the 
Treasury pursuant to section 432(k)(1)(B) of the In-
ternal Revenue Code of 1986, effective as of the first 
month in which the effective date for the special fi-
nancial assistance occurs, for participants and bene-
ficiaries as of such month; and
491 
† HR 1319 EAS 
‘‘(2) provides payments equal to the amount of 
benefits previously suspended under section 305(e)(9) 
or 4245(a) to any participants or beneficiaries in pay 
status as of the effective date of the special financial 
assistance, payable, as determined by the eligible mul-
tiemployer plan— 
‘‘(A) as a lump sum within 3 months of 
such effective date; or 
‘‘(B) in equal monthly installments over a 
period of 5 years, commencing within 3 months 
of such effective date, with no adjustment for in-
terest. 
‘‘(l) RESTRICTIONS ON THE USE OF SPECIAL FINAN-
CIAL ASSISTANCE.—Special financial assistance received 
under this section and any earnings thereon may be used 
by an eligible multiemployer plan to make benefit payments 
and pay plan expenses. Special financial assistance and 
any earnings on such assistance shall be segregated from 
other plan assets. Special financial assistance shall be in-
vested by plans in investment-grade bonds or other invest-
ments as permitted by the corporation. 
‘‘(m) CONDITIONS ON PLANS RECEIVING SPECIAL FI-
NANCIAL ASSISTANCE.— 
‘‘(1) IN
GENERAL.—The corporation, in con-
sultation with the Secretary of the Treasury, may im-
492 
† HR 1319 EAS 
pose, by regulation or other guidance, reasonable con-
ditions on an eligible multiemployer plan that re-
ceives special financial assistance relating to in-
creases in future accrual rates and any retroactive 
benefit improvements, allocation of plan assets, reduc-
tions in employer contribution rates, diversion of con-
tributions to, and allocation of expenses to, other ben-
efit plans, and withdrawal liability. 
‘‘(2) LIMITATION.—The corporation shall not im-
pose conditions on an eligible multiemployer plan as 
a condition of, or following receipt of, special finan-
cial assistance under this section relating to— 
‘‘(A) any prospective reduction in plan ben-
efits (including benefits that may be adjusted 
pursuant to section 305(e)(8)); 
‘‘(B) plan governance, including selection 
of, removal of, and terms of contracts with, trust-
ees, actuaries, investment managers, and other 
service providers; or 
‘‘(C) any funding rules relating to the plan 
receiving special financial assistance under this 
section. 
‘‘(3) PAYMENT OF PREMIUMS.—An eligible mul-
tiemployer plan receiving special financial assistance 
under this section shall continue to pay all premiums
493 
† HR 1319 EAS 
due under section 4007 for participants and bene-
ficiaries in the plan. 
‘‘(4) ASSISTANCE NOT CONSIDERED FOR CERTAIN 
PURPOSES.—An eligible multiemployer plan that re-
ceives special financial assistance shall be deemed to 
be in critical status within the meaning of section 
305(b)(2) until the last plan year ending in 2051. 
‘‘(5) INSOLVENT PLANS.—An eligible multiem-
ployer plan receiving special financial assistance 
under this section that subsequently becomes insolvent 
will be subject to the current rules and guarantee for 
insolvent plans. 
‘‘(6) INELIGIBILITY FOR OTHER ASSISTANCE.— 
An eligible multiemployer plan that receives special 
financial assistance under this section is not eligible 
to apply for a new suspension of benefits under sec-
tion 305(e)(9)(G). 
‘‘(n) COORDINATION
WITH
SECRETARY
OF
THE 
TREASURY.—In prescribing the application process for eli-
gible multiemployer plans to receive special financial as-
sistance under this section and reviewing applications of 
such plans, the corporation shall coordinate with the Sec-
retary of the Treasury in the following manner: 
‘‘(1) In the case of a plan which has suspended 
benefits under section 305(e)(9)—
494 
† HR 1319 EAS 
‘‘(A) in determining whether to approve the 
application, the corporation shall consult with 
the Secretary of the Treasury regarding the 
plan’s proposed method of reinstating benefits, as 
described in the plan’s application and in ac-
cordance with guidance issued by the Secretary 
of the Treasury, and 
‘‘(B) the corporation shall consult with the 
Secretary of the Treasury regarding the amount 
of special financial assistance needed based on 
the projected funded status of the plan as of the 
last day of the plan year ending in 2051, wheth-
er the plan proposes to repay benefits over 5 
years or as a lump sum, as required by sub-
section (k)(2), and any other relevant factors, as 
determined by the corporation in consultation 
with the Secretary of the Treasury, to ensure the 
amount of assistance is sufficient to meet such 
requirement and is sufficient to pay benefits as 
required in subsection (j)(1). 
‘‘(2) In the case of any plan which proposes in 
its application to change the assumptions used, as 
provided in subsection (e)(4), the corporation shall 
consult with the Secretary of the Treasury regarding 
such proposed change in assumptions.
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† HR 1319 EAS 
‘‘(3) If the corporation specifies in regulations or 
guidance that temporary priority consideration is 
available for plans which are insolvent within the 
meaning of section 418E of the Internal Revenue 
Code of 1986 or likely to become so insolvent or for 
plans which have suspended benefits under section 
305(e)(9), or that availability is otherwise based on 
the funded status of the plan under section 305, as 
permitted by subsection (d), the corporation shall con-
sult with the Secretary of the Treasury regarding any 
granting of priority consideration to such plans.’’. 
(c) PREMIUM RATE INCREASE.—Section 4006(a)(3) of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)(3)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (vi)— 
(i) by inserting ‘‘, and before January 
1, 2031’’ after ‘‘December 31, 2014,’’; and 
(ii) by striking ‘‘or’’ at the end; 
(B) in clause (vii)— 
(i) by moving the margin 2 ems to the 
left; and 
(ii) in subclause (II), by striking the 
period and inserting ‘‘, or’’; and 
(C) by adding at the end the following:
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† HR 1319 EAS 
‘‘(viii) in the case of a multiemployer plan, for 
plan years beginning after December 31, 2030, $52 
for each individual who is a participant in such plan 
during the applicable plan year.’’; and 
(2) by adding at the end the following: 
‘‘(N) For each plan year beginning in a calendar year 
after 2031, there shall be substituted for the dollar amount 
specified in clause (viii) of subparagraph (A) an amount 
equal to the greater of— 
‘‘(i) the product derived by multiplying such dol-
lar amount by the ratio of— 
‘‘(I) the national average wage index (as de-
fined in section 209(k)(1) of the Social Security 
Act) for the first of the 2 calendar years pre-
ceding the calendar year in which such plan 
year begins, to 
‘‘(II) the national average wage index (as so 
defined) for 2029; and 
‘‘(ii) such dollar amount for plan years begin-
ning in the preceding calendar year. 
If the amount determined under this subparagraph is 
not a multiple of $1, such product shall be rounded 
to the nearest multiple of $1.’’. 
(d) AMENDMENTS TO INTERNAL REVENUE CODE OF 
1986.—
497 
† HR 1319 EAS 
(1) IN GENERAL.—Section 432(a) of the Internal 
Revenue Code of 1986 is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (2)(B), 
(B) by striking the period at the end of 
paragraph (3)(B) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) if the plan is an eligible multiemployer 
plan which is applying for or receiving special finan-
cial assistance under section 4262 of the Employee 
Retirement Income Security Act of 1974, the require-
ments of subsection (k) shall apply to the plan.’’. 
(2) PLANS RECEIVING SPECIAL FINANCIAL AS-
SISTANCE
TO
BE
IN
CRITICAL
STATUS.—Section 
432(b) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(7) PLANS RECEIVING SPECIAL FINANCIAL AS-
SISTANCE.—If an eligible multiemployer plan receiv-
ing special financial assistance under section 4262 of 
the Employee Retirement Income Security Act of 
1974 meets the requirements of subsection (k)(2), not-
withstanding the preceding paragraphs of this sub-
section, the plan shall be deemed to be in critical sta-
498 
† HR 1319 EAS 
tus for plan years beginning with the plan year in 
which the effective date for such assistance occurs and 
ending with the last plan year ending in 2051.’’. 
(3) RULES
RELATING
TO
ELIGIBLE
MULTIEM-
PLOYER PLANS.—Section 432 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) RULES RELATING TO ELIGIBLE MULTIEMPLOYER 
PLANS.— 
‘‘(1) PLANS APPLYING FOR SPECIAL FINANCIAL 
ASSISTANCE.—In the case of an eligible multiem-
ployer plan which applies for special financial assist-
ance under section 4262 of such Act— 
‘‘(A) IN GENERAL.—Such application shall 
be submitted in accordance with the require-
ments of such section, including any guidance 
issued thereunder by the Pension Benefit Guar-
anty Corporation. 
‘‘(B) REINSTATEMENT OF SUSPENDED BEN-
EFITS.—In the case of a plan for which a sus-
pension of benefits has been approved under sub-
section (e)(9), the application shall describe the 
manner in which suspended benefits will be rein-
stated in accordance with paragraph (2)(A) and
499 
† HR 1319 EAS 
guidance issued by the Secretary if the plan re-
ceives special financial assistance. 
‘‘(C) AMOUNT OF FINANCIAL ASSISTANCE.— 
‘‘(i) IN GENERAL.—In determining the 
amount of special financial assistance to be 
specified in its application, an eligible mul-
tiemployer plan shall— 
‘‘(I) use the interest rate used by 
the plan in its most recently completed 
certification of plan status before Jan-
uary 1, 2021, provided that such inter-
est rate does not exceed the interest 
rate limit, and 
‘‘(II) for other assumptions, use 
the assumptions that the plan used in 
its most recently completed certifi-
cation of plan status before January 1, 
2021, unless such assumptions are un-
reasonable. 
‘‘(ii) INTEREST RATE LIMIT.—For pur-
poses of clause (i), the interest rate limit is 
the 
rate 
specified 
in 
section 
430(h)(2)(C)(iii) (disregarding modifica-
tions made under clause (iv) of such sec-
tion) for the month in which the applica-
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† HR 1319 EAS 
tion for special financial assistance is filed 
by the eligible multiemployer plan or the 3 
preceding months, with such specified rate 
increased by 200 basis points. 
‘‘(iii) CHANGES IN ASSUMPTIONS.—If 
a plan determines that use of one or more 
prior assumptions is unreasonable, the plan 
may propose in its application to change 
such assumptions, provided that the plan 
discloses such changes in its application 
and describes why such assumptions are no 
longer reasonable. The plan may not pro-
pose a change to the interest rate otherwise 
required under this subsection for eligibility 
or financial assistance amount. 
‘‘(D) PLANS APPLYING FOR PRIORITY CON-
SIDERATION.—In the case of a plan applying for 
special financial assistance under rules pro-
viding for temporary priority consideration, as 
provided in paragraph (4)(C), such plan’s appli-
cation shall be submitted to the Secretary in ad-
dition to the Pension Benefit Guaranty Corpora-
tion. 
‘‘(2) PLANS RECEIVING SPECIAL FINANCIAL AS-
SISTANCE.—In the case of an eligible multiemployer
501 
† HR 1319 EAS 
plan receiving special financial assistance under sec-
tion 4262 of the Employee Retirement Income Secu-
rity Act of 1974— 
‘‘(A) REINSTATEMENT OF SUSPENDED BEN-
EFITS.—The plan shall— 
‘‘(i) reinstate any benefits that were 
suspended under subsection (e)(9) or section 
4245(a) of the Employee Retirement Income 
Security Act of 1974, effective as of the first 
month in which the effective date for the 
special financial assistance occurs, for par-
ticipants and beneficiaries as of such 
month, and 
‘‘(ii) provide payments equal to the 
amount of benefits previously suspended to 
any participants or beneficiaries in pay 
status as of the effective date of the special 
financial assistance, payable, as determined 
by the plan— 
‘‘(I) as a lump sum within 3 
months of such effective date; or 
‘‘(II) in equal monthly install-
ments over a period of 5 years, com-
mencing within 3 months of such effec-
502 
† HR 1319 EAS 
tive date, with no adjustment for inter-
est. 
‘‘(B) RESTRICTIONS ON THE USE OF SPE-
CIAL FINANCIAL ASSISTANCE.—Special financial 
assistance received by the plan may be used to 
make benefit payments and pay plan expenses. 
Such assistance shall be segregated from other 
plan assets, and shall be invested by the plan in 
investment-grade bonds or other investments as 
permitted by regulations or other guidance 
issued by the Pension Benefit Guaranty Cor-
poration. 
‘‘(C) CONDITIONS
ON
PLANS
RECEIVING 
SPECIAL FINANCIAL ASSISTANCE.— 
‘‘(i) IN GENERAL.—The Pension Ben-
efit Guaranty Corporation, in consultation 
with the Secretary, may impose, by regula-
tion or other guidance, reasonable condi-
tions on an eligible multiemployer plan re-
ceiving special financial assistance relating 
to increases in future accrual rates and any 
retroactive benefit improvements, allocation 
of plan assets, reductions in employer con-
tribution rates, diversion of contributions
503 
† HR 1319 EAS 
and allocation of expenses to other benefit 
plans, and withdrawal liability. 
‘‘(ii) LIMITATION.—The Pension Ben-
efit Guaranty Corporation shall not impose 
conditions on an eligible multiemployer 
plan as a condition of, or following receipt 
of, special financial assistance relating to— 
‘‘(I) any prospective reduction in 
plan benefits (including benefits that 
may be adjusted pursuant to subsection 
(e)(8)), 
‘‘(II) plan governance, including 
selection of, removal of, and terms of 
contracts with, trustees, actuaries, in-
vestment managers, and other service 
providers, or 
‘‘(III) any funding rules relating 
to the plan. 
‘‘(D) ASSISTANCE DISREGARDED FOR CER-
TAIN PURPOSES.— 
‘‘(i) FUNDING STANDARDS.—Special fi-
nancial assistance received by the plan shall 
not be taken into account for determining 
contributions required under section 431.
504 
† HR 1319 EAS 
‘‘(ii) INSOLVENT PLANS.—If the plan 
becomes insolvent within the meaning of 
section 418E after receiving special finan-
cial assistance, the plan shall be subject to 
all rules applicable to insolvent plans. 
‘‘(E) INELIGIBILITY
FOR
SUSPENSION
OF 
BENEFITS.—The plan shall not be eligible to 
apply for a new suspension of benefits under 
subsection (e)(9)(G). 
‘‘(3) ELIGIBLE MULTIEMPLOYER PLAN.— 
‘‘(A) IN
GENERAL.—For purposes of this 
section, a multiemployer plan is an eligible mul-
tiemployer plan if— 
‘‘(i) the plan is in critical and declin-
ing status in any plan year beginning in 
2020 through 2022, 
‘‘(ii) a suspension of benefits has been 
approved with respect to the plan under 
subsection (e)(9) as of the date of the enact-
ment of this subsection; 
‘‘(iii) in any plan year beginning in 
2020 through 2022, the plan is certified by 
the plan actuary to be in critical status, has 
a modified funded percentage of less than 40 
percent, and has a ratio of active to inac-
505 
† HR 1319 EAS 
tive participants which is less than 2 to 3, 
or 
‘‘(iv) the plan became insolvent within 
the meaning of section 418E after December 
16, 2014, and has remained so insolvent 
and has not been terminated as of the date 
of enactment of this subsection. 
‘‘(B) MODIFIED
FUNDED
PERCENTAGE.— 
For purposes of subparagraph (A)(iii), the term 
‘modified funded percentage’ means the percent-
age equal to a fraction the numerator of which 
is current value of plan assets (as defined in sec-
tion 3(26) of the Employee Retirement Income 
Security Act of 1974) and the denominator of 
which is current liabilities (as defined in section 
431(c)(6)(D)). 
‘‘(4) COORDINATION
WITH
PENSION
BENEFIT 
GUARANTY CORPORATION.—In prescribing the appli-
cation process for eligible multiemployer plans to re-
ceive special financial assistance under section 4262 
of the Employee Retirement Income Security Act of 
1974 and reviewing applications of such plans, the 
Pension Benefit Guaranty Corporation shall coordi-
nate with the Secretary in the following manner:
506 
† HR 1319 EAS 
‘‘(A) In the case of a plan which has sus-
pended benefits under subsection (e)(9)— 
‘‘(i) in determining whether to approve 
the application, such corporation shall con-
sult with the Secretary regarding the plan’s 
proposed method of reinstating benefits, as 
described in the plan’s application and in 
accordance with guidance issued by the Sec-
retary, and 
‘‘(ii) such corporation shall consult 
with the Secretary regarding the amount of 
special financial assistance needed based on 
the projected funded status of the plan as of 
the last day of the plan year ending in 
2051, whether the plan proposes to repay 
benefits over 5 years or as a lump sum, as 
required by paragraph (2)(A)(ii), and any 
other relevant factors, as determined by 
such corporation in consultation with the 
Secretary, to ensure the amount of assist-
ance is sufficient to meet such requirement 
and is sufficient to pay benefits as required 
in section 4262(j)(1) of such Act. 
‘‘(B) In the case of any plan which proposes 
in its application to change the assumptions
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† HR 1319 EAS 
used, as provided in paragraph (1)(C)(iii), such 
corporation shall consult with the Secretary re-
garding such proposed change in assumptions. 
‘‘(C) If such corporation specifies in regula-
tions or guidance that temporary priority con-
sideration is available for plans which are insol-
vent within the meaning of section 418E or like-
ly to become so insolvent or for plans which have 
suspended benefits under subsection (e)(9), or 
that availability is otherwise based on the funded 
status of the plan under this section, as per-
mitted by section 4262(d) of such Act, such cor-
poration shall consult with the Secretary regard-
ing any granting of priority consideration to 
such plans.’’. 
SEC. 9705. EXTENDED AMORTIZATION FOR SINGLE EM-
PLOYER PLANS. 
(a) 15-YEAR AMORTIZATION UNDER THE INTERNAL 
REVENUE CODE OF 1986.—Section 430(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(8) 15-YEAR AMORTIZATION.—With respect to 
plan years beginning after December 31, 2021 (or, at 
the election of the plan sponsor, plan years beginning
509 
† HR 1319 EAS 
earlier date is elected pursuant to this para-
graph), and all shortfall amortization install-
ments determined with respect to such bases, 
shall be reduced to zero, and 
‘‘(B) subparagraphs (A) and (B) of para-
graph (2) shall each be applied by substituting 
‘15-plan-year period’ for ‘7-plan-year period’.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years beginning after December 
31, 2018. 
SEC. 9706. EXTENSION OF PENSION FUNDING STABILIZA-
TION PERCENTAGES FOR SINGLE EMPLOYER 
PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 430(h)(2)(C)(iv) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘If the calendar year is: 
The appli-
cable min-
imum per-
centage is: 
The appli-
cable max-
imum per-
centage is: 
Any year in the period starting in 2012 and ending 
in 2019 ........................................................................
90% 
110%
Any year in the period starting in 2020 and ending 
in 2025 ........................................................................
95% 
105%
2026 .................................................................................
90% 
110%
2027 .................................................................................
85% 
115%
2028 .................................................................................
80% 
120%
2029 .................................................................................
75% 
125%
After 2029 .......................................................................
70% 
130%.’’.
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† HR 1319 EAS 
(2) FLOOR
ON
25-YEAR
AVERAGES.—Subclause 
(I) of section 430(h)(2)(C)(iv) of such Code is amend-
ed by adding at the end the following: ‘‘Notwith-
standing anything in this subclause, if the average of 
the first, second, or third segment rate for any 25- 
year period is less than 5 percent, such average shall 
be deemed to be 5 percent.’’. 
(b) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.— 
(1) IN GENERAL.—The table contained in sub-
clause (II) of section 303(h)(2)(C)(iv) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1083(h)(2)(C)(iv)(II)) is amended to read as follows: 
‘‘If the calendar year is: 
The appli-
cable min-
imum per-
centage is: 
The appli-
cable max-
imum per-
centage is: 
Any year in the period starting in 2012 and ending 
in 2019 ........................................................................
90% 
110%
Any year in the period starting in 2020 and ending 
in 2025 ........................................................................
95% 
105%
2026 .................................................................................
90% 
110%
2027 .................................................................................
85% 
115%
2028 .................................................................................
80% 
120%
2029 .................................................................................
75% 
125%
After 2029 .......................................................................
70% 
130%.’’. 
(2) FLOOR
ON
25-YEAR
AVERAGES.—Subclause 
(I) of section 303(h)(2)(C)(iv) of such Act (29 U.S.C. 
1083(h)(2)(C)(iv)(I)) is amended by adding at the 
end the following: ‘‘Notwithstanding anything in this 
subclause, if the average of the first, second, or third
511 
† HR 1319 EAS 
segment rate for any 25-year period is less than 5 
percent, such average shall be deemed to be 5 per-
cent.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) IN GENERAL.—Section 101(f)(2)(D) of 
such Act (29 U.S.C. 1021(f)(2)(D)) is amend-
ed— 
(i) in clause (i) by striking ‘‘and the 
Bipartisan Budget Act of 2015’’ both places 
it appears and inserting ‘‘, the Bipartisan 
Budget Act of 2015, and the American Res-
cue Plan Act of 2021’’, and 
(ii) in clause (ii) by striking ‘‘2023’’ 
and inserting ‘‘2029’’. 
(B) STATEMENTS.—The Secretary of Labor 
shall modify the statements required under sub-
clauses (I) and (II) of section 101(f)(2)(D)(i) of 
such Act to conform to the amendments made by 
this section. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall apply with respect to plan years be-
ginning after December 31, 2019. 
(2) ELECTION NOT TO APPLY.—A plan sponsor 
may elect not to have the amendments made by this
512 
† HR 1319 EAS 
section apply to any plan year beginning before Jan-
uary 1, 2022, either (as specified in the election)— 
(A) for all purposes for which such amend-
ments apply, or 
(B) solely for purposes of determining the 
adjusted funding target attainment percentage 
under sections 436 of the Internal Revenue Code 
of 1986 and 206(g) of the Employee Retirement 
Income Security Act of 1974 for such plan year. 
A plan shall not be treated as failing to meet the re-
quirements of sections 204(g) of such Act and 
411(d)(6) of such Code solely by reason of an election 
under this paragraph. 
SEC. 9707. MODIFICATION OF SPECIAL RULES FOR MIN-
IMUM FUNDING STANDARDS FOR COMMU-
NITY NEWSPAPER PLANS. 
(a) AMENDMENT TO INTERNAL REVENUE CODE OF 
1986.—Subsection (m) of section 430 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after
513 
† HR 1319 EAS 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE
NEWSPAPER
PLAN
SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means the 
plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary. Such election, once 
made with respect to a plan year, shall apply to all 
subsequent plan years unless revoked with the consent 
of the Secretary. 
‘‘(4) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third
514 
† HR 1319 EAS 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
spect to any day, a yield curve which shall 
be prescribed by the Secretary for such day 
on interest-bearing obligations of the United 
States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization
515 
† HR 1319 EAS 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.— 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan
516 
† HR 1319 EAS 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means any plan to which this 
section applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any time 
during the 11-year period ending on Decem-
ber 20, 2019, 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly or indi-
rectly, during the entire 30-year period end-
ing on December 20, 2019, by individuals
517 
† HR 1319 EAS 
who are members of the same family, and 
does not publish or distribute a daily news-
paper that is carrier-distributed in printed 
form in more than 5 States, and 
‘‘(iii) is controlled, directly or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on December 20, 2019, 
by individuals who are members of the 
same family, 
‘‘(III) by 1 or more trusts, the sole 
trustees of which are persons described 
in subclause (I) or (II), or 
‘‘(IV) by a combination of persons 
described in subclause (I), (II), or 
(III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply:
518 
† HR 1319 EAS 
‘‘(i) Is not in general circulation. 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly pub-
lished on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of 
such person) through the ownership of voting se-
curities. 
‘‘(6) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 as of December 20, 
2019.’’. 
(b) AMENDMENT TO EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.—Subsection (m) of section 303 of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1083(m)) is amended to read as follows:
519 
† HR 1319 EAS 
‘‘(m) SPECIAL RULES FOR COMMUNITY NEWSPAPER 
PLANS.— 
‘‘(1) IN GENERAL.—An eligible newspaper plan 
sponsor of a plan under which no participant has 
had the participant’s accrued benefit increased 
(whether because of service or compensation) after 
April 2, 2019, may elect to have the alternative 
standards described in paragraph (4) apply to such 
plan. 
‘‘(2) ELIGIBLE
NEWSPAPER
PLAN
SPONSOR.— 
The term ‘eligible newspaper plan sponsor’ means the 
plan sponsor of— 
‘‘(A) any community newspaper plan, or 
‘‘(B) any other plan sponsored, as of April 
2, 2019, by a member of the same controlled 
group of a plan sponsor of a community news-
paper plan if such member is in the trade or 
business of publishing 1 or more newspapers. 
‘‘(3) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as prescribed by the Secretary of the Treasury. Such 
election, once made with respect to a plan year, shall 
apply to all subsequent plan years unless revoked 
with the consent of the Secretary of the Treasury.
520 
† HR 1319 EAS 
‘‘(4) ALTERNATIVE
MINIMUM
FUNDING
STAND-
ARDS.—The alternative standards described in this 
paragraph are the following: 
‘‘(A) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsection (h)(2)(C) and except as provided 
in clause (ii), the first, second, and third 
segment rates in effect for any month for 
purposes of this section shall be 8 percent. 
‘‘(ii) NEW BENEFIT ACCRUALS.—Not-
withstanding subsection (h)(2), for purposes 
of determining the funding target and nor-
mal cost of a plan for any plan year, the 
present value of any benefits accrued or 
earned under the plan for a plan year with 
respect to which an election under para-
graph (1) is in effect shall be determined on 
the basis of the United States Treasury obli-
gation yield curve for the day that is the 
valuation date of such plan for such plan 
year. 
‘‘(iii) UNITED STATES TREASURY OBLI-
GATION YIELD CURVE.—For purposes of this 
subsection, the term ‘United States Treas-
ury obligation yield curve’ means, with re-
521 
† HR 1319 EAS 
spect to any day, a yield curve which shall 
be prescribed by the Secretary of the Treas-
ury for such day on interest-bearing obliga-
tions of the United States. 
‘‘(B) SHORTFALL AMORTIZATION BASE.— 
‘‘(i) PREVIOUS SHORTFALL AMORTIZA-
TION
BASES.—The shortfall amortization 
bases determined under subsection (c)(3) for 
all plan years preceding the first plan year 
to which the election under paragraph (1) 
applies (and all shortfall amortization in-
stallments determined with respect to such 
bases) shall be reduced to zero under rules 
similar to the rules of subsection (c)(6). 
‘‘(ii) NEW SHORTFALL AMORTIZATION 
BASE.—Notwithstanding subsection (c)(3), 
the shortfall amortization base for the first 
plan year to which the election under para-
graph (1) applies shall be the funding short-
fall of such plan for such plan year (deter-
mined using the interest rates as modified 
under subparagraph (A)). 
‘‘(C) DETERMINATION OF SHORTFALL AM-
ORTIZATION INSTALLMENTS.—
522 
† HR 1319 EAS 
‘‘(i) 30-YEAR PERIOD.—Subparagraphs 
(A) and (B) of subsection (c)(2) shall be ap-
plied by substituting ‘30-plan-year’ for ‘7- 
plan-year’ each place it appears. 
‘‘(ii) NO
SPECIAL
ELECTION.—The 
election under subparagraph (D) of sub-
section (c)(2) shall not apply to any plan 
year to which the election under paragraph 
(1) applies. 
‘‘(D) EXEMPTION
FROM
AT-RISK
TREAT-
MENT.—Subsection (i) shall not apply. 
‘‘(5) COMMUNITY NEWSPAPER PLAN.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
newspaper plan’ means a plan to which this sec-
tion applies maintained as of December 31, 
2018, by an employer which— 
‘‘(i) maintains the plan on behalf of 
participants and beneficiaries with respect 
to employment in the trade or business of 
publishing 1 or more newspapers which 
were published by the employer at any time 
during the 11-year period ending on Decem-
ber 20, 2019,
523 
† HR 1319 EAS 
‘‘(ii)(I) is not a company the stock of 
which is publicly traded (on a stock ex-
change or in an over-the-counter market), 
and is not controlled, directly or indirectly, 
by such a company, or 
‘‘(II) is controlled, directly, or indi-
rectly, during the entire 30-year period end-
ing on December 20, 2019, by individuals 
who are members of the same family, and 
does not publish or distribute a daily news-
paper that is carrier-distributed in printed 
form in more than 5 States, and 
‘‘(iii) is controlled, directly, or indi-
rectly— 
‘‘(I) by 1 or more persons residing 
primarily in a State in which the 
community newspaper has been pub-
lished on newsprint or carrier-distrib-
uted, 
‘‘(II) during the entire 30-year 
period ending on December 20, 2019, 
by individuals who are members of the 
same family,
524 
† HR 1319 EAS 
‘‘(III) by 1 or more trusts, the sole 
trustees of which are persons described 
in subclause (I) or (II), or 
‘‘(IV) by a combination of persons 
described in subclause (I), (II), or 
(III). 
‘‘(B) NEWSPAPER.—The term ‘newspaper’ 
does not include any newspaper (determined 
without regard to this subparagraph) to which 
any of the following apply: 
‘‘(i) Is not in general circulation. 
‘‘(ii) Is published (on newsprint or 
electronically) less frequently than 3 times 
per week. 
‘‘(iii) Has not ever been regularly pub-
lished on newsprint. 
‘‘(iv) Does not have a bona fide list of 
paid subscribers. 
‘‘(C) CONTROL.—A person shall be treated 
as controlled by another person if such other per-
son possesses, directly or indirectly, the power to 
direct or cause the direction and management of 
such person (including the power to elect a ma-
jority of the members of the board of directors of
525 
† HR 1319 EAS 
such person) through the ownership of voting se-
curities. 
‘‘(6) CONTROLLED GROUP.—For purposes of this 
subsection, the term ‘controlled group’ means all per-
sons treated as a single employer under subsection 
(b), (c), (m), or (o) of section 414 of the Internal Rev-
enue Code of 1986 as of December 20, 2019. 
‘‘(7) EFFECT
ON
PREMIUM
RATE
CALCULA-
TION.—In the case of a plan for which an election is 
made to apply the alternative standards described in 
paragraph (3), the additional premium under section 
4006(a)(3)(E) shall be determined as if such election 
had not been made.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to plan years ending after December 31, 
2017. 
SEC. 9708. EXPANSION OF LIMITATION ON EXCESSIVE EM-
PLOYEE REMUNERATION. 
Paragraph (3) of section 162(m) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D), 
(2) by striking ‘‘or’’ at the end of subparagraph 
(B),
526 
† HR 1319 EAS 
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) in the case of taxable years beginning 
after December 31, 2026, such employee is among 
the 5 highest compensated employees for the tax-
able year other than any individual described in 
subparagraph (A) or (B), or’’, and 
(4) by striking ‘‘employee’’ in subparagraph (D), 
as so redesignated, and inserting ‘‘employee described 
in subparagraph (A) or (B)’’. 
Subtitle I—Child Care for Workers 
SEC. 9801. CHILD CARE ASSISTANCE. 
(a) APPROPRIATION.— 
(1) IN GENERAL.—Section 418(a)(3) of the So-
cial Security Act (42 U.S.C. 618(a)(3)) is amended to 
read as follows: 
‘‘(3) APPROPRIATION.—For grants under this 
section, there are appropriated $3,550,000,000 for 
each fiscal year, of which— 
‘‘(A) $3,375,000,000 shall be available for 
grants to States; 
‘‘(B) $100,000,000 shall be available for 
grants to Indian tribes and tribal organizations; 
and
527 
† HR 1319 EAS 
‘‘(C) $75,000,000 shall be available for 
grants to territories.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
418(a)(2)(A) of such Act (42 U.S.C. 618(a)(2)(A)) is 
amended by striking ‘‘paragraph (3), and remaining 
after the reservation described in paragraph (4) and’’ 
and inserting ‘‘paragraph (3)(A),’’. 
(b) MODIFICATION OF STATE MATCH REQUIREMENT 
FOR FUNDING INCREASES IN FISCAL YEARS 2021 AND 
2022.—With respect to the amounts made available by sec-
tion 418(a)(3) of the Social Security Act for each of fiscal 
years 2021 and 2022, section 418(a)(2)(C) of such Act shall 
be applied and administered with respect to any State that 
is entitled to receive the entire amount that would be allot-
ted to the State under section 418(a)(2)(B) of such Act for 
the fiscal year in the manner authorized for fiscal year 
2020, as if the Federal medical assistance percentage for 
the State for the fiscal year were 100 percent. 
(c) 
FUNDING
FOR
THE
TERRITORIES.—Section 
418(a)(4) of such Act (42 U.S.C. 618(a)(4)) is amended to 
read as follows: 
‘‘(4) TERRITORIES.— 
‘‘(A) GRANTS.—The Secretary shall use the 
amounts made available by paragraph (3)(C) to
528 
† HR 1319 EAS 
make grants to the territories under this para-
graph. 
‘‘(B) ALLOTMENTS.—The amount described 
in subparagraph (A) shall be allotted among the 
territories in proportion to their respective needs. 
‘‘(C) REDISTRIBUTION.—The 1st sentence of 
clause (i) and clause (ii) of paragraph (2)(D) 
shall apply with respect to the amounts allotted 
to the territories under this paragraph, except 
that the 2nd sentence of paragraph (2)(D) shall 
not apply and the amounts allotted to the terri-
tories that are available for redistribution for a 
fiscal year shall be redistributed to each territory 
that applies for the additional amounts, to the 
extent that the Secretary determines that the ter-
ritory will be able to use the additional amounts 
to provide child care assistance, in an amount 
that bears the same ratio to the amount so avail-
able for redistribution as the amount allotted to 
the territory for the fiscal year bears to the total 
amount allotted to all the territories receiving re-
distributed funds under this paragraph for the 
fiscal year.
529 
† HR 1319 EAS 
‘‘(D) INAPPLICABILITY OF PAYMENT LIMITA-
TION.— Section 1108(a) shall not apply with re-
spect to any amount paid under this paragraph. 
‘‘(E) TERRITORY.—In this paragraph, the 
term ‘territory’ means the Commonwealth of 
Puerto Rico, the United States Virgin Islands, 
Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands.’’. 
Subtitle J—Medicaid 
SEC. 9811. MANDATORY COVERAGE OF COVID–19 VACCINES 
AND 
ADMINISTRATION 
AND 
TREATMENT 
UNDER MEDICAID. 
(a) COVERAGE.— 
(1) IN GENERAL.—Section 1905(a)(4) of the So-
cial Security Act (42 U.S.C. 1396d(a)(4)) is amended 
by striking the semicolon at the end and inserting ‘‘; 
and (E) during the period beginning on the date of 
the enactment of the American Rescue Plan Act of 
2021 and ending on the last day of the first calendar 
quarter that begins one year after the last day of the 
emergency period described in section 1135(g)(1)(B), 
a COVID–19 vaccine and administration of the vac-
cine; and (F) during the period beginning on the date 
of the enactment of the American Rescue Plan Act of 
2021 and ending on the last day of the first calendar
530 
† HR 1319 EAS 
quarter that begins one year after the last day of the 
emergency period described in section 1135(g)(1)(B), 
testing and treatments for COVID–19, including spe-
cialized equipment and therapies (including preven-
tive therapies), and, without regard to the require-
ments of section 1902(a)(10)(B) (relating to com-
parability), in the case of an individual who is diag-
nosed with or presumed to have COVID–19, during 
the period such individual has (or is presumed to 
have) COVID–19, the treatment of a condition that 
may seriously complicate the treatment of COVID–19, 
if otherwise covered under the State plan (or waiver 
of such plan);’’. 
(2) MAKING
COVID–19
VACCINE
AVAILABLE
TO 
ADDITIONAL
ELIGIBILITY
GROUPS
AND
TREATMENT 
AVAILABLE
TO
CERTAIN
UNINSURED.—Section 
1902(a)(10) of such Act (42 U.S.C. 1396a(a)(10)) is 
amended in the matter following subparagraph (G)— 
(A) by striking ‘‘and to other conditions 
which may complicate pregnancy, (VIII)’’ and 
inserting ‘‘, medical assistance for services re-
lated to other conditions which may complicate 
pregnancy, and medical assistance for vaccines 
described in section 1905(a)(4)(E) and the ad-
531 
† HR 1319 EAS 
ministration of such vaccines during the period 
described in such section, (VIII)’’; 
(B) by inserting ‘‘and medical assistance 
for vaccines described in section 1905(a)(4)(E) 
and the administration of such vaccines during 
the period described in such section’’ after ‘‘(de-
scribed in subsection (z)(2))’’; 
(C) by inserting ‘‘and medical assistance for 
vaccines described in section 1905(a)(4)(E) and 
the administration of such vaccines during the 
period described in such section’’ after ‘‘described 
in subsection (k)(1)’’; 
(D) by inserting ‘‘and medical assistance 
for vaccines described in section 1905(a)(4)(E) 
and the administration of such vaccines during 
the period described in such section’’ after ‘‘fam-
ily planning setting’’; 
(E) by striking ‘‘and any visit described in 
section 1916(a)(2)(G) that is furnished during 
any such portion’’ and inserting ‘‘, any service 
described in section 1916(a)(2)(G) that is fur-
nished during any such portion, any vaccine de-
scribed in section 1905(a)(4)(E) (and the admin-
istration of such vaccine) that is furnished dur-
ing any such portion, and testing and treat-
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† HR 1319 EAS 
ments for COVID–19, including specialized 
equipment and therapies (including preventive 
therapies), and, in the case of an individual who 
is diagnosed with or presumed to have COVID– 
19, during the period such individual has (or is 
presumed to have) COVID–19, the treatment of 
a condition that may seriously complicate the 
treatment of COVID–19, if otherwise covered 
under the State plan (or waiver of such plan)’’; 
and 
(F) by striking the semicolon at the end and 
inserting ‘‘, and (XIX) medical assistance shall 
be made available during the period described in 
section 1905(a)(4)(E) for vaccines described in 
such section and the administration of such vac-
cines, for any individual who is eligible for and 
receiving medical assistance under the State 
plan or under a waiver of such plan (other than 
an individual who is eligible for medical assist-
ance consisting only of payment of premiums 
pursuant to subparagraph (E) or (F) or section 
1933), notwithstanding any provision of this 
title or waiver under section 1115 impacting 
such individual’s eligibility for medical assist-
ance under such plan or waiver to coverage for
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† HR 1319 EAS 
a limited type of benefits and services that would 
not otherwise include coverage of a COVID–19 
vaccine and its administration;’’. 
(3) PROHIBITION OF COST SHARING.— 
(A) IN GENERAL.—Subsections (a)(2) and 
(b)(2) of section 1916 of the Social Security Act 
(42 U.S.C. 1396o) are each amended— 
(i) in subparagraph (F), by striking 
‘‘or’’ at the end; 
(ii) in subparagraph (G), by striking 
‘‘; and’’; and 
(iii) by adding at the end the following 
subparagraphs: 
‘‘(H) during the period beginning on the 
date of the enactment of this subparagraph and 
ending on the last day of the first calendar quar-
ter that begins one year after the last day of the 
emergency 
period 
described 
in 
section 
1135(g)(1)(B), a COVID–19 vaccine and the ad-
ministration of such vaccine (for any individual 
eligible for medical assistance for such vaccine 
(and administration)); or 
‘‘(I) during the period beginning on the 
date of the enactment of this subparagraph and 
ending on the last day of the first calendar quar-
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† HR 1319 EAS 
ter that begins one year after the last day of the 
emergency 
period 
described 
in 
section 
1135(g)(1)(B), 
testing 
and 
treatments 
for 
COVID–19, including specialized equipment and 
therapies (including preventive therapies), and, 
in the case of an individual who is diagnosed 
with or presumed to have COVID–19, during the 
period during which such individual has (or is 
presumed to have) COVID–19, the treatment of 
a condition that may seriously complicate the 
treatment of COVID–19, if otherwise covered 
under the State plan (or waiver of such plan); 
and’’. 
(B) APPLICATION
TO
ALTERNATIVE
COST 
SHARING.—Section 1916A(b)(3)(B) of the Social 
Security Act (42 U.S.C. 1396o–1(b)(3)(B)) is 
amended— 
(i) in clause (xi), by striking ‘‘any 
visit’’ and inserting ‘‘any service’’; and 
(ii) by adding at the end the following 
clauses: 
‘‘(xii) During the period beginning on 
the date of the enactment of this clause and 
ending on the last day of the first calendar 
quarter that begins one year after the last
535 
† HR 1319 EAS 
day of the emergency period described in 
section 1135(g)(1)(B), a COVID–19 vaccine 
and the administration of such vaccine (for 
any individual eligible for medical assist-
ance for such vaccine (and administra-
tion)). 
‘‘(xiii) During the period beginning on 
the date of the enactment of this clause and 
ending on the last day of the first calendar 
quarter that begins one year after the last 
day of the emergency period described in 
section 1135(g)(1)(B), testing and treat-
ments for COVID–19, including specialized 
equipment and therapies (including preven-
tive therapies), and, in the case of an indi-
vidual who is diagnosed with or presumed 
to have COVID–19, during the period dur-
ing which such individual has (or is pre-
sumed to have) COVID–19, the treatment of 
a condition that may seriously complicate 
the treatment of COVID–19, if otherwise 
covered under the State plan (or waiver of 
such plan).’’.
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† HR 1319 EAS 
(4) INCLUSION IN THE MEDICAID DRUG REBATE 
PROGRAM OF COVERED OUTPATIENT DRUGS USED FOR 
COVID–19 TREATMENT.— 
(A) IN GENERAL.—The requirements of sec-
tion 1927 of the Social Security Act (42 U.S.C. 
1396r–8) shall apply to any drug or biological 
product to which subparagraph (F) of section 
1905(a)(4) of such Act, as added by paragraph 
(1), applies or to which the subclause (XVIII) in 
the matter following subparagraph (G) of section 
1902(a)(10) of such Act, as added by paragraph 
(2), applies that is— 
(i) furnished as medical assistance in 
accordance with section 1902(a)(10)(A) of 
such Act and such subparagraph (F) or sub-
clause (XVIII) and section 1902(a)(10)(A) 
of such Act, as applicable, for the treatment, 
or prevention, of COVID–19, as described in 
such subparagraph or subclause, respec-
tively; and 
(ii) a covered outpatient drug (as de-
fined in section 1927(k) of such Act, except 
that, in applying paragraph (2)(A) of such 
section to a drug to which such subpara-
graph (F) or such subclause (XVIII) ap-
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† HR 1319 EAS 
plies, such drug shall be deemed a pre-
scribed 
drug 
for 
purposes 
of 
section 
1905(a)(12) of such Act). 
(B) 
CONFORMING
AMENDMENT.—Section 
1927(d)(7) of the Social Security Act (42 U.S.C. 
1396r–8(d)(7)) is amended by adding at the end 
the following new subparagraph: 
‘‘(E) Drugs and biological products to 
which section 1905(a)(4)(F) and subclause 
(XVIII) in the matter following subparagraph 
(G) of section 1902(a)(10) apply that are fur-
nished as medical assistance in accordance with 
such section or clause, respectively, for the treat-
ment or prevention, of COVID–19, as described 
in such subparagraph or subclause, respectively, 
and section 1902(a)(10)(A).’’. 
(5) ALTERNATIVE
BENEFIT
PLANS.—Section 
1937(b) of the Social Security Act (42 U.S.C. 1396u– 
7(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(8) COVID–19 VACCINES, TESTING, AND TREAT-
MENT.—Notwithstanding the previous provisions of 
this section, a State may not provide for medical as-
sistance through enrollment of an individual with 
benchmark coverage or benchmark-equivalent coverage
538 
† HR 1319 EAS 
under this section unless, during the period beginning 
on the date of the enactment of the American Rescue 
Plan Act of 2021 and ending on the last day of the 
first calendar quarter that begins one year after the 
last day of the emergency period described in section 
1135(g)(1)(B), such coverage includes (and does not 
impose any deduction, cost sharing, or similar charge 
for)— 
‘‘(A) COVID–19 vaccines and administra-
tion of the vaccines; and 
‘‘(B) testing and treatments for COVID–19, 
including specialized equipment and therapies 
(including preventive therapies), and, in the case 
of such an individual who is diagnosed with or 
presumed to have COVID–19, during the period 
such individual has (or is presumed to have) 
COVID–19, the treatment of a condition that 
may seriously complicate the treatment of 
COVID–19, if otherwise covered under the State 
plan (or waiver of such plan).’’. 
(b) TEMPORARY INCREASE IN FEDERAL PAYMENTS 
FOR COVERAGE AND ADMINISTRATION OF COVID–19 VAC-
CINES.—Section 1905 of the Social Security Act (42 U.S.C. 
1396d) is amended—
539 
† HR 1319 EAS 
(1) in subsection (b), by striking ‘‘and (ff)’’ and 
inserting ‘‘(ff), and (hh)’’; 
(2) in subsection (ff), in the matter preceding 
paragraph (1), by inserting ‘‘, subject to subsection 
(hh)’’ after ‘‘or (z)(2)’’ and 
(3) by adding at the end the following new sub-
section: 
‘‘(hh) TEMPORARY INCREASED FMAP FOR MEDICAL 
ASSISTANCE
FOR COVERAGE
AND ADMINISTRATION
OF 
COVID–19 VACCINES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, during the period described in 
paragraph (2), the Federal medical assistance per-
centage for a State, with respect to amounts expended 
by the State for medical assistance for a vaccine de-
scribed in subsection (a)(4)(E) (and the administra-
tion of such a vaccine), shall be equal to 100 percent. 
‘‘(2) PERIOD DESCRIBED.—The period described 
in this paragraph is the period that— 
‘‘(A) begins on the first day of the first 
quarter beginning after the date of the enactment 
of this subsection; and 
‘‘(B) ends on the last day of the first quar-
ter that begins one year after the last day of the
540 
† HR 1319 EAS 
emergency 
period 
described 
in 
section 
1135(g)(1)(B). 
‘‘(3) EXCLUSION OF EXPENDITURES FROM TER-
RITORIAL CAPS.—Any payment made to a territory 
for expenditures for medical assistance under sub-
section (a)(4)(E) that are subject to the Federal med-
ical assistance percentage specified under paragraph 
(1) shall not be taken into account for purposes of ap-
plying payment limits under subsections (f) and (g) 
of section 1108.’’. 
SEC. 9812. MODIFICATIONS TO CERTAIN COVERAGE UNDER 
MEDICAID FOR PREGNANT AND POSTPARTUM 
WOMEN. 
(a) STATE OPTION.—Section 1902(e) of the Social Se-
curity Act (42 U.S.C. 1396a(e)) is amended by adding at 
the end the following new paragraph: 
‘‘(16) EXTENDING
CERTAIN
COVERAGE
FOR 
PREGNANT AND POSTPARTUM WOMEN.— 
‘‘(A) IN
GENERAL.—At the option of the 
State, the State plan (or waiver of such State 
plan) may provide, that an individual who, 
while pregnant, is eligible for and has received 
medical assistance under the State plan ap-
proved under this title (or a waiver of such plan) 
(including during a period of retroactive eligi-
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† HR 1319 EAS 
bility under subsection (a)(34)) shall, in addi-
tion to remaining eligible under paragraph (5) 
for all pregnancy-related and postpartum med-
ical assistance available under the State plan (or 
waiver) through the last day of the month in 
which the 60-day period (beginning on the last 
day of her pregnancy) ends, remain eligible 
under the State plan (or waiver) for medical as-
sistance for the period beginning on the first day 
occurring after the end of such 60-day period 
and ending on the last day of the month in 
which the 12-month period (beginning on the 
last day of her pregnancy) ends. 
‘‘(B) FULL BENEFITS DURING PREGNANCY 
AND THROUGHOUT THE 12-MONTH POSTPARTUM 
PERIOD.—The medical assistance provided for a 
pregnant or postpartum individual by a State 
making an election under this paragraph, with-
out regard to the basis on which the individual 
is eligible for medical assistance under the State 
plan (or waiver), shall— 
‘‘(i) include all items and services cov-
ered under the State plan (or waiver) that 
are not less in amount, duration, or scope, 
or are determined by the Secretary to be
542 
† HR 1319 EAS 
substantially equivalent, to the medical as-
sistance available for an individual de-
scribed in subsection (a)(10)(A)(i); and 
‘‘(ii) be provided for the individual 
while pregnant and during the 12-month 
period that begins on the last day of the in-
dividual’s pregnancy and ends on the last 
day of the month in which such 12-month 
period ends. 
‘‘(C) COVERAGE
UNDER
CHIP.—A State 
making an election under this paragraph that 
covers under title XXI child health assistance for 
targeted low-income children who are pregnant 
or targeted low-income pregnant women, as ap-
plicable, shall also make the election under sec-
tion 2107(e)(1)(J) of such title.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to State elections made 
under paragraph (16) of section 1902(e) of the Social Secu-
rity Act (42 U.S.C. 1396a(e)), as added by subsection (a), 
during the 5-year period beginning on the 1st day of the 
1st fiscal year quarter that begins one year after the date 
of the enactment of this Act.
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† HR 1319 EAS 
SEC. 9813. STATE OPTION TO PROVIDE QUALIFYING COM-
MUNITY-BASED MOBILE CRISIS INTERVEN-
TION SERVICES. 
Title XIX of the Social Security Act is amended by 
adding after section 1946 (42 U.S.C. 1396w–5) the fol-
lowing new section: 
‘‘SEC. 1947. STATE OPTION TO PROVIDE QUALIFYING COM-
MUNITY-BASED MOBILE CRISIS INTERVEN-
TION SERVICES. 
‘‘(a) 
IN
GENERAL.—Notwithstanding 
section 
1902(a)(1) 
(relating 
to 
Statewideness), 
section 
1902(a)(10)(B) 
(relating 
to 
comparability), 
section 
1902(a)(23)(A) (relating to freedom of choice of providers), 
or section 1902(a)(27) (relating to provider agreements), a 
State may, during the 5-year period beginning on the first 
day of the first fiscal year quarter that begins on or after 
the date that is 1 year after the date of the enactment of 
this section, provide medical assistance for qualifying com-
munity-based mobile crisis intervention services. 
‘‘(b) QUALIFYING COMMUNITY-BASED MOBILE CRISIS 
INTERVENTION SERVICES DEFINED.—For purposes of this 
section, the term ‘qualifying community-based mobile crisis 
intervention services’ means, with respect to a State, items 
and services for which medical assistance is available under 
the State plan under this title or a waiver of such plan, 
that are—
544 
† HR 1319 EAS 
‘‘(1) furnished to an individual otherwise eligible 
for medical assistance under the State plan (or waiv-
er of such plan) who is— 
‘‘(A) outside of a hospital or other facility 
setting; and 
‘‘(B) experiencing a mental health or sub-
stance use disorder crisis; 
‘‘(2) furnished by a multidisciplinary mobile cri-
sis team— 
‘‘(A) that includes at least 1 behavioral 
health care professional who is capable of con-
ducting an assessment of the individual, in ac-
cordance with the professional’s permitted scope 
of practice under State law, and other profes-
sionals or paraprofessionals with appropriate ex-
pertise in behavioral health or mental health cri-
sis response, including nurses, social workers, 
peer support specialists, and others, as des-
ignated by the State through a State plan 
amendment (or waiver of such plan); 
‘‘(B) whose members are trained in trauma- 
informed care, de-escalation strategies, and harm 
reduction; 
‘‘(C) that is able to respond in a timely 
manner and, where appropriate, provide—
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† HR 1319 EAS 
‘‘(i) screening and assessment; 
‘‘(ii) stabilization and de-escalation; 
and 
‘‘(iii) coordination with, and referrals 
to, health, social, and other services and 
supports as needed, and health services as 
needed; 
‘‘(D) that maintains relationships with rel-
evant community partners, including medical 
and behavioral health providers, primary care 
providers, community health centers, crisis res-
pite centers, and managed care organizations (if 
applicable); and 
‘‘(E) that maintains the privacy and con-
fidentiality of patient information consistent 
with Federal and State requirements; and 
‘‘(3) available 24 hours per day, every day of the 
year. 
‘‘(c) PAYMENTS.—Notwithstanding section 1905(b) or 
1905(ff) and subject to subsections (y) and (z) of section 
1905, during each of the first 12 fiscal quarters occurring 
during the period described in subsection (a) that a State 
meets the requirements described in subsection (d), the Fed-
eral medical assistance percentage applicable to amounts 
expended by the State for medical assistance for qualifying
547 
† HR 1319 EAS 
subection (c) will be used to supplement, and not 
supplant, the level of State funds expended for 
such services for the fiscal year preceding the 
first fiscal quarter occurring during the period 
described in subsection (a); 
‘‘(B) if the State made qualifying commu-
nity-based mobile crisis intervention services 
available in a region of the State in such fiscal 
year, the State will continue to make such serv-
ices available in such region under this section 
during each month occurring during the period 
described in subsection (a) for which the Federal 
medical assistance percentage under subsection 
(c) is applicable with respect to the State. 
‘‘(e) FUNDING FOR STATE PLANNING GRANTS.—There 
is appropriated, out of any funds in the Treasury not other-
wise appropriated, $15,000,000 to the Secretary for pur-
poses of implementing, administering, and making plan-
ning grants to States as soon as practicable for purposes 
of developing a State plan amendment or section 1115, 
1915(b), or 1915(c) waiver request (or an amendment to 
such a waiver) to provide qualifying community-based mo-
bile crisis intervention services under this section, to remain 
available until expended.’’.
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† HR 1319 EAS 
SEC. 9814. TEMPORARY INCREASE IN FMAP FOR MEDICAL 
ASSISTANCE UNDER STATE MEDICAID PLANS 
WHICH BEGIN TO EXPEND AMOUNTS FOR 
CERTAIN MANDATORY INDIVIDUALS. 
Section 1905 of the Social Security Act (42 U.S.C. 
1396d), as amended by section 9811 of this subtitle, is fur-
ther amended— 
(1) in subsection (b), in the first sentence, by 
striking ‘‘and (hh)’’ and inserting ‘‘(hh), and (ii)’’; 
(2) in subsection (ff), by striking ‘‘subject to sub-
section (hh)’’ and inserting ‘‘subject to subsections 
(hh) and (ii)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(ii) TEMPORARY INCREASE IN FMAP FOR MEDICAL 
ASSISTANCE UNDER STATE MEDICAID PLANS WHICH 
BEGIN TO EXPEND AMOUNTS FOR CERTAIN MANDATORY 
INDIVIDUALS.— 
‘‘(1) IN GENERAL.—For each quarter occurring 
during the 8-quarter period beginning with the first 
calendar quarter during which a qualifying State (as 
defined in paragraph (3)) expends amounts for all in-
dividuals described in section 1902(a)(10)(A)(i)(VIII) 
under the State plan (or waiver of such plan), the 
Federal medical assistance percentage determined 
under subsection (b) for such State shall, after appli-
549 
† HR 1319 EAS 
cation of any increase, if applicable, under section 
6008 of the Families First Coronavirus Response Act, 
be increased by 5 percentage points, except for any 
quarter (and each subsequent quarter) during such 
period during which the State ceases to provide med-
ical assistance to any such individual under the State 
plan (or waiver of such plan). 
‘‘(2) SPECIAL
APPLICATION
RULES.—Any in-
crease described in paragraph (1) (or payment made 
for expenditures on medical assistance that are subject 
to such increase)— 
‘‘(A) shall not apply with respect to dis-
proportionate share hospital payments described 
in section 1923; 
‘‘(B) shall not be taken into account in cal-
culating the enhanced FMAP of a State under 
section 2105; 
‘‘(C) shall not be taken into account for 
purposes of part A, D, or E of title IV; and 
‘‘(D) shall not be taken into account for 
purposes of applying payment limits under sub-
sections (f) and (g) of section 1108. 
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘qualifying State’ means a State 
which has not expended amounts for all individuals
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† HR 1319 EAS 
described in section 1902(a)(10)(A)(i)(VIII) before the 
date of the enactment of this subsection.’’. 
SEC. 9815. EXTENSION OF 100 PERCENT FEDERAL MEDICAL 
ASSISTANCE PERCENTAGE TO URBAN INDIAN 
HEALTH ORGANIZATIONS AND NATIVE HA-
WAIIAN HEALTH CARE SYSTEMS. 
Section 1905(b) of the Social Security Act (42 U.S.C. 
1396d(b)) is amended by inserting after ‘‘(as defined in sec-
tion 4 of the Indian Health Care Improvement Act)’’ the 
following: ‘‘; for the 8 fiscal year quarters beginning with 
the first fiscal year quarter beginning after the date of the 
enactment of the American Rescue Plan Act of 2021, the 
Federal medical assistance percentage shall also be 100 per 
centum with respect to amounts expended as medical assist-
ance for services which are received through an Urban In-
dian organization (as defined in paragraph (29) of section 
4 of the Indian Health Care Improvement Act) that has 
a grant or contract with the Indian Health Service under 
title V of such Act; and, for such 8 fiscal year quarters, 
the Federal medical assistance percentage shall also be 100 
per centum with respect to amounts expended as medical 
assistance for services which are received through a Native 
Hawaiian Health Center (as defined in section 12(4) of the 
Native Hawaiian Health Care Improvement Act) or a 
qualified entity (as defined in section 6(b) of such Act) that
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† HR 1319 EAS 
has a grant or contract with the Papa Ola Lokahi under 
section 8 of such Act’’. 
SEC. 9816. SUNSET OF LIMIT ON MAXIMUM REBATE 
AMOUNT FOR SINGLE SOURCE DRUGS AND 
INNOVATOR MULTIPLE SOURCE DRUGS. 
Section 1927(c)(2)(D) of the Social Security Act (42 
U.S.C. 1396r–8(c)(2)(D)) is amended by inserting after 
‘‘December 31, 2009,’’ the following: ‘‘and before January 
1, 2024,’’. 
SEC. 9817. ADDITIONAL SUPPORT FOR MEDICAID HOME 
AND COMMUNITY-BASED SERVICES DURING 
THE COVID–19 EMERGENCY. 
(a) INCREASED FMAP.— 
(1) 
IN
GENERAL.—Notwithstanding 
section 
1905(b) of the Social Security Act (42 U.S.C. 
1396d(b)) or section 1905(ff), in the case of a State 
that meets the HCBS program requirements under 
subsection (b), the Federal medical assistance percent-
age determined for the State under section 1905(b) of 
such Act (or, if applicable, under section 1905(ff)) 
and, if applicable, increased under subsection (y), (z), 
(aa), or (ii) of section 1905 of such Act (42 U.S.C. 
1396d), section 1915(k) of such Act (42 U.S.C. 
1396n(k)), or section 6008(a) of the Families First 
Coronavirus Response Act (Public Law 116–127),
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† HR 1319 EAS 
shall be increased by 10 percentage points with re-
spect to expenditures of the State under the State 
Medicaid program for home and community-based 
services (as defined in paragraph (2)(B)) that are 
provided during the HCBS program improvement pe-
riod (as defined in paragraph (2)(A)). In no case 
may the application of the previous sentence result in 
the Federal medical assistance percentage determined 
for a State being more than 95 percent with respect 
to such expenditures. Any payment made to Puerto 
Rico, the Virgin Islands, Guam, the Northern Mar-
iana Islands, or American Samoa for expenditures on 
medical assistance that are subject to the Federal 
medical assistance percentage increase specified under 
the first sentence of this paragraph shall not be taken 
into account for purposes of applying payment limits 
under subsections (f) and (g) of section 1108 of the 
Social Security Act (42 U.S.C. 1308). 
(2) DEFINITIONS.—In this section: 
(A) HCBS PROGRAM
IMPROVEMENT
PE-
RIOD.—The term ‘‘HCBS program improvement 
period’’ means, with respect to a State, the pe-
riod— 
(i) beginning on April 1, 2021; and 
(ii) ending on March 31, 2022.