‘‘(5) REPORTING.—Issuers of qualified Amtrak 
bonds shall submit reports similar to the reports re-
quired under section 149(e).’’. 
(b) AMENDMENTS TO OTHER CODE SECTIONS.—
(1) REPORTING.—Subsection (d) of section 
6049 of the Internal Revenue Code of 1986 (relating 
to returns regarding payments of interest) is amend-
ed by adding at the end the following new para-
graph: 
‘‘(8) REPORTING OF CREDIT ON QUALIFIED AM-
TRAK BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54(d) 
and such amounts shall be treated as paid on 
the credit allowance date (as defined in section 
54(b)(4)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A), subsection (b)(4) shall be 
applied without regard to subparagraphs (A), 
(H), (I), (J), (K), and (L)(i) of such subsection. 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations 
which require more frequent or more detailed 
reporting.’’. 
(2) TREATMENT
FOR
ESTIMATED
TAX
PUR-
POSES.—
(A) INDIVIDUAL.—Section 6654 of such 
Code (relating to failure by individual to pay es-
timated income tax) is amended by redesig-
nating subsection (m) as subsection (n) and by 
inserting after subsection (l) the following new 
subsection: 
‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED 
AMTRAK BONDS.—For purposes of this section, the credit 
allowed by section 54 to a taxpayer by reason of holding 
a qualified Amtrak bond on a credit allowance date shall 
be treated as if it were a payment of estimated tax made 
by the taxpayer on such date.’’. 
(B) CORPORATE.—Section 6655 of such 
Code (relating to failure by corporation to pay 
estimated income tax) is amended by adding at 
the end of subsection (g) the following new 
paragraph: 
‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI-
FIED AMTRAK BONDS.—For purposes of this section,
the credit allowed by section 54 to a taxpayer by 
reason of holding a qualified Amtrak bond on a 
credit allowance date shall be treated as if it were 
a payment of estimated tax made by the taxpayer on 
such date.’’. 
(3) EXCLUSION FROM GROSS INCOME OF CON-
TRIBUTIONS
BY AMTRAK
TO
OTHER
RAIL
CAR-
RIERS.—
(A) IN GENERAL.—Section 118 of the In-
ternal Revenue Code of 1986 (relating to con-
tributions to the capital of a corporation) is 
amended by redesignating subsection (d) as 
subsection (e) and by inserting after subsection 
(c) the following new subsection: 
‘‘(d) SPECIAL RULE FOR CONTRIBUTIONS BY AM-
TRAK TO OTHER RAIL CARRIERS.—For purposes of this 
section, the term ‘contribution to the capital of the tax-
payer’ does not include any contribution by the National 
Railroad Passenger Corporation of personal or real prop-
erty funded by the proceeds of qualified Amtrak bonds 
under section 54.’’. 
(B) 
CONFORMING
AMENDMENT.—Sub-
section (b) of such section 118 is amended by 
striking ‘‘subsection (c)’’ and inserting ‘‘sub-
sections (c) and (d)’’.
(4) PROTECTION OF HIGHWAY TRUST FUND.—
Section 9503 of such Code (relating to Highway 
Trust Fund) is amended by adding at the end the 
following new subsection: 
‘‘(g) SPECIAL RULE RELATING TO NATIONAL RAIL-
ROAD PASSENGER CORPORATION.—Except as provided in 
subsection (c), as in effect on the date of the enactment 
of this subsection, amounts in the Highway Trust Fund 
may not be used to provide funds to the National Railroad 
Passenger Corporation for any purpose, including issuance 
of any qualified Amtrak bond pursuant to section 54. The 
preceding sentence may not be waived by any provision 
of law which is not contained or referenced in this title, 
whether such provision of law is a subsequently enacted 
provision or directly or indirectly seeks to waive the appli-
cation of such sentence.’’. 
(c) CLERICAL AMENDMENTS.—
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the 
end the following new item:
‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Am-
trak Bonds.’’.
(2) Section 6401(b)(1) is amended by striking 
‘‘and G’’ and inserting ‘‘G, and H’’. 
(d) ANNUAL REPORT BY TREASURY ON AMTRAK 
TRUST ACCOUNT.—The Secretary of the Treasury shall
annually report to Congress as to whether the amount de-
posited in the trust account established by the National 
Railroad Passenger Corporation under section 54(i) of the 
Internal Revenue Code of 1986, as added by this section, 
is sufficient to fully repay at maturity the principal of any 
outstanding qualified Amtrak bonds issued pursuant to 
section 54 of such Code (as so added), together with 
amounts expected to be deposited into such account, as 
certified by the National Railroad Passenger Corporation 
in accordance with procedures prescribed by the Secretary 
of the Treasury. 
(e) ISSUANCE OF REGULATIONS.—The Secretary of 
the Treasury shall issue regulations required under section 
54 of the Internal Revenue Code of 1986 (as added by 
this section) not later than 90 days after the date of the 
enactment of this Act. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of enactment of this Act. 
PART II—HIGH-SPEED RAIL PROVISIONS 
SEC. 403. DEPARTMENT OF TRANSPORTATION APPROVAL 
FOR QUALIFIED AMTRAK PROJECTS. 
(a) AMENDMENT.—Part D of subtitle V of title 49, 
United States Code, is amended by adding at the end the 
following new chapter:
‘‘CHAPTER 263—HIGH-SPEED RAIL 
INITIATIVES
‘‘Sec. 
‘‘26301. Department of Transportation approval for qualified high-speed rail 
projects. 
‘‘26302. Qualified projects. 
‘‘26303. State contribution requirements.’’.
‘‘§ 26301. Department of Transportation approval for 
qualified high-speed rail projects 
‘‘(a) IN GENERAL.—The written approval of a quali-
fied project by the Secretary of Transportation required 
for purposes of subsection (e)(5) of section 54 of the Inter-
nal Revenue Code of 1986 (relating to credit to holders 
of qualified Amtrak bonds) shall include—
‘‘(1) the finding by the Inspector General of the 
Department of Transportation described in sub-
section (b); 
‘‘(2) the certification by the Secretary of Trans-
portation described in subsection (c); and 
‘‘(3) the agreement by the National Railroad 
Passenger Corporation described in subsection (d). 
‘‘(b) FINDING BY INSPECTOR GENERAL.—For pur-
poses of subsection (a), the finding described in this sub-
section is a finding by the Inspector General of the De-
partment of Transportation that there is a reasonable like-
lihood that the proposed project will result in a positive 
financial contribution to the National Railroad Passenger 
Corporation and that the investment evaluation process
includes consideration of a return on investment, 
leveraging of funds (including State capital and operating 
contributions), cost effectiveness, safety improvement, mo-
bility improvement, and feasibility. 
‘‘(c) CERTIFICATION.—For purposes of subsection 
(a), the certification described in this subsection is a cer-
tification by the Secretary of Transportation that the 
issuer of the qualified Amtrak bond—
‘‘(1) except with respect to projects described in 
section 54(j)(1)(C) of the Internal Revenue Code of 
1986, has entered into a written agreement with the 
owners of rail properties which are to be improved 
by the project to be funded by the qualified Amtrak 
bond, as to the scope and estimated cost of such 
project and the impact on rail freight capacity; and
‘‘(2) has met the State contribution require-
ments described in section 26303. 
The National Railroad Passenger Corporation shall not 
exercise its rights under section 24308(a)(2) to resolve 
disputes with respect to a project to be funded by a quali-
fied Amtrak bond, or with respect to the cost of such a 
project, unless the project is intended to result in railroad 
speeds of 79 miles per hour or less.
‘‘(d) AGREEMENT
BY AMTRAK TO ISSUE ADDI-
TIONAL BONDS FOR PROJECTS OF OTHER CARRIERS.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the agreement described in this subsection is an 
agreement by the National Railroad Passenger Cor-
poration with the Secretary of Transportation to 
issue bonds which meet the requirements of section 
54 of the Internal Revenue Code of 1986 for use in 
financing projects described in paragraph (2). 
‘‘(2) PROJECTS
COVERED.—For purposes of 
paragraph (1), the projects described in this para-
graph are any project described in subsection 
(j)(1)(B) or (j)(1)(C) of section 54 of the Internal 
Revenue Code of 1986 for an intercity rail passenger 
carrier other than the National Railroad Passenger 
Corporation or for the Alaska Railroad. 
‘‘(3) 
ADDITIONAL
REQUIREMENTS.—Any 
project financed by bonds referred to in paragraph 
(1) shall be carried out by the intercity rail pas-
senger carrier other than the National Railroad Pas-
senger Corporation, through a contract entered into 
by the National Railroad Passenger Corporation 
with such carrier. Such other intercity rail passenger 
carrier, in carrying out the project, shall be subject 
to the provisions of this subtitle governing the Na-
tional Railroad Passenger Corporation.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘intercity rail passenger carrier’ 
means any rail carrier (as such term is defined in 
section 24102(7)) that is part of the interstate sys-
tem of rail transportation and that provides intercity 
rail passenger transportation (as such term is de-
fined in section 24102(5)). 
‘‘(e) ADDITIONAL SELECTION CRITERIA.—In deter-
mining projects to be approved under this section (other 
than projects for the Alaska Railroad), or to be included 
in an agreement under subsection (d), the Secretary of 
Transportation shall give preference to—
‘‘(1) any project with a State matching con-
tribution rate exceeding 20 percent; 
‘‘(2) projects expected to have a significant im-
pact on air traffic congestion; 
‘‘(3) projects expected to also improve com-
muter rail operations; 
‘‘(4) projects that anticipate fares designed to 
recover costs and generate a return on investment; 
and 
‘‘(5) projects that promote regional balance in 
infrastructure investment and the national interest 
in ensuring the development of a nationwide high-
speed rail transportation network.
‘‘§ 26302. Qualified projects 
‘‘For purposes of this chapter—
‘‘(1) IN GENERAL.—The term ‘qualified project’ 
means—
‘‘(A) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements (including the introduc-
tion of new high-speed technologies such as 
magnetic levitation systems), including track or 
signal improvements or the elimination of grade 
crossings, for the northeast rail corridor be-
tween Washington, D.C., and Boston, Massa-
chusetts;
‘‘(B) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements (including the introduc-
tion of new high-speed technologies such as 
magnetic levitation systems), including develop-
ment of intermodal facilities, track or signal im-
provements, or the elimination of grade cross-
ings, for the improvement of train speeds or 
safety (or both) on the high-speed rail corridors 
designated under section 104(d)(2) of title 23, 
United States Code, as in effect on the date of 
the enactment of this section; and
‘‘(C) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements, including station rehabili-
tation or construction, development of inter-
modal facilities, track or signal improvements, 
or the elimination of grade crossings, for the 
improvement of train speeds or safety (or both) 
for other intercity passenger rail corridors and 
for the Alaska Railroad. 
‘‘(2) REFINANCING
RULES.—For purposes of 
paragraph (1), a refinancing shall constitute a quali-
fied project only if the indebtedness being refinanced 
(including any obligation directly or indirectly refi-
nanced by such indebtedness) was originally incurred 
by the issuer—
‘‘(A) after the date of the enactment of 
this section; 
‘‘(B) for a term of not more than 3 years; 
‘‘(C) to finance or acquire capital improve-
ments described in paragraph (1); and 
‘‘(D) in anticipation of being refinanced 
with proceeds of a qualified Amtrak bond. 
‘‘§ 26303. State contribution requirements 
‘‘(a) 
IN
GENERAL.—For 
purposes 
of 
section 
26301(c)(2), the State contribution requirement of this
section is met with respect to any qualified project if the 
National Railroad Passenger Corporation has received 
from 1 or more States, not later than the date of issuance 
of the bond, matching contributions of not less than 20 
percent of the cost of the qualified project. 
‘‘(b) NO STATE CONTRIBUTION REQUIREMENT FOR 
CERTAIN QUALIFIED PROJECTS.—The State contribution 
requirement of this section is zero with respect to the fol-
lowing projects: 
‘‘(1) Any qualified project for the acquisition 
and installation of platform facilities, performance of 
railroad force account work necessary to complete 
improvements below street grade, and any other nec-
essary improvements related to construction at the 
railroad station at the James A. Farley Post Office 
Building in New York City, New York. 
‘‘(2) Any project described in subsection 
(j)(1)(C) of section 54 of the Internal Revenue Code 
of 1986 for the Alaska Railroad. 
‘‘(c) STATE MATCHING CONTRIBUTIONS MAY NOT 
INCLUDE FEDERAL FUNDS.—For purposes of this sec-
tion, State matching contributions shall not be derived, di-
rectly or indirectly, from Federal funds, including any 
transfers from the Highway Trust Fund under section 
9503 of the Internal Revenue Code of 1986.’’.
(b) TABLE OF CHAPTERS AMENDMENT.—The table 
of chapters of subtitle V of title 49, United States Code, 
is amended by inserting after the item relating to chapter 
261 the following new item:
‘‘263. HIGH-SPEED RAIL INITIATIVES ........................................... 26301’’.
SEC. 404. MULTIYEAR CAPITAL SPENDING PLAN AND OVER-
SIGHT. 
(a) AMENDMENT.—Chapter 243 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 24316. Multiyear capital spending plan and over-
sight 
‘‘(a) AMTRAK CAPITAL SPENDING PLAN.—
‘‘(1) IN
GENERAL.—The National Railroad 
Passenger Corporation shall annually submit to the 
President and Congress a multiyear capital spending 
plan, as approved by the Board of Directors of the 
Corporation. 
‘‘(2) CONTENTS
OF
PLAN.—Such plan shall 
identify the capital investment needs of the Corpora-
tion over a period of not less than 5 years and the 
funding sources available to finance such needs and 
shall prioritize such needs according to corporate 
goals and strategies. 
‘‘(3) INITIAL
SUBMISSION
DATE.—The first 
plan shall be submitted before the issuance of any
qualified Amtrak bonds by the National Railroad 
Passenger Corporation pursuant to section 54 of the 
Internal Revenue Code of 1986. 
‘‘(b) OVERSIGHT
OF QUALIFIED PROJECTS.—The 
Secretary of Transportation shall contract for an annual 
independent assessment of the costs and benefits of the 
qualified projects financed by qualified Amtrak bonds pur-
suant to section 54 of the Internal Revenue Code of 1986, 
including an assessment of the investment evaluation proc-
ess of the Corporation. The annual assessment shall be 
included in the plan submitted under subsection (a).’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections of chapter 243 of title 49, United States Code, 
is amended by adding after the item relating to section 
24315 the following new item:
‘‘24316. Multiyear capital spending plan and oversight.’’.
SEC. 405. ISSUANCE OF REGULATIONS. 
The Secretary of Transportation shall issue regula-
tions for carrying out chapter 263 of title 49, United 
States Code (as added by section 111 of this Act), not 
later than 90 days after the date of the enactment of this 
Act. 
SEC. 406. SENSE OF CONGRESS REGARDING EFFECT ON 
AMTRAK FUNDING. 
It is the sense of the Congress that the proceeds of 
qualified Amtrak bonds issued under section 54 of the In-
ternal Revenue Code of 1986 are intended to finance the 
construction of qualified projects (as defined in section 
26302 of title 49, United States Code, as added by section 
111 of this Act) and are not intended to meet the regular, 
ongoing capital funding needs of the National Railroad 
Passenger Corporation. 
SEC. 407. EFFECTIVE DATE. 
The amendments made by this part shall apply to ob-
ligations issued after the date of the enactment of this 
Act. 
PART III—AMTRAK CAPITAL INVESTMENT 
SEC. 411. AUTHORIZATION OF APPROPRIATIONS. 
Section 24104(a) of title 49, United States Code, is 
amended—
(1) by inserting ‘‘(1)’’ after ‘‘IN GENERAL.—’’; 
(2) by redesignating paragraphs (1) through 
(5) as subparagraphs (A) through (E), respectively; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) There are authorized to be appropriated to the 
Secretary of Transportation $3,000,000,000 for fiscal 
year 2002 for the benefit of Amtrak for capital expendi-
tures including—
‘‘(A) New York, Washington, D.C., and Balti-
more tunnel life safety projects; 
‘‘(B) bridges, tracks, and other improvements 
to increase the capacity and reliability of rail pas-
senger transportation; and 
‘‘(C) 
equipment, 
including 
acquisition 
of 
trainsets and rolling stock, for operation in federally 
designated corridors. 
At least 2⁄3 of amounts expended under subparagraph (C) 
shall be for operations outside the Northeast Corridor.’’. 
PART IV—CAPITAL INVESTMENT FOR RAILROAD 
REHABILITATION 
SEC. 416. CAPITAL GRANTS FOR RAILROAD TRACK. 
(a) AMENDMENT.—Chapter 223 of title 49, United 
States Code, is amended to read as follows: 
‘‘CHAPTER 223—CAPITAL GRANTS FOR 
RAILROAD TRACK
‘‘Sec. 
‘‘22301. Capital grants for railroad track.
‘‘§ 22301. Capital grants for railroad track 
‘‘(a) ESTABLISHMENT OF PROGRAM.—
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Transportation shall establish a program of capital 
grants for the rehabilitation, preservation, or im-
provement of railroad track (including roadbed, 
bridges, and related track structures) of class II and
class III railroads. Such grants shall be for rehabili-
tating, preserving, or improving track used primarily 
for freight transportation to a standard ensuring 
that the track can be operated safely and efficiently, 
including grants for rehabilitating, preserving, or im-
proving track to handle 286,000 pound rail cars. 
Grants may be provided under this chapter—
‘‘(A) directly to the class II or class III 
railroad; or 
‘‘(B) with the concurrence of the class II 
or class III railroad, to a State or local govern-
ment. 
‘‘(2) STATE COOPERATION.—Class II and class 
III railroad applicants for a grant under this chap-
ter are encouraged to utilize the expertise and assist-
ance of State transportation agencies in applying for 
and administering such grants. State transportation 
agencies are encouraged to provide such expertise 
and assistance to such railroads.
‘‘(3) INTERIM REGULATIONS.—Not later than 
December 31, 2001, the Secretary shall issue tem-
porary regulations to implement the program under 
this section. Subchapter II of chapter 5 of title 5 
does not apply to a temporary regulation issued
under this paragraph or to an amendment to such 
a temporary regulation. 
‘‘(4) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2002, the Secretary shall issue final regula-
tions to implement the program under this section. 
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum 
Federal share for carrying out a project under this section 
shall be 80 percent of the project cost. The non-Federal 
share may be provided by any non-Federal source in cash, 
equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case by case basis con-
sistent with this chapter. 
‘‘(c) PROJECT ELIGIBILITY.—For a project to be eli-
gible for assistance under this section the track must have 
been operated or owned by a class II or class III railroad 
as of the date of the enactment of this section. 
‘‘(d) USE OF FUNDS.—Grants provided under this 
section shall be used to implement track capital projects 
as soon as possible. In no event shall grant funds be con-
tractually obligated for a project later than the end of the 
third Federal fiscal year following the year in which the 
grant was awarded. Any funds not so obligated by the end 
of such fiscal year shall be returned to the Secretary for 
reallocation.
‘‘(e) ADDITIONAL PURPOSE.—In addition to making 
grants for projects as provided in subsection (a), the Sec-
retary may also make grants to supplement direct loans 
or loan guarantees made under title V of the Railroad Re-
vitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 822(d)), for projects described in the last sentence 
of section 502(d) of such title. Grants made under this 
subsection may be used, in whole or in part, for paying 
credit risk premiums, lowering rates of interest, or pro-
viding for a holiday on principal payments. Credit risk 
premiums funded under this section shall be exempt from 
the non-Federal source requirement of section 502(f)(1) 
of the Railroad Revitalization and Regulatory Reform Act 
of 1976 (45 U.S.C. 822(f)(1)). 
‘‘(f) EMPLOYEE PROTECTION.—The Secretary shall 
require as a condition of any grant made under this sec-
tion that the recipient railroad provide a fair arrangement 
at least as protective of the interests of employees who 
are affected by the project to be funded with the grant 
as the terms imposed under section 11326(a), as in effect 
on the date of the enactment of this section. 
‘‘(g) LABOR STANDARDS.—
‘‘(1) PREVAILING WAGES.—The Secretary shall 
ensure that laborers and mechanics employed by 
contractors and subcontractors in construction work
financed by a grant made under this section will be 
paid wages not less than those prevailing on similar 
construction in the locality, as determined by the 
Secretary of Labor under the Act of March 3, 1931 
(known as the Davis-Bacon Act; 40 U.S.C. 276a et 
seq.). The Secretary shall make a grant under this 
section only after being assured that required labor 
standards will be maintained on the construction 
work. 
‘‘(2) WAGE RATES.—Wage rates in a collective 
bargaining agreement negotiated under the Railway 
Labor Act (45 U.S.C. 151 et seq.) are deemed for 
purposes of this subsection to comply with the Act 
of March 3, 1931 (known as the Davis-Bacon Act; 
40 U.S.C. 276a et seq.). 
‘‘(h) STUDY.—The Secretary shall conduct a study 
of the projects carried out with grant assistance under this 
section to determine the public interest benefits associated 
with the light density railroad networks in the States and 
their contribution to a multimodal transportation system. 
Not later than March 31, 2003, the Secretary shall report 
to Congress any recommendations the Secretary considers 
appropriate regarding the eligibility of light density rail 
networks for Federal infrastructure financing.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Transportation $500,000,000 for fiscal year 2002 for car-
rying out this section.’’. 
(b) CONFORMING AMENDMENTS.—(1) The item re-
lating to chapter 223 in the table of chapters of subtitle 
V of title 49, United States Code, is amended to read as 
follows:
‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK .......................... 22301’’.
(2) Section 502(d) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 
amended—
(A) by striking ‘‘$3,500,000,000’’ and in-
serting ‘‘$5,000,000,000’’; and 
(B) by striking ‘‘$1,000,000,000’’ and in-
serting ‘‘$1,500,000,000’’. 
SEC. 417. REGULATORY PROCEDURE AMENDMENTS. 
(a) COHORTS OF LOANS.—Section 502(f) of the Rail-
road Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 822(f)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D); 
(B) by redesignating subparagraph (E) as 
subparagraph (F); and
(C) by adding after subparagraph (D) the 
following new subparagraph: 
‘‘(E) the size and characteristics of the co-
hort of which the loan or loan guarantee is a 
member; and’’; and 
(2) by adding at the end of paragraph (4) the 
following: ‘‘A cohort may include loans and loan 
guarantees. The Secretary shall not establish any 
limit on the proportion of a cohort that may be used 
for 1 loan or loan guarantee.’’. 
(b) CONDITIONS OF ASSISTANCE.—Section 502 of 
the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822) is amended—
(1) in subsection (f)(2)(A), by inserting ‘‘, if 
any’’ after ‘‘collateral offered’’; and 
(2) by adding at the end of subsection (h) the 
following: 
‘‘The Secretary shall not require an applicant for a direct 
loan or loan guarantee under this section to provide collat-
eral. The Secretary shall not require that an applicant for 
a direct loan or loan guarantee under this section have 
previously sought the financial assistance requested from 
another source. The Secretary shall require recipients of 
direct loans or loan guarantees under this section to apply 
the standards of section 26106(a)(5) of title 49, United
States Code, to their projects, except for projects primarily 
benefiting Class III freight railroads.’’. 
(c) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Section 502 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822) is amended by add-
ing at the end the following new subsection: 
‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Not later than 180 days after receiving a complete appli-
cation for a direct loan or loan guarantee under this sec-
tion, the Secretary shall approve or disapprove the applica-
tion.’’. 
(d) FEES AND CHARGES.—Section 503 of the Rail-
road Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 823) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) FEES AND CHARGES.—Except as provided in 
this title, the Secretary may not assess any fees, including 
user fees, or charges in connection with a direct loan or 
loan guarantee provided under section 502.’’. 
(e) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Transportation shall publish in the 
Federal Register and post on the Department of Trans-
portation web site the substantive criteria and standards 
used by the Secretary to determine whether to approve
or disapprove applications submitted under section 502 of 
the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822). 
Subtitle B—Environmental 
Infrastructure Investment 
SEC. 421. GENERAL AUTHORITY FOR CAPITALIZATION 
GRANTS. 
Section 601(a) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1381(a)) is amended by striking ‘‘(1) 
for construction’’ and all that follows through the period 
and inserting ‘‘to accomplish the objectives, goals, and 
policies of this Act.’’. 
SEC. 422. CAPITALIZATION GRANTS AGREEMENTS. 
(a) REQUIREMENTS FOR CONSTRUCTION OF TREAT-
MENT WORKS.—Section 602(b)(6) of the Federal Water 
Pollution Control Act (33 U.S.C. 1382(b)(6)) is amend-
ed—
(1) by striking ‘‘treatment works’’ the first 
place it appears and inserting ‘‘activities’’; 
(2) by striking ‘‘before fiscal year 1995’’ and all 
that follows through ‘‘grants under this title’’ and 
inserting ‘‘with funds made available by capitaliza-
tion grants under this title (including repayments 
thereof)’’; and
(3) by striking ‘‘201(b)’’ and all that follows 
through ‘‘218’’ and inserting ‘‘204(b)(1), 211’’. 
(b) GUIDANCE FOR SMALL SYSTEMS.—Section 602 
of the Federal Water Pollution Control Act (33 U.S.C. 
1382) is amended by adding at the end the following new 
subsection: 
‘‘(c) GUIDANCE FOR SMALL SYSTEMS.—
‘‘(1) SIMPLIFIED PROCEDURES.—Not later than 
1 year after the date of the enactment of this sub-
section, the Administrator shall assist the States in 
establishing simplified procedures for small systems 
to obtain assistance under this title. 
‘‘(2) PUBLICATION
OF
MANUAL.—Not later 
than 1 year after the date of the enactment of this 
subsection, and after providing notice and oppor-
tunity for public comment, the Administrator shall 
publish a manual to assist small systems in obtain-
ing assistance under this title and publish in the 
Federal Register notice of the availability of the 
manual. 
‘‘(3) SMALL SYSTEM DEFINED.—For purposes 
of this title, the term ‘small system’ means a system 
for which a municipality or intermunicipal, inter-
state, or State agency seeks assistance under this
title and which serves a population of 20,000 or 
fewer.’’. 
SEC. 
423. 
WATER 
POLLUTION 
CONTROL 
REVOLVING 
FUNDS. 
(a) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 603(c) of the Federal Water Pollution Control Act 
(33 U.S.C. 1383(c)) is amended to read as follows: 
‘‘(c) ACTIVITIES ELIGIBLE FOR ASSISTANCE.—
‘‘(1) IN
GENERAL.—The amounts of funds 
available to each State water pollution control re-
volving fund shall be used only for providing finan-
cial assistance to a municipality, intermunicipal 
agency, interstate agency, State agency, or other 
person for activities which have as a principal ben-
efit the improvement or protection of water quality. 
Such activities may include the following: 
‘‘(A) Construction of a publicly owned 
treatment works (as defined in section 212 of 
this Act). 
‘‘(B) Implementation of lake protection 
programs and projects under section 314. 
‘‘(C) Implementation of a management 
program established under section 319.
‘‘(D) Implementation of a conservation and 
management plan established under section 
320. 
‘‘(E) Restoration or protection of publicly 
or privately owned riparian areas, including ac-
quisition of property rights. 
‘‘(F) Implementation of measures to im-
prove the efficiency of public water use. 
‘‘(G) Development and implementation of 
plans by a public recipient to prevent water pol-
lution. 
‘‘(H) Acquisition of lands necessary to 
meet any mitigation requirements related to 
construction of a publicly owned treatment 
works. 
‘‘(2) FUND
AMOUNTS.—The water pollution 
control revolving fund of a State shall be established, 
maintained, and credited with repayments, and the 
fund balance shall be available in perpetuity for pro-
viding financial assistance for activities described in 
paragraph (1). Fees charged by a State to recipients 
of such assistance may be deposited in the fund for 
the sole purpose of financing the cost of administra-
tion of this title.’’.
(b) EXTENDED REPAYMENT PERIOD FOR FINAN-
CIALLY DISTRESSED COMMUNITIES.—Section 603(d)(1) 
of the Federal Water Pollution Control Act (33 U.S.C. 
1383(d)(1)) is amended—
(1) in subparagraph (A) by inserting after ‘‘20 
years’’ the following: ‘‘or, in the case of a financially 
distressed community, the lesser of 40 years or the 
expected life of the project to be financed with the 
proceeds of the loan’’; and 
(2) in subparagraph (B) by striking ‘‘not later 
than 20 years after project completion’’ and insert-
ing ‘‘upon the expiration of the term of the loan’’. 
(c) ADMINISTRATIVE EXPENSES.—Section 603(d)(7) 
of the Federal Water Pollution Control Act (33 U.S.C. 
1383(d)(7)) is amended by inserting before the period at 
the end the following: ‘‘or $400,000 per year or 1⁄2 percent 
per year of the current valuation of such fund, whichever 
is greatest, plus the amount of any fees collected by the 
State for such purpose under subsection (c)(2)’’. 
(d) TECHNICAL
AND PLANNING ASSISTANCE
FOR 
SMALL SYSTEMS.—Section 603(d) of the Federal Water 
Pollution Control Act (33 U.S.C. 1383(d)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(8) to provide to small systems technical and 
planning assistance and assistance in financial man-
agement, user fee analysis, budgeting, capital im-
provement planning, facility operation and mainte-
nance, repair schedules, and other activities to im-
prove wastewater treatment plant operations; except 
that such amounts shall not exceed 2 percent of all 
grant awards to such fund under this title.’’. 
(e) PRINCIPAL SUBSIDIZATION.—Section 603 of the 
Federal Water Pollution Control Act is amended by add-
ing at the end the following: 
‘‘(i) PRINCIPAL SUBSIDIZATION.—In any case in 
which a State makes a loan pursuant to subsection (d)(1) 
to a financially distressed community, the State may pro-
vide additional subsidization, including forgiveness of prin-
cipal. The total amount of loan subsidies made by a State 
under this subsection in a fiscal year may not exceed 30 
percent of the amount of the capitalization grant received 
by the State in such fiscal year. 
‘‘(j) FINANCIALLY DISTRESSED COMMUNITY DE-
FINED.—In this section, the term ‘financially distressed 
community’ means any community that meets afford-
ability criteria established by the State in which the treat-
ment works is located, if such criteria are developed after 
public review and comment. 
‘‘(k) INFORMATION TO ASSIST STATES.—The Ad-
ministrator may publish information to assist States in es-
tablishing affordability criteria under subsection (j). 
‘‘(l) PRIORITY.—A State may give priority to a finan-
cially distressed community in making loans from its 
water pollution control revolving fund.’’. 
SEC. 
424. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR 
CLEAN WATER STATE REVOLVING FUNDS. 
Section 607 of the Federal Water Pollution Control 
Act (33 U.S.C. 1387) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) $5,000,000,000 as an additional amount 
for fiscal year 2002.’’. 
SEC. 425. WET WEATHER. 
Section 221(f) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1301(f)) is amended by inserting after 
the first sentence the following: ‘‘In addition, there is au-
thorized to be appropriated to carry out this section an 
additional $1,500,000,000 for fiscal year 2002.’’. 
SEC. 426. SAFE DRINKING WATER STATE REVOLVING 
FUNDS. 
Section 1452(m) of title XIV of the Public Health 
Service Act (commonly known as the ‘‘Safe Drinking 
Water Act’’) (42 U.S.C. 300j–12(m)) is amended by in-
serting after the first sentence the following: ‘‘In addition, 
there is authorized to be appropriated to carry out this 
section an additional $1,500,000,000 for fiscal year 
2002.’’. 
Subtitle C—Highway 
Infrastructure Investment 
SEC. 431. FEDERAL-AID HIGHWAY PROGRAM OBLIGATION 
CEILING. 
Section 1102 of the Transportation Equity Act for 
the 21st Century (112 Stat. 115) is amended by adding 
at the end the following: 
‘‘(j) INCREASE IN OBLIGATION LIMIT FOR FISCAL 
YEAR 2002.—Notwithstanding any other provision of law, 
limitations on obligations imposed by subsection (a) for 
fiscal year 2002 shall be increased by $5,000,000,000. 
Such sum shall be distributed in accordance with this sec-
tion, except that a program subject to a reduction in funds 
under subsection (f) shall receive an amount of obligation
authority equal to the amount of contract authority avail-
able for such program in such fiscal year.’’. 
SEC. 432. LIMITATIONS ON CREDIT AMOUNTS. 
Section 188(c) of title 23, United States Code, is 
amended—
(1) by striking ‘‘For each of’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—For each of’’; 
(2) by adding at the end the following: 
‘‘(2) SPECIAL
RULE.—Notwithstanding any 
other provision of law, principal amounts of Federal 
credit instruments authorized under this subsection 
for fiscal years 1999, 2000, and 2001 that have not 
been made available shall be available in fiscal years 
2002 and 2003, in addition to amounts authorized 
for such fiscal years.’’; and 
(3) by aligning the remainder of the text of 
paragraph (1) (as designated by paragraph (1) of 
this section) preceding the table with paragraph (2) 
(as added by paragraph (2) of this section).
Subtitle D—Transit Infrastructure 
Investment 
SEC. 441. ADDITIONAL AUTHORIZATIONS FOR FORMULA 
GRANTS. 
(a) 
FROM
THE
TRUST
FUND.—Section 
5338(a)(2)(A)(iv) of title 49, United States Code, is 
amended by striking ‘‘$2,873,600,000’’ and inserting 
‘‘$5,273,600,000’’. 
(b) 
FROM
THE
GENERAL
FUND.—Section 
5338(a)(2)(B)(iv) of title 49, United States Code, is 
amended by striking ‘‘$718,400,000’’ and inserting 
‘‘$1,318,400,000’’. 
(c) AVAILABILITY OF AMOUNTS.—Notwithstanding 
sections 5307(k)(2) and section 5336(i), any increase in 
the amounts apportioned to a recipient attributable to the 
amendments made by subsections (a) and (b) of this sec-
tion may be obligated by the recipient for 1 year after 
the last day of the fiscal year in which the amount is ap-
portioned. Not later than 30 days after the end of the 
1-year period, an amount that is not obligated at the end 
of that period shall be added to the amount that may be 
apportioned under the urbanized area formula program of 
section 5336 of title 49, United States Code.
SEC. 442. FEDERAL TRANSIT PROGRAM OBLIGATION CEIL-
ING. 
Section 3040(4) of the Transportation Equity Act for 
the 21st Century (112 Stat. 338) is amended by striking 
‘‘$6,747,000,000’’ and inserting ‘‘$9,747,000,000’’. 
SEC. 443. UNIFORM DOLLAR LIMITATION FOR ALL TYPES 
OF TRANSPORTATION FRINGE BENEFITS. 
(a) IN GENERAL.—Subparagraph (A) of section 
132(f)(2) of the Internal Revenue Code of 1986 (relating 
to limitation on exclusion) is amended by striking ‘‘$100’’ 
and inserting ‘‘$175’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2001. 
Subtitle E—AVIATION 
INFRASTRUCTURE INVESTMENT 
SEC. 451. INCREASED FUNDING FOR AIRPORT PLANNING 
AND DEVELOPMENT. 
(a) IN GENERAL.—Section 48103(4) of title 49, 
United 
States 
Code, 
is 
amended 
by 
striking 
‘‘$3,300,000,000’’ and inserting ‘‘$5,355,000,000.’’. 
(b) DISCRETIONARY FUND.—Section 47115 of title 
49, United States Code, is amended by adding at the end 
the following: 
‘‘(i) ADDITIONAL AMOUNT TO BE CREDITED
TO 
FUND FOR FISCAL YEAR 2002.—
‘‘(1) IN
GENERAL.—In addition to other 
amounts credited to the fund under this section, 
there shall be credited to the fund $2,055,000,000 
out of amounts made available to the Secretary for 
fiscal year 2002 under section 48103(4). 
‘‘(2) APPORTIONMENT
CATEGORIES
DO
NOT 
APPLY.—Section 
47117(e) 
does 
not 
apply 
to 
amounts credited to the fund under this sub-
section.’’. 
(c) CONFORMING AMENDMENT.—Section 47114 of 
title 49, United States Code, is amended by adding at the 
end the following: 
‘‘(g) SPECIAL RULE FOR FISCAL YEAR 2002.—Of 
the funds made available by section 48103(4), the amount 
subject to apportionment under this section shall be re-
duced by the amount credited to the discretionary fund 
under section 47115(i).’’. 
SEC. 452. INCREASED FUNDING FOR AIRWAY FACILITIES 
IMPROVEMENT. 
Section 48101(a)(4) of title 49, United States Code, 
is amended by striking ‘‘$2,914,000,000’’ and inserting 
‘‘$3,859,000,000’’.
Subtitle F—Maritime 
Infrastructure Investment 
SEC. 461. MARINE TRANSPORTATION SYSTEM INFRASTRUC-
TURE. 
(a) MARITIME LOAN GUARANTEES.—For expenses 
under the loan guarantee program authorized by title XI 
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 
et seq.) there is authorized to be appropriated, in addition 
to any other amounts authorized for such expenses, 
$100,000,000 for fiscal years 2002 and 2003, of which—
(1) $87,000,000 is for the cost (as defined in 
section 502(5) of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a(5))) of loan guarantees under 
the program, including the costs of modifying such 
loans, of which $5,000,000 shall be used to guar-
antee loans for ferries using a streamlined process; 
and 
(2) $13,000,000 is for administrative expenses 
related to loan guarantee commitments under the 
program. 
(b) MARINE TRANSPORTATION SYSTEM IMPROVE-
MENT GRANTS.—
(1) GRANTS
AUTHORITY.—The Secretary of 
Transportation may make a grant to the operator of 
any port or maritime cargo terminal in the United
States to acquire the best available technology, 
equipment, or infrastructure to expedite the trans-
portation of cargo through the port or terminal, re-
spectively. 
(2) QUALIFIED PROJECTS.—A project shall not 
qualify for a grant under this section unless it pro-
vides technology, equipment, or infrastructure that 
will significantly increase the actual throughput of 
cargo through a port or terminal facility. 
(3) COST SHARING.—The Federal share of the 
cost of a project carried out with a grant under this 
subsection shall not exceed 50 percent. 
(4) REGULATIONS.—The Secretary shall, before 
July 1, 2002, prescribe final regulations for issuing 
grants under this subsection. 
(5) AUTHORIZATION OF APPROPRIATIONS.—For 
grants under this subsection there is authorized to 
be appropriated to the Secretary $500,000,000 for 
fiscal years 2002 and 2003. 
Subtitle G—Economic Development 
Infrastructure Investment 
SEC. 471. PUBLIC WORKS AND ECONOMIC DEVELOPMENT. 
Section 701 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3231) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘There are authorized’’; and 
(2) by adding at the end the following: 
‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to 
amounts authorized by subsection (a), there are author-
ized to be appropriated to carry out this Act $900,000,000 
for fiscal year 2002. Such sums shall remain available 
until September 30, 2003.’’. 
SEC. 472. APPALACHIAN REGIONAL DEVELOPMENT. 
Section 401 of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App.) is amended by adding 
at the end the following: 
‘‘(c) ADDITIONAL AUTHORIZATION.—In addition to 
amounts authorized by subsection (a), there are author-
ized to be appropriated to the Commission to carry out 
this Act $200,000,000 for fiscal year 2002. Such sums 
shall remain available until September 30, 2003.’’. 
SEC. 473. DELTA REGIONAL DEVELOPMENT. 
Section 382M of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009aa–12) is amended—
(1) by redesignating subsection (b) as sub-
section (c); 
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ADDITIONAL AUTHORIZATION.—In addition to 
amounts authorized by subsection (a), there are author-
ized to be appropriated to the Authority to carry out this 
subtitle $200,000,000 for fiscal year 2002. Such sums 
shall remain available until September 30, 2003.’’; and 
(3) in subsection (c) (as so redesignated) by 
striking ‘‘subsection (a)’’ and inserting ‘‘subsections 
(a) and (b)’’.
Subtitle H—Water Resources 
Infrastructure Investment 
SEC. 481. INCREASED FUNDING FOR CORPS OF ENGINEERS 
PROJECTS. 
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to other amounts authorized to be appropriated, there 
are authorized to be appropriated to the Secretary of the 
Army $1,200,000,000 for fiscal year 2002 to carry out 
construction, operation, and maintenance activities for au-
thorized civil functions under the supervision of the Chief 
of Engineers. Such sums shall remain available until Sep-
tember 30, 2003. 
(b) ALLOCATION OF AMOUNTS FOR SECURITY PUR-
POSES.—Of the amounts appropriated pursuant to sub-
section (a), not less than $263,000,000 shall be available 
for security purposes at critical infrastructure, as identi-
fied by the Secretary of the Army.
Subtitle I—Public Buildings 
Infrastructure Investment 
SEC. 491. SECURITY ENHANCEMENTS FOR GSA PROP-
ERTIES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to other amounts credited to the Federal Buildings 
Fund established pursuant to section 210(f) of the Fed-
eral Property and Administrative Services Act of 1949 (40 
U.S.C. 490(f)), there is authorized to be appropriated 
$500,000,000 for fiscal year 2002 to be credited to the 
Fund. Such sums shall remain available until September 
30, 2003. 
(b) USE OF FUNDS.—Amounts credited to the Fund 
under this section shall be available to the Administrator 
of General Services to carry out projects and activities for 
enhancing the security of properties under the control of 
the General Services Administration, including general 
purpose office space, courthouses, and border crossing sta-
tions, and for other repair and alteration purposes. 
SEC. 492. SECURITY ENHANCEMENTS FOR JOHN F. KEN-
NEDY CENTER. 
Section 12 of the John F. Kennedy Center Act (20 
U.S.C. 76r) is amended by adding at the end the fol-
lowing:
‘‘(d) ADDITIONAL AUTHORIZATION.—In addition to 
the amounts authorized under subsections (a) and (b), 
there is authorized to be appropriated to the Board 
$50,000,000 for fiscal year 2002 to carry out projects and 
activities for enhancing the security of the building and 
site of the John F. Kennedy Center for the Performing 
Arts and other projects and activities under subpara-
graphs (F), (G), and (H) of section 4(a)(1).’’. 
SEC. 493. SECURITY ENHANCEMENTS FOR SMITHSONIAN 
INSTITUTION. 
In addition to other amounts authorized to be appro-
priated, there is authorized to be appropriated to the 
Smithsonian Institution $50,000,000 for fiscal year 2002 
to carry out projects and activities for enhancing the secu-
rity of the buildings and grounds of the Smithsonian Insti-
tution and for other capital improvement or repair and 
alteration purposes. 
Subtitle J—General Provisions 
SEC. 
495. 
PRIORITY 
CONSIDERATION 
FOR 
SECURITY 
PROJECTS. 
The head of a Federal department or agency may 
provide financial assistance with any increase in funds au-
thorized or made available by, or with any increase in obli-
gation authority made available by, this Act (including the 
amendments made by this Act) only if the recipient of
such assistance certifies to the head of such department 
or agency that the recipient will give priority consideration 
to programs or projects that enhance security, to the ex-
tent that such programs or projects are immediately ready 
to be implemented. 
SEC. 496. TEMPORARY WAIVER OF NON-FEDERAL SHARE. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and subject to subsection (b), in providing fi-
nancial assistance for a program or project with any in-
crease in funds authorized or made available by, or with 
any increase in obligation authority made available by, this 
Act (including the amendments made by this Act (other 
than subtitle A of title I of this Act)), the head of a Fed-
eral department or agency, upon request of the recipient 
of such assistance, may increase the Federal share of the 
cost of the program or project to not to exceed 100 percent 
of such cost. 
(b) REPAYMENTS.—Before increasing the Federal 
share of the cost of a program or project under subsection 
(a), the head of a Federal department or agency shall 
enter into a legally binding agreement with the recipient 
of financial assistance for the program or project under 
which the recipient agrees to repay the United States for 
the increased Federal share of the program or project on 
or before September 30, 2003.
SEC. 497. MAINTENANCE OF EFFORT. 
The head of a Federal department or agency may 
provide financial assistance for a program or project with 
any increase in funds authorized or made available by, or 
with any increase in obligation authority made available 
by, this Act (including the amendments made by this Act) 
for a fiscal year only if the recipient of such assistance 
certifies to the head of such department or agency that 
the aggregate expenditure of funds of the recipient, exclu-
sive of Federal funds, for such program or project will be 
maintained at a level that does not fall below the average 
level of such expenditure for the preceding 2 fiscal years 
of the recipient. 
SEC. 498. LABOR STANDARDS. 
(a) PREVAILING WAGES.—The head of a Federal de-
partment or agency providing financial assistance with 
any increase in funds authorized or made available by, or 
with any increase in obligation authority made available 
by, this Act (including the amendments made by this Act) 
shall ensure that laborers and mechanics employed by con-
tractors and subcontractors in construction work financed 
by such financial assistance will be paid wages not less 
than those prevailing on similar construction in the local-
ity, as determined by the Secretary of Labor under the 
Act of March 3, 1931 (known as the Davis-Bacon Act; 
40 U.S.C. 276a et seq.). The head of the department or
agency shall provide such financial assistance only after 
being assured that required labor standards will be main-
tained on the construction work. 
(b) WAGE RATES.—Wage rates in a collective bar-
gaining agreement negotiated under the Railway Labor 
Act (45 U.S.C. 151 et seq.) are deemed for purposes of 
this section to comply with the Act of March 3, 1931 
(known as the Davis-Bacon Act; 40 U.S.C. 276a et seq.). 
SEC. 499. BUY AMERICA. 
(a) PREFERENCE.—The head of a Federal depart-
ment or agency may provide financial assistance for a 
project with any increase in funds authorized or made 
available by, or with any increase in obligation authority 
made available by, this title (including the amendments 
made by this title) only if steel and manufactured goods 
used in the project are produced in the United States. 
(b) WAIVER.—The head of a Federal department or 
agency may waive subsection (a) if the head of the Federal 
department or agency finds that—
(1) applying subsection (a) would be incon-
sistent with the public interest; 
(2) the steel and goods produced in the United 
States are not produced in a sufficient and reason-
ably available amount or are not of a satisfactory 
quality;
(3) when procuring a facility or equipment with 
any increase in funds or obligation authority de-
scribed in subsection (a)—
(A) the cost of components and subcompo-
nents produced in the United States is more 
than 60 percent of the cost of all components 
of the facility or equipment; and 
(B) final assembly of the facility or equip-
ment has occurred in the United States; or 
(4) including domestic material will increase the 
cost of the overall project by more than 25 percent. 
(c) LABOR COSTS.—In this section, labor costs in-
volved in final assembly are not included in calculating the 
cost of components. 
TITLE 
V—ELEMENTARY 
AND 
SECONDARY EDUCATION IN-
FRASTRUCTURE 
SEC. 501. ELEMENTARY AND SECONDARY EDUCATION IN-
FRASTRUCTURE. 
(a) IN GENERAL.—The Secretary of Education shall 
provide $5,000,000,000 in grants to the State and out-
lying area entities responsible for the financing of edu-
cation facilities (hereinafter in this section referred to as 
the ‘‘State entity’’), on the basis of the same percentage 
as the State educational agency received of the funds allo-
cated to States and outlying areas through the Depart-
ment of Education Appropriations Act, 2002 for carrying 
out part A, title I of the Elementary and Secondary Edu-
cation Act of 1965, for awarding grants in accordance 
with subsection (b) to local educational agencies to enable 
them to make urgent repairs and renovations to public 
school facilities. 
(b) GRANTS.—
(1) IN GENERAL.—A State entity shall award 
urgent school renovation grants to local educational 
agencies under this section on a competitive basis 
that includes consideration of each local educational 
agency applicant’s—
(A) relative percentage of children from 
low-income families; 
(B) need for school repairs and renova-
tions; 
(C) fiscal capacity; and 
(D) plans to maintain the facilities re-
paired or renovated under the grant. 
(2) FEDERAL SHARE.—The Federal share of 
the cost of each project assisted by funds made 
available under this section shall be determined 
based on the percentage of the local educational 
agency’s attendance that is comprised of children 5
to 17 years of age, inclusive, who are from families 
with incomes below the poverty line (as defined by 
the Office of Management and Budget and revised 
annually in accordance with section 673(2) of the 
Community Services Block Grant Act (42 U.S.C. 
9902(2)) applicable to a family of the size involved 
for the most recent fiscal year for which data satis-
factory to the Secretary are available:
If the percentage is: 
The federal share is: 
At least 40% .............................................................
100%
At least 30% but less than 40% ...............................
90%
At least 20% but less than 30% ...............................
80%
At least 10% but less than 20% ...............................
70%
Less than 10% ..........................................................
60%.
(3) EXCESS ALLOCATIONS.—If, after providing 
an opportunity to the public and all local educational 
agencies in the State to comment, consistent with 
any applicable State and local law specifying how 
the comments may be received and how the com-
ments may be reviewed by any member of the public, 
the State entity demonstrates that the amount of 
the State’s allocation exceeds the amount needed to 
address the needs of the local educational agencies 
in the State for school repair and renovation under 
this section—
(A) the State entity shall transfer any ex-
cess portion of that allocation to the State edu-
cational agency; and
(B) the State educational agency shall allo-
cate 100 percent of those excess funds received 
under subsection (a) in accordance with section 
5312 of the Elementary and Secondary Edu-
cation Act of 1965 as amended by Public Law 
107–110 for activities authorized under section 
5331 of the Elementary and Secondary Edu-
cation Act of 1965 as amended by Public Law 
107–110 to be determined by each such local 
educational agency as part of a local strategy 
for improving academic achievement. 
(c) FUNDS FOR SCHOOL RENOVATIONS.—
(1) IN GENERAL.—If a local educational agency 
uses funds for urgent school renovation, then the fol-
lowing provisions shall apply: 
(A) Urgent school renovation shall be lim-
ited to one or more of the following: 
(i) Emergency renovations or repairs 
to the school facilities only to ensure the 
health and safety of students and staff. 
(ii) School facilities modifications nec-
essary to render school facilities accessible 
in order to comply with the Americans 
With Disabilities Act.
(iii) School facilities modifications 
necessary to render school facilities acces-
sible in order to comply with section 504 
of the Rehabilitation Act. 
(iv) Upgrades to existing technology. 
(v) Asbestos abatement or removal 
from school facilities. 
(vi) Security upgrades. 
(2) LIMITATIONS.—No funds received under 
this section for urgent school renovation may be 
used for—
(A) payment of maintenance costs in con-
nection with any projects constructed in whole 
or part with Federal funds provided under this 
section; or 
(B) stadiums or other facilities primarily 
used for athletic contests or exhibitions or other 
events for which admission is charged to the 
general public. 
SEC. 502. LABOR STANDARDS. 
The Secretary of Education shall ensure that laborers 
and mechanics employed by contractors and subcontrac-
tors in construction work financed by this title will be paid 
wages not less than those prevailing on similar construc-
tion in the locality, as determined by the Secretary of
Labor under the Act of March 3, 1931 (known as the 
Davis-Bacon Act; 40 U.S.C. 276a et seq.). 
TITLE VI—REVENUE OFFSETS 
SEC. 601. TOP INDIVIDUAL INCOME TAX MARGINAL RATE 
NOT REDUCED BELOW 2003 LEVEL. 
(a) IN GENERAL.—The table contained in paragraph 
(2) of section 1(i) of the Internal Revenue Code of 1986 
is amended—
(1) 
by 
striking 
‘‘37.6%’’ 
and 
inserting 
‘‘38.6%’’, and 
(2) 
by 
striking 
‘‘35.0%’’ 
and 
inserting 
‘‘38.6%’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 602. REINSTATEMENT OF ESTATE TAX FOR ESTATE 
OVER $5,000,000; REPEAL OF CARRYOVER 
BASIS. 
(a) REINSTATEMENT OF ESTATE TAX.—
(1) IN GENERAL.—Subtitles A and E of title V 
of the Economic Growth and Tax Relief Reconcili-
ation Act of 2001, and the amendments made by 
such subtitles, are hereby repealed; and the Internal 
Revenue Code of 1986 shall be applied as if such 
subtitles, and amendments, had never been enacted.
(2) SUNSET NOT TO APPLY.—
(A) Subsection (a) of section 901 of the 
Economic Growth and Tax Relief Reconciliation 
Act of 2001 is amended by striking ‘‘this Act’’ 
and all that follows and inserting ‘‘this Act 
(other than title V) shall not apply to taxable, 
plan, or limitation years beginning after Decem-
ber 31, 2010.’’. 
(B) Subsection (b) of such section 901 is 
amended by striking ‘‘, estates, gifts, and trans-
fers’’. 
(3) CONFORMING
AMENDMENTS.—Subsections 
(d) and (e) of section 511 of the Economic Growth 
and Tax Relief Reconciliation Act of 2001, and the 
amendments made by such subsections, are hereby 
repealed; and the Internal Revenue Code of 1986 
shall be applied as if such subsections, and amend-
ments, had never been enacted. 
(b) INCREASE IN EXCLUSION EQUIVALENT OF UNI-
FIED CREDIT TO $5,000,000.—Subsection (c) of section 
2010 of the Internal Revenue Code of 1986 (relating to 
applicable credit amount) is amended by striking all that 
follows ‘‘the applicable exclusion amount’’ and inserting 
‘‘. For purposes of the preceding sentence, the applicable 
exclusion amount is $5,000,000.’’.
(c) MAXIMUM ESTATE TAX RATE TO REMAIN AT 
2003 LEVEL.—
(1) IN GENERAL.—The table contained in para-
graph (1) of section 2001(c) of such Code is amend-
ed by striking the 2 highest brackets and inserting 
a new bracket to read as follows:
‘‘Over $2,000,000 ..........................
$780,000, plus 49% of the excess 
over $2,000,000.’’.
(2) CONFORMING AMENDMENT.—Paragraph (2) 
of section 2001(c) of such Code is hereby repealed. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2003.
Æ