(c) OBLIGATIONS ISSUED FOR PURCHASE BY TRUST 
FUND.—The purposes for which obligations of the United 
States may be issued under chapter 31 of title 31, United 
States Code, are extended to authorize the issuance at par 
of public debt obligations for purchase by the Trust Fund. 
Such obligations issued for purchase by the Trust Fund 
shall have dates of maturity fixed with due regard for the 
needs of the Trust Fund. Such obligations shall bear inter-
est at a rate equal to— 
(1) except as provided in paragraph (2), the av-
erage market yield (computed by the Managing 
Trustee on the basis of market quotations as of the 
end of the calendar month preceding the date of 
such issue) on all marketable interest-bearing obliga-
tions of the United States forming a part of the 
public debt that are not due or callable until after 
the expiration of four years from the end of such 
calendar month; or 
(2) in a case in which such average market 
yield is not a multiple of 0.1 percent, the multiple 
of 0.1 percent nearest such market yield. 
(d) OTHER OBLIGATIONS.—The Managing Trustee 
may purchase interest-bearing obligations of the United 
States that are not described in subsection (c) or obliga-
tions guaranteed as to both principal and interest by the
United States, on original issue or at the market price, 
only in cases in which the trustee determines that the pur-
chase of obligations described in this paragraph is in the 
public interest. 
(e) DISPOSITION
AND REDEMPTION
OF OBLIGA-
TIONS.—Any obligations acquired by the Trust Fund (ex-
cept public debt obligations issued exclusively to the Trust 
Fund) may be sold by the Managing Trustee at the mar-
ket price, and such public debt obligations may be re-
deemed at par plus accrued interest. 
(f) CREDITING OF INTEREST AND PROCEEDS.—The 
interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Trust Fund shall be cred-
ited to and form a part of the Trust Fund. 
SEC. 204. PAYMENTS FROM TRUST FUND. 
The Managing Trustee shall pay from time to time 
from the Trust Fund such amounts as the Secretary of 
Labor certifies are necessary to make the payments pro-
vided for by section 102, and payments with respect to 
administrative expenses under section 205. 
SEC. 205. ADMINISTRATIVE EXPENSES. 
(a) AVAILABILITY OF TRUST FUND.—Under regula-
tions that shall be prescribed by the Secretary of Labor, 
funds shall be made available from the Trust Fund in con-
nection with the administration of this Act and the admin-
istration of related provisions of the Internal Revenue 
Code of 1986 in the same manner and extent as funds 
are made available from the trust funds referred to in sec-
tion 201(g) of the Social Security Act (42 U.S.C. 401(g)) 
in connection with the administration of the relevant pro-
visions referred to in such section. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be made available for expenditure, out 
of the Trust Fund, such amounts as Congress may deter-
mine to be appropriate to pay— 
(1) the costs of the part of the administration 
of this Act for which the Secretary of Labor is re-
sponsible; and 
(2) the costs of carrying out the functions of 
the Social Security Administration specified in sec-
tion 232 of the Social Security Act (42 U.S.C. 432) 
(made applicable under subsection (j)), that relate to 
the administration of provisions of the Internal Rev-
enue Code of 1986, other than those costs excluded 
under the regulations of the Secretary of Labor pre-
scribed pursuant to paragraph (1). 
(c) GIFTS AND BEQUESTS.—The Managing Trustee 
may accept on behalf of the United States money gifts 
and bequests made unconditionally to the Trust Fund for 
the benefit of the Trust Fund or any activity financed
through the Trust Fund and such gifts and bequests shall 
be deposited into the Trust Fund. 
(d) PROCESSING OF TAX DATA.—Section 232 of the 
Social Security Act (42 U.S.C. 432) shall apply with re-
spect to this Act, in the same manner and to the same 
extent as such section applies with respect to title II of 
the Social Security Act (42 U.S.C. 401 et seq.). 
SEC. 206. AMENDMENTS TO THE INTERNAL REVENUE CODE 
OF 1986. 
(a) TAX
ON EMPLOYERS.—Section 3111 of such 
Code (relating to tax on employers) is amended— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) FAMILY AND MEDICAL INSURANCE.— 
‘‘(1) IN GENERAL.—In addition to the taxes im-
posed by subsections (a) and (b), there is imposed 
on every employer an excise tax, with respect to hav-
ing individuals in such employer’s employ, equal to 
0.4 percent of the wages paid by such employer with 
respect to employment (as defined in section 
3121(b)). 
‘‘(2) EXCEPTION FOR EMPLOYERS WITH EQUIV-
ALENT OR BETTER PLAN.—Paragraph (1) shall not
apply with respect to a period of employment by an 
employer during which the Secretary of Labor deter-
mines the employer has in effect a plan which is 
equivalent to or better than the Family and Medical 
Insurance Program (established under the Family 
and Medical Insurance Act of 2005). For purposes 
of the preceding sentence, the Secretary of Labor 
shall prescribe such regulations as may be appro-
priate or necessary, including regulations requiring 
documentation of employer programs.’’. 
(b) SELF-EMPLOYMENT TAX.—Section 1401 of such 
Code is amended— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) FAMILY AND MEDICAL INSURANCE.—In addi-
tion to the taxes imposed by subsections (a) and (b), there 
is imposed for each taxable year, on the self-employment 
income of every individual who has elected to participate 
in the Family and Medical Insurance Program (estab-
lished under the Family and Medical Insurance Act of 
2005) a tax equal to 0.4 percent of the amount of the 
self-employment income for such taxable year.’’. 
(c) EFFECTIVE DATE.—
(1) EMPLOYMENT
TAXES.—The amendments 
made by subsection (a) shall apply to wages paid on 
or after January 1, 2006. 
(2) SELF-EMPLOYMENT
TAX.—The amend-
ments made by subsection (b) shall apply to taxable 
years beginning on or after January 1, 2006. 
Æ