To provide for a demonstration project under which a basic housing allowance will be afforded to Federal law enforcement officers serving in high-cost areas, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Project to Protect America Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the current system of compensation for Federal law 
        enforcement officers (hereinafter in this section referred to 
        as ``FLEOs'') must be reformed in order to deal with 
        recruitment, retention, and morale problems associated with 
        assignments to high-cost areas;
            (2) as the Office of Personnel Management has confirmed, 
        limitations on premium pay are contributing to the pay 
        compression problem which, in turn, may be undermining the 
        efficacy of incentives designed to encourage FLEOs to assume 
        greater supervisory and managerial duties;
            (3) the security of the Nation, as the 9-11 Commission 
        Report confirmed, depends on effective Federal law enforcement; 
        this is particularly true of large metropolitan areas, which 
        should be staffed with FLEOs who are fairly compensated for 
        their services;
            (4) the combination of rising living costs and lagging 
        compensation threatens to worsen the significant recruitment 
        and retention problems already facing Federal law enforcement 
        agencies;
            (5) the problems described in paragraph (4) are especially 
        serious among law enforcement officers of the Federal Bureau of 
        Investigation, who are recruited and subject to assignment 
        nationwide, and, upon assignment, are expected to adjust 
        rapidly; but who, particularly in the case of those assigned to 
        high-cost areas, often experience significant difficulties in 
        finding adequate and affordable housing; and
            (6) the Office of Personnel Management should experiment 
        with innovative approaches to addressing compensation problems 
        in the Federal workforce and, in the case of FLEOs, should look 
        to the Department of Defense as a model for providing a 
        reasonable housing allowance to assist those assigned to high-
        cost areas.

SEC. 3. HOUSING ALLOWANCE DEMONSTRATION PROJECT.

    (a) In General.--The Office of Personnel Management shall provide 
for a demonstration project under which eligible employees will be paid 
a basic housing allowance.
    (b) Eligible Employees.--For purposes of this Act, the term 
``eligible employee'' means an employee who holds a position that--
            (1) is in or under the Federal Bureau of Investigation;
            (2)(A) is classified under chapter 51 of title 5, United 
        States Code, as a GS-1811 position; or
            (B) if the GS-1811 classification is redesignated or 
        abolished or the qualification requirements for the GS-1811 
        classification are modified after the date of enactment of this 
        Act, meets the qualification requirements for the GS-1811 
        classification either as then currently in effect or as in 
        effect on such date of enactment; and
            (3) is within a high-cost area.
Such term does not include an employee who is serving on a temporary 
basis or a part-time career employment basis (within the meaning of 
section 3401 of such title 5) or who is a reemployed annuitant (within 
the meaning of section 8344 or 8468 of such title 5).
    (c) Identification of High-Cost Areas.--
            (1) Criteria.--
                    (A) In general.--An area shall, with respect to any 
                calendar year, be considered to be a high-cost area for 
                purposes of this Act if, with respect to the calendar 
                year last ending before the start of such fiscal year--
                            (i) the average monthly housing costs for 
                        that area exceeded the average monthly housing 
                        costs for the continental United States by at 
                        least 10 percent (the dollar amount of that 
                        difference hereinafter in this Act referred to 
                        as the ``housing cost differential''); or
                            (ii) such area was one of the 10 areas 
                        within the continental United States having the 
                        highest cost of living (identified in such 
                        manner as the Office of Personnel Management 
                        shall determine) and for which average monthly 
                        housing costs exceeded the average monthly 
                        housing costs for the continental United 
                        States.
                    (B) Same differential computation rule applies.--
                The housing cost differential for any area identified 
                under subparagraph (A)(ii) shall be determined in the 
                same manner as described in subparagraph (A)(i), but 
                disregarding the 10-percent requirement.
            (2) Annual determinations.--In order to carry out this 
        subsection, the Office of Personnel Management shall (for each 
        fiscal year during which the demonstration project remains in 
        operation) identify which areas satisfy paragraph (1).
            (3) Costs of adequate housing.--Determinations of monthly 
        housing costs under this subsection shall be based on the costs 
        of renting adequate housing typically borne by individuals 
        residing within the area involved who have income levels 
        comparable to those of eligible employees within the same area 
        (taking into account, with respect to eligible employees, only 
        amounts payable to such employees under title 5, United States 
        Code).
            (4) Definition of an area.--For purposes of this section, 
        the term ``area'' means a metropolitan statistical area within 
        the continental United States.
    (d) Basic Housing Allowance.--
            (1) In general.--The Office of Personnel Management shall 
        prescribe the basic housing allowance payable to eligible 
        employees within each area that has been identified under 
        subsection (c) as a high-cost area for purposes of the fiscal 
        year involved.
            (2) Amount.--The amount of the basic housing allowance for 
        each high-cost area shall be equal to such amount as the Office 
        of Personnel Management shall determine, except that--
                    (A) determinations under this paragraph shall be 
                made in a manner based on section 403(b) of title 37, 
                United States Code (relating to basic allowance for 
                housing for members of the uniformed services); and
                    (B) in no event may any such amount be less than 
                the housing cost differential determined under 
                subsection (c) for the area and fiscal year involved.
            (3) Manner of payment.--A basic housing allowance shall be 
        payable at the same time and in the same manner as basic pay.
            (4) Nonreduction rule.--Notwithstanding any other provision 
        of this Act, the basic housing allowance payable to an 
        individual who continuously remains an eligible employee within 
        the same high-cost area may not be reduced by reason of any 
        fluctuations in housing costs.
            (5) Rule of construction.--Nothing in this Act shall be 
        considered to permit or require any reduction in basic pay by 
        reason of an individual's eligibility for or receipt of a basic 
        housing allowance.
    (e) Applicability of Provisions Governing Demonstration Projects 
Generally.--The demonstration project shall be conducted in accordance 
with section 4703 of title 5, United States Code, except that such 
project shall not be subject to the provisions of subsection (d)(1) 
thereof and shall not be taken into account for purposes of applying 
the numerical limitation under subsection (d)(2) thereof.
    (f) Duration.--The demonstration project--
            (1) shall be conducted over the 5-year period beginning on 
        the first day of the first fiscal year beginning at least 30 
        days after the date of enactment of this Act; and
            (2) may, subject to the availability of appropriations, be 
        extended for one or more additional 12-month periods after the 
        end of the 5-year period referred to in paragraph (1).
    (g) Reporting Requirement.--Not later than 90 days after the date 
on which the demonstration project terminates, the Office of Personnel 
Management shall submit to Congress a report on such project, together 
with recommendations for any legislation that the Office considers 
appropriate. Such report shall specifically address the effect of the 
housing allowance on employee retention, recruitment, and morale, and 
shall be based on appropriate data as well as comments received from 
management officials, employees, and other interested persons 
(including professional associations representing employees).
    (h) Other Definitions.--For purposes of this section--
            (1) the term ``employee'' has the meaning given such term 
        by section 2105 of title 5, United States Code;
            (2) the term ``management official'' has the meaning given 
        such term by section 7103 of such title 5; and
            (3) the term ``continental United States'' means the 
        several States and the District of Columbia, but does not 
        include Alaska or Hawaii.

SEC. 4. EXCLUSION FROM LIMITATION ON PREMIUM PAY.

    Section 5547 of title 5, United States Code, is amended--
            (1) in subsection (a), by striking ``5545a,'';
            (2) in subsection (c), by striking ``or 5545a,''; and
            (3) in subsection (d), by striking the period and inserting 
        ``or a criminal investigator who is paid availability pay under 
        section 5545a.''.

Summary: Project to Protect America Act - Requires the Office of Personnel Management to provide for a demonstration project under which eligible federal employees who are holding positions that: (1) are in or under the Federal Bureau of Investigation (FBI); (2) are classified under a GS 1811 position (criminal investigative series regarding criminal investigators); and (3) are within high-cost areas will be be paid a basic housing allowance.