II Calendar No. 464 117th CONGRESS 2d Session H. R. 5376 IN THE SENATE OF THE UNITED STATES August 2, 2022 Received; read the first time August 3, 2022 Read the second time and placed on the calendar AN ACT To provide for reconciliation pursuant to title II of S. Con. Res. 14.

I Committee on Agriculture A General provisions 10001. Definitions In this title: (1) The term insular area has the meaning given such term in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 ). (2) The term Secretary means the Secretary of Agriculture. B Forestry 11001. National forest system restoration and fuels reduction projects (a) Appropriations In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $10,000,000,000 for hazardous fuels reduction projects on National Forest System land within the wildland-urban interface; (2) $4,000,000,000 for, on a determination made solely by the Secretary that hazardous fuels reduction projects within the wildland-urban interface described in paragraph (1) have been planned to protect, to the extent practicable, at-risk communities, hazardous fuels reduction projects on National Forest System land outside the wildland-urban interface that are— (A) primarily noncommercial in nature, provided that, in accordance with the best available science, the harvest of merchantable materials shall be ecologically appropriate for restoration and to enhance ecological health and function, and any sale of merchantable materials under this paragraph shall be limited to small diameter trees or biomass that are a byproduct of hazardous fuel reduction projects; (B) collaboratively developed; and (C) carried out in a manner that enhances the ecological integrity and achieves the restoration of a forest ecosystem; maximizes the retention of old-growth and large trees, as appropriate for the forest type; and prioritizes prescribed fire as the primary means to achieve modified wildland fire behavior; (3) $1,000,000,000 for vegetation management projects carried out solely on National Forest System land that the Secretary shall select following the receipt of proposals submitted in accordance with subsections (a), (b), and (c) of section 4003 of the Omnibus Public Land Management Act of 2009 ( 16 U.S.C. 7303 ); (4) $400,000,000 for vegetation management projects on National Forest System land carried out in accordance with a water source management plan or a watershed protection and restoration action plan; (5) $400,000,000 for vegetation management projects on National Forest System land that— (A) maintain, or contribute toward the restoration of, reference old growth characteristics, including structure, composition, function, and connectivity; (B) prioritize small diameter trees and prescribed fire to modify fire behavior; and (C) maximize the retention of large trees, as appropriate for the forest type; (6) $450,000,000 for the Legacy Roads and Trails program of the Forest Service; (7) $350,000,000 for National Forest System land management planning and monitoring, prioritized on the assessment of watershed, ecological, and carbon conditions on National Forest System land and the revision and amendment of older land management plans that present opportunities to protect, maintain, restore, and monitor ecological integrity, ecological conditions for at-risk species, and carbon storage; (8) $100,000,000 for maintenance of trails on National Forest System land, with a priority on trails that provide to underserved communities access to National Forest System land; (9) $100,000,000 for capital maintenance and improvements on National Forest System land, with a priority on maintenance level 3, 4, and 5 roads and improvements that restore ecological integrity and conditions for at-risk species; (10) $100,000,000 to provide for more efficient and more effective environmental reviews by the Chief of the Forest Service in satisfying the obligations of the Chief of the Forest Service under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 through 4370m–12); (11) $50,000,000 to develop and carry out activities and tactics for the protection of older and mature forests on National Forest System land, including completing an inventory of older and mature forests within the National Forest System; (12) $50,000,000 to develop and carry out activities and tactics for the maintenance and restoration of habitat conditions necessary for the protection and recovery of at-risk species on National Forest System land; (13) $50,000,000 to carry out post-fire recovery plans on National Forest System land that emphasize the use of locally adapted native plant materials to restore the ecological integrity of disturbed areas and do not include salvage logging; and (14) $50,000,000 to develop and carry out nonlethal activities and tactics to reduce human-wildlife conflicts on National Forest System land. (b) Priority for funding For projects described in paragraphs (1) through (5) of subsection (a), the Secretary shall prioritize for implementation projects— (1) for which an environmental assessment or an environmental impact statement required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 through 4370m–12) has been completed; (2) that are collaboratively developed; or (3) that include opportunities to restore sustainable recreation infrastructure or access or accomplish other recreation outcomes on National Forest System lands, if the opportunities are compatible with the primary restoration purposes of the project. (c) Limitations None of the funds made available by this section may be used for any activity— (1) conducted in a wilderness area or wilderness study area; (2) that includes the construction of a permanent road or permanent trail; (3) that includes the construction of a temporary road, except in the case of a temporary road that is decommissioned by the Secretary not later than 3 years after the earlier of— (A) the date on which the temporary road is no longer needed; and (B) the date on which the project for which the temporary road was constructed is completed; (4) inconsistent with the applicable land management plan; (5) inconsistent with the prohibitions of the rule of the Forest Service entitled Special Areas; Roadless Area Conservation (66 Fed. Reg. 3244 (January 12, 2001)), as modified by subparts C and D of part 294 of title 36, Code of Federal Regulations; or (6) carried out on any land that is not National Forest System land, including other forested land on Federal, State, Tribal, or private land. (d) Definitions In this section: (1) At-risk community The term at-risk community has the meaning given the term in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 ). (2) Collaboratively developed The term collaboratively developed means, with respect to a project located exclusively on National Forest System land, that the project is developed and implemented through a collaborative process that— (A) includes multiple interested persons representing diverse interests, except such persons shall not be employed by the Federal government or be representatives of foreign entities; and (B) (i) is transparent and nonexclusive; or (ii) meets the requirements for a resource advisory committee under subsections (c) through (f) of section 205 of the Secure Rural Schools and Community Self-Determination Act of 2000 ( 16 U.S.C. 7125 ). (3) Decommission The term decommission means, with respect to a road— (A) reestablishing native vegetation on the road; (B) restoring any natural drainage, watershed function, or other ecological processes that were disrupted or adversely impacted by the road by removing or hydrologically disconnecting the road prism and reestablishing stable slope contours; and (C) effectively blocking the road to vehicular traffic, where feasible. (4) Ecological integrity The term ecological integrity has the meaning given the term in section 219.19 of title 36, Code of Federal Regulations (as in effect on the date of enactment of this Act). (5) Hazardous fuels reduction project The term hazardous fuels reduction project means an activity, including the use of prescribed fire, to protect structures and communities from wildfire that is carried out on National Forest System land. (6) Restoration The term restoration has the meaning given the term in section 219.19 of title 36, Code of Federal Regulations (as in effect on the date of enactment of this Act). (7) Vegetation management project The term vegetation management project means an activity carried out on National Forest System land to enhance the ecological integrity and achieve the restoration of a forest ecosystem through the removal of vegetation, the use of prescribed fire, the restoration of aquatic habitat, or the decommissioning of an unauthorized, temporary, or system road. (8) Water source management plan The term water source management plan means a plan developed under section 303(d)(1) of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6542(d)(1) ). (9) Watershed protection and restoration action plan The term watershed protection and restoration action plan means a plan developed under section 304(a)(3) of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6543(a)(3) ). (10) Wildland-urban interface The term wildland-urban interface has the meaning given the term in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 ). (e) Limitations Nothing in this section shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes. (f) Cost-sharing requirement Any partnership agreements, including cooperative agreements and mutual interest agreements, using funds made available under this section shall be subject to a non-Federal cost-share requirement of not less than 20 percent of the project cost, which may be waived at the discretion of the Secretary. 11002. Non-Federal land forest restoration and fuels reduction projects and research (a) Appropriations In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $2,000,000,000 to award grants to Tribal, State, or local governments or the government of the District of Columbia, regional organizations, special districts, or nonprofit organizations to support, on non-Federal land, forest restoration and resilience projects, including projects to reduce the risk of wildfires and establish defensible space around structures within at-risk communities (as defined in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 )); (2) $1,000,000,000 to award grants to Tribal, State, or local governments or the government of the District of Columbia, regional organizations, special districts, or nonprofit organizations to implement community wildfire protection plans (as defined in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 )) in existence on the date of the enactment of this Act, purchase firefighting equipment, provide firefighter training, and increase the capacity for planning, coordinating, and monitoring projects on non-Federal land to protect at-risk communities (as defined in section 101 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6511 )); (3) $250,000,000 to award grants to Tribal, State, or local governments or the government of the District of Columbia, regional organizations, special districts, or nonprofit organizations for projects on non-Federal land to aid in the recovery and rehabilitation of burned forested areas, including reforestation; (4) $175,000,000 to award grants to Tribal, State, or local governments or the government of the District of Columbia, regional organizations, special districts, or nonprofit organizations for projects on non-Federal land to expand equitable outdoor access and promote tourism on non-Federal forested land for members of underserved groups; (5) $150,000,000 for the State Fire Assistance and Volunteer Fire Assistance programs established pursuant to section 10(b) of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2106(b) ) to be distributed at the discretion of the Secretary; (6) $150,000,000 for the implementation of State-wide forest resource strategies under section 2A of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2101a ); (7) $250,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2109a ) for providing through that program a cost share to carry out climate mitigation or forest resilience practices in the case of underserved forest landowners, subject to the condition that subsection (h) of that section shall not apply; (8) $250,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2109a ) for providing through that program grants to support the participation of underserved forest landowners in emerging private markets for climate mitigation or forest resilience, subject to the condition that subsection (h) of that section shall not apply; (9) $250,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2109a ) for providing through that program grants to support the participation of forest landowners who own less than 2,500 acres of forest land in emerging private markets for climate mitigation or forest resilience, subject to the condition that subsection (h) of that section shall not apply; (10) $500,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2109a ) to provide grants to states and other eligible entities to provide payments to owners of private forest land for implementation of forestry practices on private forest land, that are determined by the Secretary, based on the best available science, to provide measurable increases in carbon sequestration and storage beyond customary practices on comparable land, subject to the conditions that— (A) those payments shall not preclude landowners from participation in other public and private sector financial incentive programs; and (B) subsection (h) of that section shall not apply; (11) $50,000,000 for the forest inventory and analysis program established under section 3(e) of the Forest and Rangeland Renewable Resources Research Act of 1978 ( 16 U.S.C. 1642(e) ) for activities and tactics to accelerate and expand existing research efforts to improve forest carbon monitoring technologies to better predict changes in forest carbon due to climate change; (12) $100,000,000 for the forest inventory and analysis program established under section 3(e) of the Forest and Rangeland Renewable Resources Research Act of 1978 ( 16 U.S.C. 1642(e) ) to carry out recommendations from a panel of relevant experts convened by the Secretary that has reviewed and, based on the review, issued recommendations regarding the current priorities and future needs of the forest inventory and analysis program with respect to climate change, forest health, sustainable wood products, and increasing carbon storage in forests; (13) $50,000,000 for the forest inventory and analysis program established under section 3(e) of the Forest and Rangeland Renewable Resources Research Act of 1978 ( 16 U.S.C. 1642(e) ) to provide enhancements to the technology managed and used by the forest inventory and analysis program, including cloud computing and remote sensing for purposes such as small area estimation; (14) $775,000,000 to provide grants under the wood innovation grant program under section 8643 of the Agriculture Improvement Act of 2018 ( 7 U.S.C. 7655d ), including for the construction of new facilities that advance the purposes of the program, subject to the conditions that the amount of such a grant shall be not more than $5,000,000; notwithstanding subsection (d) of that section, a recipient of such a grant shall provide funds equal to not less than 50 percent of the amount received under the grant, to be derived from non-Federal sources; and a priority shall be placed on projects that create a financial model for addressing forest restoration needs on public or private forest land; and (15) $50,000,000 for the research mission area of the Forest Service to carry out greenhouse gas life cycle analyses of domestic wood products. (b) Funding for restoration on non-Federal areas by States The Secretary may use amounts made available by this section to carry out eligible projects as determined by the Secretary, authorized in subsection (a) on non-Federal land upon the request of the Governor of that State, or, in the case of the District of Columbia, the Mayor. (c) Cost-sharing requirement Any partnership agreements, including cooperative agreements and mutual interest agreements, using funds made available under this section shall be subject to a non-Federal cost-share requirement of not less than 20 percent of the project cost, which may be waived at the discretion of the Secretary. (d) Limitations Nothing in this section shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes. 11003. State and private forestry conservation programs (a) Appropriations In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $1,250,000,000 to provide competitive grants to States through the Forest Legacy Program established under section 7 of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2103c ) to acquire land and interests in land, with priority given to grant applications that offer significant natural carbon sequestration benefits, contribute to the resilience of community infrastructure, local economies, or natural systems, or provide benefits to underserved populations; (2) $2,500,000,000 to provide multi-year, programmatic, competitive grants to a State agency, a local governmental entity, and agency or governmental entity of the District of Columbia, an Indian Tribe, or a nonprofit organization through the Urban and Community Forestry Assistance program established under section 9(c) of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2105(c) ) for tree planting and related activities to increase tree equity and community tree canopy and associated societal and climate co-benefits, with a priority for projects that benefit underserved populations; and (3) $100,000,000 for the acquisition of urban and community forests through the Community Forest and Open Space Program of the Forest Service. (b) Waiver Any non-Federal cost-share requirement otherwise applicable to projects carried out under this section may be waived at the discretion of the Secretary. 11004. Limitation The funds made available under this subtitle are subject to the condition that the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; or (2) use any other funds available to the Secretary to satisfy obligations initially made under this subtitle. 11005. Appropriations In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000 to remain available until September 30, 2031, for administrative costs of the agencies and offices of the Department of Agriculture for costs related to implementing this subtitle. C Rural development and agricultural credit and outreach 1 Rural development 12001. Additional support for USDA rural water programs In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, and notwithstanding sections 381E through 381H and 381N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009d through 2009g and 2009m), $97,000,000, to remain available until September 30, 2031, for the cost of grants for rural water and waste water programs authorized by sections 306, 306C, and 306D and described in sections 306C(a)(2) and 306D of the Consolidated Farm and Rural Development Act in persistent poverty counties (or, notwithstanding any population limits specified in section 343 of the Consolidated Farm and Rural Development Act, a county seat of a persistent poverty county with a population that does not exceed the authorized population limit by more than 10 percent), Tribal lands, colonias, and insular areas, subject to the condition that the performance of any construction work completed with amounts provided under this section meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) ). 12002. USDA rural water grants for lead remediation In addition to amounts otherwise made available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated and notwithstanding sections 381E through 381H and 381N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009d through 2009g and 2009m), $970,000,000, to remain available until September 30, 2031, notwithstanding section 306C(a)(2)(A) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926c(a)(2)(A) ), for grants under sections 306C(a)(1)(A) and 306(a)(2) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926c(a)(1)(A) and 1926(a)(2)) for the purpose of replacement of service lines that contain lead, subject to the condition that the performance of any construction work completed with amounts provided under this section meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) ). 12003. Additional funding for electric loans for renewable energy (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,880,000,000, to remain available until September 30, 2031, for the cost of loans under section 317 of the Rural Electrification Act of 1936 ( 7 U.S.C. 940g ), including for projects that store electricity that supports the types of eligible projects under such section, which shall be forgiven in whole or in part based on how the borrower and the project meets the terms and conditions for loan forgiveness consistent with the purposes of such section established by the Secretary, subject to the condition that the performance of any construction work completed with amounts provided under this section meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) ). (b) Limitation The Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031. 12004. Rural energy savings program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until September 30, 2031, to carry out section 6407 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107a ) and this section, subject to the condition that the performance of any construction work completed with amounts provided under this section meet the condition described in section 9003(f) of such Act ( 7 U.S.C. 8103(f) ). (b) Use of funds (1) In general Except as provided in paragraph (2) of this subsection, at the election of an eligible entity (as defined in section 6407(b) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107a(b) )) to which a loan is made under section 6407(c) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107a(c) ), the Secretary shall make a grant to the eligible entity in an amount equal to not more than 5 percent of the loan amount for the purposes of costs incurred in— (A) applying for a loan received under section 6407(c) of such Act; (B) making a loan under section 6407(d) of such Act; (C) making repairs to the property of a qualified consumer that facilitate the energy efficiency measures for the property financed through a loan under section 6407(d) of such Act; (D) entering into a contract under section 6407(e) of such Act; or (E) carrying out the duties of an eligible entity under section 6407 of such Act. (2) Persistent poverty counties In the case that the grant is for the purpose of making a loan under section 6407(d) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107a(d) ) to a qualified consumer (as defined in section 6407(b) of such Act) in a persistent poverty county (as determined by the Secretary), the percentage limitation in paragraph (1) of this subsection shall be 10 percent. (c) Limitation The Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031, or any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. 12005. Rural Energy for America Program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, for eligible projects under section 9007 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107 ) and subject to the conditions that the performance of any construction work completed with amounts provided under this subsection meet the condition described in section 9003(f) of such Act, and notwithstanding section 9007(c)(3)(A) of such Act, the amount of a grant shall not exceed 50 percent of the cost of the activity carried out using the grant funds— (1) $820,250,000 for fiscal year 2022, to remain available until September 30, 2031; and (2) $180,276,500 for each of fiscal years 2023 through 2027, to remain available until September 30, 2031. (b) Underutilized renewable energy technologies In addition to amounts otherwise available, there is appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, to provide grants and loans guaranteed by the Secretary (including the costs of such loans) under the program described in subsection (a) of this section relating to underutilized renewable energy technologies, and to provide technical assistance for applying to the program described in subsection (a) of this section, including for underutilized renewable energy technologies, subject to the conditions that the performance of any construction work completed with amounts provided under this subsection meet the condition described in section 9003(f) of such Act and, notwithstanding section 9007(c)(3)(A) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107(c)(3)(A) ), the amount of a grant shall not exceed 50 percent of the cost of the activity carried out using the grant funds, and to the extent the following amounts remain available at the end of each fiscal year, the Secretary shall use such amounts in accordance with subsection (a) of this section— (1) $144,750,000 for fiscal year 2022, to remain available until September 30, 2031; and (2) $31,813,500 for each of fiscal years 2023 through 2027, to remain available until September 30, 2031. (c) Limitation The Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031 or any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. 12006. Biofuel infrastructure and agriculture product market expansion (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $960,000,000, to remain available until September 30, 2031, to carry out this section. (b) Use of funds The Secretary shall use the amounts made available by subsection (a) to provide grants, for which the Federal share shall be not more than 75 percent of the total cost of carrying out a project for which the grant is provided, on a competitive basis, to transportation fueling facilities and distribution facilities, including fueling stations, convenience stores, hypermarket retailer fueling stations, fleet facilities, as well as fuel terminal operations, mid-stream partners, and heating oil distribution facilities or equivalent entities, subject to the condition that the performance of any construction work completed with amounts provided under this section shall meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) )— (1) to install, retrofit, or otherwise upgrade fuel dispensers or pumps and related equipment, storage tank system components, and other infrastructure required at a location related to dispensing certain biofuels blends to ensure the increased sales of fuels with high levels of commodity-based ethanol and biodiesel that are at or greater than the levels required in the Notice of Funding Availability for the Higher Blends Infrastructure Incentive Program for Fiscal Year 2020, published in volume 85 of the Federal Register (85 Fed. Reg. 26656), as determined by the Secretary; and (2) to build and retrofit distribution systems for ethanol blends, traditional and pipeline biodiesel terminal operations (including rail lines), and home heating oil distribution centers or equivalent entities— (A) to blend biodiesel; and (B) to carry ethanol and biodiesel. (c) Limitation The Secretary may not limit the amount of funding an eligible entity may receive under this section. 12007. USDA assistance for rural electric cooperatives (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,700,000,000, to remain available until September 30, 2031, for the long-term resiliency, reliability, and affordability of rural electric systems, by providing to an eligible entity (defined as an electric cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 and is or has been a Rural Utilities Service electric loan borrower pursuant to the Rural Electrification Act of 1936 or serving a predominantly rural area) assistance under paragraphs (1) and (2) by awarding such assistance to eligible entities for purposes described in section 310B(a)(2)(C) of the Consolidated Farm and Rural Development Act (provided that the term renewable energy system in that paragraph has the meaning given such term in section 9001(16) of the Farm Security and Rural Investment Act of 2002) and for carbon capture and storage systems, that will achieve the greatest reduction in greenhouse gas emissions associated with rural electric systems using such assistance and that will otherwise aid disadvantaged rural communities (as determined by the Secretary), subject to the condition that any construction work completed with amounts provided under this section shall meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) ), when— (1) making grants and loans (including the cost of loans and modifications thereof) to purchase renewable energy (as defined in section 9001(15) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8101(15) )), purchase renewable energy systems (as defined in section 9001(16) of that Act ( 7 U.S.C. 8101(16) )), and carbon capture and storage systems, deploy such systems, or make energy efficiency improvements after the date of enactment of this Act; and (2) making grants for debt relief and other costs associated with terminating, after the date of enactment of this Act or up to one year prior to the date of enactment, the use of— (A) facilities operating on nonrenewable energy; and (B) related transmission assets. (b) Limitation No eligible entity may receive an amount equal to more than 10 percent of the total amount made available by this section. (c) Prohibition Nothing in this section shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes. 12008. Rural partnership program (a) Rural prosperity development grants (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $873,000,000, to remain available until September 30, 2031, to provide grants to support rural development under this subsection, subject to the condition that the recipient of a grant under this subsection shall contribute a non-Federal match of 25 percent of the amount of the grant, which may be satisfied through an in-kind contribution, except that the Secretary may waive such matching requirement on a finding that the recipient of the applicable grant is economically distressed. (2) Allocation of funds (A) Formula The Secretary shall establish a formula pursuant to which the Secretary shall allocate, for each State and for Tribal governments, an amount to be provided under this subsection to eligible applicants described in paragraph (3). (B) Requirements (i) Formula The formula established under subparagraph (A) shall include a graduated scale for the amount to be allocated under this subsection for eligible applicants in each State and eligible applicants of Tribal governments, with higher amounts provided based on lower populations and lower income levels, as determined by the Secretary. (ii) Award In awarding grants under this subsection to eligible applicants in each State and eligible applicants of Tribal governments, the Secretary shall give priority to eligible applicants representing a micropolitan statistical area (as defined by the Office of Management and Budget in OMB Bulletin No. 20-01 (effective March 2020) and any subsequent updates) and 1 or more rural areas contiguous to that micropolitan statistical area or eligible applicants representing high poverty areas (as determined by the Secretary) provided that the Secretary may award additional grants or funding under this subsection to implement activities pursuant to a rural development plan upon the Secretary’s approval of the recipient’s plan and report on the use of each grant provided to the recipient under this subsection. (3) Eligible applicants The Secretary may make a grant under this subsection to a partnership no member of which has received a grant under subsection (b) and that— (A) is composed of entities representing a region composed of 1 or more rural areas, including— (i) except as provided in subparagraph (B), 1 or more of— (I) a unit of local government; (II) a Tribal government; or (III) an authority, agency, or instrumentality of an entity described in subclauses (I) or (II); and (ii) a qualified nonprofit or for-profit organization, as determined by the Secretary; (B) does not include a member described in subparagraph (A)(i), but demonstrates significant community support sufficient to support a likelihood of success on the proposed projects, as determined by the Secretary; and (C) demonstrates, as determined by the Secretary, cooperation among the members of the partnership necessary to complete comprehensive rural development, through aligning government investment, leveraging nongovernmental resources, building economic resilience, and aiding economic recovery, including in communities impacted by economic transitions and climate change. (4) Eligible activities The use of grant funds provided under this subsection may be used for the following purposes, provided that, where applicable, the performance of any construction work completed with the grant funds shall meet the condition described in section 9003(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103(f) ): (A) Conducting comprehensive rural development and pre-development activities and planning. (B) Supporting organizational operating expenses relating to the rural development activities for which the grant was provided. (C) Implementing planned rural development activities and projects. (5) Limitation Not more than 25 percent of amounts received by a recipient of a grant under this subsection may be used to satisfy a Federal matching requirement. (b) Rural prosperity innovation grants In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $97,000,000, to remain available until September 30, 2031, to provide grants to entities that have not received a grant under subsection (a) and that is a qualified nonprofit corporation that serves rural areas (as determined by the Secretary) or an institution of higher education that serves rural areas (as determined by the Secretary), subject to the condition that the recipient of such grant shall contribute a non-Federal match of 20 percent of the amount of the grant, which may be used— (1) to support activities of the recipient relating to— (A) development and predevelopment planning aspects of rural development; and (B) organizational capacity-building necessary to support the rural development activities funded by the grant; and (2) to support the recipient of a grant under subsection (a) in carrying out activities for which that grant was provided. (c) Definitions In this section: (1) Rural area The term rural area has the meaning given the term in section 343(a)(13)(C) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13)(C) ). (2) State The term State has the meaning given the term in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 ). 12009. Additional USDA rural development administrative funds In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $553,000,000, to remain available until September 30, 2031, for administrative costs and salaries and expenses for the Rural Development mission area and expenses of the agencies and offices of the Department for costs related to implementing this part. 2 Agricultural credit and outreach 12101. Assistance for certain farm loan borrowers Section 1005 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) is amended to read as follows: 1005. Assistance for certain farm loan borrowers (a) Appropriations In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) such sums as may be necessary for the cost of payments under subsection (b); and (2) $1,020,000,000 to provide payments or loan modifications or otherwise carry out the authorities under section 331(b)(4) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1981(b)(4) ), using a centralized process administered from the national office, for Farm Service Agency direct loan and loan guarantee borrowers, focusing on borrowers who are at risk (as determined by the Secretary of Agriculture using factors that may include whether the borrower is a limited resource farmer or rancher, the amount of payments received by the borrower during calendar years 2020 and 2021 under the Coronavirus Food Assistance Program of the Department of Agriculture, and other factors, as determined by the Secretary). (b) Payments (1) In general The Secretary shall provide a payment in an amount up to 100 percent of the outstanding indebtedness of each economically distressed borrower on eligible farm debt. (2) Other payments (A) In general For each farmer and rancher with outstanding indebtedness on eligible farm debt that does not qualify for a payment under paragraph (1), the Secretary shall provide a payment that is equal to, subject to subparagraph (B), the lesser of— (i) the amount of the outstanding indebtedness of the farmer or rancher on eligible farm debt; and (ii) $150,000. (B) Reduction A payment determined under subparagraph (A) shall be reduced by the amount equal to the sum obtained by adding— (i) the total of the payments received by the farmer or rancher during calendar year 2020 pursuant to the Coronavirus Food Assistance Program of the Department of Agriculture; and (ii) the total of the payments received by the farmer or rancher during calendar years 2018 and 2019 pursuant to the Market Facilitation Program of the Department of Agriculture. (c) Definitions In this section: (1) Economically distressed borrower The term economically distressed borrower means a farmer or rancher that, as determined by the Secretary— (A) was 90 days or more delinquent with respect to an eligible farm debt as of April 30, 2021; (B) was 90 days or more delinquent with respect to an eligible farm debt as of December 31, 2020; (C) operates a farm or ranch whose headquarters of operation, as determined by the Secretary, location is— (i) in a county with a poverty rate of not less than 20 percent, as determined— (I) in the 1990 or 2000 decennial census; or (II) in the Small Area Income and Poverty Estimates of the Bureau of the Census for the most recent year for which the Estimates are available as of the date of enactment of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ; (ii) in a ZIP Code with a poverty rate of not less than 20 percent, as determined by the Secretary; or (iii) on land held in trust by the United States for the benefit of an Indian Tribe or an individual Indian; (D) owes more interest than principal with respect to an eligible farm debt as of July 31, 2021; (E) is undergoing bankruptcy or foreclosure or is in other financially distressed categories, as determined by the Secretary, as of July 31, 2021; (F) received a Department of Agriculture disaster set aside after January 1, 2020; (G) has restructured an eligible farm debt 3 or more times as of July 31, 2021; or (H) has restructured an eligible farm debt on or after January 1, 2020. (2) Eligible farm debt (A) In general The term eligible farm debt means a debt owed to the United States by a farmer or rancher that was issued as a direct loan administered by the Farm Service Agency under subtitle A, B, or C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 through 1970) and was outstanding or otherwise not paid as of December 31, 2020, or July 31, 2021. (B) Amount The amount of eligible farm debt with respect to a borrower shall be equal to the amount of eligible farm debt outstanding as of a date determined by the Secretary, but no sooner than the date of enactment of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con Res. 14 , plus the total of all loan payments on eligible farm debt made by the borrower in calendar year 2021. (3) Secretary The term Secretary means the Secretary of Agriculture. (d) Limitation The Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031 or any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. . 12102. USDA assistance and support for underserved farmers, ranchers, and foresters Section 1006 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) is amended to read as follows: 1006. USDA assistance and support for underserved farmers, ranchers, foresters (a) Technical and other assistance In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $200,000,000 to provide outreach, mediation, financial training, capacity building training, cooperative development and agricultural credit training and support, and other technical assistance on issues concerning food, agriculture, agricultural credit, agricultural extension, rural development, or nutrition to underserved farmers, ranchers, or forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas. (b) Land loss assistance In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $200,000,000 to provide grants and loans to eligible entities, as determined by the Secretary, to improve land access (including heirs’ property and fractionated land issues) for underserved farmers, ranchers, and forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas. (c) Equity commissions In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $10,000,000 to fund the activities of one or more equity commissions that will address racial equity issues within the Department of Agriculture and the programs of the Department of Agriculture. (d) Research, education, and extension In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $189,000,000 to support and supplement agricultural research, education, and extension, as well as scholarships and programs that provide internships and pathways to agricultural sector or Federal employment, for 1890 Institutions (as defined in section 2 of the Agricultural, Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7601 )), 1994 Institutions (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 ( 7 U.S.C. 301 note; Public Law 103–382 )), Alaska Native serving institutions and Native Hawaiian serving institutions eligible to receive grants under subsections (a) and (b), respectively, of section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3156 ), Hispanic-serving institutions eligible to receive grants under section 1455 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3241 ), and the insular area institutions of higher education located in the territories of the United States, as referred to in section 1489 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3361 ). (e) Discrimination financial assistance In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $750,000,000 for a program to provide financial assistance to farmers, ranchers, or forest landowners determined to have experienced discrimination prior to January 1, 2021, in Department of Agriculture farm lending programs, under which the amount of financial assistance provided to a recipient may be not more than $500,000 as appropriate in relation to any consequences experienced from the discrimination, which program shall be administered through 1 or more qualified nongovernmental entities selected by the Secretary subject to standards set and enforced by the Secretary, subject to the condition that any selected entity administering the program shall return the funds to the Secretary on the request of the Secretary if the standards are not adequately carried out or the administration of the program is not otherwise sufficient or if any funds provided to the selected entity are not distributed on the date that is 5 years after the date of enactment of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 , and any such returned funds shall be available for obligation for any activity authorized under this section, except subsections (c) and (f). (f) Administrative costs In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $35,000,000 for administrative costs, including training employees, of the agencies and offices of the Department of Agriculture to carry out this section. (g) Limitation The funds made available under subsection (d) are subject to the condition that the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; or (2) use any other funds available to the Secretary to satisfy obligations initially made under subsection (d). . D Research and Urban Agriculture 13001. Department of Agriculture research funding (a) Appropriations In addition to amounts otherwise available, there are appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) to the National Agricultural Statistics Service, for measurements, a survey, and data collection to conduct the study required under section 7212(b) of the Agriculture Improvement Act of 2018 ( Public Law 115–334 ; 132 Stat. 4812), which shall be completed not later than December 31, 2022, $5,000,000 for fiscal year 2022; (2) to the National Institute of Food and Agriculture— (A) to fund agricultural education, extension, and research relating to climate change— (i) through the Agriculture and Food Research Initiative established by subsection (b) of the Competitive, Special, and Facilities Research Grant Act ( 7 U.S.C. 3157(b) ), $210,000,000 for fiscal year 2022; (ii) through the sustainable agriculture research education program established under sections 1619, 1621, 1622, 1628, and 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 5801 , 5811, 5812, 5831, 5832), $120,000,000 for fiscal year 2022; (iii) through the organic agriculture research and extension initiative established under section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 5925b ), $60,000,000 for fiscal year 2022; (iv) through the urban, indoor, and other emerging agricultural production research, education, and extension initiative established under section 1672E of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 5925g ), $5,000,000 for fiscal year 2022; (v) through the centers of excellence led by 1890 Institutions established under section 1673(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 5926(d) ), $5,000,000 for fiscal year 2022; (vi) through the specialty crop research and extension initiative established by section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7632 ), $60,000,000 for fiscal year 2022; (vii) through the cooperative extension under the Smith-Lever Act (7 U.S.C. 341 through 349) for agricultural extension activities and research relating to climate change, technical assistance, and technology adoption, $80,000,000 for fiscal year 2022; (viii) through the cooperative extension at 1994 Institutions in accordance with section 3(b)(3) of the Smith-Lever Act ( 7 U.S.C. 343(b)(3) ), $35,000,000 for fiscal year 2022; and (ix) through the cooperative extension at 1890 Institutions under section 1444 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3221 ), $40,000,000 for fiscal year 2022; (B) for grants to covered institutions for construction, alteration, acquisition, modernization, renovation, or remodeling of agricultural research facilities, including related building costs associated with compliance with applicable Federal and State law, under section 4 of the Research Facilities Act ( 7 U.S.C. 390b ), $1,000,000,000 for fiscal year 2022, subject to the condition that notwithstanding section 3(c)(2)(A) of that Act ( 7 U.S.C. 390a(c)(2)(A) ), the recipient of a grant provided using those amounts shall not be required to provide any non-Federal share of total funding provided under this subparagraph; (C) for the scholarships for students at 1890 Institutions grant program under section 1446 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3222a ), $100,000,000 for fiscal year 2022, to carry out such program in fiscal years 2024 through 2031; (D) for grants to land-grant colleges and universities to support Tribal students under section 1450 of that Act ( 7 U.S.C. 3222e ), $15,000,000 for fiscal year 2022, and for purposes of this subparagraph, section 1450(b)(4) of such Act shall not apply; and (E) for the Higher Education Multicultural Scholars Program carried out pursuant to section 1417 of that Act ( 7 U.S.C. 3152 ), $15,000,000 for fiscal year 2022; (3) to the Office of the Chief Scientist, to carry out advanced research and development relating to climate through the Agriculture Advanced Research and Development Authority to further the goals under section 1473H(b)(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3319k(b)(2) ), $30,000,000 for fiscal year 2022; (4) to the Foundation for Food and Agriculture Research, to carry out activities relating to climate change in accordance with section 7601 of the Agricultural Act of 2014 ( 7 U.S.C. 5939 ), to be considered as provided pursuant to subsection (g)(1)(A) of such section, $210,000,000 for fiscal year 2022; (5) to the Office of Urban Agriculture and Innovative Production, to carry out activities in accordance with section 222 of the Department of Agriculture Reorganization Act of 1994 ( 7 U.S.C. 6923 ), $10,000,000 for fiscal year 2022. (b) Definitions In this section: (1) Covered institution The term covered institution means— (A) an 1890 Institution (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7601 )); (B) a 1994 Institution (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 ( 7 U.S.C. 301 note; Public Law 103–382 )); (C) an Alaska Native serving institution or Native Hawaiian serving institution eligible to receive grants under subsections (a) and (b), respectively, of section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3156 ); (D) Hispanic-serving agricultural colleges and universities and Hispanic-serving institutions (as those terms are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 )); (E) an eligible institution (as defined in section 1489 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3361 ) (relating to institutions of higher education in insular areas)); and (F) the University of the District of Columbia established pursuant to the Act of July 2, 1862 (commonly known as the First Morrill Act ) (7 U.S.C. 301 through 309). (2) State The term State has the meaning given the term in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 ). 13002. Limitation The funds made available under this subtitle are subject to the condition that the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; or (2) use any other funds available to the Secretary to satisfy obligations initially made under this subtitle. E Miscellaneous 14001. Additional Support for USDA Office of the Inspector General In addition to amounts otherwise made available, there is appropriated to the Office of the Inspector General of the Department of Agriculture for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000 to remain available until September 30, 2031, for audits, investigations, and other oversight activities of projects and activities carried out with funds made available to the Department of Agriculture under this title . 14002. Additional support for Farmworker and Food Worker Relief Grant Program In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022 to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $200,000,000 to provide additional funds to the Secretary for the Farmworker and Food Worker Relief Grant Program of the Agricultural Marketing Service to provide additional COVID–19 assistance relief payments for frontline grocery workers. F Conservation 15001. Soil conservation assistance (a) Appropriation In addition to amounts otherwise available, there are appropriated to the Secretary of Agriculture (referred to in this section as the Secretary ) for each of fiscal years 2022 through 2028, out of any money in the Treasury not otherwise appropriated, such sums as are necessary to carry out this section, to remain available until expended, subject to the conditions that, for purposes of providing payments under subsections (b), (c), and (d), the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; (2) use any other funds available to the Secretary to satisfy obligations initially made under this section; or (3) interpret this section to authorize funds of the Commodity Credit Corporation for such payments if such funds are not expressly authorized or currently expended for such purposes. (b) Availability of payments to producers (1) In general Of the funds made available under subsection (a), for each of the 2022 through 2026 crop years, the Secretary shall make payments to the producers on a farm for which the producer establishes 1 or more cover crop practices with respect to the applicable crop year, as determined by the Secretary, in accordance with this subsection, subject to the condition that a producer receiving a payment shall not receive a payment under any other provision of law for the same practices on the same acres. (2) Payment rate The payment rate used to make payments with respect to a producer who establishes 1 or more cover crop practices under paragraph (1) shall be $25 per acre of cover crop established. (3) Acres established The acres for which a producer receives the payment rate under paragraph (2) shall be equal to the total number of acres on which the producer establishes 1 or more cover crop practices, not to exceed 1,000 acres per producer. (c) Availability of payments to farm owners (1) In general Of the funds made available under subsection (a), for each of the 2022 through 2026 crop years, the Secretary shall make payments to the owners of a farm with respect to which a producer establishes 1 or more cover crop practices pursuant to subsection (b), in accordance with this subsection, subject to the condition that an owner of a farm may not receive a payment under this subsection and subsection (b) for the same farm or acres, as determined by the Secretary. (2) Payment rate The payment rate used to make payments under paragraph (1) with respect to the owner of a farm shall be $5 per acre of cover crop established. (3) Acres established The acres for which the owner of a farm receives the payment rate under paragraph (2) shall be equal to the total number of acres for which the applicable producer establishes 1 or more cover crop practices, not to exceed 1,000 acres per owner. (d) Availability of payments for prevented planting (1) In general Of the funds made available under subsection (a) and in addition to any other payments or assistance, for the 2022 through 2026 crop years, the Secretary shall make payments in accordance with this subsection to producers on farms who establish 1 or more cover crop practices pursuant to subsection (b). (2) Requirements To receive a payment under this subsection, a producer— (A) shall have— (i) purchased a crop insurance policy or plan of insurance under section 508(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(c) ) for the applicable crop year following the establishment of the cover crop practice, as determined by the Secretary; (ii) established a cover crop practice pursuant to subsection (b) on the farm for which the insurance described in clause (i) was purchased, as determined by the Secretary; and (iii) been unable to plant the crop for which insurance was purchased; and (B) as determined by the Secretary, shall not— (i) harvest the cover crop for market or sale; (ii) harvest the cover crop for seed for purposes of marketing or sale, except that a quantity may be harvested for seed for on-farm usage only; or (iii) otherwise use the acres for which payments are received under this subsection for any unapproved uses or other uses that seek to defeat or undermine the purposes of this section. (3) Payment amount The Secretary shall make payments to producers under this subsection in an amount equal to the product obtained by multiplying— (A) the total number of acres for which the producer is eligible to receive a payment under this subsection; and (B) the difference between— (i) 100 percent of the prevented planting guarantee, calculated without regard to the establishment of the cover crop practices pursuant to subsection (b), applicable for the insurance policy purchased by the producer under section 508A of the Federal Crop Insurance Act ( 7 U.S.C. 1508a ), as determined by the Secretary; and (ii) the prevented planting indemnity payment received by the producer under that section and the policy purchased by the producer for the applicable crop, as determined by the Secretary. 15002. Additional agricultural conservation investments (a) Appropriations In addition to amounts otherwise available (and subject to subsection (b)), there are appropriated to the Secretary of Agriculture (referred to in this section as the Secretary ), out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031 (subject to the condition that no such funds may be disbursed after September 30, 2031)— (1) to carry out, using the facilities and authorities of the Commodity Credit Corporation, the environmental quality incentives program under subchapter A of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa through 3839aa–8)— (A) (i) $300,000,000 for fiscal year 2022; (ii) $500,000,000 for fiscal year 2023; (iii) $1,750,000,000 for fiscal year 2024; (iv) $3,000,000,000 for fiscal year 2025; and (v) $3,450,000,000 for fiscal year 2026; and (B) subject to the conditions on the use of the funds that— (i) section 1240B(f)(1) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–2(f)(1) ) shall not apply; (ii) section 1240H(c)(2) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–8(c)(2) ) shall be applied— (I) by substituting $50,000,000 for $25,000,000 ; and (II) with the Secretary prioritizing proposals that utilize diet and feed management to reduce enteric methane emissions from ruminants; (iii) the funds shall be available for 1 or more agricultural conservation practices or enhancements that the Secretary determines directly improve soil carbon or reduce nitrogen losses or greenhouse gas emissions, or capture or sequester greenhouse gas emissions, associated with agricultural production; and (iv) the Secretary shall prioritize projects and activities that mitigate or address climate change through the management of agricultural production, including by reducing or avoiding greenhouse gas emissions; (2) to carry out, using the facilities and authorities of the Commodity Credit Corporation, the conservation stewardship program under subchapter B of that chapter (16 U.S.C. 3839aa–21 through 3839aa–25)— (A) (i) $250,000,000 for fiscal year 2022; (ii) $500,000,000 for fiscal year 2023; (iii) $850,000,000 for fiscal year 2024; (iv) $1,000,000,000 for fiscal year 2025; and (v) $1,500,000,000 for fiscal year 2026; and (B) subject to the conditions on the use of the funds that— (i) the funds shall only be available for— (I) 1 or more agricultural conservation practices or enhancements that the Secretary determines directly improve soil carbon or reduce nitrogen losses or greenhouse gas emissions, or capture or sequester greenhouse gas emissions, associated with agricultural production; or (II) State-specific or region-specific groupings or bundles of agricultural conservation activities for climate change mitigation appropriate for cropland, pastureland, rangeland, nonindustrial private forest land, and producers transitioning to organic or perennial production systems; and (ii) the Secretary shall prioritize projects and activities that mitigate or address climate change through the management of agricultural production, including by reducing or avoiding greenhouse gas emissions; (3) to carry out, using the facilities and authorities of the Commodity Credit Corporation, the agricultural conservation easement program under subtitle H of title XII of that Act (16 U.S.C. 3865 through 3865d)— (A) (i) $100,000,000 for fiscal year 2022; (ii) $200,000,000 for fiscal year 2023; (iii) $300,000,000 for fiscal year 2024; (iv) $500,000,000 for fiscal year 2025; and (v) $600,000,000 for fiscal year 2026; and (B) subject to the condition on the use of the funds that the Secretary shall prioritize projects and activities that mitigate or address climate change through the management of agricultural production, including by reducing or avoiding greenhouse gas emissions; and (4) to carry out, using the facilities and authorities of the Commodity Credit Corporation, the regional conservation partnership program under subtitle I of title XII of that Act (16 U.S.C. 3871 through 3871f)— (A) (i) $200,000,000 for fiscal year 2022; (ii) $500,000,000 for fiscal year 2023; (iii) $1,500,000,000 for fiscal year 2024; (iv) $2,250,000,000 for fiscal year 2025; and (v) $3,050,000,000 for fiscal year 2026; and (B) subject to the conditions on the use of the funds that the Secretary— (i) shall prioritize partnership agreements under section 1271C(d) of the Food Security Act of 1985 ( 16 U.S.C. 3871c(d) ) that support the implementation of conservation projects that assist agricultural producers and nonindustrial private forestland owners in directly improving soil carbon or reducing nitrogen losses or greenhouse gas emissions, or capturing or sequestering greenhouse gas emissions, associated with agricultural production; (ii) shall prioritize projects and activities that mitigate or address climate change through the management of agricultural production, including by reducing or avoiding greenhouse gas emissions; and (iii) may prioritize projects that— (I) leverage corporate supply chain sustainability commitments; or (II) utilize models that pay for outcomes from targeting methane and nitrous oxide emissions associated with agricultural production systems. (b) Conditions The funds made available under this section are subject to the conditions that the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; or (2) use any other funds available to the Secretary to satisfy obligations initially made under this section. (c) Conforming amendments (1) Section 1240B of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–2 ) is amended— (A) in subsection (a), by striking 2023 and inserting 2031 ; and (B) in subsection (f)(2)(B)— (i) in the subparagraph heading, by striking 2023 and inserting 2031 ; and (ii) by striking 2023 and inserting 2031 . (2) Section 1240H of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–8 ) is amended by striking 2023 each place it appears and inserting 2031 . (3) Section 1240J(a) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–22(a) ) is amended, in the matter preceding paragraph (1), by striking 2023 and inserting 2031 . (4) Section 1240L(h)(2)(A) of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–24(h)(2)(A) ) is amended by striking 2023 and inserting 2031 . (5) Section 1241 of the Food Security Act of 1985 ( 16 U.S.C. 3841 ) is amended— (A) in subsection (a)— (i) in the matter preceding paragraph (1), by striking 2023 and inserting 2031 ; (ii) in paragraph (1), by striking 2023 each place it appears and inserting 2031 ; (iii) in paragraph (2)(F), by striking 2023 and inserting 2031 ; and (iv) in paragraph (3), by striking fiscal year 2023 each place it appears and inserting each of fiscal years 2023 through 2031 ; (B) in subsection (b), by striking 2023 and inserting 2031 ; and (C) in subsection (h)— (i) in paragraph (1)(B), in the subparagraph heading, by striking 2023 and inserting 2031 ; and (ii) by striking 2023 each place it appears and inserting 2031 . (6) Section 1244(n)(3)(A) of the Food Security Act of 1985 ( 16 U.S.C. 3844(n)(3)(A) ) is amended by striking 2023 and inserting 2031 . (7) Section 1271D(a) of the Food Security Act of 1985 ( 16 U.S.C. 3871d(a) ) is amended by striking 2023 and inserting 2031 . 15003. Conservation technical assistance (a) Appropriations In addition to amounts otherwise available (and subject to subsection (b)), there are appropriated to the Secretary of Agriculture (referred to in this section as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031 (subject to the condition that no such funds may be disbursed after September 30, 2031)— (1) $200,000,000 to provide conservation technical assistance through the Natural Resources Conservation Service; (2) $50,000,000 to carry out climate change adaptation and mitigation activities through the Natural Resources Conservation Service by working with the Regional Climate Hubs designed to provide information and technical support on climate smart agriculture and forestry to agricultural producers, landowners, and resource managers, as determined by the Secretary; and (3) $600,000,000 to carry out a carbon sequestration and greenhouse gas emissions quantification program through which the Natural Resources Conservation Service, including through technical service providers and other partners, shall collect field-based data to assess the carbon sequestration and greenhouse gas emissions reduction outcomes associated with activities carried out pursuant to this section and use the data to monitor and track greenhouse gas emissions and carbon sequestration trends through the Greenhouse Gas Inventory and Assessment Program of the Department of Agriculture. (b) Conditions The funds made available under this section are subject to the conditions that the Secretary shall not— (1) enter into any agreement— (A) that is for a term extending beyond September 30, 2031; or (B) under which any payment could be outlaid or funds disbursed after September 30, 2031; (2) use any other funds available to the Secretary to satisfy obligations initially made under this section; or (3) interpret this section to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes. (c) Administrative costs In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2028, for administrative costs of the agencies and offices of the Department of Agriculture for costs related to implementing this section. II Committee on Education and Labor A Education Matters 1 Elementary and Secondary Education 20001. Grow your own programs (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $112,684,000, to remain available through September 30, 2025, to award grants for the development and support of Grow Your Own Programs, as described in section 202(g) of the Higher Education Act of 1965. (b) In general Section 202 of the Higher Education Act of 1965 is amended— (1) in subsection (b)(6)(C), by striking subsection (f) or (g) and inserting subsection (f) or (h) ; (2) in subsection (c)(1), by inserting a Grow Your Own program under subsection (g), after subsection (e), ; (3) by redesignating subsections (g), (h), (i), (j), and (k), as subsections (h), (i), (j), (k), and (l), respectively; and (4) by inserting after subsection (f) the following: (g) Partnership grants for the establishment of grow your own programs (1) In general An eligible partnership that receives a grant under this section shall carry out an effective Grow Your Own program to address shortages of teachers in high-need subjects, fields, schools, and geographic areas, or shortages of school leaders in high-need schools, and to increase the diversity of qualified individuals entering into the teacher, principal, or other school leader workforce. (2) Requirements of a grow your own program In addition to carrying out each of the activities described in paragraphs (1) through (6) of subsection (d), an eligible partnership carrying out a Grow Your Own program under this subsection shall— (A) integrate courses on education topics with a year-long school-based clinical experience in which candidates teach or lead alongside an expert mentor teacher or school leader who is the teacher or school leader of record in the same local educational agencies in which the candidates expect to work; (B) provide opportunities for candidates to practice and develop teaching skills or school leadership skills; (C) support candidates as they complete their associate (in furtherance of their baccalaureate), baccalaureate, or master’s degree or earn their teaching or school leadership credential; (D) work to provide academic, counseling, and programmatic supports to candidates; (E) provide academic and nonacademic supports, including advising and financial assistance, to candidates to enter and complete teacher or school leadership preparation programs, to access and complete State licensure exams, and to engage in school-based clinical placements; (F) include efforts to recruit individuals with experience in high-need subjects or fields who are not certified to teach or lead, with a specific focus on recruiting individuals— (i) from groups or populations that are underrepresented; and (ii) who live in and come from the communities the schools serve; and (G) require candidates to complete all State requirements to become fully certified. . 20002. Teacher residencies In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $112,266,000, to remain available through September 30, 2025, to award grants for the development and support of high-quality teaching residency programs, as described in section 202(e) of the Higher Education Act of 1965 ( 20 U.S.C. 1022a(e) ), except that amounts available under this section shall also be available for residency programs for prospective teachers in a bachelor’s degree program. 20003. Support school principals In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $112,266,000, to remain available through September 30, 2025, to award grants for the development and support of school leadership programs, as described in section 2243 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6673 ). 20004. Hawkins In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $112,266,000, to remain available through September 30, 2025, to award grants for the Augustus F. Hawkins Centers of Excellence Program, as described in section 242 of the Higher Education Act of 1965 ( 20 U.S.C. 1033a ). 20005. Funding for the Individuals with Disabilities Education Part D personnel development In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $160,776,000, to remain available until September 30, 2025, for personnel development described in section 662 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1462 ). 20006. Grants for Native American language teachers and educators The Native American Programs Act of 1974 is amended by inserting after section 803C the following: 803D. Grants for Native American language teachers and educators (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031, $200,000,000 for the Secretary, in carrying out section 803C, to award grants to carry out activities relating to preparing, training, and offering professional development to Native American language teachers and Native American language early childhood educators to ensure the survival and continuing vitality of Native American languages. (b) Cost share prohibition The Secretary shall not impose a cost sharing or matching fund requirement with respect to grants awarded under subsection (a). . 2 Higher Education 20021. Increasing the maximum Federal Pell Grant (a) Award year 2022–2023 Section 401(b)(7) of the Higher Education Act of 1965 is amended— (1) in subparagraph (A)(iii), by inserting and such sums as may be necessary for fiscal year 2022 to carry out the $550 increase for enrollment at institutions of higher education defined in section 101 or 102(a)(1)(B) provided under subparagraph (C)(iii) before ; and ; and (2) in subparagraph (C)(iii), by inserting before the period at the end the following: , except that, for award year 2022–2023, such amount shall be equal to the amount determined under clause (ii) for award year 2017–2018, increased by $550 for enrollment at institutions of higher education defined in section 101 or 102(a)(1)(B) . (b) Subsequent award years through 2025–2026 Section 401(b) of the Higher Education Act of 1965, as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ), is amended— (1) in paragraph (5)(A)— (A) in clause (i), by striking and after the semicolon; (B) by redesignating clause (ii) as clause (iii); and (C) by inserting after clause (i) the following: (ii) for each of award years 2023–2024 through 2025–2026, an additional $550 for enrollment at institutions of higher education defined in section 101 or 102(a)(1)(B); and ; and (2) in paragraph (6)(A)— (A) in clause (i)— (i) by striking appropriated) such and inserting the following: appropriated)— (I) such ; and (ii) by adding at the end the following: (II) such sums as are necessary to carry out paragraph (5)(A)(ii) for each of fiscal years 2023 through 2025; and ; and (B) in clause (ii), by striking (5)(A)(ii) and inserting (5)(A)(iii) . 20022. Expanding Federal Student Aid eligibility Section 484(a)(5) of the Higher Education Act of 1965 is amended by inserting , or, with respect to any grant, loan, or work assistance received under this title for award years 2022–2023 through 2029–2030, be subject to a grant of deferred enforced departure or have deferred action pursuant to the Deferred Action for Childhood Arrivals policy of the Secretary of Homeland Security or temporary protected status after becoming a citizen or permanent resident . 20023. Increase in Pell grants for recipients of means-tested benefits Section 473 of the Higher Education Act of 1965, as amended by section 702(b) of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ), is amended by adding at the end the following: (d) Special rule for means-tested benefit recipients During award years 2024–2025 through 2029–2030, and notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant’s parents) who is not described in subsection (c) and who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable) described in clauses (i) through (vi) of section 479(b)(4)(H), the Secretary shall for the purposes of this title consider the student aid index as equal to –$1,500 for the applicant. . 20024. Retention and completion grants Title VII of the Higher Education Act of 1965 is amended by adding at the end the following: F Retention and Completion Grants 791. Retention and completion grants (a) In general From amounts appropriated to carry out this section for a fiscal year, the Secretary shall carry out a program to make grants (which shall be known as retention and completion grants ) to eligible entities to enable the such entities to carry out the activities described in the applications submitted under subsection (b). (b) Application To be eligible to receive a grant under this section, an eligible entity shall submit an application to the Secretary that includes a description of— (1) how the eligible entity will use the funds to implement or expand evidence-based reforms or practices to improve student outcomes at institutions of higher education in the State or system of institutions of higher education, or at the Tribal College or University, as applicable; and (2) how the eligible entity will sustain such reforms or practices after the grant period. (c) Priority In awarding grants under this section to eligible entities, the Secretary shall give priority to eligible entities that propose to use a significant share of grant funds to, among students of color, low-income students, students with disabilities, students in need of remediation, first generation college students, student parents, and other underserved student populations in such eligible entity, improve enrollment, retention, transfer, or completion rates or labor market outcomes. (d) Adequate progress As a condition of continuing to receive funds under this section, for each year in which an eligible entity participates in the program under this section, such eligible entity shall demonstrate to the satisfaction of the Secretary that the entity has made adequate progress in implementing or expanding evidence-based reforms or practices, and, among students of color, low-income students, students with disabilities, students in need of remediation, first generation college students, student parents, and other underserved student populations in such eligible entity, improving enrollment, retention, transfer, or completion rates or labor market outcomes. (e) Matching requirement As a condition of receiving a grant under this section for the applicable year described in paragraphs (1) through (3), an eligible entity that is not a Tribal College or University shall provide matching funds for such applicable year toward the cost of the activities described in the application submitted under subsection (b). Such matching funds shall be in the amount of— (1) in the second year of a grant, not less than 10 percent of the grant amount awarded to such eligible entity for such year; (2) in the third year of a grant, not less than 15 percent of the grant amount awarded to such eligible entity for such year; and (3) in the fourth year and each subsequent year of a grant, not less than 20 percent of the grant amount awarded to such eligible entity for such year. (f) General requirement An eligible entity shall use a grant under this section only to carry out activities described in the application for such year under subsection (b). (g) Evidence-based reforms or practices An eligible entity receiving a grant under this section shall, directly or in collaboration with institutions of higher education and other non-profit organizations, use the grant funds to implement one or more of the following evidence-based reforms or practices: (1) Providing comprehensive academic, career, and student support services, including mentoring, advising, or case management services. (2) Providing assistance in applying for and accessing direct support services, financial assistance, or means-tested benefit programs to meet the basic needs of students. (3) Providing accelerated learning opportunities, including dual or concurrent enrollment programs and early college high school programs. (4) Reforming remedial or developmental education, course scheduling, or credit-awarding policies. (5) Improving transfer pathways between— (A) in the case of an eligible entity that is a State, community colleges and 4-year institutions of higher education in the State; (B) in the case of an eligible entity that is a system of institutions of higher education, institutions within such system and other institutions of higher education in the State in which the system is located; or (C) in the case of a Tribal College or University, between the Tribal College or University and other institutions of higher education. (h) Supplement, not supplant Funds made available under this part shall be used to supplement, and not supplant, other Federal, State, local, Tribal, and institutional funds that would otherwise be expended to carry out activities described in this section. (i) Definitions In this section: (1) Eligible entity The term eligible entity means a State, a system of institutions of higher education, or a Tribal College or University. (2) Evidence tiers (A) Evidence tier 1 The term evidence tier 1 , when used with respect to a reform or practice, means a reform or practice that meets the criteria for receiving an expansion grant from the education innovation and research program under section 4611(a)(2)(C) of the Elementary and Secondary Education Act of 1965, as determined by the Secretary in accordance with such section. (B) Evidence tier 2 The term evidence tier 2 , when used with respect to a reform or practice, means a reform or practice that meets the criteria for receiving a mid-phase grant from the education innovation and research program under section 4611(a)(2)(B) of the Elementary and Secondary Education Act of 1965, as determined by the Secretary in accordance with such section. (3) First generation college student The term first generation college student has the meaning given the term in section 402A(h)(3). (4) Institution of higher education The term institution of higher education has the meaning given the term in section 101 or 102(a)(1)(B). (5) State The term State means each of the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States. (6) Tribal college or university The term Tribal College or University has the meaning given the term in section 316(b)(3). (j) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $310,000,000 to remain available until September 30, 2030, to award competitive grants to eligible entities that are not Tribal Colleges and Universities to carry out the approved activities described in the applications submitted under subsection (b); (2) $37,500,000 to remain available until September 30, 2030, to award competitive grants to Tribal Colleges and Universities to carry out the approved activities described in the applications submitted under subsection (b); (3) $95,000,000 to remain available until September 30, 2030, to supplement the competitive grant amounts awarded to eligible entities with funds available under paragraph (1) and (2) to implement reforms or practices that meet evidence tier 1; (4) $47,500,000 to remain available until September 30, 2030, to supplement the competitive grant amounts awarded to eligible entities with funds available under paragraphs (1) and (2) to implement reforms or practices that meet evidence tier 1 or evidence tier 2, or a combination of such reforms or practices; and (5) $10,000,000 to remain available until September 30, 2030, to evaluate the effectiveness of the activities carried out under this section. (k) Sunset The authority to make grants under this section shall expire at the end of award year 2026–2027. (l) Inapplicability of GEPA contingent extension of programs Section 422 of the General Education Provisions Act shall not apply to this part. . 20025. Institutional aid (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(B) of the Higher Education Act of 1965 in fiscal year 2022; (2) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(B) of the Higher Education Act of 1965 in fiscal year 2023; (3) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(B) of the Higher Education Act of 1965 in fiscal year 2024; (4) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(B) of the Higher Education Act of 1965 in fiscal year 2025; (5) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(B) of the Higher Education Act of 1965 in fiscal year 2026; (6) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(C) of the Higher Education Act of 1965 in fiscal year 2022; (7) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(C) of the Higher Education Act of 1965 in fiscal year 2023; (8) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(C) of the Higher Education Act of 1965 in fiscal year 2024; (9) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(C) of the Higher Education Act of 1965 in fiscal year 2025; (10) $470,640,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(C) of the Higher Education Act of 1965 in fiscal year 2026; (11) $141,120,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(i) of the Higher Education Act of 1965 in fiscal year 2022; (12) $141,120,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(i) of the Higher Education Act of 1965 in fiscal year 2023; (13) $141,120,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(i) of the Higher Education Act of 1965 in fiscal year 2024; (14) $141,120,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(i) of the Higher Education Act of 1965 in fiscal year 2025; (15) $141,120,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(i) of the Higher Education Act of 1965 in fiscal year 2026; (16) $70,560,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(ii) of the Higher Education Act of 1965 in fiscal year 2022; (17) $70,560,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(ii) of the Higher Education Act of 1965 in fiscal year 2023; (18) $70,560,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(ii) of the Higher Education Act of 1965 in fiscal year 2024; (19) $70,560,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(ii) of the Higher Education Act of 1965 in fiscal year 2025; (20) $70,560,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(ii) of the Higher Education Act of 1965 in fiscal year 2026; (21) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iii) of the Higher Education Act of 1965 in fiscal year 2022; (22) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iii) of the Higher Education Act of 1965 in fiscal year 2023; (23) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iii) of the Higher Education Act of 1965 in fiscal year 2024; (24) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iii) of the Higher Education Act of 1965 in fiscal year 2025; (25) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iii) of the Higher Education Act of 1965 in fiscal year 2026; (26) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iv) of the Higher Education Act of 1965 in fiscal year 2022; (27) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iv) of the Higher Education Act of 1965 in fiscal year 2023; (28) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iv) of the Higher Education Act of 1965 in fiscal year 2024; (29) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iv) of the Higher Education Act of 1965 in fiscal year 2025; and (30) $23,520,000, to remain available until September 30, 2028, for carrying out section 371(b)(2)(D)(iv) of the Higher Education Act of 1965 in fiscal year 2026. (b) Use of funds (1) In general An institution of higher education receiving funds made available under this section shall use such funds in accordance with the uses of funds described under subparagraphs (B), (C), and clauses (i) through (iv) of subparagraph (D) of section 371(b)(2) of the Higher Education Act of 1965, as applicable, and to award need-based financial aid (including emergency financial aid grants) to low-income students enrolled in an eligible program (as defined in section 481(b) of the Higher Education Act of 1965) at such institution. (2) Distribution requirements The Secretary of Education shall distribute each of the amounts appropriated under paragraphs (6) through (10) of subsection (a) in accordance with section 371(b)(2)(C), except that in clause (ii) of such section, 25 and of $600,000 annually shall not apply. (c) No additional eligibility requirements No individual shall be determined by the Secretary of Education to be ineligible for benefits provided under subsection (b)(1) except on the basis of not being a low-income student enrolled in an eligible program (as defined in section 481(b) of the Higher Education Act of 1965). 20026. Research and development infrastructure competitive grant program Title III of the Higher Education Act of 1965 is amended— (1) by redesignating part G as part H; and (2) by inserting after section 371 the following: G Improving Research & Development Infrastructure for Historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority-Serving Institutions 381. Improving research & development infrastructure for historically black colleges and universities, tribal colleges and universities, and minority-serving institutions (a) Eligible institution In this section, the term eligible institution means— (1) an institution that— (A) is described in section 371(a); (B) is a 4-year institution; and (C) is not an institution classified as very high research activity by the Carnegie Classification of Institutions of Higher Education; or (2) an institution described in paragraph (1) acting on behalf of a consortium, which may include institutions classified as very high research activity by the Carnegie Classification of Institutions of Higher Education, 2-year institutions of higher education (as defined in section 101), institutions of higher education (as defined in section 101 or section 102(a)(1)(B) of the Higher Education Act of 1965), non-profit organizations, philanthropic organizations, and industry partners, provided that the eligible institution is the lead member and fiscal agent of the consortium. (b) Authorization of grant programs For the purpose of supporting research and development infrastructure at eligible institutions, the Secretary shall award, on a competitive basis, to eligible institutions— (1) planning grants for a period of not more than 2 years; and (2) implementation grants for a period of not more than 5 years. (c) Applications (1) In general An eligible institution that desires to receive a planning grant under subsection (b)(1) or an implementation grant under subsection (b)(2) shall submit an application to the Secretary that includes a description of the activities that will be carried out with grant funds. (2) No comprehensive development plan The requirement under section 391(b)(1) shall not apply to grants awarded under this section. (d) Priority in awards (1) In general In awarding planning and implementation grants under this section, the Secretary shall administer separate competitions for each of the categories of institutions listed in paragraphs (1) through (7) of section 371(a). (2) Priority In awarding implementation grants under this section, the Secretary shall give priority to eligible institutions that have received a planning grant under this section. (e) Use of funds (1) Planning grants An eligible institution that receives a planning grant under subsection (b)(1) shall use the grant funds to develop a strategic plan for improving institutional research and development infrastructure that includes— (A) an assessment of the existing institutional research capacity and research and development infrastructure; and (B) a detailed description of how the institution would use research and development infrastructure funds provided by an implementation grant under this section to increase the institution’s research capacity and support research and development infrastructure. (2) Implementation grants An eligible institution that receives an implementation grant under subsection (b)(2) shall use the grant funds to support research and development infrastructure, which shall include carrying out at least one of the following activities: (A) Providing for the improvement of infrastructure existing on the date of the grant award, including deferred maintenance, or the establishment of new physical infrastructure, including instructional program spaces, laboratories, research facilities or furniture, fixtures, and instructional research-related equipment and technology. (B) Hiring and retaining faculty, students, research-related staff, or other personnel, including research personnel skilled in operating, using, or applying technology, equipment, or devices used to conduct or support research. (C) Creating and supporting inter- and intra-institutional research centers (including formal and informal communities of practice) in fields of research for which research and development infrastructure funds have been awarded under this section, including hiring staff and purchasing supplies and equipment. (f) Supplement not supplant Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, tribal, and local funds that would otherwise be expended to carry out the activities described in this section. (g) Sunset (1) In general The authority to make— (A) planning grants under subsection (b)(1) shall expire at the end of fiscal year 2025; and (B) implementation grants under subsection (b)(2) shall expire at the end of fiscal year 2027. (2) Inapplicability of GEPA contingent extension of programs Section 422 of the General Education Provisions Act shall not apply to this section. (h) Appropriations In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until September 30, 2028, for carrying out this section. . 20027. Northern Mariana Islands, American Samoa, United States Virgin Islands, Guam, and freely associated States college access Title VII of the Higher Education Act of 1965, as amended by this Act, is further amended by adding at the end the following: G College Access for Students in Outlying Areas 792. Northern Mariana Islands, American Samoa, United States Virgin Islands, Guam, and freely associated states college access grants (a) Grants (1) Grant amounts (A) In general Beginning with award year 2023–2024, from amounts appropriated to carry out this section, the Secretary shall award grants to the Governors of each outlying area for such Governors to award grants to eligible institutions that enroll eligible students to pay the difference between the tuition and fees charged for in-State students and the tuition and fees charged for out-of-State students on behalf of each eligible student enrolled in the eligible institution. (B) Maximum student amounts The amount paid on behalf of an eligible student under this section shall be— (i) not more than $15,000 for any one award year (as defined in section 481(a)(1)); and (ii) not more than $75,000 in the aggregate. (C) Proration The Governor shall prorate payments under this section with respect to eligible students who attend an eligible institution on less than a full-time basis. (2) Agreement Each Governor desiring a grant under this section shall enter into an agreement with the Secretary for the purposes of administering the grant program. (3) Grant authority The authority to make grants under this section shall expire at the end of award year 2029–2030. (b) Inapplicability of GEPA contingent extension of programs Section 422 of the General Education Provisions Act shall not apply to this section. (c) No additional eligibility requirements No individual shall be determined, by a Governor, an eligible institution, or the Secretary, to be ineligible for benefits provided under this section except on the basis of eligibility requirements under this section. (d) Definitions In this section: (1) Eligible institution The term eligible institution means an institution that— (A) is a public four-year institution of higher education located in one of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or an outlying area; (B) enters into an agreement with the Governor of an outlying area, or with two or more of such Governors (except that such institution may not enter into an agreement with the Governor of the outlying area in which such institution is located), to carry out the grant program under this section; and (C) submits an assurance to the Governor and to the Secretary that the institution shall use funds made available under this section to supplement, and not supplant, assistance that otherwise would be provided to eligible students from outlying areas. (2) Eligible student The term eligible student means a student who— (A) was domiciled in an outlying area for not less than 12 consecutive months preceding the commencement of the freshman year at an institution of higher education supported by a grant awarded under this section; (B) has not completed an undergraduate baccalaureate course of study; and (C) is enrolled as an undergraduate student in an eligible program (as defined in section 481(b)) on at least a half-time basis. (3) Institution of higher education The term institution of higher education has the meaning given the term in section 101. (4) Governor The term Governor means the chief executive of an outlying area. (5) Outlying area The term outlying area means the Northern Mariana Islands, American Samoa, the United States Virgin Islands, Guam, and the Freely Associated States. (e) Appropriations In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary, to remain available until September 30, 2030, for carrying out this section. . 3 Department of Education implementation 20031. Program administration In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $91,742,000, to remain available until expended, for necessary administrative expenses associated with carrying out this subtitle and sections 22101 and 22102. 20032. Student aid administration In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $85,000,000, to remain available through September 30, 2030, for Student Aid Administration within the Department of Education for necessary administrative expenses associated with carrying out this subtitle and for additional Federal administrative expenses. 20033. Office of Inspector General In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, for the Office of Inspector General of the Department of Education, for salaries and expenses necessary for oversight, investigations, and audits of programs, grants, and projects funded under this subtitle and sections 22101 and 22102 carried out by the Office of Inspector General. B Labor Matters 21001. Department of Labor In addition to amounts otherwise available, out of any money in the Treasury not otherwise appropriated, there are appropriated to the Department of Labor for fiscal year 2022, to remain available until September 30, 2026, the following amounts: (1) $195,000,000 to the Employee Benefits Security Administration for carrying out enforcement activities. (2) $707,000,000 to the Occupational Safety and Health Administration for carrying out enforcement, standards development, whistleblower investigations, compliance assistance, funding for State plans, and related activities within the Occupational Safety and Health Administration. (3) $133,000,000 to the Mine Safety and Health Administration for carrying out enforcement, standard setting, technical assistance, and related activities. (4) $405,000,000 to the Wage and Hour Division for carrying out activities of the Division. (5) $121,000,000 to the Office of Workers’ Compensation Programs for carrying out activities of the Office. (6) $201,000,000 to the Office of Federal Contract Compliance Programs for carrying out audit, investigation, enforcement, and compliance assistance, and other activities. (7) $176,000,000 to the Office of the Solicitor for carrying out necessary legal support for activities carried out by the Office related to and in support of the activities of those Department of Labor agencies receiving additional funding in this section. 21002. National Labor Relations Board In addition to amounts otherwise available, out of any money in the Treasury not otherwise appropriated, there are appropriated to the National Labor Relations Board for fiscal year 2022, $350,000,000, to remain available until September 30, 2026, for the National Labor Relations Board to carry out the functions vested in it by the National Labor Relations Act. 21003. Equal Employment Opportunity Commission In addition to amounts otherwise available, out of any money in the Treasury not otherwise appropriated, there are appropriated to the Equal Employment Opportunity Commission for fiscal year 2022, $321,000,000, to remain available until September 30, 2026, for carrying out investigation, enforcement, outreach, and related activities. 21004. Adjustment of civil penalties (a) Occupational Safety and Health Act of 1970 Section 17 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 666 ) is amended— (1) in subsection (a)— (A) by striking $70,000 and inserting $700,000 ; and (B) by striking $5,000 and inserting $50,000 ; (2) in subsection (b), by striking $7,000 and inserting $70,000 ; and (3) in subsection (d), by striking $7,000 and inserting $70,000 . (b) Fair Labor Standards Act of 1938 Section 16(e) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216(e) ) is amended— (1) in paragraph (1)(A)— (A) in clause (i), by striking $11,000 and inserting $132,270 ; and (B) in clause (ii), by striking $50,000 and inserting $601,150 ; and (2) in paragraph (2)— (A) in the first sentence, by striking $1,100 and inserting $20,740 ; and (B) in the second sentence, by striking $1,100 and inserting $11,620 . (c) Migrant and Seasonal Agricultural Worker Protection Act Section 503(a)(1) of the Migrant and Seasonal Agricultural Worker Protection Act ( 29 U.S.C. 1853(a)(1) ) is amended by striking $1,000 and inserting $25,790 . (d) Effective date The amendments made by this section shall take effect on January 1, 2022. 21005. Civil monetary penalties for parity violations (a) Civil monetary penalties relating to parity in mental health and substance use disorders Section 502(c)(10) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1132(c)(10)(A) ) is amended— (1) in the heading, by striking use of genetic information and inserting use of genetic information and parity in mental health and substance use disorder benefits ; and (2) in subparagraph (A)— (A) by striking any plan sponsor of a group health plan and inserting any plan sponsor or plan administrator of a group health plan ; and (B) by striking for any failure and all that follows through in connection with the plan. and inserting for any failure by such sponsor, administrator, or issuer, in connection with the plan— (i) to meet the requirements of subsection (a)(1)(F), (b)(3), (c), or (d) of section 702 or section 701 or 702(b)(1) with respect to genetic information; or (ii) to meet the requirements of subsection (a) of section 712 with respect to parity in mental health and substance use disorder benefits. . (b) Exception to the general prohibition on enforcement Section 502 of such Act ( 29 U.S.C. 1132 ) is amended— (1) in subsection (a)(6), by striking or (9) and inserting (9), or (10) ; and (2) in subsection (b)(3)— (A) by striking subsections (c)(9) and (a)(6) and inserting subsections (c)(9), (c)(10), and (a)(6) ; (B) by striking under subsection (c)(9)) and inserting under subsections (c)(9) and (c)(10)), and except with respect to enforcement by the Secretary of section 712 ; and (C) by striking 706(a)(1) and inserting 733(a)(1) . (c) Effective date The amendments made by subsection (a) shall apply with respect to group health plans, or any health insurance issuer offering health insurance coverage in connection with such plan, for plan years beginning after the date that is 1 year after the date of enactment of this Act. 21006. Penalties under the National Labor Relations Act (a) In general Section 12 of the National Labor Relations Act ( 29 U.S.C. 162 ) is amended— (1) by striking Sec. 12. Any person and inserting the following: 12. Penalties (a) Violations for interference with board Any person ; and (2) by adding at the end the following: (b) Civil penalties for unfair labor practices Any employer who commits an unfair labor practice within the meaning of section 8(a) affecting commerce shall be subject to a civil penalty in an amount not to exceed $50,000 for each such violation, except that, with respect to such an unfair labor practice within the meaning of paragraph (3) or (4) of section 8(a) or such a violation of section 8(a) that results in the discharge of an employee or other serious economic harm to an employee, the Board shall double the amount of such penalty, to an amount not to exceed $100,000, in any case where the employer has within the preceding 5 years committed another such violation of such paragraph (3) or (4) or such violation of section 8(a) that results in such discharge or other serious economic harm. A civil penalty under this paragraph shall be in addition to any other remedy ordered by the Board. (c) Considerations In determining the amount of any civil penalty under this section, the Board shall consider— (1) the gravity of the actions of the employer resulting in the penalty, including the impact of such actions on the charging party or on other persons seeking to exercise rights guaranteed by this Act; (2) the size of the employer; (3) the history of previous unfair labor practices or other actions by the employer resulting in a penalty; and (4) the public interest. (d) Director and officer liability If the Board determines, based on the particular facts and circumstances presented, that a director or officer’s personal liability is warranted, a civil penalty for a violation described in this section may also be assessed against any director or officer of the employer who directed or committed the violation, had established a policy that led to such a violation, or had actual or constructive knowledge of and the authority to prevent the violation and failed to prevent the violation. . (b) Effective date The amendments made by this section shall take effect on January 1, 2022. C Workforce Development Matters 1 Department of Labor 22001. Dislocated worker employment and training activities (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until September 30, 2026, which shall be allotted in accordance with subsection (b)(2) of section 132 and reserved under subsection (a) of section 133 of the Workforce Innovation and Opportunity Act, and allocated under subsection (b)(1)(B) of section 133 of such Act for each local area to provide— (1) career services authorized under subsection (c)(2) of section 134 of the Workforce Innovation and Opportunity Act, including individualized career services described in section 134(c)(2)(A)(xii) of such Act; (2) supportive services and needs-related payments authorized under paragraphs (2) and (3) of section 134(d) of the Workforce Innovation and Opportunity Act, except that the requirements of subparagraphs (B) and (C) of paragraph (3) of such section shall not apply; and (3) training services, including through individual training accounts, authorized under section 134(c)(3) of the Workforce Innovation and Opportunity Act, except that for purposes of providing transitional jobs as part of those services under this section, section 134(d)(5) of such Act shall be applied by substituting 40 percent for 10 percent . (b) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide employment and training activities for dislocated workers, including funds provided under the Workforce Innovation and Opportunity Act. 22002. Adult worker employment and training activities (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, which shall be allotted in accordance with subsection (b)(1) of section 132 and reserved under subsection (a) of section 133 of the Workforce Innovation and Opportunity Act, and allocated under subsection (b)(1)(A) of section 133 of such Act for each local area to provide— (1) career services authorized under subsection (c)(2) of section 134 of the Workforce Innovation and Opportunity Act, including individualized career services described in section 134(c)(2)(A)(xii) of such Act; (2) supportive services and needs-related payments authorized under paragraphs (2) and (3) of section 134(d) of the Workforce Innovation and Opportunity Act, except that the requirements of subparagraphs (B) and (C) of paragraph (3) of such section shall not apply; and (3) training services, including through individual training accounts, authorized under section 134(c)(3) of the Workforce Innovation and Opportunity Act, except that for purposes of providing incumbent worker training as part of those services under this section, if such training is provided to low-wage workers, section 134(d)(4)(A)(i) of such Act shall be applied by substituting 40 percent for 20 percent . (b) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide adult employment and training activities, including funds provided under the Workforce Innovation and Opportunity Act. 22003. Youth workforce investment activities (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,500,000,000, to remain available until September 30, 2026, which shall be allotted in accordance with subparagraphs (B) and (C) of section 127(b)(1) and reserved under subsection (a) of section 128 of the Workforce Innovation and Opportunity Act, and allocated under subsection (b) of section 128 of such Act for each local area to— (1) carry out the youth workforce investment activities authorized under section 129 of the Workforce Innovation and Opportunity Act; (2) provide opportunities for in-school youth and out-of-school youth to participate in paid work experiences described in subsection (c)(2)(C) of section 129 of the Workforce Innovation and Opportunity Act; and (3) partner with community-based organizations to support out-of-school youth, including those residing in high-crime or high-poverty areas. (b) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended for youth workforce investment activities, including funds provided under the Workforce Innovation and Opportunity Act. 22004. Employment service In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to remain available until September 30, 2026: (1) $400,000,000 for carrying out the State grant activities authorized under section 7 of the Wagner-Peyser Act, which shall be allotted in accordance with section 6 of such Act, except that, for purposes of this section, funds shall also be reserved and used for the Commonwealth of the Northern Mariana Islands and American Samoa in amounts the Secretary determines appropriate prior to the allotments being made in accordance with section 6 of such Act. (2) $100,000,000 for carrying out improvements to State workforce and labor market information systems. 22005. Re-entry employment opportunities In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to remain available until September 30, 2026: (1) $375,000,000, for carrying out the Reentry Employment Opportunities program. (2) $125,000,000, for competitive grants to national and regional intermediaries to carry out Reentry Employment Opportunity programs that prepare for employment young adults with criminal records, young adults who have been justice system-involved, or young adults who have dropped out of school or other educational programs, made with a priority for projects serving high-crime, high-poverty areas. 22006. Registered apprenticeships, youth apprenticeships, and pre-apprenticeships In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, the following amounts, to remain available until September 30, 2026: (1) $500,000,000 for carrying out activities through grants, cooperative agreements, contracts, or other arrangements, including arrangements with States and outlying areas (as such terms are defined in paragraphs (45) and (56), respectively, of section 3 of the Workforce Innovation and Opportunity Act), equity intermediaries, and business and labor industry partner intermediaries, to create or expand only— (A) registered apprenticeship programs; (B) pre-apprenticeship programs that articulate to registered apprenticeship programs; and (C) youth apprenticeship programs that— (i) provide participants with high-quality, classroom-based related instruction and training, and employment opportunities with progressively increasing wages; and (ii) prepare participants for enrollment in an institution of higher education (as defined in section 101 or 102(c) of the Higher Education Act of 1965), a registered apprenticeship program, and employment. (2) $500,000,000 for carrying out activities through arrangements described in paragraph (1) to support programs described in such paragraph that serve a high number or high percentage of individuals with barriers to employment (as defined in section 3(24) of the Workforce Innovation and Opportunity Act), including individuals with disabilities, or nontraditional apprenticeship populations. 22007. Industry or sector partnership grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,600,000,000, to remain available until September 30, 2026, for the Secretary to award, on a competitive basis, grants, contracts, or cooperative agreements to eligible partnerships for the purposes of expanding employment and training activities for high-skill, high-wage, or in-demand industry sectors or occupations. (b) Eligibility To be eligible to receive funds under this section, an eligible partnership shall submit to the Secretary an application that includes a description of programs to be supported with such funds, the recognized postsecondary credentials participants in such programs will earn, and related employment opportunities for which participants in such programs will be prepared. (c) Uses of funds An eligible partnership awarded funds under this section shall use such funds to— (1) regularly engage and convene stakeholders to develop, or expand, employment and training activities for the high-skill, high-wage, or in-demand industry sector or occupation on which such partnership is focused; (2) directly provide, or arrange for the provision of, high-quality, evidence-based training that leads to the attainment of nationally or regionally portable and stackable recognized postsecondary credentials for the industry sector or occupation described in paragraph (1), which shall include— (A) (i) training services described in any clause of subparagraph (D) of section 134(c)(3) of the Workforce Innovation and Opportunity Act provided through contracts that meet the requirements of that section 134(c)(3); or (ii) training provided through— (I) registered apprenticeship programs; (II) pre-apprenticeship programs that articulate to registered apprenticeship programs; (III) youth apprenticeship programs that— (aa) provide participants with high-quality, classroom-based related instruction and training, and employment opportunities with progressively increasing wages; and (bb) prepare participants for enrollment in an institution of higher education (as defined in section 101 or 102(c)) of the Higher Education Act of 1965), a registered apprenticeship program, and employment; or (IV) joint labor-management organizations; and (B) the provision of information on related skills or competencies that may be attained through such training or credentials; (3) directly provide, or arrange for the provision of, services to help individuals with barriers to employment prepare for, complete, and successfully transition out of training described in paragraph (2), which services shall include career services, supportive services, or provision of needs-related payments authorized under subsections (c)(2), (d)(2), and (d)(3) of section 134 of the Workforce Innovation and Opportunity Act, except that, for purposes of this section, subparagraphs (B) and (C) of section 134(d)(3) of that Act shall not apply; and (4) establish or implement plans for providers of programs supported with such funds to meet the criteria and carry out the procedures to be included on the eligible training services provider list described in section 122(d) of the Workforce Innovation and Opportunity Act. (d) Administration In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2026, for— (1) targeted outreach and support to eligible partnerships serving local areas with high unemployment rates or high percentages of dislocated workers or individuals with barriers to employment, to provide guidance and assistance in the application process under this section; (2) administration of the program described in this section, including providing comprehensive technical assistance and oversight to support eligible partnerships; and (3) evaluating and reporting on the performance and impact of programs funded under this section. (e) State board or local board funds In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2026, to provide direct assistance to State boards or local boards to support the creation or expansion of industry or sector partnerships in local areas with high unemployment rates or high percentages of dislocated workers or individuals with barriers to employment, as compared to State or national averages for such rates or percentages. (f) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support activities described in this section. 22008. Job Corps (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2026— (1) to provide funds to operators and service providers to— (A) carry out the activities and services described in sections 148 and 149 of the Workforce Innovation and Opportunity Act; and (B) improve and expand access to allowances and services described in section 150 of such Act; and (2) for the construction, rehabilitation, and acquisition of Job Corps centers, notwithstanding section 158(c) of the Workforce Innovation and Opportunity Act. (b) Eligibility of operators and service providers For the purposes of carrying out subsection (a), an entity in a State or outlying area (as such term is defined in section 3(45) of the Workforce Innovation and Opportunity Act) may be eligible to be selected as an operator or service provider. 22009. Native American programs In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, to carry out activities described in section 166(d)(2)(A) of the Workforce Innovation and Opportunity Act. 22010. Migrant and seasonal farmworker programs In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $70,000,000, to remain available until September 30, 2026, to carry out activities described in section 167(d) of the Workforce Innovation and Opportunity Act, except that, for purposes of providing services as part of such activities to low-income individuals under this section, section 3(36)(A)(ii)(I) of such Act shall be applied by substituting 150 percent of the poverty line for the poverty line . 22011. Youthbuild program In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2026, to carry out activities described in section 171(c)(2) of the Workforce Innovation and Opportunity Act, including for the purposes of improving and expanding access to services, stipends, wages, and benefits described in subparagraphs (A)(vii) and (F) of section 171(c)(2) of such Act. 22012. Senior community service employment program In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $35,000,000, to remain available until September 30, 2026, for the Senior Community Service Employment program authorized under section 502 of the Older Americans Act of 1965. 22013. Provision of information For purposes of determinations of the eligibility of individuals to participate in activities funded under this subtitle, the provision of information for such determinations by Federal agencies other than the Department of Labor or the Department of Education shall not be required. 22014. Definitions In this part: (1) Eligible partnership The term eligible partnership means— (A) an industry or sector partnership, which shall include multiple representatives described in each of clauses (i) through (iii) of paragraph (26)(A) of section 3 of the Workforce Innovation and Opportunity Act; or (B) a State board or local board, a joint labor-management organization, or an entity eligible to be a representative under clause (i), (ii), or (iii) of paragraph (26)(A) of section 3 of the Workforce Innovation and Opportunity Act, that is in the process of establishing an industry or sector partnership described in subparagraph (A), to carry out a grant, contract, or cooperative agreement under section 22007. (2) Evidence-based The term evidence-based has the meaning given the term in section 3(23) of the Carl D. Perkins Career and Technical Education Act of 2006. (3) Registered apprenticeship program The term registered apprenticeship program means an apprenticeship program registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor or a State apprenticeship agency recognized by the Office of Apprenticeship pursuant to the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663). (4) Secretary The term Secretary means the Secretary of Labor. (5) WIOA definitions (A) In general The terms career pathway , in-demand industry sector or occupation , individual with a barrier to employment , industry or sector partnership , local area , local board , recognized postsecondary credential , State board , and supportive services have the meanings given the terms in paragraphs (7), (23), (24), (26), (32), (33), (52), (57), and (59), respectively, of section 3 of the Workforce Innovation and Opportunity Act. (B) Career services The term career services means services described in section 134(c)(2) of the Workforce Innovation and Opportunity Act. 2 Department of Education 22101. Adult education and literacy (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $700,000,000, to remain available until September 30, 2027, to carry out the program of adult education and literacy activities authorized under the Workforce Innovation and Opportunity Act, except that, for each fiscal year for which an eligible agency receives funds appropriated under this section, section 222(a)(1) of the Workforce Innovation and Opportunity Act shall be applied by substituting not less than 10 percent for not more than 20 percent , and section 222(b) of such Act shall not apply. (b) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support adult education and literacy activities, including funds provided under the Workforce Innovation and Opportunity Act. 22102. Career and technical education (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to remain available until September 30, 2027: (1) $600,000,000 for carrying out career and technical education programs authorized under section 124 and section 135 of the Carl D. Perkins Career and Technical Education Act of 2006, which shall be allotted in accordance with section 111 and section 112 of such Act, except that subsection (b) of section 112 shall not apply. (2) $100,000,000 for carrying out the innovation and modernization program in subsection (e) of section 114 of the Carl D. Perkins Career and Technical Education Act of 2006, except that, for purposes of this paragraph, paragraph (2) of such subsection and the 20 percent limitation in paragraph (1) of such subsection shall not apply and eligible agencies, as defined in section 3(18) of such Act, shall be eligible to receive grants under such program. (b) Supplement not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended for career and technical education programs, including funds provided under the Carl D. Perkins Career and Technical Education Act of 2006. 22103. Community college and industry partnership grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,900,000,000, to remain available until September 30, 2026, for the Secretary, in coordination with the Secretary of Labor, to award grants, on a competitive basis, to eligible institutions for the purposes of expanding employment and training activities for high-skill, high-wage, or in-demand industry sectors or occupations. (b) Eligibility To be eligible to receive such a grant, an eligible institution shall submit to the Secretary an application that includes a description of programs to be supported with such grant, the recognized postsecondary credentials participants in such programs will earn, and the related employment opportunities for which participants in such programs will be prepared. (c) Use of funds An eligible institution awarded a grant under this section shall use such grant funds to expand opportunities for attainment of recognized postsecondary credentials that are nationally or regionally portable and stackable for high-skill, high-wage, or in-demand industry sectors or occupations by— (1) establishing, improving, or scaling high-quality, evidence-based education or career training programs, career pathway programs, or work-based learning programs (including registered apprenticeship programs or pre-apprenticeships that articulate to registered apprenticeship programs); (2) providing services to help individuals with barriers to employment prepare for, complete, and successfully transition out of programs described in paragraph (1) supported by such grant, which shall include providing supportive services, career services, career guidance and academic counseling, or job placement assistance; and (3) carrying out 1 or more of the following: (A) Creating, developing, or expanding articulation agreements (as defined in section 486A(a) of the Higher Education Act of 1965), credit transfer agreements, corequisite remediation programs, dual or concurrent enrollment programs, or policies and processes to award academic credit for prior learning or for programs described in paragraph (1) supported by such grant. (B) Making available information on curricula and recognized postsecondary credentials, including those created or developed using such grant, and information on the related skills or competencies and related employment and earnings outcomes. (C) Establishing or implementing plans for providers of programs described in paragraph (1) supported by such grant to meet the criteria and carry out the procedures to be included on the eligible training services provider list described in section 122(d) of the Workforce Innovation and Opportunity Act. (D) Purchasing, leasing, or refurbishing specialized equipment necessary to carry out such programs. (E) Reducing participants’ cost of attendance in such programs. (F) Establishing or expanding industry or sector partnerships to successfully carry out the activities supported by such grant under this paragraph, and paragraphs (1) and (2). (d) Administration In addition to amounts otherwise available, there is appropriated to the Department of Education for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, to carry out, in coordination of the Department of Labor, the following activities: (1) Targeted outreach to eligible institutions serving a high number or high percentage of low-income individuals or individuals with barriers to employment, and rural-serving eligible institutions, to provide guidance and assistance in the grant application process under this section. (2) Administration of the program described in this section, including providing technical assistance and oversight to support eligible institutions. (3) Evaluating and reporting on the performance and impact of programs funded under this section. (e) Supplement not supplant Amounts available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to support activities described in this section. (f) Definitions In this section: (1) Community college The term community college means— (A) a degree-granting public institution of higher education (as defined in section 101 of the Higher Education Act of 1965) at which— (i) the highest degree awarded is an associate degree; or (ii) an associate degree is the most frequently awarded degree; (B) a 2-year Tribal College or University (as defined in section 316(b)(3) of the Higher Education Act of 1965); (C) a degree-granting Tribal College or University (as defined in section 316(b)(3) of the Higher Education Act of 1965) at which— (i) the highest degree awarded is an associate degree; or (ii) an associate degree is the most frequently awarded degree; or (D) a branch campus of a 4-year public institution of higher education (as defined in section 101 of the Higher Education Act of 1965), if, at such branch campus— (i) the highest degree awarded is an associate degree; or (ii) an associate degree is the most frequently awarded degree. (2) Eligible institution The term eligible institution means a community college, a postsecondary vocational institution (as defined in section 102(c) of the Higher Education Act of 1965), or a consortium of such colleges or institutions, that is working directly with an industry or sector partnership, or in the process of establishing such partnership, to carry out a grant under this section. (3) Perkins CTE definitions The terms career guidance and academic counseling , dual or concurrent enrollment program , evidence-based , and work-based learning have the meanings given the terms in paragraphs (7), (15), (23), and (55), respectively, of section 3 of the Carl D. Perkins Career and Technical Education Act of 2006. (4) Registered apprenticeship program The term registered apprenticeship program means an apprenticeship program registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor or a State apprenticeship agency recognized by the Office of Apprenticeship pursuant to the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663). (5) Secretary The term Secretary means the Secretary of Education. (6) WIOA definitions (A) In general The terms career pathway , in-demand industry sector or occupation , individual with a barrier to employment , industry or sector partnership , recognized postsecondary credential , and supportive services have the meanings given the terms in paragraphs (7), (23), (24), (26), (52), and (59), respectively, of section 3 of the Workforce Innovation and Opportunity Act. (B) Career services The term career services means services described in section 134(c)(2) of the Workforce Innovation and Opportunity Act. 3 Competitive integrated employment transformation grant program 22201. Competitive integrated employment transformation grant program (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to remain available through fiscal year 2029, for the Secretary of Labor to award grants to covered States in accordance with this section to assist employers in such States who were issued special certificates under section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ) (referred to in this part as special certificates ) in transforming their business and program models from providing employment using special certificates to business and program models that employ and support people with disabilities in competitive integrated employment: (1) $189,000,000 for subsection (d)(2)(B). (2) $81,000,000 for subsection (d)(2)(C). (b) Applications (1) In general To be eligible to receive a grant under this section, a covered State shall submit an application to the Secretary at such time, in such manner, and including such information as the Secretary may reasonably require. (2) Contents Each application submitted under paragraph (1) shall include— (A) a description of the status of the employers in the covered State providing employment using special certificates, including— (i) the number of employers in the covered State using special certificates to employ and pay people with disabilities; (ii) the number of employees in the covered State employed under a special certificate; (iii) the average number of hours such employees work per week; and (iv) the average hourly wage for such employees; (B) a description of activities to be funded under the grant, and the goals of such activities, including the activities of the covered State with respect to competitive integrated employment for people with disabilities; and (C) assurances that— (i) the activities carried out under the grant will result in— (I) each employer in the covered State that, on the date of enactment of this Act, provides employment using special certificates transforming its business and program models as described in subsection (c)(1); and (II) each employer in the covered State ceasing to use special certificates by the end of the 5-year grant period and no longer applying for or renewing such certificates; (ii) each individual in the covered State who is employed under a special certificate will, as a result of such a transformation, be employed in competitive integrated employment or a combination of competitive integrated employment and integrated services, including by compensating all employees of the employer for all hours worked at a rate that is— (I) not less than the higher of— (aa) the rate specified in section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) ); (bb) the rate specified in an applicable State or local minimum wage law; or (cc) in the case of work on a contract that is subject to chapter 67 of title 41, United States Code, the applicable prevailing wage rate under such chapter; and (II) not less than the rate paid by the employer for the same or similar work performed by other employees who are not people with disabilities, and who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills; and (iii) the covered State will establish an advisory council to monitor and guide the process of transforming business and program models of employers in the covered State as described in subsection (c)(1). (c) Use of funds A covered State receiving a grant under this section shall use the grant funds for each of the following activities: (1) Identifying each employer in the State that will transform its business and program models from employing people with disabilities using special certificates to employing people with disabilities in competitive integrated employment settings, or a setting involving a combination of competitive integrated employment and integrated services. (2) Implementing a service delivery infrastructure to support people with disabilities who have been employed under special certificates through such a transformation, including providing enhanced integrated services to support people with the most significant disabilities. (3) Expanding competitive integrated employment and integrated services to be provided to such people as a result of transformations described in paragraph (1). (d) Allotments (1) In general Not later than 18 months after the date of enactment of this Act, the Secretary shall— (A) determine the number of covered States; and (B) (i) in a case in which the Secretary determines that there are 15 or more covered States, award each covered State a grant under paragraph (2); or (ii) in a case in which the Secretary determines that there are 14 or fewer covered States, award each covered State a grant under paragraph (3) for the first 5-year grant period under such paragraph. (2) 15 or more covered States (A) In general In a case in which the Secretary determines under paragraph (1) that there are 15 or more covered States, from the funds appropriated under subsection (a), the Secretary shall allot to each covered State a grant under this section in an amount equal to the sum of— (i) the allotment made to the covered State in accordance with subparagraph (B); and (ii) the allotment made to the covered State in accordance with subparagraph (C). (B) Allotment based on the number of employees employed under special certificates From the total amount of the funds appropriated under subsection (a)(1), the Secretary shall allot to each covered State an amount that bears the same relationship to such total amount as the number of people with disabilities who are employed under a special certificate in the covered State bears to the total number of people with disabilities who are employed under a special certificate in all covered States. (C) Allotment based on the number of employers with special certificates From the total amount of the funds appropriated under subsection (a)(2), the Secretary shall allot to each covered State an amount that bears the same relationship to such total amount as the number of employers in the covered State who have in effect a special certificate bears to the total number of employers in all covered States who have in effect such a certificate. (D) Data In determining the number of people with disabilities who are employed under a special certificate for purposes of subparagraph (B) and the number of employers who have in effect a special certificate for purposes of subparagraph (C), the Secretary shall use the most accurate data available to the Secretary on the date of enactment of this Act. (E) Grant period A grant under this paragraph shall be awarded for a period of 5 years. (3) 14 or fewer covered States (A) In general In a case in which the Secretary determines under paragraph (1) that there are 14 or fewer covered States, from the funds appropriated under subsection (a), the Secretary shall award a grant to each covered State in an amount that the Secretary determines necessary for the covered State to accomplish the purpose of the grant described in such subsection and for the Secretary to meet the requirements of this paragraph. (B) Grant periods (i) In general The Secretary shall award grants under this paragraph for 2 separate, 5-year grant periods. (ii) Second 5-year grant period Grants for the second 5-year grant period shall be awarded— (I) not earlier than the end of the second year of the first 5-year grant period described in paragraph (1)(B)(ii); and (II) not later than September 30, 2025. (C) Limit on number of grants No State may receive more than 1 grant under this paragraph. (e) Definition of covered State In this section, the term covered State means a State (as defined in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 )) that— (1) as of the date of enactment of this Act, has not phased out, or is not in the process of phasing out, the use of special certificates in the State; and (2) submits an application under subsection (b) that meets the requirements under such subsection. 22202. Grants for States to expand competitive integrated employment (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $24,000,000, to remain available through fiscal year 2029, for the Secretary of Labor to award grants to covered States in accordance with this section to assist employers in such States who were issued special certificates in continuing to transform their business and program models from providing employment using special certificates to business and program models that employ and support people with disabilities in competitive integrated employment. (b) Applications To be eligible to receive a grant under this section, a covered State shall submit an application to the Secretary at such time, in such manner, and include such information as the Secretary may reasonably require, including a description of activities to be funded under the grant and the activities of the covered State with respect to competitive integrated employment for people with disabilities. (c) Use of funds A covered State that receives a grant under this section shall use the grant funds for activities to expand competitive integrated employment and integrated services to be provided to people with disabilities. (d) Grant award Not later than 18 months after the date of enactment of this Act, the Secretary shall award each covered State a grant in an amount that bears the same relationship to the total amount appropriated under subsection (a) as the population of the covered State bears to the total population of all covered States. (e) Grant period A grant under this section shall be awarded for a period of 5 years. (f) Definition of covered State In this section, the term covered State means a State (as defined in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 )) that— (1) as of the date of enactment of this Act, has phased out, or is the process of phasing out, the use of special certificates in the State; and (2) submits an application under subsection (b) that meets the requirements under such subsection. 22203. Technical assistance In addition to amounts otherwise made available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $6,000,000, to remain available through fiscal year 2029, for the Secretary to, in partnership with the Office of Special Education and Rehabilitative Services of the Department of Education, establish, either directly or through grants, contracts, or cooperative agreements, a national technical assistance center to— (1) provide technical assistance to employers who are transforming from employing people with disabilities using special certificates to employing people with disabilities in competitive integrated employment settings; and (2) collect and disseminate information on evidence-based practices for such transformations and for providing competitive integrated employment and integrated services. 22204. Supplement and not supplant Any funds made available to a State under this part shall be used to supplement and not supplant any Federal, State, or local public funds expended— (1) to assist employers in such State who were issued a special certificate in transforming (or continuing to transform) their business and program models from providing employment using special certificates to business and program models that employ and support people with disabilities in competitive integrated employment; or (2) to support the employment of people with disabilities in competitive integrated employment. 22205. Definitions In this part: (1) Competitive integrated employment The term competitive integrated employment has the meaning given such term in section 7(5) of the Rehabilitation Act of 1973 ( 29 U.S.C. 705(5) ). (2) Employee The term employee means any individual employed by an employer. (3) Employer The term employer means any person acting directly or indirectly in the interest of an employer in relation to an employee, but does not include any labor organization (other than when acting as an employer) or anyone acting in the capacity of officer or agent of such labor organization. (4) Integrated services The term integrated services means services for people with disabilities that are— (A) designed to assist such people in developing skills and abilities to reside successfully in home and community-based settings; (B) provided in accordance with a person-centered written plan of care; (C) created using evidence-based practices that lead to such people— (i) maintaining competitive integrated employment; (ii) achieving independent living; or (iii) maximizing socioeconomic self-sufficiency, optimal independence, and full participation in the community; (D) provided in a community location that is not specifically intended for people with disabilities; (E) provided in a location that— (i) allows the people receiving the services to interact with people without disabilities to the fullest extent possible; and (ii) makes it possible for the people receiving the services to access community resources that are not specifically intended for people with disabilities and to have the same opportunity to participate in the community as people who do not have a disability; and (F) provided in multiple locations to allow the individual receiving the services to have options, thereby— (i) optimizing individual initiative, autonomy, and independence; and (ii) facilitating choice regarding services and supports, and choice regarding the provider of such services. (5) People with disabilities The term people with disabilities includes individuals described in section 14(c)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c)(1) ). (6) Secretary The term Secretary means the Secretary of Labor. 4 Recruitment, Education and Training, Retention, and Career Advancements for the Direct Care Workforce 22301. Definitions In this part: (1) CTE definitions The terms area career and technical education school , evidence-based , and work-based learning have the meanings given such terms in paragraphs (3), (23), and (55), respectively, of section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2302 ). (2) WIOA definitions The terms career pathway , career planning , individual with a barrier to employment , local board , older individual , on-the-job training , recognized postsecondary credential , and State board have the meanings given such terms paragraphs (7), (8), (24), (33), (39), (44), (52), and (57), respectively, of section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ). (3) Other definitions (A) Direct support worker The term direct support worker means— (i) a direct support professional; (ii) a worker providing direct care services, which may include palliative care, in a home or community-based setting; (iii) a respite care provider who provides short-term support and care to an individual in order to provide relief to a family caregiver; (iv) a direct care worker, as defined in section 799B of the Public Health Service Act ( 42 U.S.C. 295p ); or (v) an individual in any other position or job related to those described in clauses (i) through (iv), as determined by the Secretary in consultation with the Secretary of Health and Human Services acting through the Administrator for the Administration for Community Living. (B) Eligible entity The term eligible entity means an entity that is— (i) a State; (ii) a labor organization or a joint labor-management organization; (iii) a nonprofit organization with experience in aging, disability, supporting the rights and interests of direct support workers, or training or educating direct support workers; (iv) an Indian Tribe or Tribal organization; (v) an urban Indian organization; (vi) a State board or local board; (vii) an area agency on aging (as defined in section 102 of the Older Americans Act of 1965 ( 42 U.S.C. 3002 )); (viii) when in partnership with an entity described in any of clauses (i) through (vii) or with a consortium described in clause (ix)— (I) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ) or section 102(a)(1)(B) of such Act ( 20 U.S.C. 1002(a)(1)(B) )); or (II) an area career and technical education school; or (ix) a consortium of entities listed in any of clauses (i) through (vii). (C) Family caregiver The term family caregiver means a paid or unpaid adult family member or other individual who has a significant relationship with, and who provides a broad range of assistance to, an individual with a chronic or other health condition, disability, or functional limitation. (D) Home and community-based services The term home and community-based services has the meaning given such term in section 9817(a)(2) of the American Rescue Plan Act of 2021 ( Public Law 117–2 ). (E) Person with a disability The term person with a disability means an individual with a disability as defined in section 3 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102 ). (F) Pre-apprenticeship program The term pre-apprenticeship program means a program that articulates to a registered apprenticeship program. (G) Registered apprenticeship program The term registered apprenticeship program means an apprenticeship program registered with the Office of Apprenticeship of the Employment Training Administration of the Department of Labor or a State apprenticeship agency recognized by the Office of Apprenticeship pursuant to the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663). (H) Secretary The term Secretary means the Secretary of Labor. (I) State The term State means each of the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. 22302. Grants to support the direct care workforce (a) Grants authorized In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2031, for awarding, on a competitive basis, grants to eligible entities to carry out the activities described in subsection (c) with respect to direct support workers. (b) Applications; award basis (1) Applications (A) In general An eligible entity seeking a grant under subsection (a) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary, in coordination with the Secretary of Health and Human Services acting through the Administrator of the Administration for Community Living, may require. (B) Contents Each application under subparagraph (A) shall include— (i) a description of the type or types of direct support workers the entity plans to serve through the activities supported by the grant; (ii) a description of the one or more eligible entities collaborating to carry out the activities described in subsection (c); and (iii) an assurance that— (I) the eligible entity will consult on the development and implementation of the grant, with direct support workers, their representatives, and recipients of direct care services and their families; and (II) the eligible entity will consult on the implementation of the grant, or coordinate the activities of the grant, with the agencies in the State that are responsible for developmental disability services, aging, education, workforce development, and Medicaid, to the extent that each such entity is not the eligible entity. (2) Duration of grants A grant awarded under this section shall be for a period of 3 years, and may be renewed. The Secretary, in coordination with the Secretary of Health and Human Services acting through the Administrator of the Administration for Community Living, shall award grants (including any renewals) under this section in 3-year cycles subject to the limits set forth in subsection (a). (c) Use of funds (1) Required use of funds Each eligible entity receiving a grant under subsection (a) shall use the grant funds to provide competitive wages, benefits, and other supportive services, including transportation, child care, dependent care, workplace accommodations, and workplace health and safety protections, to the direct support workers served by the grant that are necessary to enable such workers to participate in the activities supported by the grant. (2) Additional activities In addition to the requirement described in paragraph (1), each eligible entity receiving a grant under subsection (a) shall use the grant funds for one or more of the following activities: (A) Developing and implementing a strategy for the recruitment of direct support workers. (B) Developing and implementing a strategy for the retention of direct support workers using evidence-based best practices, such as providing mentoring to such workers, including a strategy that can also support family caregivers. (C) Developing or implementing an education and training program for the direct support workers served by the grant, which shall include— (i) education and training on— (I) the rights of direct support workers under applicable Federal, State, or local employment law on— (aa) safe working conditions, including under section 5 of the Occupational Safety and Health Act of 1970 ( 29 U.S.C. 654 ); and (bb) forming, joining, or assisting a labor organization, including under sections 7 and 8 of the National Labor Relations Act ( 29 U.S.C. 157 , 158); and (II) relevant Federal and State laws (including regulations) on the provision of home and community-based services; and (ii) providing a progressively increasing, clearly defined schedule of hourly wages to be paid to each direct support worker served by the grant for each hour the worker spends on education or training provided through the program described in this subparagraph, with a schedule of hourly wages that— (I) is consistent with measurable skill gains or attainment of a recognized postsecondary credential received as a result of participation in or completion of such education or training program; and (II) ensures that each such worker is compensated for each hour the worker spends on education or training through such program at an entry rate that is not less than the greater of the applicable minimum wage required by other applicable Federal, State, or local law, or a collective bargaining agreement; (iii) developing and implementing a strategy for the retention and career advancement of the direct support workers served by the grant, including providing career planning for the direct support workers served by the grant to support the identification of advancement opportunities, and career pathways in the direct care or home care sectors; and (iv) using evidence-based models and standards for achievement for the attainment of any associated recognized postsecondary credentials, which include— (I) supporting opportunities to participate in pre-apprenticeship or registered apprenticeship programs, work-based learning, or on-the-job training; (II) providing on-the-job supervision or mentoring to support the development of related skills and competencies throughout completion of such credentials; and (III) training on the in-demand skills and competencies of direct support workers served by the grant, including the provision of culturally competent and disability competent supports and services. (d) Supplement and not supplant An eligible entity receiving a grant under this section shall use such grant only to supplement, and not supplant, the amount of funds that, in the absence of such grant, would be available to the eligible entity to address the recruitment, education and training, retention, or career advancement of direct support workers in the State served by the grant. 5 Department of Labor Inspector General and Program Administration Funding 22401. Department of Labor Inspector General In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until expended, for salaries and expenses necessary for oversight, investigations, and audits of programs, grants, and projects of the Department of Labor funded under this subtitle and subtitle B of this title. 22402. Program administration In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $90,000,000, to remain available until September 30, 2029, for program administration within the Department of Labor for salaries and expenses necessary to implement part 1 (other than section 22007), and parts 3 and 4, of this subtitle. D Child care and universal pre-kindergarten 23001. Birth through five child care and early learning entitlement (a) Child care definitions The definitions in section 658P of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) shall apply to this section, except as provided in subsection (b) and as otherwise specified. (b) Additional definitions In this section: (1) Child care certificate (A) In general The term child care certificate means a certificate (that may be a check or other disbursement) that is issued by a State, Tribal, territorial, or local government under this section directly to a parent who shall use such certificate only as payment for child care services or as a deposit for child care services if such a deposit is required of other children being cared for by the provider. (B) Rule Nothing in this section shall preclude the use of such certificates for sectarian child care services if freely chosen by the parent. For the purposes of this section, child care certificates shall be considered Federal financial assistance to the provider. (2) Child experiencing homelessness The term child experiencing homelessness means an individual who is a homeless child or youth under section 725 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11434a ). (3) Eligible activity The term eligible activity , with respect to a parent, shall include, at minimum, activities consisting of— (A) full-time or part-time employment; (B) self-employment; (C) job search activities; (D) job training; (E) secondary, postsecondary, or adult education, including education through a program of high school classes, a course of study at an institution of higher education, classes towards an equivalent of a high school diploma recognized by State law, or English as a second language classes; (F) health treatment (including mental health and substance use treatment) for a condition that prevents the parent from participating in other eligible activities; (G) activities to prevent child abuse and neglect, or family violence prevention or intervention activities; (H) employment and training activities under the supplemental nutrition assistance program established under section 6(d)(4) the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(d)(4) ); (I) employment and training activities under the Workforce Innovation and Opportunity Act; (J) a work activity described in subsection (d) of section 407 of the Social Security Act ( 42 U.S.C. 607 ) for which, consistent with clauses (ii) and (iii) of section 402(a)(1)(A) of such Act ( 42 U.S.C. 602(a)(1)(A) ), a parent or caretaker is treated as being engaged in work for a month in a fiscal year for purposes of the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act; and (K) taking leave under the Family and Medical Leave Act of 1993 (or equivalent provisions for Federal employees), a State or local paid or unpaid leave law, or a program of employer-provided leave. (4) Eligible child (A) In general The term eligible child means an individual, subject to subsection (g)(1)(C)(i)(III)— (i) who is less than 6 years of age; (ii) who is not yet in kindergarten; (iii) whose family income— (I) does not exceed 100 percent of the State median income for a family of the same size for fiscal year 2022; (II) does not exceed 125 percent of such State median income for fiscal year 2023; (III) does not exceed 150 percent of such State median income for fiscal year 2024; and (IV) does not exceed 250 percent of such State median income for each of the fiscal years 2025 through 2027; and (iv) who— (I) resides with a parent or parents who are participating in an eligible activity; (II) is included in a population of vulnerable children identified by the lead agency involved, which at a minimum shall include children with disabilities, infants and toddlers with disabilities, children experiencing homelessness, children in foster care, children in kinship care, and children who are receiving, or need to receive, child protective services; or (III) resides with a parent who is more than 65 years of age. (B) Expanded eligibility rule for fiscal years 2022 through 2024 (i) In general A child who is eligible to receive services under this subparagraph shall be treated as an eligible child for the other provisions of this section. (ii) Rule Notwithstanding subparagraph (A)(iii), a State may use the payments under subsection (g)(1) for fiscal year 2022, 2023, or 2024, to provide direct child care services described in subsection (h)(1)(A) to children who meet the requirements of clauses (i), (ii), and (iv) of subparagraph (A) and whose family income exceeds the percentage specified in subparagraph (A)(iii) (but does not exceed 250 percent) of State median income for a family of the same size for a given fiscal year, if the State has appropriately prioritized, subject to approval by the Secretary, assistance for such services based on family income. (iii) Variation in cost of living In determining eligibility under this subparagraph, the State may take into consideration geographic variation in the cost of living among regions of the State and expand eligibility for children described in clause (ii) in a region of the State based on such variation, subject to approval by the Secretary. (5) Eligible child care provider (A) In general The term eligible child care provider means a center-based child care provider, a family child care provider, or other provider of child care services for compensation that— (i) is licensed to provide child care services under State law or, in the case of an Indian Tribe or Tribal organization, meets the rules set by the Secretary; (ii) participates in the State’s tiered system for measuring the quality of eligible child care providers described in subsection (f)(4)(B), or, in the case of an Indian Tribe or Tribal organization, meets the rules set by the Secretary— (I) not later than the last day of the third fiscal year for which the State receives funds under this section; and (II) for the remainder of the period for which the provider receives funds under this section; and (iii) satisfies the State and local requirements, including those requirements described in section 658E(c)(2)(I) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c)(2)(I) ). (B) Special rule A child care provider who is eligible to provide child care services in a State for children receiving assistance under the Child Care and Development Block Grant Act of 1990 on the date the State submits an application for funds under this section, and remains in compliance with any licensing or registration standards, or regulations, of the State, shall be deemed to be an eligible child care provider under this section for 3.5 years after the State first receives funding under this section. (6) FMAP The term FMAP has the meaning given the term Federal medical assistance percentage in the first sentence of section 1905(b) of the Social Security Act ( 42 U.S.C. 1396d(b) ). (7) Family child care provider The term family child care provider means one or more individuals who provide child care services, in a private residence other than the residences of the children involved, for less than 24 hours per day per child, or for 24 hours per day per child due to the nature of the work of the parent involved. (8) Inclusive care The term inclusive , with respect to care (including child care), means care provided by an eligible child care provider— (A) for whom the percentage of children served by the provider who are children with disabilities or infants or toddlers with disabilities reflects the prevalence of children with disabilities and infants and toddlers with disabilities (whichever the provider serves) among children within the State involved; and (B) that provides care and full participation for children with disabilities and infants and toddlers with disabilities (whichever the provider serves) alongside children who are— (i) not children with disabilities; and (ii) not infants and toddlers with disabilities. (9) Infant or toddler The term infant or toddler means an individual who is less than 3 years of age. (10) Infant or toddler with a disability The term infant or toddler with a disability has the meaning given the term in section 632 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1432 ). (11) Lead agency The term lead agency means the agency designated under subsection (e). (12) State The term State means any of the 50 States and the District of Columbia. (13) Territory The term territory means the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (c) Appropriations (1) States (A) State appropriations In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (i) (I) $11,460,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2022; (II) $5,730,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2022; (III) $4,125,600,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A) or (B) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2022; and (IV) $1,604,400,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or (C) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2022; (ii) (I) $16,235,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2023; (II) $8,117,500,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2023; (III) $5,844,600,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A) or (B) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2023; and (IV) $2,272,900,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or (C) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2023; and (iii) (I) $20,055,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2024; (II) $10,027,500,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2024; (III) $7,219,800,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A) or (B) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2024; and (IV) $2,807,700,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or (C) of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2024. (B) State entitlement In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to States, for carrying out this section (other than carrying out activities described in paragraph (4), (5), or (6)). (2) Indian Tribes and Tribal organizations (A) Indian Tribe and Tribal organization appropriations In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, for grants to Indian Tribes and Tribal organizations for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States— (i) $960,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2022; (ii) $1,360,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2023; and (iii) $1,680,000,000 to remain available until September 30, 2027, to carry out the child care program in fiscal year 2024. (B) Indian Tribe and Tribal organization entitlement In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to Indian Tribes and Tribal organizations, for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (3) Territories (A) Territory appropriations In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, for grants to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States— (i) $120,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2022; (ii) $170,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2023; and (iii) $210,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2024. (B) Territory entitlement In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to territories, for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (4) Grants to localities In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (A) $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2023; (B) $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2024; (C) $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2025; (D) $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2026; and (E) $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2027. (5) Head Start expansion in nonparticipating States In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (A) $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2023; (B) $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2024; (C) $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2025; (D) $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2026; and (E) $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2027. (6) Federal administration (A) Fiscal years 2022 through 2025 In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (i) $130,000,000, to remain available until September 30, 2027, to carry out subsections (k) and (l) in fiscal year 2022; (ii) $130,000,000, to remain available until September 30, 2027, to carry out subsections (k) and (l) in fiscal year 2023; (iii) $130,000,000, to remain available until September 30, 2027, to carry out subsections (k) and (l) in fiscal year 2024; and (iv) $130,000,000, to remain available until September 30, 2027, to carry out subsections (k) and (l) in fiscal year 2025. (B) Fiscal years 2026 through 2027 In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, for each of fiscal years 2026 and 2027, an amount equal to 1.06 percent of the prior year’s appropriation under paragraph (1)(B), to carry out subsections (k) and (l). (d) Establishment of birth through five child care and early learning entitlement program (1) In general The Secretary is authorized to administer a child care and early learning entitlement program under which an eligible child, in a State, territory, or Indian Tribe, or served by a Tribal organization, with an approved application under subsection (f) or (g), shall be provided an opportunity to obtain high-quality child care services, subject to the requirements of this section. (2) Assistance for every eligible child Beginning on October 1, 2024, every child who applies for assistance under this section, who is in a State with an approved application under subsection (g), or in a territory or Indian Tribe or served by a Tribal organization with an approved application under subsection (f), and who is determined, by a lead agency (or other entity designated by a lead agency) for the State, territory, Indian Tribe, or Tribal organization involved, following standards and procedures established by the Secretary by rule, to be an eligible child, shall be offered assistance for direct child care services in accordance with and subject to the requirements and limitations of this section. (e) Lead agency The Governor of a State or the head of a territory or Indian Tribe, desiring for the State, territory, or Indian tribe or a related tribal organization to receive a payment under this section, shall designate a lead agency (such as a State agency or joint interagency office) to administer the child care program carried out under this section. (f) Applications and state plans (1) Application To be eligible to receive assistance under this section, a State shall prepare and submit to the Secretary for approval an application containing a State plan that— (A) for a transitional State plan, meets the requirements under paragraph (3) and contains such information as the Secretary may require, to demonstrate the State will meet the requirements of this section; and (B) for a full State plan, meets the requirements under paragraph (4) and contains that information. (2) Period covered by plan A State plan contained in the application shall be designed to be implemented— (A) for a transitional State plan, during a period of not more than 3 years; and (B) for a full State plan, during a period of not more than 3 years. (3) Requirements for transitional state plans For a period of not more than 3 years following the date of enactment of this Act, the Secretary shall award funds under this section to States with an approved application that contains a transitional State plan, submitted under paragraph (1)(A) at such time, in such manner, and containing such information as the Secretary shall require, including, at a minimum— (A) an assurance that the State will submit a State plan under paragraph (4); and (B) a description of how the funds received by the State under this section will be spent to expand access to assistance for direct child care services and increase the supply and quality of child care providers within the State, in alignment with the requirements of this section. (4) Requirements for full state plans The Secretary shall award funds under this section to States with an approved application that contains a full State plan, submitted under paragraph (1)(B), at such time, in such manner, and containing such information as the Secretary shall by rule require, including, at a minimum, the following: (A) Payment rates and cost estimation (i) Payment rates The State plan shall certify that payment rates for the provision of direct child care services for which assistance is provided in accordance with this section for the period covered by the plan, within 3 years after the State first receives funds under this section— (I) will be sufficient to meet the cost of child care, and set in accordance with a cost estimation model or cost study described in clause (ii) that is approved by the Secretary; and (II) will correspond to differences in quality (including improved quality) based on the State’s tiered system for measuring the quality of eligible child care providers described in subparagraph (B). (ii) Cost estimation Such State plan shall— (I) demonstrate that the State has, after consulting with relevant entities and stakeholders, developed and uses a statistically valid and reliable cost estimation model or cost study for the payment rates for direct child care services in the State that reflect rates for providers at each of the tiers of the State’s tiered system for measuring the quality of eligible child care providers described in subparagraph (B), and variations in the cost of direct child care services by geographic area, type of provider, and age of child, and the additional costs associated with providing inclusive care; (II) certify that the State’s payment rates for direct child care services for which assistance is provided in accordance with this section— (aa) are set in accordance with the most recent estimates from the most recent cost estimation model or cost study under subclause (I), so that providers at each tier of the tiered system for measuring provider quality described in subparagraph (B) receive a payment that is sufficient to meet the requirements of such tier; (bb) are set so as to provide payments to providers not at the top tier of the tiered system that are sufficient to enable the providers to increase quality to meet the requirements for the next tier; (cc) ensure adequate wages for staff of child care providers providing such direct child care services that— (AA) at a minimum, provide a living wage for all staff of such child care providers; and (BB) are equivalent to wages for elementary educators with similar credentials and experience in the State; and (dd) are adjusted on an annual basis for cost of living increases to ensure those payment rates remain sufficient to meet the requirements of this section; and (III) certify that the State will update, not less often than once every 3 years, the cost estimation model or cost study described in subclause (I). (iii) Payment practices Such State plan shall include an assurance that the State will implement payment practices that support the fixed costs of providing direct child care services. (B) Tiered system for measuring the quality of eligible child care providers Such State plan shall certify that the State has implemented, or assure that the State will implement within 3 years after first receiving funds under this section, a tiered system for measuring the quality of eligible child care providers who provide child care services for which assistance is made available under this section. Such tiered system shall— (i) include a set of standards, for determining the tier of quality of a child care provider, that— (I) uses standards for a highest tier that at a minimum are equivalent to Head Start program performance standards described in section 641A(a)(1)(B) of the Head Start Act ( 42 U.S.C. 9836a(a)(1)(B) ) or other equivalent evidence-based standards approved by the Secretary; and (II) includes quality indicators and thresholds that are appropriate for child development in different types of child care provider settings, including child care centers and the settings of family child care providers, and are appropriate for providers serving different age groups (including mixed age groups) of children; (ii) include a different set of standards that includes indicators, when appropriate, for care during nontraditional hours of operation; and (iii) provide for sufficient resources and supports for child care providers at tiers lower than the highest tier to facilitate progression toward meeting higher quality standards. (C) Achieving high quality for all children Such State plan shall certify the State has implemented, or will implement within 3 years after first receiving funds under this section, policies and financing practices that will ensure all eligible children can choose to attend child care at the highest quality tier within 6 years after the date of enactment of this Act. (D) Compensation Such plan shall provide a certification that the State has or will have within 3 years after first receiving funds under this section, a wage ladder for staff of eligible child care providers receiving assistance under this section, including a certification that wages for such staff, at a minimum, will meet the requirements of subparagraph (A)(ii)(II)(cc). (E) Sliding fee scale for copayments (i) In general Except as provided in clause (ii)(I), the State plan shall provide an assurance that the State will for the period covered by the plan use a sliding fee scale described in clause (ii) to determine a copayment for a family receiving assistance under this section (or, for a family receiving part-time care, a reduced copayment that is the proportionate amount of the full copayment). (ii) Sliding fee scale A full copayment described in clause (i) shall use a sliding fee scale that provides that, for a family with a family income— (I) of not more than 75 percent of State median income for a family of the same size, the family shall not pay a copayment, toward the cost of the child care involved for all eligible children in the family; (II) of more than 75 percent but not more than 100 percent of State median income for a family of the same size, the copayment shall be more than 0 but not more than 2 percent of that family income, toward such cost for all such children; (III) of more than 100 percent but not more than 125 percent of State median income for a family of the same size, the copayment shall be more than 2 but not more than 4 percent of that family income, toward such cost for all such children; (IV) of more than 125 percent but not more than 150 percent of State median income for a family of the same size, the copayment shall be more than 4 but not more than 7 percent of that family income, toward such cost for all such children; and (V) of more than 150 percent but not more than 250 percent of the State median income for a family of the same size, the copayment shall be 7 percent of that family income, toward such cost for all such children. (F) Prohibition on charging more than copayment The State plan shall certify that the State will not permit a child care provider receiving financial assistance under this section to charge, for child care for an eligible child, more than the total of— (i) the financial assistance provided for the child under this section; and (ii) any applicable copayment pursuant to subparagraph (E). (G) Eligibility The State plan shall assure that each child who receives assistance under this section will be considered to meet all eligibility requirements for such assistance, and will receive such assistance, for not less than 12 months unless the child has aged out of the program, and the child’s eligibility determination and redetermination, including any determination based on the State’s definition of eligible activities, shall be implemented in a manner that supports child well-being and reduces barriers to enrollment, including continuity of services. (H) Policies to support access to child care for underserved populations The State plan shall demonstrate that the State will prioritize increasing access to, and the quality and the supply of, child care in the State for underserved populations, including at a minimum, low-income children, children in underserved areas, infants and toddlers, children with disabilities and infants and toddlers with disabilities, children who are dual language learners, children experiencing homelessness, children in foster or kinship care, children who receive care during nontraditional hours, and vulnerable children as defined by the lead agency pursuant to subsection (b)(4)(A)(iv)(II). (I) Policies The State plan shall include a certification that the State will apply, under this section, the policies and procedures described in subparagraphs (A), (B), (I), (J), (K)(i), (R), and (U) of section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c)(2) ), and the policies and procedures described in section 658H of such Act ( 42 U.S.C. 9858f ), to child care services provided under this section. (J) Licensing The State plan shall demonstrate that the State has consulted or will consult with organizations (including labor organizations) representing child care directors, teachers, or other staff, early childhood education and development experts, and families to develop, within 2.5 years after first receiving funds under this section, licensing standards appropriate for child care providers and a pathway to such licensure that is available to and appropriate for child care providers in a variety of settings, that will offer providers eligible under the Child Care and Development Block Grant Act of 1990 a reasonable pathway to become eligible providers under this section, and that will assure an adequate supply of child care. Such plan shall describe the timeline the State will use to ensure sufficient time for providers described in subsection (b)(5)(B) to comply with such licensing standards in order to remain eligible providers after 3.5 years after the State first receives funding under this section. (g) Payments (1) Payments for fiscal years 2022 through 2024 (A) Definitions For purposes of this paragraph— (i) the term State means the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico; and (ii) the term territory means Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands. (B) Allotments For each of fiscal years 2022 through 2024, the Secretary shall, from the amount appropriated under subsection (c)(1)(A) for such fiscal year, make allotments to each State with an application approved under subsection (f) in the same manner as the Secretary makes such allotments using the formula under section 658O(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858m(b) ). (C) Payments (i) Indian tribes and tribal organizations (I) In general For each of fiscal years 2022 through 2024, from the amount appropriated for Indian Tribes and Tribal organizations under subsection (c)(2)(A), the Secretary shall make payments to Indian Tribes and Tribal organizations with an application approved under subclause (II), and the Tribes and Tribal organizations shall be entitled to such payments for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (II) Applications An Indian Tribe or Tribal organization seeking a payment under this clause shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify, including an agreement to provide reports under subsection (j)(7). (III) Special rule The Secretary shall determine eligibility criteria for children from Indian tribes who are less than 6 years of age and not yet in kindergarten, which eligibility criteria shall not be more stringent than the eligibility criteria under subsection (b)(4)(A). (ii) Territories (I) In general For each of fiscal years 2022 through 2024, from the amount appropriated for territories under subsection (c)(3)(A), the Secretary shall make payments to the territories with an application approved under subclause (II), and the territories shall be entitled to such payments, for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (II) Applications A territory seeking a payment under this clause shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify, including an agreement to provide reports under subsection (j)(7). (iii) States For each of fiscal years 2022 through 2024, each State that has an application approved under subsection (f) shall be entitled to a payment under this clause in the amount equal to its allotment under subparagraph (B) for such fiscal year. (D) Authorities (i) Fiscal years 2022 through 2024 Notwithstanding any other provision of this paragraph, for each of fiscal years 2022 through 2024, the Secretary shall have the authority— (I) to reallot funds that were allotted under subparagraph (B) from any State without an approved application under subsection (f) by the date required by the Secretary, to States with an approved application under that subsection; and (II) to reallot any amounts available for payments under subparagraph (C) that the Secretary elected to allot for— (aa) an Indian Tribe or Tribal organization without an approved application under subparagraph (C)(i)(II) by the date required by the Secretary, to Tribes or Tribal organizations with such an approved application; and (bb) any territory without an approved application under subparagraph (C)(ii)(II) by the date required by the Secretary, to territories with such an approved application. (ii) Fiscal year 2025 Notwithstanding any other provision of this section, on October 1, 2024, the Secretary shall have the authority to reallot funds from payments made under subparagraph (C) that are unobligated on such date, to any entity without such unobligated funds that is a State with an approved application under subsection (f), an Indian Tribe or Tribal organization with an approved application under subparagraph (C)(i)(II), or a territory with an approved application under subparagraph (C)(ii)(II), to carry out the purposes of this section. (2) Payments for fiscal years 2025 through 2027 (A) In general For each of fiscal years 2025 through 2027: (i) Child care assistance for eligible children (I) In general The Secretary shall pay to each State with an approved application under subsection (f), and that State shall be entitled to, an amount for each quarter equal to 95.440 percent of expenditures (which shall be the Federal share of such expenditures) in the quarter for direct child care services described under subsection (h)(2)(B) for eligible children. (II) Exception Funds reserved from the total under subsection (h)(2)(C) shall be subject to clause (ii). (III) Prohibition Activities described in clause (ii) and clause (iii) may not be included in the cost of direct child care services described in this clause. (ii) Activities to improve the quality and supply of child care services The Secretary shall pay to each State with such an approved application, and that State shall be entitled to, an amount equal to the product of 1.06045 and the FMAP of expenditures (which product shall be the Federal share of such expenditures) to carry out activities to improve the quality and supply of child care services under subsection (h)(2)(C) subject to the limit specified in clause (i) of such subsection. (iii) Administration The Secretary shall pay to each State with such an approved application, and that State shall be entitled to, an amount equal to 53.022 percent of expenditures (which shall be the Federal share of such expenditures) for the costs of administration incurred by the State— (I) which shall include costs incurred by the State in carrying out the child care program established in this section; and (II) which may include, at the option of the State, costs associated with carrying out requirements, policies, and procedures described in section 658H of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858f ). (B) Advance payment; retrospective adjustment For each of fiscal years 2025 through 2027, the Secretary shall make payments under this paragraph for a period on the basis of advance estimates of expenditures submitted by the State and such other investigation as the Secretary may find necessary, and shall reduce or increase the payments as necessary to adjust for any overpayment or underpayment for previous periods. No interest shall be charged or paid on any amount due because of an overpayment or underpayment for previous periods. (C) Territories and tribes For each of fiscal years 2025 through 2027, from the amounts appropriated under paragraph (2)(B) or (3)(B) of subsection (c) the Secretary shall make payments to territories, and Indian Tribes and Tribal organizations, as the case may be, with applications submitted as described in paragraph (1), and approved by the Secretary for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary (subject to subsection (d)(2)), with the requirements applicable to States. The Secretary shall make the payments to such territories, Indian Tribes, and Tribal organizations on the basis of their relative need. Each entity that is such a territory, Indian Tribe, or Tribal organization shall be entitled to such a payment as may be necessary to carry out the activities described in subsection (h)(2), and to pay for the costs of administration incurred by the entity, which shall include costs incurred by the entity in carrying out the child care program, and which may include, at the option of the entity, costs associated with carrying out requirements, policies, and procedures described in section 658H of the Child Care and Development Block Grant Act of 1990. (h) Use of funds (1) Use of funds for fiscal years 2022 through 2024 For each of fiscal years 2022 through 2024, a State (as defined in subsection (g)(1)) that receives a payment under subsection (g)(1) shall use such payment for— (A) assistance for direct child care services, which shall consist only of— (i) assistance for direct child care services for eligible children through grants and contracts, and child care certificates; (ii) increasing child care provider payment rates to support the cost of providing high-quality direct child care services, including rates sufficient to support increased wages for staff of eligible child care providers; and (iii) waiving or reducing copayments, to ensure that the families of children receiving assistance under this section do not pay more than 7 percent of family income toward the cost of the child care involved for all eligible children in the family; (B) activities described in paragraph (2)(C), without regard to the requirement in clause (i)(I) of such paragraph or to the references to a quality child care amount in such paragraph; and (C) costs of administration incurred by the State, which shall include the costs described in subclause (I) of subsection (g)(2)(A)(iii) and may, at the option of the State, include the costs described in subclause (II) of such subsection. (2) Use of funds for fiscal years 2025 through 2027 (A) In general Starting on October 1, 2024, a State shall use amounts provided to the State under subsection (g)(2) for direct child care services (provided on a sliding fee scale basis), activities to improve the quality and supply of child care services consistent with paragraph (C), and State administration consistent with subsection (g)(2)(A)(iii). (B) Child care assistance for eligible children (i) In general For each of fiscal years 2025 through 2027, from payments made to the State under subsection (g)(2) for that particular fiscal year, the State shall ensure that parents of eligible children can access direct child care services provided by an eligible child care provider under this section through a grant or contract as described in clause (ii) or a certificate as described in clause (iii). (ii) Grants and contracts The State shall award grants or contracts to eligible child care providers, consistent with the requirements under this section, for the provision of child care services for eligible children under this section that, at a minimum— (I) support providers’ operating expenses to meet and sustain health, safety, quality, and wage standards required under this section; and (II) address underserved populations described in subsection (f)(4)(H). (iii) Certificates The State shall issue a child care certificate directly to a parent who shall use such certificate only as payment for direct child care services or as a deposit for direct child care services if such a deposit is required of other children being cared for by the provider, consistent with the requirements under this section. (C) Activities to improve the quality and supply of child care services (i) Quality child care activities (I) Amount For each of fiscal years 2025 through 2027, from the total of the payments made to the State for a particular fiscal year, the State shall reserve and use a quality child care amount equal to not less than 5 percent and not more than 10 percent of the amount made available to the State through such payments for the previous fiscal year. (II) Use of quality child care amount Each State shall use the quality child care amount described in subclause (I) to implement activities described in this subparagraph to improve the quality and supply of child care services by eligible child care providers, and increase the number of available slots in the State for child care services funded under this section, prioritizing assistance for child care providers who are in underserved communities and who are providing, or are seeking to provide, child care services for underserved populations identified in subsection (f)(4)(H). (III) Administration Activities funded under this subparagraph may be administered— (aa) directly by the lead agency; or (bb) through other State government agencies, local or regional child care resource and referral organizations, community development financial institutions, other intermediaries with experience supporting child care providers, or other appropriate entities that enter into a contract with the State to provide such assistance. (ii) Quality and supply activities Activities funded under the quality child care amount described in clause (i) shall include each of the following: (I) Startup grants and supply expansion grants (aa) In general From a portion of the quality child care amount, a State shall make startup and supply expansion grants to support child care providers who are providing, or seeking to provide, child care services to children receiving assistance under this section, with priority for providers providing or seeking to provide child care in underserved communities and for underserved populations identified in subsection (f)(4)(H), to— (AA) support startup and expansion costs; and (BB) assist such providers in meeting health and safety requirements, achieving licensure, and meeting requirements in the State’s tiered system for measuring the quality of eligible child care providers. (bb) Requirement As a condition of receiving a startup or supply expansion grant under this subclause, a child care provider shall commit to meeting the requirements of an eligible provider under this section, and providing child care services to children receiving assistance under this section on an ongoing basis. (II) Quality grants From a portion of the quality child care amount, a State shall provide quality grants to support eligible child care providers in providing child care services to children receiving assistance under this section to improve the quality of such providers, including— (aa) supporting such providers in meeting or making progress toward the requirements for the highest tier of the State’s tiered system for measuring the quality of eligible child care providers under subsection (f)(4)(B); and (bb) supporting such providers in sustaining child care quality, including supporting increased wages for staff and supporting payment of fixed costs. (III) Facilities grants (aa) In general From a portion of the quality child care amount, a State shall provide support, including through awarding facilities grants, for remodeling, renovation, or repair of a building or facility to the extent permitted under section 658F(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858 ). (bb) Additional uses For fiscal years 2022 through 2024, and in subsequent years with approval from the Secretary, a State may award such facilities grants for construction, permanent improvement, or major renovation of a building or facility primarily used for providing direct child care services, in accordance with the following: (AA) Federal interest provisions will not apply to the renovation or rebuilding of privately-owned family child care homes under this subclause. (BB) Eligible child care providers may not use funds for buildings or facilities that are used primarily for sectarian instruction or religious worship. (CC) The Secretary shall develop parameters on the use of funds under this subclause for family child care homes. (DD) The Secretary shall not retain Federal interest after a period of 10 years in any facility built, renovated, or repaired with funds awarded under this subclause. (IV) Limitation For purposes of subclause (III), the Secretary shall not— (aa) enter into any agreement related to funds for activities carried out under subclause (III)— (AA) that is for a term extending beyond September 30, 2031; and (BB) under which any payment could be outlaid after September 30, 2031; or (bb) use any other funds available to the Secretary, other than funds provided under this section, to satisfy obligations initially made for activities carried out under subclause (III). (V) State activities to improve the quality of child care services A State shall use a portion of the quality child care amount to improve the quality of child care services available for this program, which shall include— (aa) supporting the training and professional development of the early childhood workforce, including supporting degree attainment and credentialing for early childhood educators; (bb) developing, implementing, or enhancing the State’s tiered system for measuring the quality of eligible child care providers under subsection (f)(4)(B); (cc) improving the supply and quality of developmentally appropriate and inclusive child care programs and services for underserved populations described in subsection (f)(4)(H); (dd) improving access to child care services for vulnerable children as defined by the lead agency pursuant to subsection (b)(4)(A)(iv)(II); and (ee) providing outreach and enrollment support for families of eligible children. (VI) Technical assistance From a portion of the quality child care amount, the State shall provide technical assistance to increase the supply and quality of eligible child care providers who are providing, or seeking to provide, child care services to children receiving assistance under this section, including providing support to enable providers to achieve licensure. (i) Grants to localities and awards to Head Start programs (1) Eligible locality defined In this subsection, the term eligible locality means a city, county, or other unit of general local government. (2) Grants to localities (A) In general The Secretary shall use funds appropriated under subsection (c)(4) to award local Birth Through Five Child Care and Early Learning Grants, in accordance with rules established by the Secretary, to eligible localities located in States that have not received payments under subsection (g). The Secretary shall award the grants to eligible localities in such a State from the allotment made for that State under subparagraph (B). (B) Allotments (i) Poverty line defined In this subparagraph, the term poverty line means the poverty line defined and revised as described in section 673 of the Community Services Block Grant Act ( 42 U.S.C. 9902 ). (ii) General authority For each State described in subparagraph (A), the Secretary shall allot for the State for a fiscal year an amount that bears the same relationship to the funds appropriated under subsection (c)(4) for the fiscal year as the number of children from families with family incomes that are below 200 percent of the poverty line, and who are under the age of 6, in the State bears to the total number of all such children in all States described in subparagraph (A). (C) Application To receive a grant from the corresponding State allotment under subparagraph (B), an eligible locality shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. The requirements for the application shall, to the greatest extent practicable, be consistent with the State plan requirements applicable to States under subsection (f). (D) Requirements The Secretary shall specify the requirements for an eligible locality to provide access to child care, which child care requirements shall, to the greatest extent practicable, be consistent with the requirements applicable to States under this section. (E) Recoupment of unused funds Notwithstanding any other provision of this section, for each of fiscal years 2023 through 2027, the Secretary shall have the authority to recoup any unused funds allotted under subparagraph (B) for awards under paragraph (3)(A) to Head Start agencies in accordance with paragraph (3). (3) Head Start expansion in nonparticipating States (A) In general The Secretary shall use funds appropriated under subsection (c)(5) or recouped under paragraph (2) to make awards to Head Start agencies in a State described in paragraph (2)(A) to carry out the purposes of the Head Start Act in such State. (B) Rule For purposes of carrying out the Head Start Act in circumstances not involving awards under this paragraph, funds awarded under subparagraph (A) shall not be included in the calculation of a base grant as such term is defined in section 640(a)(7)(A) of the Head Start Act ( 42 U.S.C. 9835(a)(7)(A) ). (C) Definition In this paragraph, the term Head Start agency means an entity designated or eligible to be designated as a Head Start agency under section 641(a)(1) of the Head Start Act or as an Early Head Start agency (by receiving a grant) under section 645A(a) of such Act. (4) Priority for serving underserved populations In making determinations to award a grant or make an award under this subsection, the Secretary shall give priority to entities serving a high percentage of individuals from underserved populations described in subsection (f)(4)(H). (j) Program requirements (1) Nondiscrimination The following provisions of law shall apply to any program or activity that receives funds provided under this section: (A) Title IX of the Education Amendments of 1972. (B) Title VI of the Civil Rights Act of 1964. (C) Section 504 of the Rehabilitation Act of 1973. (D) The Americans with Disabilities Act of 1990. (E) Section 654 of the Head Start Act. (2) Prohibition on additional eligibility requirements No individual shall be determined, by the Secretary, a State, or another recipient of funds under this section, to be ineligible for child care services provided under this section, except on the basis of eligibility requirements specified in or under this section. (3) Maintenance of effort (A) In general A State that receives payments under this section for a fiscal year, in using the funds made available through the payments, shall maintain the expenditures of the State for child care services at the average level of such expenditures by the State for the 3 preceding fiscal years. (B) Counting rule State expenditures counted for purposes of meeting the requirement in subparagraph (A) may also be counted for purposes of meeting the requirement to provide a non-Federal share under clause (i), (ii), or (iii), as appropriate, of subsection (g)(2)(A). (4) Supplement not supplant Funds received under this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide child care services in the State on the date of enactment of this Act, calculated as the average amount of such Federal, State, and local public funds expended for fiscal years 2019, 2020, and 2021. (5) Allowable sources of non-federal share For purposes of providing the non-Federal share required under subsection (g)(2), a State’s non-Federal share— (A) for direct child care services described in subsection (g)(2)(A)(i)— (i) shall not include contributions being used as a non-Federal share or match for another Federal award; and (ii) shall be provided from State or local sources, contributions from philanthropy or other private organizations, or a combination of such sources and contributions; and (B) for activities to improve the quality and supply of child care services described in subsection (g)(2)(A)(ii), and administration described in subsection (g)(2)(A)(iii)— (i) shall not include contributions being used as a non-Federal share or match for another Federal award; (ii) shall be provided from State or local sources, contributions from philanthropy or other private organizations, or a combination of such sources and contributions; and (iii) may be in cash or in kind, fairly evaluated, including facilities or property, equipment, or services. (6) Information for determinations For purposes of determinations of participation in an eligible activity, the provision of information for such determinations by Federal agencies other than the Department of Health and Human Services shall not be required. (7) Reports A State, Indian Tribe, Tribal organization, or territory receiving funds under this section shall provide to the Secretary such periodic reports, providing a detailed accounting of the uses of the funds received under this section, as the Secretary may require for the administration of this section. The State, Indian Tribe, Tribal organization, or territory shall begin to provide the reports beginning not later than 60 days after its initial receipt of a payment under subsection (g)(1). (k) Monitoring and enforcement (1) Review of compliance with requirements and state plan The Secretary shall review and monitor compliance of States, territories, Tribal entities, and local entities with this section and State compliance with the plan described in subsection (f)(4). (2) Issuance of rule The Secretary shall establish by rule procedures for— (A) receiving, processing, and determining the validity of complaints or findings concerning any failure of a State to comply with the State plan or any other requirement of this section; (B) notifying a State when the Secretary has determined there has been a failure by the State to comply with a requirement of this section; and (C) imposing sanctions under this subsection for such a failure. (l) Federal administration Using funds reserved under subsection (c)(6), the Secretary shall carry out administration of this section, shall provide (including through the use of grants or cooperative agreements) technical assistance to States, territories, Indian Tribes, and Tribal organizations, and shall carry out research, and evaluations related to this section. (m) Transition provisions (1) Treatment of child care and development block grant funds For each of fiscal years 2025, 2026, and 2027, a State receiving assistance under this section shall not use more than 10 percent of any funds received under the Child Care and Development Block Grant Act of 1990 to provide assistance for direct child care services to children who are under the age of 6, are not yet in kindergarten, and are eligible under that Act. (2) Special rules regarding eligibility Any child who is less than 6 years of age, is not yet in kindergarten, and is receiving assistance under the Child Care and Development Block Grant Act of 1990 on the date funding is first allocated to the lead agency for the State, territory, Indian Tribe, or Tribal organization involved under this section— (A) shall be deemed immediately eligible to receive assistance under this section; and (B) may continue to use the child care provider of the family’s choice. (3) Transition procedures The Secretary is authorized to institute procedures for implementing this section, including issuing guidance for States receiving funds under subsection (g)(1). 23002. Universal preschool (a) Definitions In this section: (1) Child experiencing homelessness The term child experiencing homelessness means an individual who is a homeless child or youth under section 725 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11434a ). (2) Child with a disability The term child with a disability has the meaning given the term in section 602 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1401 ). (3) Comprehensive services The term comprehensive services means services that are provided to low-income children and their families, and that are health, educational, nutritional, social, and other services that are determined, based on family needs assessments, to be necessary, within the meaning of section 636 of the Head Start Act ( 42 U.S.C. 9831 ). (4) Dual language learner The term dual language learner means a child who is learning 2 or more languages at the same time, or a child who is learning a second language while continuing to develop the child's first language. (5) Eligible child The term eligible child means a child who is age 3 or 4, on the date established by the applicable local educational agency for kindergarten entry. (6) Eligible provider The term eligible provider means— (A) a local educational agency, acting alone or in a consortium or in collaboration with an educational service agency (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )), that is licensed by the State or meets comparable health and safety standards; (B) a Head Start agency or delegate agency funded under the Head Start Act; (C) a licensed center-based child care provider, licensed family child care provider, or community– or neighborhood–based network of licensed family child care providers; or (D) a consortium of entities described in any of subparagraphs (A), (B), and (C). (7) Head Start agency The term Head Start agency , as used in paragraph (6)(B), or subsection (c)(5)(D) or (f)(1), means an entity designated as a Head Start agency under section 641(a)(1) of the Head Start Act or as an Early Head Start agency (by receiving a grant) under section 645A(a) of such Act. (8) Indian Tribe The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ). (9) Local educational agency The term local educational agency has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). (10) Poverty line The term poverty line means the poverty line defined and revised as described in section 673 of the Community Services Block Grant Act ( 42 U.S.C. 9902 ). (11) Secretary The term Secretary means the Secretary of Health and Human Services. (12) State The term State means each of the several States and the District of Columbia. (13) Territory The term territory means each of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (14) Tribal organization The term Tribal organization has the meaning given the term tribal organization in section 658P of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ). (b) Universal preschool (1) Appropriations for States (A) In general In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (i) $4,000,000,000, to remain available until September 30, 2027, for payments to States, for carrying out this section (except provisions and activities covered by paragraph (2)) in fiscal year 2022; (ii) $6,000,000,000, to remain available until September 30, 2027, for payments to States, for carrying out this section (except provisions and activities covered by paragraph (2)) in fiscal year 2023; and (iii) $8,000,000,000, to remain available until September 30, 2027, for payments to States, for carrying out this section (except provisions and activities covered by paragraph (2)) in fiscal year 2024. (B) Additional appropriations In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, to remain available for 1 additional fiscal year, for payments to States, for carrying out this section (except provisions and activities covered by paragraph (2)). (2) Additional appropriations In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (A) $2,500,000,000, to remain available until September 30, 2027, for carrying out payments to Indian Tribes and Tribal organizations for activities described in this section; (B) $1,000,000,000, to remain available until September 30, 2027, for carrying out payments to the territories, to be distributed among the territories on the basis of their relative need, as determined by the Secretary in accordance with the objectives of this section, for activities described in this section; (C) $300,000,000, to remain available until September 30, 2027, for carrying out payments to eligible local entities that serve children in families who are engaged in migrant or seasonal agricultural labor, for activities described in this section; (D) (i) $165,000,000, to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2022; (ii) $200,000,000 to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2023; (iii) $200,000,000, to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2024; (iv) $208,000,000, to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2025; (v) $212,000,000, to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2026; and (vi) $216,000,000, to remain available until September 30, 2027, for carrying out Federal activities to support the activities funded under this section, including administration, monitoring, technical assistance, and research, in fiscal year 2027; (E) (i) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2022; (ii) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2023; (iii) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2024; (iv) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2025; (v) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2026; and (vi) $2,500,000,000, to remain available until September 30, 2027, to improve compensation of Head Start staff consistent with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5) of the Head Start Act ( 42 U.S.C. 9835(a)(5) ), notwithstanding section 653(a) of such Act ( 42 U.S.C. 9848(a) ), in fiscal year 2027; (F) (i) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (f)(2) in fiscal year 2023; (ii) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (f)(2) in fiscal year 2024; (iii) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (f)(2) in fiscal year 2025; (iv) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (f)(2) in fiscal year 2026; and (v) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (f)(2) in fiscal year 2027; and (G) (i) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (f)(3) in fiscal year 2023; (ii) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (f)(3) in fiscal year 2024; (iii) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (f)(3) in fiscal year 2025; (iv) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (f)(3) in fiscal year 2026; and (v) $1,900,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (f)(3) in fiscal year 2027. (c) Payments for state universal preschool services (1) In general A State that has submitted, and had approved by the Secretary, the State plan described in paragraph (5) is entitled to a payment under this subsection. (2) Payments to states (A) Payments for fiscal years 2022 through 2024 From amounts made available under subsection (b)(1) for any of fiscal years 2022 through 2024, the Secretary, in collaboration with the Secretary of Education, shall allot for the fiscal year, to each State that has a State plan under paragraph (5) or transitional State plan under paragraph (7) that is approved for a period including that fiscal year, an amount for the purpose of providing grants to eligible providers to provide high-quality preschool, using a formula that considers— (i) the proportion of the number of children who are below the age of 6 and whose families have a family income at or below 200 percent of the poverty line for the most recent year for which satisfactory data are available, residing in the State, as compared to the number of such children, who reside in all States with approved plans for the fiscal year for which the allotment is being made; and (ii) the existing Federal preschool investments in the State under the Head Start Act, as of the date of the allotment. (B) Payments for fiscal years 2025 through 2027 (i) Preschool services For each of fiscal years 2025 through 2027, the Secretary shall pay to each State with an approved State plan under paragraph (5), an amount for that year equal to— (I) 95.440 percent of the State’s expenditures in the year for preschool services provided under subsection (d), for fiscal year 2025; (II) 79.534 percent of the State’s expenditures in the year for such preschool services, for fiscal year 2026; and (III) 63.627 percent of the State’s expenditures in the year for such preschool services, for fiscal year 2027. (ii) State activities The Secretary shall pay to each State with an approved State plan under paragraph (5) an amount for a fiscal year equal to 53.022 percent of the amount of the State’s expenditures for the activities described in paragraph (3), except that in no case shall a payment for a fiscal year under this clause exceed the amount equal to 10 percent of the State’s expenditures described in clause (i) for such fiscal year. (iii) Non-federal share The remainder of the cost paid by the State for preschool services, that is not provided under clause (i), shall be considered the non-Federal share of the cost of those services. The remainder of the cost paid by the State for State activities, that is not provided under clause (ii), shall be considered the non-Federal share of the cost of those activities. (iv) Advance payment; retrospective adjustment The Secretary shall make a payment under clause (i) or (ii) for a year on the basis of advance estimates of expenditures submitted by the State and such other investigation as the Secretary may find necessary, and shall reduce or increase the payment as necessary to adjust for any overpayment or underpayment for a previous year. (C) Authorities (i) Fiscal years 2022 through 2024 Notwithstanding any other provision of this paragraph, for each of fiscal years 2022 through 2024, the Secretary shall have the authority to reallot funds that were allotted under subparagraph (A) from any State without an approved application under paragraph (5) by the date required by the Secretary, to States with an approved application under that subsection. (ii) Fiscal year 2025 Notwithstanding any other provision of this section, on October 1, 2024, the Secretary shall have the authority to reallot funds from payments made from allotments under subparagraph (A) that are unobligated on such date, to any State without such unobligated funds that is a State with an approved application under paragraph (5), to carry out the purposes of this section. (3) State activities A State that receives a payment under paragraph (2) shall carry out all of the following activities: (A) State administration of the State preschool program described in this section. (B) Supporting a continuous quality improvement system for providers of preschool services participating, or seeking to participate, in the State preschool program, through the use of data, researching, monitoring, training, technical assistance, professional development, and coaching. (C) Providing outreach and enrollment support for families of eligible children. (D) Supporting data systems building. (E) Supporting staff of eligible providers in pursuing credentials and degrees, including baccalaureate degrees. (F) Supporting activities that ensure access to inclusive preschool programs for children with disabilities. (G) Providing age-appropriate transportation services for children, which at a minimum shall include transportation services for children experiencing homelessness and children in foster care. (H) Conducting or updating a statewide needs assessment of access to high-quality preschool services. (4) Lead agency The Governor of a State desiring for the State to receive a payment under this subsection shall designate a lead agency (such as a State agency or joint interagency office) for the administration of the State's preschool program under this section. (5) State plan In order to be eligible for payments under this section, the Governor of a State shall submit a State plan to the Secretary for approval by the Secretary, in collaboration with the Secretary of Education, at such time, in such manner, and containing such information as the Secretary shall by rule require, that includes a plan for achieving universal, high-quality, free, inclusive, and mixed-delivery preschool services. Such plan shall include, at a minimum, each of the following: (A) A certification that— (i) the State has in place developmentally appropriate, evidence-based preschool standards that, at a minimum, are as rigorous as the standards specified in subparagraph (B) of section 641A(a)(1) of the Head Start Act ( 42 U.S.C. 9836a(a)(1) ) and include program standards for class sizes and ratios; and (ii) the State will coordinate such standards with other early learning standards in the State. (B) An assurance that the State will ensure— (i) all preschool services in the State funded under this section will— (I) be universally available to all children in the State without any additional eligibility requirements; (II) be high-quality, free, and inclusive; and (III) by not later than 1 year after the State receives such funding, meet the State’s preschool education standards described in subparagraph (A); and (ii) that the local preschool programs in the State funded under this section will— (I) offer programming that meets the duration requirements of at least 1,020 annual hours; (II) adopt policies and practices to conduct outreach and provide expedited enrollment, including prioritization, to— (aa) children experiencing homelessness (which, in the case of a child attending a program provided by an eligible provider described in subsection (a)(6)(A), shall include immediate enrollment for the child); (bb) children in foster care or kinship care; (cc) children in families who are engaged in migrant or seasonal agricultural labor; (dd) children with disabilities, including eligible children who are served under part C of the Individuals with Disabilities Education Act; and (ee) dual language learners; (III) provide for salaries, and set schedules for salaries, for staff of providers in the State preschool program that are equivalent to salaries of elementary school staff with similar credentials and experience; (IV) at a minimum, provide a living wage for all staff of such providers; and (V) require educational qualifications for teachers in the preschool program including, at a minimum, requiring that lead teachers in the preschool program have a baccalaureate degree in early childhood education or a related field by not later than 6 years after the date on which the State first receives funds under this Act, except that— (aa) subject to item (bb), the requirements under this subclause shall not apply to individuals who were employed by an eligible provider or early education program for a cumulative 3 of the 5 years immediately preceding the date of enactment of this Act and have the necessary content knowledge and teaching skills for early childhood educators, as demonstrated through measures determined by the State; and (bb) nothing in this section shall require the State to lessen State requirements for educational qualifications, in existence on the date of enactment of this Act, to serve as a teacher in a State preschool program. (C) For States with existing publicly funded State preschool programs (as of the date of submission of the State plan), a description of how the State plans to use funding provided under this section to ensure that such existing programs in the State meet the requirements of this section for a State preschool program. (D) A description of how the State, in establishing and operating the State preschool program supported under this section, will— (i) support a mixed-delivery system for any new slots funded under this section, including by facilitating the participation of Head Start programs and programs offered by licensed child care providers; (ii) ensure the State preschool program does not disrupt the stability of infant and toddler child care throughout the State; (iii) ensure adequate consultation with the State Advisory Council on Early Childhood Education and Care designated or established in section 642B(b)(1)(A)(i) of the Head Start Act ( 42 U.S.C. 9837b(b)(1)(A)(i) ) in the development of its plan, including consultation in how the State intends to distribute slots under clause (v); (iv) partner with Head Start agencies to ensure the full utilization of Head Start programs within the State; and (v) distribute new preschool slots equitably among child care (including family child care) providers, Head Start agencies, and schools within the State. (E) A certification that the State, in operating the program described in this section for a fiscal year— (i) will not reduce the total preschool slots provided in State-funded preschool programs from the number of such slots in the previous fiscal year; or (ii) if the number of eligible children identified in the State declines from the previous fiscal year, will maintain at least the previous year's ratio of the total preschool slots described in clause (i) to eligible children so identified. (F) An assurance that the State will use funding provided under this section to ensure children with disabilities have access to and participate in inclusive preschool programs consistent with provisions in the Individuals with Disabilities Education Act, and a description of how the State will collaborate with entities carrying out programs under section 619 or part C of the Individuals with Disabilities Education Act, to support inclusive preschool programs. (G) A certification that the State will support the continuous quality improvement of programs providing preschool services under this section, including support through technical assistance, monitoring, and research. (H) A certification that the State will ensure a highly qualified early childhood workforce to support the requirements of this section. (I) An assurance that the State will meet the requirements of clauses (ii) and (iii) of section 658E(c)(2)(T) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c)(2)(T) ), with respect to funding and assessments under this section. (J) A certification that subgrant and contract amounts provided as described in subsection (d) will be sufficient to enable eligible providers to meet the requirements of this section, and will provide for increased payment amounts based on the criteria described in subclauses (III) and (IV) of subparagraph (B)(ii). (K) An agreement to provide to the Secretary such periodic reports, providing a detailed accounting of the uses of funding received under this section, as the Secretary may require for the administration of this section. (6) Duration of the plan Each State plan shall remain in effect for a period of not more than 3 years. Amendments to the State plan shall remain in effect for the duration of the plan. (7) Transitional state plan (A) In general The Secretary shall develop parameters for, and allow a State to submit for purposes of this subsection for a period of not more than 3 years, a transitional State plan, at such time, in such manner and containing such information as the Secretary shall require. (B) Contents The transitional plan shall— (i) demonstrate that the State will meet the requirements of such plan as determined by the Secretary; and (ii) include, at a minimum— (I) an assurance that the State will submit a State plan under paragraph (5); (II) a description of how the funds received by the State under this section will be spent to expand access to universal, high-quality, free, inclusive, and mixed-delivery preschool in alignment with the requirements of this section; and (III) such data as the Secretary may require on the provision of preschool services in the State. (d) Subgrants and contracts for local preschool programs (1) Subgrants and contracts (A) In general A State that receives a payment under subsection (c)(2) for a fiscal year shall use amounts provided through the payment to pay the costs of subgrants to, or contracts with, eligible providers to operate universal, high-quality, free, and inclusive preschool programs (which State-funded programs may be referred to in this section as local preschool programs ) through the State preschool program in accordance with paragraph (3). A State shall reduce or increase the amounts provided under such subgrants or contracts if needed to adjust for any overpayment or underpayment described in subsection (c)(2)(B)(iv). (B) Amount A State shall award a subgrant or contract under this subsection in a sufficient amount to enable the eligible provider to operate a local preschool program that meets the requirements of subsection (c)(5)(B), which amount shall reflect variations in the cost of preschool services by geographic area, type of provider, and age of child, and the additional costs associated with providing inclusive preschool services for children with disabilities. (C) Duration The State shall award a subgrant or contract under this subsection for a period of not less than 3 years, unless the subgrant or contract is terminated or suspended, or the subgrant period is reduced, for cause. (2) Enhanced payments for comprehensive services In awarding subgrants or contracts under this subsection and in addition to meeting the requirements of paragraph (1)(B), the State shall award subgrants or contracts with enhanced payments to eligible providers that offer local preschool programs funded under this subsection to a high percentage of low-income children to support comprehensive services. (3) Establishing and expanding universal preschool programs (A) Establishing and expanding universal preschool programs in high-need communities In awarding subgrants or contracts under this subsection, the State shall first prioritize establishing and expanding universal local preschool programs within and across high-need communities by awarding subgrants or contracts to eligible providers operating within and across, or with capacity to operate within and across, such high-need communities. The State shall— (i) use a research-based methodology approved by the Secretary to identify such high-need communities, as determined by— (I) the rate of poverty in the community; (II) rates of access to high-quality preschool within the community; and (III) other indicators of community need as required by the Secretary; and (ii) distribute funding for preschool services under this section within such a high-need community so that a majority of children in the community are offered such preschool services before the State establishes and expands preschool services in communities with lower levels of need. (B) Use of funds Subgrants or contracts awarded under subparagraph (A) shall be used to enroll and serve children in such a local preschool program involved, including by paying the costs— (i) of personnel (including classroom and administrative personnel), including compensation and benefits; (ii) associated with implementing the State’s preschool standards, providing curriculum supports, and meeting early learning and development standards; (iii) of professional development, teacher supports, and training; (iv) of implementing and meeting developmentally appropriate health and safety standards (including licensure, where applicable), teacher to child ratios, and group size maximums; (v) of materials, equipment, and supplies; and (vi) of rent or a mortgage, utilities, building security, indoor and outdoor maintenance, and insurance. (4) Establishing and expanding universal preschool programs in additional communities Once a State that receives a payment under subsection (c)(2) meets the requirements of paragraph (3) with respect to establishing and expanding local preschool programs within and across high-need communities, the State shall use funds from such payment to enroll and serve children in local preschool programs, as described in such paragraph, in additional communities in accordance with the metrics described in paragraph (3)(A)(i). Such funds shall be used for the activities described in clauses (i) through (vi) of paragraph (3)(B). (e) Payments for universal preschool services Indian Tribes and territories (1) Indian tribes and tribal organizations (A) In general For each of fiscal years 2022 through 2027, from the amount appropriated for Indian Tribes and Tribal organizations under subsection (b)(2)(A), the Secretary shall make payments to Indian Tribes and Tribal organizations with an application approved under subparagraph (B), and the Tribes and Tribal organizations shall be entitled to such payments for the purpose of carrying out the preschool program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (B) Applications An Indian Tribe or Tribal organization seeking a payment under this paragraph shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify. (2) Territories (A) In general For each of fiscal years 2022 through 2027, from the amount appropriated for territories under subsection (b)(2)(B), the Secretary shall make payments to the territories with an application approved under subparagraph (B), and the territories shall be entitled to such payments, for the purpose of carrying out the preschool program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. (B) Applications A territory seeking a payment under this paragraph shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify. (3) Lead agency The head of an Indian tribe or territory desiring for the Indian tribe or a related tribal organization, or territory, to receive a payment under this subsection shall designate a lead agency (such as a tribal or territorial agency or joint interagency office) for the administration of the preschool program of the Indian tribe or territory, under this section. (f) Grants to localities and Head Start expansion in nonparticipating States (1) Eligible locality defined In this subsection, the term eligible locality means a city, county, or other unit of general local government, a local educational agency, or a Head Start agency. (2) Grants to localities (A) In general The Secretary, in consultation with the Secretary of Education, shall use funds reserved in subsection (b)(2)(F) to award local universal preschool grants, in accordance with rules established by the Secretary of Health and Human Services, to eligible localities located in States that have not received payments under subsection (c)(2)(A). The Secretary shall award the grants to eligible localities in a State from the allotment made for that State under subparagraph (B). The Secretary shall specify the requirements for an eligible locality to conduct a preschool program under this subsection which shall, to the greatest extent practicable, be consistent with the requirements applicable to States under this section, for a universal, high-quality, free, and inclusive preschool program. (B) Allotments For each State described in subparagraph (A), the Secretary shall allot for the State for a fiscal year an amount that bears the same relationship to the funds appropriated under subsection (b)(2)(F) for the fiscal year as the number of children from families with family incomes at or below 200 percent of the poverty line, and who are under the age of 6, in the State bears to the total number of all such children in all States described in subparagraph (A). (C) Application To receive a grant from the corresponding State allotment under this subsection, an eligible locality shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. The requirements for the application shall, to the greatest extent practicable, be consistent with the State plan requirements applicable to States under this section. (D) Recoupment of unused funds Notwithstanding any other provision of this section, for each of fiscal years 2023 through 2027, the Secretary shall have the authority to recoup any unused funds allotted under subparagraph (B) for awards under paragraph (3)(A) to Head Start agencies in accordance with paragraph (3). (3) Head Start expansion in nonparticipating States (A) In general The Secretary shall use funds appropriated under subsection (b)(2)(G) or recouped under paragraph (2) to make awards to Head Start agencies in a State described in paragraph (2)(A) to carry out the purposes of the Head Start Act in such State. (B) Rule For purposes of carrying out the Head Start Act in circumstances not involving awards under this paragraph, funds awarded under subparagraph (A) shall not be included in the calculation of a base grant as such term is defined in section 640(a)(7)(A) of the Head Start Act ( 42 U.S.C. 9835(a)(7)(A) ). (C) Definition In this paragraph, the term Head Start agency means an entity designated or eligible to be designated as a Head Start agency under section 641(a)(1) of the Head Start Act or as an Early Head Start agency (by receiving a grant) under section 645A(a) of such Act. (4) Priority for serving underserved communities In making determinations to award a grant or make an award under this subsection, the Secretary shall give priority to entities serving communities with a high percentage of children from families with family incomes at or below 200 percent of the poverty line. (g) Allowable sources of non-Federal share For purposes of calculating the amount of the non-Federal share, as determined under subsection (c)(2)(B)(iii), relating to a payment under subsection (c)(2)(B), a State’s non-Federal share— (1) may be in cash or in kind, fairly evaluated, including facilities or property, equipment, or services; (2) shall include any increase in amounts spent by the State to expand half-day kindergarten programs in the State, as of the day before the date of enactment of this Act, into full-day kindergarten programs; (3) shall not include contributions being used as a non-Federal share or match for another Federal award; (4) shall be provided from State or local sources, contributions from philanthropy or other private organizations, or a combination of such sources and contributions; and (5) shall count not more than 100 percent of the State’s current spending on prekindergarten programs, calculated as the average amount of such spending by the State for fiscal years 2019, 2020, and 2021, toward the State’s non-Federal share. (h) Maintenance of effort (1) In general If a State reduces its combined fiscal effort per child for the State preschool program (whether a publicly funded preschool program or a program under this section) or through State supplemental assistance funds for Head Start programs assisted under the Head Start Act, or through any State spending on preschool services for any fiscal year that a State receives payments under subsection (c)(2) (referred to in this paragraph as the reduction fiscal year ) relative to the previous fiscal year, the Secretary, in collaboration with the Secretary of Education, shall reduce support for such State under such subsection by the same amount as the total reduction in that State fiscal effort for such reduction fiscal year. (2) Waiver The Secretary, in collaboration with the Secretary of Education, may waive the requirements of paragraph (1) if— (A) the Secretaries determine that a waiver would be appropriate due to a precipitous decline in the financial resources of a State as a result of unforeseen economic hardship, or a natural disaster, that has necessitated across-the-board reductions in State services during the 5-year period preceding the date of the determination, including for early childhood education programs; or (B) due to the circumstance of a State requiring reductions in specific programs, including early childhood education programs, the State presents to the Secretaries a justification and demonstration why other programs could not be reduced and how early childhood education programs in the State will not be disproportionately harmed by such State reductions. (i) Supplement not supplant Funds received under this section shall be used to supplement and not supplant other Federal, State, and local public funds expended on prekindergarten programs in the State on the date of enactment of this Act, calculated as the average amount of such Federal, State, and local public funds expended for fiscal years 2019, 2020, and 2021. (j) Nondiscrimination provisions The following provisions of law shall apply to any program or activity that receives funds provided under this section: (1) Title IX of the Education Amendments of 1972. (2) Title VI of the Civil Rights Act of 1964. (3) Section 504 of the Rehabilitation Act of 1973. (4) The Americans with Disabilities Act of 1990. (5) Section 654 of the Head Start Act. (k) Monitoring and enforcement (1) Review of compliance with requirements and state plan The Secretary shall review and monitor compliance of States, territories, Tribal entities, and local entities with this section and State compliance with the State plan described in subsection (c)(5). (2) Issuance of rule The Secretary shall establish by rule procedures for— (A) receiving, processing, and determining the validity of complaints or findings concerning any failure of a State to comply with the State plan or any other requirement of this section; (B) notifying a State when the Secretary has determined there has been a failure by the State to comply with a requirement of this section; and (C) imposing sanctions under this subsection for such a failure. E Child Nutrition and Related Programs 24001. Expanding community eligibility (a) Multiplier and threshold adjusted (1) Multiplier Clause (vii) of section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1759a(a)(1)(F) ) is amended to read as follows: (vii) Multiplier (I) Implementation in 2022–2027 For each school year beginning on or after July 1, 2022, and ending before July 1, 2027, the Secretary shall use a multiplier of 2.5. (II) Implementation after 2027 For each school year beginning on or after July 1, 2027, the Secretary shall use a multiplier of 1.6. . (2) Threshold Clause (viii) of section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1759a(a)(1)(F) ) is amended to read as follows: (viii) Threshold (I) Implementation in 2022–2027 For each school year beginning on or after July 1, 2022, and ending before July 1, 2027, the threshold shall be not more than 25 percent. (II) Implementation after 2027 For each school year beginning on or after July 1, 2027, the threshold shall be not more than 40 percent. . (b) Statewide community eligibility Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1759a(a)(1)(F) ) is amended by adding at the end the following: (xiv) Statewide community eligibility For each school year beginning on or after July 1, 2022, and ending before July 1, 2027, the Secretary shall establish a statewide community eligibility program under which, in the case of a State agency that agrees to provide funding from sources other than Federal funds to ensure that local educational agencies in the State receive the free reimbursement rate for 100 percent of the meals served at applicable schools— (I) the multiplier described in clause (vii) shall apply; (II) notwithstanding clause (viii), the threshold shall be zero; and (III) the percentage of enrolled students who were identified students shall be calculated across all applicable schools in the State regardless of local educational agency. . 24002. Summer electronic benefits transfer for children program The Richard B. Russell National School Lunch Act is amended by inserting after section 13 ( 42 U.S.C. 1761 ) the following: 13A. Summer electronic benefits transfer for children program (a) Program established The Secretary shall establish a program under which States and covered Indian Tribal organizations participating in such program shall, for summer 2023 and summer 2024 issue to eligible households summer EBT benefits— (1) in accordance with this section; and (2) for the purpose of providing nutrition assistance through electronic benefits transfer during the summer months for eligible children, to ensure continued access to food when school is not in session for the summer. (b) Summer EBT benefits requirements (1) Purchase options (A) Benefits issued by States (i) WIC participation States In the case of a State that participated in a demonstration program under section 749(g) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2010 ( Public Law 111–80 ; 123 Stat. 2132) during calendar year 2018 using a WIC model, summer EBT benefits issued pursuant to subsection (a) by such a State may only be used by the eligible household that receives such summer EBT benefits to purchase— (I) supplemental foods from retailers that have been approved for participation in— (aa) the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ); or (bb) the program under this section; or (II) food (as defined in section 3(k) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(k) )) from retail food stores that have been approved for participation in the supplemental nutrition assistance program established under such Act, in accordance with section 9 of such Act ( 7 U.S.C. 2018 ). (ii) Other States Summer EBT benefits issued pursuant to subsection (a) by a State not described in clause (i) may only be used by the eligible household that receives such summer EBT benefits to purchase food (as defined in section 3(k) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(k) )) from retail food stores that have been approved for participation in the supplemental nutrition assistance program established under such Act, in accordance with section 9(b) of such Act ( 7 U.S.C. 2018 ) or retail food stores that have been approved for participation in a Department of Agriculture grant funded nutrition assistance program in the Commonwealth of the Northern Mariana Islands, Puerto Rico, or American Samoa. (B) Benefits issued by covered Indian Tribal organizations Summer EBT benefits issued pursuant to subsection (a) by a covered Indian Tribal organization may only be used by the eligible household that receives such summer EBT benefits to purchase supplemental foods from retailers that have been approved for participation in— (i) the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ); or (ii) the program under this section. (2) Amount Summer EBT benefits issued pursuant to subsection (a)— (A) shall be— (i) for calendar year 2023, in an amount equal to $65 for each child in the eligible household per month during the summer; and (ii) for calendar year 2024, in an amount equal to the amount described in clause (i), adjusted to the nearest lower dollar increment to reflect changes to the cost of the thrifty food plan (as defined in section 3(u) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(u) ) for the 12-month period ending on November 30 of the preceding calendar year; and (B) may be issued— (i) in the form of an EBT card; or (ii) through electronic delivery. (c) Enrollment in program (1) State requirements States participating in the program under this section shall— (A) with respect to a summer, automatically enroll eligible children in the program under this section without further application; and (B) require local educational agencies to allow eligible households to opt out of participation in the program under this section and establish procedures for opting out of such participation. (2) Covered Indian Tribal organization requirements Covered Indian Tribal organizations participating in the program under this section shall, to the maximum extent practicable, meet the requirements under subparagraphs (A) through (C) of paragraph (1). (d) Implementation grants On and after January 1, 2022, the Secretary shall carry out a program to make grants to States and covered Indian Tribal organizations to build capacity for implementing the program under this section. (e) Alternate plans in the case of continuous school calendar The Secretary shall establish an alternative method for determining the schedule and number of days during which summer EBT benefits may be issued pursuant to subsection (a) in the case of children who are under a continuous school calendar. (f) Funding (1) Program funding In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2024, out of any money in the Treasury not otherwise appropriated, such sums, to remain available for the 2-year period following the date such amounts are made available, as may be necessary to carry out this section, including for administrative expenses incurred by the Secretary, States, covered Indian Tribal organizations, and local educational agencies. (2) Implementation grant funding In addition to amounts otherwise available, including under paragraph (1), there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, to carry out subsection (d). (g) Sunset The authority under this section shall terminate on September 30, 2024. (h) Definitions In this section: (1) Covered Indian Tribal organization The term covered Indian Tribal organization means an Indian Tribal organization that participates in the special supplemental nutrition program for women, infants, and children under section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ). (2) Eligible child The term eligible child means, with respect to a summer, a child who was, during the school year immediately preceding such summer— (A) certified to receive free or reduced price lunch under the school lunch program under this Act; (B) certified to receive free or reduced price breakfast under the school breakfast program under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ); or (C) enrolled in a school described in subparagraph (B), (C), (D), (E), or (F) of section 11(a)(1). (3) Eligible household The term eligible household means a household that includes at least 1 eligible child. . 24003. Healthy food incentives demonstration (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until expended, to provide— (1) technical assistance and evaluation with respect to the activities described in subparagraphs (A) through (D) of paragraph (2); and (2) grants and monetary incentives to carry out 1 or more of the following: (A) Improving the nutritional quality of meals and snacks served under a child nutrition program. (B) Enhancing the nutrition and wellness environment of institutions participating in a child nutrition program, including by reducing the availability of less healthy foods during the school day. (C) Increasing the procurement of fresh, local, regional, and culturally appropriate foods and foods produced by underserved or limited resource farmers, as defined by the Secretary of Agriculture, to be served as part of a child nutrition program. (D) Funding a statewide nutrition education coordinator— (i) to support individual school food authority nutrition education efforts; and (ii) to facilitate collaboration with other nutrition education efforts in the State. (b) State defined In this section, the term State has the meaning given the term in section 12(d) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1760(d) ). 24004. School kitchen equipment grants In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended through fiscal year 2030, for training and technical assistance to support scratch cooking and to award grants to States (as defined in section 12(d) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1760(d) )) to make competitive subgrants to local educational agencies and schools to purchase equipment with a value of greater than $1,000 that, with respect to the school lunch program established under the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751–1769j ) and the school breakfast program established under section 4 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1773 ), is necessary to serve healthier meals, improve food safety, and increase scratch cooking. F Human Services and Community Supports 25001. Assistive technology In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, for necessary expenses to carry out the Assistive Technology Act of 1998 ( 29 U.S.C. 3003(a) ). 25002. Family violence prevention and services funding In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended, for necessary administrative expenses to carry out subsections (c) and (d) of section 2204 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ). 25003. Pregnancy assistance fund Section 10214 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18204 ) is amended by adding at the end the following new sentence: In addition, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $25,000,000, to remain available until expended, to carry out this part in fiscal year 2022; (2) $25,000,000, to remain available until expended, to carry out this part in fiscal year 2023; and (3) $25,000,000, to remain available until expended, to carry out this part in fiscal year 2024. . 25004. Funding for the aging network and infrastructure (a) Appropriation In addition to amounts otherwise available, there are appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Department of Health and Human Services— (1) $75,000,000 for the Research, Demonstration, and Evaluation Center for the Aging Network for necessary expenses to carry out the activities of the Center under section 201(g) of the Older Americans Act of 1965 (OAA); (2) $655,000,000 for necessary expenses to carry out part B of title III of the OAA, including for— (A) supportive services of the type made available for fiscal year 2021 and authorized under such part; (B) investing in the aging services network for the purposes of improving the availability of supportive services, including investing in the aging services network workforce; (C) the acquisition, alteration, or renovation of facilities, including multipurpose senior centers and mobile units; and (D) construction or modernization of facilities to serve as multipurpose senior centers; (3) $140,000,000 for necessary expenses to carry out part C of title III of the OAA, including to support the modernization of infrastructure and technology, including kitchen equipment and delivery vehicles, to support the provision of congregate nutrition services and home delivered nutrition services under such part; (4) $150,000,000 for necessary expenses to carry out part E of title III of the OAA, including section 373(e) of such part; (5) $50,000,000 for necessary expenses to carry out title VI of the OAA, including part C of such title; (6) $50,000,000 for necessary expenses to carry out the long-term care ombudsman program under title VII of the OAA; (7) $59,000,000 for necessary expenses for technical assistance centers or national resource centers supported under the OAA, including all such centers that received funding under title IV of the OAA for fiscal year 2021, in order to support technical assistance and resource development related to culturally appropriate care management and services for older individuals with the greatest social need, including racial and ethnic minority individuals; (8) $15,000,000 for necessary expenses for technical assistance centers or national resource centers supported under the OAA that are focused on providing services for older individuals who are underserved due to their sexual orientation or gender identity; (9) $1,000,000 for necessary expenses for efforts of national training and technical assistance centers supported under the OAA to— (A) support expanding the reach of the aging services network to more effectively assist older individuals in remaining socially engaged and active; (B) provide additional support in technical assistance and training to the aging services network to address the social isolation of older individuals; (C) promote best practices and identify innovation in the field; and (D) continue to support a repository for innovations designed to increase the ability of the aging services network to tailor social engagement activities to meet the needs of older individuals; and (10) $5,000,000 for necessary expenses to carry out section 417 of the OAA. Amounts appropriated by this subsection shall remain available until expended. (b) Nonapplicability of certain requirements The non-Federal contribution requirements under sections 304(d)(1)(D) and 431(a) of the Older Americans Act of 1965, and section 373(h)(2) of such Act, shall not apply to— (1) any amounts made available under this section; or (2) any amounts made available under section 2921 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ). 25005. Technical assistance center for supporting direct care and caregiving (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services, acting through the Administrator for the Administration for Community Living, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, for necessary expenses to establish, directly or through grants, contracts, or cooperative agreements, a national technical assistance center (referred to in this section as the Center ) to— (1) provide technical assistance for supporting direct care workforce recruitment, education and training, retention, career advancement, and for supporting family caregivers and caregiving activities; (2) develop and disseminate a set of replicable models or evidence-based or evidence-informed strategies or best practices for— (A) recruitment, education and training, retention, and career advancement of direct support workers; (B) reducing barriers to accessing direct care services; and (C) increasing access to alternatives to direct care services, including assistive technology, that reduce reliance on such services; (3) provide recommendations for education and training curricula for direct support workers; and (4) provide recommendations for activities to further support paid and unpaid family caregivers, including expanding respite care. (b) Direct support worker defined The term direct support worker has the meaning given such term in section 22301. 25006. Funding to support unpaid caregivers (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services (referred to in this section as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until expended, for carrying out the purpose described in subsection (b). (b) Use of funding The Secretary, acting through the Assistant Secretary for Aging, shall use amounts appropriated by subsection (a) for necessary expenses to make awards, pursuant to section 373(i) of the Older Americans Act of 1965 ( 42 U.S.C. 3030s–1(i) ), to States, public agencies, private nonprofit agencies, institutions of higher education, and organizations, including Tribal organizations, for initiatives to address the behavioral health needs of family caregivers and older relative caregivers. (c) Supplement not supplant Amounts appropriated by this section shall be used to supplement and not supplant other Federal, State, or local public funds to support unpaid caregivers. 25007. Funding to support individuals with intellectual and developmental disabilities (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services (referred to in this section as the Secretary ), for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until expended, for carrying out the purpose described in subsection (b). (b) Use of funding The Secretary, acting through the Administrator of the Administration for Community Living, shall use amounts appropriated by subsection (a) for necessary expenses to award grants, contracts, or cooperative agreements to public or private nonprofit entities pursuant to section 162 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 ( 42 U.S.C. 15082 ) for initiatives to address the behavioral health needs of individuals with intellectual and developmental disabilities. (c) Supplement not supplant Amounts appropriated by this section shall be used to supplement and not supplant other Federal, State, or local public funds to support individuals with intellectual and developmental disabilities. 25008. Office of the Inspector General of the Department of Health and Human Services In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for the Office of Inspector General of the Department of Health and Human Services, for salaries and expenses necessary for oversight, investigations, and audits of programs, grants, and projects funded under subtitles D and F of this title. G National Service and Workforce Development in Support of Climate Resilience and Mitigation 26001. Corporation for national and community service and the National Service Trust (a) AmeriCorps State and national (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $3,200,000,000, to remain available until September 30, 2026, which shall be used to make funding adjustments to existing (as of the date of enactment of this Act) awards and make new awards to entities (whether or not such entities are already recipients of a grant or other agreement on the date of enactment of this Act) to support national service programs described in paragraphs (1)(A), (2)(A), (3)(A), and (5)(A) of subsection (a), and subsection (b)(2), of section 122 of the National and Community Service Act of 1990 and national service programs carrying out activities described in clauses (i), (ii), (iii), (v), (vi), and (vii) of paragraph (4)(B) of subsection (a) of such section, to increase living allowances and improve benefits of participants in such programs. (2) Requirements For the purposes of carrying out paragraph (1)— (A) the Corporation shall waive the requirements described in section 121(e)(1) of the National and Community Service Act of 1990, in whole or in part, if a recipient of a grant or other agreement for such a national service program demonstrates— (i) the recipient will serve underserved or low-income communities, and a significant percentage of participants in such program are low-income individuals; and (ii) without such waiver, the recipient cannot meet the requirements of this section; (B) section 189(a) of such Act shall be applied by substituting 125 percent of the amount of the minimum living allowance of a full-time participant per full-time equivalent position for $18,000 per full-time equivalent position ; and (C) section 140(a)(1) of such Act shall be applied by substituting 200 percent of the poverty line for the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 ( 42 U.S.C. 4955 ) . (b) State commissions (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $400,000,000, to remain available until September 30, 2026, which shall be used to make funding adjustments to existing (as of the date of enactment of this Act) awards and make new awards to States to establish or operate State Commissions on National and Community Service. (2) Match waiver For the purposes of carrying out paragraph (1), the Corporation shall waive the matching requirement described in section 126(a)(2) of the National and Community Service Act of 1990, in whole or in part, for a State Commission, if such State Commission demonstrates need for such waiver. (c) National civilian community corps In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $80,000,000, to remain available until September 30, 2029, which shall be used to increase the living allowance and benefits of participants in the National Civilian Community Corps authorized under section 152 of the National and Community Service Act of 1990. (d) AmeriCorps vista (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $600,000,000 to remain available until September 30, 2029, which shall be used to increase the subsistence allowances and improve benefits of participants in the Volunteers in Service to America program authorized under section 102 of the Domestic Volunteer Service Act of 1973. (2) Requirement For purposes of carrying out paragraph (1)— (A) section 105(b)(2)(A) of the Domestic Volunteer Service Act of 1973 shall be applied by substituting 200 percent for 95 percent ; and (B) section 105(b)(2)(B) of the Domestic Volunteer Service Act of 1973 shall be applied by substituting 210 percent for 105 percent . (e) National service in support of climate resilience and mitigation (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $6,915,000,000, which shall be used for the purposes specified in paragraph (3). (2) Availability of Funds Amounts appropriated under paragraph (1) shall— (A) be available until September 30, 2026, for national service programs described in paragraphs (1)(A), (2)(A), (3)(A), and (5)(A) of subsection (a), and subsection (b)(2), of section 122 of the National and Community Service Act of 1990 and national service programs carrying out activities described in clauses (i), (ii), (iii), (v), (vi), and (vii) of paragraph (4)(B) of subsection (a) of such section; and (B) be available until September 30, 2029, for National Civilian Community Corps programs authorized under section 152 of the National and Community Service Act of 1990 and Volunteers in Service to America programs authorized under section 102 of the Domestic Volunteer Service Act of 1973. (3) Use of Funds (A) In general The Corporation shall use amounts appropriated under paragraph (1) to fund programs described in subparagraph (B) to carry out projects or activities described in section 122(a)(3)(B) of the National and Community Service Act of 1990. (B) Programs The programs described in subparagraph (A) shall include— (i) national service programs described in paragraphs (1)(A), (2)(A), (3)(A), and (5)(A) of subsection (a), and subsection (b)(2), of section 122 of the National and Community Service Act of 1990 and national service programs carrying out activities described in clauses (i), (ii), (iii), (v), (vi), and (vii) of paragraph (4)(B) of subsection (a) of such section; (ii) National Civilian Community Corps programs authorized under section 152 of the National and Community Service Act of 1990; and (iii) Volunteers in Service to America programs authorized under section 102 of the Domestic Volunteer Service Act of 1973. (C) Terms In funding programs described in subparagraph (A), the Corporation shall ensure— (i) awards are made to entities that serve, and have representation from, low-income communities or communities experiencing (or at risk of experiencing) adverse health and environmental conditions; (ii) such programs utilize culturally competent and multilingual strategies; (iii) projects carried out through such programs are planned with community input, and implemented by diverse participants who are from communities being served by such programs; and (iv) such programs provide participants with workforce development opportunities, such as pre-apprenticeships that articulate to registered apprenticeship programs, and pathways to post-service employment in high-quality jobs, including registered apprenticeships. (4) Requirements For the purposes of carrying out paragraph (1)— (A) in implementing national service programs described in paragraph (3)(B)(i) and funded by the appropriations specified in paragraph (1)— (i) the Corporation shall waive the requirements described in section 121(e)(1) of the National and Community Service Act of 1990, in whole or in part, if a recipient of a grant or other agreement for the national service program involved demonstrates— (I) the recipient will serve underserved or low-income communities, and a significant percentage of participants in such program are low-income individuals; and (II) without such waiver, the recipient cannot meet the requirements of this section; (ii) section 189(a) of the National and Community Service Act of 1990 shall be applied by substituting 125 percent of the amount of the minimum living allowance of a full-time participant per full-time equivalent position for $18,000 per full-time equivalent position ; (iii) section 140(a)(1) of the National and Community Service Act of 1990 shall be applied by substituting 200 percent of the poverty line for the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 ( 42 U.S.C. 4955 ) ; and (iv) the Corporation shall waive the matching requirement described in section 126(a)(2) of the National and Community Service Act of 1990, in whole or in part, for a State Commission, if such State Commission demonstrates need for such waiver; and (B) in implementing national service programs described in paragraph (3)(B)(iii) and funded by the appropriations specified in paragraph (1)— (i) section 105(b)(2)(A) of the Domestic Volunteer Service Act of 1973 shall be applied by substituting 200 percent for 95 percent ; and (ii) section 105(b)(2)(B) of the Domestic Volunteer Service Act of 1973 shall be applied by substituting 210 percent for 105 percent . (f) Administrative costs (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $1,010,400,000, to remain available until September 30, 2029, which shall be used for Federal administrative expenses to carry out programs and activities funded under this section, including— (A) corrective actions to address recommendations arising from audits of the financial statements of the Corporation and the National Service Trust, and, in consultation with the Inspector General of the Corporation, the development of fraud prevention and detection controls and risk-based anti-fraud monitoring for grants and other financial assistance funded under this section; and (B) coordination of efforts and activities with the Departments of Labor and Education to support the national service programs funded under subsections (a), (c), (d), and (e) in improving the readiness of participants to transition to high-quality jobs or further education. (2) Fiscal year 2030 program administration In addition to amounts otherwise available, there is appropriated for fiscal year 2030, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $79,800,000, to remain available until September 30, 2030, which shall be used, in fiscal year 2030, for Federal administrative expenses to carry out programs and activities funded under this section. (3) Plan In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation, $300,000, to remain available until September 30, 2023, which shall be used by the Chief Executive Officer of the Corporation to— (A) develop, publish, and implement, not later than 180 days after the date of enactment of this Act, a project, operations, and management plan for funds appropriated under this section; and (B) consult with the Secretary of Labor and the Inspector General of the Corporation in developing the plan under subparagraph (A). (4) Outreach In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $49,500,000, to remain available until September 30, 2030, for outreach to and recruitment of members from communities traditionally underrepresented in national service programs and members of a community experiencing a significant dislocation of workers, including energy transition communities. (g) Office of Inspector General In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Corporation for National and Community Service, $75,000,000, to remain available until September 30, 2030, which shall be used for the Office of Inspector General of the Corporation for salaries and expenses necessary for oversight and audit of programs and activities funded under this section. (h) National Service Trust (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the National Service Trust, $1,150,000,000, to remain available until September 30, 2030, for— (A) administration of the National Service Trust; and (B) payment to the Trust for the provision of national service educational awards and interest expenses— (i) for participants, for a term of service supported by funds made available under subsection (e); and (ii) pursuant to section 145(a)(1)(A) of the National and Community Service Act of 1990. (2) Supplemental educational awards (A) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the National Service Trust, $1,660,000,000, to remain available until September 30, 2030, for payment to the National Service Trust for the purpose of providing a supplemental national service educational award to an individual eligible to receive a national service educational award pursuant to section 146(a), and the individual's transferee pursuant to section 148(f), of the National and Community Service Act of 1990, for a term of service that began after the date of enactment of this Act in a national service program (including a term of service supported by funds made available under subsection (e)). (B) Award availability The supplemental educational award referred to in subparagraph (A) shall be available to an individual or their transferee described in subparagraph (A) in accordance with the paragraph (3). (C) Calculation The amount of the supplemental educational award that shall be available to an individual or their transferee described in subparagraph (A) shall be calculated as follows: (i) Amount for full-time national service For an individual who completes a required term of full-time national service, or the individual’s transferee— (I) in a case in which the award year for which the national service position is approved by the Corporation is award year 2022-2023, 50 percent of the maximum amount of a Federal Pell Grant under section 401 of the Higher Education Act of 1965 that a student eligible for such Grant may receive in the aggregate for such award year; and (II) in a case in which the award year for which the national service position is approved by the Corporation is award year 2023-2024 or a subsequent award year, 50 percent of the total maximum Federal Pell Grant under section 401 of the Higher Education Act of 1965 that a student eligible for such Grant may receive in the aggregate for such award year. (ii) Amount for part-time national service For an individual who completes a required term of part-time national service, or the individual's transferee, 50 percent of the amount determined under clause (i). (iii) Amount for partial completion of national service For an individual released from completing the full-time or part-time term of service agreed to by the individuals, or the individual's transferee, the portion of the amount determined under clause (i) that corresponds to the portion of the term of service completed by the individual. (3) Period of availability for national service educational awards (A) In general Notwithstanding section 146(d) of the National and Community Service Act of 1990, relating to a period of time for use of a national service educational award, or any extensions to such time period granted under section 146(d)(2) of such Act, an individual eligible to receive a national service educational award for a term of service supported by funds made available under subsection (e), or the individual's transferee, and an individual eligible to receive a supplemental educational award described in paragraph (2) for a term of service, or the individual's transferee, shall not use, after September 30, 2030, the national service educational award or supplemental educational award for the term of service involved, and the national service educational award and supplemental educational award shall be available for the lengths of time described in subparagraph (B). (B) Lengths of time The lengths of time described in this subparagraph are as follows: (i) For an individual who completes the term of service involved by September 30, 2023 or the individual's transferee, until the end of the 7-year period beginning on that date. (ii) For an individual who completes such term of service by September 30, 2024 or the individual's transferee, until the end of the 6-year period beginning on that date. (iii) For an individual who completes such term of service by September 30, 2025 or the individual's transferee, until the end of the 5-year period beginning on that date. (iv) For an individual who completes such term of service by September 30, 2026 or the individual's transferee, until the end of the 4-year period beginning on that date. (v) For an individual who completes such term of service by September 30, 2027 or the individual's transferee, until the end of the 3-year period beginning on that date. (vi) For an individual who completes such term of service by September 30, 2028 or the individual's transferee, until the end of the 2-year period beginning on that date. (vii) For an individual who completes such term of service by September 30, 2029 or the individual's transferee, until the end of the 1-year period beginning on that date. (i) Limitation The funds made available under this section are subject to the condition that the Corporation shall not— (1) use such funds to make any transfer to the National Service Trust for any use, or enter into any agreement involving such funds— (A) that is for a term extending beyond September 30, 2031; or (B) for which or under which any payment could be outlaid after September 30, 2031; and (2) use any other funds available to the Corporation to liquidate obligations made under this section. (j) Definition For purposes of this section, the term registered apprenticeship program means an apprenticeship program registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor, or a State apprenticeship agency recognized by the Office of Apprenticeship, pursuant to the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663). 26002. Workforce development in support of climate resilience and mitigation (a) YouthBuild In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $450,000,000, to remain available until September 30, 2026, to support activities aligned with high-quality employment opportunities in industry sectors or occupations related to climate resilience or mitigation and aligned with the activities described in subsection (e)(3) of section 26001 by— (1) carrying out activities described in section 171(c)(2) of the Workforce Innovation and Opportunity Act; and (2) improving and expanding access to services, stipends, wages, and benefits described in subparagraphs (A)(vii) and (F) of section 171(c)(2) of such Act. (b) Job Corps (1) In general In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $450,000,000, to remain available until September 30, 2026, to support activities aligned with high-quality employment opportunities in industry sectors or occupations related to climate resilience or mitigation and aligned with the activities described in subsection (e)(3) of section 26001 by— (A) providing funds to operators and service providers to— (i) carry out the activities and services described in sections 148 and 149 of the Workforce Innovation and Opportunity Act; and (ii) improve and expand access to allowances and services described in section 150 of such Act; and (B) notwithstanding section 158(c) of such Act, constructing, rehabilitating, and acquiring Job Corps centers to support activities described in subparagraph (A). (2) Eligibility For the purposes of carrying out paragraph (1), an entity in a State or outlying area may be eligible to be selected as an operator or service provider. (c) Pre-apprenticeship, and Registered Apprenticeship Programs (1) Pre-apprenticeship programs In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, to carry out activities through grants, cooperative agreements, contracts, or other arrangements, to create or expand pre-apprenticeship programs that articulate to registered apprenticeship programs, are aligned with high-quality employment opportunities in industry sectors or occupations related to climate resilience or mitigation, and are aligned with the activities described in subsection (e)(3) of section 26001. (2) Pre-apprenticeship partnerships In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2026, to support partnerships between entities carrying out pre-apprenticeship programs that articulate to registered apprenticeship programs and entities funded under subsection (e) of section 26001 to ensure past and current participants in programs funded under subsection (e)(1) of section 26001 have access to such pre-apprenticeship programs. (3) Registered apprenticeship programs In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $450,000,000, to remain available until September 30, 2026, to carry out activities through grants, cooperative agreements, contracts, or other arrangements, to create or expand registered apprenticeship programs in climate-related nontraditional apprenticeship occupations. (4) Participants with Barriers to Employment and nontraditional apprenticeship populations In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $350,000,000, to remain available until September 30, 2026, for entities to carry out pre-apprenticeship programs described in paragraph (1), and registered apprenticeship program described in paragraph (3), serving a high number or high percentage of individuals with barriers to employment, including individuals with disabilities, or nontraditional apprenticeship populations. (d) Reentry employment opportunities program In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, for the Reentry Employment Opportunities program, which amount shall be used to support activities aligned with high-quality employment opportunities in industry sectors or occupations related to climate resilience or mitigation and aligned with the activities described in subsection (e)(3) of section 26001. (e) Paid youth employment opportunities In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Department of Labor, $350,000,000, to remain available until September 30, 2026, to carry out activities through grants, contracts, or cooperative agreements, for the purposes of providing in-school youth and out-of-school youth with paid work experiences authorized under section 129(c)(2)(C) of the Workforce Innovation and Opportunity Act, notwithstanding section 194(10) of such Act, that are— (1) carried out by public agencies or private nonprofit entities, including community-based organizations; (2) provided in conjunction with supportive services and other elements described in section 129(c)(2) of such Act; (3) aligned with the activities described in subsection (e)(3) of section 26001; and (4) designed to prepare participants for— (A) high-quality, unsubsidized employment opportunities in industry sectors or occupations related to climate resilience or mitigation; (B) enrollment in an institution of higher education (as defined in section 101 or 102(c) of the Higher Education Act of 1965); and (C) registered apprenticeship programs. (f) Department of Labor Inspector General In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, for salaries and expenses necessary for oversight, investigations, and audits of programs, grants, and projects of the Department of Labor funded under this section. (g) Administration (1) In general In addition to amounts otherwise available, there is appropriated to the Department of Labor for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $69,800,000, to remain available until September 30, 2029, for program administration within the Department of Labor for salaries and expenses necessary to implement this section. (2) Plan In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to the Department of Labor, $200,000, to remain available until September 30, 2023, which shall be used by the Secretary to— (A) develop, publish, and implement, not later than 180 days after the date of enactment of this Act, a project, operations, and management plan for funds appropriated under this section; and (B) consult with the Chief Executive Officer of the Corporation for National and Community Service in developing the plan under subparagraph (A). (h) Definition For purposes of this section: (1) Climate-related nontraditional apprenticeship occupation The term climate-related nontraditional apprenticeship occupation means an apprenticeable occupation— (A) that aligns with the activities described in subsection (e)(3) of section 26001; (B) in an industry sector that trains less than 10 percent of all civilian registered apprentices as of the date of the enactment of this Act; and (C) that is related to climate resilience or mitigation. (2) Registered apprenticeship program The term registered apprenticeship program means an apprenticeship program registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor, or a State apprenticeship agency recognized by the Office of Apprenticeship, pursuant to the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663). (3) Wioa definitions The terms community-based organization , individual with a barrier to employment , in-school youth , outlying area , and out-of-school youth have the meanings given such terms in paragraphs (10), (24), (27), (45), and (46), respectively, of section 3 of the Workforce Innovation and Opportunity Act. H Prescription Drug Coverage Provisions 27001. Requirements with respect to cost-sharing for certain insulin products (a) In general Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1185 et seq. ) is amended by adding at the end the following: 726. Requirements with respect to cost-sharing for certain insulin products (a) In general For plan years beginning on or after January 1, 2023, a group health plan or health insurance issuer offering group health insurance coverage shall provide coverage of selected insulin products, and with respect to such products, shall not— (1) apply any deductible; or (2) impose any cost-sharing in excess of the lesser of, per 30-day supply— (A) $35; or (B) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan or coverage, including price concessions received by or on behalf of third-party entities providing services to the plan or coverage, such as pharmacy benefit management services. (b) Definitions In this section: (1) Selected insulin products The term selected insulin products means at least one of each dosage form (such as vial, pump, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed) of insulin (as defined below), when available, as selected by the group health plan or health insurance issuer. (2) Insulin defined The term insulin means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act ( 42 U.S.C. 262 ) and continues to be marketed under such section, including any insulin product that has been deemed to be licensed under section 351(a) of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 ( Public Law 111–148 ) and continues to be marketed pursuant to such licensure. (c) Out-of-network providers Nothing in this section requires a plan or issuer that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan or issuer that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of-network provider. (d) Rule of construction Subsection (a) shall not be construed to require coverage of, or prevent a group health plan or health insurance coverage from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. (e) Application of cost-sharing towards deductibles and out-of-pocket maximums Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan or coverage. . (b) Clerical amendment The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ) is amended by inserting after the item relating to section 725 the following: Sec. 726. Requirements with respect to cost-sharing for certain insulin products. . 27002. Oversight of pharmacy benefit manager services (a) In general Subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1021 et seq. ) is amended— (1) in subpart B of part 7 ( 29 U.S.C. 1185 et seq. ), by adding at the end the following: 727. Oversight of pharmacy benefit manager services (a) In general For plan years beginning on or after January 1, 2023, a group health plan (or health insurance issuer offering group health insurance coverage in connection with such a plan) or an entity or subsidiary providing pharmacy benefits management services on behalf of such a plan or issuer shall not enter into a contract with a drug manufacturer, distributor, wholesaler, subcontractor, rebate aggregator, or any associated third party that limits the disclosure of information to plan sponsors in such a manner that prevents the plan or issuer, or an entity or subsidiary providing pharmacy benefits management services on behalf of a plan or issuer, from making the reports described in subsection (b). (b) Reports (1) In general For plan years beginning on or after January 1, 2023, not less frequently than once every 6 months, a health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan or an issuer providing group health insurance coverage shall submit to the plan sponsor (as defined in section 3(16)(B)) of such group health plan or group health insurance coverage a report in accordance with this subsection and make such report available to the plan sponsor in a machine-readable format. Each such report shall include, with respect to the applicable group health plan or health insurance coverage— (A) as applicable, information collected from drug manufacturers by such issuer or entity on the total amount of copayment assistance dollars paid, or copayment cards applied, that were funded by the drug manufacturer with respect to the participants and beneficiaries in such plan or coverage; (B) a list of each drug covered by such plan, issuer, or entity providing pharmacy benefit management services that was dispensed during the reporting period, including, with respect to each such drug during the reporting period— (i) the brand name, chemical entity, and National Drug Code; (ii) the number of participants and beneficiaries for whom the drug was filled during the plan year, the total number of prescription fills for the drug (including original prescriptions and refills), and the total number of dosage units of the drug dispensed across the plan year, including whether the dispensing channel was by retail, mail order, or specialty pharmacy; (iii) the wholesale acquisition cost, listed as cost per days supply and cost per pill, or in the case of a drug in another form, per dose; (iv) the total out-of-pocket spending by participants and beneficiaries on such drug, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for any drug for which gross spending of the group health plan or health insurance coverage exceeded $10,000 during the reporting period— (I) a list of all other drugs in the same therapeutic category or class, including brand name drugs and biological products and generic drugs or biosimilar biological products that are in the same therapeutic category or class as such drug; and (II) the rationale for preferred formulary placement of such drug in that therapeutic category or class; (C) a list of each therapeutic category or class of drugs that were dispensed under the health plan or health insurance coverage during the reporting period, and, with respect to each such therapeutic category or class of drugs, during the reporting period— (i) total gross spending by the plan, before manufacturer rebates, fees, or other manufacturer remuneration; (ii) the number of participants and beneficiaries who filled a prescription for a drug in that category or class; (iii) if applicable to that category or class, a description of the formulary tiers and utilization mechanisms (such as prior authorization or step therapy) employed for drugs in that category or class; (iv) the total out-of-pocket spending by participants and beneficiaries, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for each therapeutic category or class under which 3 or more drugs are included on the formulary of such plan or coverage— (I) the amount received, or expected to be received, from drug manufacturers in rebates, fees, alternative discounts, or other remuneration— (aa) to be paid by drug manufacturers for claims incurred during the reporting period; or (bb) that is related to utilization of drugs, in such therapeutic category or class; (II) the total net spending, after deducting rebates, price concessions, alternative discounts or other remuneration from drug manufacturers, by the health plan or health insurance coverage on that category or class of drugs; and (III) the net price per course of treatment or single fill, such as a 30-day supply or 90-day supply, incurred by the health plan or health insurance coverage and its participants and beneficiaries, after manufacturer rebates, fees, and other remuneration for drugs dispensed within such therapeutic category or class during the reporting period; (D) total gross spending on prescription drugs by the plan or coverage during the reporting period, before rebates and other manufacturer fees or remuneration; (E) total amount received, or expected to be received, by the health plan or health insurance coverage in drug manufacturer rebates, fees, alternative discounts, and all other remuneration received from the manufacturer or any third party, other than the plan sponsor, related to utilization of drug or drug spending under that health plan or health insurance coverage during the reporting period; (F) the total net spending on prescription drugs by the health plan or health insurance coverage during the reporting period; and (G) amounts paid directly or indirectly in rebates, fees, or any other type of remuneration to brokers, consultants, advisors, or any other individual or firm who referred the group health plan's or health insurance issuer's business to the pharmacy benefit manager. (2) Privacy requirements Health insurance issuers offering group health insurance coverage and entities providing pharmacy benefits management services on behalf of a group health plan shall provide information under paragraph (1) in a manner consistent with the privacy, security, and breach notification regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996, and shall restrict the use and disclosure of such information according to such privacy regulations. (3) Disclosure and redisclosure (A) Limitation to business associates A group health plan receiving a report under paragraph (1) may disclose such information only to business associates of such plan as defined in section 160.103 of title 45, Code of Federal Regulations (or successor regulations). (B) Clarification regarding public disclosure of information Nothing in this section prevents a health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan from placing reasonable restrictions on the public disclosure of the information contained in a report described in paragraph (1), except that such issuer or entity may not restrict disclosure of such report to the Department of Health and Human Services, the Department of Labor, or the Department of the Treasury. (C) Limited form of report The Secretary shall define through rulemaking a limited form of the report under paragraph (1) required of plan sponsors who are drug manufacturers, drug wholesalers, or other direct participants in the drug supply chain, in order to prevent anti-competitive behavior. (4) Report to GAO A health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan shall submit to the Comptroller General of the United States each of the first 4 reports submitted to a plan sponsor under paragraph (1) with respect to such coverage or plan, and other such reports as requested, in accordance with the privacy requirements under paragraph (2) and the disclosure and redisclosure standards under paragraph (3), and such other information that the Comptroller General determines necessary to carry out the study under section 30606(b) of the Act entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 . (c) Enforcement (1) In general The Secretary, in consultation with the Secretary of Health and Human Services and the Secretary of the Treasury, shall enforce this section. (2) Failure to provide timely information A health insurance issuer or an entity providing pharmacy benefit management services that violates subsection (a) or fails to provide information required under subsection (b), or a drug manufacturer that fails to provide information under subsection (b)(1)(A) in a timely manner, shall be subject to a civil monetary penalty in the amount of $10,000 for each day during which such violation continues or such information is not disclosed or reported. (3) False information A health insurance issuer, entity providing pharmacy benefit management services, or drug manufacturer that knowingly provides false information under this section shall be subject to a civil money penalty in an amount not to exceed $100,000 for each item of false information. Such civil money penalty shall be in addition to other penalties as may be prescribed by law. (4) Procedure The provisions of section 1128A of the Social Security Act, other than subsection (a) and (b) and the first sentence of subsection (c)(1) of such section shall apply to civil monetary penalties under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A of the Social Security Act. (5) Waivers The Secretary may waive penalties under paragraph (2), or extend the period of time for compliance with a requirement of this section, for an entity in violation of this section that has made a good-faith effort to comply with this section. (d) Rule of construction Nothing in this section shall be construed to permit a health insurance issuer, group health plan, or other entity to restrict disclosure to, or otherwise limit the access of, the Department of Labor to a report described in subsection (b)(1) or information related to compliance with subsection (a) by such issuer, plan, or entity. (e) Definition In this section, the term wholesale acquisition cost has the meaning given such term in section 1847A(c)(6)(B) of the Social Security Act. ; and (2) in section 502(b)(3) ( 29 U.S.C. 1132(b)(3) ), by inserting (other than section 727) after part 7 . (b) Clerical amendment The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ) is amended by inserting after the item relating to section 726 the following new item: Sec. 727. Oversight of pharmacy benefit manager services. . III Committee on Energy and Commerce A Air Pollution 30101. Clean heavy-duty vehicles The Clean Air Act is amended by inserting after section 131 of such Act ( 42 U.S.C. 7431 ) the following: 132. Clean heavy-duty vehicles (a) Appropriations (1) In general In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until September 30, 2031, to carry out this section. (2) Nonattainment areas In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until September 30, 2031, to make awards under this section to eligible recipients and to eligible contractors that propose to replace eligible vehicles to serve 1 or more communities located in an air quality area designated pursuant to section 107 as nonattainment for any air pollutant. (3) Reservation Of the funds appropriated by paragraph (1), the Administrator shall reserve 3 percent for administrative costs necessary to carry out this section. (b) Program Beginning not later than 180 days after the date of enactment of this section, the Administrator shall implement a program to make awards of grants and rebates to eligible recipients, and to make awards of contracts to eligible contractors for providing rebates, for up to 100 percent of costs for— (1) replacing eligible vehicles with zero-emission vehicles; (2) purchasing, installing, operating, and maintaining infrastructure needed to charge, fuel, or maintain zero-emission vehicles; (3) workforce development and training to support the maintenance, charging, fueling, and operation of zero-emission vehicles; and (4) planning and technical activities to support the adoption and deployment of zero-emission vehicles. (c) Applications To seek an award under this section, an eligible recipient or eligible contractor shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator shall prescribe. (d) Definitions For purposes of this section: (1) Eligible contractor The term eligible contractor means a contractor that has the capacity— (A) to sell zero-emission vehicles, or charging or other equipment needed to charge, fuel, or maintain zero-emission vehicles, to individuals or entities that own an eligible vehicle; or (B) to arrange financing for such a sale. (2) Eligible recipient The term eligible recipient means— (A) a State; (B) a municipality; (C) an Indian tribe; or (D) a nonprofit school transportation association. (3) Eligible vehicle The term eligible vehicle means a Class 6 or Class 7 heavy-duty vehicle as defined in section 1037.801 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this section). (4) Zero-emission vehicle The term zero-emission vehicle means a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of— (A) any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and (B) any greenhouse gas. . 30102. Grants to reduce air pollution at ports The Clean Air Act is amended by inserting after section 132 of such Act, as added by section 30101 of this Act, the following: 133. Grants to reduce air pollution at ports (a) Appropriations (1) General assistance In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,625,000,000, to remain available until September 30, 2027, to award rebates and grants to eligible recipients on a competitive basis— (A) to purchase or install zero-emission port equipment or technology for use at, or to directly serve, one or more ports; (B) to conduct any relevant planning or permitting in connection with the purchase or installation of such zero-emission port equipment or technology; and (C) to develop qualified climate action plans. (2) Nonattainment areas In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $875,000,000, to remain available until September 30, 2027, to award rebates and grants to eligible recipients to carry out activities described in paragraph (1) with respect to ports located in air quality areas designated pursuant to section 107 as nonattainment for an air pollutant. (b) Limitation Funds awarded under this section shall not be used by any recipient or subrecipient to purchase or install zero-emission port equipment or technology that will not be located at, or directly serve, the one or more ports involved. (c) Administration of funds Of the funds made available by this section, the Administrator shall reserve 2 percent for administrative costs necessary to carry out this section. (d) Definitions In this section: (1) Eligible recipient The term eligible recipient means— (A) a port authority; (B) a State, regional, local, or Tribal agency that has jurisdiction over a port authority or a port; (C) an air pollution control agency; or (D) a private entity (including a nonprofit organization) that— (i) applies for a grant under this section in partnership with an entity described in any of subparagraphs (A) through (C); and (ii) owns, operates, or uses the facilities, cargo-handling equipment, transportation equipment, or related technology of a port. (2) Qualified climate action plan The term qualified climate action plan means a detailed and strategic plan that— (A) establishes goals, implementation strategies, and accounting and inventory practices (including practices used to measure progress toward stated goals) to reduce emissions at one or more ports of— (i) greenhouse gases; (ii) an air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and (iii) hazardous air pollutants; (B) includes a strategy to collaborate with, communicate with, and address potential effects on stakeholders that may be affected by implementation of the plan, including low-income and disadvantaged near-port communities; and (C) describes how an eligible recipient has implemented or will implement measures to increase the resilience of the one or more ports involved, including measures related to withstanding and recovering from extreme weather events. (3) Zero-emission port equipment or technology The term zero-emission port equipment or technology means human-operated equipment or human-maintained technology that— (A) produces zero emissions of any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant) and any greenhouse gas other than water vapor; or (B) captures 100 percent of the emissions described in subparagraph (A) that are produced by an ocean-going vessel at berth. . 30103. Greenhouse gas reduction fund The Clean Air Act is amended by inserting after section 133 of such Act, as added by section 30102 of this Act, the following: 134. Greenhouse gas reduction fund (a) Appropriations (1) Zero-emission technologies In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,000,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to States, municipalities, Tribal governments, and eligible recipients for the purposes of providing grants, loans, or other forms of financial assistance, as well as technical assistance, to enable low-income and disadvantaged communities to deploy or benefit from zero-emission technologies, including distributed technologies on residential rooftops, and to carry out other greenhouse gas emission reduction activities, as determined appropriate by the Administrator in accordance with this section. (2) Zero-emission vehicle supply equipment In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to States, municipalities, Tribal governments, and eligible recipients to support the purchase, installation, or operation of publicly available equipment to charge or fuel light-duty zero-emission vehicles, including in low-income and disadvantaged communities, through grants, rebates, or other forms of financial assistance, and to carry out related greenhouse gas emission reduction activities, as determined appropriate by the Administrator in accordance with this section. (3) General assistance In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $11,970,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to eligible recipients for the purposes of providing financial assistance and technical assistance in accordance with subsection (b). (4) Low-income and disadvantaged communities In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $8,000,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to eligible recipients for the purposes of providing financial assistance and technical assistance in low-income and disadvantaged communities in accordance with subsection (b). (5) Administrative costs In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until September 30, 2031, for the administrative costs necessary to carry out activities under this section. (b) Use of funds An eligible recipient that receives a grant pursuant to subsection (a) shall use the grant in accordance with the following: (1) Direct investment The eligible recipient shall— (A) use a broad range of finance and investment tools to provide financial assistance to qualified projects at the national, regional, State, and local levels, including, as applicable, through both concessionary and market rate financing; (B) prioritize investment in qualified projects that would otherwise lack access to financing; (C) retain, manage, recycle, and monetize all repayments and other revenue received from fees, interest, repaid loans, and all other types of financial assistance provided using grant funds under this section to ensure continued operability; and (D) meet any requirements set forth by the Administrator to ensure accountability and proper management of funds appropriated by this section. (2) Indirect investment The eligible recipient shall provide funding and technical assistance to establish new or support existing public, quasi-public, or nonprofit entities that provide financial assistance to qualified projects at the State, local, territorial, or Tribal level or in the District of Columbia, including community- and low-income-focused lenders and capital providers. (c) Definitions In this section: (1) Eligible recipient The term eligible recipient means a nonprofit organization that— (A) is designed to provide capital, including by leveraging private capital, and other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services; (B) does not take deposits other than deposits from repayments and other revenue received from financial assistance provided using grant funds under this section; (C) is funded by public or charitable contributions; and (D) invests in or finances projects alone or in conjunction with other investors. (2) Qualified project The term qualified project includes any project, activity, or technology that— (A) reduces or avoids greenhouse gas emissions and other forms of air pollution in partnership with, and by leveraging investment from, the private sector; or (B) assists communities in the efforts of those communities to reduce or avoid greenhouse gas emissions and other forms of air pollution. (3) Publicly available equipment The term publicly available equipment means equipment that— (A) is located at a multi-unit housing structure; (B) is located at a workplace and is available to employees of such workplace or employees of a nearby workplace; or (C) is at a location that is publicly accessible for a minimum of 12 hours per day at least 5 days per week and networked or otherwise capable of being monitored remotely. (4) Zero-emission technology The term zero-emission technology means any technology that produces zero emissions of— (A) any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and (B) any greenhouse gas. (5) Zero-emission vehicle The term zero-emission vehicle means a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of— (A) any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and (B) any greenhouse gas. . 30104. Collaborative community wildfire air grants (a) In general In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000 , to remain available until September 30, 2031, for grants authorized under subsections (a) through (c) of section 103 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c)) to assist eligible entities in developing and implementing collaborative community plans to prepare for smoke from wildfires, reduce risks of smoke exposure due to wildfires, and mitigate the health and environmental effects of smoke from wildfires. (b) Technical assistance The Administrator of the Environmental Protection Agency may use amounts made available under subsection (a) to provide technical assistance to any eligible entity in— (1) submitting an application for a grant to be made pursuant to this section; or (2) carrying out a project using a grant made pursuant to this section. (c) Administrative costs Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve 5 percent for administrative costs to carry out this section. (d) Eligible entities In this section, the term eligible entity means a State, an air pollution control agency, a municipality, or an Indian tribe (as such terms are defined in section 302 of the Clean Air Act ( 42 U.S.C. 7602 )). 30105. Diesel emissions reductions (a) Goods movement In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $60,000,000, to remain available until September 30, 2031, for grants, rebates, and loans under section 792 of the Energy Policy Act of 2005 ( 42 U.S.C. 16132 ) to identify and reduce diesel emissions resulting from goods movement facilities, and vehicles servicing goods movement facilities, in low-income and disadvantaged communities to address the health impacts of such emissions on such communities. (b) Administrative costs The Administrator of the Environmental Protection Agency shall reserve 2 percent of the amounts made available under this section for the administrative costs necessary to carry out activities pursuant to this section. 30106. Funding to address air pollution (a) Appropriations (1) Fenceline air monitoring and screening air monitoring In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $117,500,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405) to deploy, integrate, support, and maintain fenceline air monitoring, screening air monitoring, national air toxics trend stations, and other air toxics and community monitoring. (2) Multipollutant monitoring stations In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405)— (A) to expand the national ambient air quality monitoring network with new multipollutant monitoring stations; and (B) to replace, repair, operate, and maintain existing monitors. (3) Air quality sensors in low-income and disadvantaged communities In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405) to deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities. (4) Emissions from wood heaters In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405) for testing and other agency activities to address emissions from wood heaters. (5) Methane monitoring In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405) for monitoring emissions of methane. (6) Clean Air Act grants In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c), 7405). (7) Other activities In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $45,000,000, to remain available until September 30, 2031, to carry out, with respect to greenhouse gases, sections 111, 115, 165, 177, 202, 211, 213, 231, and 612 of the Clean Air Act ( 42 U.S.C. 7411 , 7415, 7475, 7507, 7521, 7545, 7547, 7571, and 7671k). (8) Greenhouse gas and zero-emission standards for mobile sources In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to provide grants to States to adopt and implement greenhouse gas and zero-emission standards for mobile sources pursuant to section 177 of the Clean Air Act ( 42 U.S.C. 7507 ). (b) Administration of funds Of the funds made available pursuant to paragraphs (1), (2), (5) and (6) of subsection (a), the Administrator of the Environmental Protection Agency shall reserve 5 percent for activities funded pursuant to such subsection other than grants. 30107. Funding to address air pollution at schools (a) In general In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $37,500,000, to remain available until September 30, 2031, for grants and other activities to monitor and reduce air pollution and greenhouse gas emissions at schools in low-income and disadvantaged communities under subsections (a) through (c) of section 103 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c)) and section 105 of that Act ( 42 U.S.C. 7405 ). (b) Technical assistance In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $12,500,000, to remain available until September 30, 2031, for providing technical assistance to schools in low-income and disadvantaged communities under subsections (a) through (c) of section 103 of the Clean Air Act ( 42 U.S.C. 7403(a) –(c)) and section 105 of that Act ( 42 U.S.C. 7405 )— (1) to address environmental issues; (2) to develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) to identify and mitigate ongoing air pollution hazards. 30108. Low Emissions Electricity Program The Clean Air Act is amended by inserting after section 134 of such Act, as added by section 30103 of this Act, the following: 135. Low Emissions Electricity Program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $17,000,000 for consumer-related education and partnerships with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use; (2) $17,000,000 for education, technical assistance, and partnerships within low-income and disadvantaged communities with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use; (3) $17,000,000 for industry-related outreach and technical assistance, including through partnerships, with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use; (4) $17,000,000 for outreach and technical assistance to State and local governments, including through partnerships, with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use; (5) $1,000,000 to assess, not later than 1 year after the date of enactment of this section, the reductions in greenhouse gas emissions that result from changes in domestic electricity generation and use that are anticipated to occur on an annual basis through fiscal year 2031; and (6) $18,000,000 to carry out this section to ensure that reductions in greenhouse gas emissions from domestic electricity generation and use are achieved through use of the authorities of this Act, including through the establishment of requirements under this Act, incorporating the assessment under paragraph (5) as a baseline. (b) Administration of Funds Of the amounts made available under subsection (a), the Administrator shall reserve 2 percent for the administrative costs necessary to carry out activities pursuant to that subsection. . 30109. Funding for section 211(o) of the Clean Air Act (a) Test and protocol development In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to carry out section 211(o) of the Clean Air Act ( 42 U.S.C. 7545(o) ) with respect to— (1) the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive; (2) internal and extramural data collection and analyses to regularly update applicable regulations, guidance, and procedures for determining lifecycle greenhouse gas emissions of a fuel; and (3) the review, analysis and evaluation of the impacts of all transportation fuels, including fuel lifecycle implications, on the general public and on low-income and disadvantaged communities. (b) Investments in advanced biofuels In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2031, for new grants to industry and other related activities under section 211(o) of the Clean Air Act ( 42 U.S.C. 7545(o) ) to support investments in advanced biofuels. 30110. Funding for implementation of the American Innovation and Manufacturing Act (a) Appropriations (1) In general In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, to carry out subsections (a) through (i) and subsection (k) of section 103 of division S of Public Law 116–260 ( 42 U.S.C. 7675 ). (2) Implementation and compliance tools In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,500,000, to remain available until September 30, 2026, to deploy new implementation and compliance tools to carry out subsections (a) through (i) and subsection (k) of section 103 of division S of Public Law 116–260 ( 42 U.S.C. 7675 ). (3) Competitive grants In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2026, for competitive grants for reclaim and innovative destruction technologies under subsections (a) through (i) and subsection (k) of section 103 of division S of Public Law 116–260 ( 42 U.S.C. 7675 ). (b) Administration of funds Of the funds made available pursuant to subsection (a)(3), the Administrator of the Environmental Protection Agency shall reserve 5 percent for administrative costs necessary to carry out activities pursuant to such subsection. 30111. Funding for enforcement technology and public information (a) Compliance monitoring In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $37,000,000, to remain available until September 30, 2031, to update the Integrated Compliance Information System of the Environmental Protection Agency and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. (b) Communications with ICIS In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,000,000, to remain available until September 30, 2031, for grants to States, Indian tribes, and air pollution control agencies (as such terms are defined in section 302 of the Clean Air Act ( 42 U.S.C. 7602 )) to update their systems to ensure communication with the Integrated Compliance Information System of the Environmental Protection Agency and any associated systems. (c) Inspection software In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $6,000,000, to remain available until September 30, 2031— (1) to acquire or update inspection software for use by the Environmental Protection Agency, States, Indian tribes, and air pollution control agencies (as such terms are defined in section 302 of the Clean Air Act ( 42 U.S.C. 7602 )); or (2) to acquire necessary devices on which to run such inspection software. 30112. Greenhouse gas corporate reporting In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, for the Environmental Protection Agency to support— (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans. 30113. Environmental product declaration assistance (a) In general In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to develop and carry out a program to support the development, and enhanced standardization and transparency, of environmental product declarations for construction materials and products, including by— (1) providing grants to businesses that manufacture construction materials and products for developing and verifying environmental product declarations, and to States, Indian Tribes, and nonprofit organizations that will support such businesses; (2) providing technical assistance to businesses that manufacture construction materials and products in developing and verifying environmental product declarations, and to States, Indian Tribes, and nonprofit organizations that will support such businesses; and (3) carrying out other activities that assist in measuring, reporting, and steadily reducing the quantity of embodied carbon of construction materials and products. (b) Administrative costs Of the amounts made available under this section, the Administrator of the Environmental Protection Agency shall reserve 5 percent for administrative costs necessary to carry out this section. (c) Definitions In this section: (1) Embodied carbon The term embodied carbon means the quantity of greenhouse gas emissions associated with all relevant stages of production of a material or product, measured in kilograms of carbon dioxide-equivalent per unit of such material or product. (2) Environmental product declaration The term environmental product declaration means a document that reports the environmental impact of a material or product that— (A) includes measurement of the embodied carbon of the material or product; (B) conforms with international standards, such as a Type III environmental product declaration, as defined by the International Organization for Standardization standard 14025; and (C) is developed in accordance with any standardized reporting criteria specified by the Administrator of the Environmental Protection Agency. (3) State The term State has the meaning given to that term in section 302(d) of the Clean Air Act ( 42 U.S.C. 7602(d) ). 30114. Methane emissions reduction program The Clean Air Act is amended by inserting after section 135 of such Act, as added by section 30108 of this Act, the following: 136. Methane emissions and waste reduction incentive program for petroleum and natural gas systems (a) Incentives for methane mitigation and monitoring In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $775,000,000, to remain available until September 30, 2028— (1) for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to owners and operators of applicable facilities to prepare and submit greenhouse gas reports under subpart W of part 98 of title 40, Code of Federal Regulations (or any successor regulations); (2) for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency authorized under subsections (a) through (c) of section 103 for methane emissions monitoring; (3) for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems, mitigate legacy air pollution from petroleum and natural gas systems, and provide support for communities, including funding for— (A) improving climate resiliency of communities and petroleum and natural gas systems; (B) improving and deploying industrial equipment and processes that reduce methane and other greenhouse gas emissions and waste; (C) supporting innovation in reducing methane and other greenhouse gas emissions and waste from petroleum and natural gas systems; (D) mitigating health effects of methane and other greenhouse gas emissions, and legacy air pollution from petroleum and natural gas systems in low-income and disadvantaged communities; and (E) supporting environmental restoration; and (4) to cover all direct and indirect costs required to administer this section, including the costs of implementing the waste emissions charge under subsection (b), preparing inventories, gathering empirical data, and tracking emissions. (b) Waste emissions charge The Administrator shall impose and collect a charge on methane emissions that exceed an applicable waste emissions threshold under subsection (e) from an owner or operator of an applicable facility that is required to report methane emissions pursuant to subpart W of part 98 of title 40, Code of Federal Regulations (or any successor regulations). (c) Applicable facility For purposes of this section, the term applicable facility means a facility within the following industry segments, as defined in subpart W of part 98 of title 40, Code of Federal Regulations (or any successor regulations): (1) Offshore petroleum and natural gas production. (2) Onshore petroleum and natural gas production. (3) Onshore natural gas processing, (4) Onshore natural gas transmission compression. (5) Underground natural gas storage. (6) Liquefied natural gas storage. (7) Liquefied natural gas import and export equipment. (8) Onshore petroleum and natural gas gathering and boosting. (9) Onshore natural gas transmission pipeline. (d) Charge Amount The amount of a charge under subsection (b) for an applicable facility shall be equal to the product obtained by multiplying— (1) the number of tons of methane emissions reported pursuant to subpart W of part 98 of title 40, Code of Federal Regulations (or any successor regulations) for the applicable facility that exceed the applicable annual waste emissions threshold listed in subsection (e) during the previous reporting period; and (2) (A) $900 for emissions reported for calendar year 2023; (B) $1200 for emissions reported for calendar year 2024; or (C) $1500 for emissions reported for calendar year 2025 and each year thereafter. (e) Waste emissions threshold (1) Petroleum and natural gas production With respect to imposing and collecting the charge under subsection (b) for an applicable facility in an industry segment listed in paragraph (1) or (2) of subsection (c), the Administrator shall impose and collect the charge on the reported tons of methane emissions that exceed— (A) 0.20 percent of the natural gas sent to sale from such facility; or (B) 10 metric tons of methane per million barrels of oil sent to sale from such facility, if such facility sent no natural gas to sale. (2) Nonproduction petroleum and natural gas systems With respect to imposing and collecting the charge under subsection (b) for an applicable facility in an industry segment listed in paragraph (3), (6), (7), or (8) of subsection (c), the Administrator shall impose and collect the charge on the reported tons of methane emissions that exceed 0.05 percent of the natural gas sent to sale from such facility. (3) Natural gas transmission With respect to imposing and collecting the charge under subsection (b) for an applicable facility in an industry segment listed in paragraph (4), (5), or (9) of subsection (c), the Administrator shall impose and collect the charge on the reported tons of methane emissions that exceed 0.11 percent of the natural gas sent to sale from such facility. (4) Exemption Charges shall not be imposed pursuant to paragraph (1) on emissions that exceed the waste emissions threshold specified in such paragraph if such emissions are caused by unreasonable delay in environmental permitting of gathering infrastructure. (f) Period The charge under subsection (b) shall be imposed and collected beginning with respect to emissions reported for calendar year 2023 and for each year thereafter. (g) Implementation In addition to other authorities in this Act addressing air pollution from the oil and natural gas sectors, the Administrator may issue guidance or regulations as necessary to carry out this section. (h) Reporting Not later than 2 years after the date of enactment of this section, and as necessary thereafter, the Administrator shall revise the requirements of subpart W of part 98 of title 40, Code of Federal Regulations— (1) to reduce the facility emissions threshold for reporting under such subpart and for paying the charge imposed under this section to 10,000 metric tons of carbon dioxide equivalent of greenhouse gases emitted per year; and (2) to ensure the reporting under such subpart, and calculation of charges under subsections (d) and (e) of this section, are based on empirical data and accurately reflect the total methane emissions and waste emissions from the applicable facilities. (i) Liability for charge payment A facility owner or operator’s liability for payment of the charge under subsection (b) is not affected in any way by emission standards, permit fees, penalties, or other requirements under this Act or any other legal authorities. . 30115. Funding for the Office of the Inspector General of the Environmental Protection Agency In addition to amounts otherwise made available, there is appropriated to the Office of the Inspector General of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for oversight of activities supported with funds appropriated to the Environmental Protection Agency in this Act. 30116. Climate Pollution Reduction Grants The Clean Air Act is amended by inserting after section 136 of such Act, as added by section 30114 of this Act, the following: 137. Greenhouse Gas Air Pollution Plans and Implementation Grants (a) Appropriations (1) Greenhouse gas air pollution planning grants In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to carry out subsection (b). (2) Greenhouse gas air pollution implementation grants In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $4,750,000,000, to remain available until September 30, 2026, to carry out subsection (c). (3) Administrative costs Of the funds made available under paragraph (2), the Administrator shall reserve 3 percent for administrative costs necessary to carry out this section, including providing technical assistance to eligible entities, developing a plan that could be used as a model by grantees in developing a plan under subsection (b), and modeling the effects of plans described in this section. (b) Greenhouse gas air pollution planning grants The Administrator shall make a grant to at least one eligible entity in each State for the costs of developing a plan for the reduction of greenhouse gas air pollution to be submitted with an application for a grant under subsection (c). Each such plan shall include programs, policies, measures, and projects that will achieve or facilitate the reduction of greenhouse gas air pollution. Not later than 270 days after the date of enactment of this section, the Administrator shall publish a funding opportunity announcement for grants under this subsection. (c) Greenhouse gas air pollution reduction implementation grants (1) In general The Administrator shall competitively award grants to eligible entities to implement plans developed under subsection (b). (2) Application To apply for a grant under this subsection, an eligible entity shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator shall require, which such application shall include information regarding— (A) the degree to which greenhouse gas air pollution is projected to be reduced, including with respect to low-income and disadvantaged communities; and (B) the quantifiability, specificity, additionality, permanence, and verifiability of such projected greenhouse gas air pollution reduction. (3) Terms and conditions The Administrator shall make funds available to a grantee under this subsection in such amounts, upon such a schedule, and subject to such conditions based on its performance in implementing its plan submitted under this section and in achieving projected greenhouse gas air pollution reduction, as determined by the Administrator. (d) Eligible entity defined In this section, the ter m eligible entity means— (1) a State; (2) an air pollution control agency; (3) a municipality; (4) an Indian tribe; and (5) a group of one or more entities listed in paragraphs (1) through (4). . 30117. Environmental Protection Agency efficient, accurate, and timely reviews In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, to provide for the development of efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of environmental data or information systems, stakeholder and community engagement, the purchase of new equipment for environmental analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. 30118. Low-embodied carbon labeling for construction materials for transportation projects (a) In general In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, to develop and carry out a program, in consultation with the Administrator of the Federal Highway Administration, to identify and label, based on environmental product declarations, low-embodied carbon construction materials and products used for transportation projects, and for necessary administrative costs of the Administrator of the Environmental Protection Agency to carry out this section. (b) Definitions In this section: (1) Embodied carbon The term embodied carbon means the quantity of greenhouse gas emissions associated with all relevant stages of production of a material or product, measured in kilograms of carbon dioxide-equivalent per unit of such material or product. (2) Environmental product declaration The term environmental product declaration means a document that reports the environmental impact of a material or product that— (A) includes measurement of the embodied carbon of the material or product; (B) conforms with international standards, such as a Type III environmental product declaration as defined by the International Organization for Standardization standard 14025; and (C) is developed in accordance with any standardized reporting criteria specified by the Administrator of the Environmental Protection Agency. (3) Low-embodied carbon construction materials and products The term low-embodied carbon construction materials and products means construction materials and products identified by the Administrator of the Environmental Protection Agency as having substantially lower levels of embodied carbon as compared to estimated industry averages of similar materials or products. B Hazardous Materials 30201. Grants to reduce waste in communities The Solid Waste Disposal Act is amended by inserting after section 7010 ( 42 U.S.C. 6979b ) the following: 7011. Grants to reduce waste in communities (a) Appropriations (1) Organics recycling and food waste In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $95,000,000, to remain available until September 30, 2031, to make grants, on a competitive basis, to eligible recipients for projects in, or directly serving, low-income or disadvantaged communities to— (A) construct, expand, or modernize infrastructure for recycling and reuse of organic material, including any facility, machinery, or equipment used to collect and process organic material; or (B) measure, reduce, and prevent food waste. (2) Other waste reduction activities In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $95,000,000, to remain available until September 30, 2031, to make grants, on a competitive basis, to eligible recipients for projects in, or directly serving, low-income or disadvantaged communities to— (A) reduce the amount of waste generated from manufacturing processes or when consumer products are disposed of, including by encouraging product or manufacturing redesign or redevelopment that reduces packaging and waste byproducts; (B) create market demand or manufacturing capacity for recovered, recyclable, or recycled commodities and products, including compost; or (C) support the development and implementation of activities that reduce the amount of waste disposed of in landfills or prevent the disposal of waste in landfills, including— (i) expanding the availability of source-separated organic waste collection; (ii) encouraging diversion of organic waste from landfills; or (iii) increasing fees imposed on the disposal of waste, including organic waste, at landfills. (b) Administration of funds Of the amounts made available under subsection (a), the Administrator shall reserve 5 percent for the administrative costs necessary to carry out activities pursuant to that subsection. (c) Definition of eligible recipient In this section, the term eligible recipient means— (1) a single unit of State, local, or Tribal government; or (2) a nonprofit organization. . 30202. Environmental and climate justice block grants The Clean Air Act is amended by inserting after section 137, as added by subtitle A of this title, the following: 138. Environmental and climate justice block grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $2,800,000,000 to remain available until September 30, 2026, to award grants for the activities described in subsection (b); and (2) $200,000,000 to remain available until September 30, 2026, to provide technical assistance to eligible entities related to grants awarded under this section. (b) Grants (1) In general The Administrator shall use amounts made available under subsection (a)(1) to award grants for periods of up to 3 years to eligible entities to carry out activities described in paragraph (2) that benefit disadvantaged communities, as defined by the Administrator. (2) Eligible activities An eligible entity may use a grant awarded under this subsection for— (A) community-led air and other pollution monitoring, prevention , and remediation, and investments in low- and zero-emission and resilient technologies and related infrastructure and workforce development that help reduce greenhouse gas emissions and other air pollutants; (B) mitigating climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfire events; (C) climate resiliency and adaptation; (D) reducing indoor toxics and indoor air pollution; or (E) facilitating engagement of disadvantaged communities in State and Federal public processes, including facilitating such engagement in advisory groups, workshops, and rulemakings. (3) Eligible entities In this subsection, the term eligible entity means— (A) a partnership between— (i) an Indian tribe, a local government, or an institution of higher education; and (ii) a community-based nonprofit organization; (B) a community-based nonprofit organization; or (C) a partnership of community-based nonprofit organizations. (c) Administrative costs The Administrator shall reserve 7 percent of the amounts made available under subsection (a) for administrative costs to carry out this section. . 30203. Funding for data collection on national recycling efforts In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2031, to support data collection activities with respect to recycling efforts throughout the nation, with a particular focus on recycling efforts in disadvantaged, low-income, and rural communities that lack access to recycling services. C Drinking Water 30301. Lead remediation projects (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,000,000,000, to remain available until September 30, 2026, for— (1) grants under the lead reduction grant program under section 1459B(b) of the Safe Drinking Water Act (42 U.S.C. 300j–19b(b)) to entities eligible for grants under that program that serve communities determined to be disadvantaged communities pursuant to paragraph (3)(A) of such subsection, for full service line replacement within those disadvantaged communities; (2) grants for the installation and maintenance of lead filtration stations at schools and child care programs (as defined in section 1464(d)(1) of that Act ( 42 U.S.C. 300j–24(d)(1) ) that serve disadvantaged communities; and (3) grants under subsection (d) of section 1464 of that Act ( 42 U.S.C. 300j–24 )— (A) to pay the costs of replacement of drinking water fountains in schools and child care programs that serve disadvantaged communities; (B) for lead remediation projects in buildings operated by entities eligible for grants under that subsection that serve disadvantaged communities; and (C) for compliance monitoring in disadvantaged communities. (b) Cost-share waiver An entity receiving assistance pursuant to this section shall not be required to provide a share of the costs of carrying out the project or activity funded by that assistance. (c) Administrative costs Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve 7 percent for the administrative costs of carrying out this section. 30302. Funding for water assistance program (a) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $225,000,000, to remain available until expended, to provide grants to States, Indian Tribes, and Tribal organizations to assist low-income households that pay a high proportion of household income for drinking water and wastewater (including stormwater) services, particularly households with an annual income that is less than or equal to 150 percent of the Federal poverty line, by providing amounts to community water systems (as defined in section 1401 of the Safe Drinking Water Act ( 42 U.S.C. 300f )) or publicly owned treatment works (as defined in section 212 of the Federal Water Pollution Control Act ( 33 U.S.C. 1292 )) to reduce the arrearages of and rates charged to those households for those services by up to 100 percent. (b) Requirement Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve not more than 3 percent to provide the assistance described in that subsection to Indian Tribes and Tribal organizations. (c) Cost-share waiver An entity receiving assistance pursuant to this section shall not be required to provide a share of the costs of carrying out the activity funded by that assistance. (d) Administrative costs Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve 7 percent for the administrative costs of carrying out this section. (e) Definition of State In this section, the term State means— (1) each of the 50 States; (2) the District of Columbia; (3) the Commonwealth of Puerto Rico; (4) American Samoa; (5) Guam; (6) the United States Virgin Islands; and (7) the Commonwealth of the Northern Mariana Islands. D Energy 1 Residential Efficiency and Electrification Rebates 30411. Home energy performance-based, whole-house rebates and training grants (a) Home on-line performance-based energy efficiency (HOPE) contractor training grants (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $360,000,000, to remain available until September 30, 2030, to award grants to States to develop and implement a State program described in section 362(d)(13) of the Energy Policy and Conservation Act ( 42 U.S.C. 6322(d)(13) ), which shall partner with nonprofit organizations to fund qualifying programs described in paragraph (2) that provide training courses and opportunities to support home energy efficiency upgrade construction services to train workers, both on-line and in-person, to support and provide for the home energy efficiency retrofits under subsection (b), and for administrative expenses associated with carrying out this subsection. (2) Qualifying programs For the purposes of this paragraph, qualifying programs are programs that— (A) provide the equivalent of at least 30 hours in total course time; (B) are provided by a provider that is accredited by the Interstate Renewable Energy Council or has other accreditation determined to be equivalent by the Secretary; (C) are, with respect to a particular job, aligned with the relevant National Renewable Energy Laboratory Job Task Analysis, or other credentialing program foundation that helps identify the necessary core knowledge areas, critical work functions, or skills, as approved by the Secretary; (D) have established learning objectives; (E) include, as the Secretary determines appropriate, an appropriate assessment of such learning objectives that may include a final exam, to be proctored on-site or through remote proctoring, or an in-person field exam; and (F) include training related to— (i) contractor certification; (ii) energy auditing or assessment; (iii) home energy systems (including Energy Star-qualified HVAC systems and Wi-Fi-enabled home energy communications technology, or any future technology that achieves the same goals); (iv) insulation installation and air leakage control; (v) health and safety regarding the installation of energy efficiency measures or health and safety impacts associated with energy efficiency retrofits; (vi) indoor air quality; (vii) energy efficiency retrofits in manufactured housing; and (viii) residential electrification training and conversion training. (3) State energy program providers A State energy office may use not more than 10 percent of the amounts made available to the State energy office under this subsection to administer a qualifying program described in paragraph (2), including for the conduct of design and operations activities. (4) Terms and conditions (A) Eligible use of funds Of the amounts made available to a State under this subsection, 85 percent shall be used by the State— (i) to support the operations of qualifying programs, including establishing, modifying, or maintaining the online systems, staff time, and software and online program management, through a course that meets the applicable criteria; (ii) to reimburse the contractor company for training costs for employees; (iii) to provide any home technology support needed for an employee to receive training pursuant to this subsection; and (iv) to support wages of employees during training. (B) Timing of obligations Amounts made available under this subsection shall be used, as necessary, to cover or reimburse allowable costs incurred after the date of enactment of this Act. (C) Unobligated amounts Amounts made available under this subsection which are not accepted, are voluntarily returned, or otherwise recaptured for any reason shall be used to fund grants under subsection (b). (b) Home owner managing energy savings (HOMES) rebates (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,890,000,000, to remain available until September 30, 2030, to award grants, in accordance with the formula for the State Energy Program under part D of title III of the Energy Policy and Conservation Act in effect on January 1, 2021, to State energy offices to establish Home Owner Managing Energy Savings (HOMES) Rebate Programs pursuant to section 362(d)(5) of such Act ( 42 U.S.C. 6322(d)(5) ), and for administrative expenses associated with carrying out this subsection. (2) Coordination In carrying out this subsection, the Secretary shall coordinate with State energy offices to ensure that programs that receive awards are formulated to achieve maximum greenhouse gas emissions reductions and household energy and costs savings. (3) Application In order to receive a grant under this subsection, a State shall submit to the Secretary an application that includes a plan to implement a qualifying State program that includes— (A) a plan to ensure that each home energy efficiency retrofit under the program— (i) is completed by a contractor who meets minimum training requirements, certification requirements, and other requirements established by the Secretary; and (ii) includes installation of 1 or more home energy efficiency retrofit measures that are modeled to achieve, or are shown to achieve, the minimum reduction required in home energy use, or with respect to a portfolio of home energy efficiency retrofits, in aggregated home energy use for such portfolio; (B) a plan— (i) to utilize, for purposes of modeled performance home rebates, modeling software, methods, and procedures for determining and documenting the reductions in home energy use resulting from the implementation of a home energy efficiency retrofit that is calibrated to historical energy usage for a home consistent with BPI 2400, that are approved by the Secretary, that can provide evidence for necessary improvements to a State program, and that can help to calibrate models for accuracy; (ii) to utilize, for purposes of measured performance home rebates, open-source advanced measurement and verification software approved by the Secretary for determining and documenting the monthly and hourly (if available) weather-normalized baseline energy use of a home, the reductions in monthly and hourly (if available) weather-normalized energy use of a home resulting from the implementation of a home energy efficiency retrofit, and open-source advanced measurement and verification software approved by the Secretary; and (iii) to value savings based on time, location, or greenhouse gas emissions; (C) procedures for a homeowner to transfer the right to claim a rebate to the contractor performing the applicable home energy efficiency retrofit or to an aggregator, if the State program will utilize aggregators; (D) if the State program will utilize aggregators to facilitate delivery of rebates to homeowners or contractors, requirements for an entity to be eligible to serve as an aggregator; (E) quality monitoring to ensure that each installation that receives a rebate is documented in a certificate, provided by the contractor to the homeowner, that details the work, including information about the characteristics of equipment and materials installed, as well as projected energy savings or energy generation, in a way that will enable the homeowner to clearly communicate the value of the high-performing features funded by the rebate to buyers, real estate agents, appraisers and lenders; and (F) a procedure for providing the contractor performing a home energy efficiency retrofit or an aggregator who has the right to claim such rebate with $200 for each home located in an underserved community that receives a home efficiency retrofit for which a rebate is provided under the program. (4) Amount of rebates for single family and multifamily homes Of the amounts provided to a State energy office under this subsection, 85 percent shall be used to provide Home Owner Managing Energy Savings (HOMES) Rebates to— (A) individuals and aggregators for the energy efficiency upgrades of single-family homes of not more than 4 units— (i) $2,000 for a retrofit that achieves at least 20 percent modeled energy system savings or 50 percent of the project cost, whichever is lower; (ii) $4,000 for a retrofit that achieves at least 35 percent modeled energy system savings or 50 percent of the project cost, whichever is lower; or (iii) for measured energy savings, a payment per kilowatt hour saved, or kilowatt hour-equivalent saved, equal to $2,000 for a 20 percent reduction of energy use for the average home in the State, for homes or portfolios of homes that achieve at least 15 percent energy savings, or 50 percent of the project cost, whichever is lower; (B) multifamily building owners and aggregators for the energy efficiency upgrades of multifamily buildings— (i) $2,000 per dwelling unit for a retrofit that achieves at least 20 percent modeled energy system savings up a maximum of $200,000 per multifamily building; (ii) $4,000 per dwelling unit for a retrofit that achieves at least 35 percent modeled energy system savings up to a maximum of $400,000 per multifamily building; or (iii) for measured energy savings, a payment rate per kilowatt hours saved, or kilowatt hour-equivalent saves, equal to $2,000 for a 20 percent reduction of energy use for the average multifamily building in the State, for multifamily buildings or portfolios of buildings that achieve at least 15 percent energy savings, or 50 percent of the project cost, whichever is lower; or (C) individuals and aggregators for the energy efficiency upgrades of single family homes of 4 units or less or multifamily buildings that are occupied by residents with an annual income of less than 80 percent of the area median income as published publicly by the Department of Housing and Urban Development— (i) $4,000 for a retrofit that achieves at least 20 percent modeled energy system savings or 80 percent of the project cost, whichever is lower; (ii) $8,000 for a retrofit that achieves at least 35 percent modeled energy system savings or 80 percent of the project cost, whichever is lower; or (iii) for measured energy savings, a payment rate per kilowatt hour saved, or kilowatt hour-equivalent saved, equal to $4,000 for a 20 percent reduction of energy use for the average multifamily building in the State, for multifamily buildings or portfolios of buildings that achieve at least 15 percent energy savings, or 80 percent of the project cost, whichever is lower. (5) Requirement Not less than 25 percent of the funds provided to a State energy office under this subsection shall be used for the purposes of each of subparagraphs (A), (B), and (C) of paragraph (4). (6) Eligibility of certain appliances In calculating total energy savings for single family or multifamily homes under this subsection, a program may include savings from the purchase of high-efficiency natural gas HVAC systems and water heaters certified under the Energy Star program until the date that is 6 years after the date of enactment of this Act. (7) Planning Not to exceed 20 percent of any grant made with funds made available under this subsection shall be expended for planning and management development and administration. (8) Technical assistance Amounts made available under this subsection shall be used for single family, multifamily, and manufactured housing rebates and the Secretary shall, in consultation with States, contractors, and other local technical experts design support, methodology, and contractor criteria as appropriate for the different building stock. (9) Use of funds Rebate amounts made available through the High-Efficiency Electric Home Rebate Program established under subsection (b)(1) of section 124 of the Energy Policy Act of 2005 (as amended by this subtitle) may be used in conjunction with the funds made available under this subsection. (c) Definitions In this section: (1) Aggregator The term aggregator means a gas utility, electric utility, commercial entity, nonprofit entity, or State or local government entity that may receive rebates provided under a State program under this section for 1 or more portfolios consisting of 1 or more energy efficiency retrofits. (2) Contractor certification The term contractor certification means— (A) an industry recognized certification that may be obtained by a residential contractor to advance the expertise and education of the contractor in energy efficiency retrofits of residential buildings; and (B) any other certification the Secretary determines appropriate for purposes of the HOMES Rebate Program established under subsection (b). (3) Contractor company The term contractor company means a company— (A) the business of which is to provide services to residential building owners with respect to HVAC systems, insulation, air sealing, or other services that are approved by the Secretary; (B) that holds the licenses and insurance required by the State in which the company provides services; and (C) that provides services for which a rebate may be provided pursuant to the HOMES Rebate Program established under subsection (b). (4) Energy star program The term Energy Star program means the program established by section 324A of the Energy Policy and Conservation Act ( 42 U.S.C. 6294a ). (5) Home The term home means a building with not more than 4 dwelling units or a manufactured housing unit (including a unit built before June 15, 1976), that— (A) is located in the United States; (B) was constructed before the date of enactment of this Act; (C) is occupied at least 6 months out of the year; and (D) is not on a military base. (6) HVAC system The term HVAC system means a system— (A) is certified under the Energy Star program; (B) consisting of a heating component, a ventilation component, and an air-conditioning component; and (C) the components of which may include central air conditioning, a heat pump, a furnace, a boiler, a rooftop unit, and a window unit. (7) Multifamily building The term multifamily building means a building— (A) with 5 or more dwelling units; and (B) that is not on a military base. (8) Secretary The term Secretary means the Secretary of Energy. (9) State energy office The term State energy office has the meaning given the term State energy agency in section 391(10) of the Energy Policy and Conservation Act ( 42 U.S.C. 6371(10) ). (10) Underserved community The term underserved community means— (A) a community located in a ZIP Code that includes 1 or more census tracts that are identified as— (i) a low-income community; or (ii) a community of racial or ethnic minority concentration; or (B) any other community that the Secretary determines is disproportionately vulnerable to, or bears a disproportionate burden of, any combination of economic, social, and environmental stressors. 30412. High-Efficiency Electric Home Rebate Program (a) In general Section 124 of the Energy Policy Act of 2005 ( 42 U.S.C. 15821 ) is amended to read as follows: 124. High-Efficiency Electric Home Rebate Program (a) Appropriations (1) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (A) $2,226,000,000, to remain available until September 30, 2031, to provide rebates under this section; (B) $4,000,000, to remain available until September 30, 2031, for community and consumer education and outreach related to carrying out this section; and (C) $220,000,000, to remain available until September 30, 2031, to administer this section and to provide administrative and technical support to certified contractor companies, qualified providers, States, and Indian Tribes. (2) Additional funding for Tribal communities and low- or moderate-income households In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,800,000,000, to remain available until September 30, 2031, for— (A) rebates under this section relating to qualified electrification projects carried out in Tribal communities or for low- or moderate-income households; and (B) any necessary administrative or technical support for those qualified electrification projects. (b) High-efficiency electric home rebates for qualified electrification projects (1) High-efficiency electric home rebates The Secretary shall establish a program within the Department, to be known as the High-Efficiency Electric Home Rebate Program , under which the Secretary shall provide to homeowners and owners of multifamily buildings high-efficiency electric home rebates, in accordance with this subsection, for qualified electrification projects carried out at, or relating to, the homes or multifamily buildings, as applicable. (2) Amount of rebate (A) In general Subject to subsection (c)(1)(A), a high-efficiency electric home rebate under paragraph (1) shall be equal to— (i) in the case of a qualified electrification project described in subsection (d)(11)(A)(i)(II) that installs a heat pump used for water heating, not more than $1,250; (ii) in the case of a qualified electrification project described in subsection (d)(11)(A)(i)(II) that installs a heat pump HVAC system— (I) (aa) not more than $3,000 if the heat pump HVAC system has a heating capacity of not less than 27,500 Btu per hour; or (bb) not more than $4,000 if the heat pump HVAC system meets Energy Star program cold climate criteria and is installed in a cold climate, as determined by the Secretary; (II) (aa) not more than $1,500 if the heat pump HVAC system has a heating capacity of less than 27,500 Btu per hour; or (bb) not more than $2,000 if the heat pump HVAC system meets Energy Star program cold climate criteria and is installed in a cold climate, as determined by the Secretary; and (III) $250, in addition to the amount described in subclause (I) or (II), if a qualified electrification project described in subsection (d)(11)(A)(i)(V) that installs insulation, air sealing, and ventilation in accordance with clause (v) is completed within 6 months before or after the qualified electrification project described in that subclause; (iii) in the case of a qualified electrification project described in subclause (III) or (IV) of subsection (d)(11)(A)(i), not more than $600; (iv) in the case of a qualified electrification project described in subsection (d)(11)(A)(i)(I) that installs an electric load or service center panel that enables the installation and use of any upgrade, appliance, system, equipment, infrastructure, component, or other item installed pursuant to any other qualified electrification project, not more than $3,000; (v) in the case of a qualified electrification project described in subsection (d)(11)(A)(i)(V) that installs insulation and air sealing, not more than $800; and (vi) in the case of any other qualified electrification project, including a qualified electrification project described in any of subclauses (I) through (III) of subsection (d)(11)(A)(ii), for which the Secretary provides a high-efficiency electric home rebate, not more than an amount determined by the Secretary for that qualified electrification project, subject to subparagraph (B). (B) Limitations on amount of rebate (i) Maximum total amount Subject to subsection (c)(1)(B), the maximum total amount that may be awarded as high-efficiency electric home rebates under this subsection shall be $10,000 with respect to each home for which a high-efficiency electric home rebate is provided. (ii) Costs (I) In general Subject to subsection (c)(1)(C), the amount of a high-efficiency electric home rebate provided to a homeowner under this subsection shall not exceed 50 percent of the total cost of the applicable qualified electrification project. (II) Labor costs Subject to subsection (c)(1)(C), not more than 50 percent of the labor costs associated with a qualified electrification project may be included in the 50 percent of total costs for which a high-efficiency electric home rebate is provided under this subsection, as described in subclause (I), subject to the condition that labor costs account for not more than 50 percent of the amount of the high-efficiency electric home rebate. (3) Limitations on QEPs (A) Contractors A high-efficiency electric home rebate may be provided for a qualified electrification project carried out by a contractor company only if that contractor company is a certified contractor company. (B) Heat pump HVAC systems A high-efficiency electric home rebate may be provided for a qualified electrification project that installs or enables the installation of a heat pump HVAC system only if the heat pump HVAC system— (i) replaces— (I) a nonelectric HVAC system; (II) an electric resistance HVAC system; or (III) an air conditioning unit that— (aa) does not have a reversing valve; and (bb) has a lower seasonal energy-efficiency ratio than the heat pump HVAC system; or (ii) is part of new construction, as determined by the Secretary. (C) Heat pumps for water heating A high-efficiency electric home rebate may be provided for a qualified electrification project that installs or enables the installation of a heat pump used for water heating only if the heat pump— (i) replaces— (I) a nonelectric heat pump water heater; (II) a nonelectric water heater; or (III) an electric resistance water heater; or (ii) is part of new construction, as determined by the Secretary. (D) Electric stoves, cooktops, ranges, and ovens A high-efficiency electric home rebate may be provided for a qualified electrification project described in subsection (d)(11)(A)(i)(III) only if the applicable electric stove, cooktop, range, or oven— (i) replaces a nonelectric stove, cooktop, range, or oven; or (ii) is part of new construction, as determined by the Secretary. (E) Electric heat pump clothes dryers A high-efficiency electric home rebate may be provided for a qualified electrification project described in subsection (d)(11)(A)(i)(IV) only if the applicable electric heat pump clothes dryer— (i) replaces a nonelectric clothes dryer; or (ii) is part of new construction. (4) Additional incentives for contractors and qualified providers (A) General incentive (i) In general With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $100 to the certified contractor company or qualified provider carrying out the qualified electrification project. (ii) Qualified electrification project described A qualified electrification project referred to in clause (i) is a qualified electrification project— (I) that is carried out at a home or multifamily building; (II) for which a rebate is provided under this subsection; and (III) with respect to which the certified contractor company or qualified provider is not eligible for a higher payment under any of subparagraphs (B) through (D). (B) Incentive for QEPs in certain communities and households (i) In general With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $200 to the certified contractor company or qualified provider carrying out the qualified electrification project. (ii) Qualified electrification project described A qualified electrification project referred to in clause (i) is a qualified electrification project— (I) that is carried out at a home or multifamily building that— (aa) is located in an underserved community or a Tribal community; or (bb) is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income; (II) for which a rebate is provided under this subsection; and (III) with respect to which the certified contractor company or qualified provider is not eligible for a higher payment under subparagraph (C) or (D). (C) Incentive for certain labor practices (i) In general With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $250 to the certified contractor company or qualified provider carrying out the qualified electrification project. (ii) Qualified electrification project described A qualified electrification project referred to in clause (i) is a qualified electrification project— (I) that is carried out— (aa) at a home or multifamily building; and (bb) by a certified contractor company or qualified provider that allows for the use of collective bargaining agreements; (II) for which a rebate is provided under this subsection; and (III) with respect to which— (aa) all laborers and mechanics employed on the qualified electrification project are paid wages at rates not less than those prevailing on projects of a character similar in the locality; and (bb) the certified contractor company or qualified provider is not eligible for a higher payment under subparagraph (D). (D) Maximum incentive (i) In general With respect to each qualified electrification project described in clause (ii), the Secretary shall provide a payment of $500 to the certified contractor company or qualified provider carrying out the qualified electrification project. (ii) Qualified electrification project described A qualified electrification project referred to in clause (i) is a qualified electrification project— (I) that is carried out— (aa) at a home or multifamily building that— (AA) is located in an underserved community or a Tribal community; or (BB) is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income; and (bb) by a certified contractor company or qualified provider that allows for the use of collective bargaining agreements; (II) for which a rebate is provided under this subsection; and (III) with respect to which all laborers and mechanics employed on the qualified electrification project are paid wages at rates not less than those prevailing on projects of a character similar in the locality. (E) Clarification An amount provided to a certified contractor company or qualified provider under any of subparagraphs (A) through (D) shall be in addition to the amount of any high-efficiency electric home rebate received by the certified contractor company or qualified provider. (5) Claim (A) In general Subject to paragraph (2)(B), a homeowner, a certified contractor company, or a qualified provider may claim a separate high-efficiency electric home rebate under this subsection for each qualified electrification project carried out at a home. (B) Transfer The Secretary shall establish and publish procedures pursuant to which a homeowner or owner of a multifamily building may transfer the right to claim a rebate under this subsection to the certified contractor company or qualified provider carrying out the applicable qualified electrification project. (6) Multifamily buildings (A) In general Subject to subparagraph (B), the owner of a multifamily building may combine the amounts of high-efficiency electric home rebates for each dwelling unit in the multifamily building into a single rebate, subject to— (i) the condition that the applicable qualified electrification projects benefit each dwelling unit with respect to which the rebate is claimed; and (ii) any maximum per-dwelling unit rate established by the Secretary. (B) Costs (i) In general Subject to clause (ii), the amount of a rebate under subparagraph (A) shall not exceed 50 percent of the total cost, including labor costs, of the applicable qualified electrification projects. (ii) Low- or moderate-income buildings In the case of a multifamily building that is certified by the Secretary as low- or moderate-income, the amount of a rebate under subparagraph (A) shall not exceed 100 percent of the total cost of the applicable qualified electrification projects. (C) Procedures The Secretary shall establish and publish procedures— (i) pursuant to which the owner of a multifamily building may combine rebate amounts in accordance with this subsection; and (ii) for the enforcement of any limitations under this subsection. (7) Process (A) Rebate process Not later than July 1, 2022, the Secretary shall establish a rebate processing system that provides immediate price relief for consumers who purchase and have installed qualified electrification projects, in accordance with this section. (B) Qualified electrification project list (i) In general Not later than July 1, 2022, the Secretary shall publish a list of qualified electrification projects for which a high-efficiency electric home rebate may be provided under this subsection that includes, at a minimum, the qualified electrification projects described in subsection (d)(11)(A). (ii) Requirements The list published under clause (i) shall include specifications for each qualified electrification project included on the list, including— (I) appropriate certifications under the Energy Star program; and (II) other applicable requirements, such as requirements relating to grid-interactive capability. (iii) Updates (I) In general Not less frequently than once every 3 years and subject to subclause (II), the Secretary shall publish an updated list of qualified electrification projects for which a high-efficiency electric home rebate may be provided under this subsection. (II) Limitation An updated list under subclause (I) shall not allow for any reductions in efficiency levels for qualified electrification projects included on the updated list that are below an efficiency level provided in a previously published version of the list. (c) Special provisions for low- and moderate-income households and multifamily buildings (1) Maximum amounts With respect to a qualified electrification project carried out at a location described in paragraph (2)— (A) a high-efficiency electric home rebate shall be equal to— (i) in the case of a qualified electrification project described in subsection (b)(2)(A)(i), not more than $1,750; (ii) in the case of a qualified electrification project described in subsection (b)(2)(A)(ii)— (I) (aa) not more than $6,000 if the applicable heat pump HVAC system has a heating capacity of not less than 27,500 Btu per hour; or (bb) not more than $7,000 if the applicable heat pump HVAC system meets Energy Star program cold climate criteria and is installed in a cold climate, as determined by the Secretary; and (II) (aa) not more than $3,000 if the applicable heat pump HVAC system has a heating capacity of less than 27,500 Btu per hour; or (bb) not more than $3,500 if the applicable heat pump HVAC system meets Energy Star program cold climate criteria and is installed in a cold climate, as determined by the Secretary; (iii) in the case of a qualified electrification project described in subsection (b)(2)(A)(iii), not more than $840; (iv) in the case of a qualified electrification project described in subsection (b)(2)(A)(iv), not more than $4,000; (v) in the case of a qualified electrification project described in subsection (b)(2)(A)(v) that installs insulation and air sealing, not more than $1,600; and (vi) in the case of a qualified electrification project described in subsection (b)(2)(A)(vi), not more than an amount determined by the Secretary for that qualified electrification project, subject to subparagraph (B); (B) the maximum total amount of high-efficiency electric home rebates that may be awarded with respect to each home of a homeowner shall be $14,000; and (C) the amount of a high-efficiency electric home rebate may be used to cover not more than 100 percent of the costs, including labor costs, of the applicable qualified electrification project. (2) Location described The maximum amounts described in paragraph (1) shall apply to— (A) a home— (i) with respect to which the household of the homeowner is certified as low- or moderate-income; (ii) that is located in a Tribal community; or (iii) in the case of a home that is rented, with respect to which the household of the renter is certified as low- or moderate-income; or (B) a multifamily building— (i) that— (I) is certified as low- or moderate-income; or (II) is located in a Tribal community; and (ii) with respect to which more than more than ½ of the dwelling units in the multifamily building— (I) are occupied by households the annual household incomes of which do not exceed 80 percent of the median annual household income for the area in which the multifamily building is located; and (II) have average monthly rental prices that are equal to, or less than, an amount that is equal to 30 percent of the average monthly household income for the area in which the multifamily building is located. (3) Requirement The Secretary may provide a rebate in an amount described in paragraph (1) to the owner of a multifamily building or home (in the case of a home that is rented) that meets the requirements of this section if the owner agrees in writing to provide commensurate benefits of future savings to renters in the multifamily building or home. (d) Definitions In this section: (1) Certified contractor The term certified contractor means a contractor with a certification reflecting training, education, or other technical expertise relating to qualified electrification projects for residential buildings, as identified by the Secretary. (2) Certified contractor company The term certified contractor company means a company— (A) the business of which is to provide services— (i) to residential building owners; and (ii) for which a rebate may be provided pursuant to this section; (B) that holds the licenses and insurance required by the State in which the company provides services; and (C) that employs 1 or more certified contractors that perform the services for which a rebate may be provided under this section. (3) Electric load or service center upgrade The term electric load or service center upgrade means an improvement to a circuit breaker panel that enables the installation and use of— (A) a QEP described in any of subclauses (II) through (IV) of paragraph (9)(A)(i); or (B) a QEP described in any of subclauses (I) through (III) of paragraph (9)(A)(ii). (4) Energy star program The term Energy Star program means the program established by section 324A of the Energy Policy and Conservation Act ( 42 U.S.C. 6294a ). (5) Heat pump The term heat pump means a heat pump used for water heating, space heating, or space cooling that— (A) relies solely on electricity for its source of power; and (B) is air-sourced, geothermal- or ground-sourced, or water-sourced. (6) High-efficiency electric home rebate The term high-efficiency electric home rebate means a rebate provided in accordance with subsection (b). (7) Home The term home means each of— (A) a building with not more than 4 dwelling units, individual condominium units, or manufactured housing units, that— (i) is located in a State; and (ii) (I) is the primary residence of— (aa) the owner of that building, condominium unit, or manufactured housing unit, as applicable; or (bb) a renter; or (II) is a new-construction single-family residential home; and (B) a unit of a multifamily building that— (i) is owned by an individual who is not the owner of the multifamily building; (ii) is located in a State; and (iii) is the primary residence of— (I) the owner of that unit; or (II) a renter. (8) HVAC The term HVAC means heating, ventilation, and air conditioning. (9) Low- or moderate-income The term low - or moderate - income , with respect to a household, means a household— (A) with an annual income that is less than 80 percent of the annual median income of the area in which the household is located, which such annual median income of the area is determined according to publicly available data; or (B) that is low-income as determined by the Secretary. (10) Multifamily building The term multifamily building means any building— (A) with 5 or more dwelling units that— (i) are built on top of one another or side-by-side; (ii) may share common facilities; and (B) that is not a home; and (C) that is not on a military base. (11) Qualified electrification project; QEP (A) In general The terms qualified electrification project and QEP mean a project that, as applicable— (i) installs, or enables the installation and use of, in a home or multifamily building— (I) an electric load or service center upgrade; (II) an electric heat pump; (III) an induction or noninduction electric stove, cooktop, range, or oven; (IV) an electric heat pump clothes dryer; or (V) insulation, air sealing, and ventilation, in accordance with requirements established by the Secretary; or (ii) installs, or enables the installation and use of, in a home or multifamily building described in subparagraph (B)— (I) a solar photovoltaic system, including any electrical equipment, wiring, or other components necessary for the installation and use of the solar photovoltaic system, including a battery storage system; (II) electric vehicle charging infrastructure or electric vehicle support equipment necessary to recharge an electric vehicle on-site; or (III) electrical rewiring, power sharing plugs, or other installation tasks directly related to and necessary for the safe and effective functioning of a QEP in a home or multifamily building. (B) Home or multifamily building described A home or multifamily building referred to in subparagraph (A)(ii) is a home or multifamily building that is certified, or the household of the homeowner of which is certified, as applicable, as low- or moderate-income. (C) Exclusions The terms qualified electrification project and QEP do not include any project with respect to which the appliance, system, equipment, infrastructure, component, or other item described in clause (i) or (ii) of subparagraph (A) is not certified under the Energy Star program if, as of the date on which the project is carried out, the item is of a category for which a certification is provided under that program. (12) Qualified provider The term qualified provider means an electric utility, Tribal-owned entity or Tribally Designated Housing Entity (TDHE), or commercial, nonprofit, or government entity, including a retailer and a certified contractor company, that provides services for which a rebate may be provided pursuant to this section for 1 or more portfolios that consist of 1 or more qualified electrification projects. (13) Solar photovoltaic system The term solar photovoltaic system means a system— (A) placed on-site at a home or multifamily building, or as part of the community of the home or multifamily building; and (B) that generates electricity from the sun specifically for the home, multifamily building, or community. (14) State The term State means a State, the District of Columbia, or any territory or possession of the United States. (15) Tribal community The term Tribal community means a Tribal tract or Tribal block group. (16) Underserved community The term underserved community means a community located in a census tract that is identified by the Secretary as— (A) a low- or moderate-income community; or (B) a community of racial or ethnic minority concentration. . (b) Conforming amendments (1) The table of contents for the Energy Policy Act of 2005 ( Public Law 109–58 ; 119 Stat. 594) is amended by striking the item relating to section 124 and inserting the following: Sec. 124. High-Efficiency Electric Home Rebate Program. . (2) Section 3201(c)(2)(A)(i) of the Energy Act of 2020 ( 42 U.S.C. 17232(c)(2)(A)(i) ) is amended by striking (a) each place it appears. 2 Building Efficiency and Resilience 30421. Critical facility modernization (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available through September 30, 2031, to provide financial assistance to States to develop and implement State programs described in subsection (d)(5) of section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ), as part of an approved State energy conservation plan under that section, to be distributed to States in accordance with the formula for the State Energy Program established in part 420 of title 10, Code of Federal Regulations (as in effect on January 1, 2021), to carry out projects to improve the energy resilience of public or nonprofit buildings, including projects to increase the energy efficiency and grid integration of public or nonprofit buildings or the renewable energy used at public or nonprofit buildings. (b) Use of funds (1) Guidelines Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidelines for measures for States to include in any program with respect to which a State receives financial assistance under this section. (2) Administrative expenses A State receiving financial assistance under this section shall use not more than 10 percent for administrative purposes. (3) No matching funds requirement The Secretary may not require a State receiving financial assistance under this section to provide matching funds. (4) Exemption Activities carried out using funds appropriated under subsection (a) shall not be subject to the expenditure prohibitions and limitations of the State Energy Program under section 420.18 of title 10, Code of Federal Regulations. (c) Definitions In this section: (1) Energy resilience The term energy resilience means the ability to withstand and quickly recover from an energy supply disruption. (2) Public or nonprofit building The term public or nonprofit building means a public or nonprofit building described in section 362(d)(5)(B) of the Energy Policy and Conservation Act ( 42 U.S.C. 6322(d)(5)(B) ). (3) State The term State has the meaning given the term in section 3 of the Energy Policy and Conservation Act ( 42 U.S.C. 6202 ). 30422. Assistance for latest and zero building energy code adoption (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $100,000,000, to remain available until September 30, 2031, to carry out activities under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in accordance with subsection (b); and (2) $200,000,000, to remain available until September 30, 2031, to carry out activities under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in accordance with subsection (c). (b) Latest building energy code The Secretary of Energy shall use funds made available under subsection (a)(1) for grants to assist States, and units of local government that have authority to adopt building codes, to— (1) adopt— (A) a building energy code (or codes) for residential buildings that meets or exceeds the 2021 International Energy Conservation Code, or achieves equivalent or greater energy savings; (B) a building energy code (or codes) for commercial buildings that meets or exceeds the ANSI/ASHRAE/IES Standard 90.1–2019, or achieves equivalent or greater energy savings; or (C) any combination of building energy codes described in subparagraph (A) or (B); and (2) implement a plan for the jurisdiction to achieve full compliance with any building energy code adopted under paragraph (1) in new and renovated residential or commercial buildings, as applicable, which plan shall include active training and enforcement programs and measurement of the rate of compliance each year. (c) Zero energy code The Secretary of Energy shall use funds made available under subsection (a)(2) for grants to assist States, and units of local government that have authority to adopt building codes, to— (1) adopt a building energy code (or codes) for residential and commercial buildings that meets or exceeds the zero energy provisions in the 2021 International Energy Conservation Code or an equivalent stretch code; and (2) implement a plan for the jurisdiction to achieve full compliance with any building energy code adopted under paragraph (1) in new and renovated residential and commercial buildings, which plan shall include active training and enforcement programs and measurement of the rate of compliance each year. (d) State match The State cost share requirement under the item relating to Department of Energy—Energy Conservation in title II of the Department of the Interior and Related Agencies Appropriations Act, 1985 ( 42 U.S.C. 6323a ; 98 Stat. 1861) shall not apply to assistance provided under this section. (e) State defined In this section, the term State has the meaning given that term in section 3 of the Energy Policy and Conservation Act ( 42 U.S.C. 6202 ). (f) Administrative costs Of the amounts made available under this section, the Secretary shall reserve 5 percent for administrative costs necessary to carry out this section. 3 Zero-emissions vehicle infrastructure 30431. Zero-emissions vehicle infrastructure grants (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available through September 30, 2028, to be distributed to States in accordance with the formula for the State Energy Program established in part 420 of title 10, Code of Federal Regulations (as in effect on January 1, 2021)— (1) $600,000,000 to carry out a program to provide financial assistance to States to develop and implement State programs described in subsection (d)(5) of section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ), as part of an approved State energy conservation plan under that section, to carry out projects to build out publicly accessible level 2 electric vehicle supply equipment in rural communities or underserved or disadvantaged communities; (2) $200,000,000 to carry out a program to provide financial assistance to States to develop and implement State programs described in subsection (d)(5) of section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ), as part of an approved State energy conservation plan under that section, to carry out projects to build out publicly accessible networked direct current fast charge electric vehicle supply equipment in rural communities or underserved or disadvantaged communities; and (3) $200,000,000 to carry out a program to provide financial assistance to States to develop and implement State programs described in subsection (d)(5) of section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ), as part of an approved State energy conservation plan under that section, to carry out projects to build out hydrogen fueling stations in rural communities or underserved or disadvantaged communities. (b) Requirements (1) Measures Not later than 180 days after the date of enactment of this Act, the Secretary shall establish requirements for measures to be included in any program with respect to which a State receives financial assistance under this section. (2) Administrative expenses A State receiving financial assistance under this section shall use not more than 5 percent for administrative purposes. (3) No matching funds requirement The Secretary may not require a State receiving financial assistance under this section to provide matching funds. (4) Eligible entities Financial assistance provided by a State using funds made available under this section shall only be available to eligible entities. (5) Third-party contracts A State or eligible entity may enter into a contract with a private third-party entity for the build out of electric vehicle supply equipment or hydrogen fueling stations under subsection (a). (6) Use of private property A State or eligible entity may enter into an agreement for the use of publicly accessible private property. (7) Limitation The Secretary shall ensure that no entity receives a profit for access to or hosting of electric vehicle supply equipment or hydrogen fueling stations built out under a contract entered into under paragraph (5) or pursuant to an agreement entered into under paragraph (6), except that the Secretary shall determine an appropriate amount of profit that an entity may receive for the sale of electricity or hydrogen and the operation and maintenance of such electric vehicle supply equipment or hydrogen fueling stations. (8) Reallocation of funds A State shall return to the Secretary any funds received under subsection (a) that the State does not award within 3 years of receiving such funds, and the Secretary shall reallocate such funds to other States. (c) Definitions In this section: (1) Electric vehicle supply equipment The term electric vehicle supply equipment means any conductors, including ungrounded, grounded, and equipment grounding conductors, electric vehicle connectors, attachment plugs, and all other fittings, devices, power outlets, electrical equipment, stationary energy storage systems, off-grid charging installations, or apparatuses installed specifically for the purpose of delivering energy to an electric vehicle or to a battery intended to be used in an electric vehicle. (2) Eligible entity The term eligible entity means a local, Tribal, or territorial government, a not-for-profit entity, a nonprofit entity, a metropolitan planning organization, or an entity with fewer than 50 employees, as determined by the Secretary. (3) Level 2 electric vehicle supply equipment The term level 2 electric vehicle supply equipment means electric vehicle supply equipment that provides an alternating current power source at a minimum of 208 volts. (4) Networked direct current fast charge electric vehicle supply equipment The term networked direct current fast charge electric vehicle supply equipment means electric vehicle supply equipment that is capable of providing a direct current power source at a minimum of 50 kilowatts and is enabled to connect to a network to facilitate at least data collection and access. (5) Private third-party entity The term private third-party entity means a non-governmental entity, including a private business, that is able to contract with the State or an eligible entity to carry out projects to build out electric vehicle supply equipment or hydrogen fueling stations. (6) Publicly accessible The term publicly accessible means available to members of the public, including within or around— (A) multiunit housing structures; (B) workplaces; (C) commercial locations that are accessible for a minimum of 12 hours per day at least 5 days a week, and capable of being monitored remotely; or (D) other locations that are accessible for a minimum of 12 hours per day at least 5 days a week, and capable of being monitored remotely. (7) Secretary The term Secretary means the Secretary of Energy. (8) Underserved or disadvantaged community The term underserved or disadvantaged community means a community or geographic area that is identified by the Secretary as— (A) a low-income community; (B) a Tribal community; (C) having a disproportionately low number of electric vehicle charging stations per capita, compared to similar areas; or (D) disproportionately vulnerable to, or bearing a disproportionate burden of, any combination of economic, social, environmental, or climate stressors. 4 DOE Loan and Grant Programs 30441. Funding for Department of Energy Loan Programs Office (a) Commitment authority In addition to commitment authority otherwise available and previously provided, the Secretary of Energy may make commitments to guarantee loans for eligible projects under section 1703 of the Energy Policy Act of 2005 up to a total principal amount of $40,000,000,000, to remain available until September 30, 2026: Provided , That for amounts collected pursuant to section 1702(b)(2) of the Energy Policy Act of 2005, the source of such payment received from borrowers may not be a loan or other debt obligation that is guaranteed by the Federal Government: Provided further, That none of the loan guarantee authority made available by this section shall be available for any project unless the President has certified in advance in writing that the loan guarantee and the project comply with the provisions under this section: Provided further , That none of such loan guarantee authority made available by this section shall be available for commitments to guarantee loans for any projects where funds, personnel, or property (tangible or intangible) of any Federal agency, instrumentality, personnel, or affiliated entity are expected to be used (directly or indirectly) through acquisitions, contracts, demonstrations, exchanges, grants, incentives, leases, procurements, sales, other transaction authority, or other arrangements, to support the project or to obtain goods or services from the project: Provided further , That the previous proviso shall not be interpreted as precluding the use of the loan guarantee authority provided by this section for commitments to guarantee loans for— (1) projects as a result of such projects benefitting from otherwise allowable Federal tax benefits; (2) projects as a result of such projects benefitting from being located on Federal land pursuant to a lease or right-of-way agreement for which all consideration for all uses is— (A) paid exclusively in cash; (B) deposited in the Treasury as offsetting receipts; and (C) equal to the fair market value; (3) projects as a result of such projects benefitting from the Federal insurance program under section 170 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2210 ); or (4) electric generation projects using transmission facilities owned or operated by a Federal Power Marketing Administration or the Tennessee Valley Authority that have been authorized, approved, and financed independent of the project receiving the guarantee. (b) Appropriation In addition to amounts otherwise available and previously provided, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,600,000,000, to remain available until September 30, 2026, for the costs of guarantees made under section 1703 of the Energy Policy Act of 2005, using the loan guarantee authority provided under subsection (a) of this section. (c) Administrative expenses Of the amount made available under subsection (b), the Secretary of Energy shall reserve 3 percent for administrative expenses to carry out title XVII of the Energy Policy Act of 2005 and for carrying out section 1702(h)(3) of such Act. 30442. Advanced technology vehicle manufacturing (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until September 30, 2028, for the costs of— (1) providing direct loans under section 136(d) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013(d) ); and (2) providing direct loans, in accordance with section 136 of such Act, for reequipping, expanding, or establishing a manufacturing facility in the United States to produce, or for engineering integration performed in the United States of— (A) a medium duty vehicle or a heavy duty vehicle; or (B) any of the following that emit, under any possible operational mode or condition, zero exhaust emissions of any greenhouse gas: (i) A train or locomotive. (ii) A maritime vessel. (iii) An aircraft. (iv) Hyperloop technology. (b) Administrative costs The Secretary shall reserve $25,000,000 of amounts made available under subsection (a) for administrative costs of providing loans as described in subsection (a). (c) Elimination of loan program cap Section 136(d)(1) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17013(d)(1) ) is amended by striking a total of not more than $25,000,000,000 in . 30443. Domestic Manufacturing Conversion Grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,500,000,000, to remain available until expended, for grants relating to domestic production of plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles, in accordance with section 712 of the Energy Policy Act of 2005 ( 42 U.S.C. 16062 ). (b) Administrative costs The Secretary shall reserve 3 percent of amounts made available under subsection (a) for administrative costs of making grants described in such subsection (a) pursuant to section 712 of the Energy Policy Act of 2005 ( 42 U.S.C. 16062 ). 30444. Energy community reinvestment financing Title XVII of the Energy Policy Act of 2005 is amended by inserting after section 1705 ( 42 U.S.C. 16516 ) the following: 1706. Energy community reinvestment financing program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available until September 30, 2026, for the cost of providing financial support under this section, the gross principal amount of which shall not exceed $250,000,000,000. (b) Establishment Notwithstanding section 1702(f) and section 1703, and not later than 180 days after the date of enactment of this section, the Secretary shall establish a program to provide financial support, in such form and on such terms and conditions as the Secretary determines appropriate, to eligible entities for the purpose of making or enabling low-carbon reinvestments in energy communities, which such reinvestments may include— (1) supporting workers who are or have been engaged in providing, or have been affected by the provision of, energy-intensive goods or services by helping such workers find employment opportunities, including by providing training and education; (2) redeveloping a community that is or was engaged in providing, or has been affected by the provision of, energy-intensive goods or services; (3) accelerating remediation of environmental damage caused by the provision of energy-intensive goods or services; and (4) mitigating the effects on customers of any significant reduction in the carbon intensity of goods or services provided by the eligible entity, including by the cost-effective abatement of greenhouse gas emissions from continuing operations and the repowering, retooling, repurposing, redeveloping, or remediating of any long-lived assets, lands, or infrastructure currently or previously used by the eligible entity primarily to support the provision of energy-intensive goods or services. (c) Application requirement To apply for financial support provided under this section, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, which such application shall include— (1) a detailed plan describing the activities to be carried out in accordance with subsection (b), including activities for the measurement, monitoring, and verification of emissions of greenhouse gases; and (2) if the eligible entity is a utility subject to regulation by a State commission or other State regulatory authority, assurances, as determined appropriate by the Secretary, that such eligible entity shall pass through any financial benefit from the provision of any financial support under this section to its customers or energy communities. (d) Other requirements (1) Fees Notwithstanding section 1702(h)(1), the Secretary shall charge and collect a fee from each eligible entity that received financial support provided under this section in an amount the Secretary determines sufficient to cover applicable administrative expenses (including any costs associated with third party consultants engaged by the Secretary). (2) Specific Appropriation or Contribution Any cost for any financial support provided under this section shall be paid in accordance with subsection (b) of section 1702 (for purposes of which any reference in such subsection to a guarantee shall be considered to be a reference to financial support). (e) Definitions In this section: (1) Cost Notwithstanding section 1701, the term cost has the meaning given such term in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a ). (2) Eligible entity The term eligible entity means any entity that is directly affiliated with the provision of energy-intensive goods or services. (3) Energy community The term energy community means a community whose members are or were engaged in providing, or have been affected by the provision of, energy-intensive goods and services. (4) Financial support The term financial support means any credit product or support the Secretary determines appropriate to implement this section, including— (A) a line of credit; and (B) a guarantee, including of a letter of credit for the purposes of subsection (b)(3). . 30445. Tribal Energy Loan Guarantee Program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until September 30, 2028, to carry out section 2602(c) of the Energy Policy Act of 1992 ( 25 U.S.C. 3502(c) ). (b) Inclusions in title XVII definition of guarantee Section 1701(4)(B) of the Energy Policy Act of 2005 ( 42 U.S.C. 16511(4)(B) ) is amended by striking the period at the end and inserting and, for purposes of minimizing financing costs, includes a guarantee by the Secretary of 100 percent of the unpaid principal and interest due on any obligation to the Federal Financing Bank. . (c) Department of Energy Tribal Energy Loan Guarantee Program Section 2602(c) of the Energy Policy Act of 1992 ( 25 U.S.C. 3502(c) ) is amended— (1) in paragraph (1), by striking (as defined in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a )) for an amount equal to not more than 90 percent of and inserting (as defined in section 1701 of the Energy Policy Act of 2005 ( 42 U.S.C. 16511 )) for ; and (2) in paragraph (4), by striking $2,000,000,000 and inserting $20,000,000,000 . 5 Electric transmission 30451. Transmission line and intertie incentives (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2030, $1,500,000,000 for purposes of providing grants under subsection (b) and for administrative expenses associated with carrying out this section, and $500,000,000 for the costs of providing direct loans under subsection (b): Provided , That the Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031, or any grant agreement pursuant to this section that could result in any outlays after September 30, 2031: Provided further , That none of such loan authority made available by this section shall be available for loans for any projects where funds, personnel, or property (tangible or intangible) of any Federal agency, instrumentality, personnel, or affiliated entity are expected to be used (directly or indirectly) through acquisitions, contracts, demonstrations, exchanges, grants, incentives, leases, procurements, sales, other transaction authority, or other arrangements to support the project or to obtain goods or services from the project: Provided further , That the previous proviso shall not be interpreted as precluding the use of the loan authority provided by this section for commitments to loans for: (1) projects benefitting from otherwise allowable Federal tax benefits; (2) projects benefitting from being located on Federal land pursuant to a lease or right-of-way agreement for which all consideration for all uses is: (A) paid exclusively in cash; (B) deposited in the Treasury as offsetting receipts; and (C) equal to the fair market value; (3) projects benefitting from the Federal insurance program under section 170 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2210 ); or (4) electric generation projects using transmission facilities owned or operated by a Federal Power Marketing Administration or the Tennessee Valley Authority that have been authorized, approved, and financed independent of the project receiving the guarantee: Provided further , That none of the loan authority made available by this section shall be available for any project unless the President has certified in advance in writing that the loan and the project comply with the provisions under this section. (b) In general Except as provided in subsection (c), the Secretary of Energy may provide grants and direct loans to eligible entities to construct new, or make upgrades to existing, eligible transmission lines or eligible interties, including the related facilities thereof, if the Secretary of Energy determines that such construction or upgrade would support— (1) a more robust and resilient electric grid; and (2) the integration of electricity from a clean energy facility into the electric grid. (c) Other requirements (1) Interest rates The Secretary of Energy shall determine the rate of interest to charge on direct loans provided under subsection (b) by taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date the loan is disbursed. (2) Recovery of costs for grants A grant provided under this section may not be used to cover the portion of costs for the construction of new, or for making upgrades to existing, eligible transmission lines or eligible interties, including the related facilities thereof, that are approved for recovery through a Transmission Organization, regional planning authority, governing or ratemaking body of an electric cooperative, State commission, or another similar body. (3) No duplicate assistance No eligible entity may receive both a grant and a direct loan for the same construction of, or upgrade to, an eligible transmission line or eligible intertie under this section. (d) Definitions In this section: (1) Clean energy facility The term clean energy facility means any electric generating unit that does not emit carbon dioxide. (2) Direct loan The term direct loan means a disbursement of funds by the Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by another lender and financing arrangements that defer payment for more than 90 days, including the sale of a government asset on credit terms. (3) Eligible entity The term eligible entity means a non-Federal entity. (4) Eligible intertie The term eligible intertie means— (A) any interties across the seam between the Western Interconnection and the Eastern Interconnection; (B) the Pacific Northwest-Pacific Southwest Intertie; (C) any interties between the Electric Reliability Council of Texas and the Western Interconnection or the Eastern Interconnection; or (D) such other interties that the Secretary determines contribute to— (i) a more robust and resilient electric grid; and (ii) the integration of electricity from a clean energy facility into the electric grid. (5) Eligible transmission line The term eligible transmission line means an electric power transmission line that— (A) in the case of new construction under subsection (b), has a transmitting capacity of not less than 1,000 megawatts; (B) in the case of an upgrade made under subsection (b), the upgrade to which will increase its transmitting capacity by not less than 500 megawatts; and (C) is capable of transmitting electricity— (i) across any eligible intertie; (ii) from an offshore wind generating facility; or (iii) along a route, or in a corridor, determined by the Secretary of Energy to be necessary to meet interregional or national electricity transmission needs. (6) State commission; Transmission Organization The terms State commission and Transmission Organization have the meanings given such terms in section 3 of the Federal Power Act ( 16 U.S.C. 796 ). 30452. Grants to facilitate the siting of interstate electricity transmission lines (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $800,000,000, to remain available until September 30, 2029, for making grants in accordance with this section and for administrative expenses associated with carrying out this section. (b) Use of funds (1) In general The Secretary may make a grant under this section to a siting authority for, with respect to a covered transmission project, any of the following activities: (A) Studies and analyses of the impacts of the covered transmission project. (B) Examination of up to 3 alternate siting corridors within which the covered transmission project feasibly could be sited. (C) Hosting and facilitation of negotiations in settlement meetings involving the siting authority, the covered transmission project applicant, and opponents of the covered transmission project, for the purpose of identifying and addressing issues that are preventing approval of the application relating to the siting or permitting of the covered transmission project. (D) Participation by the siting authority in regulatory proceedings or negotiations in another jurisdiction, or under the auspices of a Transmission Organization (as defined in section 3 of the Federal Power Act ( 16 U.S.C. 796 )) that is also considering the siting or permitting of the covered transmission project. (E) Participation by the siting authority in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission for determining applicable rates and cost allocation for the covered transmission project. (F) Other measures and actions that may improve the chances of, and shorten the time required for, approval by the siting authority of the application relating to the siting or permitting of the covered transmission project, as the Secretary determines appropriate. (2) Economic development The Secretary may make a grant under this section to a siting authority, or other State, local, or Tribal governmental entity, for economic development activities for communities that may be affected by the construction and operation of a covered transmission project, provided that the Secretary shall not enter into any grant agreement pursuant to this section that could result in any outlays after September 30, 2031. (c) Conditions (1) Final decision on application In order to receive a grant for an activity described in subsection (b)(1), the Secretary shall require a siting authority to agree, in writing, to reach a final decision on the application relating to the siting or permitting of the applicable covered transmission project not later than 2 years after the date on which such grant is provided, unless the Secretary authorizes an extension for good cause. (2) Federal share The Federal share of the cost of an activity described in subparagraph (D) or (E) of subsection (b)(1) shall not exceed 50 percent. (3) Economic development The Secretary may only disburse grant funds for economic development activities under subsection (b)(2)— (A) to a siting authority upon approval by the siting authority of the applicable covered transmission project; and (B) to any other State, local, or Tribal governmental entity upon commencement of construction of the applicable covered transmission project in the area under the jurisdiction of the entity. (d) Returning funds If a siting authority that receives a grant for an activity described in subsection (b)(1) fails to use all grant funds within 2 years of receipt, the siting authority shall return to the Secretary any such unused funds. (e) Definitions In this section: (1) Covered transmission project The term covered transmission project means a high-voltage interstate or offshore electricity transmission line— (A) that is proposed to be constructed and to operate at a minimum of 275 kilovolts of either alternating-current or direct-current electric energy by an entity; and (B) for which such entity has applied, or informed a siting authority of such entity’s intent to apply, for regulatory approval. (2) Siting authority The term siting authority means a State, local, or Tribal governmental entity with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project that is proposed to be located in an area under the jurisdiction of the entity. (3) State The term State means a State, the District of Columbia, or any territory or possession of the United States. 30453. Organized wholesale electricity market technical assistance grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until fiscal year 2031, for purposes of carrying out a program to provide— (1) technical assistance and grants to States to evaluate forming, participating in, expanding, or improving organized wholesale electricity markets; and (2) grants to States to procure data or technology systems related to forming, participating in, expanding, or improving organized wholesale electricity markets. (b) Applications To apply for technical assistance or a grant provided under this section, a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (c) Definitions In this section: (1) Independent System Operator; Regional Transmission Organization The terms Independent System Operator and Regional Transmission Organization have the meanings given such terms in section 3 of the Federal Power Act ( 16 U.S.C. 796 ). (2) Organized wholesale electricity market The term organized wholesale electricity market means an Independent System Operator or a Regional Transmission Organization. (3) Secretary The term Secretary means the Secretary of Energy. (4) State The term State means a State or the District of Columbia. 30454. Interregional and offshore wind electricity transmission planning, modeling, and analysis (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, to carry out this section. (b) Use of funds The Secretary of Energy shall use amounts made available under subsection (a) to— (1) pay expenses associated with convening relevant stakeholders, including States, generation and transmission developers, regional transmission organizations, independent system operators, environmental organizations, electric utilities, and other stakeholders the Secretary determines appropriate, to address the development of interregional electricity transmission and transmission of electricity that is generated by offshore wind; and (2) conduct planning, modeling, and analysis regarding interregional electricity transmission and transmission of electricity that is generated by offshore wind, taking into account the local, regional, and national economic, reliability, resilience, security, public policy, and environmental benefits of interregional electricity transmission and transmission of electricity that is generated by offshore wind, including planning, modeling, and analysis, as the Secretary determines appropriate, pertaining to— (A) clean energy integration into the electric grid, including the identification of renewable energy zones; (B) the effects of changes in weather due to climate change on the reliability and resilience of the electric grid; (C) cost allocation methodologies that facilitate the expansion of the bulk power system; (D) the benefits of coordination between generator interconnection processes and transmission planning processes; (E) the effect of increased electrification on the electric grid; (F) power flow modeling; (G) the benefits of increased interconnections or interties between or among the Western Interconnection, the Eastern Interconnection, the Electric Reliability Council of Texas, and other interconnections, as applicable; (H) the cooptimization of transmission and generation, including variable energy resources, energy storage, and demand-side management; (I) the opportunities for use of nontransmission alternatives, energy storage, and grid-enhancing technologies; (J) economic development opportunities for communities arising from development of interregional electricity transmission and transmission of electricity that is generated by offshore wind; (K) evaluation of existing rights-of-way and the need for additional transmission corridors; and (L) a planned national transmission grid, which would include a networked transmission system to optimize the existing grid for interconnection of offshore wind farms. 6 Environmental reviews 30461. Department of Energy In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $125,000,000, to remain available until September 30, 2031, to provide for the development of more efficient, accurate, and timely reviews for planning, permitting, and approval processes through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of data or information systems, stakeholder and community engagement, the purchase of new equipment for analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. 30462. Federal Energy Regulatory Commission (a) In general In addition to amounts otherwise available, there is appropriated to the Federal Energy Regulatory Commission for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until September 30, 2031, to provide for the development of more efficient, accurate, and timely reviews for planning, permitting, and approval processes through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of data or information systems, stakeholder and community engagement, the purchase of new equipment for analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. (b) Fees and charges Section 3401(a) of the Omnibus Budget Reconciliation Act of 1986 ( 42 U.S.C. 7178(a) ) shall not apply to the costs incurred by the Federal Energy Regulatory Commission in carrying out this section. 7 Industrial 30471. Advanced industrial facilities deployment program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,000,000,000, to remain available until September 30, 2026, to carry out this section. (b) Program The Secretary shall use funds appropriated by subsection (a) to establish a program to provide financial assistance, on a competitive basis, to eligible entities to carry out projects for— (1) the purchase and installation, or implementation, of advanced industrial technology at an eligible facility; (2) retrofits, upgrades to, or operational improvements at an eligible facility to install or implement advanced industrial technology; or (3) engineering studies and other work needed to prepare an eligible facility for activities described in paragraph (1) or (2). (c) Application To be eligible to receive financial assistance under the program established under subsection (b), an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including the expected greenhouse gas emissions reductions to be achieved by carrying out the project. (d) Priority In providing financial assistance under the program established under subsection (b), the Secretary shall give priority consideration to projects on the basis of, as determined by the Secretary— (1) the expected greenhouse gas emissions reductions to be achieved by carrying out the project; (2) the extent to which the project would provide the greatest benefit for the greatest number of people within the area in which the eligible facility is located; and (3) whether the eligible entity participates or would participate in a partnership with purchasers of the output of the eligible facility. (e) Cost share The Secretary may require an eligible entity to provide not more than 50 percent of the cost of a project carried out pursuant to this section. (f) Administrative costs The Secretary shall reserve $200,000,000 of amounts made available under subsection (a) for administrative costs of carrying out this section. (g) Definitions (1) Advanced industrial technology The term advanced industrial technology means technology or processes designed to accelerate greenhouse gas emissions reduction progress to net-zero at an eligible facility, as determined by the Secretary, including— (A) industrial energy efficiency technologies; (B) equipment to electrify industrial processes; (C) equipment to utilize low- or zero-carbon fuels, feedstocks, and energy sources; (D) low- or zero-carbon process heat systems; and (E) carbon capture, transport, utilization, and storage systems. (2) Eligible entity The term eligible entity means the owner or operator of an eligible facility. (3) Eligible facility The term eligible facility means a domestic, non-Federal, nonpower industrial or manufacturing facility engaged in energy-intensive industrial processes, including production processes for iron, steel, steel mill products, aluminum, cement, concrete, glass, pulp, paper, and industrial ceramics. (4) Financial assistance The term financial assistance means a grant, rebate, or cooperative agreement. (5) Secretary The term Secretary means the Secretary of Energy. 8 Other Energy Matters 30481. Oversight In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, for oversight by the Department of Energy Office of Inspector General of the Department of Energy activities for which funding is appropriated in this subtitle. 30482. Energy Information Administration In addition to amounts otherwise available, there is appropriated to the Administrator of the Energy Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until September 30, 2031, for data collection, research, and analysis activities. E Affordable Health Care Coverage 30601. Ensuring affordability of coverage for certain low-income populations (a) Reducing cost sharing under qualified health plans Section 1402 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18071 ) is amended— (1) in subsection (b)— (A) in paragraph (2), by inserting (or, with respect to plan years 2023, 2024, and 2025, whose household income does not exceed 400 percent of the poverty line for a family of the size involved) before the period; and (B) in the matter following paragraph (2), by adding at the end the following new sentence: In the case of an individual who is determined at any point to have a household income for 2022 that does not exceed 138 percent of the poverty line for a family of the size involved, such individual shall, for each month during such year, be treated as having a household income equal to 100 percent for purposes of applying this section. ; and (2) in subsection (c)— (A) in paragraph (1)(A), in the matter preceding clause (i), by inserting , with respect to eligible insureds (other than, with respect to plan years 2023, 2024, and 2025, specified enrollees (as defined in paragraph (6)(C))), after first be achieved ; (B) in paragraph (2), in the matter preceding subparagraph (A), by inserting with respect to eligible insureds (other than, with respect to plan years 2023, 2024, and 2025, specified enrollees) after under the plan ; (C) in paragraph (3)— (i) in subparagraph (A), by striking this subsection and inserting paragraph (1) or (2) ; and (ii) in subparagraph (B), by striking this section and inserting paragraphs (1) and (2) ; and (D) by adding at the end the following new paragraph: (6) Special rule for specified enrollees (A) In general The Secretary shall establish procedures under which the issuer of a qualified health plan to which this section applies shall reduce cost-sharing under the plan with respect to months occurring during plan years 2023, 2024, and 2025 for enrollees who are specified enrollees (as defined in subparagraph (C)) in a manner sufficient to increase the plan’s share of the total allowed costs of benefits provided under the plan to 99 percent of such costs. (B) Methods for reducing cost sharing (i) In general An issuer of a qualified health plan making reductions under this paragraph shall notify the Secretary of such reductions and the Secretary shall, out of funds made available under clause (ii), make periodic and timely payments to the issuer equal to 12 percent of the total allowed costs of benefits provided under each such plan to specified enrollees during plan years 2023, 2024, and 2025. (ii) Appropriation In addition to amounts otherwise available, there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to the Secretary to make payments under clause (i). (C) Specified enrollee defined For purposes of this section, the term specified enrollee means, with respect to a plan year, an eligible insured who is determined at any point to have a household income for such plan year that does not exceed 138 percent of the poverty line for a family of the size involved. Such insured shall be deemed to be a specified enrollee for each month in such plan year. . (b) Open enrollments applicable to certain lower-income populations Section 1311(c) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18031(c) ) is amended— (1) in paragraph (6)— (A) in subparagraph (C), by striking at the end and ; (B) in subparagraph (D), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new subparagraph: (E) with respect to a qualified health plan with respect to which section 1402 applies, for months occurring during the period beginning on January 1, 2022, and ending on December 31, 2025, enrollment periods described in subparagraph (A) of paragraph (8) for individuals described in subparagraph (B) of such paragraph. ; and (2) by adding at the end the following new paragraph: (8) Special enrollment period for certain low-income populations (A) In general The enrollment period described in this paragraph is, in the case of an individual described in subparagraph (B), the continuous period beginning on the first day that such individual is so described. (B) Individual described For purposes of subparagraph (A), an individual described in this subparagraph is an individual— (i) with a household income that does not exceed 138 percent of the poverty line for a family of the size involved; and (ii) who is not eligible for minimum essential coverage (as defined in section 5000A(f) of the Internal Revenue Code of 1986), other than for coverage described in any of subparagraphs (B) through (E) of paragraph (1) of such section. . (c) Additional benefits for certain low-income individuals for plan years 2024 and 2025 Section 1301(a) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18021(a) ) is amended— (1) in paragraph (1)— (A) in subparagraph (B), by striking and at the end; (B) in subparagraph (C)(iv), by striking the period and inserting ; and ; and (C) by adding at the end the following new subparagraph: (D) provides, with respect to a plan offered in the silver level of coverage to which section 1402 applies during plan year 2024 and 2025, for benefits described in paragraph (5) in the case of an individual who has a household income that does not exceed 138 percent of the poverty line for a family of the size involved, and who is eligible to receive cost-sharing reductions under section 1402. ; and (2) by adding at the end the following new paragraph: (5) Additional benefits for certain low-income individuals for plan year 2024 and 2025 (A) In general (i) Benefits For purposes of paragraph (1)(D), the benefits described in this paragraph to be provided by a qualified health plan are benefits consisting of— (I) non-emergency medical transportation services (as described in section 1902(a)(4) of the Social Security Act) for which Federal payments would have been available under title XIX of the Social Security Act had such services been furnished to an individual enrolled under a State plan (or waiver of such plan) under such title; and (II) services described in subsection (a)(4)(C) of section 1905 of such Act for which Federal payments would have been so available; which are not otherwise provided under such plan as part of the essential health benefits package described in section 1302(a). (ii) Condition on provision of benefits Benefits described in this paragraph shall be provided— (I) without any restriction on the choice of a qualified provider from whom an individual may receive such benefits; and (II) without any imposition of cost sharing. (B) Payments for additional benefits (i) In general An issuer of a qualified health plan making payments for services described in subparagraph (A) furnished to individuals described in paragraph (1)(D) during plan year 2024 or 2025 shall notify the Secretary of such payments and the Secretary shall, out of funds made available under clause (ii), make periodic and timely payments to the issuer equal to payments for such services so furnished. (ii) Appropriation In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to the Secretary to make payments under clause (i). . (d) Education and outreach activities — (1) In general Section 1321(c) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18041(c) ) is amended by adding at the end the following new paragraph: (3) Outreach and educational activities (A) In general In the case of an Exchange established or operated by the Secretary within a State pursuant to this subsection, the Secretary shall carry out outreach and educational activities for purposes of informing individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act who reside in States that have not expended amounts under a State plan (or waiver of such plan) under title XIX of such Act for all such individuals about qualified health plans offered through the Exchange, including by informing such individuals of the availability of coverage under such plans and financial assistance for coverage under such plans. Such outreach and educational activities shall be provided in a manner that is culturally and linguistically appropriate to the needs of the populations being served by the Exchange (including hard-to-reach populations, such as racial and sexual minorities, limited English proficient populations, individuals residing in areas where the unemployment rates exceeds the national average unemployment rate, individuals in rural areas, veterans, and young adults). (B) Limitation on use of funds No funds appropriated under this paragraph shall be used for expenditures for promoting non-ACA compliant health insurance coverage. (C) Non-aca compliant health insurance coverage For purposes of subparagraph (B): (i) The term non-ACA compliant health insurance coverage means health insurance coverage, or a group health plan, that is not a qualified health plan. (ii) Such term includes the following: (I) An association health plan. (II) Short-term limited duration insurance. (D) Funding In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, to remain available until expended, $105,000,000 for fiscal year 2022 to carry out this paragraph, of which— (i) $15,000,000 shall be used to carry out this paragraph in fiscal year 2022; and (ii) $30,000,000 shall be used to carry out this paragraph for each of fiscal years 2023 through 2025. . (2) Navigator program Section 1311(i)(6) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18031(i)(6) ) is amended— (A) by striking Funding.— Grants under and inserting Funding.— (A) State Exchanges Grants under ; and (B) by adding at the end the following new subparagraph: (B) Federal Exchanges For purposes of carrying out this subsection, with respect to an Exchange established and operated by the Secretary within a State pursuant to section 1321(c), the Secretary shall obligate not less than $10,000,000 out of amounts collected through the user fees on participating health insurance issuers pursuant to section 156.50 of title 45, Code of Federal Regulations (or any successor regulations) for fiscal year 2022, and not less than $20,000,000 for each of fiscal years 2023, 2024, and 2025. Such amount so obligated for a fiscal year shall remain available until expended. . (e) Funding In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $65,000,000, to remain available until expended, for purposes of carrying out the provisions of, and the amendments made by, this section, section 30602, and section 30603. 30602. Establishing a health insurance affordability fund (a) In general Subtitle D of title I of the Patient Protection and Affordable Care Act is amended by inserting after section 1343 ( 42 U.S.C. 18063 ) the following new part: 6 Improve Health Insurance Affordability Fund 1351. Establishment of program There is hereby established the Improve Health Insurance Affordability Fund to be administered by the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services (in this section referred to as the Administrator ), to provide funding, in accordance with this part, to the 50 States and the District of Columbia (each referred to in this section as a State ) beginning on January 1, 2023, for the purposes described in section 1352. 1352. Use of funds (a) In general A State shall use the funds allocated to the State under this part for one of the following purposes: (1) To provide reinsurance payments to health insurance issuers with respect to individuals enrolled under individual health insurance coverage (other than through a plan described in subsection (b)) offered by such issuers. (2) To provide assistance (other than through payments described in paragraph (1)) to reduce out-of-pocket costs, such as copayments, coinsurance, premiums, and deductibles, of individuals enrolled under qualified health plans offered on the individual market through an Exchange and of individuals enrolled under standard health plans offered through a basic health program established under section 1331. (b) Exclusion of certain grandfathered plans, transitional plans, student health plans, and excepted benefits For purposes of subsection (a), a plan described in this subsection is the following: (1) A grandfathered health plan (as defined in section 1251). (2) A plan (commonly referred to as a transitional plan ) continued under the letter issued by the Centers for Medicare & Medicaid Services on November 14, 2013, to the State Insurance Commissioners outlining a transitional policy for coverage in the individual and small group markets to which section 1251 does not apply, and under the extension of the transitional policy for such coverage set forth in the Insurance Standards Bulletin Series guidance issued by the Centers for Medicare & Medicaid Services on March 5, 2014, February 29, 2016, February 13, 2017, April 9, 2018, March 25, 2019, January 31, 2020, and January 19, 2021, or under any subsequent extensions thereof. (3) Student health insurance coverage (as defined in section 147.145 of title 45, Code of Federal Regulations, or any successor regulation). (4) Excepted benefits (as defined in section 2791(c) of the Public Health Service Act). 1353. State eligibility and approval; Default safeguard (a) Encouraging State options for allocations (1) In general Subject to subsection (b), to be eligible for an allocation of funds under this part for a year (beginning with 2023), a State shall submit to the Administrator an application at such time (but, in the case of allocations for 2023, not later than 120 days after the date of the enactment of this part and, in the case of allocations for a subsequent year, not later than January 1 of the previous year) and in such form and manner as specified by the Administrator containing— (A) a description of how the funds will be used; and (B) such other information as the Administrator may require. (2) Automatic approval An application so submitted is approved (as outlined in the terms of the plan) unless the Administrator notifies the State submitting the application, not later than 90 days after the date of the submission of such application, that the application has been denied for not being in compliance with any requirement of this part and of the reason for such denial. (3) Subsequent year application approval If an application of a State is approved for a purpose described in section 1352 for a year, such application shall be treated as approved for such purpose for each of subsequent year through 2025. (4) Oversight authority and authority to revoke approval (A) Oversight The Secretary may conduct periodic reviews of the use of funds provided to a State under this section, with respect to a purpose described in section 1352, to ensure the State uses such funds for such purpose and otherwise complies with the requirements of this section. (B) Revocation of approval The approval of an application of a State, with respect to a purpose described in section 1352, may be revoked if the State fails to use funds provided to the State under this section for such purpose or otherwise fails to comply with the requirements of this section. (b) Default Federal safeguard for 2023, 2024, and 2025 for certain States (1) In general For 2023, 2024, and 2025, in the case of a State described in paragraph (5), with respect to such year, the State shall not be eligible to submit an application under subsection (a), and the Administrator, in consultation with the applicable State authority, shall from the amount calculated under paragraph (3) for such year, carry out the purpose described in paragraph (2) in such State for such year. (2) Specified use The amount described in paragraph (3), with respect to a State described in paragraph (5) for 2023, 2024, or 2025, shall be used to carry out the purpose described in section 1352(a)(1) in such State for such year, as applicable, by providing reinsurance payments to health insurance issuers with respect to attachment range claims (as defined in section 1354(b)(2), using the dollar amounts specified in subparagraph (B) of such section for such year) in an amount equal to, subject to paragraph (4), the percentage (specified for such year by the Secretary under such subparagraph) of the amount of such claims. (3) Amount described The amount described in this paragraph, with respect to 2023, 2024, or 2025, is the amount equal to the total sum of amounts that the Secretary would otherwise estimate under section 1354(b)(2)(A)(i) for such year for each State described in paragraph (5) for such year, as applicable, if each such State were not so described for such year. (4) Adjustment For purposes of this subsection, the Secretary may apply a percentage under paragraph (3) with respect to a year that is less than the percentage otherwise specified in section 1354(b)(2)(B) for such year, if the cost of paying the total eligible attachment range claims for States described in paragraph (5) for such year at such percentage otherwise specified would exceed the amount calculated under paragraph (3) for such year. (5) State described A State described in this paragraph, with respect to years 2023, 2024, and 2025, is a State that, as of January 1 of 2022, 2023, or 2024, respectively, was not expending amounts under the State plan (or waiver of such plan) for all individuals described in section 1902(a)(10)(A)(i)(VIII) during such year. 1354. Allocations (a) Appropriation In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $10,000,000,000 for 2023 and each subsequent year through 2025 to provide allocations for States under subsection (b) and payments under section 1353(b). (b) Allocations (1) Payment (A) In general From amounts appropriated under subsection (a) for a year, the Secretary shall, with respect to a State not described in section 1353(b) for such year and not later than the date specified under subparagraph (B) for such year, allocate for such State the amount determined for such State and year under paragraph (2). (B) Specified date For purposes of subparagraph (A), the date specified in this subparagraph is— (i) for 2023, the date that is 90 days after the date of the enactment of this part; and (ii) for 2024 or 2025, January 1 of the previous year. (C) Notifications of allocation amounts For 2024 and 2025, the Secretary shall notify each State of the amount determined for such State under paragraph (2) for such year by not later than January 1 of the previous year. (2) Allocation amount determinations (A) In general For purposes of paragraph (1), the amount determined under this paragraph for a year for a State described in paragraph (1)(A) for such year is the amount equal to— (i) the amount that the Secretary estimates would be expended under this part for such year on attachment range claims of individuals residing in such State if such State used such funds only for the purpose described in paragraph (1) of section 1352(a) at the dollar amounts and percentage specified under subparagraph (B) for such year; minus (ii) the amount, if any, by which the Secretary determines— (I) the estimated amount of premium tax credits under section 36B of the Internal Revenue Code of 1986 that would be attributable to individuals residing in such State for such year without application of this part; exceeds (II) the estimated amount of premium tax credits under section 36B of the Internal Revenue Code of 1986 that would be attributable to individuals residing in such State for such year if section 1353(b) applied for such year and applied with respect to such State for such year. For purposes of the previous sentence and section 1353(b)(3), the term attachment range claims means, with respect to an individual, the claims for such individual that exceed a dollar amount specified by the Secretary for a year, but do not exceed a ceiling dollar amount specified by the Secretary for such year, under subparagraph (B). (B) Specifications For purposes of subparagraph (A) and section 1353(b)(3), the Secretary shall determine the dollar amounts and the percentage to be specified under this subparagraph for a year in a manner to ensure that the total amount of expenditures under this part for such year is estimated to equal the total amount appropriated for such year under subsection (a) if such expenditures were used solely for the purpose described in paragraph (1) of section 1352(a) for attachment range claims at the dollar amounts and percentage so specified for such year. (3) Availability Funds allocated to a State under this subsection for a year shall remain available through the end of the subsequent year. . (b) Basic Health Program funding adjustments Section 1331 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18051 ) is amended— (1) in subsection (a), by adding at the end the following new paragraph: (3) Provision of information on qualified health plan premiums (A) In general For plan years beginning on or after January 1, 2023, the program described in paragraph (1) shall provide that a State may not establish a basic health program unless such State furnishes to the Secretary, with respect to each qualified health plan offered in such State during a year that receives any reinsurance payment from funds made available under part 6 for such year, the adjusted premium amount (as defined in subparagraph (B)) for each such plan and year. (B) Adjusted premium amount defined For purposes of subparagraph (A), the term adjusted premium amount means, with respect to a qualified health plan and a year, the monthly premium for such plan and year that would have applied had such plan not received any payments described in subparagraph (A) for such year. ; and (2) in subsection (d)(3)(A)(ii), by adding at the end the following new sentence: In making such determination, the Secretary shall calculate the value of such premium tax credits that would have been provided to such individuals enrolled through a basic health program established by a State during a year using the adjusted premium amounts (as defined in subsection (a)(3)(B)) for qualified health plans offered in such State during such year. . (c) Implementation authority The Secretary of Health and Human Services may implement the provisions of, and the amendments made by, this section by subregulatory guidance or otherwise. 30603. Funding for the provision of health insurance consumer information Section 2793(e) of the Public Health Service Act ( 42 U.S.C. 300gg–93(e) ) is amended by adding at the end the following new paragraph: (3) Funding for 2022 through 2025 In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $100,000,000 for 2022, to remain available until expended, of which $25,000,000 shall be used for each of 2022 through 2025 to carry out this section. . 30604. Requirements with respect to cost-sharing for insulin products (a) In general Part D of title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg–111 et seq. ) is amended by adding at the end the following: 2799A–11. Requirements with respect to cost-sharing for certain insulin products (a) In general For plan years beginning on or after January 1, 2023, a group health plan or health insurance issuer offering group or individual health insurance coverage shall provide coverage of selected insulin products, and with respect to such products, shall not— (1) apply any deductible; or (2) impose any cost-sharing in excess of the lesser of, per 30-day supply— (A) $35; or (B) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan or coverage, including price concessions received by or on behalf of third-party entities providing services to the plan or coverage, such as pharmacy benefit management services. (b) Definitions In this section: (1) Selected insulin products The term selected insulin products means at least one of each dosage form (such as vial, pump, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed) of insulin (as defined below), when available, as selected by the group health plan or health insurance issuer. (2) Insulin defined The term insulin means insulin that is licensed under subsection (a) or (k) of section 351 and continues to be marketed under such section, including any insulin product that has been deemed to be licensed under section 351(a) pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and continues to be marketed pursuant to such licensure. (c) Out-of-network providers Nothing in this section requires a plan or issuer that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan or issuer that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of-network provider. (d) Rule of construction Subsection (a) shall not be construed to require coverage of, or prevent a group health plan or health insurance coverage from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. (e) Application of cost-sharing towards deductibles and out-of-pocket maximums Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan or coverage. . (b) No effect on other cost-sharing Section 1302(d)(2) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18022(d)(2) ) is amended by adding at the end the following new subparagraph: (D) Special rule relating to insulin coverage The exemption of coverage of selected insulin products (as defined in section 2799A–11(b) of the Public Health Service Act) from the application of any deductible pursuant to section 2799A–11(a)(1) of such Act, section 726(a)(1) of the Employee Retirement Income Security Act of 1974, or section 9826(a)(1) of the Internal Revenue Code of 1986 shall not be considered when determining the actuarial value of a qualified health plan under this subsection. . (c) Coverage of certain insulin products under catastrophic plans Section 1302(e) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18022(e) ) is amended by adding at the end the following: (4) Coverage of certain insulin products (A) In general Notwithstanding paragraph (1)(B)(i), a health plan described in paragraph (1) shall provide coverage of selected insulin products, in accordance with section 2799A–11 of the Public Health Service Act, for a plan year before an enrolled individual has incurred cost-sharing expenses in an amount equal to the annual limitation in effect under subsection (c)(1) for the plan year. (B) Terminology For purposes of subparagraph (A)— (i) the term selected insulin products has the meaning given such term in section 2799A–11(b) of the Public Health Service Act; and (ii) the requirements of section 2799A–11 of such Act shall be applied by deeming each reference in such section to individual health insurance coverage to be a reference to a plan described in paragraph (1). . 30605. Cost-sharing reductions for individuals receiving unemployment compensation Section 1402(f) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18071(f) ) is amended— (1) in the header, by striking 2021 and inserting certain years ; (2) in the matter preceding paragraph (1), by striking 2021 and inserting any of years 2021 through 2022 ; and (3) in paragraph (2), by striking 133 percent and inserting 150 percent . 30606. Oversight of pharmacy benefit manager services (a) In general Title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg et seq. ), as amended by section 30604, is further amended— (1) in part D ( 42 U.S.C. 300gg–111 et seq. ), by adding at the end the following new section: 2799A–12. Oversight of pharmacy benefit manager services (a) In general For plan years beginning on or after January 1, 2023, a group health plan or health insurance issuer offering group health insurance coverage or an entity or subsidiary providing pharmacy benefits management services on behalf of such a plan or issuer shall not enter into a contract with a drug manufacturer, distributor, wholesaler, subcontractor, rebate aggregator, or any associated third party that limits the disclosure of information to plan sponsors in such a manner that prevents the plan or issuer, or an entity or subsidiary providing pharmacy benefits management services on behalf of a plan or issuer, from making the reports described in subsection (b). (b) Reports (1) In general For plan years beginning on or after January 1, 2023, not less frequently than once every 6 months, a health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan or an issuer providing group health insurance coverage shall submit to the plan sponsor (as defined in section 3(16)(B) of the Employee Retirement Income Security Act of 1974) of such group health plan or health insurance coverage a report in accordance with this subsection and make such report available to the plan sponsor in a machine-readable format. Each such report shall include, with respect to the applicable group health plan or health insurance coverage— (A) as applicable, information collected from drug manufacturers by such issuer or entity on the total amount of copayment assistance dollars paid, or copayment cards applied, that were funded by the drug manufacturer with respect to the participants and beneficiaries in such plan or coverage; (B) a list of each drug covered by such plan, issuer, or entity providing pharmacy benefit management services that was dispensed during the reporting period, including, with respect to each such drug during the reporting period— (i) the brand name, chemical entity, and National Drug Code; (ii) the number of participants and beneficiaries for whom the drug was filled during the plan year, the total number of prescription fills for the drug (including original prescriptions and refills), and the total number of dosage units of the drug dispensed across the plan year, including whether the dispensing channel was by retail, mail order, or specialty pharmacy; (iii) the wholesale acquisition cost, listed as cost per days supply and cost per pill, or in the case of a drug in another form, per dose; (iv) the total out-of-pocket spending by participants and beneficiaries on such drug, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for any drug for which gross spending of the group health plan or health insurance coverage exceeded $10,000 during the reporting period— (I) a list of all other drugs in the same therapeutic category or class, including brand name drugs and biological products and generic drugs or biosimilar biological products that are in the same therapeutic category or class as such drug; and (II) the rationale for preferred formulary placement of such drug in that therapeutic category or class; (C) a list of each therapeutic category or class of drugs that were dispensed under the health plan or health insurance coverage during the reporting period, and, with respect to each such therapeutic category or class of drugs, during the reporting period— (i) total gross spending by the plan, before manufacturer rebates, fees, or other manufacturer remuneration; (ii) the number of participants and beneficiaries who filled a prescription for a drug in that category or class; (iii) if applicable to that category or class, a description of the formulary tiers and utilization mechanisms (such as prior authorization or step therapy) employed for drugs in that category or class; (iv) the total out-of-pocket spending by participants and beneficiaries, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for each therapeutic category or class under which 3 or more drugs are included on the formulary of such plan or coverage— (I) the amount received, or expected to be received, from drug manufacturers in rebates, fees, alternative discounts, or other remuneration— (aa) to be paid by drug manufacturers for claims incurred during the reporting period; or (bb) that is related to utilization of drugs, in such therapeutic category or class; (II) the total net spending, after deducting rebates, price concessions, alternative discounts or other remuneration from drug manufacturers, by the health plan or health insurance coverage on that category or class of drugs; and (III) the net price per course of treatment or single fill, such as a 30-day supply or 90-day supply, incurred by the health plan or health insurance coverage and its participants and beneficiaries, after manufacturer rebates, fees, and other remuneration for drugs dispensed within such therapeutic category or class during the reporting period; (D) total gross spending on prescription drugs by the plan or coverage during the reporting period, before rebates and other manufacturer fees or remuneration; (E) total amount received, or expected to be received, by the health plan or health insurance coverage in drug manufacturer rebates, fees, alternative discounts, and all other remuneration received from the manufacturer or any third party, other than the plan sponsor, related to utilization of drug or drug spending under that health plan or health insurance coverage during the reporting period; (F) the total net spending on prescription drugs by the health plan or health insurance coverage during the reporting period; and (G) amounts paid directly or indirectly in rebates, fees, or any other type of remuneration to brokers, consultants, advisors, or any other individual or firm who referred the group health plan's or health insurance issuer's business to the pharmacy benefit manager. (2) Privacy requirements Health insurance issuers offering group health insurance coverage and entities providing pharmacy benefits management services on behalf of a group health plan shall provide information under paragraph (1) in a manner consistent with the privacy, security, and breach notification regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996, and shall restrict the use and disclosure of such information according to such privacy regulations. (3) Disclosure and redisclosure (A) Limitation to business associates A group health plan receiving a report under paragraph (1) may disclose such information only to business associates of such plan as defined in section 160.103 of title 45, Code of Federal Regulations (or successor regulations). (B) Clarification regarding public disclosure of information Nothing in this section prevents a health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan from placing reasonable restrictions on the public disclosure of the information contained in a report described in paragraph (1), except that such issuer or entity may not restrict disclosure of such report to the Department of Health and Human Services, the Department of Labor, or the Department of the Treasury. (C) Limited form of report The Secretary shall define through rulemaking a limited form of the report under paragraph (1) required of plan sponsors who are drug manufacturers, drug wholesalers, or other direct participants in the drug supply chain, in order to prevent anti-competitive behavior. (4) Report to GAO A health insurance issuer offering group health insurance coverage or an entity providing pharmacy benefits management services on behalf of a group health plan shall submit to the Comptroller General of the United States each of the first 4 reports submitted to a plan sponsor under paragraph (1) with respect to such coverage or plan, and other such reports as requested, in accordance with the privacy requirements under paragraph (2) and the disclosure and redisclosure standards under paragraph (3), and such other information that the Comptroller General determines necessary to carry out the study under section 30606(b) of An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14. (c) Enforcement (1) In general The Secretary, in consultation with the Secretary of Labor and the Secretary of the Treasury, shall enforce this section. (2) Failure to provide timely information A health insurance issuer or an entity providing pharmacy benefit management services that violates subsection (a) or fails to provide information required under subsection (b), or a drug manufacturer that fails to provide information under subsection (b)(1)(A) in a timely manner, shall be subject to a civil monetary penalty in the amount of $10,000 for each day during which such violation continues or such information is not disclosed or reported. (3) False information A health insurance issuer, entity providing pharmacy benefit management services, or drug manufacturer that knowingly provides false information under this section shall be subject to a civil money penalty in an amount not to exceed $100,000 for each item of false information. Such civil money penalty shall be in addition to other penalties as may be prescribed by law. (4) Procedure The provisions of section 1128A of the Social Security Act, other than subsection (a) and (b) and the first sentence of subsection (c)(1) of such section shall apply to civil monetary penalties under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A of the Social Security Act. (5) Waivers The Secretary may waive penalties under paragraph (2), or extend the period of time for compliance with a requirement of this section, for an entity in violation of this section that has made a good-faith effort to comply with this section. (d) Rule of construction Nothing in this section shall be construed to permit a health insurance issuer, group health plan, or other entity to restrict disclosure to, or otherwise limit the access of, the Department of Health and Human Services to a report described in subsection (b)(1) or information related to compliance with subsection (a) by such issuer, plan, or entity. (e) Definition In this section, the term wholesale acquisition cost has the meaning given such term in section 1847A(c)(6)(B) of the Social Security Act. ; and (2) in section 2723 ( 42 U.S.C. 300gg–22 )— (A) in subsection (a)— (i) in paragraph (1), by inserting (other than subsections (a) and (b) of section 2799A–12) after part D ; and (ii) in paragraph (2), by inserting (other than subsections (a) and (b) of section 2799A–12) after part D ; (B) in subsection (b)— (i) in paragraph (1), by inserting (other than subsections (a) and (b) of section 2799A–12) after part D ; (ii) in paragraph (2)(A), by inserting (other than subsections (a) and (b) of section 2799A–12) after part D ; and (iii) in paragraph (2)(C)(ii), by inserting (other than subsections (a) and (b) of section 2799A–12) after part D . (b) GAO study (1) In general Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall report to Congress on— (A) pharmacy networks of group health plans, health insurance issuers, and entities providing pharmacy benefit management services under such group health plan or group or individual health insurance coverage, including networks that have pharmacies that are under common ownership (in whole or part) with group health plans, health insurance issuers, or entities providing pharmacy benefit management services or pharmacy benefit administrative services under group health plan or group or individual health insurance coverage; (B) as it relates to pharmacy networks that include pharmacies under common ownership described in subparagraph (A)— (i) whether such networks are designed to encourage enrollees of a plan or coverage to use such pharmacies over other network pharmacies for specific services or drugs, and if so, the reasons the networks give for encouraging use of such pharmacies; and (ii) whether such pharmacies are used by enrollees disproportionately more in the aggregate or for specific services or drugs compared to other network pharmacies; (C) whether group health plans and health insurance issuers offering group or individual health insurance coverage have options to elect different network pricing arrangements in the marketplace with entities that provide pharmacy benefit management services, the prevalence of electing such different network pricing arrangements; (D) pharmacy network design parameters that encourage enrollees in the plan or coverage to fill prescriptions at mail order, specialty, or retail pharmacies that are wholly or partially-owned by that issuer or entity; and (E) the degree to which mail order, specialty, or retail pharmacies that dispense prescription drugs to an enrollee in a group health plan or health insurance coverage that are under common ownership (in whole or part) with group health plans, health insurance issuers, or entities providing pharmacy benefit management services or pharmacy benefit administrative services under group health plan or group or individual health insurance coverage receive reimbursement that is greater than the median price charged to the group health plan or health insurance issuer when the same drug is dispensed to enrollees in the plan or coverage by other pharmacies included in the pharmacy network of that plan, issuer, or entity that are not wholly or partially owned by the health insurance issuer or entity providing pharmacy benefit management services. (2) Requirement The Comptroller General of the United States shall ensure that the report under paragraph (1) does not contain information that would allow a reader to identify a specific plan or entity providing pharmacy benefits management services or otherwise contain commercial or financial information that is privileged or confidential. (3) Definitions In this subsection, the terms group health plan , health insurance coverage , and health insurance issuer have the meanings given such terms in section 2791 of the Public Health Service Act ( 42 U.S.C. 300gg–91 ). 30607. Funding to support State applications for section 1332 waivers and administration Section 1332 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18052 ) is amended by adding at the end the following: (f) Administration and planning grants (1) Appropriation In addition to any other amounts made available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for purposes of implementing the grant program under paragraph (2) and awarding grants under such paragraph. (2) Grants From the amount appropriated under paragraph (1), the Secretary of Health and Human Services shall award grants to States for purposes of developing a new waiver application, preparing an application for a waiver extension or amendment, or implementing a State plan under this section. The amount of a grant awarded to a State under this subsection shall remain available until expended. (3) Limitation Each grant awarded to a State under this subsection shall be in an amount not to exceed $5,000,000. . 30608. Adjustments to uncompensated care pools and disproportionate share hospital payments (a) Adjustments to uncompensated care pools Section 1903 of the Social Security Act ( 42 U.S.C. 1396b ) is amended by adding at the end the following new subsection: (cc) Excluding expenditures for expansion population from assistance under waivers relating to uncompensated care With respect to a State with a State plan (or waiver of such plan) that does not provide, with respect to a fiscal year (beginning with fiscal year 2023), to all individuals described in section 1902(a)(10)(A)(i)(VIII) benchmark coverage described in section 1937(b)(1) or benchmark equivalent coverage described in section 1937(b)(2), in the case of any experimental, pilot, or demonstration project undertaken under section 1115, with respect to such State and fiscal year, that provides for Federal financial participation with respect to expenditures for payments to providers for otherwise uncompensated care that is furnished to low-income individuals, uninsured individuals, or underinsured individuals, notwithstanding any waiver authority available under such section, such project shall exclude from Federal financial participation any expenditures for care that is furnished with respect to such fiscal year to individuals described in section 1902(a)(10)(A)(i)(VIII). . (b) Adjustments to disproportionate share hospital payments (1) In general Section 1923(f) of the Social Security Act (42 U.S.C.1396r–4(f)) is amended— (A) in paragraph (3)(A), by striking paragraphs (6), (7), and (8) and inserting paragraphs (6), (7), (8), and (10) ; (B) in paragraph (6)(A)(vi), by inserting (except paragraph (10)) before , any other provision of law ; (C) in paragraph (7)(A)(i), by inserting without regard to paragraph (10), before the Secretary ; and (D) by adding at the end the following new paragraph: (10) State DSH allotments for non-expansion States beginning with fiscal year 2023 (A) In general For fiscal year 2023 and each subsequent fiscal year— (i) in the case of a State with a State plan (or waiver of such plan) that, with respect to such fiscal year, does not provide to all individuals described in section 1902(a)(10)(A)(i)(VIII) benchmark coverage described in section 1937(b)(1) or benchmark equivalent coverage described in section 1937(b)(2), the Secretary shall reduce the DSH allotment to the State for such fiscal year in the amount equal to 12.5 percent of the DSH allotment that would (after the application of paragraph (6), and without the application of paragraphs (7), (8), or this paragraph) be determined under this subsection for the State for such fiscal year; (ii) in the case of a State with a State plan (or waiver of such plan) that, with respect to such fiscal year, initially provides to all individuals described in section 1902(a)(10)(A)(i)(VIII) benchmark coverage described in 1937(b)(1) or benchmark equivalent coverage described in section 1937(b)(2), but during such fiscal year stops providing to any such individual such benchmark or benchmark equivalent coverage, the Secretary shall reduce the DSH allotment to the State for such fiscal year in the amount equal to the product of— (I) 12.5 percent of the DSH allotment that would (after the application of paragraph (6), and without the application of paragraphs (7), (8), or this paragraph) be determined under this subsection for the State for such fiscal year; and (II) expressed as a percentage, the number of days of such fiscal year during which such State plan (or waiver of such plan), with respect to such fiscal year, did not provide to such individuals such benchmark or benchmark equivalent coverage; or (iii) in the case of a State with a State plan (or waiver of such plan) that, with respect to such fiscal year, either— (I) initially does not provide to all individuals described in section 1902(a)(10)(A)(i)(VIII) benchmark coverage described in 1937(b)(1) or benchmark equivalent coverage described in section 1937(b)(2), but during the fiscal year establishes a State plan (or waiver of such plan) that provides, for the remainder of the fiscal year, all such individuals such benchmark or benchmark equivalent coverage; or (II) did not provide to all such individuals such benchmark or benchmark equivalent coverage during the fiscal year preceding such fiscal year described in the matter preceding subclause (I), but on the first day of such fiscal year establishes a State plan (or waiver of such plan) that provides, for the entirety of such fiscal year, all such individuals such benchmark or benchmark equivalent coverage; the DSH allotment for such State for such fiscal year is equal to the DSH allotment under this subsection (without application of this paragraph) for the State for the entirety of such fiscal year. (B) Calculation of DSH allotments after expansion period The DSH allotment for a State for fiscal years after which a State provides under a State plan (or waiver of such plan) to all individuals described in section 1902(a)(10)(A)(i)(VIII) benchmark coverage described in section 1937(b)(1) or benchmark equivalent coverage described in section 1937(b)(2) and, for which the State continues to provide under the State plan (or waiver of such plan) such benchmark or benchmark equivalent coverage to such individuals, without the providing of such benchmark or benchmark equivalent coverage being stopped during a fiscal year (as described in the matter preceding subclause (I) of subparagraph (A)(ii)), shall be calculated under paragraph (3) without regard to this paragraph. . (2) Technical amendment Section 1923(f)(7)(A)(i)(II) of the Social Security Act (42 U.S.C.1396r–4(f)(7)(A)(i)(II)) is amended by adding at period at the end. 30609. Further increase in FMAP for Medical Assistance for Newly Eligible Mandatory Individuals Section 1905(y)(1) of the Social Security Act ( 42 U.S.C. 1396d(y)(1) ) is amended— (1) in subparagraph (D), by striking at the end and ; (2) in subparagraph (E), by striking 2020 and each year thereafter. and inserting 2020, 2021, and 2022; and ; and (3) by adding at the end the following new subparagraphs: (F) 93 percent for calendar quarters in 2023, 2024, and 2025; and (G) 90 percent for calendar quarters in 2026 and each year thereafter. . F Medicaid 1 Investments in Home and Community-Based Services and Long-Term Care Quality and Workforce 30711. HCBS improvement planning grants (a) Funding (1) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $130,000,000, to remain available until expended, for carrying out this section. (2) Technical assistance and guidance In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until expended, for purposes of issuing guidance and providing technical assistance to States intending to apply for, or which are awarded, a planning grant under this section, and for other administrative expenses related to awarding planning grants under this section. (b) Award and use of grants (1) Deadline for award of grants From the amount appropriated under subsection (a)(1), the Secretary, not later than 12 months after the date of enactment of this Act, shall solicit State requests for HCBS improvement planning grants and award such grants to all States that meet such requirements as determined by the Secretary. (2) Use of funds Subject to paragraph (3), a State awarded a planning grant under this section shall use the grant to carry out planning activities for purposes of developing and submitting to the Secretary an HCBS improvement plan for the State that meets the requirements of subsections (c) and (d). A State may use planning grant funds to support activities related to the implementation of the HCBS improvement plan for the State, collect and report information described in subsection (c), identify areas for improvement to the service delivery systems for home and community-based services, carry out activities related to evaluating payment rates for home and community-based services and identifying improvements to update the rate setting process, and make related infrastructure investments (such as case management or other information technology systems). (3) Limitation on use of funds None of the funds awarded to a State under this section may be used by a State as the source of the non-Federal share of expenditures under the State plan (or waiver of such plan). (c) HCBS improvement plan requirements In order to meet the requirements of this subsection, an HCBS improvement plan developed using funds awarded to a State under this section shall include, with respect to the State and subject to subsection (d), the following: (1) Existing Medicaid HCBS landscape (A) Eligibility and benefits A description of the existing standards, pathways, and methodologies for eligibility for home and community-based services pursuant to the State plan (or waiver of such plan), including limits on assets and income, the home and community-based services available under the State Medicaid program and the types of settings in which they may be provided, and utilization management standards for such services. (B) Access (i) Barriers A description of the barriers to accessing home and community-based services in the State identified by Medicaid eligible individuals, the families of such individuals, and direct care workers and home care agencies, or other similar organizations. (ii) Availability; unmet need A summary, in accordance with guidance issued by the Secretary and as able to be practicably determined by the State, of the extent to which home and community-based services are available to all individuals in the State who would be eligible for such services under the State Medicaid program (including individuals who are on a waiting list for such services). (C) Utilization An assessment of the utilization of home and community-based services in the State (including the number of individuals receiving such services) during such period specified by the Secretary. (D) Service delivery structures and supports A description of the service delivery structures for providing home and community-based services in the State. (E) Workforce A description of the direct care workforce, including estimates of the number of full- and part-time direct care workers, the average and range of direct care worker wages, the benefits provided to direct care workers, and the turnover and vacancy rates of direct care worker positions. (F) Payment rates (i) In general A description of the payment rates for home and community-based services, including, to the extent applicable, how payments for such services are factored into the development of managed care capitation rates, when the State last updated payment rates for home and community-based services, and an estimate of the portion of the payment rate that goes toward direct care worker compensation. (ii) Assessment An assessment of the relationship between payment rates for such services and workforce shortages, average beneficiary wait times for such services, and provider-to-beneficiary ratios in the geographic region. (G) Quality A description of how the quality of home and community-based services is measured and monitored. (H) Long-term services and supports provided in institutional settings A description of the number of individuals enrolled in the State Medicaid program in a year who receive items and services furnished by an institution for greater than 30 days in an institutional setting. (I) HCBS share of overall Medicaid LTSS spending For the most recent State fiscal year for which complete data is available, the percentage of expenditures made by the State under the State Medicaid program for long-term services and supports that are for home and community-based services. (J) Demographic data To the extent available and as applicable with respect to the information required under subparagraphs (B), (C), and (H), demographic data for such information, disaggregated by age groups, primary disability, income brackets, gender, race, ethnicity, geography, primary language, and type of service setting. (2) Goals for HCBS improvements A description of how the State will do the following: (A) Conduct the activities required under subsection (jj) of section 1905 of the Social Security Act (as added under section 30712). (B) Reduce barriers to and disparities in access or utilization of home and community-based services in the State. (C) Monitor and report on access to home and community-based services under the State Medicaid program, disparities in access to such services, and the utilization of such services. (D) Monitor and report the amount of State Medicaid expenditures for home and community-based services under the State Medicaid program as a proportion of the total amount of State expenditures under the State Medicaid program for long-term services and supports. (E) Monitor and report on wages, benefits, and vacancy and turnover rates for direct care workers. (F) Assess and monitor the sufficiency of payment rates under the State Medicaid program, in a manner specified by the Secretary, for the specific types of home and community-based services available under such program for purposes of supporting direct care worker recruitment and retention and ensuring the availability of home and community-based services. (G) Coordinate implementation of the HCBS improvement plan among the State Medicaid agency and State health and human services agencies serving individuals with disabilities and the elderly. (d) Development and approval requirements (1) Development requirements In order to meet the requirements of this subsection, a State awarded a planning grant under this section shall develop an HCBS improvement plan for the State through a public notice and comment process that includes consultation with Medicaid eligible individuals who are recipients of home and community-based services, family caregivers of such recipients, providers, health plans, direct care workers, chosen representatives of direct care workers, and aging, disability, and workforce advocates. (2) Authority to adjust certain plan content requirements The Secretary may modify the requirements for any of the information specified in subsection (c)(1) if a State requests a modification and demonstrates to the satisfaction of the Secretary that it is impracticable for the State to collect and submit the information. (3) Submission and approval Not later than 24 months after the date on which a State is awarded a planning grant under this section, the State shall submit an HCBS improvement plan for approval by the Secretary, along with assurances by the State that the State will implement the plan in accordance with the requirements of the HCBS Improvement Program established under subsection (jj) of section 1905 of the Social Security Act ( 42 U.S.C. 1396d ) (as added by section 30712). The Secretary shall approve and make publicly available the HCBS improvement plan for a State after the plan and such assurances are submitted to the Secretary for approval and the Secretary determines the plan meets the requirements of subsection (c). A State may amend its HCBS improvement plan, subject to the approval of the Secretary that the plan as so amended meets the requirements of subsection (c). The Secretary may withhold or recoup funds provided under this section to a State, if the State fails to comply with the requirements of this section. (e) Definitions In the part: (1) Direct care worker The term direct care worker means, with respect to a State, any of the following individuals who are paid to provide directly to Medicaid eligible individuals home and community-based services available under the State Medicaid program: (A) A registered nurse, licensed practical nurse, nurse practitioner, or clinical nurse specialist, or a licensed nursing assistant who provides such services under the supervision of a registered nurse, licensed practical nurse, nurse practitioner, or clinical nurse specialist. (B) A direct support professional. (C) A personal care attendant. (D) A home health aide. (E) Any other paid health care professional or worker determined to be appropriate by the State and approved by the Secretary. (2) HCBS program improvement State The term HCBS program improvement State means a State that is awarded a planning grant under subsection (b) and has an HCBS improvement plan approved by the Secretary under subsection (d)(3). (3) Health plan The term health plan means any of the following entities that provide or arrange for home and community-based services for Medicaid eligible individuals who are enrolled with the entities under a contract with a State: (A) A medicaid managed care organization, as defined in section 1903(m)(1)(A) of the Social Security Act ( 42 U.S.C. 1396b(m)(1)(A) ). (B) A prepaid inpatient health plan or prepaid ambulatory health plan, as defined in section 438.2 of title 42, Code of Federal Regulations (or any successor regulation). (4) Home and community-based services The term home and community-based services means any of the following (whether provided on a fee-for-service, risk, or other basis): (A) Home health care services authorized under paragraph (7) of section 1905(a) of the Social Security Act ( 42 U.S.C. 1396d(a) ). (B) Private duty nursing services authorized under paragraph (8) of such section, when such services are provided in a Medicaid eligible individual’s home. (C) Personal care services authorized under paragraph (24) of such section. (D) PACE services authorized under paragraph (26) of such section. (E) Home and community-based services authorized under subsections (b), (c), (i), (j), and (k) of section 1915 of such Act ( 42 U.S.C. 1396n ), authorized under a waiver under section 1115 of such Act ( 42 U.S.C. 1315 ), or provided through coverage authorized under section 1937 of such Act ( 42 U.S.C. 1396u–7 ). (F) Case management services authorized under section 1905(a)(19) of the Social Security Act ( 42 U.S.C. 1396d(a)(19) ) and section 1915(g) of such Act ( 42 U.S.C. 1396n(g) ). (G) Rehabilitative services, including those related to behavioral health, described in section 1905(a)(13) of such Act ( 42 U.S.C. 1396d(a)(13) ). (H) Such other services specified by the Secretary. (5) Institutional setting The term institutional setting means— (A) a skilled nursing facility (as defined in section 1819(a) of the Social Security Act ( 42 U.S.C. 1395i–3(a) )); (B) a nursing facility (as defined in section 1919(a) of such Act ( 42 U.S.C. 1396r(a) )); (C) a long-term care hospital (as described in section 1886(d)(1)(B)(iv) of such Act ( 42 U.S.C. 1395ww(d)(1)(B)(iv) )); (D) a facility described in section 1905(d) of such Act ( 42 U.S.C. 1396d(d) )); (E) an institution which is a psychiatric hospital (as defined in section 1861(f) of such Act ( 42 U.S.C. 1395x(f) )) or that provides inpatient psychiatric services in a residential setting specified by the Secretary; and (F) an institution described in section 1905(i) of such Act ( 42 U.S.C. 1396d(i) ). (6) Medicaid eligible individual The term Medicaid eligible individual means an individual who is eligible for and receiving medical assistance under a State Medicaid plan or a waiver of such plan. Such term includes an individual who is on a waiting list and who would become eligible for medical assistance and enrolled under a State Medicaid plan, or waiver of such plan, upon receipt of home and community-based services. (7) State Medicaid program The term State Medicaid program means, with respect to a State, the State program under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) (including any waiver or demonstration under such title or under section 1115 of such Act ( 42 U.S.C. 1315 ) relating to such title). (8) Secretary The term Secretary means the Secretary of Health and Human Services. (9) State The term State means each of the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. 30712. HCBS Improvement Program (a) Increased FMAP for HCBS program improvement States Section 1905 of the Social Security Act ( 42 U.S.C. 1396d ) is amended— (1) in subsection (b), by striking and (ii) and inserting (ii), and (jj) ; and (2) by adding at the end the following new subsection: (jj) Additional support for HCBS program improvement States (1) In general (A) Additional support Subject to paragraph (5), in the case of a State that is an HCBS program improvement State, for each fiscal quarter that begins on or after the first date on which the State is an HCBS program improvement State— (i) and for which the State meets the requirements described in paragraphs (2) and (4), notwithstanding subsection (b) or (ff), subject to subparagraph (B), with respect to amounts expended during the quarter by such State for medical assistance for home and community-based services, the Federal medical assistance percentage for such State and quarter (as determined for the State under subsection (b) and, if applicable, increased under subsection (y), (z), (aa), or (ii), section 6008(a) of the Families First Coronavirus Response Act), or section 1915(k)(2) shall be increased by 6 percentage points; and (ii) with respect to the State meeting the requirements described in paragraphs (2) and (4) and with respect to amounts expended during the quarter and before October 1, 2031, for administrative costs for expanding and enhancing home and community-based services, including for enhancing Medicaid data and technology infrastructure, modifying rate setting processes, adopting or improving training programs for direct care workers and family caregivers, home and community-based services ombudsman office activities (as reimbursable under section 1903(a)(7)), developing processes to identify direct care workers and assign such workers unique identifiers (as so reimbursable), and adopting, carrying out, or enhancing programs that register direct care workers or connect beneficiaries to direct care workers, the per centum specified in sections 1903(a)(7) and 1903(a)(3) shall be increased to 80 percent. In no case may the application of clause (i) result in the Federal medical assistance percentage determined for a State being more than 95 percent with respect to such expenditures. In no case shall the application of clause (ii) result in a reduction to the per centum otherwise specified without application of such clause. Any increase pursuant to clause (ii) shall be available to a State before the State meets the requirements of paragraphs (2) and (4). (B) Additional HCBS improvement efforts Subject to paragraph (5), in addition to the increase to the Federal medical assistance percentage under subparagraph (A)(i) for amounts expended during a quarter for medical assistance for home and community-based services by an HCBS program improvement State that meets the requirements of paragraphs (2) and (4) for the quarter, the Federal medical assistance percentage for amounts expended by the State during the quarter for medical assistance for home and community-based services shall be further increased by 2 percentage points (but not to exceed 95 percent) during the first 6 fiscal quarters throughout which the State has implemented and has in effect a program that meets the requirements of paragraph (3). (C) Nonapplication of territorial funding caps Any payment made to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa for expenditures that are subject to an increase in the Federal medical assistance percentage under subparagraph (A)(i) or (B), or an increase in an applicable Federal matching percentage under subparagraph (A)(ii), shall not be taken into account for purposes of applying payment limits under subsections (f) and (g) of section 1108. (D) Nonapplication to CHIP EFMAP Any increase described in subparagraph (A) (or payment made for expenditures on medical assistance that are subject to such increase) shall not be taken into account in calculating the enhanced FMAP of a State under section 2105. (2) Requirements Subject to the last sentence of paragraph (1)(A), as conditions for receipt of the increase under paragraph (1) to the Federal medical assistance percentage determined for a State, with respect to a fiscal year quarter, the State shall meet each of the following requirements: (A) Nonsupplantation The State uses the Federal funds attributable to the increase in the Federal medical assistance percentage for amounts expended during a quarter for medical assistance for home and community-based services under paragraph (1)(A) and paragraph (1)(B) (if applicable) to supplement, and not supplant, the level of State funds expended for home and community-based services for eligible individuals through programs in effect as of the date the State is awarded a planning grant under section 30711 of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 . In applying this subparagraph, the Secretary shall provide that a State shall have a 3-year period, as specified by the Secretary, to spend any accumulated unspent State funds attributable to the increase described in clause (i) in the Federal medical assistance percentage. (B) Maintenance of effort (i) In general The State does not— (I) reduce the amount, duration, or scope of home and community-based services available under the State plan (or waiver of such plan) relative to the home and community-based services available under the plan or a waiver of such plan as of the date on which the State was awarded a planning grant under section 30711 of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ; (II) reduce payment rates for home and community-based services lower than such rates that were in place as of the date described in subclause (I), including, to the extent applicable, assumed payment rates for such services that are included in managed care capitation rates as such rates are being prospectively built; or (III) except to the extent permitted under clause (ii), adopt more restrictive standards, methodologies, or procedures for determining eligibility for or the scope of medical assistance of home and community-based services, including with respect to cost-sharing, than the standards, methodologies, or procedures applicable as of the date described in subclause (I). (ii) Conditions for flexibility A State may make modifications that would otherwise violate the maintenance of effort described in clause (i) if the State demonstrates to the satisfaction of the Secretary that such modifications shall not result in— (I) home and community-based services that are less comprehensive or lower in amount, duration, or scope; (II) fewer individuals (overall and within particular eligibility groups) receiving home and community-based services, the calculation of which may be adjusted for demographic changes since the date described in clause (i)(I); or (III) increased cost-sharing (other than resulting from the rate of inflation) for home and community-based services. (C) Access to services Not later than an implementation date as specified by the Secretary (which may vary for each of the following clauses) after the first day of the first fiscal quarter for which a State receives an increase to the Federal medical assistance percentage or other applicable Federal matching percentage under paragraph (1), the State does all of the following to improve access to services: (i) Reduce access barriers and disparities in access or utilization of home and community-based services, as described in the State HCBS improvement plan. (ii) Provides coverage of personal care services authorized under subsection (a)(24) for all individuals eligible for and enrolled in medical assistance in the State. (iii) Provides for navigation of home and community-based services through no wrong door programs, provides expedited eligibility for home and community-based services, and improves home and community-based services counseling and education programs. (iv) Expands access to behavioral health services furnished in home and community-based settings. (v) Improves coordination of home and community-based services with employment, housing, and transportation supports. (vi) Provides supports to family caregivers. (vii) Newly provides coverage under, or expands existing eligibility criteria for, 1 or more of the eligibility categories authorized under subclause (XIII), (XV), or (XVI) of section 1902(a)(10)(A)(ii). (D) Workforce (i) In general The State strengthens and expands the direct care workforce that provides home and community-based services by— (I) adopting processes to ensure that payment rates for home and community-based services are sufficient (as defined by the Secretary) to ensure that care and services are available to the extent described in the State HCBS improvement plan; and (II) updating qualification standards as appropriate, and developing and adopting training opportunities for direct care workers and family caregivers, at such times as the Secretary shall prescribe. (ii) Payment rates In carrying out clause (i)(I), the State shall— (I) update and, as appropriate, increase payment rates for home and community-based services to support recruitment and retention of the direct care workforce by not later than 2 years after approval of the HCBS improvement plan and, at least every 3 years thereafter, using, through existing or other processes to determine provider payment, a transparent process involving meaningful input from nongovernmental stakeholders; and (II) ensure that increases in the payment rates for home and community-based services— (aa) at a minimum, result in a proportionate increase to payments for direct care workers and in a manner that is determined with input from the stakeholders described in subclause (I); and (bb) are incorporated into provider payment rates for home and community-based services provided under this title by a health plan, under a contract and paid through capitation rates with the State. (3) Self-directed models for the delivery of services As conditions for receipt of the increase under paragraph (1)(B) to the Federal medical assistance percentage determined for a State, with respect to a fiscal year quarter, the State shall establish directly, or by contract with 1 or more entities, including an agency with choice or a similar service delivery model, a program for the performance of all of the following functions to facilitate beneficiary use of self-directed care in the case the State covers home and community-based services under authorities that permit self-direction: (A) Registering qualified direct care workers and assisting beneficiaries in finding direct care workers. (B) Undertaking activities to recruit and train independent providers to enable beneficiaries to direct their own care, including by providing or coordinating training for beneficiaries on self-directed care. (C) Ensuring the safety of, and supporting the quality of, care provided to beneficiaries. (D) Facilitating coordination between State and local agencies and direct care workers for matters of public health, training opportunities, changes in program requirements, workplace health and safety, or related matters. (E) Supporting beneficiary hiring, if selected by the beneficiary, of independent providers of home and community-based services, including by processing applicable tax information, collecting and processing timesheets, submitting claims and processing payments to such providers. (F) To the extent a State permits beneficiaries to hire a family member or individual with whom they have an existing relationship to provide home and community-based services, providing support to beneficiaries who wish to hire a caregiver who is a family member or individual with whom they have an existing relationship. (G) Ensuring that the program under this paragraph does not promote or deter the ability of workers to form a labor organization or discriminate against workers who may join or decline to join such an organization. (4) Reporting and oversight As conditions for receipt of the increase under paragraph (1) to the Federal medical assistance percentage determined for a State, with respect to a fiscal year quarter, the State shall meet each of the following requirements: (A) The State designates (by a date specified by the Secretary) an HCBS ombudsman office (or a long-term care ombudsman program office) that— (i) operates independently from the State Medicaid agency and health plans; (ii) provides direct assistance to recipients of home and community-based services available under the State Medicaid program and their families; and (iii) identifies and reports systemic problems to State officials, the public, and the Secretary. (B) Beginning with the last day of the 5th fiscal quarter for which the state is an HCBS program improvement State, and annually thereafter, the State reports to the Secretary, in a manner the Secretary shall prescribe, on the progress of implementation of the activities described in subparagraphs (C) and (D) of paragraph (2), paragraph (3) (if applicable), the use of enhanced Federal funding provided under this subsection, and progress with respect to home and community-based services availability, utilization, disparities in access and use of services, spending on HCBS, and the status of the direct care workforce. (5) Benchmarks for demonstrating improvements An HCBS program improvement State shall cease to be eligible for an increase in the Federal medical assistance percentage under paragraph (1)(A)(i) or (1)(B) or an increase in an applicable Federal matching percentage under paragraph (1)(A)(ii) on or after the first date on which a State is an HCBS program improvement State if the State is found to be out of compliance with the requirements of this subsection and unless, at the end of the 29th fiscal quarter, the State demonstrates the following in the annual report required in paragraph (4) for such quarter: (A) Increased availability (above a marginal increase) of home and community-based services in the State relative to such availability as reported in the State HCBS improvement plan and adjusted for demographic changes in the State since the submission of such plan. (B) With respect to the percentage of expenditures made by the State for long-term services and supports that are for home and community-based services, in the case of an HCBS program improvement State for which such percentage (as reported in the State HCBS improvement plan) was— (i) less than 50 percent, the State demonstrates that the percentage of such expenditures has increased to at least 50 percent since the plan was approved; and (ii) at least 50 percent, the State demonstrates that such percentage has not decreased since the plan was approved. (6) Definitions In this subsection, the terms State Medicaid plan , direct care worker , HCBS program improvement State , health plan ; and home and community-based services have the meaning given those terms in section 30711(e) of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 . . 30713. Funding for Federal activities related to Medicaid HCBS In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until expended, to carry out section 30712 (including the amendments made by such section), including by issuing necessary guidance and technical assistance to States, conducting program integrity and oversight efforts, and preparing and submitting to the Committee on Energy and Commerce of the House of Representatives and the Committee on Finance of the Senate, beginning 5 years after the date of the enactment of this Act and every three years thereafter, a report describing the progress of the HCBS planning and improvement activities undertaken by States as applicable and as described in sections 30711 and 30712 (including the amendments made by such sections), and describing the impact of such activities on access to care, including with respect to disparities in access and utilization, and the direct care workforce. 30714. Funding for HCBS quality measurement and improvement (a) Increased Federal matching rate for adoption and reporting of HCBS quality measures (1) In general Section 1903(a)(3) of the Social Security Act ( 42 U.S.C. 1396b(a)(3) ) is amended— (A) in subparagraph (F)(ii), by striking plus after the semicolon and inserting and ; and (B) by inserting after subparagraph (F), the following: (G) 80 percent of so much of the sums expended during such quarter as are attributable to the reporting of information regarding the quality of home and community-based services in accordance with sections 1139A(a)(4)(B)(ii) and 1139B(b)(3)(C); and . (2) Exemption from territories’ payment limits Section 1108(g)(4) of the Social Security Act is amended by adding at the end the following new subparagraph: (C) Additional exemption relating to HCBS quality reporting Payments under section 1903(a)(3)(G) shall not be taken into account in applying payment limits under subsections (f) and (g) of this subsection. . (b) HCBS quality measures for increase Title XI of the Social Security Act (42 U.S.C. 1301 through 1320e–3) is amended— (1) in section 1139A— (A) in subsection (a)(4)(B)— (i) by striking Beginning with the annual State report on fiscal year 2024 and inserting the following: (i) In general Subject to clause (ii), beginning with the annual State report on fiscal year 2024 ; and (ii) by adding at the end the following new clause: (ii) Reporting HCBS quality measures With respect to reporting on information regarding the quality of home and community-based services provided to children under title XIX or title XXI, beginning with the annual State report required under subsection (c)(1) for the first fiscal year that begins on or after the date that is 2 years after the date that the Secretary publishes the home and community-based services quality measures developed under subsection (b)(5)(B) the Secretary shall require States to report such information using the standardized format for reporting information and procedures developed under subparagraph (A) and using all such home and community-based quality measures developed under subsection (b)(5) (including any updates or changes to such measures). ; and (B) in subsection (b)(5)— (i) by striking Beginning no later than January 1, 2013 and inserting the following: (A) In general Beginning no later than January 1, 2013 ; and (ii) by adding at the end the following new subparagraph: (B) HCBS quality measures Beginning with the first year that begins on the date that is 2 years after the date of enactment of this subparagraph (or, in the case of measures that require development and testing prior to availability, not later than 4 years after the date of enactment of this subparagraph), the requirements of subparagraph (A) shall apply, and the core measures described in subsection (a) (and any updates or changes to such measures) shall include home and community-based services quality measures developed by the Secretary. The Secretary shall ensure that such measures reflect the full array of home and community-based services, and consult with nongovernmental stakeholders with expertise in home and community-based services (including recipients and providers of such services). ; (C) in subsection (b)(6)— (i) by inserting or support services before that is capable of ; (ii) by striking and ambulatory health care settings and inserting , ambulatory health care, and home and community-based settings ; and (iii) by inserting and home and community-based before care system ; and (D) in subsection (c)(1), in the matter preceding subparagraph (A), by inserting , subject to subsection (a)(4)(B)(ii), before annually report ; and (2) in section 1139B— (A) in subsection (b)— (i) in paragraph (3), by adding at the end the following new subparagraph: (C) Mandatory reporting with respect to HCBS quality measures Beginning with the State report required under subsection (d)(1) for the first year that begins on or after the date that is 2 years after the date that the Secretary publishes the home and community-based quality measures developed under paragraph (5)(D), the Secretary shall require States to report information, using the standardized format for reporting information and procedures developed under subparagraph (A), regarding the quality of home and community-based services for Medicaid eligible adults using all of the home and community-based services quality measures included in the core set of adult health quality measures under paragraph (5)(D), and any updates or changes to such measures. ; and (ii) in paragraph (5), by adding at the end the following new subparagraph: (D) HCBS quality measures (i) Funding In addition to amounts otherwise available, there is appropriated to the Secretary, for fiscal year 2022, to be available until expended, out of any money in the Treasury not otherwise appropriated, $22,000,000, for carrying out this subparagraph. (ii) Inclusion of HCBS quality measures Beginning with respect to State reports required under subsection (d)(1) for the first year that begins on or after the date that is 2 years after the date of enactment of this subparagraph (or, in the case of measures that require development and testing prior to availability, not later than 4 years after the date of enactment of this subparagraph) the core set of adult health quality measures maintained under this paragraph (and any updates or changes to such measures) shall include home and community-based services quality measures developed in accordance with this subparagraph. (iii) Requirements (I) In general In developing, reviewing and updating the home and community-based services quality measures included in the core set of adult health quality measures maintained under this paragraph, the Secretary shall consult with nongovernmental stakeholders with expertise in home and community-based services (including recipients and providers of such services) and ensure such measures reflect the full array of home and community-based services and recipients of such services. (II) Definition For purposes of this section and section 1139A, the term home and community-based services has the meaning given such term in section 30711(e) of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 . ; and (B) in subsection (d)(1)(A), by striking ; and and inserting and, beginning with the report for the first year that begins after the date that is 2 years after the Secretary publishes the home and community-based quality measures developed under subsection (b)(5)(D), all home and community-based services quality measures included in the core set of adult health quality measures maintained under subsection (b)(5) and any updates or changes to such measures; and . 30715. Permanent extension of Medicaid protections against spousal impoverishment for recipients of home and community-based services (a) In general Section 1924(h)(1)(A) of the Social Security Act ( 42 U.S.C. 1396r–5(h)(1)(A) ) is amended by striking (at the option of the State) is described in section 1902(a)(10)(A)(ii)(VI) and inserting the following: is eligible for medical assistance for home and community-based services provided under subsection (c), (d), or (i) of section 1915 or under a waiver approved under section 1115, or who is eligible for such medical assistance by reason of being determined eligible under section 1902(a)(10)(C) or by reason of section 1902(f) or otherwise on the basis of a reduction of income based on costs incurred for medical or other remedial care, or who is eligible for medical assistance for home and community-based attendant services and supports under section 1915(k) . (b) Conforming amendment Section 2404 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 1396r–5 note) is amended by striking September 30, 2023 and inserting the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 . 30716. Permanent extension of Money Follows the Person Rebalancing demonstration (a) In general Subsection (h) of section 6071 of the Deficit Reduction Act of 2005 ( 42 U.S.C. 1396a note) is amended— (1) in paragraph (1)— (A) in subparagraph (I), by inserting and after the semicolon; (B) by amending subparagraph (J) to read as follows: (J) $450,000,000 for each fiscal year after fiscal year 2022. ; (C) by striking subparagraph (K); (2) in paragraph (2), by striking September 30, 2023 and inserting September 30 of the subsequent fiscal year ; and (3) by adding at the end the following new paragraph: (3) Technical assistance In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022 and for each subsequent 3-year period, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until expended, for carrying out subsections (f), (g), and (i). . (b) Redistribution of unexpended grant awards Subsection (e)(2) of section 6071 of the Deficit Reduction Act of 2005 ( 42 U.S.C. 1396a note) is amended by adding at the end the following new sentence: Any portion of a State grant award for a fiscal year under this section that is unexpended by the State at the end of the fourth succeeding fiscal year shall be rescinded by the Secretary and added to the appropriation for the fifth succeeding fiscal year. . 30717. Funding to improve the accuracy and reliability of certain skilled nursing facility data Section 1888 of the Social Security Act ( 42 U.S.C. 1395yy ) is amended— (1) in subsection (h)(12)— (A) in subparagraph (A), by striking and the data submitted under subsection (e)(6) a process to validate such measures and data and inserting , the data submitted under subsection (e)(6), and, during the period beginning with fiscal year 2024 and ending with fiscal year 2031, the resident assessment data described in section 1819(b)(3) and the direct care staffing information described in section 1128I(g) a process to validate such measures, data, and information ; and (B) in subparagraph (B)— (i) by striking Funding.— For purposes and inserting Funding.— (i) Fiscal years 2023 through 2025 For purposes ; and (ii) by adding at the end the following new clause: (ii) Additional funding There is appropriated to the Secretary, out of any monies in the Treasury not otherwise appropriated, $50,000,000 for fiscal year 2022, to remain available through fiscal year 2031, for purposes of carrying out this paragraph. ; and (2) in subsection (e)(6)(A)— (A) in the header, by striking for failure to report ; and (B) in clause (i)— (i) by striking For fiscal years beginning with fiscal year 2018, in the case of a skilled nursing facility that does not submit and inserting the following: (I) Failure to report For fiscal years beginning with fiscal year 2018, in the case of a skilled nursing facility that does not submit quality measure data specified by the Secretary and ; and (ii) by adding at the end the following new subclause: (II) Reporting of inaccurate information For fiscal years during the period beginning with fiscal year 2026 and ending with fiscal year 2031, in the case of a skilled nursing facility that submits data under this paragraph, measures under subsection (h), resident assessment data described in section 1819(b)(3), or direct care staffing information described in section 1128I(g) with respect to such fiscal year that is inaccurate (as determined by the Secretary through the validation process described in section 1888(h)(12) or otherwise), after determining the percentage described in paragraph (5)(B)(i), and after application of clauses (ii) and (iii) of paragraph (5)(B) and of subclause (I) of this clause (if applicable), the Secretary shall reduce such percentage for payment rates during such fiscal year by 2 percentage points. . 30718. Ensuring accurate information on cost reports Section 1888(f) of the Social Security Act ( 42 U.S.C. 1395yy(f) ) is amended by adding at the end the following new paragraph: (5) Audit of cost reports There is appropriated to the Secretary, out of any monies in the Treasury not otherwise appropriated, $250,000,000 for fiscal year 2022, to remain available through fiscal year 2031, for purposes of conducting an annual audit (beginning with 2023 and ending with 2031) of cost reports submitted under this title for a representative sample of skilled nursing facilities. . 30719. Survey improvements Section 1819 of the Social Security Act ( 42 U.S.C. 1395i–3 ) is amended by adding at the end the following new subsection: (l) Survey improvements (1) In general There is appropriated to the Secretary, out of any monies in the Treasury not otherwise appropriated, $325,000,000 for fiscal year 2022, to remain available through fiscal year 2031, for purposes of— (A) conducting reviews and identifying plans under paragraph (2); and (B) providing training, tools, technical assistance, and financial support in accordance with paragraph (3). (2) Review The Secretary shall conduct reviews, during the period specified in paragraph (1), of (and, as appropriate, identify plans to improve) the following: (A) The extent to which surveys conducted under subsection (g) and the enforcement process under subsection (h) result in increased compliance with requirements under this section and subpart B of part 483 of title 42, Code of Federal Regulations, with respect to skilled nursing facilities (in this subsection referred to as facilities ). (B) The timeliness and thoroughness of State agency verification of deficiency corrections at facilities. (C) The accuracy of the identification and appropriateness of the scope and severity of deficiencies cited at facilities. (D) The accuracy of the identification and appropriateness of the scoping and severity of life safety, infection control, and emergency preparedness deficiencies cited at facilities. (E) The timeliness of State agency investigations of— (i) complaints at facilities; (ii) facility-reported incidents at facilities; and (iii) reported allegations of abuse, neglect, and exploitation at facilities. (F) The consistency of facility reporting of substantiated complaints to law enforcement. (G) The ability of the State agency to sufficiently hire, train, and retain individuals who conduct surveys. (H) Any other area related to surveys of facilities, or the individuals conducting such surveys, determined appropriate by the Secretary. (3) Support Based on the review under paragraph (2), the Secretary shall, during the period specified in paragraph (1), provide training, tools, technical assistance, and financial support to State and Federal agencies that perform surveys of facilities for the purpose of improving the surveys conducted under subsection (g) and the enforcement process under subsection (h) with respect to the areas reviewed under paragraph (2). . 30720. Nurse staffing requirements Section 1819(d) of the Social Security Act ( 42 U.S.C. 1395i–3(d) ) is amended— (1) in paragraph (4)(A), by inserting and any regulations promulgated under paragraph (5)(C) after section 1124 ; and (2) by adding at the end the following new paragraph: (5) Nurse staffing requirements (A) Funding There is appropriated to the Secretary, out of any monies in the Treasury not otherwise appropriated, $50,000,000 for fiscal year 2022, to remain available through fiscal year 2031, for purposes of carrying out this paragraph. (B) Study Not later than 3 years after the date of the enactment of this paragraph, and not less frequently than once every 5 years thereafter, the Secretary shall, out of funds appropriated under subparagraph (A), conduct a study and submit to Congress a report on the appropriateness of establishing minimum staff to resident ratios for nursing staff for skilled nursing facilities. Each such report shall include— (i) with respect to the first such report, recommendations regarding appropriate minimum ratios of registered nurses (and, if practicable, licensed practical nurses (or licensed vocational nurses) and certified nursing assistants) to residents at such skilled nursing facilities; and (ii) with respect to each subsequent such report, recommendations regarding appropriate minimum ratios of registered nurses, licensed practical nurses (or licensed vocational nurses), and certified nursing assistants to residents at such skilled nursing facilities. (C) Promulgation of regulations (i) In general Not later than 1 year after the Secretary first submits a report under subparagraph (B), the Secretary shall, out of funds appropriated under subparagraph (A)— (I) specify through regulations, consistent with such report, appropriate minimum ratios (if any) of registered nurses (and, if practicable, licensed practical nurses (or licensed vocational nurses) and certified nursing assistants) to residents at skilled nursing facilities; and (II) except as provided in clause (ii), require such skilled nursing facilities to comply with such ratios. (ii) Exception (I) In general In addition to the authority to waive the application of clause (i)(II) under section 1135, the Secretary may waive the application of such clause with respect to a skilled nursing facility if the Secretary finds that— (aa) the facility is located in a rural area and the supply of skilled nursing facility services in such area is not sufficient to meet the needs of individuals residing therein; (bb) the Secretary provides notice of the waiver to the State long-term care ombudsman (established under section 307(a)(12) of the Older Americans Act of 1965) and the protection and advocacy system in the State for the mentally ill; and (cc) the facility that is granted such a waiver notifies residents of the facility (or, where appropriate, the guardians or legal representatives of such residents) and members of their immediate families of the waiver. (II) Renewal Any waiver in effect under this clause shall be subject to annual renewal. (iii) Update Not later than 1 year after the submission of each subsequent report under subparagraph (B), the Secretary shall, out of funds appropriated under subparagraph (A) and consistent with such report, update the regulations described in clause (i)(I) to reflect appropriate minimum ratios (if any) of registered nurses, licensed practical nurses (or licensed vocational nurses), and certified nursing assistants to residents at skilled nursing facilities. . 2 Expanding Access to Maternal Health 30721. Extending continuous coverage for pregnant and postpartum individuals (a) Medicaid (1) Requiring full benefits for pregnant and postpartum individuals for 12-month period post pregnancy (A) In general Paragraph (5) of section 1902(e) of the Social Security Act ( 42 U.S.C. 1396a(e) ) is amended— (i) by striking (5) A woman who and inserting (5)(A) For any fiscal year quarter (beginning with the first fiscal year quarter beginning one year after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ) with respect to which subparagraph (B) does not apply, an individual who ; and (ii) by adding at the end the following new subparagraph: (B) For any fiscal year quarter (beginning with the first fiscal year quarter beginning one year after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ), any individual who, while pregnant, is eligible for and received medical assistance under the State plan or a waiver of such plan (regardless of the basis for the individual’s eligibility for medical assistance and including during a period of retroactive eligibility under subsection (a)(34)), shall remain eligible, notwithstanding section 1916(c)(3) or any other limitation under this title, for medical assistance through the end of the month in which the 12-month period (beginning on the last day of pregnancy of the individual) ends, and such medical assistance shall be in accordance with clauses (i) and (ii) of paragraph (16)(B). . (B) Conforming amendments Title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) is amended— (i) in section 1902(a)(10), in the matter following subparagraph (G), by striking (VII) the medical assistance and all that follows through , (VIII) and inserting (VIII) ; (ii) in section 1902(e)(6), by striking In the case of and inserting For any fiscal year quarter with respect to which paragraph (5)(B) does not apply, in the case of ; (iii) in section 1902(l)(1)(A), by striking 60-day period and inserting 12-month period (or, for any fiscal year quarter with respect to which subsection (e)(5)(B) does not apply and for which the State has not adopted the option under section 1902(e)(16)(A), 60-day period) ; (iv) in section 1903(v)(4)— (I) in subparagraph (A)(i), by striking the 60-day period and inserting the applicable period (as described in subparagraph (D)) ; (II) in subparagraph (A)(ii), by striking the period and inserting , and, in the case of such an individual who is or becomes pregnant, such individual (regardless of age) during pregnancy and during the applicable period (as described in subparagraph (D)). ; (III) by adding at the end the following new subparagraph: (D) For purposes of subparagraph (A), the applicable period described in this subparagraph is— (i) beginning with the first fiscal year quarter that begins one year after the date of the enactment of the American Rescue Plan Act of 2021, for a State that has adopted the option under section 1902(e)(16)(A), the 12-month period; ; and (IV) in the subparagraph (D) added by subclause (III), by adding at the end the following new clauses: (ii) beginning with the first fiscal year quarter beginning one year after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 , the 12-month period; and (iii) for any fiscal year quarter (beginning with such first fiscal year quarter) with respect to which section 1902(e)(5)(B) does not apply and for which the State has not adopted the option under section 1902(e)(16)(A), the 60-day period. ; (v) in section 1905(a), in the 4th sentence in the matter following paragraph (31), by striking 60-day period and inserting 12-month period (or, for any fiscal year quarter with respect to which section 1902(e)(5)(B) does not apply and for which the State has not adopted the option under section 1902(e)(16)(A), 60-day period) ; and (vi) in section 1905(y), by adding at the end the following new paragraph: (3) Treatment for certain indviduals Notwithstanding paragraphs (1) and (2), section 1902(a)(10)(A)(i)(III), and section 1902(a)(10)(A)(i)(IV), the term newly eligible in paragraph (2)(A) and the phrase newly eligible individuals described in subclause (VIII) of section 1902(a)(10)(A)(i) in paragraph (1) shall apply to individuals who but for the amendments made by section 30721(a) of the Act titled ‘An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14’ would be eligible under the State plan (or waiver) for medical assistance under section 1902(a)(10)(A)(i)(VIII) 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 the pregnancy) ends. . (2) Transition from State option (A) In general Section 1902(e)(16)(A) of the Social Security Act ( 42 U.S.C. 1396a(e)(16)(A) ) is amended by striking At the option of the State and inserting For any fiscal year quarter with respect to which paragraph (5)(B) does not apply, at the option of the State . (B) Conforming amendment Section 9812(b) of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) is amended by striking during the 5-year period . (3) Effective date (A) In general Subject to subparagraphs (B) and (C), the amendments made by this paragraph shall take effect on the 1st day of the 1st fiscal year quarter that begins one year after the date of the enactment of this Act and shall apply with respect to medical assistance provided on or after such date. (B) Exception for certain American Rescue Plan Act of 2021 conforming amendments The amendments made by subclauses (I), (II), and (III) of paragraph (1)(B)(iv) shall take effect on the first day of the first fiscal year quarter that begins one year after the date of the enactment of the American Rescue Plan Act of 2021 and shall apply with respect to medical assistance provided on or after such date. (C) Exception for State legislation In the case of a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) that the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet any requirement imposed by amendments made by this subsection, the plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet such a requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session shall be considered to be a separate regular session of the State legislature. (b) CHIP (1) Requiring full benefits for pregnant and postpartum women for 12-month period post pregnancy (A) In general Section 2107(e)(1)(J) of the Social Security Act ( 42 U.S.C. 1397gg(e)(1)(J) ) is amended— (i) by striking Paragraphs (5) and (16) and inserting (i) For any fiscal year quarter with respect to which paragraph (5)(B) of section 1902(e) does not apply, paragraphs (5)(A) and (16) of such section ; and (ii) by adding at the end the following new clause: (ii) For any fiscal year quarter (beginning with the first fiscal year quarter beginning one year after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ), section 1902(e)(5)(B) (requiring, notwithstanding section 2103(e)(3)(C)(ii)(I) or any other limitation under this title, continuous coverage for pregnant and postpartum individuals, including 12 months postpartum, of medical assistance) if the State provides child health assistance to targeted low-income children or pregnancy-related assistance to targeted low-income pregnant women, under the State child health plan or waiver, including coverage of all items or services provided to a targeted low-income child or targeted low-income pregnant woman (as applicable) under the State child health plan or waiver). . (B) Conforming amendments Section 2112 of the Social Security Act ( 42 U.S.C. 1397ll ) is amended— (i) in subsection (d)— (I) in paragraph (1), by inserting and includes, through application of section 1902(e)(5)(B) pursuant to section 2107(e)(1)(J)(ii), continuous coverage for pregnant and postpartum individuals, including 12 months postpartum before the period at the end; and (II) in paragraph (2)(A), by striking 60-day period and all that follows through ends and inserting 12-month period (or, for any fiscal year quarter with respect to which section 2107(e)(1)(J)(ii) does not apply and for which the State has not adopted the option under section 1902(e)(16)(A), 60-day period) ends ; and (ii) in subsection (f)(2), by striking 60-day period and inserting 12-month period (or, for any fiscal year quarter (beginning with the first fiscal year quarter beginning one year after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 ) with respect to which section 2107(e)(1)(J)(ii) does not apply and for which the State has not adopted the option under section 1902(e)(16)(A), 60-day period) . (2) Transition from State plan option Section 9822(b) of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) is amended by striking , during the 5-year period . (3) Effective date (A) In general Subject to subparagraph (B), the amendments made by this subsection shall take effect on the 1st day of the 1st fiscal year quarter that begins one year after the date of the enactment of this Act and shall apply with respect to child health assistance and pregnancy-related assistance, as applicable, provided on or after such date. (B) Exception for State legislation In the case of a State child health plan under title XXI of the Social Security Act (42 U.S.C. 1397aa through 1397mm) that the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet any requirement imposed by amendments made under this subsection, the plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet such a requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session shall be considered to be a separate regular session of the State legislature. 30722. State option to provide coordinated care through a maternal health home for pregnant and postpartum individuals Title XIX of the Social Security Act ( 42 U.S.C. 1396a ) is amended by inserting after section 1945A the following new section: 1945B. State option to provide coordinated care through a maternal health home for pregnant and postpartum individuals (a) In general Notwithstanding section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), beginning 24 months after the date of enactment of this section, a State, at its option as a State plan amendment, may provide for medical assistance under this title to eligible individuals who choose to enroll in a maternal health home under this section and receive maternal health home services from a designated provider, a team of health professionals operating with such a provider, or a health team. (b) Maternal health home qualification standards A maternal health home under this section shall demonstrate to the State the ability to do the following: (1) Develop an individualized comprehensive care plan for each eligible individual, working in a culturally and linguistically appropriate manner with such individual to develop and incorporate such care plan in a manner consistent with such individual’s needs and choices, including— (A) primary care; (B) inpatient care; (C) social support services; (D) local hospital emergency care; (E) care management and planning related to a change in an eligible individual’s eligibility for medical assistance or a change in health insurance coverage as needed; and (F) behavioral health services. (2) Coordinate all necessary services to support prenatal, labor and delivery, and postpartum care for eligible individuals. (3) Coordinate access to specialists, behavioral health providers, early intervention services, and pediatricians. (4) Collect and report information under subsection (d). (c) Payments (1) In general A State shall provide a designated provider, a team of health professionals operating with such a provider, or a health team with payments for the provision of maternal health home services to each eligible individual enrolled in a maternal health home. Payments for maternal health home services made to a designated provider, a team of health professionals operating with such a provider, or a health team shall be treated as payments for medical assistance for purposes of section 1903(a), except that, during the first 8 fiscal quarters that the State plan amendment is in effect, the Federal medical assistance percentage otherwise applicable to such payments shall be increased by 15 percentage points, not to exceed 90 percent. (2) Methodology (A) In general The State shall specify in the State plan amendment the methodology the State will use for determining payment for the provision of maternal health home services. Such methodology for determining payment— (i) may be tiered or adjusted to reflect, with respect to each individual provided such services by a designated provider, a team of health care professionals operating with such a provider, or a health team, the acuity of each individual receiving care, or the specific capabilities of the provider, team of health care providers, or health team; and (ii) shall be established consistent with section 1902(a)(30)(A). (B) Alternate model of payment The methodology for determining payment for provision of maternal health home services under this section shall not be limited to a fee-for-service or per-member per-month payment model, and may provide for alternate models of payment that reflect the needs of a State, subject to the approval of the Secretary. (3) Planning grants (A) In general Beginning 12 months after the date of enactment of this section, the Secretary may award planning grants to States for purposes of developing a State plan amendment under this section. A planning grant awarded to a State under this paragraph shall remain available until expended. (B) State contribution A State awarded a planning grant shall contribute an amount equal to the State percentage determined under section 1905(b) for each fiscal year for which the grant is awarded. (C) Appropriations In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended, to carry out this paragraph, $5,000,000 for awarding grants under this section. (d) Data collection and reporting (1) Provider reporting requirements (A) In general In order to receive payments from a State under subsection (c), a designated provider, a team of health professionals operating with such a provider, or a health team shall report to the State, in accordance with such requirements as the Secretary shall specify, the following: (i) With respect to each such designated provider, team of health professionals, or health team, the name, national provider identification number, address, and specific maternal health home services offered to be provided to eligible individuals who have selected such designated provider, team of health professionals, or health team as the maternal health home of such eligible individuals. (ii) Information on all applicable measures for determining the quality of maternal health home services provided by such designated provider, team of health professionals, or health team, including, to the extent applicable, the core set of child health quality measures published under section 1139A, the core set of adult health quality measures for Medicaid eligible adults published under section 1139B, and maternal health quality measures. (B) Use of health information technology A designated provider, a team of health professionals operating with such a provider, or a health team shall use, to the extent practicable, health information technology to provide a State with the information required under subparagraph (A) and to improve care coordination for eligible individuals, such as by— (i) facilitating the review of person-centered care plans; (ii) monitoring service delivery and identifying gaps in treatment; and (iii) communicating with eligible individuals and with primary, behavioral health and specialty care providers. (2) State reporting requirements A State with a State plan amendment approved under this section shall collect and report to the Secretary, at such time and in such form and manner as required by the Secretary, the following information: (A) The number of maternal health homes in a State in which individuals are enrolled pursuant to a State plan amendment under this section. (B) The number of individuals served who selected a maternal health home, disaggregated by race and ethnicity, pursuant to a State plan amendment under this section. (C) Information on the quality measures applicable for maternal health home services, including, to the extent applicable, the core set of child health quality measures published under section 1139A, and the core set of adult health quality measures for Medicaid eligible adults published under section 1139B, and maternal health quality measures. (D) The type of delivery systems and payment models used to provide health home services to eligible individuals enrolled in a maternal health home under a State plan amendment under this section. (E) The number and characteristics of designated providers, teams of health professionals, and health teams selected as maternal health homes pursuant to a State plan amendment under this section. (F) Information on hospitalizations, morbidity, and mortality of eligible individuals and their infants enrolled in a maternal health home in such State alongside comparable data from a State’s maternal mortality review committee. (G) A report on best practices for effective strategies in coordinating care to support access to comprehensive maternal health services. (H) Information reported to the State under paragraph (1). (e) State plan amendment (1) In general A State plan amendment submitted pursuant to this section shall include— (A) eligibility criteria for maternal health homes; (B) services available to eligible individuals through the maternal health home; (C) a description of providers that may provide care through a maternal health home, and that include how such State will ensure any provider arrangement offered includes a person-centered planning approach to determining necessary services and supports and providing the appropriate care coordination to meet clinical and non-clinical needs of eligible individuals; and (D) reimbursement methodologies (as described in subsection (c)(2)). (2) Hospital notification A State with a State plan amendment approved under this section shall require each hospital that is a participating provider under the State plan (or a waiver of such plan) to establish procedures for, in the case of an individual who is enrolled in a maternal health home pursuant to this section and seeks treatment in the emergency department of such hospital, notifying the health home of such individual of such treatment. (3) Education with respect to availability of maternal health home services In order for a State plan amendment to be approved under this section, a State shall include in the State plan amendment— (A) a description of the State’s process for educating providers participating in the State plan (or a waiver of such plan) on the availability of maternal health home services, including the process by which such providers can refer individuals to a designated provider, team of health care professionals operating such a provider, or health team for the purpose of establishing a maternal health home through which such individuals may receive such services; and (B) a description of the State’s process for educating individuals on the availability of such services. (4) Confidentiality A State with a State plan amendment approved under this section shall establish confidentiality protections to ensure, at a minimum, that the State does not disclose any identifying information with respect to any specific mortality case (including pursuant to the reporting of information required under subsection (d)(2)(F)). (f) Rule of construction Nothing in this section shall be construed— (1) to require an eligible individual to enroll in, or prohibit an eligible individual from disenrolling at any time from, a maternal health home under this section; or (2) to require a designated provider, team of health professionals, or health team to act as a maternal health home and provide services in accordance with this section if the designated provider, team of health professionals, or health team does not voluntarily agree to act as a maternal health home. (g) Definitions In this section: (1) Designated provider The term designated provider means a physician, clinical practice or clinical group practice, rural health clinic, freestanding birth center, community health center, obstetrician gynecologist, midwife who meets at a minimum the international definition of the midwife and global standards for midwifery education as established by the International Confederation of Midwives, or any other health care entity or provider determined by the State and approved by the Secretary to be qualified to act as a maternal health home. (2) Eligible individual The term eligible individual means an individual eligible for medical assistance under the State plan or under a waiver of such plan who— (A) is pregnant or in the postpartum period that begins on the last day of the pregnancy and ends on the last day of the month in which the 12-month period (beginning on the last day of the pregnancy of the individual) ends (or, if the State provides for a longer period of postpartum coverage period under such plan or waiver, on the last day of such longer period); and (B) is not enrolled in a health home under section 1945 or 1945A. (3) Health team The term health team has the meaning given such term for purposes of section 3502 of Public Law 111–148 . (4) Maternal health home The term maternal health home means a designated provider (including a provider that operates in coordination with a team of health care professionals), or a health team selected by a State to provide maternal health home services to pregnant and postpartum individuals. (5) Maternal health home services (A) In general The term maternal health home services means comprehensive and timely high-quality services described in subparagraph (B) that are provided by a designated provider, a team of health professionals operating with such a provider, or a health team. (B) Services described The services described in this subparagraph shall include— (i) a standardized risk assessment for all participants to determine needs; (ii) comprehensive care management; (iii) care coordination and health promotion; (iv) comprehensive transitional care, including arranging appropriate follow-up, for individuals transitioning from inpatient care to other settings; (v) individual and family support (including authorized representatives); (vi) making referrals to other medical, community, and social support services, if relevant; and (vii) the use of health information technology to link services and coordinate care, to the extent practicable. (6) Standardized risk assessment The term standardized risk assessment means an assessment to determine the needs of an eligible individual, and shall include an assessment of medical, obstetric, behavioral health, and social needs performed at the initial prenatal or postpartum visit. (7) Team of health professionals The term team of health professionals means a team of health professionals (as described in the State plan amendment under this section) that may— (A) include physicians, midwives who meet at a minimum the international definition of the midwife and global standards for midwifery education as established by the International Confederation of Midwives, nurses, nurse care coordinators, nutritionists, social workers, doulas, behavioral health professionals, community health workers, translators and interpreters, and other professionals determined to be appropriate by the State; (B) a health care entity or individual who is designated to coordinate such a team; and (C) provide care at a facility that is freestanding, virtual, or based at a hospital, freestanding birth center, community health center, community mental health center, rural clinic, clinical practice or clinical group practice, academic health center, children’s hospital, or any health care entity determined to be appropriate by the State and approved by the Secretary. . 3 Territories 30731. Increasing Medicaid cap amounts and the Federal medical assistance percentage for the territories (a) Cap amount adjustments Section 1108(g)(2) of the Social Security Act ( 42 U.S.C. 1308(g)(2) ) is amended— (1) in subparagraph (A)— (A) in clause (i)— (i) by striking except as provided in clause (ii) and inserting for each of fiscal years 1999 through 2019 ; and (ii) by striking and at the end; and (B) by adding at the end the following new clauses: (iii) for fiscal year 2022, $3,600,000,000; and (iv) for fiscal year 2023 and each subsequent year, the sum of the amount provided in this subsection for the preceding fiscal year, increased by the percentage increase, if any, in Medicaid spending under title XIX during the preceding year (as determined based on the most recent National Health Expenditure data with respect to such year), rounded to the nearest $100,000; ; (2) in subparagraph (B)— (A) in clause (i), by striking except as provided in clause (ii), and inserting for each of fiscal years 1999 through 2019, ; (B) in clause (ii), by striking and at the end; (C) by adding at the end the following: (iv) for fiscal year 2022, $135,000,000; and (v) for fiscal year 2023 and each subsequent year, the sum of the amount provided in this subsection for the preceding fiscal year, increased by the percentage increase described in subparagraph (A)(iv) for the preceding year, rounded to the nearest $10,000; ; (3) in subparagraph (C)— (A) in clause (i), by striking except as provided in clause (ii), and inserting for each of fiscal years 1999 through 2019, ; (B) in clause (ii), by striking and at the end; (C) by adding at the end the following: (iv) for fiscal year 2022, $140,000,000; and (v) for fiscal year 2023 and each subsequent year, the sum of the amount provided in this subsection for the preceding fiscal year, increased by the percentage increase described in subparagraph (A)(iv) for the preceding year, rounded to the nearest $10,000; ; (4) in subparagraph (D)— (A) in clause (i), by striking except as provided in clause (ii), and inserting for each of fiscal years 1999 through 2019, ; (B) in clause (ii), by striking and at the end; (C) in clause (iii), by striking and at the end; and (D) by adding at the end the following new clauses: (iv) for fiscal year 2022, $70,000,000; and (v) for fiscal year 2023 and each subsequent year, the sum of the amount provided in this subsection for the preceding fiscal year, increased by the percentage increase described in subparagraph (A)(iv) for the preceding year, rounded to the nearest $10,000; and ; (5) in subparagraph (E)— (A) in clause (i), by striking except as provided in clause (ii), and inserting for each of fiscal years 1999 through 2019, ; (B) in clause (ii), by striking and at the end; (C) in clause (iii), by striking the period and inserting a semicolon; and (D) by adding at the end the following: (iv) for fiscal year 2022, $90,000,000; and (v) for fiscal year 2023 and each subsequent year, the sum of the amount provided in this subsection for the preceding fiscal year, increased by the percentage increase described in subparagraph (A)(iv) for the preceding year, rounded to the nearest $10,000. ; and (6) by striking the flush matter following subparagraph (E). (b) FMAP adjustments Section 1905(ff) of the Social Security Act ( 42 U.S.C. 1396d(ff) ) is amended— (1) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and adjusting the margins accordingly; (2) by striking Notwithstanding and inserting the following: (1) In general Notwithstanding ; (3) in paragraph (1), as so inserted— (A) in the matter preceding subparagraph (A), as so redesignated, by inserting paragraph (2) and after subject to ; (B) in subparagraph (B), as so redesignated— (i) by striking December 3, 2021, and inserting September 30, 2021 ; and (ii) by striking and at the end; (C) in subparagraph (C), as so redesignated, by striking December 3, 2021, and inserting September 30, 2021 ; (D) by adding at the end the following: (D) for fiscal year 2022 and each subsequent fiscal year, the Federal medical assistance percentage for the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa shall be equal to 83 percent; (E) for fiscal year 2022, the Federal medical assistance percentage for Puerto Rico shall be equal to 76 percent; and (F) for fiscal year 2023 and each subsequent fiscal year, the Federal medical assistance percentage for Puerto Rico shall be equal to 83 percent. ; and (4) by adding at the end the following new paragraph: (2) Special rule for Puerto Rico relating to establishing a payment floor (A) In general For each fiscal quarter (beginning with the first fiscal quarter beginning on or after the date of the enactment of this paragraph), Puerto Rico’s State plan (or waiver of such plan) shall establish a reimbursement floor, implemented through a directed payment arrangement plan, for physician services that are covered under the Medicare part B fee schedule in the Puerto Rico locality established under section 1848(b) that is not less than 70 percent of the payment that would apply to such services if they were furnished under part B of title XVIII during such fiscal quarter. (B) Application to managed care In determining whether Puerto Rico has established a reimbursement floor under a directed payment arrangement plan that satisfies the requirements of subparagraph (A) for a fiscal quarter occurring during fiscal year 2022 or a subsequent fiscal year— (i) the Secretary shall disregard payments made under sub-capitated arrangements for services such as primary care case management; and (ii) if the reimbursement floor for physician services applicable under a managed care contract satisfies the requirements of subparagraph (A) for a fiscal quarter occurring during a year in which the contract is entered into or renewed, such reimbursement floor shall be deemed to satisfy such requirements for each subsequent fiscal quarter occurring during such year and for each fiscal quarter occurring during the subsequent fiscal year. (C) FMAP reduction for failure to establish payment floor (i) In general In the case that the Secretary determines that Puerto Rico has failed to meet the requirement of subparagraph (A) with respect to a fiscal quarter, the Federal medical assistance percentage otherwise determined under this subsection for Puerto Rico shall be reduced for such quarter by the applicable number of percentage points described in clause (ii). (ii) Applicable number of percentage points For purposes of clause (i), the applicable number of percentage points described in this clause is, with respect to a fiscal quarter, the following: (I) In the case no reduction was made under this subparagraph for the preceding fiscal quarter, 0.5 percentage points. (II) In the case a reduction was made under this subparagraph for the preceding fiscal quarter, the number of percentage points of such reduction for such preceding fiscal quarter, plus 0.25 percentage points, except that in no case may the application of this subclause result in a reduction of more than 5 percentage points. . 4 Other Medicaid 30741. Investments to ensure continued access to health care for children and other individuals (a) Providing for 1 year of continuous eligibility for children (1) Under the Medicaid program (A) In general Section 1902(e) of the Social Security Act ( 42 U.S.C. 1396a(e) ) is amended— (i) in paragraph (12), by inserting before the date that is one year after the date of the enactment of paragraph (17) after subsection (a)(10)(A) ; and (ii) by adding at the end following new paragraph: (17) 1 year of continuous eligibility for children The State plan (or waiver of such State plan) shall provide that an individual who is under the age of 19 and who is determined to be eligible for benefits under a State plan (or waiver of such plan) approved under subsection (a)(10)(A) shall remain eligible for such benefits until the earlier of— (A) the end of the 12-month period beginning on the date of such determination; (B) the time that such individual attains the age of 19; or (C) the date that such individual ceases to be a resident of such State. . (B) Effective date (i) In general Subject to clause (ii), the amendments made by subparagraph (A)(ii) shall take effect one year after the date of enactment of this Act. (ii) Exception for State legislation In the case of a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) that the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet any requirement imposed by amendments made under subparagraph (A)(ii), the plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet such a requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session shall be considered to be a separate regular session of the State legislature. (2) Under the children’s health insurance program Section 2107(e)(1) of the Social Security Act ( 42 U.S.C. 1397gg(e)(1) ) is amended— (A) by redesignating subparagraphs (K) through (T) as subparagraphs (L) through (U), respectively; and (B) by inserting after subparagraph (J) the following new subparagraph: (K) Section 1902(e)(17) (relating to 1 year of continuous eligibility for children). . (b) Revisions to temporary increase of Medicaid FMAP under the Families First Coronavirus Response Act Section 6008 of the Families First Coronavirus Response Act ( 42 U.S.C. 1396d note) is amended— (1) in subsection (a)— (A) by striking In general.— Subject to and inserting Temporary increase.— (1) In general Subject to ; (B) in the paragraph (1) inserted by subparagraph (A)— (i) by striking the last day of the calendar quarter in which the last day of such emergency period occurs and inserting September 30, 2022 ; and (ii) by striking 6.2 percentage points and inserting the number of percentage points specified in paragraph (2) with respect to such calendar quarter ; and (C) by adding at the end the following new paragraph: (2) Percentage points specified For purposes of paragraph (1), the number of percentage points specified in this paragraph is— (A) 6.2 percentage points with respect to each calendar quarter occurring during the period beginning on the first day of the emergency period defined in paragraph (1)(B) of section 1135(g) of the Social Security Act ( 42 U.S.C. 1320b-5(g) ) and ending March 31, 2022; (B) 3.0 percentage points with respect to the calendar quarter beginning on April 1, 2022, and ending on June 30, 2022; and (C) 1.5 percentage points with respect to the calendar quarter beginning on July 1, 2022, and ending on September 30, 2022. ; (2) in subsection (b)(3)— (A) by striking the State fails and inserting subject to subsection (f), the State fails ; (B) by striking and ending the last day of the month in which the emergency period described in subsection (a) ends and inserting and ending on March 31, 2022, ; and (C) by striking through the end of the month in which such emergency period ends and inserting through September 30, 2022, ; and (3) by adding at the end the following new subsection: (f) Special rule for enrollments as of April 1, 2022 For calendar quarters during the period described in subsection (a) that begin on or after April 1, 2022, a State described in such subsection may, in accordance with paragraph (3), terminate coverage for an individual who is determined to be no longer eligible for medical assistance and who has been enrolled for at least 12 consecutive months under the State plan of such State under title XIX of the Social Security Act ( 42 U.S.C. 1396 ) (or waiver of such plan), and such State shall not be ineligible for the increase to the Federal medical assistance percentage of the State described in such subsection on the basis that the State is in violation of the requirement of subsection (b)(3), if the State, with respect to such terminations of coverage conducted through September 30, 2022, for such individuals, is in compliance with each of the following: (1) The State shall conduct such eligibility redeterminations, with respect to such an individual, in accordance with the provisions of section 435.916 of title 42 of the Code of Federal Regulations (or any successor regulation) and the provisions of section 1943 of the Social Security Act, as applicable. (2) Prior to terminating coverage for an individual, the State shall undertake a good faith effort to ensure that the State has contact information (including an up-to-date mailing address, phone number, or email address) for such individuals by coordinating with Medicaid managed care organizations (where applicable), and other applicable State health and human services agencies. (3) The State may not disenroll from the State plan (or waiver) such an individual determined ineligible pursuant to such a redetermination for medical assistance under the State plan (or waiver) on the basis of returned mail unless— (A) there have been at least two failed attempts to contact such individual through at least 2 modalities; and (B) after the second attempt, the individual had 30 days notice, through at least 2 modalities, before such disenrollment takes effect. (4) The State may not initiate eligibility redeterminations for more than 1/12 of individuals enrolled in the State plan (or waiver) with respect to any month during the period beginning on April 1, 2022, and ending on September 30, 2022. (5) The State shall submit to the Secretary monthly reports during the period described in subsection (a) that begin on or after April 1, 2022 which the State receives an increase pursuant to such subsection period on the activities of the State, including, with respect to the period for which the report is submitted— (A) the number of eligibility renewals initiated, beneficiaries renewed, and individuals whose eligibility was terminated; (B) the number of such cases in which eligibility for medical assistance under the State plan (or waiver) were so terminated due to the individual’s failure to return a renewal form or other information needed by the state to make an eligibility determination; (C) the number of such cases in which eligibility for medical assistance under the State plan (or waiver) were so terminated pursuant to such a redetermination due to a known change in circumstance; (D) the number of individuals whose coverage was terminated pursuant to such a redetermination whose accounts were, during such period, transitioned to the Exchange, CHIP, or basic health program; and (E) with respect to eligibility redeterminations, the daily average volume, wait times, and abandonment rate (as determined by the Secretary) for each call center during such month. . (c) Medical assistance under Medicaid for inmates during 30-day period preceding release (1) In general The subdivision (A) following paragraph (31) of section 1905(a) of the Social Security Act ( 42 U.S.C. 1396d(a) ) is amended by inserting and, beginning on the first day of the first fiscal year quarter that begins two years after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 , except during the 30-day period preceding the date of release of an inmate of a public institution after medical institution . (2) Conforming amendments in title XIX Section 1902(a) of the Social Security Act ( 42 U.S.C. 1396a(a) ) is amended— (A) in paragraph (74), by striking at the end and ; and (B) in paragraph (84)— (i) in subparagraph (A), by inserting , except, beginning on the first day of the first fiscal year quarter that begins two years after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 , the State may not suspend coverage during the 30-day period preceding the date of release of the juvenile after during the period the juvenile is such an inmate ; and (ii) in subparagraph (C), by striking upon release and inserting 30 days prior to release . (3) Conforming amendment in title XXI Section 2110(b)(2) of the Social Security Act ( 42 U.S.C. 1397jj(b)(2) )— (A) in subparagraph (A), by striking at the end or ; (B) in subparagraph (B), by striking the period at the end and inserting ; or ; and (C) by adding at the end the following new subparagraph: (C) except, beginning on the first day of the first fiscal year quarter that begins two years after the date of the enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, except during the 30-day period preceding the date of release of such child from such public institution. . (d) Extension of certain provisions (1) Express lane eligibility option Section 1902(e)(13) of the Social Security Act ( 42 U.S.C. 1396a(e)(13) ) is amended by striking subparagraph (I). (2) Conforming amendments for assurance of affordability standard for children and families Section 1902(gg)(2) of the Social Security Act ( 42 U.S.C. 1396a(gg)(2) ) is amended— (A) in the paragraph heading, by striking through September 30, 2027 ; and (B) by striking through September 30 and all that follows through ends on September 30, 2027 and inserting (but beginning on October 1, 2019, . (e) Expansion of community mental health services demonstration program (1) In general Section 223 of the Protecting Access to Medicare Act of 2014 ( 42 U.S.C. 1396a note) is amended— (A) in subsection (c), by adding at the end the following new paragraph: (3) Additional planning grants In addition to the planning grants awarded under paragraph (1), the Secretary shall award planning grants to States (other than States selected to conduct demonstration programs under paragraph (1) or (8) of subsection (d)) for the purpose of developing proposals to participate in time-limited demonstration programs described in subsection (d). ; (B) in subsection (d)— (i) in paragraph (3), by striking Subject to paragraph (8) and inserting Subject to paragraphs (8) and (9) ; (ii) in paragraph (5)(C)(iii)(II), by inserting or paragraph (9) after paragraph (8) ; (iii) in paragraph (7)— (I) in subparagraph (A), by inserting through the year in which the last demonstration under this section ends after annually thereafter ; and (II) in subparagraph (B)— (aa) by striking December 31, 2021 and inserting March 31, 2026 ; (bb) by striking recommendations concerning and all that follows through the period and inserting recommendations concerning whether and how the demonstration programs under this section should be modified. ; and (cc) by adding at the end the following new sentence: Such recommendations shall be based on data collected from States selected to conduct demonstration programs under paragraph (1) and, to the extent available, data collected from States selected to conduct demonstration programs under paragraphs (8) and (9). ; and (iv) by adding at the end the following new paragraph: (9) Further additional programs (A) In general In addition to the States selected under paragraphs (1) and (8) and without regard to paragraph (4), the Secretary shall select any State that meets the requirements described in subparagraph (B) to conduct a demonstration program that meets the requirements of this subsection for 2 years. (B) Requirements The requirements described in this subparagraph with respect to a State are that the State— (i) was awarded a planning grant under paragraph (1) or (3) of subsection (c); and (ii) submits an application (in addition to any application that the State may have previously submitted under this section) that meets the requirements of paragraph (2)(B). (C) Requirements for selected States The requirements applicable to States selected under paragraph (8) pursuant to subparagraph (C) of such paragraph shall apply in the same manner to States selected under this paragraph. ; (C) in subsection (e), by amending paragraph (4) to read as follows: (4) State The term State means each of the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. ; and (D) in subsection (f)(1)— (i) in subparagraph (A), by striking ; and and inserting a semicolon; (ii) in subparagraph (B), by striking the period and inserting , and $40,000,000 for fiscal year 2022; and ; and (iii) by adding at the end the following new subparagraph: (C) for purposes of updating the criteria under subsection (a) as needed for certified community behavioral health clinics and carrying out subsections (c)(3), (d)(7), and (d)(9) (including the provision of technical assistance to States applying for planning grants under subsection (c)(3) and conducting demonstration projects under this section), $5,000,000 for fiscal year 2022. . (2) Exclusion of amounts attributable to increased FMAP from territorial caps Section 1108 of the Social Security Act ( 42 U.S.C. 1308 ) is amended— (A) in subsection (f), in the matter preceding paragraph (1), by striking subsections (g) and (h) and inserting subsections (g), (h), and (i) ; and (B) by adding at the end the following: (i) Exclusion from caps of amounts attributable to enhanced FMAP for community mental health services Any additional amount paid to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa for expenditures for medical assistance that is attributable to an enhanced Federal medical assistance percentage applicable to such expenditures under section 223(d)(5) of the Protecting Access to Medicare Act of 2014 shall not be taken into account for purposes of applying payment limits under subsections (f) and (g). . (f) Making permanent a State option to provide qualifying community-based mobile crisis intervention services Section 1947 of the Social Security Act ( 42 U.S.C. 1396w–6 ) is amended— (1) in subsection (a), by striking during the 5-year period ; (2) in subsection (c), by striking occurring during the period described in subsection (a) that a State and inserting in which a State provides medical assistance for qualifying community-based mobile crisis intervention services under this section and ; and (3) in subsection (d)(2)— (A) in subparagraph (A), by striking for the fiscal year preceding the first fiscal quarter occurring during the period described in subsection (a) and inserting for the fiscal year preceding the first fiscal quarter in which the State provides medical assistance for qualifying community-based mobile crisis intervention services under this section ; and (B) in subparagraph (B), by striking occurring during the period described in subsection (a) and inserting occurring during a fiscal quarter . (g) Extension of 100 percent Federal medical assistance percentage for Urban Indian Health Organizations and Native Hawaiian Health Care Systems The third sentence of section 1905(b) of the Social Security Act ( 42 U.S.C. 1396d(b) ) is amended— (1) by striking 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 and inserting for the period of the 16 fiscal year quarters that begins on April 1, 2021 ; and (2) by striking such 8 fiscal year quarters and inserting such period of 16 fiscal year quarters . (h) Ensuring accurate payments to pharmacies under Medicaid (1) In general Section 1927(f) of the Social Security Act ( 42 U.S.C. 1396r–8(f) ) is amended— (A) by striking and after the semicolon at the end of paragraph (1)(A)(i) and all that precedes it through (1) and inserting the following: (1) Determining pharmacy actual acquisition costs The Secretary shall conduct a survey of retail community pharmacy drug prices in the 50 States and the District of Columbia, to determine the national average drug acquisition cost, as follows: (A) Use of vendor The Secretary may contract services for— (i) with respect to retail community pharmacies, the determination of retail survey prices of the national average drug acquisition cost for covered outpatient drugs based on a monthly survey of such pharmacies, net of all discounts and rebates (to the extent any information with respect to such discounts and rebates is available), the average reimbursement received for such drugs by such pharmacies from all sources of payment and, to the extent available, the usual and customary charges to consumers for such drugs; and ; (B) by adding at the end of paragraph (1) the following: (F) Survey reporting A State shall require that any retail community pharmacy in the State that receives any payment, reimbursement, administrative fee, discount, or rebate related to the dispensing of covered outpatient drugs to individuals receiving benefits under this title or title XXI, regardless of whether such payment, fee, discount, or rebate is received from the State or a managed care entity directly or from a pharmacy benefit manager or another entity that has a contract with the State or a managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), shall respond to surveys of retail prices conducted under this subsection with the specific information requested by the vendor. (G) Survey information Information on retail community actual acquisition prices obtained under this paragraph shall be made publicly available and shall include at least the following: (i) The monthly response rate of the survey, including a list of pharmacies not in compliance with subparagraph (F) and the identification numbers for such pharmacies. (ii) The sampling frame and number of pharmacies sampled monthly. (iii) Characteristics of reporting pharmacies, including type (such as independent or chain), geographic or regional location, and dispensing volume. (iv) Reporting of a separate national average drug acquisition cost for each drug for independent retail pharmacies and chain pharmacies. (v) Information on price concessions including on and off invoice discounts, rebates, and other price concessions. (vi) Information on average professional dispensing fees paid. (H) Penalties (i) Failure to provide timely information A retail community pharmacy that knowingly fails to respond to a survey conducted under this subsection on a timely basis may be subject to a civil monetary penalty in an amount not to exceed $10,000 for each day in which such information has not been provided. A retail community pharmacy shall not be subject to such penalty if the pharmacy makes a good faith effort to provide the information requested by the survey on a timely basis. (ii) False information A retail community pharmacy that knowingly provides false information in response to a survey conducted under this subsection may be subject to a civil money penalty in an amount not to exceed $100,000 for each item of false information. ; and (C) in paragraph (4), by inserting , and $7,000,000 for fiscal year 2023 and each fiscal year thereafter, after 2010 . (2) Condition for federal financial participation Section 1903(i)(10) of the Social Security Act ( 42 U.S.C. 1396b(i)(10) ) is amended— (A) in subparagraph (D), by striking and after the semicolon; (B) in subparagraph (E), by striking or after the semicolon and inserting and ; and (C) by inserting after subparagraph (E), the following new subparagraph: (F) with respect to any amount expended for reimbursement to a retail community pharmacy under this title unless the State requires the retail community pharmacy to respond to surveys of retail prices conducted under section 1927(f) in accordance with paragraph (1)(F) of such section; or . (3) Effective date The amendments made by this section take effect on the 1st day of the 1st quarter that begins on or after the date that is 18 months after the date of enactment of this Act. (i) Funding for implementation and administration In addition to amounts otherwise available, there is appropriated to the Secretary, for fiscal year 2022, to be available until expended, out of any money in the Treasury not otherwise appropriated, $20,000,000, to provide technical assistance and guidance and cover administrative costs associated with implementing the amendments made by this part and part 2. 5 Maintenance of Effort 30751. Encouraging continued access after the end of the public health emergency Section 6008 of the Families First Coronavirus Response Act ( 42 U.S.C. 1396d note), as amended by section 30741(b), is further amended— (1) by redesignating the second subsection (d) added by section 11 of division X of Public Law 116–260 as subsection (e); and (2) by adding at the end the following new subsection: (g) Encouraging continued access after the end of the public health emergency (1) In general Subject to paragraph (2), if, between October 1, 2022 and December 31, 2025, a State puts into effect for any calendar quarter occurring during such period eligibility standards, methodologies, or procedures for individuals (except individuals described in subparagraph (D) of section 1902(e)(14)) who are applying for or receiving medical assistance under the State plan of such State under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) (including any waiver under such title or section 1115 of such Act ( 42 U.S.C. 1315 )) that are more restrictive than the eligibility standards, methodologies, or procedures, respectively, under the State plan (or waiver of such plan) that are in effect on October 1, 2021, the Federal medical assistance percentage otherwise determined under section 1905(b) of the Social Security Act ( 42 U.S.C. 1396d(b) ) for that State shall be reduced by 3.1 percentage points for such calendar quarter. (2) Nonapplication During the period described in paragraph (1), at the option of the State, the condition under such paragraph may not apply to the State with respect to nonpregnant, nondisabled adults who are eligible for medical assistance under the State plan (or waiver such plan) whose income exceeds 133 percent of the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved if, on or after December 31, 2022, the State had certified or certifies to the Secretary that, with respect to the State fiscal year during which the certification is made, the State has a budget deficit, or with respect to the succeeding State fiscal year, the State is projected to have a budget deficit. Upon submission of such a certification to the Secretary, the condition under paragraph (1) shall not apply to the State with respect to any remaining portion of the period described in the preceding sentence. . G Children’s Health Insurance Program 30801. Investments to strengthen CHIP (a) Permanent extension of children’s health insurance program (1) In general Section 2104(a)(28) of the Social Security Act ( 42 U.S.C. 1397dd(a)(28) ) is amended to read as follows: (28) for fiscal year 2027 and each subsequent year, such sums as are necessary to fund allotments to States under subsection (m). . (2) Allotments (A) In general Section 2104(m) of the Social Security Act ( 42 U.S.C. 1397dd(m) ) is amended— (i) in paragraph (2)(B)(i), by striking , 2023, and 2027 and inserting and 2023 ; (ii) in paragraph (5)— (I) by striking (10), or (11) and inserting or (10) ; (II) by striking for a fiscal year and inserting for a fiscal year before 2027 ; and (III) by striking 2023, or 2027 and inserting or 2023 ; (iii) in paragraph (7)— (I) in subparagraph (A), by striking and ending with fiscal year 2027, ; and (II) in the flush left matter at the end, by striking or fiscal year 2026 and inserting fiscal year 2026, or a subsequent even-numbered fiscal year ; (iv) in paragraph (9)— (I) by striking (10), or (11) and inserting or (10) ; and (II) by striking 2023, or 2027, and inserting or 2023 ; and (v) by striking paragraph (11). (B) Conforming amendment Section 50101(b)(2) of the Bipartisan Budget Act of 2018 ( Public Law 115–123 ) is repealed. (b) Other related CHIP policies (1) Pediatric quality measures program Section 1139A(i)(1) of the Social Security Act (42 U.S.C. 1320b–9a(i)(1)) is amended— (A) in subparagraph (C), by striking at the end and ; (B) in subparagraph (D), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following new subparagraphs: (E) for fiscal year 2028, $15,000,000 for the purpose of carrying out this section (other than subsections (e), (f), and (g)); and (F) for each subsequent fiscal year, the amount appropriated under this paragraph for the previous fiscal year, increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average, as published by the Bureau of Labor Statistics) rounded to the nearest $100,000 over such previous fiscal year, for the purpose of carrying out this section (other than subsections (e), (f), and (g)). . (2) Assurance of eligibility standards for children Section 2105(d)(3) of the Social Security Act ( 42 U.S.C. 1397ee(d)(3) ) is amended— (A) in the paragraph heading, by striking through September 30, 2027 ; and (B) in subparagraph (A)— (i) in the matter preceding clause (i)— (I) by striking During the period that begins on the date of enactment of the Patient Protection and Affordable Care Act and ends on September 30, 2027 and inserting Beginning on the date of the enactment of the Patient Protection and Affordable Care Act ; (II) by striking During the period that begins on October 1, 2019, and ends on September 30, 2027 and inserting Beginning on October 1, 2019 ; and (III) by striking The preceding sentences shall not be construed as preventing a State during any such periods from and inserting The preceding sentences shall not be construed as preventing a State from ; (ii) in clause (i), by striking the semicolon at the end and inserting a period; (iii) by striking clauses (ii) and (iii); and (iv) as amended by subclause (i)(III), by striking as preventing a State from and all that follows through applying eligibility standards and inserting as preventing a State from applying eligibility standards . (3) Qualifying States option Section 2105(g)(4) of the Social Security Act ( 42 U.S.C. 1397ee(g)(4) ) is amended— (A) in the paragraph heading, by striking for fiscal years 2009 through 2027 and inserting after fiscal year 2008 ; and (B) in subparagraph (A), by striking for any of fiscal years 2009 through 2027 and inserting for any fiscal year after fiscal year 2008 . (4) Outreach and enrollment program Section 2113 of the Social Security Act ( 42 U.S.C. 1397mm ) is amended— (A) in subsection (a)— (i) in paragraph (1), by striking during the period of fiscal years 2009 through 2027 and inserting , beginning with fiscal year 2009, ; (ii) in paragraph (2)— (I) by striking 10 percent of such amounts and inserting 10 percent of such amounts for the period or the fiscal year for which such amounts are appropriated ; and (II) by striking during such period and inserting , during such period or such fiscal year, ; and (iii) in paragraph (3), by striking For the period of fiscal years 2024 through 2027, an amount equal to 10 percent of such amounts and inserting Beginning with fiscal year 2024, an amount equal to 10 percent of such amounts for the period or the fiscal year for which such amounts are appropriated ; and (B) in subsection (g)— (i) by striking 2017,, and inserting 2017, ; (ii) by striking and $48,000,000 and inserting $48,000,000 ; and (iii) by inserting after through 2027 the following: , $60,000,000 for fiscal years 2028, 2029, and 2030, and for each 3 fiscal years after fiscal year 2030, the amount appropriated under this subsection for the previous fiscal year, increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average, as published by the Bureau of Labor Statistics) rounded to the nearest $100,000 over such previous fiscal year . (5) Child enrollment contingency fund Section 2104(n) of the Social Security Act ( 42 U.S.C. 1397dd(n) ) is amended— (A) in paragraph (2)— (i) in subparagraph (A)(ii)— (I) by striking 2024 through 2026 and inserting beginning with fiscal year 2024 ; and (II) by striking 2023, and 2027 and inserting and 2023 ; and (ii) in subparagraph (B)— (I) by striking 2024 through 2026 and inserting beginning with fiscal year 2024 ; and (II) by striking 2023, and 2027 and inserting and 2023 ; and (B) in paragraph (3)(A)— (i) by striking fiscal years 2024 through 2026 and inserting fiscal year 2024 or any subsequent fiscal year ; and (ii) by striking 2023, or 2027 and inserting or 2023 . (c) CHIP drug rebates (1) In general Section 2107 of the Social Security Act ( 42 U.S.C. 1397gg ), as amended by section 30721(b)(2), is further amended— (A) in subsection (e)(1) by adding at the end the following new subparagraph: (V) Beginning January 1, 2024, section 1927, in accordance with subsection (h) of this section, with respect to covered outpatient drugs (as defined in section 1927) for which child health assistance or pregnancy-related assistance (as defined in section 2112(d)(1)) is provided under the State child health plan, including such drugs dispensed to individuals enrolled with a managed care organization that meets the requirements of subpart L of part 457 of title 42, Code of Federal Regulations (or a successor regulation) if the organization is responsible for coverage of such drugs. ; and (B) by adding at the end the following new subsection: (h) Drug rebates For purposes of subsection (e)(1)(V), in applying section 1927— (1) the Secretary shall take such actions as are necessary and develop or adapt such processes and mechanisms as are necessary, including to report and collect data to bill and track rebates under section 1927, as applied pursuant to subsection (e)(1)(V) for covered outpatient drugs (as defined in such section 1927) for which child health assistance or pregnancy-related assistance (as defined in section 2112(d)(1)) is provided under the State child health plan; (2) the requirements of such section 1927 shall apply to any drug or biological product described in paragraph (1)(A) of section 1905(ee) that is— (A) furnished as child health assistance or pregnancy-related assistance under the State child health plan; and (B) a covered outpatient drug (as defined in section 1927(k), except that, in applying paragraph (2)(A) of such section to a drug described in such paragraph (1)(A) of such section 1905(ee), such drug shall be deemed a prescribed drug for purposes of subsection (a)(12)) ; and (3) in order for payment to be available under section 2105 with respect to child health assistance or pregnancy-related assistance for covered outpatient drugs of a manufacturer, the manufacturer must have entered into and have in effect a single rebate agreement to— (A) provide rebates under section 1927 to a State Medicaid program under title XIX as well as a State program under this title; and (B) provide such rebates to a State program under this title in the same form and manner as the manufacturer is required to provide rebates under an agreement described in section 1927(b) to a State Medicaid program under title XIX. Nothing in this subsection or subsection (e)(1)(V) shall be construed as limiting Federal financial participation for prescription drugs and biological products that do not satisfy the definition of a covered outpatient drug and for which there is not a rebate agreement in effect. . (2) Drug rebate conforming amendment Section 1927(a)(1) of the Social Security Act ( 42 U.S.C. 1396r–8(a)(1) ) is amended in the first sentence— (A) by striking or under part B of title XVIII and inserting , under part B of title XVIII, or, beginning with the first full calendar quarter with respect to which section 2107(e)(1)(V) applies, under section 2105 with respect to child health assistance or pregnancy-related assistance under title XXI ; (B) by striking a rebate agreement described in subsection (b) and inserting a single rebate agreement described in subsection (b) with respect to payment under section 1903(a) and, beginning January 1, 2024, title XXI, ; and (C) by inserting and including as such subsection (b) is applied pursuant to subsections (e)(1)(V) and (h) of section 2107 with respect to child health assistance and pregnancy-related assistance under a State child health plan under title XXI before , and must meet . (3) Non-duplication of rebates conforming amendment Section 340B(a)(5)(A) of the Public Health Service Act ( 42 U.S.C. 256b(a)(5)(A) ) is amended— (A) in clause (i), by inserting before the period the following: and shall not request payment under title XXI of such Act for child health assistance or pregnancy-related assistance (as defined in section 2112(d)(1) of such Act) under a State child health plan under title XXI of such Act with respect to a drug that is subject to an agreement under this section if the drug is subject to the payment of a rebate to the State under section 1927 of such Act, as applied pursuant to subsections (e)(1)(V) and (h) of section 2107 of such Act ; and (B) in clause (ii), by inserting , including as applied pursuant to subsections (e)(1)(V) and (h) of section 2107 of such Act, after the requirements of section 1927(a)(5)(C) of the Social Security Act . (4) Exclusion of rebates from best price conforming amendment Section 1927(c)(1)(C)(i) of the Social Security Act ( 42 U.S.C. 1396r–8(c)(1)(C)(i) ) is amended— (A) in subclause (V), by striking and at the end; (B) in subclause (VI), by striking the period and inserting ; and ; and (C) by adding at the end the following new subclause: (VII) any rebates paid pursuant to section 2107(e)(1)(V). . (d) State option to expand children’s eligibility for chip (1) In general Section 2110(b)(1)(B)(ii) of the Social Security Act ( 42 U.S.C. 1397jj(b)(1)(B)(ii) ) is amended— (A) in subclause (II), by striking or at the end; (B) in subclause (III), by striking and at the end and inserting or ; and (C) by inserting after subclause (III) the following new subclause: (IV) at the option of the State, whose family income exceeds the maximum income level otherwise established for children under the State child health plan as of the date of the enactment of this subclause; and . (2) Treatment of territories Section 2104(m)(7) of the Social Security Act ( 42 U.S.C. 1397dd(m)(7) ) is amended— (A) in the matter preceding subparagraph (A), by striking the 50 States or the District of Columbia and inserting a State (including the District of Columbia and each commonwealth and territory) ; (B) in subparagraph (B)(ii), by striking or District ; and (C) in the matter following subparagraph (B), by striking each place it occurs or District (3) Removal of sunset for increases in allotments Section 2104(m)(7)(A) of the Social Security Act ( 42 U.S.C. 1397dd(m)(7)(A) ) is amended by striking and ending with fiscal year 2027, . (e) Funding for implementation and administration In addition to amounts otherwise available, there is appropriated to the Secretary, for fiscal year 2022, to be available until expended, out of any money in the Treasury not otherwise appropriated, $5,000,000, to provide technical assistance and guidance and cover administrative costs associated with implementing the amendments made by this section. H Medicare Coverage of Hearing Services 30901. Providing coverage for hearing care under the Medicare program (a) Provision of audiology services by qualified audiologists and qualified hearing aid professionals (1) In general Section 1861(ll) of the Social Security Act ( 42 U.S.C. 1395x(ll) ) is amended— (A) in paragraph (3)— (i) by inserting (and, beginning January 1, 2023, such aural rehabilitation and treatment services) after assessment services ; (ii) by inserting , and, beginning on January 1, 2023, such hearing assessment services furnished by a qualified hearing aid professional, after by a qualified audiologist ; and (iii) by striking the audiologist and inserting the audiologist or qualified hearing aid professional ; and (B) in paragraph (4), by adding at the end the following new subparagraph: (C) The term qualified hearing aid professional means, with respect to hearing assessment services described in paragraph (3), an individual who— (i) is licensed or registered as a hearing aid dispenser, hearing aid specialist, hearing instrument dispenser, or related professional by the State in which the individual furnishes such services; and (ii) meets such other requirements as the Secretary determines appropriate (including requirements relating to educational certifications or accreditations), taking into account any additional requirements for hearing aid specialists, hearing aid dispensers, and hearing instrument dispensers established by Medicare Advantage organizations under part C, State plans (or waivers of such plans) under title XIX, and the group health plans and health insurance issuers (as such terms are defined in section 2791 of the Public Health Service Act). . (2) Payment for qualified hearing aid professionals Section 1833(a)(1) of the Social Security Act ( 42 U.S.C. 1395l(a)(1) ), as amended by section 139101(b), is further amended— (A) by striking and before (EE) ; and (B) by inserting before the semicolon at the end the following: and (FF) with respect to hearing assessment services (as described in paragraph (3) of section 1861(ll)) furnished by a qualified hearing aid professional (as defined in paragraph (4)(C) of such section), the amounts paid shall be equal to 80 percent of the lesser of the actual charge for such services or 85 percent of the amount for such services determined under the payment basis determined under section 1848 . (b) Coverage of hearing aids (1) Inclusion of hearing aids as prosthetic devices Section 1861(s)(8) of the Social Security Act ( 42 U.S.C. 1395x(s)(8) ) is amended by inserting , and including hearing aids (as described in section 1834(h)(7)) furnished on or after January 1, 2023, to individuals diagnosed with moderately severe, severe, or profound hearing loss before the semicolon at the end. (2) Payment limitations for hearing aids Section 1834(h) of the Social Security Act ( 42 U.S.C. 1395m(h) ) is amended by adding at the end the following new paragraphs: (6) Payment only on an assignment-related basis Payment for hearing aids for which payment may be made under this part may be made only on an assignment-related basis. The provisions of section 1842(b)(18)(B) shall apply to hearing aids in the same manner as they apply to services furnished by a practitioner described in subsection (b)(18)(C). (7) Limitations for hearing aids Payment may be made under this part with respect to an individual, with respect to hearing aids furnished on or after January 1, 2023— (A) not more than once per ear during a 5-year period; (B) only for types of such hearing aids that are determined appropriate by the Secretary; and (C) only if furnished pursuant to a written order of a physician, qualified audiologist (as defined in section 1861(ll)(4)), qualified hearing aid professional (as so defined), physician assistant, nurse practitioner, or clinical nurse specialist. . (3) Application of competitive acquisition (A) In general Section 1834(h)(1)(H) of the Social Security Act ( 42 U.S.C. 1395m(h)(1)(H) ) is amended— (i) in the header, by inserting and hearing aids after orthotics ; (ii) by inserting , or of hearing aids described in paragraph (2)(D) of such section, after 2011, ; and (iii) in clause (i), by inserting or such hearing aids after such orthotics . (B) Conforming amendment (i) In general Section 1847(a)(2) of the Social Security Act ( 42 U.S.C. 1395w–3(a)(2) ) is amended by adding at the end the following new subparagraph: (D) Hearing aids Hearing aids described in section 1861(s)(8) for which payment would otherwise be made under section 1834(h). . (ii) Exemption of certain items from competitive acquisition Section 1847(a)(7) of the Social Security Act ( 42 U.S.C. 1395w–3(a)(7) ) is amended by adding at the end the following new subparagraph: (C) Certain hearing aids Those items and services described in paragraph (2)(D) if furnished by a physician or other practitioner (as defined by the Secretary) to the physician’s or practitioner’s own patients as part of the physician’s or practitioner’s professional service. . (4) Inclusion of qualified audiologists and qualified hearing aid professionals as certain practitioners to receive payment on an assignment-related basis Section 1842(b)(18)(C) of the Social Security Act ( 42 U.S.C. 1395u(b)(18)(C) ), is amended by adding at the end the following new clauses: (vii) Beginning on January 1, 2023, a qualified audiologist (as defined in section 1861(ll)(4)(B)). (viii) A qualified hearing aid professional (as defined in section 1861(ll)(4)(C)). . (c) Exclusion modification Section 1862(a)(7) of the Social Security Act ( 42 U.S.C. 1395y(a)(7) ) is amended by inserting (except such hearing aids or examinations therefor as described in and otherwise allowed under section 1861(s)(8)) after hearing aids or examinations therefor . (d) Inclusion as excepted medical treatment Section 1821(b)(5)(A) of the Social Security Act ( 42 U.S.C. 1395i–5(b)(5)(A) ) is amended— (1) in clause (i), by striking or ; (2) in clause (ii), by striking the period and inserting , or ; and (3) by adding at the end the following new clause: (iii) consisting of audiology services described in subsection (ll)(3) of section 1861, or hearing aids described in subsection (s)(8) of such section, that are payable under part B as a result of the amendments made by An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14. . (e) Rural health clinics and Federally qualified health centers (1) Clarifying coverage of audiology services as physicians’ services Section 1861(aa)(1)(A) of the Social Security Act ( 42 U.S.C. 1395x(aa)(1)(A) ) is amended by inserting (including audiology services (as defined in subsection (ll)(3))) after physicians’ services . (2) Inclusion of qualified audiologists and qualified hearing aid professionals as RHC and FQHC practitioners Section 1861(aa)(1)(B) of the Social Security Act ( 42 U.S.C. 1395x(aa)(1)(B) ) is amended by inserting or by a qualified audiologist or a qualified hearing aid professional (as such terms are defined in subsection (ll)), after (as defined in subsection (hh)(1)), . (3) Temporary payment rates for certain services under the RHC AIR and FQHC PPS (A) AIR Section 1833 of the Social Security Act ( 42 U.S.C. 1395l ) is amended— (i) in subsection (a)(3)(A), by inserting (which shall, in the case of audiology services (as defined in section 1861(ll)(3)), in lieu of any limits on reasonable charges otherwise applicable, be based on the rates payable for such services under the payment basis determined under section 1848 until such time as the Secretary determines sufficient data has been collected to otherwise apply such limits (or January 1, 2029, if no such determination has been made as of such date)) after may prescribe in regulations ; and (ii) by adding at the end the following new subsection: (ee) Disregard of costs attributable to certain services from calculation of RHC AIR Payments for rural health clinic services other than audiology services (as defined in section 1861(ll)(3)) under the methodology for all-inclusive rates (established by the Secretary) under subsection (a)(3) shall not take into account the costs of such services while rates for such services are based on rates payable for such services under the payment basis established under section 1848. . (B) PPS Section 1834(o) of the Social Security Act ( 42 U.S.C. 1395m(o) ) is amended by adding at the end the following new paragraph: (5) Temporary payment rates based on PFS for certain services The Secretary shall, in establishing payment rates for audiology services (as defined in section 1861(ll)(3)) that are Federally qualified health center services under the prospective payment system established under this subsection, in lieu of the rates otherwise applicable under such system, base such rates on rates payable for such services under the payment basis established under section 1848 until such time as the Secretary determines sufficient data has been collected to otherwise establish rates for such services under such system (or January 1, 2029, if no such determination has been made as of such date). Payments for Federally qualified health center services other than such audiology services under such system shall not take into account the costs of such services while rates for such services are based on rates payable for such services under the payment basis established under section 1848. . (f) Implementation (1) In general In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $370,000,000, to remain available until expended, for purposes of implementing the amendments made by this section during the period beginning on January 1, 2022, and ending on September 30, 2031. (2) Program instruction The Secretary of Health and Human Services shall implement the provisions of, and the amendments made by, this section for 2022 and 2023 by program instruction. I Public Health 1 Health care infrastructure and workforce 31001. Funding to support core public health infrastructure for State, territorial, local, and Tribal health departments at the Centers for Disease Control and Prevention (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services (in this subtitle referred to as the Secretary ), acting through the Director of the Centers for Disease Control and Prevention (in this section referred to as the Director ), for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, and to remain available until expended— (1) for the purposes of carrying out subsection (c)(1)(A)— (A) $200,000,000 in fiscal year 2022; (B) $300,000,000 in fiscal year 2023; and (C) $1,000,000,000 in each of fiscal years 2024 through 2026; (2) for the purposes of carrying out subsection (c)(1)(B)— (A) $100,000,000 in fiscal year 2022; (B) $150,000,000 in fiscal year 2023; and (C) $500,000,000 in each of fiscal years 2024 through 2026; and (3) for the purposes of carrying out subsection (d)— (A) $100,000,000 in fiscal year 2022; (B) $150,000,000 in fiscal year 2023; and (C) $500,000,000 in each of fiscal years 2024 through 2026. (b) Use of funds Amounts made available pursuant to subsection (a) shall be used to support core public health infrastructure activities to strengthen the public health system of the United States, including by awarding grants under this section and expanding and improving activities of the Centers for Disease Control and Prevention under subsections (c) and (d). (c) Grants (1) Awards For the purpose of addressing core public health infrastructure needs, the Secretary shall award— (A) a grant to each State or territorial health department, and to local health departments that serve counties with a population of at least 2,000,000 or cities with a population of at least 400,000 people; and (B) grants on a competitive basis to State, territorial, local, or Tribal health departments. (2) Required uses (A) Reallocation to local health departments A State health department receiving funds under subparagraph (A) or (B) of paragraph (1) shall allocate at least 25 percent of such funds to local health departments, as applicable, within the State to support contributions of the local health departments to core public health infrastructure. (B) Progress in meeting accreditation standards A health department receiving funds under this section that is not accredited shall report to the Secretary on an annual basis how the department is working to meet accreditation standards. (3) Formula grants to health departments In awarding grants under paragraph (1), the Secretary shall award funds to each health department in accordance with a formula which considers population size, the Social Vulnerability Index of the Centers for Disease Control and Prevention, and other factors as determined by the Secretary. (4) Competitive grants to State, territorial, local, and Tribal health departments In making grants under paragraph (1)(B), the Secretary shall give priority to applicants demonstrating core public health infrastructure needs for public health agencies in the applicant’s jurisdiction. (5) Permitted uses (A) In general The Secretary may make available a subset of the funds available for grants under paragraph (1) for purposes of awarding grants to State, territorial, local, and Tribal health departments for planning or to support public health accreditation. (B) Uses Recipients of such grants may use the grant funds to assess core public health infrastructure needs and report to the Centers for Disease Control and Prevention on efforts to achieve accreditation, as applicable. (6) Requirements To be eligible for a grant under this section, an entity shall— (A) submit an application in such form and containing such information as the Secretary shall require; (B) demonstrate to the satisfaction of the Secretary that— (i) funds received through the grant will be expended only to supplement, and not supplant, non-Federal and Federal funds otherwise available to the entity for the purpose of addressing core public health infrastructure needs; and (ii) with respect to activities for which the grant is awarded, the entity will maintain expenditures of non-Federal amounts for such activities at a level not less than the level of such expenditures maintained by the entity for fiscal year 2019; and (C) agree to report annually to the Director regarding the use of the grant funds. (d) Core public health infrastructure and activities for the CDC The Secretary, acting through the Director, shall expand and improve the core public health infrastructure and activities of the Centers for Disease Control and Prevention to support activities necessary to address unmet, ongoing, and emerging public health needs, including prevention, preparation for, and response to public health emergencies. (e) Definition In this section, the term core public health infrastructure includes— (1) health equity activities; (2) workforce capacity and competency; (3) all hazards public health and preparedness; (4) testing capacity, including test platforms, mobile testing units, and personnel; (5) health information, health information systems, and health information analysis (including data analytics); (6) epidemiology and disease surveillance; (7) contact tracing; (8) policy and communications; (9) financing; (10) community partnership development; and (11) relevant components of organizational capacity. (f) Supplement not supplant Amounts made available by this section shall be used to supplement, and not supplant, amounts otherwise made available for the purposes described in this Act. 31002. Funding for health center capital grants (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until expended, for necessary expenses for awarding grants and entering into cooperative agreements for capital projects to health centers funded under section 330 of the Public Health Service Act ( 42 U.S.C. 254b ) to be awarded without regard to the time limitation in subsection (e)(3) and subsections (e)(6)(A)(iii), (e)(6)(B)(iii), and (r)(2)(B) of such section 330, and for necessary expenses for awarding grants and cooperative agreements for capital projects to Federally qualified health centers, as described in section 1861(aa)(4)(B) of the Social Security Act ( 42 U.S.C. 1395x(aa)(4)(B) ). The Secretary shall take such steps as may be necessary to expedite the awarding of such grants to Federally qualified health centers for capital projects. (b) Use of funds Amounts made available to a recipient of a grant or cooperative agreement pursuant to subsection (a) shall be used for— (1) health center facility alteration, renovation, remodeling, expansion, construction, and other capital improvement costs, including the costs of amortizing the principal of, and paying interest on, loans for such purposes; and (2) the purchase, renovation, or maintenance of mobile clinics and related vehicles and equipment. 31003. Funding for teaching health center graduate medical education (a) In general In addition to amounts otherwise available, and notwithstanding the limitations referred to in subsections (b)(2) and (d)(2) of section 340H of the Public Health Service Act ( 42 U.S.C. 256h ), there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,370,000,000, to remain available until expended, for— (1) the program of payments to teaching health centers that operate graduate medical education programs under such section; and (2) the award of teaching health center development grants pursuant to section 749A of the Public Health Service Act ( 42 U.S.C. 293l–1 ). (b) Exemption From Amount and Duration Limitations Subsection (b) of section 749A of the Public Health Service Act ( 42 U.S.C. 293l–1 ) shall not apply with respect to amounts awarded under such section out of amounts appropriated under subsection (a) or under section 2604 of the American Rescue Plan Act ( Public Law 117–2 ). (c) Use of funds Amounts made available pursuant to subsection (a) shall be used for the following activities: (1) For making payments to establish new approved graduate medical residency training programs pursuant to section 340H(a)(1)(C) of the Public Health Service Act ( 42 U.S.C. 256h(a)(1)(C) ). (2) For making payments under section 340H(a)(1)(A) of the Public Health Service Act ( 42 U.S.C. 256h(a)(1)(A) )) to qualified teaching health centers for maintenance of filled positions at existing approved graduate medical residency training programs. (3) For making payments under section 340H(a)(1)(B) of the Public Health Service Act ( 42 U.S.C. 256h(a)(1)(B) ) for the expansion of existing approved graduate medical residency training programs. (4) For making awards under section 749A of the Public Health Service Act ( 42 U.S.C. 293l–1 ) to teaching health centers for the purpose of establishing new accredited or expanded primary care residency programs. (5) To provide an increase to the per resident amount described in section 340H(a)(2) of the Public Health Service Act ( 42 U.S.C. 256h(a)(2) ). (d) Priority uses of funds In making payments and awards under subsection (c), the Secretary shall, in addition to the requirements of paragraphs (3)(A) and (3)(B) of section 340H of the Public Health Service Act ( 42 U.S.C. 256h ), make payments and awards to eligible entities in a manner that accounts for States or territories in which there is no existing qualified teaching health center funded by payments under such section 340H. 31004. Funding for children’s hospitals that operate graduate medical education programs In addition to amounts otherwise available, and notwithstanding the caps on awards specified in paragraphs (1) and (2) of subsection (b) and (h)(1) of section 340E of the Public Health Service Act ( 42 U.S.C. 256e ), there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until expended, for carrying out such section 340E of the Public Health Service Act ( 42 U.S.C. 256e ). 31005. Funding for National Health Service Corps In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until expended, for carrying out sections 338A, 338B, and 338I of the Public Health Service Act ( 42 U.S.C. 254l , 254l–1, 254q–1). 31006. Funding for the Nurse Corps In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for carrying out section 846 of the Public Health Service Act ( 42 U.S.C. 297n ). 31007. Funding for schools of medicine in underserved areas (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for purposes of making awards to eligible entities for the establishment, improvement, or expansion of an allopathic or osteopathic school of medicine, or a branch campus of an allopathic or osteopathic school of medicine, consistent with subsection (b). (b) Use of funds The Secretary, acting through the Administrator of the Health Resources and Services Administration, shall, with priority given to minority-serving institutions described in section 371(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1067q(a) ), and taking into consideration equitable distribution of awards among the geographical regions of the United States (which shall include rural regions and populations as defined by the Secretary for the purposes of this section) and the locations of existing schools of medicine and osteopathic medicine, use amounts appropriated by subsection (a) to award grants to eligible entities to— (1) recruit, enroll, and retain students, including individuals who are from disadvantaged backgrounds (including racial and ethnic groups underrepresented among medical students and health professions), individuals from rural and underserved areas, low-income individuals, and first generation college students (as defined in section 402A(h)(3) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a–11(h)(3) )), at a school of medicine or osteopathic medicine or branch campus of a school of medicine or osteopathic medicine; (2) develop, implement, and expand curriculum that emphasizes care for rural and underserved populations, including accessible and culturally appropriate and linguistically appropriate care and services, at such school or branch campus; (3) plan and construct a school of medicine or osteopathic medicine in an area in which no other such school or branch campus of such a school is based; (4) plan, develop, and meet criteria for accreditation for a school of medicine or osteopathic medicine or branch campus of such a school; (5) hire faculty, including faculty from racial and ethnic groups who are underrepresented among the medical and other health professions, and other staff to serve at such a school or branch campus; (6) support educational programs at such a school or branch campus, including modernizing curriculum; (7) modernize and expand infrastructure at such a school or branch campus; or (8) support other activities that the Secretary determines will further the establishment, improvement, or expansion of a school of medicine or osteopathic medicine or branch campus of a school of medicine or osteopathic medicine. (c) Definitions In this section: (1) Eligible entity The term eligible entity means an institution of higher education as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). (2) Branch campus (A) In general The term branch campus , with respect to a school of medicine or osteopathic medicine, means an additional location of such school that is geographically apart and independent of the main campus, at which the school offers at least 50 percent of the program leading to a degree of doctor of medicine or doctor of osteopathy that is offered at the main campus. (B) Independence from main campus For purposes of subparagraph (A), the location of a school described in such subparagraph shall be considered to be independent of the main campus described in such subparagraph if the location— (i) is permanent in nature; (ii) offers courses in educational programs leading to a degree, certificate, or other recognized educational credential; (iii) has its own faculty and administrative or supervisory organization; and (iv) has its own budgetary and hiring authority. 31008. Funding for schools of nursing in underserved areas (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for purposes of making awards to schools of nursing (as defined in section 801 of the Public Health Service Act ( 42 U.S.C. 296 )) to enhance and modernize nursing education programs and increase the number of faculty and students at such schools. (b) Use of funds The Secretary, acting through the Administrator of the Health Resources and Services Administration, taking into consideration equitable distribution of awards among the geographical regions of the United States and the capacity of a school of nursing to provide care in underserved areas, shall use amounts appropriated by subsection (a) to award grants for purposes of— (1) recruiting, enrolling, and retaining students at such school, with a priority for students from disadvantaged backgrounds (including racial or ethnic groups underrepresented in the nursing workforce), individuals from rural and underserved areas, low-income individuals, and first generation college students (as defined in section 402A(h)(3) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a–11(h)(3) )); (2) creating, supporting, or modernizing educational programs and curricula at such school; (3) retaining current faculty, and hiring new faculty, with an emphasis on faculty from racial or ethnic groups that are underrepresented in the nursing workforce; (4) modernizing infrastructure at such school, including audiovisual or other equipment, personal protective equipment, simulation and augmented reality resources, telehealth technologies, and virtual and physical laboratories; (5) partnering with a health care facility, nurse-managed health clinic, or community health center, in order to provide educational opportunities for the purpose of establishing or expanding clinical education; (6) enhancing and expanding nursing programs that prepare nurse researchers and scientists; (7) establishing nurse-led intradisciplinary and interprofessional educational partnerships; or (8) other activities that the Secretary determines will further the development, improvement, and expansion of schools of nursing. 31009. Funding for palliative care and hospice education and training (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until expended, to support the establishment or operation of programs that— (1) support training of health professionals in palliative and hospice care (including through traineeships or fellowships); and (2) foster patient and family engagement, integration of palliative and hospice care with primary care and other appropriate specialties, and collaboration with community partners to address gaps in health care for individuals in need of palliative or hospice care. (b) Use of funds The Secretary shall, giving priority to applicants proposing to carry out programs or activities that demonstrate coordination with other Federal or State programs and are expected to substantially benefit rural populations, medically underserved populations, medically underserved communities, Indian Tribes or Tribal organizations, or Urban Indian organizations, use amounts appropriated by subsection (a) to carry out a program to award grants or contracts to entities defined in paragraph (1), (3), or (4) of section 799B of the Public Health Service Act ( 42 U.S.C. 295p ) or section 801(2) of such Act ( 42 U.S.C. 296 ) for purposes of carrying out the following activities: (1) Clinical training on providing integrated palliative and hospice care and primary care delivery services. (2) Interprofessional or interdisciplinary training to practitioners from multiple disciplines and specialties, including training on the provision of care to individuals with palliative or hospice care needs. (3) Establishing or maintaining training-related community-based programs for individuals with palliative or hospice care needs and caregivers to improve quality of life, and where appropriate, health outcomes for individuals who have palliative or hospice care needs. 31010. Funding for palliative medicine physician training (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until expended, to carry out a program to award grants and contracts to accredited schools of medicine, schools of osteopathic medicine, teaching hospitals, and graduate medical education programs for the purpose of providing support for projects that fund the training of physicians or specialists who plan to teach or practice palliative medicine. (b) Use of funds Amounts made available to an awardee pursuant to subsection (a) shall be used to— (1) provide training in interprofessional or interdisciplinary team-based palliative medicine through a variety of service rotations, such as rotations with respect to consultation services or acute and chronic care services, and rotations in other health care settings, including extended care facilities, ambulatory care and comprehensive evaluation units, hospices, home care, and community care programs; (2) develop specific performance-based measures to evaluate the competency of trainees; and (3) provide training in interprofessional or interdisciplinary, team-based palliative medicine. (c) Graduate medical education program defined In this section, the term graduate medical education program means a program sponsored by an accredited school of medicine, an accredited school of osteopathic medicine, a hospital, or a public or private institution that— (1) offers postgraduate medical training in the specialties and subspecialties of medicine; and (2) has been accredited by— (A) the Accreditation Council for Graduate Medical Education; or (B) the American Osteopathic Association through its Committee on Postdoctoral Training (or a successor committee). 31011. Funding for palliative care and hospice academic career awards In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until expended, to establish a program, consistent with section 753(b) of the Public Health Service Act ( 42 U.S.C. 294c(b) ), including paragraphs (5)(A) and (5)(B) of such section 753(b) concerning the amount and duration of awards, respectively, except that such program shall be to provide awards to accredited schools of medicine, osteopathic medicine, nursing, social work, psychology, allied health, dentistry, or chaplaincy applying on behalf of board-certified or board-eligible individuals in hospice and palliative medicine that have an early-career junior (non-tenured) faculty appointment at an accredited school of medicine, or osteopathic medicine, nursing, social work, psychology, allied health, dentistry, or chaplaincy, to promote the academic career development of individuals as hospice and palliative care specialists. 31012. Funding for hospice and palliative nursing (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until expended, to establish a program to award grants and contracts to accredited schools of nursing, health care facilities, programs leading to certification as a certified nurse assistant, partnerships of such schools and facilities, or partnerships of such programs and facilities to develop and implement, in coordination with other hospice and palliative care programs administered by the Department of Health and Human Services, programs and initiatives to train and educate individuals in providing interprofessional, interdisciplinary, team-based palliative care in health-related educational, hospital, hospice, home, or long-term care settings. (b) Use of funds Amounts made available to an awardee pursuant to subsection (a) shall be used to— (1) provide training to individuals who will provide palliative care in health-related educational, hospital, home, hospice, or long-term care settings; (2) develop and disseminate curricula relating to palliative care in health-related educational, hospital, home, hospice, or long-term care settings; (3) train faculty members in palliative care in health-related educational, hospital, home, hospice, or long-term care settings; and (4) provide continuing education to individuals who provide palliative care in health-related educational, home, hospice, or long-term care settings. 31013. Funding for dissemination of palliative care information (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until expended, for the purpose described in subsection (b). (b) Use of funds The Secretary, after consultation with appropriate medical and other health professional societies and palliative care and hospice stakeholders, shall use amounts appropriated by subsection (a) to award grants or contracts to public and nonprofit private entities to disseminate information to inform patients, families, caregivers, direct care workers, and health professionals about the benefits of palliative care throughout the continuum of care for patients with serious or life-threatening illness. Such awareness campaign shall include— (1) information, resources, communication, and education materials about palliative care for patients and families facing serious or life-threatening illnesses; (2) information regarding hospice and palliative care services, including information on how such services may— (A) incorporate age-friendly, patient-centered, and family-centered support throughout the continuum of care for serious and life-threatening illness; (B) anticipate, prevent, and treat pain; (C) optimize quality of life; and (D) facilitate and support the goals and values of patients and families; (3) materials that explain the role of professionals trained in hospice and palliative care in providing team-based care for patients and families throughout the continuum of care for serious or life-threatening illness; and (4) materials for specific populations, including patients with serious or life-threatening illness who are among medically underserved populations (as defined in section 330(b)(3) of the Public Health Service Act ( 42 U.S.C. 254b(b)(3) ) and families of such patients or health professionals serving medically underserved populations. 2 Pandemic preparedness 31021. Funding for laboratory activities at the Centers for Disease Control and Prevention (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,400,000,000 to remain available until expended, for purposes of carrying out activities consistent with subsection (b). (b) Use of funds The Secretary, acting through the Director of the Centers for Disease Control and Prevention, shall use amounts made available pursuant to subsection (a) for the following activities: (1) Supporting renovation, improvement, expansion, and modernization of State and local public health laboratory infrastructure (as the term laboratory is defined in section 353 of the Public Health Service Act ( 42 U.S.C. 263a )), including— (A) the improvement and enhancement of testing and response capacity; (B) improvements and expansion of the Laboratory Response Network for rapid outbreak detection; (C) the improvement and expansion of genomic sequencing capabilities to detect emerging diseases and variant strains; and (D) the improvement and expansion of biosafety and biosecurity capacity. (2) Enhancing the capacity of the laboratories of the Centers for Disease Control and Prevention as described in subparagraphs (A) through (D) of paragraph (1). (3) Enhancing the ability of the Centers for Disease Control and Prevention to monitor and exercise oversight over the biosafety and biosecurity of State and local public health laboratories. 31022. Funding for public health and preparedness research, development, and countermeasure capacity (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,300,000,000, to carry out activities to prepare for, and respond to, public health emergencies declared under section 319 of the Public Health Service Act ( 42 U.S.C. 247d ), as described in subsection (b), to remain available until expended. (b) Use of funds The Secretary, acting through the Assistant Secretary for Preparedness and Response, shall use amounts made available pursuant to subsection (a)— (1) to support surge capacity, including through construction, expansion, or modernization of facilities, to respond to a public health emergency, and for development, procurement, and domestic manufacture of drugs, active pharmaceutical ingredients, vaccines and other biological products, diagnostic technologies and products, medical devices (including personal protective equipment), vials, syringes, needles, and other components or supplies for the Strategic National Stockpile under section 319F–2 of the Public Health Service Act ( 42 U.S.C. 247d–6b ); (2) to support expanded vaccine production capacity and capabilities, including by developing or acquiring new technology and expanding manufacturing capacity through construction, expansion, or modernization of facilities; (3) to support activities to mitigate supply chain risks and enhance supply chain elasticity and resilience for critical drugs, active pharmaceutical ingredients, and supplies (including essential medicines, medical countermeasures, and supplies in shortage or at risk of shortage), drug and vaccine raw materials, and other supplies, as the Secretary determines appropriate, including construction, expansion, or modernization of facilities, adoption of advanced manufacturing processes, and other activities to support domestic manufacturing of such supplies; (4) to support activities conducted by the Biomedical Advanced Research and Development Authority for advanced research, standards development, and domestic manufacturing capacity for drugs, including essential medicines, diagnostics, vaccines, therapeutics, and personal protective equipment; and (5) to support increased biosafety and biosecurity in research on infectious diseases, including by modernization or improvement of facilities. 31023. Funding for infrastructure modernization and innovation at the Food and Drug Administration In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended, with respect to improving and modernizing infrastructure at the Food and Drug Administration and enhancing food and medical product safety— (1) $150,000,000 for improving technological infrastructure, including through developing integrated systems and improving the interoperability of information technology systems; and (2) $150,000,000 for modernizing laboratory infrastructure of, or used by, the Food and Drug Administration, including modernization of facilities related to, and supporting, such laboratory infrastructure, including through planning for, and the construction, repair, improvement, extension, alteration, demolition, and purchase of, fixed equipment or facilities. 3 Maternal mortality 31031. Funding for local entities addressing social determinants of maternal health (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until expended, for carrying out a program to award grants or contracts to community-based organizations, Indian Tribes and Tribal organizations, Urban Indian organizations, Native Hawaiian organizations, or other nonprofit organizations working with a community-based organization, or consortia of any such entities, operating in areas with high rates of adverse maternal health outcomes or with significant racial or ethnic disparities in maternal health outcomes. (b) Use of funding Amounts made available by subsection (a) shall be used for the following activities: (1) Addressing social determinants of health, including social determinants of maternal health, for pregnant and postpartum individuals and eliminating racial and ethnic disparities in maternal health outcomes by— (A) hiring, training, or retaining staff; (B) developing or distributing culturally and linguistically appropriate resources for social services programs; (C) offering programs and resources to address social determinants of health; (D) conducting demonstration projects to address social determinants of health; (E) establishing a culturally and linguistically appropriate resource center that provides multiple social services programs in a single location; and (F) consulting with pregnant and postpartum individuals to conduct an assessment of the activities conducted under this section. (2) Promoting evidence-based health literacy and pregnancy, childbirth, and parenting education for pregnant and postpartum individuals, and individuals seeking to become pregnant. (3) Providing support from perinatal health workers, including clinical and community-based staff members that provide direct care and support services to pregnant and postpartum individuals. (4) Providing culturally congruent, linguistically appropriate, and trauma-informed training to perinatal health workers, including clinical and community-based staff members that provide direct care and support services to pregnant and postpartum individuals. (c) Technical assistance Using amounts made available under subsection (a), the Secretary shall— (1) conduct outreach to eligible entities to apply for grants or contracts under subsection (a); and (2) provide technical assistance, including through a grant or contract, to eligible entities receiving funding pursuant to subsection (a). 31032. Funding for the Office of Minority Health (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until expended, for carrying out a program to award grants or contracts to community-based organizations operating in areas with high rates of adverse maternal health outcomes or with significant racial or ethnic disparities in maternal health outcomes. (b) Use of funds The Secretary, acting through the Deputy Assistant Secretary for Minority Health, shall use amounts made available under subsection (a) to award grants for the following activities: (1) Addressing social determinants of health, including social determinants of maternal health, for pregnant and postpartum individuals and eliminating racial and ethnic disparities in maternal health outcomes by— (A) hiring, training, or retaining staff; (B) developing or distributing culturally and linguistically appropriate resources for social services programs; (C) offering programs and resources to address social determinants of health; (D) conducting demonstration projects to address social determinants of health; (E) establishing a culturally and linguistically appropriate resource center that provides multiple social services programs in a single location; and (F) consulting with pregnant and postpartum individuals to conduct an assessment of the activities conducted under this section. (2) Promoting evidence-based health literacy and pregnancy, childbirth, and parenting education for pregnant and postpartum individuals, and individuals seeking to become pregnant. (3) Providing support from perinatal health workers, including clinical and community-based staff members that provide direct care and support services to pregnant and postpartum individuals. (4) Providing culturally congruent, linguistically appropriate, and trauma-informed training to perinatal health workers, including clinical and community-based staff members that provide direct care and support services to pregnant and postpartum individuals. (c) Technical assistance Using amounts made available under subsection (a), the Secretary shall— (1) conduct outreach to eligible entities to apply for grants or contracts under subsection (a); and (2) provide technical assistance, including through a grant or contract, to eligible entities receiving funding pursuant to subsection (a). 31033. Funding to grow and diversify the nursing workforce in maternal and perinatal health (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $170,000,000, to remain available until expended, for carrying out a program to award grants or contracts to accredited schools of nursing for the purpose of growing and diversifying the perinatal nursing workforce, including through improving the capacity and supply of health care providers. (b) Uses of funds (1) Awardees Prioritizing students and registered nurses who plan to practice or currently practice in an underserved area, amounts made available to awardees by subsection (a) shall, consistent with section 846 of the Public Health Service Act ( 42 U.S.C. 297n ), be used for the following activities: (A) Providing scholarships to students, including those from racial and ethnic groups underrepresented in the health professions, seeking to become nurse practitioners whose education includes a focus on maternal and perinatal health. (B) Providing scholarships to students seeking to become clinical nurse specialists whose education includes a focus on maternal and perinatal health. (C) Providing scholarships to students seeking to become certified nurse midwives. (D) Providing scholarships to registered nurses seeking certification as an obstetrics and gynecology registered nurse. (2) Secretary The Secretary shall use amounts made available pursuant to subsection (a) for the following activities: (A) Developing and implementing strategies to recruit and retain a diverse pool of students seeking to enter careers focused on maternal and perinatal health. (B) Developing partnerships with practice settings in an underserved area for the clinical placements of students at the schools receiving such grants. (C) Developing curriculum for students seeking to enter careers focused on maternal and perinatal health that includes training programs on bias, racism, discrimination, providing culturally competent care, or trauma-informed care. 31034. Funding for perinatal quality collaboratives In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for carrying out a program to establish or support perinatal quality collaboratives to improve perinatal care and perinatal health outcomes for pregnant and postpartum individuals and their infants. 31035. Funding to grow and diversify the doula workforce (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for carrying out a program to award grants or contracts to health professions schools, academic health centers, State or local governments, territories, Indian Tribes and Tribal organizations, Urban Indian organizations, Native Hawaiian organizations, or other appropriate public or private nonprofit entities (or consortia of any such entities, including entities promoting multidisciplinary approaches), to establish or expand programs to grow and diversify the doula workforce, including through improving the capacity and supply of health care providers. (b) Use of funds Amounts made available by subsection (a) shall be used for the following activities: (1) Establishing programs that provide education and training to individuals seeking appropriate training or certification as doulas. (2) Expanding the capacity of existing programs described in paragraph (1), for the purpose of increasing the number of students enrolled in such programs, including by awarding scholarships for students who agree to work in underserved communities after receiving such education and training. (3) Developing and implementing strategies to recruit and retain students from underserved communities, particularly from demographic groups experiencing high rates of maternal mortality and severe maternal morbidity, including racial and ethnic minority groups, into programs described in paragraphs (1) and (2). 31036. Funding to grow and diversify the maternal mental health and substance use disorder treatment workforce (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until expended, for carrying out a program to award grants or contracts to health professions schools, academic health centers, State or local governments, territories, Indian Tribes and Tribal organizations, Urban Indian organizations, Native Hawaiian organizations, or other appropriate public or private nonprofit entities (or consortia of any such entities, including entities promoting multidisciplinary approaches), to establish or expand programs to grow and diversify the maternal mental health and substance use disorder treatment workforce, including through improving the capacity and supply of health care providers. (b) Use of funds Amounts made available by subsection (a) shall be used for the following activities: (1) Establishing programs that provide education and training to individuals seeking appropriate licensing or certification as mental health or substance use disorder treatment providers who plan to specialize in maternal mental health conditions or substance use disorders. (2) Expanding the capacity of existing programs described in paragraph (1), for the purposes of increasing the number of students enrolled in such programs, including by awarding scholarships for students. (3) Developing and implementing strategies to recruit and retain students from underserved communities into programs described in paragraphs (1) and (2). 31037. Funding for maternal mental health equity grant programs (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until expended, for carrying out a program to award grants or contracts to community-based organizations, Indian Tribes and Tribal organizations, Urban Indian organizations, Native Hawaiian organizations, health care providers, accredited medical schools, accredited schools of nursing, teaching hospitals, accredited midwifery programs, physician assistant education programs, residency or fellowship programs, or other nonprofit organizations, schools, or programs determined appropriate by the Secretary, or consortia of any such entities, to address maternal mental health conditions and substance use disorders with respect to pregnant, lactating, and postpartum individuals in areas with high rates of adverse maternal health outcomes or with significant racial or ethnic disparities in maternal health outcomes. (b) Use of funds Amounts made available pursuant to subsection (a), prioritizing community-based organizations, shall be for the following activities: (1) Establishing or expanding maternity care programs to improve— (A) the integration of mental health and substance use disorder treatment services into primary care settings where pregnant individuals regularly receive health care services; and (B) the coordination between such primary care settings and mental health and substance use disorder professionals who treat maternal mental health conditions and substance use disorders. (2) Establishing or expanding programs that improve maternal mental health and substance use disorder treatment from the preconception through the postpartum periods, with a focus on individuals from racial and ethnic minority groups with high rates of maternal mortality and morbidity. (3) Establishing or expanding programs to prevent suicide or self-harm among pregnant, lactating, and postpartum individuals. (4) Establishing or expanding programs to provide education and training to maternity care providers, with respect to identifying potential warning signs for maternal mental health conditions or substance use disorders in pregnant, lactating, and postpartum individuals, with a focus on individuals from racial and ethnic minority groups and offering referrals to mental health substance use disorder treatment professionals. (5) Raising awareness of, and addressing stigma associated with, maternal mental health conditions and substance use disorders, with a focus on pregnant, lactating, and postpartum individuals from racial and ethnic minority groups. (6) Carrying out other evidence-based or evidence-informed programs to address maternal mental health conditions and substance use disorders for pregnant and postpartum individuals from racial and ethnic minority groups. 31038. Funding for education and training at health professions schools to identify and address health risks associated with climate change (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $85,000,000, to remain available until expended, for carrying out a program to award grants or contracts to accredited medical schools, accredited schools of nursing, teaching hospitals, accredited midwifery programs, physician assistant education programs, residency or fellowship programs, or other schools or programs determined appropriate by the Secretary, or consortia of any such entities, to support the development and integration of education and training programs for identifying and addressing health risks associated with climate change for pregnant, lactating, and postpartum individuals. (b) Use of funds Amounts made available by subsection (a) shall be used for developing, integrating, and implementing curriculum and continuing education that focuses on the following: (1) Identifying health risks associated with climate change for pregnant, lactating, and postpartum individuals and individuals with the intent to become pregnant. (2) How health risks associated with climate change affect pregnant, lactating, and postpartum individuals and individuals with the intent to become pregnant. (3) Racial and ethnic disparities in exposure to, and the effects of, health risks associated with climate change for pregnant, lactating, and postpartum individuals and individuals with the intent to become pregnant. (4) Patient counseling and mitigation strategies relating to health risks associated with climate change for pregnant, lactating, and postpartum individuals. (5) Relevant services and support for pregnant, lactating, and postpartum individuals relating to health risks associated with climate change and strategies for ensuring such individuals have access to such services and support. (6) Implicit and explicit bias, racism, and discrimination in providing care to pregnant, lactating, and postpartum individuals and individuals with the intent to become pregnant. 31039. Funding for minority-serving institutions to study maternal mortality, severe maternal morbidity, and adverse maternal health outcomes (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended for carrying out a program to award grants or contracts to minority-serving institutions described in section 371 of the Higher Education Act of 1965 ( 20 U.S.C. 1067q ) to study maternal mortality, severe maternal morbidity, and maternal health outcomes. (b) Use of funds Amounts made available to an awardee under subsection (a) shall be used for the purpose specified in such subsection, including the following activities: (1) Developing and implementing systematic processes of listening to the stories of pregnant and postpartum individuals from racial and ethnic minority groups, and perinatal health workers supporting such individuals, to fully understand the causes of, and inform potential solutions to, the maternal mortality and severe maternal morbidity crisis within their respective communities. (2) Assessing the potential causes of relatively low rates of maternal mortality among Hispanic individuals and foreign-born Black women. (3) Assessing differences in rates of adverse maternal health outcomes among subgroups identifying as Hispanic. (4) Conducting research on maternal morbidity and mortality, with a focus on health disparities. (c) Technical assistance Using amounts made available by subsection (a), the Secretary shall conduct outreach to minority-serving institutions (as described in section 371 of the Higher Education Act of 1965 ( 20 U.S.C. 1067q ))— (1) to inform and raise awareness of the availability funding through a grant or contract awarded pursuant to this section; (2) to provide technical assistance, including through a grant or contract, on the application process for grants or contracts awarded pursuant to subsection (a); and (3) to promote capacity building to eligible entities for grant applications pursuant to subsection (a). 31040. Funding for identification of maternity care health professional target areas In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until expended, for carrying out section 332(k) of the Public Health Service Act ( 42 U.S.C. 254e(k) ). 31041. Funding for maternal mortality review committees to promote representative community engagement In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for carrying out section 317K(d) of the Public Health Service Act ( 42 U.S.C. 247b–12(d) ) to promote community engagement in maternal mortality review committees to increase the diversity of a committee’s membership with respect to race and ethnicity, location, and professional background. 31042. Funding for the surveillance for emerging threats to mothers and babies (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until expended, for carrying out section 317C of the Public Health Service Act ( 42 U.S.C. 247b–4 ) with respect to conducting surveillance for emerging threats to mothers and babies. (b) Use of funds Amounts made available by subsection (a) shall be used for the following activities: (1) Expanding the Surveillance for Emerging Threats to Mothers and Babies activities of the Centers for Disease Control and Prevention. (2) Working with public health, clinical, and community-based organizations to provide timely, continually updated, evidence-based guidance to families and health care providers on ways to reduce risk to pregnant and postpartum individuals and their newborns and tailor interventions to improve their long-term health. (3) Partnering with more State, Tribal, territorial, and local public health programs in the collection and analysis of clinical data on the impact of COVID–19 on pregnant and postpartum patients and their newborns, particularly among patients from racial and ethnic minority groups. (4) Establishing regionally based centers of excellence to offer medical, public health, and other knowledge (in coordination with State and Tribal public health authorities) to ensure that communities, especially communities with large populations of individuals from racial and ethnic minority groups, can help pregnant and postpartum individuals and newborns get the care and support they need. 31043. Funding for enhancing reviews and surveillance to eliminate maternal mortality program (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended, for carrying out the Enhancing Reviews and Surveillance to Eliminate Maternal Mortality program established under section 317K of the Public Health Service Act ( 42 U.S.C. 247b–12 ). (b) Use of funds Amounts made available by subsection (a) shall be used for the following activities: (1) Expanding the Enhancing Reviews and Surveillance to Eliminate Maternal Mortality program (commonly known as the ERASE MM program ) of the Centers for Disease Control and Prevention. (2) Expanding partnerships with States, territories, Indian Tribes, and Tribal organizations to support Maternal Mortality Review Committees. (3) Providing technical assistance to existing maternal mortality review committees. 31044. Funding for the pregnancy risk assessment monitoring system (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until expended, for carrying out section 317K of the Public Health Service Act ( 42 U.S.C. 247b–12 ) with respect to the Pregnancy Risk Assessment Monitoring System. (b) Use of funds Amounts made available by subsection (a) shall be used for the following activities: (1) Supporting COVID–19 supplements to the Pregnancy Risk Assessment Monitoring System questionnaire. (2) Conducting a rapid assessment of COVID–19 awareness, impact on care and experiences, and use of preventive measures among pregnant, laboring and birthing, and postpartum individuals. (3) Supporting the transition of the questionnaire described in paragraph (1) to an electronic platform and expanding the distribution of the questionnaire to a larger population, with a special focus on reaching underrepresented communities. 31045. Funding for the National Institute of Child Health and Human Development In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until expended, consistent with the child health and human development activities of the Eunice Kennedy Shriver National Institute of Child Health and Human Development described in section 448 of the Public Health Service Act ( 42 U.S.C. 285g ), to conduct or support research for interventions to mitigate the effects of COVID–19 on pregnant, lactating, and postpartum individuals, with a particular focus on individuals from racial and ethnic minority groups. 31046. Funding for expanding the use of technology-enabled collaborative learning and capacity building models for pregnant and postpartum individuals (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended, for carrying out a program to award grants or contracts to community-based organizations, Indian Tribes and Tribal organizations, Urban Indian organizations, health care providers, accredited medical schools, accredited schools of nursing, teaching hospitals, accredited midwifery programs, physician assistant education programs, residency or fellowship programs, or other schools or programs determined appropriate by the Secretary, or consortia of any such entities, that are operating in underserved areas with high rates of adverse maternal health outcomes or significant racial and ethnic disparities in maternal health outcomes, to evaluate, develop, and expand the use of technology-enabled collaborative learning and capacity building models (as defined in section 330N of the Public Health Service Act ( 42 U.S.C. 254c–20 )). (b) Use of funds (1) Awardees A recipient of a grant or contract awarded pursuant to subsection (a) shall use such amounts to— (A) train maternal health care providers, students, staff of community-based organizations, and other entities described in subsection (a) through the use and expansion of technology-enabled collaborative learning and capacity building models, including hardware and software that— (i) enables distance learning and technical support; and (ii) supports the secure exchange of electronic health information; and (B) conduct evaluations on the use of technology-enabled collaborative learning and capacity building models to improve maternal health outcomes. (2) Secretary The Secretary shall use amounts made available pursuant to subsection (a) to provide technical assistance to recipients of grants awarded pursuant to subsection (a) on the development, use, and sustainability of technology-enabled collaborative learning and capacity building models to expand access to maternal health services provided by such entities. 31047. Funding for promoting equity in maternal health outcomes through digital tools (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended, for carrying out a program to award grants or contracts to community-based organizations, Indian Tribes and Tribal organizations, Urban Indian organizations, health care providers, accredited medical schools, accredited schools of nursing, teaching hospitals, accredited midwifery programs, physician assistant education programs, residency or fellowship programs, or other schools or programs determined appropriate by the Secretary, or consortia of any such entities, that are operating in underserved areas with high rates of adverse maternal health outcomes or significant racial and ethnic disparities in maternal health outcomes to reduce racial and ethnic disparities in maternal health outcomes by increasing access to digital tools related to maternal health care. (b) Use of funds Amounts made available to an awardee pursuant to subsection (a) shall be used for the purpose specified in such subsection, including for increasing access to telehealth technologies (as defined in section 330I of the Public Health Service Act ( 42 U.S.C. 254c–14 )) and digital tools that could improve maternal health outcomes, such as wearable technologies, patient portals, telehealth services, and web-based and mobile phone applications, digital health services, secure text messaging, online provider communities, mobile clinical decision support services, and clinical tools to increase diagnostic accuracy. (c) Technical assistance Using amounts made available under subsection (a), the Secretary shall provide technical assistance, including through a grant or contract, to eligible entities receiving funding pursuant to subsection (a) on the development, use, evaluation, and post-grant sustainability of digital tools designed to promote equity and reduce disparities in maternal health outcomes. 31048. Funding for antidiscrimination and bias training (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for the purpose described in subsection (b). (b) Use of funds The Secretary shall, with a focus on maternal health providers, use amounts appropriated under subsection (a) to carry out a program to award competitive grants or contracts to national nonprofit organizations focused on improving health equity, accredited schools of medicine or nursing, and other health professional training programs to develop, disseminate, review, research, and evaluate training for health professionals and all staff who interact with patients to reduce discrimination and bias in the provision of health care, with a focus on maternal health care. 4 Other public health investments 31051. Funding for mental health and substance use disorder professionals In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for purposes of carrying out section 597 of the Public Health Service Act ( 42 U.S.C. 290ll ). 31052. Funding to support peer recovery specialists In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until expended, to carry out section 509 of the Public Health Service Act ( 42 U.S.C. 290bb–2 ) with respect to strengthening recovery community organizations and their statewide network of recovery stakeholders. 31053. Funding for Project Aware In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until expended, for carrying out section 520A of the Public Health Service Act ( 42 U.S.C. 290bb–32 ) with respect to advancing wellness and resiliency in education. 31054. Funding for the National Suicide Prevention Lifeline In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until expended, for advancing infrastructure for the National Suicide Prevention Lifeline program under section 520E–3 of the Public Health Service Act ( 42 U.S.C. 290bb–36c ) in order to expand existing capabilities for response in a manner that avoids duplicating existing capabilities for text-based crisis support. 31055. Funding for community violence and trauma interventions (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated $2,500,000,000, to remain available until expended, for the purposes described in subsection (b): (b) Use of funding The Secretary, acting through the Director of the Centers for Disease Control and Prevention, and in consultation with the Assistant Secretary for Mental Health and Substance Use, the Administrator of the Health Resources and Services Administration, the Deputy Assistant Secretary for Minority Health, and the Assistant Secretary for the Administration for Children and Families, shall use amounts appropriated by subsection (a) to support public health-based interventions to reduce community violence and trauma, taking into consideration the needs of communities with high rates of, and prevalence of risk factors associated with, violence-related injuries and deaths, by— (1) awarding competitive grants or contracts to local governmental entities, States, territories, Indian Tribes and Tribal organizations, Urban Indian organizations, hospitals and community health centers, nonprofit community-based organizations, culturally specific organizations, victim services providers, or other entities as determined by the Secretary (or consortia of such entities) to support evidence-informed, culturally competent, and developmentally appropriate strategies to reduce community violence, including outreach and conflict mediation, hospital-based violence intervention, violence interruption, and services for victims and individuals and communities at risk for experiencing violence, such as trauma-informed mental health care and counseling, social-emotional learning and school-based mental health services, workforce development services, and other services that prevent or mitigate the impact of trauma, build appropriate skills, or promote resilience; and (2) supporting training, technical assistance, research, evaluation, public health surveillance systems, data collection, and coordination among relevant stakeholders, to facilitate support for strategies to reduce community violence and ensure safe and healthy communities. (c) Supplement not supplant Amounts appropriated under this section shall be used to supplement and not supplant any Federal, State, or local funding otherwise made available for the purposes described in this section. (d) Expenditure requirement All expenditures made pursuant to subsection (a) shall be made on or before September 30, 2031. 31056. Funding for the National Child Traumatic Stress Network In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until expended, for carrying out section 582 of the Public Health Service Act ( 42 U.S.C. 290hh–1 ) with respect to addressing the problem of high-risk or medically underserved persons who experience violence-related stress. 31057. Funding for HIV health care services programs In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until expended, for necessary expenses for modifications to existing contracts, and supplements to existing grants and cooperative agreements under sections 2601, 2611, 2651, 2671, and 2692(a) of the Public Health Service Act (42 U.S. Code 300ff–11, 300ff–21, 300ff–51, 300ff–71, 300ff–111). 31058. Funding for clinical services demonstration project In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $60,000,000, to remain available until expended, to, acting through the Administrator of the Health Resources and Services Administration, carry out a program to award grants or contracts to public and private nonprofit clinics for the provision of clinical services, pursuant to a demonstration project under section 318(b)(2) of the Public Health Service Act ( 42 U.S.C. 247c(b)(2) ). 31059. Funding to support the lifespan respite care program In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until expended, for carrying out sections 2902, 2903, and 2904 of the Public Health Service Act ( 42 U.S.C. 300ii–1 , 300ii–2, 300ii–3). 31060. Funding to increase research capacity at certain institutions (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available until expended, for the purposes described in subsection (b). (b) Use of funds The Secretary, acting through the Director of the National Institutes of Health, shall use amounts made available under subsection (a) to— (1) maintain and expand programs to increase research capacity at minority-serving institutions (as described in section 371 of the Higher Education Act of 1965 ( 20 U.S.C. 1067q )), including by supporting the Path to Excellence and Innovation program of the National Institutes of Health; (2) support centers of excellence under sections 464z–4 and 736 of the Public Health Service Act ( 42 U.S.C. 285t–1 , 293); (3) support efforts to diversify the national scientific workforce and expand recruitment and retention of individuals who are— (A) underrepresented in the biomedical, clinical, behavioral, and social sciences; and (B) from disadvantaged backgrounds; and (4) support and expand the activities of the Scientific Workforce Diversity Office of the National Institutes of Health. 31061. Funding for research related to developmental delays (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, for the purpose described in subsection (b). (b) Use of funds The Secretary, acting through the Director of the National Institutes of Health, shall use amounts appropriated by subsection (a) to conduct or support research related to developmental delays, including speech and language delays in infants and toddlers, characterizing speech and language development and outcomes in infants and toddlers through early adolescence. Such research shall include studies, including longitudinal studies, conducted or supported by the National Institute on Deafness and Other Communication Disorders, the Eunice Kennedy Shriver National Institute of Child Health and Human Development, and other relevant institutes and centers of the National Institutes of Health. (c) Supplement, not supplant Amounts made available to carry out this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to conduct or support research related to developmental delays, including speech and language delays, in infants, toddlers, and children. 31062. Supplemental funding for the World Trade Center Health Program (a) In general Title XXXIII of the Public Health Service Act is amended by adding at the end the following: 3352. Supplemental Fund (a) In general There is established a fund to be known as the World Trade Center Health Program Supplemental Fund (referred to in this section as the Supplemental Fund ), consisting of amounts deposited into the Supplemental Fund under subsection (b). (b) Amount Out of any money in the Treasury not otherwise appropriated, there is appropriated for fiscal year 2022, $2,860,000,000, for deposit into the Supplemental Fund, which amounts shall remain available through fiscal year 2031. (c) Use of funds Amounts deposited into the Supplemental Fund under subsection (b) shall be available, without further appropriation and without regard to any spending limitation under section 3351(c), to the WTC Program Administrator as needed at the discretion of such Administrator for carrying out any provision in this title, including sections 3303 and 3341(c). (d) Return of funds Any amounts that remain in the Supplemental Fund on September 30, 2031, shall be deposited into the Treasury as miscellaneous receipts. . (b) Conforming amendments Title XXXIII of the Public Health Service Act is amended— (1) in section 3311(a)(4)(B)(i)(II) ( 42 U.S.C. 300mm–21(a)(4)(B)(i)(II) ), by striking section 3351 and inserting sections 3351 and 3352 ; (2) in section 3321(a)(3)(B)(i)(II) ( 42 U.S.C. 300mm–31(a)(3)(B)(i)(II) ), by striking section 3351 and inserting sections 3351 and 3352 ; (3) in section 3331 ( 42 U.S.C. 300mm–41 )— (A) in subsection (a), by inserting and the World Trade Center Health Program Supplemental Fund before the period at the end; and (B) in subsection (d)— (i) in paragraph (1)(B), by inserting (excluding any expenditures from amounts in the World Trade Center Health Program Supplemental Fund under section 3352) before the period at the end; and (ii) in paragraph (2), in the flush text following subparagraph (C), by inserting (excluding any expenditures from amounts in the World Trade Center Health Program Supplemental Fund under section 3352) before the period at the end; and (4) in section 3351(b) ( 42 U.S.C. 300mm–61(b) )— (A) in paragraph (2), by inserting or as available from the World Trade Center Health Program Supplemental Fund under section 3352 before the period at the end; and (B) in paragraph (3), by inserting or as available from the World Trade Center Health Program Supplemental Fund under section 3352 before the period at the end. 5 Native Hawaiian Provisions 31071. Native Hawaiian health care systems (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for the Secretary, not later than 180 days after the date of enactment of this Act, to award grants to, or enter into contracts with, Papa Ola Lokahi to support services described in section 6(c) of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705(c) ) in accordance with this section. (b) Use of funds Amounts made available to an awardee pursuant to subsection (a) shall be used for— (1) the purchase, construction, alteration, renovation, or equipping of health facilities; (2) maintenance and improvement projects; (3) information technology, telehealth infrastructure, electric health records systems, and medical equipment; and (4) awarding grants to, or entering into contracts with, Native Hawaiian health care systems (directly, or through subgrants or subcontracts) to support services described in section 6(c) of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705(c) ), on the condition that such grants or contracts may only be used for the purposes and uses described in paragraphs (1) through (3). (c) Waiver of certain restrictions Subsections (e) and (f)(4) of section 6 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705(e) , 11705(f)(4)) shall not apply to grants (or subgrants) made using amounts made available under subsection (a). (d) Definitions In this section: (1) Native Hawaiian health care system The term Native Hawaiian health care system has the meaning given the term in section 12 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11711 ). (2) Papa Ola Lokahi The term Papa Ola Lokahi has the meaning given the term in section 12 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11711 ). 31072. Native Hawaiian health improvement grants (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $224,000,000, to remain available until September 30, 2031, to award grants to eligible Native Hawaiian entities to improve the health status of Native Hawaiians, including by providing to Native Hawaiians comprehensive health promotion services, disease prevention services, and primary health services, as described in section 6(c) of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705(c) ). (b) Definition of eligible Native Hawaiian entity In this section, the term eligible Native Hawaiian entity means— (1) Papa Ola Lokahi (as defined in section 12 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11711 )); (2) a Native Hawaiian health care system (as defined in section 12 of that Act ( 42 U.S.C. 11711 )); (3) a Native Hawaiian organization (as defined in section 12 of that Act ( 42 U.S.C. 11711 )); (4) a consortium of 2 or more entities described in paragraphs (1) through (3); and (5) a consortium that contains at least 1 entity described in any of paragraphs (1) through (3). 31073. Native Hawaiian health care systems liability coverage (a) In general Subject to subsections (b) and (c), the Secretary shall apply section 102(d) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5321(d) ) to— (1) a Native Hawaiian health care system that receives a grant from or enters into a contract with the Secretary under section 6 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705 ) to the same extent as section 102(d) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5321(d) ) applies to an Indian Tribe, a Tribal organization, and an Indian contractor that carries out a contract, grant agreement, or cooperative agreement, as applicable, under section 102 or 103 of that Act ( 25 U.S.C. 5321 , 5322); and (2) the employees of a Native Hawaiian health care system that receives a grant from or enters into a contract with the Secretary under section 6 of the Native Hawaiian Health Care Improvement Act ( 42 U.S.C. 11705 ) to the same extent as section 102(d) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5321(d) ) applies to the employees of an Indian Tribe, a Tribal organization, or an Indian contractor that carries out a contract, grant agreement, or cooperative agreement, as applicable, under section 102 or 103 of that Act ( 25 U.S.C. 5321 , 5322). (b) Effective date For purposes of subsection (a), each reference to December 22, 1987, and the reference to the date of enactment of the Indian Self-Determination and Education Assistance Act Amendments of 1990 contained in section 102(d) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5321(d) ) shall be deemed to be a reference to the date of enactment of this section. (c) Sunset This section shall cease to have force or effect on October 1, 2031. J Next Generation 9–1–1 31101. Deployment of Next Generation 9–1–1 (a) Appropriation (1) In general In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $470,000,000, to remain available until September 30, 2030, to make grants to eligible entities for implementing and maintaining Next Generation 9–1–1 in accordance with subsection (b). (2) Administrative expenses In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2030, to administer this section. (b) Use of funds An eligible entity may use grant funds received under this section for— (1) reasonable costs associated with planning, implementation, and development activities, including such activities related to the grant application; (2) deployment, operation, and maintenance of interoperable and reliable Next Generation 9–1–1, including ensuring the cybersecurity of Next Generation 9–1–1; and (3) training of personnel related to Next Generation 9–1–1. (c) Clawback The Assistant Secretary shall recover some or all of the grant funds made available to an eligible entity under this section if— (1) the eligible entity uses the funds for any other purpose than those set forth in subsection (b); (2) the eligible entity fails to establish a funding mechanism for Next Generation 9–1–1 sufficient to cover operations, maintenance, and upgrade costs within 3 years of the establishment of the grant program; (3) the eligible entity engages in the diversion of any 9–1–1 fee or charge imposed by the eligible entity; or (4) the eligible entity uses funds to purchase, rent, lease, or otherwise obtain covered communications equipment or services (as defined in section 9 of the Secure and Trusted Communications Networks Act of 2019 ( 47 U.S.C. 1608 )). 31102. Establishment of Next Generation 9–1–1 Cybersecurity Center In addition to amounts otherwise available, there is appropriated to the National Telecommunications and Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,000,000, to remain available until September 30, 2030, for the establishment of a Next Generation 9–1–1 Cybersecurity Center to coordinate with State, local, and regional governments on the sharing of cybersecurity information about, the analysis of cybersecurity threats to, and strategies to detect and prevent cybersecurity intrusions relating to, Next Generation 9–1–1. 31103. Public Safety Next Generation 9–1–1 Advisory Board In addition to amounts otherwise available, there is appropriated to the National Telecommunications and Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000, to remain available until September 30, 2030, to establish a 16-member Public Safety Next Generation 9–1–1 Advisory Board, consisting of public safety officials and 9–1–1 professionals from diverse backgrounds and with the necessary technical expertise, to provide recommendations to the Assistant Secretary with respect to carrying out the duties and responsibilities of the Assistant Secretary related to Next Generation 9–1–1, including with respect to the grant program established under section 31101. 31104. Definitions In this subtitle: (1) 9–1–1 fee or charge The term 9–1–1 fee or charge has the meaning given the term in section 6(f)(3)(D) of the Wireless Communications and Public Safety Act of 1999 ( 47 U.S.C. 615a–1(f)(3)(D) ). (2) Assistant secretary The term Assistant Secretary means the Assistant Secretary of Commerce for Communications and Information. (3) Commonly accepted standards The term commonly accepted standards means the technical standards followed by the communications industry for network, device, and Internet Protocol connectivity that— (A) ensure interoperability by enabling emergency communications centers to receive, process, and analyze all types of 9–1–1 requests for emergency assistance (including multimedia and data) and share such requests with other emergency communications centers and emergency response providers without the need for proprietary interfaces and regardless of jurisdiction, equipment, device, software, service provider, or any other factor; and (B) are developed and approved by a standards development organization that is accredited by a United States or international standards body through a process— (i) that is consensus-based and open for participation, provides conflict resolution, and invites comment; and (ii) through which standards are made publicly available once approved. (4) Eligible entity The term eligible entity means a State or a Tribal organization that has— (A) named a single point of contact to coordinate the implementation of Next Generation 9–1–1; and (B) developed and submitted a plan for the coordination and implementation of Next Generation 9–1–1 consistent with any requirements of the Assistant Secretary. (5) Next generation 9–1–1 The term Next Generation 9–1–1 means an interoperable, secure, Internet Protocol-based system that— (A) employs commonly accepted standards; (B) enables emergency communications centers to receive, process, and analyze all types of 9–1–1 requests for emergency assistance; (C) acquires and integrates additional information useful to handling 9–1–1 requests for emergency assistance; (D) supports sharing information related to 9–1–1 requests for emergency assistance among emergency communications centers and emergency response providers without the need for proprietary interfaces and regardless of jurisdiction, equipment, device, software, service provider, or any other factor; and (E) ensures reliability by enabling ongoing operation, including through the use of geo-diverse device and network agnostic elements that provide more than 1 physical route between end points with no common points where a single failure at that point would cause the operation of Next Generation 9–1–1 to fail. (6) State The term State means any State of the United States, the District of Columbia, Puerto Rico, American Samoa, Guam, the United States Virgin Islands, the Northern Mariana Islands, and any other territory or possession of the United States. K Other Matters Related to Connectivity 31201. Outreach In addition to amounts otherwise available, there is appropriated to the Federal Communications Commission for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, to conduct outreach and provide education to the public regarding the broadband and communications affordability programs of the Federal Communications Commission to raise awareness about the programs and help consumers access the programs. 31202. Future of Telecommunications Council In addition to amounts otherwise available, there is appropriated to the Secretary of Commerce for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,000,000, to remain available until September 30, 2031, to establish a council of 14 members in coordination with the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Energy and Commerce of the House of Representatives, the Deputy Secretary of Commerce, the Assistant Secretary of Commerce for Communications and Information, the Under Secretary of Commerce for Standards and Technology, the Chair of the Federal Communications Commission, the Director of the National Science Foundation, the Majority Leader of the Senate, and the Speaker of the House of Representatives, to be known as the Future of Telecommunications Council , to advise Congress on the development and adoption of 6G and other advanced wireless communications technologies, including ensuring equity in access to those technologies for communities of color and rural communities. 31203. Affordability (a) Definitions In this section: (1) Broadband; broadband service The term broadband or broadband service has the meaning given the term broadband internet access service in section 8.1 of title 47, Code of Federal Regulations, or any successor regulation. (2) Covered broadband service The term covered broadband service means broadband service being delivered through a broadband network that can easily scale speeds over time to— (A) meet the evolving connectivity needs of households and businesses; and (B) support the deployment of 5G, successor wireless technologies, and other advanced services. (3) Covered public-private partnership The term covered public-private partnership means a partnership between— (A) a State, 1 or more political subdivisions of a State, a utility (including a utility cooperative), a public utility district, a nonprofit organization, a regional planning council, or an economic development authority; and (B) a provider of covered broadband service. (4) State The term State means any State of the United States, the District of Columbia, Puerto Rico, American Samoa, Guam, the United States Virgin Islands, the Northern Mariana Islands, and any other territory or possession of the United States. (b) Funding (1) Pilot projects In addition to amounts otherwise available, there is appropriated to the National Telecommunications and Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $280,000,000, to remain available until September 30, 2031, for grants to covered public-private partnerships for pilot projects to increase access to affordable covered broadband service in urban communities, including communities of color and for low- and middle-income consumers, through long-term solutions for such affordability. (2) Administration In addition to amounts otherwise available, there is appropriated to the National Telecommunications and Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2031, to administer this section. (3) Advisory committee In addition to amounts otherwise available, there is appropriated to the National Telecommunications and Information Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to establish an advisory committee of 12 members consisting of experts on broadband affordability from diverse backgrounds, to be known as the Affordable Urban and Suburban Broadband Advisory Committee , to advise the National Telecommunications and Information Administration, the Federal Communications Commission, and Congress on ways to make broadband more affordable for urban and suburban broadband subscribers, including for communities of color and low- and middle-income consumers, through long-term solutions for such affordability. 31204. Access to devices (a) Definitions In this section: (1) Assistant Secretary The term Assistant Secretary means the Assistant Secretary of Commerce for Communications and Information. (2) Connected device The term connected device means any of the following devices that meets minimum standards established by the Assistant Secretary: (A) A WiFi-enabled desktop computer. (B) A WiFi-enabled laptop computer. (C) A WiFi-enabled tablet computer. (D) Any similar WiFi-enabled device (except for a telephone or smartphone). (3) Connected device distribution program The term connected device distribution program means a program approved by the Assistant Secretary that makes available connected devices for free or at a low cost to an eligible household. (4) Eligible household The term eligible household means a household in which— (A) at least one member of the household meets the qualifications for the Lifeline program of the Federal Communications Commission, except that a household shall be deemed to meet the income component of those qualifications if the household’s income is at or below 200 percent of the Federal Poverty Guidelines for a household of that size; (B) at least one member of the household has applied for and been approved to receive benefits under the free and reduced price lunch program or the school breakfast program; (C) at least one member of the household has received a Federal Pell Grant in the current award year, if such award is verifiable through the National Verifier or National Lifeline Accountability Database or a connected device distribution program verifies eligibility; or (D) at least one member of the household receives assistance through the special supplemental nutritional program for women, infants, and children. (b) Connected device grant program (1) Appropriations (A) In general In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $475,000,000, to remain available until September 30, 2031, for the awarding of grants to connected device distribution programs in accordance with this section. (B) Administration In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, to administer this section, including providing technical assistance to a connected device distribution program. (C) Outreach In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to conduct outreach related to the availability of grants under this section. (2) Use of funds (A) In general A connected device distribution program shall use grant funds received under this section for— (i) the reasonable purchase or refurbishment cost of connected devices for distribution to eligible households consistent with this section; and (ii) the reasonable administrative costs associated with the distribution of connected devices described in clause (i). (B) Limitation A connected device distribution program may use grant funds received under this section to provide not more than— (i) 1 connected device to an eligible household that includes not more than 2 members over the age of 6; or (ii) 2 connected devices to an eligible household that includes not fewer than 3 members over the age of 6. (3) Clawback If a connected device distribution program is found to have used grant funds awarded under this section in a manner not permitted under this section or is found to have otherwise violated a requirement under this section, the Assistant Secretary shall recover from the program some or all of the grant funds awarded to the program. L Distance Learning 31301. Additional support for distance learning (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Emergency Connectivity Fund established under subsection (c)(1) of section 7402 of the American Rescue Plan Act of 2021 ( Public Law 117–2 ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2030, to provide support under the covered regulations promulgated under subsection (a) of that section, except that that amount shall be used to provide support under the covered regulations for costs incurred after the date of enactment of this Act but before June 30, 2030, regardless of whether those costs are incurred during a COVID–19 emergency period (as defined in subsection (d) of that section). (b) Limitation None of the funds appropriated under subsection (a) may be used to purchase, rent, lease, or otherwise obtain any covered communications equipment or service (as defined in section 9 of the Secure and Trusted Communications Networks Act of 2019 ( 47 U.S.C. 1608 )). M Manufacturing Supply Chain and Tourism 31401. Manufacturing supply chain resilience In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available until September 30, 2026, to the Office of the Secretary of Commerce, to support the resilience of manufacturing supply chains affecting interstate commerce and related administrative costs, by— (1) mapping and monitoring manufacturing supply chains; (2) facilitating and supporting the establishment of voluntary standards, guidelines, and best practices relevant to the resilience of manufacturing supply chains; (3) identifying, accelerating, promoting, demonstrating, and deploying technological advances for manufacturing supply chains; and (4) providing grants, loans, and loan guarantees to maintain and improve manufacturing supply chain resiliency. 31402. Destination marketing organization grant program to promote safe domestic travel (a) Grants for Domestic Marketing Organizations In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $47,500,000, to remain available until September 30, 2024, to the Secretary of Commerce to award grants to destination marketing organizations, including public or public-private entities that perform the functions of a destination marketing organization as determined by the Secretary, to conduct marketing activities to promote domestic travel within the United States, including with respect to current travel requirements and safe travel practices, with preference to destination marketing organizations promoting a town, city, State, or region where the civilian labor force in the accommodation, leisure, and hospitality sector has suffered, and continues to suffer, significant job losses as a result of the COVID–19 pandemic, as determined by the Secretary. (b) Administrative costs In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,500,000, to remain available until September 30, 2027, to the Secretary of Commerce for administrative costs associated with providing grants under subsection (a). (c) Data on domestic travel and tourism In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000, to remain available until September 30, 2027, to the Secretary of Commerce to collect data on domestic travel and tourism in the United States, including the impact of the COVID–19 pandemic on domestic travel and tourism. N FTC Privacy Enforcement 31501. Federal Trade Commission funding for a privacy bureau and related expenses In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2029, to the Federal Trade Commission to create and operate a bureau, including by hiring and retaining technologists, user experience designers, and other experts as the Commission considers appropriate, to accomplish its work related to unfair or deceptive acts or practices relating to privacy, data security, identity theft, data abuses, and related matters. 31502. Federal Trade Commission Section 5(m)(1)(A) of the Federal Trade Commission Act ( 15 U.S.C. 45(m)(1)(A) ) is amended— (1) by inserting this Act’s prohibition of unfair or deceptive acts or practices or after violates the first place it appears; and (2) by inserting a violation of this Act or after unfair or deceptive and . O Department of Commerce Inspector General 31601. Funding for the Office of Inspector General of the Department of Commerce In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2030, to the Office of Inspector General of the Department of Commerce for oversight of activities supported with funds appropriated to the Department of Commerce in this Act. IV Committee on Financial Services A Creating and Preserving Affordable, Equitable and Accessible Housing for the 21st Century 40001. Public housing investments (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $10,000,000,000, to remain available until September 30, 2031, for the Capital Fund under section 9(d) of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(d) ) pursuant to the same formula as in fiscal year 2021, to be made available within 60 days of the date of the enactment of this Act; (2) $53,000,000,000, to remain available until September 30, 2026, for eligible activities under section 9(d)(1) of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(d)(1) ) for priority investments as determined by the Secretary to repair, replace, or construct properties assisted under such section 9; (3) $1,200,000,000, to remain available until September 30, 2026, for competitive grants under section 24 of the United States Housing Act of 1937 ( 42 U.S.C. 1437v ) (in this section referred to as section 24 ), under the terms and conditions in subsection (b), for transformation, rehabilitation, and replacement housing needs of public and assisted housing, and to transform neighborhoods of poverty into functioning, sustainable mixed-income neighborhoods; (4) $750,000,000, to remain available until September 30, 2031, for the costs to the Secretary of administering and overseeing the implementation of this section and the Public Housing Capital Fund and the section 24 grant program generally, including information technology, financial reporting, research and evaluation, other cross-program costs in support of programs administered by the Secretary in this title, and other costs; and (5) $50,000,000, to remain available until September 30, 2031, to make new awards or increase prior awards to existing technical assistance providers to provide an increase in capacity building and technical assistance available to entities eligible for funding for activities or projects consistent with this section. (b) Terms and conditions for section 24 grants Grants awarded under subsection (a)(3) shall be subject to terms and conditions determined by the Secretary, which shall include the following: (1) Use Grant funds may be used for resident and community services, community development and revitalization, and affordable housing needs in the community. (2) Applicants Eligible recipients of grants shall include lead applicants and joint applicants, as follows: (A) Lead applicants A lead applicant shall be a local government, a public housing agency, or an owner of an assisted housing property. (B) Joint applicants A nonprofit organization or a for-profit developer may apply jointly as a joint applicant with such public entities specified in subparagraph (A). A local government must be a joint applicant with an owner of an assisted housing property specified in subparagraph (A). (3) Period of affordability Grantees shall commit to a period of affordability determined by the Secretary of not fewer than 20 years, but the Secretary may specify a period of affordability that is fewer than 20 years with respect to homeownership units developed with section 24 grants. (4) Environmental review For purposes of environmental review, a grantee shall be treated as a public housing agency under section 26 of the United States Housing Act of 1937 ( 42 U.S.C. 1437x ). (5) Low-income and affordable housing Amounts made available under this section shall be used for low-income housing (as such term is defined under section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) )), HUD-assisted housing, and affordable housing, which shall be housing for which the owner of the project shall record an affordability use restriction approved by the Secretary for households earning up to 120 percent of the area median income and is subject to the period of affordability under paragraph (3) of this subsection. (c) Other terms and conditions Grants awarded under this section shall be subject to the following terms and conditions: (1) Limitation Amounts provided pursuant to this section may not be used for operating costs or rental assistance. (2) Development of new units Paragraph (3) of section 9(g) of the United States Housing Act of 1937 ( 42 U.S.C. 1437g(g)(3) ) shall not apply to new funds made available under this section. (3) Health and safety Amounts made available under this section shall be used to address health, safety, and environmental hazards, including lead, fire, carbon monoxide, mold, asbestos, radon, pest infestation, and other hazards as defined by the Secretary. (4) Energy efficiency and resilience Amounts made available under this section shall advance improvements to energy and water efficiency or climate and disaster resilience in housing assisted under this section. (5) Recapture If the Secretary recaptures funding allocated by formula from a public housing agency under subsection (a)(1), such recaptured amounts shall be added to the amounts available under subsection (a)(2), and shall be obligated by the Secretary prior to the expiration of such funds. (6) Supplementation of funds The Secretary shall ensure that amounts provided pursuant to this section shall serve to supplement and not supplant other amounts generated by a recipient of such amounts or amounts provided by other Federal, State, or local sources. (7) Waivers and alternative requirements The Secretary may waive or specify alternative requirements for subsections (d)(1), (d)(2), (e), and (j) of section 9 of the United States Housing Act of 1937 ( 42 U.S.C. 1437g ) and associated regulations in connection with the use of amounts made available under this section other than requirements related to tenant rights and protections, fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (d) Implementation The Secretary shall have authority to issue such regulations or notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40002. Investments in affordable and accessible housing production (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $9,925,000,000, to remain available until September 30, 2026, for activities and assistance for the HOME Investment Partnerships Program (in this section referred to as the HOME program ), as authorized under sections 241 through 242, 244 through 253, 255 through 256, and 281 through 290 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741-12742 , 42 U.S.C. 12744–12753 , 42 U.S.C. 12755–12756 , 42 U.S.C. 12831–12840 ) (in this section referred to as NAHA ), subject to the terms and conditions paragraph (1)(A) of subsection (b); (2) $14,925,000,000, to remain available until September 30, 2026, for activities and assistance for the HOME Investment Partnerships Program, as authorized under sections 241 through 242, 244 through 253, 255 through 256, and 281 through 290 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741–12742 , 42 U.S.C. 12744–12753 , 42 U.S.C. 12755–12756 , 42 U.S.C. 12831–12840 ), subject to the terms and conditions in paragraphs (1)(B) and (2) of subsection (b); (3) $50,000,000, to remain available until September 30, 2031, to make new awards or increase prior awards to existing technical assistance providers to provide an increase in capacity building and technical assistance available to any grantees implementing activities or projects consistent with this section; and (4) $100,000,000, to remain available until September 30, 2031, for the costs to the Secretary of administering and overseeing the implementation of this section and the HOME and Housing Trust Fund programs generally, including information technology, financial reporting, research and evaluations, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs. (b) Terms and conditions (1) Formulas (A) The Secretary shall allocate amounts made available under subsection (a)(1) pursuant to section 217 of NAHA ( 42 U.S.C. 12747 ) to grantees that received allocations pursuant to that same formula in fiscal year 2021 and shall make such allocations within 60 days of the enactment of this Act. (B) The Secretary shall allocate amounts made available under subsection (a)(2) pursuant to the formula specified in section 1338(c)(3) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4568(c)(3) ) to grantees that received Housing Trust Fund allocations pursuant to that same formula in fiscal year 2021 and shall make such allocations within 60 days of the date of the enactment of this Act. (2) Eligible activities Other than as provided in paragraph (5) of this subsection, funds made available under subsection (a)(2) may only be used for eligible activities described in subparagraphs (A) through (B)(i) of section 1338(c)(7) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4568(c)(7) ), except that not more than 10 percent of funds made available may be used for activities under such subparagraph (B)(i). (3) Funding restrictions The commitment requirements in section 218(g) ( 42 U.S.C. 12748(g) ) of NAHA, the matching requirements in section 220 ( 42 U.S.C. 12750 ) of NAHA, and the set-aside for housing developed, sponsored, or owned by community housing development organizations required in section 231 of NAHA ( 42 U.S.C. 12771 ) shall not apply for amounts made available under this section. (4) Reallocation For funds provided under paragraphs (1) and (2) of subsection (a), the Secretary may recapture certain amounts remaining available to a grantee under this section or amounts declined by a grantee, and reallocate such amounts to other grantees under that paragraph to ensure fund expenditure, geographic diversity, and availability of funding to communities within the State from which the funds have been recaptured. (5) Administration Notwithstanding subsections (c) and (d)(1) of section 212 of NAHA ( 42 U.S.C. 12742 ), grantees may use not more than 15 percent of their allocations under this section for administrative and planning costs. (c) Waivers The Secretary may waive or specify alternative requirements for any provision of the Cranston-Gonzalez National Affordable Housing Act specified in subsection (a)(1) or (a)(2) or regulation for the administration of the amounts made available under this section other than requirements related to tenant rights and protections, fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (d) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40003. Housing investment fund (a) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026— (1) $740,000,000 to the Department of the Treasury to establish the Housing Investment Fund established by this section within the Community Development Financial Institutions Fund (in this section referred to as the CDFI Fund ) to make grants to increase investment in the development, preservation, rehabilitation, financing, or purchase of affordable housing primarily for low-, very-low, and extremely low-income families who are renters, and for homeowners with incomes up to 120 percent of the area median income, and for economic development and community facilities related to such housing and to further fair housing; and (2) $10,000,000 for the costs to the CDFI Fund of administering and overseeing the implementation of this section, including information technology, financial reporting, research and evaluations, and other costs. (b) Eligible grantees A grant under this section may be made, pursuant to such requirements as the CDFI Fund shall establish, only to— (1) a CDFI Fund certified community development financial institution, as such term is defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ); (2) a nonprofit organization having as one of its principal purposes the creation, development, or preservation of affordable housing, including a subsidiary of a public housing authority; or (3) a consortium comprised of certified community development financial institutions, eligible nonprofit housing organizations, or a combination of both. (c) Eligible uses Eligible uses for grant amounts awarded from the Housing Investment Fund pursuant to this section shall— (1) be reasonably expected to result in eligible affordable housing activities that support or sustain affordable housing funded by a grant under this section and capital from other public and private sources; and (2) include activities— (A) to provide loan loss reserves; (B) to capitalize an acquisition fund to acquire residential, industrial, or commercial property and land for the purpose of the preservation, development, or rehabilitation of affordable housing, including to support the creation, preservation, or rehabilitation of resident-owned manufactured housing communities; (C) to capitalize an affordable housing fund, for development, preservation, rehabilitation, or financing of affordable housing and economic development activities, including community facilities, if part of a mixed-use project, or activities described in this paragraph related to transit-oriented development, which may also be designated as a focus of such a fund; (D) to capitalize an affordable housing mortgage fund, to facilitate the origination of mortgages to buyers that may experience significant barriers to accessing affordable mortgage credit, including mortgages having low original principal obligations; (E) for risk-sharing loans; (F) to provide loan guarantees; and (G) to fund rental housing operations. (d) Implementation The CDFI Fund shall have the authority to issue such regulations, notice, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40004. Section 811 supportive housing for people with disabilities (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $450,000,000 for capital advances, including amendments to capital advance contracts, for supportive housing for persons with disabilities, as authorized by section 811(b)(2) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013(b)(2) ) (in this section referred to as the Act ), and subject to subsections (a) through (h)(4), (h)(6) through (i)(1)(C), and (i)(2) through (m) of such section 811 ( 42 U.S.C. 8013(a) - 42 U.S.C. 8013(h)(4) , 42 U.S.C. 8013(h)(6) - 42 U.S.C. 8013(i)(1)(C) , 42 U.S.C. 8013(i)(2) - 42 U.S.C. 8013(m) ), and for project rental assistance for supportive housing for persons with disabilities under section 811(d)(2) of the Act and for project assistance contracts pursuant to section 202(h) of the Housing Act of 1959 ( Public Law 86–372 ; 73 Stat. 667), for project rental assistance to State housing finance agencies and other appropriate entities as authorized under section 811(b)(3) of the Act, for State housing finance agencies; (2) $7,500,000 for providing technical assistance to support State-level efforts to integrate housing assistance and voluntary supportive services for residents of housing receiving such assistance, which funding may also be used to provide technical assistance to applicants and potential applicants to understand program requirements and develop effective applications, and the Secretary may use amounts made available under this paragraph to increase prior awards to existing technical assistance providers to provide an immediate increase in capacity building and technical assistance; and (3) $42,500,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the Supportive Housing for Persons with Disabilities program generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Limitations on costs When awarding grants under paragraph (1) of subsection (a), the Secretary shall establish and assess reasonable development cost limitations by market area for various types and sizes of supportive housing for persons with disabilities. The Secretary shall not count owner or sponsor contributions of other funding or assistance against the overall cost of a project. (c) Occupancy standards The owner or sponsor of housing assisted with funds provided under this section may, with the approval of the Secretary, limit occupancy with the housing to persons with disabilities who can benefit from the supportive services offered in connection with the housing. (d) Waivers The Secretary may waive or specify alternative requirements for subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f (c), 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (e) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40005. Section 202 supportive housing for the elderly program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $450,000,000 for the Supportive Housing for the Elderly Program authorized under section 202 of the Housing Act of 1959, and subject to subsections (a) through (g), (h)(2) through (h)(5), and (i) through (m) of such section 202 ( 12 U.S.C. 1701q(a) -12 U.S.C. 1701q(g), 12 U.S.C. 1701q(h)(2) -12 U.S.C. 1701q(h)(5), 12 U.S.C. 1701q(i) -12 U.S.C. 1701q(m)) (in this section referred to as the Act ), which shall be used— (A) for capital advance awards in accordance with section 202(c)(1) of the Act to recipients that are eligible under the Act; (B) for new section 8 project-based rental assistance contracts under section 8(b) of the United States Housing Act of 1937 Act ( 42 U.S.C. 1437f(b) ), subject to subsection (c) of this section, with the Secretary setting the terms of such project-based rental assistance contracts, including the duration and provisions regarding rent setting and rent adjustment, to support the capital advance projects funded under this section; and (C) for service coordinators; (2) $7,500,000, to provide technical assistance to support State-level efforts to improve the design and delivery of voluntary supportive services for residents of any housing assisted under the Act and other housing supporting low-income older adults, in order to support residents to age-in-place and avoid institutional care, as well as to assist applicants and potential applicants with project-specific design, and the Secretary may use amounts made available under this paragraph to increase prior awards to existing technical assistance providers to provide an immediate increase in capacity building and technical assistance; and (3) $42,500,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the Supportive Housing for the Elderly program generally, including information technology, financial reporting, research and evaluation, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Limitation on costs When awarding grants under paragraph (1) of subsection (a), the Secretary shall establish and assess reasonable development cost limitations by market area for various types and sizes of supportive housing for the elderly. The Secretary shall not count owner or sponsor contributions of other funding or assistance against the overall cost of a project. (c) Waivers The Secretary may waive or specify alternative requirements for any provision of subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f (c), 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (d) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40006. Improving energy efficiency or water efficiency or climate resilience of affordable housing (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,770,000,000, to remain available until September 30, 2028, for the cost of providing direct loans, including the costs of modifying such loans, and for grants, as provided for and subject to terms and conditions in subsection (b), including to subsidize gross obligations for the principal amount of direct loans, not to exceed $4,000,000,000, to fund projects that improve the energy or water efficiency, indoor air quality and sustainability improvements, implement low-emission technologies, materials, or processes, including zero-emission electricity generation, energy storage, or building electrification, electric car charging station installations, or address climate resilience of multifamily properties; (2) $25,000,000, to remain available until September 30, 2030, for the costs to the Secretary of administering and overseeing the implementation of this section, including information technology, financial reporting, research and evaluation, other cross-program costs in support of programs administered by the Secretary in this title, and other costs; (3) $120,000,000, to remain available until September 30, 2029, for expenses of contracts administered by the Secretary, including to carry out property climate risk, energy, or water assessments, due diligence, and underwriting functions for such grant and direct loan program; and (4) $85,000,000, to remain available until September 30, 2028, for energy and water benchmarking of properties eligible to receive grants or loans under this section, regardless of whether they actually received such grants, along with associated data analysis and evaluation at the property and portfolio level, including the development of information technology systems necessary for the collection, evaluation, and analysis of such data. (b) Loan and grant terms and conditions Amounts made available under this section shall be for direct loans, grants, and direct loans that can be converted to grants to eligible recipients that agree to an extended period of affordability for the property. (c) Definitions As used in this section— (1) the term eligible recipient means any owner or sponsor of an eligible property; and (2) the term eligible property means a property receiving project-based assistance pursuant to— (A) section 202 of the Housing Act of 1959 ( 12 U.S.C. 1701q ); (B) section 811 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013 ); or (C) section 8(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(b) ) (d) Waiver The Secretary may waive or specify alternative requirements for any provision of subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(c) , 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (e) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40007. Revitalization of distressed multifamily properties (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,550,000,000 for providing direct loans, which may be forgivable, to owners of distressed properties for the purpose of making necessary physical improvements, including to subsidize gross obligations for the principal amount of direct loans not to exceed $6,000,000,000, subject to the terms and conditions in subsection (b); and (2) $50,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the Office of Housing programs generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2029. (b) Loan terms and conditions (1) Eligibility Owners or sponsors of multifamily housing projects who meet each of the following requirements shall be eligible for loan assistance under this section: (A) The multifamily housing project, including any project from which assistance has been approved to be transferred has deficiencies that cause the project to be at risk of physical obsolescence or economic non-viability. (B) The actual rents received by the owner or sponsor of the distressed property would not adequately sustain the debt needed to make necessary physical improvements. (C) The owner or sponsor meets any such additional eligibility criteria as the Secretary determines to be appropriate, considering factors that contributed to the project’s deficiencies. (2) Use of loan funds Each recipient of loan assistance under this section may only use such loan assistance to make necessary physical improvements. (3) Loan availability The Secretary shall only provide loan assistance to an owner or sponsor of a multifamily housing project when such assistance, considered with other financial resources available to the owner or sponsor, is needed to make the necessary physical improvements. (4) Interest rates and length Loans provided under this section shall bear interest at 1 percent, and at origination shall have a repayment period coterminous with the affordability period established under paragraph (6), with the frequency and amount of repayments to be determined by requirements established by the Secretary. (5) Loan modifications or forgiveness With respect to loans provided under this section, the Secretary may take any of the following actions if the Secretary determines that doing so will preserve affordability of the project: (A) Waive any due on sale or due on refinancing restriction. (B) Consent to the terms of new debt to which the loans may be subordinate, even if such new debt would impact the repayment of the loans. (C) Extend the term of the loan. (D) Forgive the loan in whole or in part. (6) Extended affordability period Each recipient of loan assistance under this section shall agree to an extended affordability period for the project that is subject to the loan by extending any existing affordable housing use agreements for an additional 30 years or, if the project is not currently subject to a use agreement establishing affordability requirements, by establishing a use agreement for 30 years. (7) Matching contribution Each recipient of loan assistance under this section shall secure at least 20 percent of the total cost needed to make the necessary physical improvements from non-Federal sources, except in cases where the Secretary determines that a lack of financial resources qualifies a loan recipient for— (A) a reduced contribution below 20 percent; or (B) an exemption to the matching contribution requirement. (8) Additional loan conditions The Secretary may establish additional conditions for loan eligibility provided under this section as the Secretary determines to be appropriate. (9) Properties insured by the Secretary In the case of any property with respect to which assistance is provided under this section that has a mortgage insured by the Secretary, the Secretary may use funds available under this section as necessary to pay for the costs of modifying such loan. (c) Definitions As used in this section— (1) the term multifamily housing project means a project consisting of five or more dwelling units assisted or approved to receive a transfer of assistance, insured, or with a loan held by the Secretary or a State or State agency in part or in whole pursuant to— (A) section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ), not including subsection (o)(13) of such section; (B) section 202 of the Housing Act of 1959 ( 12 U.S.C. 1701q ), as amended by section 801 of the Cranston-Gonzalez National Affordable Housing Act; (C) section 202 of the Housing Act of 1959 (former 12 U.S.C. 1701q ), as such section existed before the enactment of the Cranston-Gonzalez National Affordable Housing Act; (D) section 811 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013 ); or (E) section 236 of the National Housing Act ( 12 U.S.C. 1715z-1 ); and (2) the term necessary physical improvements means new construction or capital improvements to an existing multifamily housing project that the Secretary determines are necessary to address the deficiencies or that rise to such a level that delaying physical improvements to the project would be detrimental to the longevity of the project as suitable housing for occupancy. (d) Waiver The Secretary may waive or specify alternative requirements for any provision of subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(c) , 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (e) Implementation The Secretary shall have the authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40008. Investments in rural rental housing (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Rural Housing Service of the Department of Agriculture for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,800,000,000, to remain available until September 30, 2029, for the Administrator of the Rural Housing Service for making loans and grants for new construction, improvements to energy and water efficiency or climate resilience, the removal of health and safety hazards, and the preservation and revitalization of housing for other purposes described under section 514 of the Housing Act of 1949 ( 42 U.S.C. 1484 ), subsections (a)(1) through (a)(2), (b)(1) through (b)(3), (b)(5) through (aa)(2)(A), and (aa)(4) of section 515 of such Act ( 42 U.S.C. 1485(a)(1) -42 U.S.C. 1485(a)(2), 42 U.S.C. 1485(b)(1) -(b)(3), 42 U.S.C. 1485(b)(5) - 42 U.S.C. 1485(aa)(2)(A) , 42 U.S.C. 1485(aa)(4) ), and 516 of such act ( 42 U.S.C. 1486 ), subject to the terms and conditions in subsection (b); (2) $100,000,000, to remain available until September 30, 2029, to provide continued assistance pursuant to section 3203 of the American Rescue Plan Act of 2021; and (3) $100,000,000, to remain available until September 30, 2030, for the costs to the Rural Housing Service of the Department of Agriculture of administering and overseeing the implementation of this section, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. (b) Preservation and revitalization terms and conditions (1) Loans and grants and other assistance The Administrator of the Rural Housing Service of the Department of Agriculture shall provide direct loans and grants, including the cost of modifying loans, to restructure existing Department of Agriculture multi-family housing loans expressly for the purposes of ensuring the project has sufficient resources to preserve the project for the purpose of providing safe and affordable housing for low-income residents and farm laborers, including— (A) reducing or eliminating interest; (B) deferring loan payments; (C) subordinating, reducing, or re-amortizing loan debt; and (D) providing other financial assistance, including advances, payments, and incentives (including the ability of owners to obtain reasonable returns on investment) required by the Secretary, including such assistance to non-profit entities and public housing authorities. (2) Restrictive use agreement The Administrator of the Rural Housing Service of the Department of Agriculture shall as part of the preservation and revitalization agreement obtain a restrictive use agreement consistent with the terms of the restructuring. (c) Implementation The Administrator of the Rural Housing Service of the Department of Agriculture shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40009. Housing vouchers (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $15,000,000,000, to remain available until September 30, 2029, for— (A) incremental tenant-based rental assistance for extremely low-income families under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ); (B) renewals of such tenant-based rental assistance; and (C) fees for the costs of administering tenant-based rental assistance and other expenses related to the utilization of voucher assistance under subparagraph (A), which may include the cost of facilitating the use of voucher assistance provided under paragraph (5); (2) $7,100,000,000, to remain available until September 30, 2029, for— (A) incremental tenant-based rental assistance under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ) for households experiencing or at risk of homelessness, survivors of domestic violence, dating violence, sexual assault, and stalking, and survivors of trafficking; (B) renewals of such tenant-based rental assistance; and (C) fees for the costs of administering tenant-based rental assistance and other expenses related to the utilization of voucher assistance under subparagraph (A), which may include the cost of facilitating the use of voucher assistance provided under paragraph (5); (3) $1,000,000,000, to remain available until September 30, 2031, for— (A) tenant protection vouchers for relocation and replacement of public housing units demolished or disposed as part of a public housing preservation or project-based replacement transaction using funds made available under this title; (B) renewals of such tenant-based rental assistance; and (C) fees for the costs of administering tenant-based rental assistance and other expenses related to the utilization of voucher assistance under subparagraph (A), which may include the cost of facilitating the use of voucher assistance provided under paragraph (5); (4) $300,000,000, to remain available until September 30, 2031, for competitive grants, subject to terms and conditions determined by the Secretary, to public housing agencies for mobility-related services for voucher families, including families with children, and service coordination; (5) $230,000,000, to remain available until September 30, 2031, for eligible expenses to facilitate the use of voucher assistance under this section and for other voucher assistance under section 8(o) of the United States Housing Act of 1937, as determined by the Secretary, in addition to amounts otherwise available for such expenses, including property owner outreach and retention activities such as incentive payments, security deposit payments and loss reserves, landlord liaisons, and other uses of funds designed primarily— (A) to recruit owners of dwelling units, particularly dwelling units in census tracts with a poverty rate of less than 20 percent, to enter into housing assistance payment contracts; and (B) to encourage owners that enter into housing assistance payment contracts as described in subparagraph (A) to continue to lease their dwelling units to tenants assisted under section 8(o) of the United States Housing Act of 1937; (6) $300,000,000, to remain available until September 30, 2031, for the costs to the Secretary of administering and overseeing the implementation of this section and the Housing Choice Voucher program generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs; and (7) $70,000,000, to remain available until September 30, 2031, for making new awards or increasing prior awards to existing technical assistance providers to provide an increase in capacity building and technical assistance available to public housing agencies. (b) Terms and conditions (1) Allocation The Secretary shall allocate initial incremental assistance provided for rental assistance under subsection (a)(1) and (2) in each fiscal year commencing in 2022 and ending in 2026 in accordance with a formula or formulas that include measures of severe housing need among extremely low-income renters and public housing agency capacity, and ensures geographic diversity among public housing agencies administering the Housing Choice Voucher program. (2) Election to administer The Secretary shall establish a procedure for public housing agencies to accept or decline the incremental vouchers made available under this section. (3) Failure to use vouchers promptly If a public housing agency fails to lease the authorized vouchers it has received under this subsection on behalf of eligible families within a reasonable period of time, the Secretary may offset the agency’s voucher renewal allocations and may revoke and redistribute any unleased vouchers and associated funds, which may include administrative fees and amounts allocated under subsections (a)(3) and (a)(4), to other public housing agencies. (4) Limitation of use of funds Public housing agencies may use funds received under this section only for the activities listed in subsection (a) for which the funds were provided to such agency. (5) Cap on project-based vouchers for vulnerable populations Upon request by a public housing agency, the Secretary may designate a number of the public housing agency’s vouchers allocated under this section as excepted units that do not count against the percentage limitation on the number of authorized units a public housing agency may project-base under section 8(o)(13)(B) of the United States Housing Act of 1937, in accordance with the conditions established by the Secretary. This paragraph may not be construed to waive, limit, or specify alternative requirements, or permit such waivers, limitations, or alternative requirements, related to fair housing and nondiscrimination, including the requirement to provide housing and services to individuals with disabilities in integrated settings. (6) Homeless waiver authority In administering the voucher assistance targeted for households experiencing or at risk of homelessness, survivors of domestic violence, dating violence sexual assault, and stalking, and survivors of trafficking under subsection (a)(2), the Secretary may, upon a finding that a waiver or alternative requirement is necessary to facilitate the use of such assistance, waive or specify alternative requirements for— (A) section 8(o)(6)(A) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o)(6)(A) ) and regulatory provisions related to the administration of waiting lists and local preferences; (B) section 214(d)(2) of the Housing and Community Development Act of 1980 ( 42 U.S.C. 1436a(d)(2) ), section 576(a), (b), and (c) of the Quality Housing and Work Responsibility Act of 1998 ( 42 U.S.C. 13661(a) , (b),and (c)), and regulatory provisions related to the verification of eligibility, eligibility requirements, and the admissions process; (C) section 8(o)((7)(A) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o)(7)(A) ) and regulatory provisions related to the initial lease term; (D) section 8(r)(B)(i) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(r)(B)(i) ) and regulatory provisions related to portability moves by non-resident applicants; and (E) regulatory provisions related to the establishment of payment standards. (c) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40010. Project-based rental assistance (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $880,000,000 for the project-based rental assistance program, as authorized under section 8(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(b) ), (in this section referred to as the “Act”), subject to the terms and conditions of subsection (b) of this section; (2) $20,000,000 for providing technical assistance to recipients of or applicants for project-based rental assistance or to States allocating the project-based rental assistance; and (3) $100,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the section 8 project-based rental assistance program generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Terms and conditions (1) Authority Notwithstanding section 8(a) the Act ( 42 U.S.C. 1437f(a) ), the Secretary may use amounts made available under this section to provide assistance payments with respect to newly constructed housing, existing housing, or substantially rehabilitated non-housing structures for use as new multifamily housing in accordance with this section and the provisions of section 8 of the Act. In addition, the Secretary may use amounts made available under this section for performance-based contract administrators for section 8 project-based assistance, for carrying out this section and section 8 of the Act. (2) Project-based rental assistance The Secretary may make assistance payments using amounts made available under this section pursuant to contracts with owners or prospective owners who agree to construct housing, to substantially rehabilitate existing housing, to substantially rehabilitate non-housing structures for use as new multifamily housing, or to attach the assistance to newly constructed housing in which some or all of the units shall be available for occupancy by very low-income families in accordance with the provisions of section 8 of the Act. In awarding contracts pursuant to this section, the Secretary shall give priority to owners or prospective owners of multifamily housing projects located or to be located in areas of high opportunity, as defined by the Secretary, in areas experiencing economic growth or rising housing prices to prevent displacement or secure affordable housing for low-income households, or that serve people at risk of homelessness or that integrate additional units that are accessible for persons with mobility impairments and persons with hearing or visual impairments beyond those required by applicable Federal accessibility standards. (3) Allocation The Secretary shall make awards with amounts made available under this section using the following mechanisms, alone or in combination: (A) A competitive process, which the Secretary may carry out in multiple rounds of competition, each of which may have its own selection, performance, and reporting criteria as established by the Secretary. (B) Selecting proposals submitted through FHA loan applications that meet specified criteria. (C) Delegating to States the awarding of contracts, including related determinations such as the maximum monthly rent, subject to the requirements of section 8 of the Act, as determined by the Secretary. (4) Contract term, rent setting, and rent adjustments The Secretary may set the terms of the contract, including the duration and provisions regarding rent setting and rent adjustments. (c) Waivers The Secretary may waive or specify alternative requirements for any provision of subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(c) , 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (d) Implementation The Secretary shall have the authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40011. Investments in Native American Communities (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $277,500,000 for formula grants for eligible affordable housing activities described in section 202 of the Native American Housing Assistance and Self-Determination Act of 1996 (in this section referred to as NAHASDA ) ( 25 U.S.C. 4132 ), which shall be distributed according to the most recent fiscal year funding formula for the Indian Housing Block Grant; (2) $200,000,000 for— (A) affordable housing activities authorized under section 810(a) of NAHASDA ( 25 U.S.C. 4229 ); (B) community-wide infrastructure and infrastructure improvement projects carried out on Hawaiian Home Lands pursuant to section 810(b)(5) of NAHASDA ( 25 U.S.C. 4229(b)(5) ); and (C) rental assistance to Native Hawaiians (as defined in section 801 of NAHASDA ( 25 U.S.C. 4221 )) on and off Hawaiian Home Lands; (3) $277,500,000 for competitive grants for eligible affordable housing activities described in section 202 of NAHASDA ( 25 U.S.C. 4132 ); (4) $200,000,000 for— (A) competitive single-purpose Indian community development block grants for Indian tribes; and (B) imminent threat Indian community development block grants, including for long-term environmental threats and relocation, for Indian tribes, or a tribal organization, governmental entity, or nonprofit organization designated by the Indian tribe to apply for a grant on its behalf; (5) $25,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and Indian and Native Hawaiian programs administered by the Secretary, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs; and (6) $20,000,000 to make new awards or increase prior awards to technical assistance providers to provide an immediate increase in capacity building and technical assistance to grantees. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Reallocation Amounts made available under subsection (a)(1) that are not accepted within a time specified by the Secretary, are voluntarily returned, or are otherwise recaptured for any reason shall be used to fund grants under paragraph (3) or (4) of subsection (a). (c) Undisbursed funds Amounts provided under this Act that remain undisbursed may not be used as a basis to reduce any grant allocation under section 302 of NAHASDA ( 25 U.S.C. 4152 ) to an Indian tribe in any fiscal year. (d) Prohibition on investments Amounts made available under this section may not be invested in investment securities and other obligations. (e) Waivers With respect to amounts made available under this section, the Secretary may, upon a finding that a waiver or alternative requirement is necessary to facilitate the use of such amounts, waive or specify alternative requirements for any Indian housing block grants, Native Hawaiian housing block grants, or Indian community development block grants issued pursuant to this section, other than requirements related to fair housing, nondiscrimination, labor standards, and the environment. (f) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40012. Increased affordable housing program investment Notwithstanding subsection (j)(5)(C) of section 10 of the Federal Home Loan Bank Act ( 12 U.S.C. 1430 ), in 2022 and every year thereafter until 2027, each Federal Home Loan Bank shall annually contribute 15 percent of the preceding year’s net income of the Federal Home Bank, or such prorated sums as may be required to assure that the aggregate contribution of the Federal Home Loan Banks shall not be less than $100,000,000 for each such year, to support grants or subsidized advances through the Affordable Housing Programs established and carried out under subparagraphs (j)(1), (2), (3)(A), (3)(C), and (4) through (13) of section 10 of such Act. B 21st Century Sustainable and Equitable Communities 40101. Community development block grant funding for affordable housing and infrastructure (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,735,000,000 for grants in accordance with sections 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321) to grantees under subsections (a)(2) and (4) and (d) of section 106 of such Act (42 U.S.C.5306(a)(2), (a)(4), and (d)), subject to subsection (b) of this section, except that for purposes of amounts made available by this paragraph, paragraph (2) of such section 106(a) shall be applied by substituting $70,000,000 for $7,000,000 ; (2) $700,000,000 for grants in accordance with sections 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321) to community development block grant grantees, as determined by the Secretary, under subsections (a)(4) and (b) through (f) of section 106 of such Act (5306(a)(4) and 5306(b)-(f)), only for colonias, to address the community and housing infrastructure needs of existing colonia residents based on a formula that takes into account persons in poverty in the colonia areas, except that grantees may use funds in colonias outside of the 150-mile border area upon approval of the Secretary; (3) $500,000,000 for grants in accordance with sections 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321), to eligible recipients under subsection (c) of this section for manufactured housing infrastructure improvements in eligible manufactured home communities; (4) $87,500,000 for the costs to the Secretary of administering and overseeing the implementation of this section, the Community Development Block Grant program, and the manufactured home construction and safety standards program generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs; and (5) $27,500,000 for providing technical assistance to recipients of or applicants for grants under this section. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Housing construction Expenditures on new construction of housing shall be an eligible expense for a recipient of funds made available under this section that is not a recipient of funds under section 40002 of this title. (c) Manufactured housing community improvement grant program (1) Establishment The Secretary of Housing and Urban Development shall carry out a competitive grant program to award funds appropriated under subsection (a)(3) to eligible recipients to carry out eligible projects for improvements in eligible manufactured home communities. (2) Eligible projects Amounts from grants under this subsection shall be used to assist in carrying out a project for construction, reconstruction, repair, or clearance of housing, facilities and improvements in or serving a manufactured housing community that is necessary to protect the health and safety of the residents of the manufactured housing community and the long-term sustainability of the community. (d) Waivers The Secretary may waive or specify alternative requirements for any provision of title I of the Housing and Community Development Act of 1974 specified in subsection (a)(1), (a)(2), or (a)(3), or regulation that the Secretary administers in connection with use of amounts made available under this section other than requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is not inconsistent with the overall purposes of such Act and that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (e) Definitions For purposes of this section, the following definitions shall apply: (1) Colonia area The term colonia area means any census tract that— (A) is an area of the United States within 150 miles of the contiguous border between the United States and Mexico, except as otherwise determined by the Secretary; and (B) lacks potable water supply, adequate sewage systems, or decent, safe, sanitary housing, or other objective criteria as approved by the Secretary. (2) Eligible manufactured home community The term eligible manufactured home community means a community that— (A) is affordable to low- and moderate-income persons (as such term is defined in section 102(a) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302(a) )); and (B) (i) is owned by the residents of the manufactured housing community through a resident-controlled entity, as defined by the Secretary, in which at least two-thirds of residents are member-owners of the land-owning entity; or (ii) will be maintained as such a community, and remain affordable for low- and moderate-income families, to the maximum extent practicable and for the longest period feasible. (3) Eligible recipient The term eligible recipient means a partnership of— (A) a grantee under paragraph (2) or (4) of section 106(a) or section 106(d) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(a)(2) , (a)(4), and (d)); and (B) an eligible manufactured home community, a nonprofit entity, or a consortia of nonprofit entities working with an eligible manufactured home community. (4) Manufactured home community The term manufactured home community means any community, court, or park equipped to accommodate manufactured homes for which pad sites, with or without existing manufactured homes or other allowed homes, or other suitable sites, are used primarily for residential purposes, with any additional requirements as determined by the Secretary, including any manufactured housing community as such term is used for purposes of the program of the Federal National Mortgage Association for multifamily loans for manufactured housing communities and the program of the Federal Home Loan Mortgage Corporation for loans for manufactured housing communities. (f) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40102. Lead-based paint hazard control and housing-related health and safety hazard mitigation in housing of families with lower incomes (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $3,425,000,000 for grants to States, units of general local government, Indian tribes or their tribally designated housing entities, and nonprofit organizations for the activities under subsection (c) in target housing units that do not receive Federal housing assistance other than assistance provided under subsection 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ), excluding paragraph (o)(13) of such section, and common areas servicing such units, where low-income families reside or are expected to reside; (2) $250,000,000 for grants to States or units of general local government or nonprofit entities for the activities in subsection (c) in target housing units, and common areas servicing such units, that are being assisted under the Weatherization Assistance Program authorized under part A of title IV of the Energy Conservation and Production Act ( 42 U.S.C. 6861-6872 ) but are not assisted under any other Federal housing program other than subsection 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ), excluding paragraph 8(o)(13) of such section; (3) $1,000,000,000 for grants to owners of a property receiving project-based rental assistance under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ), including under subsection (o)(13) of such section, that meets the definition of target housing and that has not received a grant for similar purposes under this Act, for the activities in subsection (c), except for abatement of lead-based paint by enclosure or encapsulation, or interim controls of lead-based paint hazards in target housing units receiving such assistance and common areas servicing such units; (4) $75,000,000 for costs related to training and technical assistance to support identification and mitigation of lead and housing-related health and safety hazards, research, and evaluation; and (5) $250,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section, and the Secretary’s lead hazard reduction and related programs generally including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Terms and conditions (1) Income eligibility determinations The Secretary may make income determinations of eligibility for enrollment of housing units for assistance under this section that are consistent with eligibility requirements for grants awarded under other Federal means-tested programs, provided such determination does not require additional action by other Federal agencies. (2) Housing families with young children An owner of rental property that receives assistance under subsection (a)(3) shall give priority in renting units for which the lead-based paint has been abated pursuant to subsection (a)(3), for not less than 3 years following the completion of lead abatement activities, to families with a child under the age of 6 years. (3) Administrative expenses A recipient of a grant under this section may use up to 10 percent of the grant for administrative expenses associated with the activities funded by this section. (c) Eligible activities Grants awarded under this section shall be used for purposes of building capacity and conducting activities relating to testing, evaluating, and mitigating lead-based paint, lead-based paint hazards, and housing-related health and safety hazards; outreach, education, and engagement with community stakeholders, including stakeholders in disadvantaged communities; program evaluation and research; grant administration, and other activities that directly or indirectly support the work under this section, as applicable, that without which such activities could not be conducted. (d) Definitions For purposes of this section, the following definitions, and definitions in paragraphs (1), (2), (3), (5), (6), (7), (10) through (17), and (20) through (27) of section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 ( 42 U.S.C. 4851b(1) -(3), 42 U.S.C. 4851b(5) -(7), 42 U.S.C. 4851b(10) -(17). 42 U.S.C. 4851b(20) -(27), shall apply: (1) Nonprofit; nonprofit organization The terms nonprofit and nonprofit organization mean a corporation, community chest, fund, or foundation not organized for profit, but organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes; or an organization not organized for profit but operated exclusively for the promotion of social welfare. (2) Public housing; public housing agency; low-income family The terms public housing , public housing agency , and low-income family have the same meaning given such terms in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ). (3) State; unit of general local government The terms State and unit of general local government have the same meaning given such terms in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 ). (e) Grant compliance For any grant of assistance under this section, a State or unit of general local government may assume responsibilities for elements of grant compliance, regardless of whether it is the grant recipient, if the State or unit of general local government is permitted to assume responsibility for the applicable element of grant compliance for grants for which it is the recipient under section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 ( 42 U.S.C. 4852 ). (f) Implementation The Secretary shall have the authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40103. Unlocking possibilities program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,646,000,000 for awarding grants under section 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321) awarded on a competitive basis to eligible recipients to carry out grants under subsection (c) of this section; (2) $8,000,000 for research and evaluation related to housing planning and other associated costs; (3) $30,000,000 to provide technical assistance to grantees or applicants for grants made available by this section; and (4) $66,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and community and economic development programs overseen by the Secretary generally, including information technology, financial reporting, research and evaluations, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Program establishment The Secretary of Housing and Urban Development shall establish a competitive grant program for— (1) planning grants to develop and evaluate housing plans and substantially improve housing strategies; (2) streamlining regulatory requirements and shorten processes, reform zoning codes, increasing capacity to conduct housing inspections, or other initiatives that reduce barriers to housing supply elasticity and affordability; (3) developing and evaluating local or regional plans for community development to substantially improve community development strategies related to sustainability, fair housing, and location efficiency; (4) implementation and livable community investment grants; and (5) research and evaluation. (c) Grants (1) Planning grants The Secretary shall, under selection criteria determined by the Secretary, award grants under this paragraph on a competitive basis to eligible entities to assist planning activities, including administration of such activities, engagement with community stakeholders and housing practitioners, to— (A) develop housing plans; (B) substantially improve State or local housing strategies; (C) develop new regulatory requirements and processes, reform zoning codes, increasing capacity to conduct housing inspections, or undertake other initiatives to reduce barriers to housing supply elasticity and affordability; (D) develop local or regional plans for community development; and (E) substantially improve community development strategies, including strategies to increase availability and access to affordable housing, to further access to public transportation or to advance other sustainable or location-efficient community development goals. (2) Implementation and livable community investment grants The Secretary shall award implementation grants under this paragraph on a competitive basis to eligible entities for the purpose of implementing and administering— (A) completed housing strategies and housing plans and any planning to affirmatively further fair housing within the meaning of subsections (d) and (e) of section 808 of the Fair Housing Act ( 42 U.S.C. 608 ) and applicable regulations and for community investments that support the goals identified in such housing strategies or housing plans; (B) new regulatory requirements and processes, reformed zoning codes, increased capacity to conduct housing inspections, or other initiatives to reduce barriers to housing supply elasticity and affordability that are consistent with a plan under subparagraph (A); (C) completed local or regional plans for community development and any planning to increase availability and access to affordable housing, access to public transportation and other sustainable or location-efficient community development goals. (d) Coordination with FTA Administrator To the extent practicable, the Secretary shall coordinate with the Federal Transit Administrator in carrying out this section. (e) Definitions For purposes of this section, the following definitions apply: (1) Eligible entity The term eligible entity means— (A) a State, insular area, metropolitan city, or urban county, as such terms are defined in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 ); or (B) for purposes of grants under subsection (b)(1), a regional planning agency or consortia. (2) Housing plan; housing strategy (A) Housing plan The term housing plan means a plan of an eligible entity to, with respect to the area within the jurisdiction of the eligible entity— (i) match the creation of housing supply to existing demand and projected demand growth in the area, with attention to preventing displacement of residents, reducing the concentration of poverty, and meaningfully reducing and not perpetuating housing segregation on the basis of race, color, religion, natural origin, sex, disability, or familial status; (ii) increase the affordability of housing in the area, increase the accessibility of housing in the area for people with disabilities, including location-efficient housing, and preserve or improve the quality of housing in the area; (iii) reduce barriers to housing development in the area, with consideration for location efficiency, affordability, and accessibility; and (iv) coordinate with the metropolitan transportation plan of the area under the jurisdiction of the eligible entity, or other regional plan. (B) Housing strategy The term housing strategy means the housing strategy required under section 105 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12705 ). (f) Costs to grantees Up to 15 percent of a recipient’s grant may be used for administrative costs. (g) Rules of construction (1) In general Except as otherwise provided by this section, amounts appropriated or otherwise made available under this section shall be subject to the community development block grant program requirements under subsection (a)(1). (2) Exceptions (A) Housing Construction Expenditures on new construction of housing shall be an eligible expense under this section. (B) Buildings for General Conduct of Government Expenditures on building for the general conduct of government, other than the Federal Government, shall be eligible under this section when necessary and appropriate as a part of a natural hazard mitigation project. (h) Waivers The Secretary may waive or specify alternative requirements for any provision of subsection (a)(1) or regulation for the administration of the amounts made available under this section other than requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is not inconsistent with the overall purposes of such Act and that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (i) Implementation The Secretary shall have the authority to issue such regulations notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40104. Strengthening resilience under national flood insurance program (a) NFIP program activities (1) Cancellation All indebtedness of the Administrator of the Federal Emergency Management Agency under any notes or other obligations issued pursuant to section 1309(a) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4016(a) ) and section 15(e) of the Federal Insurance Act of 1956 ( 42 U.S.C. 2414(e) ), and outstanding as of the date of the enactment of this Act, is hereby cancelled, the Administrator and the National Flood Insurance Fund are relieved of all liability under any such notes or other obligations, including for any interest due, including capitalized interest, and any other fees and charges payable in connection with such notes and obligations. (2) Use of savings for flood mapping In addition to amounts otherwise available, for each of fiscal years 2022 and 2023, an amount equal to the interest the National Flood Insurance Program would have accrued from servicing the canceled debt under paragraph (1) in that fiscal year, which shall be derived from offsetting amounts collected under section 1310(d) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017(d) ) and shall remain available until expended for activities identified in section 100216 (b)(1)(A) of the Biggert-Waters Flood Insurance Reform Act of 2012 ( 42 U.S.C. 4101b(b)(1)(A) ) and related salaries and administrative expenses. (b) Means-tested assistance for National Flood Insurance Program policyholders (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2026, to provide assistance to eligible policyholders in the form of graduated discounts for insurance costs with respect to covered properties. (2) Terms and conditions (A) Discounts The Administrator shall use funds provided under this subsection to establish graduated discounts available to eligible policyholders under this subsection, with respect to covered properties, which may be based on the following factors: (i) The percentage by which the household income of the eligible policyholder is equal to, or less than, 120 percent of the area median income for the area in which the property to which the policy applies is located. (ii) The number of eligible policyholders participating in the program authorized under this subsection. (iii) The availability of funding. (B) Distribution of premium With respect to the amount of the discounts provided under this subsection in a fiscal year, and any administrative expenses incurred in carrying out this subsection for that fiscal year, the Administrator shall, from amounts made available to carry out this subsection for that fiscal year, deposit in the National Flood Insurance Fund established under section 1310 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017 ) an amount equal to those discounts and administrative expenses, except to the extent that section 1310A of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017a ) applies to any portion of those discounts or administrative expenses, in which case the Administrator shall deposit an amount equal to those amounts to which such section 1310A applies in the National Flood Insurance Reserve Fund established under such section 1310A. (C) Requirement on timing Not later than 21 months after the date of the enactment of this section, the Administrator shall issue interim guidance to implement this subsection which shall expire on the later of— (i) the date that is 60 months after the date of the enactment of this section; or (ii) the date on which a final rule issued to implement this subsection takes effect. (3) Definitions In this subsection: (A) Administrator The term Administrator means the Administrator of the Federal Emergency Management Agency. (B) Covered property The term covered property means— (i) a primary residential dwelling designed for the occupancy of from 1 to 4 families; or (ii) personal property relating to a dwelling described in clause (i) or personal property in the primary residential dwelling of a renter. (C) Eligible policyholder The term eligible policyholder means a policyholder with a household income that is not more than 120 percent of the area median income for the area in which the property to which the policy applies is located. (D) Insurance costs The term insurance costs means insurance premiums, fees, and surcharges charged under the National Flood Insurance Program, with respect to a covered property for a year. 40105. Community Restoration and Revitalization Fund (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Community Restoration and Revitalization Fund established under subsection (b) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $2,000,000,000 for awards of planning and implementation grants under section 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2), 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321), awarded on a competitive basis to eligible recipients, as defined under subsection (c)(2) of this section, to carry out community-led projects to create equitable civic infrastructure and create or preserve affordable, accessible housing, including creating, expanding, and maintaining community land trusts and shared equity homeownership programs; (2) $500,000,000 for planning and implementation grants under section 101, 102, 103, 104(a) through 104(i), 104(l), 104(m), 105(a) through 105(g), 106(a)(2), 106(a)(4), 106(b) through 106(f), 109, 110, 111, 113, 115, 116, 120, and 122 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 , 5302, 5303, 5304(a)-(i), 5304(l), 5304(m), 5305(a)-(g), 5306(a)(2) 5306(a)(4), 5306(b)-(f), 5309, 5310, 5311, 5313, 5315, 5316, 5319, and 5321), awarded on a competitive basis to eligible recipients to create, expand, and maintain community land trusts and shared equity homeownership, including through the acquisition, rehabilitation, and new construction of affordable, accessible housing; (3) $400,000,000 for the Secretary to provide technical assistance, capacity building, and program support to applicants, potential applicants, and recipients of amounts appropriated for grants under this section; and (4) $100,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and community and economic development programs overseen by the Secretary generally, including information technology, financial reporting, research and evaluations, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs. (b) Establishment of Fund The Secretary of Housing and Urban Development (in this section referred to as the Secretary ) shall establish a Community Restoration and Revitalization Fund (in this section referred to as the Fund ) to award planning and implementation grants on a competitive basis to eligible recipients as defined in this section for activities authorized under subsections (a) through (g) of section 105 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305 ) and under this section for community-led affordable housing and civic infrastructure projects. (c) Eligible geographical areas, recipients, and applicants (1) Geographical areas The Secretary shall award grants from the Fund to eligible recipients within geographical areas at the neighborhood, county, or census tract level, including census tracts adjacent to the project area that are areas in need of investment, as demonstrated by two or more of the following factors: (A) High and persistent rates of poverty. (B) Population at risk of displacement due to rising housing costs. (C) Dwelling unit sales prices that are lower than the cost to acquire and rehabilitate, or build, a new dwelling unit. (D) High proportions of residential and commercial properties that are vacant due to foreclosure, eviction, abandonment, or other causes. (E) Low rates of homeownership by race and ethnicity, relative to the national homeownership rate. (2) Eligible recipient An eligible recipient of a planning or implementation grant under subsection (a)(1) or an implementation grant under subsection (a)(2) shall be a local partnership of a lead applicant and one or more joint applicants with the ability to administer the grant. An eligible recipient of a planning grant under subsection (b)(1) shall be a lead applicant with the ability to administer the grant, including a regional, State, or national nonprofit. (d) Eligible recipients and applicants (1) Lead applicant An eligible lead applicant for a grant awarded under this section shall be an entity that is located within or serves the geographic area of the project, or derives its mission and operational priorities from the needs of the geographic area of the project, demonstrates a commitment to anti-displacement efforts, and that is— (A) a nonprofit organization that has expertise in community planning, engagement, organizing, housing and community development; (B) a community development corporation; (C) a community housing development organization; (D) a community-based development organization; or (E) a community development financial institution, as defined by section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ). (2) Joint applicants A joint applicant shall be an entity eligible to be a lead applicant in paragraph (1), or a local, regional, or national— (A) nonprofit organization; (B) community development financial institution; (C) unit of general local government; (D) Indian tribe; (E) State housing finance agency; (F) land bank; (G) fair housing enforcement organization (as such term is defined in section 561 of the Housing and Community Development Act of 1987 ( 42 U.S.C. 3616a )); (H) public housing agency; (I) tribally designated housing entity; or (J) philanthropic organization. (3) Lack of local entity A regional, State, or national nonprofit organization may serve as a lead entity if there is no local entity that meets the geographic requirements in paragraph (1). (e) Uses of funds (1) In general Planning and implementation grants awarded under this section shall be used to support civic infrastructure and housing-related activities. (2) Implementation grants Implementation grants awarded under this section may be used for activities eligible under subsections (a) through (g) of section 105 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305 ) and other activities to support civic infrastructure and housing-related activities, including— (A) new construction of housing; (B) demolition of abandoned or distressed structures, but only if such activity is part of a strategy that incorporates rehabilitation or new construction, anti-displacement efforts such as tenants’ right to return and right of first refusal to purchase, and efforts to increase affordable, accessible housing and homeownership, except that not more than 10 percent of any grant made under this section may be used for activities under this subparagraph unless the Secretary determines that such use is to the benefit of existing residents; (C) facilitating the creation, maintenance, or availability of rental units, including units in mixed-use properties, affordable and accessible to a household whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary, for a period of not less than 30 years; (D) facilitating the creation, maintenance, or availability of homeownership units affordable and accessible to households whose incomes do not exceed 120 percent of the median income for the area, as determined by the Secretary; (E) establishing or operating land banks; and (F) providing assistance to existing residents experiencing economic distress or at risk of displacement, including purchasing nonperforming mortgages and clearing and obtaining formal title. (3) Community Land Trust grants and shared equity homeownership grants An eligible recipient of a community land trust grant awarded for establishing and operating a community land trust or shared equity homeownership program; creation, subsidization, construction, acquisition, rehabilitation, and preservation of housing in a community land trust or shared equity homeownership program, and expanding the capacity of the recipient to carry out the grant. (f) Waivers The Secretary may waive or specify alternative requirements for any provision of subsection (a)(1) or (a)(2), or regulation for the administration of the amounts made available under this section other than requirements related to fair housing, nondiscrimination, labor standards, and the environment, upon a finding that the waiver or alternative requirement is not inconsistent with the overall purposes of such Act and that the waiver or alternative requirement is necessary to expedite or facilitate the use of amounts made available under this section. (g) Definitions For purposes of this section, the following definitions shall apply: (1) Community land trust The term community land trust ’ means a nonprofit organization or State or local governments or instrumentalities that— (A) use a ground lease or deed covenant with an affordability period of at least 30 years or more to— (i) make rental and homeownership units affordable to households; and (ii) stipulate a preemptive option to purchase the affordable rentals or homeownership units so that the affordability of the units is preserved for successive income-eligible households; and (B) monitor properties to ensure affordability is preserved. (2) Land bank The term land bank means a government entity, agency, or program, or a special purpose nonprofit entity formed by one or more units of government in accordance with State or local land bank enabling law, that has been designated by one or more State or local governments to acquire, steward, and dispose of vacant, abandoned, or other problem properties in accordance with locally-determined priorities and goals. (3) Shared equity homeownership program The term shared equity homeownership program means a program to facilitate affordable homeownership preservation through a resale restriction program administered by a community land trust, other nonprofit organization, or State or local government or instrumentalities and that utilizes a ground lease, deed restriction, subordinate loan, or similar mechanism that includes provisions ensuring that the program shall— (A) maintain the home as affordable for subsequent very low-, low-, or moderate-income families for an affordability term of at least 30 years after recordation; (B) apply a resale formula that limits the homeowner’s proceeds upon resale; and (C) provide the program administrator or such administrator’s assignee a preemptive option to purchase the homeownership unit from the homeowner at resale. (h) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40106. Fair housing activities and investigations (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $540,000,000, to remain available until September 30, 2026, for the Fair Housing Initiatives Program under section 561 of the Housing and Community Development Act of 1987 ( 42 U.S.C. 3616a ) to ensure existing and new fair housing organizations have expanded and strengthened capacity to address fair housing inquiries and complaints, conduct local, regional, and national testing and investigations, conduct education and outreach activities, and address costs of delivering or adapting services to meet increased housing market activity and evolving business practices in the housing, housing-related, and lending markets. Amounts made available under this section shall support greater organizational continuity and capacity, including through up to 10-year grants; and (2) $160,000,000, to remain available until September 30, 2031, for the costs to the Secretary of administering and overseeing the implementation of this section and the Fair Housing Initiatives and Fair Housing Assistance Programs generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. (b) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40107. Intergovernmental fair housing activities and investigations In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $75,000,000 for support for cooperative efforts with State and local agencies administering fair housing laws under section 817 of the Fair Housing Act ( 42 U.S.C. 3616 ) to assist the Secretary to affirmatively further fair housing, and for Fair Housing Assistance Program cooperative agreements with interim certified and certified State and local agencies, under the requirements of subpart C of part 115 of title 24, Code of Federal Regulations, to ensure expanded and strengthened capacity of substantially equivalent agencies to assume a greater share of the responsibility for the administration and enforcement of fair housing laws; and (2) $25,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the Fair Housing Assistance and Fair Housing Initiatives Programs generally, including information technology, financial reporting, research and evaluations, other cross-program costs in support of programs administered by the Secretary in this title, and other costs. C Homeownership Investments 40201. First-Generation Downpayment Assistance (a) Appropriation In addition to amounts otherwise available, there is appropriated to the First Generation Downpayment Fund to increase equal access to homeownership, established under subsection (b) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $6,825,000,000, to remain available until September 30, 2026, for the First-Generation Downpayment Assistance Fund under this section for allocation to each State in accordance with a formula established by the Secretary, which shall take into consideration best available data to approximate the number of potential qualified homebuyers as defined in subsection (e)(7) as well as median area home prices, to carry out the eligible uses of the Fund as described in subsection (d); (2) $2,275,000,000, to remain available until September 30, 2026, for the First-Generation Downpayment Assistance Program under this section for competitive grants to eligible entities to carry out the eligible uses of the Fund as described in subsection (d); (3) $500,000,000, to remain available until September 30, 2031, for the costs of providing housing counseling required under the First-Generation Downpayment Assistance Program under subsection (d)(1); and (4) $400,000,000, to remain available until September 30, 2031, for the costs to the Secretary of Housing and Urban Development of administering and overseeing the implementation of the First-Generation Downpayment Assistance Program, including information technology, financial reporting, programmatic reporting, research and evaluations, which shall include the program’s impact on racial and ethnic disparities in homeownership rates, technical assistance to recipients of amounts under this section, and other cross-program costs in support of programs administered by the Secretary in this Act, and other costs. (b) Establishment The Secretary of Housing and Urban Development shall establish and manage a fund to be known as the First Generation Downpayment Fund (in this section referred to as the Fund ) for the uses set forth in subsection (d). (c) Allocation of Funds (1) Initial allocation The Secretary shall allocate and award funding provided by subsection (a) as provided under such subsection not later than 12 months after the date of the enactment of this section. (2) Reallocation If a State or eligible entity does not demonstrate the capacity to expend grant funds provided under this section, the Secretary may recapture amounts remaining available to a grantee that has not demonstrated the capacity to expend such funds in a manner that furthers the purposes of this section and shall reallocate such amounts among any other States or eligible entities that have demonstrated to the Secretary the capacity to expend such amounts in a manner that furthers the purposes of this section. (d) Terms and conditions of grants allocated or awarded from Fund (1) Uses of funds States and eligible entities receiving grants from the Fund shall use such grants to provide assistance to or on behalf of a qualified homebuyer who has completed a program of housing counseling provided through a housing counseling agency approved by the Secretary or other adequate homebuyer education before entering into a sales purchase agreement for— (A) costs in connection with the acquisition, involving an eligible mortgage loan, of an eligible home, including downpayment costs, closing costs, and costs to reduce the rates of interest on eligible mortgage loans; (B) subsidies to make shared equity homes affordable to eligible homebuyers; and (C) pre-occupancy home modifications to accommodate qualified homebuyers or members of their household with disabilities; (2) Amount of assistance Assistance under this section— (A) may be provided to or on behalf of any qualified homebuyer; (B) may be provided to or on behalf of any qualified homebuyer only once in the form of grants or forgivable, non-amortizing, non-interest-bearing loans that may only be required to be repaid pursuant to paragraph (d)(4); and (C) may not exceed the greater of $20,000 or 10 percent of the purchase price in the case of a qualified homebuyer, not to include assistance received under subsection (d)(1)(C) for disability related home modifications, except that the Secretary may increase such maximum limitation amounts for qualified homebuyers who are economically disadvantaged. (3) Prohibition of priority or recoupment of funds In selecting qualified homebuyers for assistance with grant amounts under this section, a State or eligible entity may not provide any priority or preference for homebuyers who are acquiring eligible homes with a mortgage loan made, insured, guaranteed, or otherwise assisted by the State housing finance agency for the State, any other housing agency of the State, or an eligible entity when applicable, nor may the State or eligible entity seek to recoup any funds associated with the provision of downpayment assistance to the qualified homebuyer, whether through premium pricing or otherwise, except as provided in paragraph (4) of this subsection or otherwise authorized by the Secretary. (4) Repayment of assistance (A) Requirement The Secretary shall require that, if a homebuyer to or on behalf of whom assistance is provided from grant amounts under this section fails or ceases to occupy the property acquired using such assistance as the primary residence of the homebuyer, except in the case of assistance provided in connection with the purchase of a principal residence through a shared equity homeownership program, the homebuyer shall repay to the State or eligible entity, as applicable, in a proportional amount of the assistance the homebuyer receives based on the number of years they have occupied the eligible home up to 5 years, except that no assistance shall be repaid if the qualified homebuyer occupies the eligible home as a primary residence for 5 years or more. (B) Limitation Notwithstanding subparagraph (A), a homebuyer to or on behalf of whom assistance is provided from grant amounts under this section shall not be liable to the State or eligible entity for the repayment of the amount of such shortage if the homebuyer fails or ceases to occupy the property acquired using such assistance as the principal residence of the homebuyer at least in part because of a hardship, or sells the property acquired with such assistance before the expiration of the 60-month period beginning on such date of acquisition and the capital gains from such sale to a bona fide purchaser in an arm’s length transaction are less than the amount the homebuyer is required to repay the State or eligible entity under subparagraph (A). (5) Reliance on borrower attestations No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under subparagraphs (B) and (C) of subsection (e)(7) and no State, eligible entity, or creditor shall be subject to liability based on the accuracy of such attestation. (6) Costs to grantee States and eligible entities receiving grants from the Fund may use a portion of such grants for administrative costs up to the limit specified by the Secretary. (e) Definitions For purposes of this section, the following definitions shall apply: (1) Eligible entity The term eligible entity means— (A) a minority depository institution, as such term is defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note); (B) a community development financial institution, as such term is defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ), that is certified by the Secretary of the Treasury and targets services to minority and low-income populations or provides services in neighborhoods having high concentrations of minority and low-income populations; (C) any other nonprofit entity that the Secretary finds has a track record of providing assistance to homeowners, targets services to minority and low-income or provides services in neighborhoods having high concentrations of minority and low-income populations; and (D) a unit of general local government, as such term is defined in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 ). (2) Eligible home The term eligible home means a residential dwelling that— (A) consists of 1 to 4 dwelling units; and (B) will be occupied by the qualified homebuyer as the primary residence of the homebuyer. (3) Eligible mortgage loan The term eligible mortgage loan means a single-family residential mortgage loan that— (A) meets the underwriting requirements and dollar amount limitations for acquisition by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; (B) is made, insured, or guaranteed under any program administered by the Secretary; (C) is made, insured, or guaranteed by the Rural Housing Administrator of the Department of Agriculture; (D) is a qualified mortgage, as such term is defined in section 129C(b)(2) of the Truth in Lending Act ( 15 U.S.C. 1639c(b)(2) ); or (E) is made, insured, or guaranteed for the benefit of a veteran. (4) First generation homebuyer The term first-generation homebuyer means a homebuyer that is, as attested by the homebuyer— (A) an individual— (i) whose parents or legal guardians do not, or did not at the time of their death, to the best of the individual’s knowledge, have any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel; and (ii) whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether the individual is a co-borrower on the loan or not; or (B) an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether such individuals are co-borrowers on the loan or not. (5) Heir property The term heir property means residential property for which title passed by operation of law through intestacy and is held by two or more heirs as tenants in common. (6) Ownership interest The term ownership interest means any ownership, excluding any interest in heir property, in— (A) real estate in fee simple; (B) a leasehold on real estate under a lease for not less than ninety-nine years which is renewable; or (C) a fee interest in, or long-term leasehold interest in, real estate consisting of a one-family unit in a multifamily project, including a project in which the dwelling units are attached, or are manufactured housing units, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project. (7) Qualified homebuyer The term qualified homebuyer means a homebuyer— (A) having an annual household income that is less than or equal to— (i) 120 percent of median income, as determined by the Secretary, for— (I) the area in which the home to be acquired using such assistance is located; or (II) the area in which the place of residence of the homebuyer is located; or (ii) 140 percent of the median income, as determined by the Secretary, for the area within which the eligible home to be acquired using such assistance is located if the homebuyer is acquiring an eligible home located in a high-cost area; (B) who is a first-time homebuyer, as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ), except that for the purposes of this section the reference in such section 104 to title II shall be considered to refer to this section, and except that ownership of heir property shall not be treated as owning a home for purposes of determining whether a borrower qualifies as a first-time homebuyer; and (C) who is a first-generation homebuyer. (8) Secretary The term Secretary means the Secretary of Housing and Urban Development. (9) Shared equity homeownership program (A) In general The term shared equity homeownership program means affordable homeownership preservation through a resale restriction program administered by a community land trust, other nonprofit organization, or State or local government or instrumentalities. (B) Affordability requirements Any such program under subparagraph (A) shall— (i) provide affordable homeownership opportunities to households; and (ii) utilize a ground lease, deed restriction, subordinate loan, or similar mechanism that includes provisions ensuring that the program shall— (I) maintain the homeownership unit as affordable for subsequent very low-, low-, or moderate-income families for an affordability term of at least 30 years after recordation; (II) apply a resale formula that limits the homeowner’s proceeds upon resale; and (III) provide the program administrator or such administrator’s assignee a preemptive option to purchase the homeownership unit from the homeowner at resale. (10) State The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. (f) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40202. Home loan program (a) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $4,000,000,000 to the Secretary of Housing and Urban Development for the cost of guaranteed or insured loans and other obligations, including the cost of modifying such loans, under subsection (e)(1)(A); (2) $500,000,000 to the Secretary of Housing and Urban Development for costs of carrying out the program under paragraph (1) and programs of the Federal Housing Administration and the Government National Mortgage Association generally, including information technology, financial reporting, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs; (3) $150,000,000 to the Secretary of Agriculture for the cost of guaranteed and insured loans and other obligations, including the cost of modifying such loans, under subsection (e)(1)(B); (4) $50,000,000 to the Secretary of Agriculture for the costs of carrying out the program under paragraph (3) and programs of the Rural Housing Service generally, including information technology and financial reporting in support of the Program administered by the Secretary of Agriculture in this title; and (5) $300,000,000 to the Secretary of Treasury for the costs of carrying out the program under this section. (b) Use of funds (1) In general (A) The Secretary of Housing and Urban Development and the Secretary of Agriculture shall use the funds provided under subsections (a)(1), (a)(2), (a)(3), and (a)(4) to carry out the programs under subsections (a)(1) and (a)(3) to make covered mortgage loans. (B) The Secretary of the Treasury shall use the funds provided under subsections (a)(5) and (b)(2) to— (i) purchase, on behalf of the Secretary of Housing and Urban Development, securities that are secured by covered mortgage loans, and sell, manage, and exercise any rights received in connection with, any financial instruments or assets acquired pursuant to the authorities granted under this section, including, as appropriate, establishing and using vehicles to purchase, hold, and sell such financial instruments or assets; (ii) designate one or more banks, security brokers or dealers, asset managers, or investment advisers, as a financial agent of the Federal Government to perform duties related to authorities granted under this section; and (iii) use the services of the Department of Housing and Urban Development on a reimbursable basis, and the Secretary of Housing and Urban Development is authorized to provide services as requested by the Secretary of Treasury using all authorities vested in or delegated to the Department of Housing and Urban Development. (2) Transfer of amounts to Treasury Such portions of the appropriation to the Secretary of Housing and Urban Development shall be transferred by the Secretary of Housing and Urban Development to the Department of the Treasury from time-to-time in an amount equal to, as determined by the Secretary of the Treasury in consultation with the Secretary of Housing and Urban Development, the amount necessary for the purchase of securities under the Program during the period for which the funds are intended to be available. (3) Use of proceeds Revenues of and proceeds from the sale, exercise, or surrender of assets purchased or acquired under the Program under this section shall be available to the Secretary of the Treasury through September 30, 2031, for purposes of purchases under subsection (b)(1)(B)(i). (c) Limitation on aggregate loan insurance or guarantee authority The aggregate original principal obligation of all covered mortgage loans insured or guaranteed under subsection (e)(1)(A) of this section may not exceed $48,000,000,000, and under section (e)(1)(B) may not exceed $12,000,000,000. (d) GNMA guarantee authority and fee To carry out the purposes of this section, the Government National Mortgage Association may enter into new commitments to issue guarantees of securities based on or backed by mortgages insured or guaranteed under this section, not exceeding $60,000,000,000, and shall collect guaranty fees consistent with section 306(g)(1) of the National Housing Act ( 12 U.S.C. 1721(g)(1) ) that are paid at securitization. (e) Definitions In this section: (1) Covered mortgage loan (A) In general The term covered mortgage loan means, for purposes of the Program established by the Secretary of Housing and Urban Development, a mortgage loan that— (i) is insured by the Federal Housing Administration pursuant to section 203(b) of the National Housing Act, subject to the eligibility criteria set forth in this subsection, and has a case number issued on or before December 31, 2029; (ii) is made for an original term of 20 years with a monthly mortgage payment of principal and interest that is not more than 110 percent and not less than 100 percent of the monthly payment of principal, interest, and periodic mortgage insurance premium associated with a newly originated 30-year mortgage loan with the same loan balance insured by the agency as determined by the Secretary; (iii) subject to subparagraph (C) of this paragraph and notwithstanding section 203(c)(2) of the National Housing Act ( 12 U.S.C. 1709(c)(2) ), has a mortgage insurance premium of not more than 4 percent of the loan balance that is paid at closing, financed into the principal balance of the loan, paid through an annual premium, or a combination thereof; (iv) involves a rate of interest that is fixed over the term of the mortgage loan; and (v) is secured by a single-family residence that is the principal residence of an eligible homebuyer. (B) The term covered mortgage loan means, for purposes of the Program established by the Secretary of Agriculture, a loan guaranteed under section 502(h) of the Housing Act of 1949 ( 42 U.S.C. 1472(h) ) that— (i) notwithstanding section 502(h)(7)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(7)(A) ), is made for an original term of 20 years with a monthly mortgage payment of principal and interest that is not more than 110 percent and not less than 100 percent of the monthly payment of principal, interest, and loan guarantee fee associated with a newly originated 30-year mortgage loan with the same loan balance guaranteed by the agency as determined by the Secretary; and (ii) subject to subparagraph (C) of this paragraph and notwithstanding section 502(h)(8)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(8)(A) ), has a loan guarantee fee of not more than 4 percent of the principal obligation of the loan. (C) Waiver and alternative requirements The Secretary of Housing and Urban Development and the Secretary of Agriculture, in consultation with the Secretary of the Treasury, and notwithstanding paragraph (8)(A) of section 502(h) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(8)(A) ) for purposes of the Program established by the Secretary of Agriculture, may waive or specify alternative requirements for subsection (e)(1)(A)(ii) or (e)(1)(B)(i) for covered mortgage loans in connection with the use of amounts made available under this section upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (2) Eligible homebuyer The term eligible homebuyer means an individual who— (A) for purposes of the Program established by the Secretary of Housing and Urban Development— (i) has an annual household income that is less than or equal to— (I) 120 percent of median income for the area, as determined by the Secretary of Housing and Urban Development for— (aa) the area in which the home to be acquired using such assistance is located; or (bb) the area in which the place of residence of the homebuyer is located; or (II) if the homebuyer is acquiring an eligible home that is located in a high-cost area, 140 percent of the median income, as determined by the Secretary, for the area within which the eligible home to be acquired using assistance provided under this section is located; (ii) is a first-time homebuyer, as defined in paragraph (4) of this subsection; and (iii) is a first-generation homebuyer as defined in paragraph (3) of this subsection; (B) for purposes of the Program established by the Secretary of Agriculture— (i) meets the applicable requirements in section 502(h) of the Housing Act of 1949 ( 42 U.S.C. 1472(h) ); and (ii) is a first-time homebuyer as defined in paragraph (4) of this subsection and a first-generation homebuyer as defined in paragraph (3) of this subsection. (3) First-generation homebuyer The term first-generation homebuyer means a homebuyer that, as attested by the homebuyer, is— (A) an individual— (i) whose parents or legal guardians do not, or did not at the time of their death, to the best of the individual’s knowledge, have any present ownership interest in a residence in any State or ownership of chattel, excluding ownership of heir property; and (ii) whose spouse, or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, have any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether the individual is a co-borrower on the loan or not; or (B) an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether such individuals are co-borrowers on the loan or not. (4) First-time homebuyer The term first-time homebuyer means a homebuyer as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ), except that for the purposes of this section the reference in such section 12704(14) to title II shall be considered to refer to this section, and except that ownership of heir property shall not be treated as owning a home for purposes of determining whether a borrower qualifies as a first-time homebuyer. (5) Heir property The term heir property means residential property for which title passed by operation of law through intestacy and is held by two or more heirs as tenants in common. (6) Ownership interest The term ownership interest means any ownership, excluding any interest in heir property, in— (A) real estate in fee simple; (B) a leasehold on real estate under a lease for not less than ninety-nine years which is renewable; or (C) a fee interest in, or long-term leasehold interest in, real estate consisting of a one-family unit in a multifamily project, including a project in which the dwelling units are attached, or are manufactured housing units, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project. (7) State The term State means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. (f) Reliance on borrower attestations No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under clauses (ii) and (iii) of subsection (e)(2)(A) and clause (ii) of subsection (e)(2)(B) and no State, eligible entity, or creditor shall be subject to liability based on the accuracy of such attestation. (g) Implementation The Secretary of Housing and Urban Development, the Secretary of Agriculture, and the Secretary of Treasury shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40203. HUD-insured small dollar mortgage demonstration program (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $76,000,000 for a program to increase access to small-dollar mortgages, as defined in subsection (b), which may include payment of incentives to lenders, adjustments to terms and costs, individual financial assistance, technical assistance to lenders and certain financial institutions to help originate loans, lender and borrower outreach, and other activities; (2) $10,000,000 for the cost of insured or guaranteed loans, including the cost of modifying loans; and (3) $14,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and programs in the Office of Housing generally, including information technology, financial reporting, research and evaluations, fair housing and fair lending compliance, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs. (b) Small-dollar mortgage For purposes of this section, the term small-dollar mortgage means a forward mortgage that— (1) has an original principal balance of $100,000 or less; (2) is secured by a one- to four-unit property that is the mortgagor’s principal residence; and (3) is insured or guaranteed by the Secretary. (c) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40204. Investments in rural homeownership (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Rural Housing Service of the Department of Agriculture for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended— (1) $90,000,000 for providing single family housing repair grants under section 504(a) of the Housing Act of 1949 ( 42 U.S.C. 1474(a) ), subject to the terms and conditions in subsection (b) of this section; (2) $10,000,000 for administrative expenses of the Rural Housing Service of the Department of Agriculture that in whole or in part support activities funded by this section and related activities. (b) Terms and conditions (1) Eligibility Eligibility for grants from amounts made available by subsection (a)(1) shall not be subject to the limitations in section 3550.103(b) of title 7, Code of Federal Regulations. (2) Uses Notwithstanding the limitations in section 3550.102(a) of title 7, Code of Federal Regulations, grants from amounts made available by subsection (a)(2) shall be available for the eligible purposes in section 3550.102(b) of title 7, Code of Federal Regulations. (c) Implementation The Administrator of the Rural Housing Service shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. D HUD Administration, Capacity Building, Technical Assistance, and Agency Oversight 40301. Program administration, training, technical assistance, capacity building, and oversight (a) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated,— (1) $949,250,000 to the Secretary of Housing and Urban Development for— (A) the costs to the Secretary of administering and overseeing the implementation of this title and the Department’s programs generally, including information technology, inspections of housing units, research and evaluation, financial reporting, and other costs; and (B) new awards or increasing prior awards to provide training, technical assistance, and capacity building related to the Department’s programs, including direct program support to program recipients throughout the country, including insular areas, that require such assistance with daily operations; (2) $43,250,000 to the Office of Inspector General of the Department of Housing and Urban Development for necessary salaries and expenses for conducting oversight of amounts provided by this title; (3) $5,000,000 to the Office of Inspector General of the Department of the Treasury for necessary salaries and expenses for conducting oversight of amounts provided by this title; and (4) $2,500,000 to the Office of Inspector General of the Department of the Agriculture for necessary salaries and expenses for conducting oversight of amounts provided by this title. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Implementation The Secretary of Housing and Urban Development shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. 40302. Community-led capacity building (a) Appropriation In addition to amounts otherwise made available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $90,000,000 for competitively awarded funds for technical assistance and capacity building to non-Federal entities, including grants awarded to nonprofit organizations to provide technical assistance activities to community development corporations, community housing development organizations, community land trusts, nonprofit organizations in insular areas, and other mission-driven and nonprofit organizations that target services to low-income and socially disadvantaged populations, and provide services in neighborhoods having high concentrations of minority, low-income, or socially disadvantaged populations to— (A) provide training, education, support, and advice to enhance the technical and administrative capabilities of community development corporations, community housing development organizations, community land trusts, and other mission-driven and nonprofit organizations undertaking affordable housing development, acquisition, preservation, or rehabilitation activities; (B) provide predevelopment assistance to community development corporations, community housing development organizations, and other mission-driven and nonprofit organizations undertaking affordable housing development, acquisition, preservation, or rehabilitation activities; and (C) carry out such other activities as may be determined by the grantees in consultation with the Secretary; and (2) $10,000,000 for the costs to the Secretary of administering and overseeing the implementation of this section and the Department’s technical assistance programs generally, including information technology, research and evaluations, financial reporting, and other cross-program costs in support of programs administered by the Secretary in this title and other costs. Amounts appropriated by this section shall remain available until September 30, 2031. (b) Implementation The Secretary shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner. E Economic Development 40401. Minority Business Development Agency In addition to amounts otherwise available, there is appropriated to the Minority Business Development Agency of the Department of Commerce for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $200,000,000, to remain available until September 30, 2026, for entering into agreements with minority-serving institutions of higher education or consortiums of institutions of higher education that are led by minority-serving institutions of higher education to operate a rural business center to assist minority business enterprises located in rural areas, priority for which shall be given to institutions that have financial need and are located in areas that have a significant population of socially or economically disadvantaged individuals; and (2) $1,000,000,000, to remain available until September 30, 2026, for entering into grants and agreements to— (A) assist the formation and growth of minority business enterprises; (B) establish and provide Federal assistance to minority business centers, specialty centers, and minority business enterprises; (C) make grants to private, nonprofit organizations that can demonstrate that a primary activity of the organization is to provide services to minority business enterprises, priority for which shall be given to organizations located in a Federally recognized area of economic distress; and (D) provide grants and assistance to minority-serving institutions of higher education to develop and implement entrepreneurship curricula and participate in the business center program of the Minority Business Development Agency; and (3) $400,000,000, to remain available until September 30, 2029, to— (A) establish not less than 5 regional offices of the Minority Business Development Agency, 1 of which shall be established in each region of the United States, as determined by the Secretary; (B) assist the formation and growth of minority business enterprises; (C) collect data relating to the needs and development of minority business enterprises; (D) annually review the status of problems and programs relating to capital formation by minority business enterprises; and (E) carry out this section. 40402. Enhanced use of Defense Production Act of 1950 (a) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money at the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2025, to carry out the Defense Production Act of 1950 in accordance with subsection (b). (b) Use Amounts appropriated by subsection (a) shall be used to create, maintain, protect, expand, or restore the domestic industrial base capabilities essential for national and economic security. 40403. Supporting factory-built housing through SSBCI (a) In general Section 3009 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5708 ) is amended— (1) in subsection (c), by striking at the end of the 7-year period beginning on March 11, 2021 and inserting on September 30, 2030 ; and (2) by adding at the end the following: (f) Additional technical assistance with respect to factory-built housing sector The Secretary shall contract with legal, accounting, and financial advisory firms to provide technical assistance to existing and prospective business enterprises within the factory-built housing sector applying to— (1) State programs under the Program; and (2) other State or Federal programs that support small businesses. . (b) Appropriation In addition to amounts otherwise available, there is hereby appropriated to the Secretary of the Treasury for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2030, to carry out the amendments made by subsection (a). V Committee on Homeland Security 50001. Cybersecurity and Infrastructure Security Agency (a) Improving Federal System Cybersecurity In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, for cybersecurity risk mitigation. (b) Cybersecurity Training In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2031, for the Cybersecurity Education and Training Assistance Program, Federal assistance grants under the Cybersecurity Education and Training Assistance Program, and necessary mission support activities. (c) Cybersecurity Awareness, Training, and Workforce Development In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, for improving cybersecurity awareness, training, and workforce development, including necessary mission support activities. (d) Multi-State Information Sharing and Analysis Center In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $35,000,000, to remain available until September 30, 2031, for Federal assistance through cooperative agreements with the Multi-State Information Sharing and Analysis Center. (e) Cybersentry In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for the purpose of protecting critical infrastructure industrial control systems and the CyberSentry program. (f) Cloud security In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for the purpose of executing the secure cloud architecture activities, migration advisory services, and cloud threat hunting capabilities of the Cybersecurity and Infrastructure Security Agency. (g) Industrial control systems security In addition to amounts otherwise made available, there is appropriated to the Cybersecurity and Infrastructure Security Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for the purpose of researching and developing the means by which to secure operational technology and industrial control systems against security vulnerabilities (as such term is defined in section 102(17) of the Cybersecurity Information Sharing Act of 2015 ( 6 U.S.C. 1501(17) ). 50002. Cybersecurity assistance (a) State and local cybersecurity recruitment and training In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $80,000,000, to remain available until September 30, 2031, to the Administrator of the Federal Emergency Management Agency, in consultation with the Cybersecurity and Infrastructure Security Agency, to award grants, contracts, or cooperative agreements to State, local, Tribal, and territorial governments for cybersecurity recruitment and training to enhance efforts to address cybersecurity risks (as defined in paragraph (2) of section 2201 of the Homeland Security Act) and cybersecurity threats (as defined in paragraph (3) of section 2201 of the Homeland Security Act). (b) Migration to .gov domain In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, to the Administrator of the Federal Emergency Management Agency, in consultation with the Cybersecurity and Infrastructure Security Agency, to award grants, contracts, or cooperative agreements to State, local, Tribal, and territorial governments to carry out activities to migrating the online services of such governments to the .gov internet domain. (c) Limitation The Administrator of the Federal Emergency Management Agency may not use amounts appropriated under this section for activities under the National Flood Insurance Act of 1968 or a function of the Federal Emergency Management Agency relating to that Act. 50003. Nonprofit security grant program (a) High-risk urban areas In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, to the Administrator of Federal Emergency Management Agency for the Nonprofit Security Grant Program for grants to nonprofits under the Urban Area Security Initiative. (b) Other areas In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, to the Administrator of the Federal Emergency Management Agency for the Nonprofit Security Grant Program for grants to nonprofits under the State Homeland Security Grant Program. (c) Limitation The Administrator of the Federal Emergency Management Agency may not use amounts appropriated under this section for activities under the National Flood Insurance Act of 1968 or a function of the Federal Emergency Management Agency relating to that Act. 50004. Office of Chief Readiness Support Officer In addition to the amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $900,000,000, to remain available until September 30, 2028, for the Office of the Chief Readiness Support Officer to carry out sustainability and environmental programs. VI Committee on the Judiciary A Immigration Provisions 60001. Protections and work permits (a) In general The Secretary of Homeland Security shall— (1) under section 212(d)(5) of the Immigration and Nationality Act ( 8 U.S.C. 1182(d)(5) ) and consistent with this section, parole into the United States for a period of 5 years or until September 30, 2031, whichever is earlier, an alien described in subsection (b), if such alien— (A) files an application for parole after the date of the enactment of this section; (B) pays an administrative fee in an amount sufficient to cover the cost of processing the application; and (C) completes security and law enforcement background checks to the satisfaction of the Secretary; and (2) for the period during which an alien is paroled into the United States under paragraph (1) and any period in which such parole is extended under subsection (c)— (A) provide employment and travel authorization to such alien; and (B) deem such alien eligible for a driver’s license or identification card under section 202 of the REAL ID Act of 2005 (division B of Public Law 109–13 ; 49 U.S.C. 30301 note). (b) Aliens described An alien is described in this subsection if the alien— (1) before January 1, 2011— (A) was inspected and admitted to the United States; (B) entered the United States without inspection; or (C) was paroled into the United States; (2) has continuously resided in the United States since such entry; and (3) is not inadmissible pursuant to paragraph (2), (3), (6)(E), (8), (10)(A), (10)(C), or (10)(D) of section 212(a) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a) ). (c) Extension Consistent with the requirements under subsection (a), and based on the policies and implementing guidance issued pursuant to this section and in effect when parole was initially granted to the alien under this section, the Secretary of Homeland Security shall extend a grant of parole for an alien described in subsection (b) from the date the initial parole period expires until September 30, 2031. (d) Revocation The Secretary of Homeland Security may not revoke parole granted to an alien under subsection (a) unless the Secretary determines that such alien is ineligible for parole under subsection (b) based on the policies and implementing guidance in effect when parole was initially granted to the alien under this section. (e) Clarifications (1) In general An alien paroled under this section shall not be counted for purposes of the calculation under section 201(c)(4) of the Immigration and Nationality Act ( 8 U.S.C. 1151(c)(4) ). (2) Other relief Nothing in this section shall limit the existing authority of the Secretary of Homeland Security to provide administrative or statutory relief to aliens on an individual or class-wide basis. (f) Confidentiality of information The Secretary of Homeland Security may not disclose information provided in any application filed under this section to U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, or any designee of either such entity or use such information for purposes of immigration enforcement. (g) Interim rules Not later than 90 days after the date of the enactment of this section, the Secretary of Homeland Security shall publish in the Federal Register, interim final rules implementing this section and shall, not later than 90 days after such rules are published, begin accepting and adjudicating applications for parole under subsection (a)(1)(A). 60002. Recapture of unused immigrant visa numbers (a) Ensuring future use of all immigrant visas Section 201(c)(1)(B)(ii) of the Immigration and Nationality Act ( 8 U.S.C. 1151(c)(1)(B)(ii) ) is amended to read as follows: (ii) In no case shall the number computed under subparagraph (A) be less than the sum of— (I) 226,000; and (II) the number computed under paragraph (3). . (b) Recapturing unused visas Section 201 of the Immigration and Nationality Act ( 8 U.S.C. 1151 ) is amended by adding at the end the following: (g) Recapturing unused visas (1) Family-sponsored visas (A) In general Notwithstanding the numerical limitations set forth in this section or in sections 202 or 203, beginning in fiscal year 2022, the number of family-sponsored immigrant visas that may be issued under section 203(a) shall be increased by the number computed under subparagraph (B). (B) Unused visas The number computed under this subparagraph is the difference, if any, between— (i) the difference, if any, between— (I) the number of visas that were originally made available to family-sponsored immigrants under section 201(c)(1) for fiscal years 1992 through 2021, setting aside any unused visas made available to such immigrants in such fiscal years under section 201(c)(3); and (II) the number of visas described in subclause (I) that were issued under section 203(a), or, in accordance with section 201(d)(2)(C), under section 203(b); and (ii) the number of visas resulting from the calculation under clause (i) issued under section 203(a) after fiscal year 2021. (2) Employment-based visas (A) In general Notwithstanding the numerical limitations set forth in this section or in sections 202 or 203, beginning in fiscal year 2022, the number of employment-based immigrant visas that may be issued under section 203(b) shall be increased by the number computed under subparagraph (B). (B) Unused visas The number computed under this paragraph is the difference, if any, between— (i) the difference, if any, between— (I) the number of visas that were originally made available to employment-based immigrants under section 201(d)(1) for fiscal years 1992 through 2021, setting aside any unused visas made available to such immigrants in such fiscal years under section 201(d)(2); and (II) the number of visas described in subclause (I) that were issued under section 203(b), or, in accordance with section 201(c)(3)(C), under section 203(a); and (ii) the number of visas resulting from the calculation under clause (i) issued under section 203(b) after fiscal year 2021. (3) Diversity visas Notwithstanding section 204(a)(1)(I)(ii)(II), an immigrant visa for an alien selected in accordance with section 203(e)(2) in fiscal year 2017, 2018, 2019, 2020, or 2021 shall remain available to such alien (and the spouse and children of such alien) if— (A) the alien was refused a visa, prevented from seeking admission, or denied admission to the United States solely because of Executive Order 13769, Executive Order 13780, Presidential Proclamation 9645, or Presidential Proclamation 9983; or (B) because of restrictions or limitations on visa processing, visa issuance, travel, or other effects associated with the COVID–19 public health emergency— (i) the alien was unable to receive a visa interview despite submitting an Online Immigrant Visa and Alien Registration Application (Form DS–260) to the Secretary of State; or (ii) the alien was unable to seek admission or was denied admission to the United States despite being approved for a visa under section 203(c). . 60003. Adjustment of status Section 245 of the Immigration and Nationality Act ( 8 U.S.C. 1255 ) is amended by adding at the end the following: (n) Visa availability (1) In general Notwithstanding subsection (a)(3), the Secretary of Homeland Security may accept for filing an application for adjustment of status from an alien (and the spouse and children of such alien), if such alien— (A) is the beneficiary of an approved petition under section 204(a)(1); (B) pays a supplemental fee of $1,500, plus $250 for each derivative beneficiary; and (C) is otherwise eligible for such adjustment. (2) Exemption The Secretary of Homeland Security shall exempt an alien (and the spouse and children of such alien) from the numerical limitations described in sections 201, 202, and 203, and the Secretary of Homeland Security may adjust the status of such alien (and the spouse and children of such alien) to lawful permanent resident, if such alien submits or has submitted an application for adjustment of status and— (A) such alien— (i) is the beneficiary of an approved petition under subparagraph (A)(i) or (B)(i)(I) of section 204(a)(1) that bears a priority date that is more than 2 years before the date the alien requests an exemption from the numerical limitations; and (ii) pays a supplemental fee of $2,500; (B) such alien— (i) is the beneficiary of an approved petition under subparagraph (E) or (F) of section 204(a)(1) that bears a priority date that is more than 2 years before the date the alien requests an exemption from the numerical limitations; and (ii) pays a supplemental fee of $5,000; or (C) such alien— (i) is the beneficiary of an approved petition under subparagraph (H) of section 204(a)(1) that bears a priority date that is more than 2 years before the date the alien requests an exemption from the numerical limitations; and (ii) pays a supplemental fee of $50,000. (3) Effective date (A) In general The provisions of this subsection— (i) shall take effect on the earlier of the date that is— (I) 180 days after the date of the enactment of this subsection; or (II) May 1, 2022; and (ii) except as provided in subparagraph (B), shall cease to have effect on September 30, 2031. (B) Continuation Paragraph (2) shall continue in effect with respect to an alien who requested an exemption of the numerical limitations and paid the requisite fee prior to the date described in subparagraph (A)(ii), until the Secretary of Homeland Security renders a final administrative decision on such application. . 60004. Additional supplemental fees (a) Treasury The fees described in this section, section 60001, and section 245(n) of the Immigration and Nationality Act, as added by this subtitle— (1) shall be deposited in the general fund of the Treasury; and (2) may not be waived, in whole or in part. (b) Immigrant visa petitions In addition to any other fee collected in connection with a petition described in this subsection, the Secretary of Homeland Security shall collect a supplemental fee in the amount of— (1) $100 in connection with each petition filed under— (A) section 204(a)(1)(A)(i) of the Immigration and Nationality Act ( 8 U.S.C. 1154(a)(1)(A)(i) ) for classification by reason of a relationship described under paragraph (1), (3), or (4) of section 203(a) of such Act ( 8 U.S.C. 1153(a) ); and (B) section 204(a)(1)(B)(i)(I) of such Act ( 8 U.S.C. 1154(a)(1)(B)(i)(I) ); (2) $800 in connection with each petition filed under subparagraph (E) or (F) of section 204(a)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1154(a)(1) ); and (3) $15,000 in connection with each petition filed under subparagraph (H) of section 204(a)(1) of the Immigration and Nationality Act ( 8 U.S.C. 1154(a)(1) ). (c) Form I-94 or Form I-94W The Secretary of Homeland Security shall collect from each individual who is admitted to the United States as a nonimmigrant, and is issued an electronic or paper arrival/departure record (Form I-94 or Form I-94W, or any successor form), a fee of $19. (d) Student and exchange visitors In addition to any other fee collected from an approved institution of higher education, other approved educational institution, or designated exchange visitor program in the United States, in connection with nonimmigrants described in subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ) enrolled in such institution or program, the Secretary of Homeland Security shall collect a supplemental fee of $250 for each such nonimmigrant. (e) Permanent resident card replacement In addition to any other fee collected in connection with each Application to Replace Permanent Resident Card (Form I-90, or any successor form), filed for purposes of replacing an expired or expiring permanent resident card, the Secretary of Homeland Security shall collect a supplemental fee of $500. (f) Nonimmigrant visa petitions In addition to any other fee collected in connection with a petition filed under section 214 of the Immigration and Nationality Act ( 8 U.S.C. 1184 ), the Secretary of Homeland Security shall collect a supplemental fee of $500 in connection with each such petition for classification as a nonimmigrant under subparagraph (E), (H)(i)(b), (L), (O), or (P) of section 101(a)(15) of such Act ( 8 U.S.C. 1101(a)(15) ). (g) Extend/change status In addition to any other fee collected in connection with each Application to Extend/Change Nonimmigrant Status (Form I-539, or any successor form), the Secretary of Homeland Security shall collect a supplemental fee of $500. (h) Employment authorization In addition to any other fee collected in connection with an application for employment authorization (Form I-765, or any successor form), the Secretary of Homeland Security shall collect a supplemental fee of $500 for each such application filed by an individual seeking such authorization as— (1) the spouse of a nonimmigrant described in subparagraph (E), (H), or (L) of section 101(a)(15) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15) ); (2) a nonimmigrant described in section 101(a)(15)(F) of such Act ( 8 U.S.C. 1101(a)(15)(F) ) to engage in optional practical training; or (3) as an applicant for adjustment of status under section 245(a) of such Act ( 8 U.S.C. 1255(a) ). (i) Effective date The fees authorized by this section shall take effect on the earlier of the date that is— (1) 180 days after the date of the enactment of this Act; and (2) May 1, 2022. 60005. U.S. Citizenship and Immigration Services In addition to amounts otherwise available, there is appropriated to U.S. Citizenship and Immigration Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,800,000,000, to remain available until expended, for the purpose of increasing the capacity of U.S. Citizenship and Immigration Services to adjudicate efficiently applications described in section 60001 of this Act, and section 245(n) of the Immigration and Nationality Act ( 8 U.S.C. 1255(n) ), as added by 60003 of this Act, and to reduce case processing backlogs. B Community Violence Prevention 61001. Funding for community-based violence intervention initiatives (a) In general In addition to amounts otherwise available, there is appropriated to the Attorney General for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,500,000,000, to remain available until September 30, 2031, for the purposes described in subsection (b). (b) Use of funding The Attorney General, acting through the Assistant Attorney General of the Office of Justice Programs, the Director of the Office of Community Oriented Policing Services, and the Director of the Office on Violence Against Women, shall use amounts appropriated by subsection (a)— (1) to award competitive grants or contracts to units of local government, States, the District of Columbia, Indian Tribes, nonprofit community-based organizations, victim services providers, or other entities as determined by the Attorney General, to support evidence-informed intervention strategies to reduce community violence; (2) to support training, technical assistance, research, evaluation, and data collection on strategies to effectively reduce community violence and ensure public safety; and (3) to support research, evaluation, and data collection on the differing impact of community violence on demographic categories. C Antitrust 62001. Antitrust division In addition to amounts otherwise available, there is appropriated to the Attorney General for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2031, for necessary expenses for the Department of Justice Antitrust Division for carrying out work of the Division related to competition or enforcement of the antitrust laws. 62002. Federal trade commission funding for unfair competition and antitrust enforcement work In addition to amounts otherwise available, there is appropriated to the Federal Trade Commission for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000 to remain available until September 30, 2031, for carrying out work of the Commission related to unfair methods of competition or enforcement of the antitrust laws. D Revenue Matters 63001. Additional appropriation for enforcement relating to Federal income tax evasion In addition to amounts otherwise available, there is appropriated to the Attorney General for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $498,000,000, to remain available until September 30, 2030, for necessary expenses for the Department of Justice Tax Division for purposes of enforcing Federal laws against tax evasion, including by pursuing civil cases or prosecuting criminal violations. VII COMMITTEE ON NATURAL RESOURCES A Native American and Native Hawaiian Affairs 70101. Tribal climate resilience (a) Tribal climate resilience and adaptation In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $441,000,000, to remain available until September 30, 2031, for Tribal climate resilience and adaptation programs. (b) Bureau of Indian Affairs fish hatcheries In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $19,600,000, to remain available until September 30, 2031, for fish hatchery operations and maintenance programs of the Bureau of Indian Affairs. (c) Administration In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,400,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. None of the funds provided by this section shall be subject to cost-sharing or matching requirements (d) Small and needy program Amounts made available under this section shall be excluded from the calculation of funds received by those Tribal governments that participate in the Small and Needy program. (e) Distribution; use of funds Amounts made available under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(j) )) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5364(a) )— (1) shall be distributed on a 1-time basis; (2) shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5325(a) –(b)); and (3) shall only be used for the purposes identified under the applicable subsection. 70102. Native Hawaiian climate resilience (a) Native Hawaiian climate resilience and adaptation In addition to amounts otherwise available, there is appropriated to the Senior Program Director of the Office of Native Hawaiian Relations for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $49,000,000, to remain available until September 30, 2031, to carry out, through financial assistance, technical assistance, direct expenditure, grants, contracts, or cooperative agreements, climate resilience and adaptation activities that serve the Native Hawaiian Community. (b) Administration In addition to amounts otherwise available, there is appropriated to the Senior Program Director of the Office of Native Hawaiian Relations for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. None of the funds provided by this section shall be subject to cost-sharing or matching requirements. 70103. Tribal electrification program (a) Tribal electrification program In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $294,000,000, to remain available until September 30, 2031, for— (1) the provision of electricity to unelectrified Tribal homes through renewable energy systems; (2) transitioning electrified Tribal homes to renewable energy systems; and (3) associated home repairs and retrofitting necessary to install the renewable energy systems authorized under paragraphs (1) and (2). (b) Administration In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $6,000,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. (c) Small and needy program Amounts made available under this section shall be excluded from the calculation of funds received by those Tribal governments that participate in the Small and Needy program. (d) Distribution; use of funds Amounts made available under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(j) )) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5364(a) )— (1) shall be distributed on a 1-time basis; (2) shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5325(a) –(b)); and (3) shall only be used for the purposes identified under the applicable subsection. 70104. Emergency drought relief for Tribes In addition to amounts otherwise available, there is appropriated to the Commissioner of the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2026, for near-term drought relief actions to mitigate drought impacts for Indian Tribes that are impacted by the operation of a Bureau of Reclamation water project, including through direct financial assistance to address drinking water shortages and to mitigate the loss of Tribal trust resources. 70105. Native American Consultation Resource Center (a) In general In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $33,000,000, to remain available until September 30, 2031, to establish and administer a Native American Consultation Resource Center (the authority for which shall expire on September 30, 2031) to provide training and technical assistance to support Federal consultation and coordination responsibilities relating to— (1) the protection of the natural and cultural resources of Native Americans; (2) land use planning and development that impacts Tribal Governments, Alaska Native Corporations, and the Native Hawaiian Community; and (3) infrastructure projects that impact Tribal Governments, Alaska Native Corporations, and the Native Hawaiian Community. (b) Definition In this section: (1) Alaska Native Corporation The term Alaska Native Corporation has the meaning given the term in subsection (m) of section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ). (2) Native American The term Native American means— (A) an Indian (as defined in subsection (d) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(d) )); (B) a Native Hawaiian (as defined in item (10) of section 2 of the Native American Graves Protection and Repatriation Act ( 25 U.S.C. 3001(10) )); and (C) a Native (as defined in subsection (b) of section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(b) )). (3) Tribal Government The term Tribal Government means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this paragraph pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ). 70106. Indian Health Service (a) Maintenance and improvement In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $945,000,000, to remain available until September 30, 2031, for maintenance and improvement of facilities operated by the Indian Health Service or pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(j) )) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5364(a) ). (b) Mental health and substance use disorders In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $123,716,000, to remain available until September 30, 2031, for mental health and substance use prevention and treatment services, including facility renovation, construction, or expansion relating to mental health and substance use prevention and treatment services. (c) Priority health care facilities In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2031, for projects identified through the health care facility priority system established and maintained pursuant to subparagraph (A) of paragraph (1) of subsection (c) of section 301 of the Indian Health Care Improvement Act ( 25 U.S.C. 1631(c)(1)(A) ). (d) Small ambulatory In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until September 30, 2031, for small ambulatory construction. (e) Urban Indian organizations In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, for, notwithstanding section 509 of the Indian Health Care Improvement Act ( 25 U.S.C. 1659 ), the renovation, construction, expansion, equipping, and improvement of facilities owned or leased by an Urban Indian organization (as defined in item (29) of section 4 of that Act ( 25 U.S.C. 1603(29) )). (f) Epidemiology centers In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for the epidemiology centers established under paragraphs (1) through (2) of subsection (a) of section 214 of the Indian Health Care Improvement Act ( 25 U.S.C. 1621m(a)(1) –(2)). (g) Environmental health and facilities support activities In addition to amounts otherwise available, there is appropriated to the Director of the Indian Health Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $113,284,000, to remain available until September 30, 2031, for environmental health and facilities support activities of the Indian Health Service. (h) Distribution; use of funds Amounts appropriated under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(j) )) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5364(a) )— (1) shall be distributed on a 1-time basis; (2) shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5325(a) –(b)); and (3) shall only be used for the purposes identified under the applicable subsection. 70107. Tribal public safety (a) Public safety and justice In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $490,000,000, to remain available until September 30, 2031, for public safety and justice programs and construction. (b) Administration In addition to amounts otherwise available, there is appropriated to the Assistant Secretary for Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. (c) Small and needy program Amounts made available under this section shall be excluded from the calculation of funds received by those Tribal governments that participate in the Small and Needy program. (d) Distribution; use of funds Amounts made available under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304(j) )) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5364(a) )— (1) shall be distributed on a 1-time basis; (2) shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5325(a) –(b)); and (3) shall only be used for the purposes identified under the applicable subsection. 70108. Bureau of Indian Affairs and Tribal roads (a) Roads In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $715,400,000, to remain available until September 30, 2026, for the Bureau of Indian Affairs Road System and Tribal transportation facilities (as defined in paragraph (31) of subsection (a) of section 101 of title 23, United States Code)— (1) for road maintenance; (2) for planning, design, construction, and reconstruction activities; and (3) to address the deferred road maintenance backlog at the Bureau of Indian Affairs. (b) Administration In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $14,600,000, to remain available until September 30, 2026, for the administrative costs of carrying out this section. B National Oceanic and Atmospheric Administration 70201. Investing in coastal communities and climate resilience (a) In general In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $6,000,000,000, to remain available until September 30, 2026, to provide funding through direct expenditure, contracts, grants, cooperative agreements, or technical assistance to coastal states (as defined in paragraph (4) of section 304 of the Coastal Zone Management Act of 1972 ( 16 U.S.C. 1453(4) )), the District of Columbia, Tribal Governments, nonprofit organizations, local governments, and institutions of higher education (as defined in subsection (a) of section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )), for the conservation, restoration, and protection of coastal and marine habitats and resources, including fisheries, to enable coastal communities to prepare for extreme storms and other changing climate conditions, and for projects that support natural resources that sustain coastal and marine resource dependent communities, and for related administrative expenses. None of the funds provided by this section shall be subject to cost-sharing or matching requirements. (b) Tribal Government Defined In this section, the term Tribal Government means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ). 70202. Pacific salmon restoration and conservation In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, for the purposes of supporting the restoration and conservation of Pacific salmon and steelhead populations and the habitat of those populations, including by improving climate resilience and climate adaptation, and for related administrative expenses. 70203. Marine fisheries infrastructure (a) In general In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $400,000,000, to remain available until September 30, 2026, for grants to States and Tribal Governments, to repair, replace, and upgrade hatchery infrastructure for the production of a fishery (as defined in paragraph (13) of section 3 of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1802(13) )) that is included in a fishery management plan or plan amendment approved by the Secretary of Commerce under subsection (a) of section 301 of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1851(a) ), and for related administrative expenses. (b) Tribal Government In this section, the term Tribal Government means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ). 70204. Marine fisheries and marine mammal stock assessments, surveys, and research and management In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2026, for purposes of Federal fisheries management, marine fisheries conservation, and marine mammal research, including fisheries and marine mammal stock assessments, marine fisheries data collection, surveys, scientific research, and management, acquisition of electronic monitoring equipment for fishery participants, transitional gear research, and ecosystem-based assessments in support of marine fish species, including fisheries managed under section 303 of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1853 ) and subsection (a) of section 117 of the Marine Mammal Protection Act of 1972 ( 16 U.S.C. 1386(a) ). 70205. Facilities of the National Oceanic and Atmospheric Administration and National Marine Sanctuaries (a) National Oceanic and Atmospheric Administration Facilities In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2026, for the construction of new facilities (including facilities in need of replacement) including piers, marine operations facilities, and fisheries laboratories. (b) National marine sanctuaries facilities In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for the construction of facilities to support the National Marine Sanctuary System established under subsection (c) of section 301 of the National Marine Sanctuaries Act ( 16 U.S.C. 1431(c) ). 70206. NOAA Efficient and Effective Reviews In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, to provide for the development of more efficient, accurate, and timely reviews for planning, permitting and approval processes through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of environmental data or information systems, stakeholder and community engagement, the purchase of new equipment for environmental analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. 70207. Seafood import monitoring program In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000, to remain available until September 30, 2026, to implement the seafood import monitoring program of the National Oceanic and Atmospheric Administration. C United States Fish and Wildlife Service 70301. Endangered Species Act recovery plans In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $180,000,000, to remain available until expended, for the purposes of developing and implementing recovery plans under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533(f) ). 70302. Island plant conservation (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,850,000, to remain available until expended, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of conserving endangered species and threatened species of plants in the Hawaiian Islands and the Pacific Island Territories of the United States under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533(f) ). (b) Administrative expenses In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. 70303. Pollinator conservation (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,850,000, to remain available until expended, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of conserving endangered species and threatened species of pollinators in the United States under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533(f) ). (b) Administrative expenses In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. 70304. Mussel conservation (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,850,000, to remain available until expended, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of conserving endangered species and threatened species of freshwater mussels in the United States under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533(f) ). (b) Administrative expenses In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. 70305. Desert fish conservation (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,850,000, to remain available until expended, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of conserving endangered species and threatened species of desert fish in the United States under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533(f) ). (b) Administrative expenses In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. 70306. Funding for the United States Fish and Wildlife Service to address climate-induced weather events (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $242,500,000, to remain available until September 30, 2026, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of rebuilding and restoring units of the National Wildlife Refuge System and State wildlife management areas, including by— (1) addressing the threat of invasive species; (2) increasing the resiliency and capacity of habitats and infrastructure to withstand climate-induced weather events; and (3) reducing the amount of damage caused by climate-induced weather events. (b) Administrative costs In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,500,000, to remain available until September 30, 2026, for necessary administrative expenses associated with carrying out this section. 70307. Wildlife corridor conservation (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,700,000, to remain available until expended, to carry out, through direct expenditures, contracts, grants, and cooperative agreements, activities necessary for— (1) mapping wildlife corridors; (2) the conservation and restoration of wildlife corridors; and (3) addressing the conservation and restoration of wildlife corridors— (A) on land included in the National Wildlife Refuge System; and (B) on private land through— (i) the Partners for Fish and Wildlife Program of the United States Fish and Wildlife Service; and (ii) the Coastal Program of the United States Fish and Wildlife Service. (b) Administrative costs In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $300,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. 70308. Grassland restoration (a) In general In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $38,800,000, to remain available until expended to make direct expenditures, award grants, and enter into contracts and cooperative agreements for carrying out the protection and restoration of grassland habitats. (b) Administrative costs In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,200,000, to remain available until September 30, 2030, for necessary administrative expenses associated with carrying out this section. D Water Resources Research and Technology Institutes 70401. Water Resources Research and Technology Institutes In addition to amounts otherwise available, there is appropriated to the United States Geological Survey for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for grants and other financial assistance to water resources research and technology institutes, centers, and equivalent agencies. E Council on Environmental Quality 70501. Environmental and climate data collection In addition to amounts otherwise available, there is appropriated to the Chair of the Council on Environmental Quality for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $65,000,000, to remain available until September 30, 2026— (1) to support data collection efforts relating to— (A) disproportionate negative environmental harms and climate impacts; and (B) cumulative impacts of pollution and temperature rise; (2) to establish, expand, and maintain efforts to track disproportionate burdens and cumulative impacts, including academic and workforce support for analytics and informatics infrastructure and data collection systems; and (3) to support efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. 70502. Council on environmental quality efficient and effective environmental reviews In addition to amounts otherwise available, there is appropriated to the Chair of the Council on Environmental Quality for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2026, to carry out the Council on Environmental Quality’s functions and for the purposes of training personnel, developing programmatic environmental documents, and developing tools, guidance, and techniques to improve stakeholder and community engagement. F Department of the Interior Efficient and Effective Reviews 70601. Department of the Interior Efficient and Effective Reviews In addition to amounts otherwise available, there is appropriated to the Department of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, to provide for the development of more efficient, accurate, and timely reviews for planning, permitting, and approval processes for the National Park Service, the Bureau of Land Management, the Bureau of Ocean Energy Management, the Bureau of Reclamation, the Bureau of Safety and Environmental Enforcement, and the Office of Surface Mining Reclamation and Enforcement through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of environmental data or information systems, stakeholder and community engagement, the purchase of new equipment for environmental analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement. G Public Lands 70701. National parks and public lands conservation and resilience In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,250,000,000, to remain available until September 30, 2031, to carry out projects for the conservation, protection, and resiliency of lands and resources administered by the National Park Service and Bureau of Land Management. None of the funds provided under this section shall be subject to cost-share or matching requirements. 70702. National parks and public lands conservation and ecosystem restoration In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2031, to carry out conservation, ecosystem and habitat restoration projects on lands administered by the National Park Service and Bureau of Land Management. None of the funds provided under this section shall be subject to cost-share or matching requirements. 70703. Lands Projects (a) Definitions With regard to this section: (1) Appropriate conservation projects The term appropriate conservation projects means any project for the conservation, restoration, construction, or rehabilitation of natural, cultural, historic, archaeological, recreational, or scenic resources on public lands administered by the National Park Service or Bureau of Land Management. (2) Resiliency or restoration projects The term restoration or resiliency projects means any project funded under sections 70701 and 70702. (b) In general In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2031, to provide funding, including all expenses necessary to provide funding, through direct expenditure, grants, contracts, or cooperative agreements, to perform appropriate conservation projects or resiliency or restoration projects, including all expenses necessary to carry out such projects, on public lands administered by the National Park Service and Bureau of Land Management. None of the funds provided under this section shall be subject to cost-share or matching requirements. 70704. Wildfire management In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2031, for wildland fire management by the Bureau of Land Management or National Park Service, including improvement, relocation, renovation, or construction of firefighting facilities; reduction of wildfire hazards to communities through fuels projects within the wildland-urban interface; burned area rehabilitation; rural fire assistance; for salaries and expenses for wildland firefighters; wildfire-related information technology and geospatial analysis; deployment of remote sensing technologies; wildfire science and research, including fireshed mapping; and, through the Office of Aviation Services, purchase, lease or contract of fixed-wing aircraft, and the assessment and deployment of technologies to limit disruptions to firefighting operations at night, in a degraded visual environment, and by unauthorized unmanned aircraft system, including the feasibility of optionally-piloted rotor-wing aircraft and containerized retardant-delivery systems. 70705. National Park Service Deferred Maintenance and Department of the Interior Housing In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $400,000,000, to remain available until September 30, 2026, for carrying out priority deferred maintenance projects, which may include resolving directly-related infrastructure deficiencies, including through direct expenditures or transfer authority, within the boundaries of the National Park System and to provide housing, including expenses necessary to provide housing, for— (1) field employees of the National Park Service pursuant to subchapter III of chapter 1013 of title 54, United States Code; (2) field employees of the Bureau of Land Management in a manner similar to the provision of housing under paragraph (1); and (3) participants in corps programs performing appropriate conservation projects or resiliency and restoration projects under grants, contracts, or cooperative agreements with the National Park Service or the Bureau of Land Management in a manner similar to the provision of housing under paragraph (1). 70706. Urban parks In addition to amounts otherwise available, there is appropriated to the Director of the National Park Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, to carry out direct, competitive grants to localities for acquisition of land or interests in land, or for development of recreation facilities to create or significantly enhance access to parks or outdoor recreation in urban areas, subject to the conditions that no property acquired or developed with funding under this section shall be converted to uses other than public outdoor recreation without the approval of the Secretary. Such approval shall require assurances as the Secretary considers necessary to ensure the substitution of other recreational properties of equivalent or greater fair market value and of equivalent usefulness and accessibility. 70707. Historic preservation In addition to amounts otherwise available, there is appropriated to the Director of the National Park Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2026, to provide funding through direct expenditure, contracts, grants, cooperative agreements, or technical assistance to States, Indian Tribes, the District of Columbia, and Territories to carry out preservation or historic preservation as defined by section 300315 of title 54, United States Code. 70708. National heritage areas In addition to amounts otherwise available, there is appropriated to the Director of the National Park Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, to carry out funding for National Heritage Area Partnerships, including funding in fiscal year 2022 for any national heritage area, national heritage corridor, cultural heritage corridor, national heritage partnership, national heritage canalway, national heritage route, and battlefields national historic district authorized to receive Federal funds as of September 1, 2021. 70709. Withdrawals The Secretary of the Interior shall, on or before June 30, 2024, withdraw, permanently or for a set term and subject to valid existing rights, lands or interest in lands administered by the Bureau of Land Management from entry, appropriation, disposal, location, leasing, permitting, and patent. Withdrawals made under this section shall result in an aggregate reduction of receipts payable to the Treasury between the date of the enactment of this section and the end of fiscal year 2031 of $10,000,000. 70710. National park service employees In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available through September 30, 2030, to hire employees in units of the National Park System. H Drought Response and Preparedness 70801. Bureau of Reclamation Domestic water supply projects (a) Funding for domestic water supply projects In addition to amounts otherwise available, there is appropriated to the Commissioner of the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $550,000,000, to remain available until expended, for grants, contracts, or financial assistance agreements for disadvantaged communities (identified according to criteria adopted by the Commissioner) in a manner as determined by the Commissioner for up to 100 percent of the cost of the planning, design, or construction of water projects the primary purpose of which is to provide domestic water supplies to communities or households that do not have reliable access to domestic water supplies in a State or territory described in the first section of the Act of June 17, 1902 ( 43 U.S.C. 391 ; 32 Stat. 388, chapter 1093). (b) Additional funding In addition to amounts otherwise available, there is appropriated to the Commissioner of the Bureau of Reclamation for fiscal year 2032 and each fiscal year thereafter, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, for grants, contracts, or financial assistance agreements for disadvantaged communities (identified according to criteria adopted by the Commissioner) in a manner as determined by the Commissioner for up to 100 percent of the cost of the planning, design, or construction of water projects the primary purpose of which is to provide domestic water supplies to communities or households that do not have reliable access to domestic water supplies in a United States territory or a Western State (as described in item (6) of section 3002 of the Western Water Policy Review Act of 1992). 70802. Large scale water reuse (a) Definitions In this section: (1) Eligible entity The term eligible entity means— (A) a State, Indian Tribe, municipality, irrigation district, water district, wastewater district, or other organization with water or power delivery authority; (B) a State, regional, or local authority, the members of which include 1 or more organizations with water or power delivery authority; or (C) an agency established under State law for the joint exercise of powers or a combination of entities described in subparagraphs (A) and (B). (2) Reclamation state The term Reclamation State means a State or territory described in the first section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C. 391 ). (b) In general In addition to amounts otherwise available, there is appropriated to the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, to provide nonreimbursable grants on a competitive basis to eligible entities that shall not exceed 25 percent of the total cost of an eligible project unless the project advances at least a proportionate share of authorized nonreimbursable benefits (including benefits provided through measurable reductions in water diversions from a river basin that is associated with or affected by, or located within the same river basin as a Federal reclamation project) up to a maximum 75 percent of the total costs of an eligible project, to carry out the planning, design, and construction of projects to reclaim and reuse municipal, industrial, domestic, or agricultural wastewater or impaired ground or surface waters that have a total estimated cost of more than $500,000,000 and that provide benefits to drought stricken regions within the Reclamation States for the purposes of— (1) helping to advance water management plans across a multi-state area, such as drought contingency plans in the Colorado River Basin; and (2) providing multiple benefits, including water supply reliability benefits for drought-stricken States, Indian Tribes, and communities, and benefits from measurable reductions in water diversions. The Bureau of Reclamation shall not impose a total dollar cap on Federal contributions that applies to all individual projects funded under this section. An eligible project shall not be considered ineligible for assistance under this section because the project has received assistance authorized under title XVI of Public Law 102–575 or section 4009 of Public Law 114–322 . The Bureau of Reclamation shall consider the planning, design, and construction of an eligible project’s conveyance system to be eligible for grant funding under this section. 70803. Addressing reduced water availability for inland water bodies In addition to amounts otherwise available, there is appropriated to the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, to provide grants and enter into contracts and cooperative agreements to carry out projects to mitigate the impact of reduced water inflows into inland water bodies associated with, affected by, or located within the same river basin as a Bureau of Reclamation water project, to cover up to 50 percent of the total cost of the project, in partnership with a State, Indian Tribe, municipality, irrigation district, water district, wastewater district, nonprofit organization, institution of higher learning, or an agency established under State law for the joint exercise of powers. 70804. Canal repair and improvement projects (a) Conveyance repairs In addition to amounts otherwise available, there is appropriated to the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, to provide nonreimbursable grants in a manner as determined by the Secretary of the Interior (in this section referred to as the Secretary ) on a competitive basis to eligible entities that in aggregate shall not exceed 33 percent of the total cost of an eligible project to carry out the planning, design, and construction of projects to make major, non-recurring maintenance repairs to water conveyance facilities that do not enlarge the carrying capacity of a conveyance facility beyond the capacity as previously constructed for conveyance facilities in need of emergency capacity restoration due to subsidence and experiencing exceptional drought for the purposes of increasing drought resiliency, primarily through groundwater recharge. (b) Solar canal integration In addition to amounts otherwise available, there is appropriated to the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for the design, study, and implementation of projects (including pilot and demonstration projects) to cover conveyance facilities receiving grants under subsection (a) with solar panels to generate renewable energy in a manner as determined by the Secretary or for other solar projects associated with Bureau of Reclamation projects that increase water efficiency and assist in implementation of clean energy goals. I Insular Affairs 70901. Insular affairs critical infrastructure funding In addition to amounts otherwise available, there is appropriated to the Department of the Interior Office of Insular Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, for critical infrastructure in the territories. 70902. Office of insular affairs climate change technical assistance (a) In general In addition to amounts otherwise available, there is appropriated to the Department of the Interior Office of Insular Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $29,100,000, to remain available until September 30, 2026, to provide technical assistance for climate change planning, mitigation, adaptation, and resilience to United States Insular Areas under the Office of Insular Affairs. (b) Administrative expenses In addition to amounts otherwise available, there is appropriated to the Department of the Interior Office of Insular Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $900,000, to remain available until September 30, 2026, for necessary administrative expenses associated with carrying out this section. 70903. Definitions For the purposes of this subtitle: (1) Territories The term territories means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the Virgin Islands of the United States. (2) United states insular areas The term United States Insular Areas means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or the Virgin Islands of the United States. J Offshore Wind 71001. Renewable energy leasing on the outer continental shelf The Secretary of the Interior shall grant leases, easements, and rights-of-way, to produce or support production, transportation, or transmission of electricity from renewable energy facilities on the Outer Continental Shelf in the areas identified on the map entitled Outer Continental Shelf Lower 48 States Planning Areas and dated October 18, 2021, as the Mid Atlantic Planning Area, the South Atlantic Planning Area, the Straits of Florida Planning Area, and the Eastern Gulf of Mexico Planning Area. 71002. Offshore wind for the territories The Secretary of the Interior shall grant leases, easements, and rights-of-way to produce or support production, transportation, or transmission of electricity from renewable energy facilities in submerged lands seaward from the coastline of Puerto Rico, Guam, American Samoa, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control. The Secretary of the Interior shall conduct wind lease sales in said submerged lands if the Secretary of the Interior has determined that a wind lease sale is feasible and issued a call for information and nominations, determined there is sufficient interest in leasing the area, and consulted with the Governor of the territory regarding the suitability of the area for wind energy development. K Preventing Damage from Mining 71101. Funding to prevent damage from mining In addition to amounts otherwise available, there is appropriated to the Bureau of Land Management for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000, to remain available until September 30, 2031, to revise rules and regulations to prevent undue degradation of public lands due to hardrock mining activities. L Arctic National Wildlife Refuge 71201. Repeal of the arctic national wildlife refuge oil and gas program Section 20001 of Public Law 115–97 is repealed and any leases issued pursuant to section 20001 of Public Law 115–97 are hereby cancelled and all payments related to the leases shall be returned to the lessee(s) within 30 days of enactment of this section. M Outer Continental Shelf Oil and Gas Leasing 71301. Protection of the eastern gulf, Atlantic, and pacific coasts The Secretary of the Interior may not issue a lease or any other authorization for the exploration, development, or production of oil or natural gas in any of the planning areas on the Outer Continental Shelf in the Pacific Region Planning Areas, in the Atlantic Region Planning Areas, or in the Eastern Gulf of Mexico Planning Area identified on the map entitled Outer Continental Shelf Lower 48 States Planning Areas and dated October 18, 2021. N Fossil Fuel Resources 71401. Onshore fossil fuel royalty rates All new onshore oil and gas leases issued by the Secretary of the Interior shall be conditioned upon the payment of a royalty at a rate of 18.75 percent in amount or value of the production from the lease. Before a terminated or cancelled oil or gas lease may be reinstated by the Secretary of the Interior, back royalties must be paid, and future royalties shall be at a rate of 25 percent in amount or value of the production from the lease. 71402. Offshore oil and gas royalty rate All new offshore oil and gas leases on submerged lands of the outer Continental Shelf granted by the Secretary of the Interior shall be conditioned upon the payment of a royalty at a rate of not less than 14 percent in amount or value of the production from the lease. 71403. Oil and gas minimum bid The onshore minimum acceptable bid charged by the Secretary of the Interior shall be $10 per acre on Federal lands in the contiguous United States authorized to be leased by the Secretary for production of oil and gas. The Secretary of the Interior shall by regulation, at least once every 4 years, adjust the dollar amount to reflect the change in inflation. 71404. Deferred coal bonus payments The Secretary of the Interior may not offer Federal coal leases under a system of deferred bonus payment. 71405. Fossil fuel rental rates The Secretary of the Interior shall require all onshore oil and gas leases in the contiguous United States to be conditioned upon payment by the lessee of a rental of $3 per acre per year during the 2-year period beginning on the date the lease begins for new leases, and after the end of such two-year period $5 per acre per year. The Secretary of the Interior shall by regulation, at least once every 4 years, adjust the dollar amounts to reflect the change in inflation. A terminated onshore oil and gas lease may not be reinstated without the payment of back rentals and a requirement that future rentals be at a rate of $20 per acre per year. 71406. Fossil fuel lease term length (a) A new coal lease issued by the Secretary of the Interior shall be for a term of ten years. Any lease which is not producing in commercial quantities at the end of 5 years shall be terminated. The aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed 10 years. (b) Leases for exploration for and development of oil or gas in the contiguous United States issued by the Secretary of the Interior shall be for a primary term of 5 years. 71407. Expression of interest fee (a) In general The Secretary of the Interior shall charge any person who submits an expression of interest in leasing land in the contiguous United States available for disposition for exploration and development of oil or gas a fee in an amount determined by the Secretary of the Interior under subsection (b). (b) Amount The fee authorized under subsection (a) shall be established by the Secretary of the Interior in an amount that is determined by the Secretary of the Interior to be appropriate to cover the aggregate cost of processing an expression of interest under this section, but not less than $15 per acre and not more than $50 per acre of the area covered by the applicable expression of interest. (c) Adjustment of fee The Secretary of the Interior shall, by regulation at least every 4 years, establish a higher expression of interest fee to reflect the change in inflation. 71408. Elimination of noncompetitive leasing The Secretary of the Interior may not issue an oil or gas lease noncompetitively. Land made available by the Secretary of the Interior for oil and gas leasing for which no bid is accepted or received, or the land for which a lease terminates, expires, is cancelled, or is relinquished, may only be made available by the Secretary of the Interior for a new round of sealed, competitive bidding. 71409. Oil and gas bonding requirements Not later than 18 months after the date of enactment of this subtitle, the Secretary of the Interior shall publish a final rule in the Federal Register requiring that an adequate bond, surety, or other financial arrangement be provided by an oil or gas lessee prior to the commencement of surface-disturbing activities on an onshore oil and gas lease issued by the Secretary to ensure the complete and timely restoration and reclamation of any land, water, range, or other environmental resources adversely affected by lease activities or operations after the abandonment or cessation of oil and gas operations on the lease. The Secretary of the Interior shall find that a bond, surety or other financial arrangement required by rule or regulation is inadequate if it is for less than the complete and timely reclamation of the least tract, the restoration of any lands or surface waters adversely affected by lease operations, and, in the case of an idled well, the total plugging and reclamation costs for each idled well controlled by the same operator. 71410. Per-acre lease fees (a) Oil and gas lease fees The Secretary of the Interior shall charge onshore and offshore oil and gas leaseholders the following annual, non-refundable fees: (1) Conservation of resources fee There is established a Conservation of Resources Fee of $4 per acre per year on new producing Federal onshore and offshore oil and gas leases. (2) Speculative leasing fee There is established a Speculative Leasing Fee of $6 per acre per year on new nonproducing Federal onshore and offshore oil and gas leases. (b) Deposit All funds collected pursuant to subsection (a) shall be deposited into the United States Treasury General Fund. (c) Adjustment for inflation The Secretary of the Interior shall, by regulation at least once every four years, adjust each fee created by subsection (a) to reflect any increase in inflation. 71411. Offshore oil and gas inspection fees (a) In general (1) Establishment The Secretary of the Interior shall collect inspection fees from the operators of oil and gas facilities on the outer continental shelf subject to any environmental or safety regulation to prevent or ameliorate blowouts, fires, spills, spillages, or major accidents— (A) at an aggregate level to offset the annual expenses of such inspections; and (B) using a schedule that reflect the differences in complexity among the classes of facilities to be inspected. (2) Adjustment for inflation For each fiscal year beginning after fiscal year 2022, the Secretary of the Interior shall adjust the amount of the fees collected under this section for inflation. (3) Fees for fiscal year 2022 (A) Annual fees For fiscal year 2022, the Secretary of the Interior shall collect annual fees from the operator of facilities that are above the waterline, excluding drilling rigs, and are in place at the start of the fiscal year in the following amounts: (i) $11,725 for facilities with no wells, but with processing equipment or gathering lines. (ii) $18,984 for facilities with 1 to 10 wells, with any combination of active or inactive wells. (iii) $35,176 for facilities with more than 10 wells, with any combination of active or inactive wells. (B) Fees for drilling rigs For fiscal year 2022, the Secretary of the Interior shall collect fees for each inspection from the operators of drilling rigs in the following amounts: (i) $34,059 per inspection for rigs operating in water depths of 500 feet or more. (ii) $18,649 per inspection for rigs operating in water depths of less than 500 feet. (C) Fees for non-rig units For fiscal year 2022, the Secretary of the Interior shall collect fees for each inspection from the operators of well operations conducted via non-rig units in the following amounts: (i) $13,260 per inspection for non-rig units operating in water depths of 2,500 feet or more. (ii) $11,530 per inspection for non-rig units operating in water depths between 500 and 2,499 feet. (iii) $4,470 per inspection for non-rig units operating in water depths of less than 500 feet. (b) Disposition Amounts collected as fees under subsection (a) shall be deposited into the general fund of the Treasury. (c) Billing (1) Annual fees The Secretary of the Interior shall bill designated operators under subsection (a)(3)(A) annually, with payment required not later than 30 days after such billing. (2) Fees for drilling rigs The Secretary of the Interior shall bill designated operators under subsection (a)(3)(B) not later than 30 days after the end of the month in which the inspection occurred, with payment required not later than 30 days after such billing. 71412. Onshore oil and gas inspection fees (a) In general The designated operator under each oil and gas lease on Federal land or each unit and communitization agreement that includes one or more such Federal leases that is subject to inspection and that is in force at the start of the fiscal year 2021, shall pay a nonrefundable annual inspection fee in an amount that, except as provided in subsection (b), is established by the Secretary of the Interior by regulation and is sufficient to recover the full costs incurred by the United States for inspection and enforcement with respect to such leases. (b) Amount Until the effective date of regulations under subsection (a)— (1) the amount of the fee for all States shall be $1,000 for each lease, unit, or communitization agreement; and (2) the Secretary of the Interior may increase the fees based upon the actual costs incurred for inspections. (c) Assessment for fiscal year 2022 For fiscal year 2022, the Secretary of the Interior shall assess the fee described under this section at $1,000 for each lease, unit, or communitization agreement, and shall provide notice of such assessment to each designated operator who is liable for such fee, by not later than 60 days after the date of enactment of this section. 71413. Severance fees The Secretary of the Interior shall collect annual, non-refundable fees on fossil fuels produced from new leases on Federal lands and the Outer Continental Shelf and deposit the funds into the United States Treasury General Fund. Such fees shall be— (1) $0.50 per barrel of oil equivalent on oil and natural gas produced from Federal lands and the Outer Continental Shelf; and (2) $2 per metric ton of coal produced from Federal lands. 71414. Idled well fees (a) In general The Secretary of the Interior shall, not later than 180 days after the date of enactment of this section, issue regulations to require each operator of an idled well on Federal land and the Outer Continental Shelf to pay an annual, nonrefundable fee for each such idled well in accordance with this subsection. (b) Amounts Except as provided in subsection (d), the amount of the fee shall be as follows: (1) $500 for each well that has been considered an idled well for at least 1 year, but not more than 5 years. (2) $1,500 for each well that has been considered an idled well for at least 5 years, but not more than 10 years. (3) $3,500 for each well that has been considered an idled well for at least 10 years, but not more than 15 years. (4) $7,500 for each well that has been considered an idled well for at least 15 years. (c) Due date An owner of an idled well that is required to pay a fee under this section shall submit to the Secretary of the Interior such fee by not later than October 1 of each year. (d) Adjustment for inflation The Secretary of the Interior shall, by regulation not less than once every 4 years, adjust each fee under this section to account for inflation. (e) Deposit All funds collected pursuant to subsection (a) shall be deposited into the United States Treasury General Fund. (f) Idled well definition For the purposes of this section, the term idled well means a well that has been non-operational for at least two consecutive years and for which there is no anticipated beneficial future use. 71415. Annual pipeline owners fee (a) In general Not later than 180 days after the date of enactment of this section, the Bureau of Safety and Environmental Enforcement shall issue regulations to assess an annual fee on owners of existing and new offshore oil and gas pipelines defined as DOI pipelines under 30 C.F.R. 250.1001. No portion of such fee that is passed on to a lessee may be deducted as part of a lessee’s transportation allowance when calculating royalties due to the United States. (b) Amounts Fees established under this paragraph shall be— (1) $10,000 per mile for pipelines in water with a depth of 500 feet or greater; and (2) $1,000 per mile for pipelines in water depth of under 500 feet. 71416. Royalties on all extracted methane (a) In general Except as provided in subsection (b), royalties paid for gas produced from Federal lands and on the Outer Continental Shelf shall be assessed on all gas produced, including— (1) gas used or consumed within the area of the lease tract for the benefit of the lease; and (2) all gas that is consumed or lost by venting, flaring, or fugitive releases through any equipment during upstream operations. (b) Exception Subsection (a) shall not apply with respect to gas vented or flared for not longer than 48 hours in an acute emergency situation that poses a danger to human health. 71417. Elimination of royalty relief (a) Limitation on authority The Secretary of the Interior may not reduce, eliminate, or suspend royalties or net profit share for any oil and gas leases on the Outer Continental Shelf. Royalty relief may not be permitted on any future oil and gas leases on the Outer Continental Shelf. (b) Repeal Section 39 of the Mineral Leasing Act ( 30 U.S.C. 209 ) is repealed. O United States Geological Survey 71501. United States geological survey 3d elevation program In addition to amounts otherwise available, there is appropriated to the Director of the United States Geological Survey for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $47,000,000, to remain available until September 30, 2031, to produce, collect, disseminate, and use 3D elevation data. 71502. Climate adaptation science centers In addition to amounts otherwise available, there is appropriated to the United States Geological Survey for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for the Regional and National Climate Adaptation Science Centers to provide localized information to help communities respond to climate change. Funding provided under this section shall only be executed through existing cooperative agreements with non-Federal partners or used internally for United States Geological Survey activities. VIII Committee on Oversight and Reform 80001. General Services Administration Clean Fleets In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,995,000,000, to remain available until September 30, 2026, for the procurement of zero-emission and electric vehicles and related costs. 80002. Funding for General Services Administration Office of Inspector General In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the General Services Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to support oversight of General Services Administration activities implemented pursuant to this Act. 80003. United States Postal Service Clean Fleets In addition to amounts otherwise available, there is appropriated to the United States Postal Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to be deposited into the Postal Service Fund established under section 2003 of title 39, United States Code: (1) $2,573,550,000, to remain available through September 30, 2031, for the purchase of electric delivery vehicles. (2) $3,411,450,000, to remain available through September 30, 2031, for the purchase, design, and installation of the requisite infrastructure to support electric delivery vehicles at facilities that the United States Postal Service owns or leases from non-Federal entities. 80004. United States Postal Service Office of Inspector General In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the United States Postal Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available through September 30, 2031, to support oversight of United States Postal Service activities implemented pursuant to this Act. 80005. Government Accountability Office Oversight In addition to amounts otherwise available, there is appropriated to the Comptroller General of the United States for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for necessary expenses of the Government Accountability Office to support the oversight of— (1) the distribution and use of funds appropriated under this Act; and (2) whether the economic, social, and environmental impacts of the funds described in paragraph (1) are equitable. 80006. Office of Management and Budget Oversight In addition to amounts otherwise available, there are appropriated to the Director of the Office of Management and Budget for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2026, for necessary expenses to— (1) support the implementation of this Act; and (2) track labor, equity, and environmental standards and performance. 80007. General Services Administration Emerging Technologies In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $975,000,000, to remain available until September 30, 2026, for emerging and sustainable technologies, and related sustainability and environmental programs. 80008. General Services Administration Procurement and Technology In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022 out of any money in the Treasury not otherwise appropriated, $3,250,000,000, to remain available until September 30, 2026, for the purchase of goods, services, and systems to improve energy efficiency, promote the purchase of lower-carbon materials, and reduce the carbon footprint. 80009. Technology Modernization Fund In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2026, to carry out the purposes of the Technology Modernization Fund. 80010. Federal Citizens Services Fund In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until September 30, 2026, to carry out the purposes of the Federal Citizen Services Fund. 80011. Information Technology Oversight and Reform Fund In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026, $50,000,000 for the Information Technology Oversight and Reform Fund. IX Committee on Science, Space, and Technology 90001. Department of energy research, development, and demonstration activities (a) Office of Energy Efficiency and Renewable Energy In addition to amounts otherwise available, there is appropriated to the Department of Energy Office of Energy Efficiency and Renewable Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, to carry out demonstration projects, including demonstration of advanced— (1) building technologies; (2) solar energy technologies; (3) geothermal energy technologies; (4) wind energy technologies; (5) water power technologies; (6) bioenergy technologies; and (7) vehicle technologies. (b) Office of Science In addition to amounts otherwise available, there is appropriated to the Office of Science of the Department of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026— (1) $100,000,000 to carry out the low-dose radiation research program established under section 306(c) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18644(c)(1) ); (2) $200,000,000 to carry out the fusion materials research and development program established under section 307(b) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18645(b) ); (3) $200,000,000 to carry out the alternative and enabling fusion energy concepts program established under section 307(e) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18645(e) ); (4) $325,000,000 to carry out the milestone-based fusion energy development program established under section 307(i) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18645(i) ); (5) $140,000,000 to carry out the program of research and technology development in inertial fusion for energy applications established under section 307(d) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18645(d) ); and (6) $20,000,000 to carry out the fusion reactor system design activities authorized in section 307(j) of the Department of Energy Research and Innovation Act ( 42 U.S.C. 18645(j) . (c) Office of fossil energy and carbon management In addition to amounts otherwise available, there is appropriated to the Department of Energy Office of Fossil Energy and Carbon Management for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2026, to carry out on-site demonstration projects on the reduction of environmental impacts of produced water. (d) Diversity support In addition to amounts otherwise available, there is appropriated to the Department of Energy Office of Economic Impact and Diversity for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2026, to support programs across the Department’s civilian research, development, demonstration, and commercial application activities. 90002. Availability of high-assay low-enriched uranium (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026, $500,000,000 to carry out the program elements described in subparagraphs (D) through (H) of section 2001(a)(2) of the Energy Act of 2020 ( 42 U.S.C. 16281(a)(2) ), and for related administrative expenses. (b) Competitive procedures To the maximum extent practicable, the Department of Energy shall, in a manner consistent with section 989 of the Energy Policy Act of 2005 ( 42 U.S.C. 16353 ), use a competitive, merit-based review process in carrying out research, development, demonstration, and deployment activities under section 2001 of the Energy Act of 2020 ( 42 U.S.C. 16281 ). 90003. Air quality and climate research In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for air quality and climate research in support of research related to climate change mitigation, adaptation and resilience activities to help reduce the impacts of climate change on human health and welfare; the issuance of award grants for the collection of regional and local climate data to better estimate the economic impacts of climate change and support community-based responses to climate change to better anticipate, prepare for, adapt to, and recover from climate-driven extreme events; research on the impacts of climate change, and the cumulative impacts of pollution exposure, in low-income and disadvantaged communities. 90004. PFAS replacement assistance to firefighters grants (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $95,000,000, to remain available until September 30, 2030, to the Federal Emergency Management Agency for grants for personal protective firefighting equipment and firefighting foam that does not contain perfluoroalkyl or polyfluoroalkyl substances. (b) Program administration In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2030, to the Federal Emergency Management Agency for the administration and management of this section. (c) Applications With respect to the grant program described in subsection (a), the Administrator of the Federal Emergency Management Agency shall— (1) require eligible applicants to submit an application at such time, in such form, and containing such information and assurances as the Administrator of the Federal Emergency Management Agency may require; and (2) establish appropriate review and delivery mechanisms for an application submitted under paragraph (1). 90005. National aeronautics and space administration infrastructure In addition to amounts otherwise available, there are appropriated to the National Aeronautics and Space Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $748,000,000, to remain available until September 30, 2028, for repair, recapitalization, modification, modernization, and construction of physical infrastructure and facilities, including related administrative expenses, consistent with the responsibilities under sections 31502 and 31503 of title 51, United States Code. 90006. National aeronautics and space administration climate research and development In addition to amounts otherwise available, there are appropriated to the National Aeronautics and Space Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2028— (1) $85,000,000 for research and development on subseasonal to seasonal models and observations, climate resilience and sustainability, and for airborne instruments, campaigns, and surface networks to understand, observe, and mitigate climate change and its impacts, consistent with NASA’s mission to expand human knowledge of the Earth, as carried out through programs under the Earth Science Division, and for research and development activities on upper atmospheric research, and for related administrative expenses; (2) $30,000,000 for investments in data management and processing to support research, development, and applications to understand, observe, and mitigate climate change and its impacts, consistent with NASA’s mission to expand human knowledge of the Earth, as carried out through programs under the Earth Science Division, and for related administrative expenses; (3) $25,000,000 for research and development to support the wildfire fighting community and improve wildfire fighting operations through new and existing programs under the authority of the Administrator of the National Aeronautics and Space Administration, and for related administrative expenses; and (4) $225,000,000 for aeronautics research and development on sustainable aviation, consistent with sections 40701 and 40702 of title 51, United States Code, and for related administrative expenses. 90007. National Aeronautics and Space Administration Office of Inspector General In addition to amounts otherwise available, there are appropriated to the National Aeronautics and Space Administration for fiscal year 2022, out of money in the treasury not otherwise appropriated, $2,000,000, to remain available until September 30, 2030, for the Office of Inspector General to provide oversight over the management of funds appropriated under sections 90005 and 90006. 90008. National institute of standards and technology research In addition to amounts otherwise available, there is appropriated to the National Institute of Standards and Technology for fiscal year 2022, out of any money in the Treasury not otherwise appropriated $100,000,000, to remain available until September 30, 2028, for research on the impact of fire on structures and communities located at the Wildland Urban Interface under the direction of the Institute, and for related administrative expenses. 90009. National institute of standards and technology hollings manufacturing extension partnership In addition to amounts otherwise available, there is appropriated to the National Institute of Standards and Technology for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $260,000,000, to remain available until September 30, 2028, for the Hollings Manufacturing Extension Partnership of the National Institute of Standards and Technology, established in section 25(b) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k(b) ), including programs established under section 25A(a) of such Act ( 15 U.S.C. 278k-1(a) ) and section 26(a) of such Act ( 15 U.S.C. 278l(a) ), and for related administrative expenses, except that no funds shall be used for subsections (c)(2), (c)(5), (l), or (g) of such Act ( 15 U.S.C. 278k ). 90010. National institute of standards and technology manufacturing In addition to amounts otherwise available, there is appropriated to the National Institute of Standards and Technology for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $220,000,000, to remain available until September 30, 2028, to provide funds for advanced manufacturing research, development, and testbeds, through new and existing programs and public private partnerships, and for related administrative expenses; and (2) $20,000,000, to remain available until September 30, 2028, for the development and execution of a cybersecurity workforce training center, and for related administrative expenses. 90011. National institute of standards and technology research infrastructure In addition to amounts otherwise available, there is appropriated to the National Institute of Standards and Technology for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $650,000,000, to remain available until September 30, 2028, for the upgrade, replacement, maintenance, or renovation of facilities and equipment as necessary to conduct laboratory activities, and for related administrative expenses. 90012. Oceanic and atmospheric research and forecasting for weather and climate (a) Forecasting and research In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until September 30, 2026, to accelerate advances and improvements in research, observation systems, modeling, forecasting, assessments, and dissemination of information to the public as it pertains to ocean and atmospheric processes related to weather, coasts, oceans, and climate, and to carry out section 102(a) of the Weather Research and Forecasting Innovation Act of 2017 ( 15 U.S.C. 8512(a) ), and for related administrative expenses. (b) Research grants and science information, products, and services In addition to amounts otherwise available, there are appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026— (1) $100,000,000 for competitive grants to fund climate research as it relates to weather, ocean, coastal, and atmospheric processes and conditions, and impacts to marine species and coastal habitat, and for related administrative expenses; and (2) $100,000,000 for education and training pursuant to section 4002(b)(2) of the America COMPETES Act ( 33 U.S.C. 893a(b)(2) ), and for increased development and dissemination of climate science information, products, and services, in support of climate adaptation preparedness as it relates to weather, ocean, coastal, and atmospheric processes and conditions, impacts to marine species and coastal habitat, and for related administrative expenses. (c) Research infrastructure and procurement In addition to amounts otherwise available, there are appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for the provision of research infrastructure that improves accuracy, timing, and dissemination of public information concerning extreme climate and weather and for procurements necessary to support the activities described in subsections (a) and (b), and for related administrative expenses. 90013. Climate education In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, for contracts, grants, and technical assistance for education activities and materials under section 4002(b)(2) of the America COMPETES Act ( 33 U.S.C. 893a(b)(2) ) related to improving public understanding of climate change as it relates to weather, ocean, coastal, and atmospheric processes and conditions and marine fisheries and resources, and for related administrative expenses. None of the funds provided by this subsection shall be subject to cost-sharing or matching requirements. 90014. Computing capacity and research for weather, oceans, and climate In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available until September 30, 2026, for the procurement of additional high-performance computing, data processing capacity, data management, and storage assets, to carry out section 204(a)(2) of the High-Performance Computing Act of 1991 ( 15 U.S.C. 5524(a)(2) ), and for transaction agreements authorized under section 301(d)(1)(A) of the Weather Research and Forecasting Innovation Act of 2017 ( 15 U.S.C. 8531(d)(1)(A) ), and for related administrative expenses. 90015. Acquisition of hurricane forecasting aircraft In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $139,000,000, to remain available until September 30, 2026, for the acquisition of hurricane hunter aircraft under section 413(a) of the Weather Research and Forecasting Innovation Act of 2017 ( 15 U.S.C. 8549(a) ). 90016. National Science Foundation core research In addition to amounts otherwise available, there is appropriated to the National Science Foundation (referred to in this section as the Foundation ) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $668,000,000, to remain available until September 30, 2026, to fund or extend new and existing research awards, traineeships, scholarships, and fellowships administered by the National Science Foundation, across all science, technology, engineering, and mathematics disciplines supported by the National Science Foundation, and for related administrative expenses; (2) $25,000,000, to remain available until September 30, 2028, for activities and research to ensure broad demographic participation in the activities of the Foundation, consistent with the goals under section 526(a)(7) of the America COMPETES Reauthorization Act of 2010 ( 42 U.S.C. 1862p-14(a)(7) ) and section 3(e) of the National Science Foundation Act of 1950 ( 42 U.S.C. 1862(e) ), and for related administrative expenses; and (3) $500,000,000, to remain available until September 30, 2028, for climate change research as it relates to fundamental understanding of physical, chemical, biological, and human systems and the interactions among them, and for related administrative expenses. 90017. National Science Foundation technology, innovation, and partnerships directorate In addition to amounts otherwise available, there is appropriated to the National Science Foundation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $1,520,000,000, to remain available until September 30, 2026, to fund and administer the Directorate for Technology, Innovation, and Partnerships, which shall accelerate use-inspired and translational research and the development, commercialization, and use of technologies and innovations of national importance, including technologies and innovations relevant to natural disaster mitigation and other societal challenges, through programs of the National Science Foundation, and for related administrative expenses; (2) $25,000,000, to remain available until September 30, 2028, for research security activities; (3) $200,000,000, to remain available until September 30, 2028, for research capacity building at historically Black colleges and universities, Tribal Colleges and Universities, Hispanic-serving institutions, and other minority-serving institutions, administered through the Directorate for Technology, Innovation, and Partnerships, and for related administrative expenses; and (4) $55,000,000, to remain available until September 30, 2028, to fund cybersecurity education and training, including scholarships, through programs of the National Science Foundation, and for related administrative expenses. 90018. National Science Foundation research infrastructure In addition to amounts otherwise available, there is appropriated to the National Science Foundation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $200,000,000 to remain available until September 30, 2026, for the repair, renovation, or, in exceptional cases, replacement of obsolete science and engineering facilities primarily devoted to research and research training, and for related administrative expenses; (2) $200,000,000, to remain available until September 30, 2026, for additional mid-scale and major research instrumentation, equipment, and infrastructure awards under the direction of the National Science Foundation, and for related administrative expenses; and (3) $100,000,000, to remain available until September 30, 2028, for academic research facilities modernization and research instrumentation, including construction, upgrade, renovation, or repair of research infrastructure, at historically Black colleges and universities, Tribal Colleges and Universities, Hispanic-serving institutions, and other minority-serving institutions, through programs of the National Science Foundation, and for related administrative expenses. 90019. National Science Foundation Oversight In addition to amounts otherwise available, there is appropriated to the National Science Foundation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,000,000, to remain available until September 30, 2030, for administrative expenses of the Inspector General relating to oversight of funds provided to the National Science Foundation under this Act. X Committee on Small Business A Increasing Federal Contracting Opportunities for Small Businesses 100101. Veteran Federal procurement entrepreneurship training program (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $35,000,000, to remain available until September 30, 2030, for carrying out subsection (h) of section 32 of the Small Business Act ( 15 U.S.C. 657b ), as added by this section. (b) Establishment Section 32 of the Small Business Act ( 15 U.S.C. 657b ) is amended by adding at the end the following: (h) Veteran Federal procurement entrepreneurship training program The Administrator, acting through the Associate Administrator, shall make grants to, or enter into cooperative agreements with, nonprofit entities to operate a Federal procurement entrepreneurship training program to provide assistance to small business concerns owned and controlled by veterans regarding how to increase the likelihood of being awarded contracts with the Federal Government. A grant or cooperative agreement under this subsection— (1) shall be made to or entered into with nonprofit entities that have a track record of successfully providing educational and job training services to veteran populations from diverse locations; and (2) shall include terms under which the nonprofit entities shall use a diverse group of professional service experts, such as Federal, State, and local contracting experts and private sector industry experts with first-hand experience in Federal Government contracting, to provide assistance to small business concerns owned and controlled by veterans through a program operated under this section. . 100102. Expanding surety bond program (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $85,000,000 for additional capital for the fund established under section 412 of the Small Business Investment Act of 1958 ( 15 U.S.C. 694c ); and (2) $15,000,000 for administrative expenses and oversight costs related to carrying out this section, and any amendments made by this section. (b) Expanding surety bond program Part B of title IV of the Small Business Investment Act of 1958 is amended— (1) in section 411— (A) in subsection (a)(1)— (i) in subparagraph (A), by striking $6,500,000 and inserting $10,000,000 ; and (ii) by amending subparagraph (B) to read as follows: (B) The Administrator may guarantee a surety under subparagraph (A) for a total work order or contract in an amount that does not exceed $20,000,000. ; and (B) in subsection (e)(2), by striking $6,500,000 and inserting the amount described in subparagraph (A) or (B) of subsection (a)(1), as applicable ; and (2) in section 412(a) ( 15 U.S.C. 694c(a) ), in the third sentence, by striking , excluding administrative expenses, . B Empowering Small Business Creation and Expansion in Underrepresented Communities 100201. Funding for uplift incubators (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $850,000,000 for carrying out section 49 of the Small Business Act, as added by subsection (b); and (2) $150,000,000 for administrative expenses and costs related to carrying out section 49 of the Small Business Act, as added by subsection (b). (b) Establishment The Small Business Act is amended— (1) by redesignating section 49 ( 15 U.S.C. 631 note) as section 54; and (2) by inserting after section 48 the following: 49. Uplift incubators (a) Definitions In this section: (1) Economic development organization The term economic development organization — (A) means a regional, State, tribal, or local private nonprofit organization established for purposes of promoting or otherwise facilitating economic development; and (B) includes community financial institutions, as defined in section 7(a)(36)(A). (2) Eligible applicant The term eligible applicant means— (A) an economic development organization; (B) an SBA partner organization; (C) a historically Black college or university; (D) an institution of higher education, as described in section 371(a) of the Higher Education Act; or (E) a junior or community college. (3) Eligible small business concern The term eligible small business concern means a business concern that— (A) is organized or incorporated in the United States; (B) is operating primarily in the United States; (C) meets— (i) the applicable industry-based size standard established under section 3; or (ii) the alternate size standard applicable to the program under section 7(a) or the loan programs under title V of the Small Business Investment Act of 1958; (D) is— (i) in the planning stages or has been in business for not more than 5 years as of the date on which assistance under this section commences; or (ii) a small government contractor; and (E) is— (i) owned and controlled by 1 or more members of an underrepresented community; or (ii) a Native Entity. (4) Historically black college or university The term historically Black college or university means a part B institution , as defined in section 322 of the Higher Education Act of 1965. (5) Member of an underrepresented community The term member of an underrepresented community means an individual— (A) who is a resident of— (i) a low-income community, as defined in section 45D(e) of the Internal Revenue Code of 1986; (ii) a low-income rural community; or (iii) a HUBZone, as defined in section 31(b); (B) who is a member of an Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994; (C) with a disability, as defined in section 3 of the Americans with Disabilities Act of 1990; (D) who is a veteran; (E) who completed a term of imprisonment; or (F) who is otherwise identified by the Administrator. (6) Native Entity The term Native Entity means— (A) an Alaska Native Corporation, as defined in section 3(m) of the Alaska Native Claims Settlement Act; and (B) a Native Hawaiian organization, as defined in section 6207 of the Elementary and Secondary Education Act of 1965. (7) SBA partner organization The term SBA partner organization means any organization awarded financial assistance in the form of a grant, prize, cooperative agreement, or contract for the purpose of conducting a public project funded, either in whole or in part, under a program of the Administration. (8) Small government contractor The term small government contractor means a small business concern that is performing a government contract or subcontract. (9) Uplift incubator The term uplift incubator means an organization that is designed to accelerate the growth and success of startups and small business concerns through a variety of business support resources and services, including— (A) access to physical workspace and facilities; (B) access to capital, business education, and counseling; (C) networking opportunities; (D) mentorship opportunities; (E) assistance in becoming prime contractors and submitting bids for prime contracts; (F) conducting market research, drafting statements, and identifying acquisition authorities under which eligible small business concerns assisted under this section may enter into Federal contracts or agreements; and (G) other services intended to aid in developing a business. (b) Authority The Administrator may provide financial assistance on a competitive basis in the form of a grant, prize, cooperative agreement, or contract to an eligible applicant for purposes of— (1) providing the services of a uplift incubator to eligible small business concerns; or (2) expanding or establishing a network of the eligible applicant to provide the services of a uplift incubator to eligible small business concerns. (c) Use of funds An eligible applicant that receives assistance under this section— (1) shall support areas that serve members of an underrepresented community by providing the services of a uplift incubator; and (2) shall not impose or otherwise collect a fee or other compensation from eligible small business concerns in connection with the provision of such services. (d) Penalties for failure to abide by terms or conditions of award At the discretion of the Administrator and in addition to any other civil or criminal consequences, the Administrator shall withhold payments to an eligible applicant or order the eligible applicant to return any assistance provided under this section for failure to abide by the terms and conditions of such assistance. . 100202. Office of Native American Affairs (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of any money in the Treasury not otherwise appropriated for fiscal year 2022, $10,000,000, to remain available until September 30, 2029, to carry out section 50 of the Small Business Act, as added by subsection (b). (b) Establishment The Small Business Act is amended by inserting after section 49, as added by section 100201 of this title, the following: 50. Office of Native American Affairs (a) Definitions In this section: (1) Alaska Native Corporation The term Alaska Native Corporation has the meaning given the term section 3(m) of the Alaska Native Claims Settlement Act. (2) Indian Tribe The term Indian Tribe means any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994. (3) Native American The term Native American means a member of an Indian Tribe. (4) Native Hawaiian Organization The term Native Hawaiian Organization has the meaning given in section 6207 of the Elementary and Secondary Education Act of 1965. (5) Resource partners The term resource partners means— (A) small business development centers; (B) women’s business centers described in section 29; (C) chapters of the Service Corps of Retired Executives established under section 8(b)(1)(B); and (D) Veteran Business Outreach Centers described in section 32. (b) Establishment There is established in the Administration an Office of Native American Affairs, in this section referred to as the Office , which shall provide entrepreneurship outreach and development assistance to Native Americans, Native Hawaiian Organizations and members thereof, Alaska Native Corporations and members thereof, and Indian Tribes, through the Native American Outreach Program established under subsection (c). (c) Native American Outreach Program (1) Establishment The Administrator shall establish and administer a Native American Outreach Program within the Office— (A) to ensure that small business concerns owned and controlled by Native Americans, Native Hawaiian Organizations, Alaska Native Corporations, and Indian Tribes, and Native American entrepreneurs have access to programs and services of the Administration; (B) to provide information to State, local, and tribal governments and other interested persons about Federal assistance available to small business concerns owned and controlled by Native Americans, Native Hawaiian Organizations, Alaska Native Corporations, and Indian Tribes, and Native American entrepreneurs; and (C) to ensure access to in-person and virtual counseling and training services to small business concerns owned and controlled by Native Americans, Native Hawaiian Organizations, Alaska Native Corporations, and Indian Tribes, and Native American entrepreneurs. (2) Services The services described in paragraph (1) shall include— (A) financial education on applying for and securing credit, loan guarantees, surety bonds, and investment capital, managing financial operations, and preparing and presenting financial statements and business plans; (B) education on management of a small business concern, including planning, organizing, staffing, and marketing; (C) identifying market opportunities; and (D) implementing economic and business development strategies to improve long-term job growth. . 100203. Office of Rural Affairs (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of any money in the Treasury not otherwise appropriated for fiscal year 2022, $10,000,000, to remain available until September 30, 2029, to carry out subsection (d) of section 26 of the Small Business Act ( 15 U.S.C. 653 ), as added by subsection (b). (b) Office of Rural Affairs Section 26 of the Small Business Act ( 15 U.S.C. 653 ) is amended by adding at the end the following: (d) Rural small business conferences The Office shall administer 1 or more annual Rural Small Business Conferences, to be held in various regions of the United States. The purpose of such Conferences shall be to— (1) promote policies and programs of the Administration specific to small business concerns located in rural areas, and make publicly available information about such policies and programs; (2) coordinate with all offices of the Administration, resource partners, lenders, and other interested persons to ensure that the needs of small business concerns located in rural area are being met; and (3) analyze data on the effectiveness of programs of the Administration that benefit small business concerns located in rural areas. . 100204. Office of Emerging Markets (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of any money in the Treasury not otherwise appropriated in fiscal year 2022, $10,000,000, to remain available until September 30, 2029, to carry out subsection (o) of section 7 of the Small Business Act ( 15 U.S.C. 636 ), as added by subsection (b). (b) Establishment Section 7 of the Small Business Act ( 15 U.S.C. 636 ) is amended by adding at the end the following: (o) Office of Emerging Markets (1) Definitions In this subsection— (A) the term Director means the Director of the Office of Emerging Markets; (B) the term microloan program means the program described in subsection (m); (C) the term small business concern in an emerging market means a small business concern— (i) that is located in— (I) a low-income or moderate-income area for purposes of the Community Development Block Grant Program under title I of the Housing and Community Development Act of 1974; or (II) a HUBZone, as that term is defined in section 31(b); (ii) that is growing, newly established, or a startup; (iii) owned and controlled by veterans; (iv) owned and controlled by individuals with a disability, as defined in section 3 of the Americans with Disabilities Act of 1990; or (v) owned and controlled by other individuals or groups identified by the Administrator. (2) Establishment There is established within the Office of Capital Access of the Administration an office to be known as the Office of Emerging Markets . The Office of Emerging Markets shall be administered by a Director who shall be responsible for the planning, coordination, implementation, evaluation, and improvement of the efforts of the Administrator to enhance the economic well-being of small business concerns in an emerging market. . 100205. State Trade Expansion Program In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— (1) $31,710,000, to remain available until September 30, 2027, to carry out section 22(l) of the Small Business Act ( 15 U.S.C. 649(l) ) in fiscal year 2023, and (2) $31,710,000, to remain available until September 30, 2027, to carry out section 22(l) of the Small Business Act ( 15 U.S.C. 649(l) ) in fiscal year 2024. C Encouraging Small Businesses to Fully Engage in the Innovation Economy 100301. Growth accelerator competition (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $190,000,000 for carrying out section 51 of the Small Business Act, as added by subsection (b); and (2) $10,000,000 for administrative expenses and oversight costs related to carrying out section 51 of the Small Business Act, as added by subsection (b). (b) In general The Small Business Act is amended by inserting after section 50, as added by section 100202 of this title, the following: 51. Growth accelerator competition (a) Definitions In this section: (1) Award The term award means a grant, prize, contract, cooperative agreement, or other cash or cash equivalent. (2) Disability The term disability has the meaning given the term in section 3 of the Americans with Disabilities Act of 1990. (3) Eligible entity The term eligible entity means— (A) an eligible applicant, as defined in section 49; or (B) an organization that is a growth accelerator located in the United States. (4) Growth accelerator The term growth accelerator means an organization that— (A) supports new small business concerns that have a focus on technology, research, and development; (B) works with a new small business concern for a predetermined amount of time; (C) provides mentorship and instruction to small business concerns to grow the business concern; or (D) offers startup capital or the opportunity to raise capital from outside investors to small business concerns. (5) New small business concern The term new small business concern means a small business concern that has been in operation for not more than 5 years. (b) Establishment The Administrator shall make competitive awards of not less than $100,000 to eligible entities to accelerate the growth of new small business concerns by providing— (1) assistance to small business concerns to access capital and find mentors and networking opportunities; and (2) advice to small business concerns, including advising on market analysis, company strategy, revenue growth, commercialization, and securing funding. (c) Use of funds An award under this section— (1) may be used by an eligible entity recipient for construction costs, acquisition of physical workspace and facilities, and programmatic purposes to benefit new small business concerns; and (2) may not be used by an eligible entity recipient to provide capital to new small business concerns directly or through the subaward of funds. (d) Penalties for failure to abide by terms or conditions of award At the discretion of the Administrator and in addition to any other civil or criminal consequences, the Administrator shall withhold payments to an eligible entity or order the eligible entity to return an award made under this section for failure to abide by the terms and conditions of the award. . D Increasing Equity Opportunities 100401. Increasing equity investment in the SBIC program (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, for carrying out this section. (b) Establishment The Small Business Investment Act of 1958, is amended— (1) in section 103 ( 15 U.S.C. 662 )— (A) in paragraph (9)(B)(iii)— (i) in subclause (II), by striking and at the end; (ii) in subclause (III), by adding and at the end; and (iii) by adding at the end the following: (IV) funds obtained from any financial institution identified under section 302(b); ; and (B) in paragraph (13)(C), by striking in an aggregate amount that does not exceed 33 percent of the private capital of the applicant or licensee ; and (2) in section 304 ( 15 U.S.C. 684 ), by adding at the end the following: (e) Notwithstanding section 310(c)(6), a licensee under section 321 may, subject to rules to be issued by the Administration, invest equity capital in investment funds that— (1) are majority controlled by members of an underrepresented community, as defined in section 49 of the Small Business Act; (2) receive annual assistance provided by such licensee; or (3) meet additional criteria as determined by the Administration. ; and (3) by adding at the end of the following: 321. Emerging managers program (a) Definitions In this section: (1) Covered investments The term covered investments means investments in— (A) infrastructure, including— (i) roads, bridges, and mass transit; (ii) water supply and sewer; (iii) the electrical grid; (iv) broadband and telecommunications; (v) clean energy; or (vi) child care and elder care; (B) manufacturing; (C) low-income communities, as that term is defined in section 45D(e) of the Internal Revenue Code of 1986; (D) HUBZones, as defined in section 31(b) of the Small Business Act; (E) small business concerns owned and controlled by a member of an Indian tribe individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994; (F) small business concerns owned and controlled by an individual with a disability, as defined in section 3 of the Americans with Disabilities Act of 1990; (G) small business concerns owned and controlled by a veteran; or (H) industries identified by the Administrator. (2) Emerging manager company The term emerging manager company means an investment management firm that is focused on investing private equity and that meets not less than 2 of the following criteria: (A) The partners of the firm have— (i) an investment track record of less than 10 years of combined investment experience; or (ii) a documented record of successful business experience. (B) The firm has a focus on underserved markets. (C) The firm is not less than 50 percent owned, managed, or controlled by members of an underrepresented community (as defined in section 49 of the Small Business Act). (b) Establishment The Administrator shall establish an emerging managers program pursuant to which managers with substantial experience in operating small business investment companies— (1) may enter into a written agreement approved by the Administrator to provide guidance and assistance to an applicant for a license for a small business investment company that is to be managed by an emerging manager company; and (2) may hold a minority financial interest in the small business investment company described in paragraph (1). (c) Licensing An applicant described in subsection (b)(1) shall apply for a license under section 301(c) and shall— (1) have private capital not to exceed $100,000,000; (2) be managed by not less than two individuals; (3) be a second generation fund or earlier; and (4) focus its investment strategy on covered investments. (d) Waiver of maximum leverage The approval of a written agreement under subsection (b) by the Administrator shall operate as a waiver of the requirements of section 303(b)(2)(B) to the extent that such section would otherwise apply. (e) Increased leverage maximum An existing small business investment company that enters into a written agreement under subsection (b) may receive an increase in the maximum leverage cap of the company under section 303(b)(2)— (1) under subparagraph (A) of such section, with respect to a single license, by not more than $17,500,000; and (2) under subparagraph (B) of such section, with respect to multiple licenses under common control, by not more than $35,000,000. . 100402. Microcap small business investment company license (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated, $40,000,000, to remain available until September 30, 2031, to carry out paragraph (5) of section 301(c) of the Small Business Investment Act of 1958 ( 15 U.S.C. 681(c) ), as added by subsection (b). (b) Microcap small business investment company license Section 301(c) of the Small Business Investment Act of 1958 ( 15 U.S.C. 681(c) ) is amended by adding at the end the following: (5) Microcap small business investment company license (A) In general The Administrator may issue licenses under this subsection to applicants— (i) that do not satisfy the qualification requirements under paragraph (3)(A)(ii) to the extent that such requirements relate to investment experience and track record, including any such requirements further set forth in section 107.305 of title 13, Code of Federal Regulations, or any successor regulation; (ii) that would otherwise be issued a license under this subsection, except that the management of the applicant does not satisfy the requirements under paragraph (3)(A)(ii) to the extent that such requirements relate to investment experience and track record, including any such requirements further set forth in section 107.305 of title 13, Code of Federal Regulations, or any successor regulation; (iii) for which the managers of such applicant have— (I) a documented record of successful business experience; (II) a record of business management success; or (III) knowledge in the particular industry or business for which the applicant is pursuing an investment strategy; and (iv) that have demonstrated appropriate qualifications for the license, based on factors determined by the Administrator. (B) Required investments A licensee under this paragraph shall invest not less than 50 percent of the total financings of the licensee in covered investments (as defined in section 321), of which not more than 33 percent of those investments are in small business concerns in infrastructure or manufacturing. (C) Leverage A company licensed pursuant to this paragraph shall— (i) not be eligible to receive leverage in an amount that is more than $50,000,000; and (ii) be able to access leverage in an amount that is not more than 200 percent of the private capital of the company. (D) Investment committee If a company licensed pursuant to this paragraph has investment committee members or control persons who are principals approved by the Administrator or control persons of licensed small business investment companies not licensed under this paragraph, such licensee or licensees shall not be deemed to be under common control with the company licensed pursuant to this paragraph solely for the purpose of section 303(b)(2)(B). (E) Fees In addition to the fees authorized under sections 301(e) and 310(b), the Administration may prescribe fees to be paid by each company designated to operate under this paragraph. . 100403. Funding for SBIC outreach and education (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,500,000, to remain available until September 30, 2031, for carrying out this section. (b) Outreach and education The Administrator shall develop and implement a program to promote to, conduct outreach to, and educate prospective licensees on the licensing procedures and other programs of small business investment companies under title III of the Small Business Investment Act of 1958. E Increasing Access to Lending and Investment Capital 100501. Funding for Community Advantage Loan Program (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $224,800,000 for carrying out paragraph (38) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added by subsection (b); (2) $4,000,000 for the Administrator of the Small Business Administration to develop a training course and provide free or low-cost training to covered institutions making loans under the program established under such paragraph (38); and (3) $47,100,000 for administrative expenses related to carrying out such paragraph (38), including issuing interim final rules. (b) Establishment Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) is amended by adding at the end the following: (38) Community Advantage Loan Program (A) Definitions In this paragraph— (i) the term covered institution means— (I) a development company, as defined in section 103 of the Small Business Investment Act of 1958, participating in the loan program established under title V of such Act; (II) a non-Federally regulated entity certified as a community development financial institution under the Community Development Banking and Financial Institutions Act of 1994; (III) an intermediary, as defined in subsection (m)(11), that is a nonprofit organization and is participating in the microloan program under subsection (m); and (IV) an eligible intermediary, as defined in subsection (l)(1), participating in the small business intermediary lending pilot program established under subsection (l)(2); (ii) the term new business means a small business concern that has been in business for not more than 2 years on the date on which a loan is made to the small business concern under the program; (iii) the term program means the Community Advantage Loan Program established under subparagraph (B); (iv) the term small business concern in an underserved market means a small business concern— (I) that is located in— (aa) a low- to moderate-income community; (bb) a HUBZone, as that term is defined in section 31(b); (cc) a rural area; or (dd) any area for which a disaster declaration or determination described in subparagraph (B), (C), or (E) of subsection (b)(2) has been made that has not terminated more than 2 years (or later, as determined by the Administrator) before the date on which a loan is made to such concern under such subsection, or in any area for which a major disaster described in subsection (b)(2)(A) has been declared, that period shall be 5 years; (II) that is a new business; (III) owned and controlled by veterans; (IV) owned and controlled by an individual who has completed a term of imprisonment; (V) owned and controlled by an individual with a disability, as that term is defined in section 3 of the Americans with Disabilities Act of 1990; (VI) owned and controlled by a member of an Indian tribe individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994; or (VII) otherwise identified by the Administrator. (B) Establishment There is established a Community Advantage Loan Program under which the Administration may guarantee loans made by covered institutions under this subsection, with an emphasis on loans made to small business concerns in an underserved market. (C) Requirement to make loans to underserved markets Not less than 60 percent of loans made by a covered institution under the program shall consist of loans made to small business concerns in an underserved market. (D) Maximum loan amount (i) In general Except as provided in clause (ii), the maximum loan amount for a loan guaranteed under the program is $250,000. (ii) Exceptions (I) Requested exception (aa) In general Upon request by a covered institution, the Administrator may guarantee a loan under the program that is more than $250,000 and not more than $350,000. (bb) Notification As soon as practicable and not later than 14 business days after receiving a request under item (aa), the Administration shall— (AA) review the request; and (BB) provide a decision regarding the request to the covered institution making the loan. (II) Major disasters The maximum loan amount for a loan guaranteed under the program that is made to a small business concern located in an area affected by a major disaster described in subsection (b)(2)(A) is $350,000. (E) Interest rates The maximum interest rate for a loan guaranteed under the program shall not exceed the maximum interest rate, as determined by the Administration, applicable to other loans guaranteed under this subsection. . 100502. Funding for credit enhancement and small dollar loan funding (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— (1) $1,480,600,000 to carry out paragraph (39) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added by subsection (b); and (2) $484,000,000 for administrative expenses related to carrying out such paragraph (39), including issuing interim final rules within 90 days after the date of the enactment of this title, of which $25,000,000 is reserved for grants to conduct outreach to entities eligible to receive a loan under such paragraph (39). (b) Small dollar loan funding Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as amended by section 100501, is further amended— (1) in paragraph (1)(A)(i), in the third sentence, by striking ; and and all that follows through the period at the end and inserting a period; (2) in paragraph (4)(A), by striking the comma after prescribed by the Administration and all that follows through the period at the end and inserting a period; (3) in paragraph (26), by inserting (except for those collected under paragraph (39)) after profits ; and (4) by adding at the end the following: (39) Small dollar loan funding (A) Definitions In this paragraph: (i) Small government contractor The term small government contractor means a small business concern that is performing a government contract. (ii) Small manufacturer The term small manufacturer means a small business concern that is assigned a North American Industry Classification System code beginning with 31, 32, or 33 at the time at which the small business concern receives loan under this subsection. (B) Direct loans The Administrator is authorized to originate and disburse direct loans, including through partnerships with third parties, to small business concerns. (C) Maximum loan size Notwithstanding paragraph (3)(C) of this subsection, a loan made in accordance with this paragraph shall be— (i) except as provided in clause (ii), not more than $150,000; or (ii) not more than $1,000,000, if the borrower is a small manufacturer or a small government contractor. (D) Fees With respect to each loan made in accordance with this paragraph, the Administrator, an authorized third party, or an agent may— (i) impose, collect, retain, and utilize fees, which may be charged to the borrower, to cover any costs associated with referring applications or originating, making, underwriting, disbursing, closing, servicing, or liquidating the loan, including any direct lending agent costs, other program or contract costs, or other agent administrative expenses; (ii) impose, collect, retain, and use fees (including unused fees and draw fees), which may be charged to the borrower on loans for revolving lines of credit; and (iii) pay third parties, including direct lending agents and financial institutions, with which the Administration partners for assistance in referring applicants or promoting, originating, making, underwriting, disbursing, closing, servicing, or liquidating loans in accordance with this paragraph on behalf of the Administration. (E) Terms Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall issue interim final rules and revise any relevant rules to establish the terms and conditions for a direct loan, including repayment, underwriting criteria, interest rate, maturity, and other terms of a loan made in accordance with this paragraph. . 100503. Extension of temporary fee reductions (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $950,000,000, to remain available until September 30, 2026, for carrying out this section and any amendments made by this section. (b) 7(a) loan program Section 326 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260 ; 134 Stat. 2036; 15 U.S.C. 636 note) is amended— (1) in subsection (a)(2), by striking October 1, 2021 and inserting October 1, 2026 ; and (2) in subsection (b)(2), by striking October 1, 2021 and inserting October 1, 2026 . (c) Other fees Section 327 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260 ; 134 Stat. 2037; 15 U.S.C. 636 note) is amended— (1) in subsection (a)(1), by striking September 30, 2021 and inserting September 30, 2026 ; and (2) in subsection (b)(1), by striking September 30, 2021 and inserting September 30, 2026 . 100504. Funding for cooperatives (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, for carrying out paragraph (40) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added by subsection (b). (b) Cooperative lending pilot Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as amended by section 100502, is further amended by adding at the end the following: (40) Cooperative lending pilot (A) Definitions In this paragraph: (i) Community financial institution The term community financial institution has the meaning given in paragraph (36)(A). (ii) Cooperative The term cooperative — (I) means an entity determined by the Administrator to be a cooperative; and (II) includes an entity owned by employees or consumers of the entity. (iii) Eligible employee-owned business concern The term eligible employee-owned business concern means— (I) a cooperative in which the employees of the cooperative are eligible for membership; (II) a qualified employee trust; or (III) other employee-owned entities as determined by the Administrator. (iv) Pilot program The term pilot program means the pilot program established under subparagraph (B). (B) Establishment There is established a pilot program under which the Administrator shall guarantee loans (including loans made by community financial institutions), without the requirement of a personal or entity guarantee, where such loans shall be made to cooperatives or eligible employee-owned business concerns. (C) Termination The pilot program shall terminate on the date that is 5 years after the date of enactment of this paragraph. . (c) Delegated lending authority for preferred lenders Section 5(b)(7) of the Small Business Act ( 15 U.S.C. 634(b)(7) ) is amended by striking paragraph (15) or (35) and inserting paragraph (15), (35), or (40) . F Supporting Entrepreneurial Second Chances 100601. Reentry entrepreneurship counseling and training for incarcerated and formerly incarcerated individuals (a) Reentry entrepreneurship counseling and training for incarcerated individuals (1) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of money in the Treasury not otherwise appropriated for fiscal year 2022, $35,000,000, to remain available until September 30, 2029, to carry out section 52 of the Small Business Act, as added by paragraph (2). (2) In general The Small Business Act is amended by inserting after section 51, as added by section 100301 of this title, the following: 52. Reentry entrepreneurship counseling and training for incarcerated individuals (a) Definitions In this section: (1) Covered individual The term covered individual means an individual who is completing a term of imprisonment in a facility designated as a minimum, low, or medium security. (2) Resource partners The term resource partners means a small business development center (defined in section 3) or a women’s business center (described under section 29). (b) Establishment The Administrator shall coordinate with resource partners and associations formed to pursue matters of common concern to resource partners to provide entrepreneurship counseling and training services to covered individuals pursuant to subsection (c). (c) Use of funds Amounts made available under this section shall be used to— (1) develop and deliver a curriculum, including classroom instruction and in-depth training to develop skills related to business planning and financial literacy; (2) train mentors and instructors; (3) establish public-private partnerships to support covered individuals; and (4) identify opportunities to access capital. . (b) Reentry entrepreneurship counseling and training for formerly incarcerated individuals (1) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of any money in the Treasury not otherwise appropriated for fiscal year 2022, $35,000,000, to remain available until September 30, 2029, to carry out section 53 of the Small Business Act, as added by paragraph (2). (2) In general The Small Business Act is amended by inserting after section 52, as added by subsection (a), the following: 53. Reentry entrepreneurship counseling and training for formerly incarcerated individuals (a) Covered individual defined In this section, the term covered individual means an individual who completed a term of imprisonment. (b) Establishment The Administrator shall establish a program under which the Service Corps of Retired Executives authorized by section 8(b)(1)(B) shall provide entrepreneurship counseling and training services to covered individuals on a nationwide basis. (c) Use of funds Amounts made available under this section shall be used by the Service Corps of Retired Executives for providing to covered individuals the following services: (1) Regular individualized mentoring sessions to identify and support development of the business plans of covered individuals. (2) Workshops on topics specifically tailored to meet the needs of covered individuals. (3) Instructional videos designed specifically for covered individuals on how to start or expand a small business concern. . 100602. New start entrepreneurial development program for formerly incarcerated individuals (a) Appropriations In addition to amounts otherwise available, there is appropriated to the Small Business Administration, out of any money in the Treasury not otherwise appropriated for fiscal year 2022, $35,000,000, to remain available until September 30, 2029, for carrying out this section. (b) Definitions In this section— (1) Covered individual The term covered individual means an individual who— (A) completed a term of imprisonment; and (B) meets the offense eligibility requirements set forth in any applicable policy notice or other guidance issued by the Small Business Administration for the program established under section 7(m) of the Small Business Act ( 15 U.S.C. 636(m) ). (2) Intermediary; microloan The terms intermediary and microloan have the meanings given those terms, respectively, in section 7(m)(11) of the Small Business Act ( 15 U.S.C. 636(m)(11) ). (3) Participating lender The term participating lender means a participating lender described under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ). (4) Pilot program The term pilot program means the pilot program established under subsection (b). (5) Resource partner The term resource partner means— (A) a small business development center (defined in section 3 of the Small Business Act ( 15 U.S.C. 632 )); (B) a women’s business center (described under section 29 of such Act ( 15 U.S.C. 656 )); (C) a chapter of the Service Corps of Retired Executives (established under section 8(b)(1)(B) of such Act (( 15 U.S.C. 637(b)(1)(B) )); and (D) a Veteran Business Outreach Center (described under section 32 of such Act ( 15 U.S.C. 657b )). (c) Establishment The Administrator shall establish a pilot program to award grants to organizations, or partnerships of organizations, to provide assistance to covered individuals throughout the United States. (d) Application (1) In general An organization or partnership of organizations desiring a grant under the pilot program shall submit an application to the Administrator in such form, in such manner, and containing such information as the Administrator may reasonably require. (2) Contents An application submitted under paragraph (1) shall— (A) demonstrate that the applicant has a partnership with, or is, an intermediary that shall make microloans to covered individuals; (B) demonstrate an ability to provide a full range of entrepreneurial development programming on an ongoing basis; (C) include a plan for reaching covered individuals, including by identifying particular target populations within the community in which a covered individual lives; (D) include a plan to refer covered individuals who have completed participation in the pilot program to existing resource partners and participating lenders; (E) include a comprehensive plan for the use of grant funds, including estimates for administrative expenses and outreach costs; and (F) any other requirements, as determined by the Administrator. (e) Matching requirement (1) In general As a condition of a grant provided under the pilot program, the Administrator shall require the recipient of the grant to contribute an amount equal to 25 percent of the amount of the grant, obtained solely from non-Federal sources. (2) Form In addition to cash or other direct funding, the contribution required under paragraph (1) may include indirect costs or in-kind contributions paid for under non-Federal programs. G Other Matters 100701. Administrative expenses (a) In general In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $125,000,000, to remain available until September 30, 2030, for administrative expenses related to carrying out this title (or any amendments made by this title), except as otherwise provided in this title. (b) Rulemaking Using amounts made available under subsection (a), not later than 30 days after the date of the enactment of this Act, the Administrator may issue rules, including interim final rules, as necessary to carry out this title and the amendments made by this title. 100702. Office of Inspector General of the Small Business Administration In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $12,500,000, to remain available until September 30, 2030, for audits, investigations, and other oversight of projects and activities carried out with funds made available by this title to the Small Business Administration. XI Committee on Transportation and Infrastructure 110001. Affordable housing access program (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,750,000,000, to remain available until September 30, 2026, to the Secretary of Housing and Urban Development and the Administrator of the Federal Transit Administration to make competitive grants under sections 5307, 5311, and 5339(c) of title 49, United States Code, to support— (1) access to affordable housing; (2) enhanced mobility for residents and riders, including those in disadvantaged communities and neighborhoods, persistent poverty communities, or for low-income riders generally; and (3) other community benefits for residents of disadvantaged communities or neighborhoods, persistent poverty communities, or for low-income riders generally identified by the Secretary and the Administrator related to enhanced transit service, including— (A) access to job and educational opportunities; (B) better connections to medical care; and (C) enhanced access to grocery stores with fresh foods to help eliminate food deserts. (b) Administration of funds Funds made available under this section— (1) shall not be subject to any prior restriction on the total amount of funds available for implementation or execution of programs authorized under sections 5307, 5311, 5312, 5314, or 5339(c) of title 49, United States Code; (2) notwithstanding requirements related to Government share under such sections, shall be available for up to 100 percent of the net cost of a project; (3) notwithstanding section 5307(a)(1) of such title, may be used for operating costs of equipment and facilities in an urbanized area with a population equal to or greater than 200,000 individuals; and (4) shall be expended in compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program. (c) Eligible activities Eligible activities for funds made available under subsection (a) shall be— (1) construction of a new fixed guideway capital project; (2) construction of a bus rapid transit project or a corridor-based bus rapid transit project that utilizes zero-emission vehicles, or a collection of such projects; (3) the establishment or expansion of high-frequency bus service that utilizes zero-emission buses; (4) the acquisition of zero-emission vehicles or related infrastructure under section 5339(c) of title 49, United States Code, to expand service in urban areas and the acquisition of vehicles under section 5311 of such title to expand service in non-urban areas; (5) an expansion of the service area or the frequency of service of recipients or subrecipients under sections 5307 or 5311 of such title, including the provision of fare-free or reduced-fare service; (6) renovation or construction of facilities and incidental expenses related to transit service in disadvantaged communities or neighborhoods or service that benefits low-income riders generally; (7) additional assistance to project sponsors of new fixed guideway capital projects, core capacity improvement projects, or corridor-based bus rapid transit projects not yet open to revenue service, notwithstanding applicable requirements regarding Government share of contributions toward net project cost of the project or the share of contributions provided by the Administrator of the Federal Transit Administration, if— (A) the applicant demonstrates that the availability of funding under this section provides additional support for transit services consistent with the requirements in subsection (a); and (B) assistance under this paragraph does not increase by more than 10 percentage points— (i) the Government share of contributions toward net project cost; or (ii) the Government share of assistance from a program carried out by the Administrator of the Federal Transit Administration; (8) fleet transition, route, or other public transportation planning, including planning related to economic development; and (9) projects to upgrade the accessibility of bus or rail public transportation services for persons with disabilities, including individuals who use wheelchairs. (d) Research, technical assistance, and training In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2026, for grants under sections 5312 or 5314 of title 49, United States Code, (excluding grants related to any activities or agreements with international entities or foreign nationals) for— (1) activities under section 5312 of such title that support efforts to reduce barriers to the deployment of zero-emission transit vehicles in disadvantaged communities or neighborhoods and rural areas, including barriers related to the cost of such vehicles; and (2) activities under section 5314 of such title for training and development activities to support the provision of service to disadvantaged communities or neighborhoods and rural areas. (e) Administrative expenses In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for administrative expenses and oversight costs of carrying out this section and to make new awards or to increase prior awards to provide technical assistance and capacity building for eligible recipients or subrecipients under this section. (f) Period of availability Any funds provided from the general fund of the Treasury to carry out grants under section 5339(c) of title 49, United States Code, for fiscal years 2025 and 2026 shall remain available until September 30, 2028. 110002. Community climate incentive grant program (a) In general Chapter 1 of title 23, United States Code, is amended by adding at the end the following: 177. Community climate incentive grant program (a) Establishment In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration— (1) to establish a greenhouse gas performance measure that requires States to set performance targets to reduce greenhouse gas emissions; (2) to establish an incentive structure to reward States that demonstrate the most significant progress toward achieving reductions in greenhouse gas emissions; (3) to establish consequences for States that do not achieve reductions in greenhouse gas emissions; (4) to issue guidance and regulations and provide technical assistance as necessary to implement this section; and (5) for operations and administration of the Federal Highway Administration in carrying out this section. (b) Incentive grants to states In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $950,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for incentive grants for carbon reduction projects, to be awarded to States that— (1) qualify for a reward under the incentive structure established by the Administrator of the Federal Highway Administration under subsection (a)(2); or (2) have incorporated carbon reduction strategies that contribute to achieving net zero greenhouse gas emissions by 2050 into the transportation plans required under section 135. (c) Community climate grants to other eligible entities (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration to award grants, on a competitive basis, for carbon reduction projects to eligible entities that are not States. (2) Federal share The Federal share of the cost of a project carried out with a grant under this subsection may be up to 100 percent. (d) Use of funds (1) In general A project carried out under subsection (b) or (c) shall be treated as a project on a Federal-aid highway. (2) Compliance with existing requirements Funds made available for a grant under subsection (b), and funds made available for a grant under subsection (c) that are administered by or through a State department of transportation, shall be expended in compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program. (e) Limitation Funds made available under this section shall not— (1) be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways; or (2) be used for projects that result in additional through travel lanes for single occupant passenger vehicles. (f) Definitions In this section: (1) Carbon reduction project The term carbon reduction project means a project— (A) that is eligible under this title; and (B) that— (i) will result in significant reductions in greenhouse gas emissions related to a surface transportation facility or project; (ii) provides zero-emission transportation options; (iii) reduces dependence on single-occupant vehicle trips; or (iv) advances carbon reduction strategies adopted by an eligible entity that contribute to achieving net-zero greenhouse gas emissions by 2050. (2) Eligible entity The term eligible entity means— (A) a unit of local government; (B) a political subdivision of a State; (C) a territory; (D) a metropolitan planning organization (as defined in section 134(b)(2)); (E) a special purpose district or public authority with a transportation function; (F) an entity described in section 207(m)(1)(E); or (G) a State. . (b) Clerical amendment The analysis for chapter 1 of title 23, United States Code, is amended by adding at the end the following: 177. Community climate incentive grant program. . 110003. Neighborhood access and equity grant program (a) In general Chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 178. Neighborhood access and equity grant program (a) In General In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,370,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for competitive grants to eligible entities described in subsection (b)— (1) to improve walkability, safety, and affordable transportation access through construction of projects that are context-sensitive— (A) to remove, remediate, or reuse a facility described in subsection (c)(1); (B) to replace a facility described in subsection (c)(1) with a facility that is at-grade or lower speed; (C) to retrofit or cap a facility described in subsection (c)(1); (D) to build or improve complete streets, multiuse trails, regional greenways, or active transportation networks and spines; or (E) to provide affordable access to essential destinations, public spaces, or transportation links and hubs; (2) to mitigate or remediate negative impacts on the human or natural environment resulting from a facility described in subsection (c)(2) in a disadvantaged or underserved community, including construction of— (A) noise barriers to reduce impacts resulting from a facility described in subsection (c)(2); (B) technologies, infrastructure, and activities to reduce surface transportation-related air pollution, including greenhouse gas emissions; (C) infrastructure or protective features to reduce or manage stormwater run-off resulting from a facility described in subsection (c)(2), including through natural infrastructure and pervious, permeable, or porous pavement; (D) infrastructure and natural features to reduce or mitigate urban heat island hot spots in the transportation right-of-way or on surface transportation facilities; or (E) safety improvements for vulnerable road users; and (3) for planning and capacity building activities in disadvantaged or underserved communities to— (A) identify, monitor, or assess local and ambient air quality, emissions of transportation greenhouse gases, hot spot areas of extreme heat or elevated air pollution, gaps in tree canopy coverage, or flood prone transportation infrastructure; (B) assess transportation equity or pollution impacts and develop local anti-displacement policies and community benefit agreements; (C) conduct predevelopment activities for projects eligible under this subsection; (D) expand public participation in transportation planning by individuals and organizations in disadvantaged or underserved communities; or (E) administer or obtain technical assistance related to activities described in this subsection. (b) Eligible entities described An eligible entity referred to in subsection (a) is— (1) a State; (2) a unit of local government; (3) a political subdivision of a State; (4) an entity described in section 207(m)(1)(E); (5) a territory of the United States; (6) a special purpose district or public authority with a transportation function; (7) a metropolitan planning organization (as defined in section 134(b)(2)); or (8) with respect to a grant described in subsection (a)(3), in addition to an eligible entity described in paragraphs (1) through (7), a nonprofit organization or institution of higher education that has entered into a partnership with an eligible entity described in paragraphs (1) through (7). (c) Facility described A facility referred to in subsection (a) is— (1) a surface transportation facility for which high speeds, grade separation, or other design factors create an obstacle to connectivity within a community; or (2) a surface transportation facility which is a source of air pollution, noise, stormwater, or other burden to a disadvantaged or underserved community. (d) Investment in economically disadvantaged communities (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,580,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration to provide grants for projects in communities described in paragraph (2) for the same purposes and administered in the same manner as described in subsection (a). (2) Communities described A community referred to in paragraph (1) is a community that— (A) is economically disadvantaged, including an underserved community or a community located in an area of persistent poverty; (B) has entered or will enter into a community benefits agreement with representatives of the community; (C) has an anti-displacement policy, a community land trust, or a community advisory board in effect; or (D) has demonstrated a plan for employing local residents in the area impacted by the activity or project proposed under this section. (e) Administration (1) In general A project carried out under subsection (a) or (d) shall be treated as a project on a Federal-aid highway. (2) Compliance with existing requirements Funds made available for a grant under this section and administered by or through a State department of transportation shall be expended in compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program. (f) Cost share The Federal share of the cost of an activity carried out using a grant awarded under this section shall be not more than 80 percent, except that the Federal share of the cost of a project in a disadvantaged or underserved community may be up to 100 percent. (g) Technical assistance In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for— (1) guidance, technical assistance, templates, training, or tools to facilitate efficient and effective contracting, design, and project delivery by units of local government; (2) subgrants to units of local government to build capacity of such units of local government to assume responsibilities to deliver surface transportation projects; and (3) operations and administration of the Federal Highway Administration. (h) Limitations Amounts made available under this section shall not— (1) be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways; and (2) be used for a project for additional through travel lanes for single-occupant passenger vehicles. . (b) Clerical amendment The analysis for chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 178. Neighborhood access and equity grant program. . 110004. Territorial highway program funding (a) In general In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $320,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for distribution under section 165(c) of title 23, United States Code. (b) Limitation Funds made available under this section shall not be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways. 110005. Traffic safety clearinghouse (a) In general In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $47,500,000 to remain available until September 30, 2026, for the Administrator of the National Highway Traffic Safety Administration to make 1 or more grants, cooperative agreements, or contracts with 1 or more qualified institutions to— (1) operate a national clearinghouse for fair and equitable traffic safety enforcement programs; (2) conduct research relating to, and develop, systems for States to collect traffic safety enforcement data, and provide technical assistance to States collecting such data, including the sharing of data to a national database; (3) develop recommendations and best practices to help States collect and use traffic safety enforcement data to promote equity and reduce traffic-related fatalities and injuries; and (4) develop information and educational programs relating to implementing equitable traffic safety enforcement best practices to assist States and local communities. (b) Administration In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,500,000 to remain available until September 30, 2026, for the Administrator of the National Highway Traffic Safety Administration for the salaries, expenses, and costs of administering this section. (c) Definition of State In this section the term State has the meaning given the term in section 401 of title 23, United States Code. 110006. Passenger rail improvement, modernization, and emissions reduction grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary of Transportation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until September 30, 2026, for financial assistance under sections 26101 and 26106 of title 49, United States Code, to eligible entities for eligible projects. (b) Definitions In this section: (1) Corridor The term corridor means an existing, modified, or proposed intercity passenger rail service (as defined in section 26106(b)(5) of title 49, United States Code). (2) Eligible entity The term eligible entity means— (A) an entity that is eligible to receive financial assistance under section 26101 of title 49, United States Code; and (B) an applicant that is eligible to receive a grant under section 26106 of title 49, United States Code. (3) Eligible project The term eligible project means— (A) a planning project for high-speed rail corridor development that consists of planning activities eligible to receive financial assistance under section 26101(b)(1) of title 49, United States Code; and (B) a capital project for high-speed rail corridor development that— (i) is eligible to receive a grant for a capital project (as defined in section 26106(b)(3) of title 49, United States Code); and (ii) directly serves rail stations within urban areas (as published by the Bureau of the Census) that are located in close proximity to a census tract (as published by the Bureau of the Census) within the urban area that has a greater density population than the urban area as a whole. (4) High-speed rail The term high-speed rail means non-highway ground transportation that is owned or operated by an eligible entity and reasonably expected to reach speeds of— (A) 160 miles per hour or faster on a shared use right-of-way; or (B) 186 miles per hour or faster on a dedicated right-of-way. (c) Allocation Not less than $1,000,000,000 of the amounts appropriated by subsection (a) shall be used for eligible projects described in subsection (b)(3)(A). (d) Federal share For any financial assistance and grants provided pursuant to this section, the Federal share may not exceed 90 percent of the total cost of the eligible project. (e) Oversight Not more than $100,000,000 of the amounts appropriated by subsection (a) may be used by the Secretary of Transportation for the costs of award and project management of financial assistance provided under this section. 110007. Alternative fuel and low-emission aviation technology program (a) Appropriation and establishment For purposes of establishing a competitive grant program to provide grants to eligible entities to carry out projects located in the United States that produce, transport, blend, or store sustainable aviation fuel, or develop, demonstrate, or apply low-emission aviation technologies, in addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026— (1) $247,000,000 for projects relating to the production, transportation, blending, or storage of sustainable aviation fuel; (2) $47,000,000 for projects relating to low-emission aviation technologies; and (3) $6,000,000 to fund the award of grants under this section, and oversight of the program, by the Secretary. (b) Considerations In carrying out subsection (a), the Secretary shall consider, with respect to a proposed project— (1) the capacity for the eligible entity to increase the domestic production and deployment of sustainable aviation fuel or the use of low-emission aviation technologies among the United States commercial aviation and aerospace industry; (2) the projected greenhouse gas emissions from such project, including emissions resulting from the development of the project, and the potential the project has to reduce or displace, on a lifecycle basis, United States greenhouse gas emissions associated with air travel; (3) the capacity to create new jobs and develop supply chain partnerships in the United States; (4) for projects related to the production of sustainable aviation fuel, the projected lifecycle greenhouse gas emissions benefits from the proposed project, which shall include feedstock and fuel production and potential direct and indirect greenhouse gas emissions (including resulting from changes in land use); and (5) the benefits of ensuring a diversity of feedstocks for sustainable aviation fuel, including the use of waste carbon oxides and direct air capture. (c) Cost share The Federal share of the cost of a project carried out using grant funds under subsection (a) shall be a maximum of 90 percent of the proposed total cost of the project, and the Secretary shall consider the extent to which a proposed project meets the considerations described in subsection (b) in determining the Federal share under this subsection. (d) Fuel emissions reduction test For purposes of clause (ii) of subsection (e)(7)(E), the Secretary shall, not later than 2 years after the date of enactment of this section, adopt at least 1 methodology for testing lifecycle greenhouse gas emissions that meets the requirements of such clause. (e) Definitions In this section: (1) Eligible entity The term eligible entity means— (A) a State or local government, including the District of Columbia, other than an airport sponsor; (B) an air carrier; (C) an airport sponsor; (D) an accredited institution of higher education; (E) a research institution; (F) a person or entity engaged in the production, transportation, blending, or storage of sustainable aviation fuel in the United States or feedstocks in the United States that could be used to produce sustainable aviation fuel; (G) a person or entity engaged in the development, demonstration, or application of low-emission aviation technologies; or (H) nonprofit entities or nonprofit consortia with experience in sustainable aviation fuels, low-emission aviation technologies, or other clean transportation research programs. (2) Feedstock The term feedstock means sources of hydrogen and carbon not originating from unrefined or refined petrochemicals. (3) Induced land-use change values The term induced land-use change values means the greenhouse gas emissions resulting from the conversion of land to the production of feedstocks and from the conversion of other land due to the displacement of crops or animals for which the original land was previously used. (4) Lifecycle greenhouse gas emissions The term lifecycle greenhouse gas emissions means the combined greenhouse gas emissions from feedstock production, collection of feedstock, transportation of feedstock to fuel production facilities, conversion of feedstock to fuel, transportation and distribution of fuel, and fuel combustion in an aircraft engine, as well as from induced land-use change values. (5) Low-emission aviation technologies The term low-emission aviation technologies means technologies, produced in the United States, that significantly— (A) improve aircraft fuel efficiency; (B) increase utilization of sustainable aviation fuel; or (C) reduce greenhouse gas emissions produced during operation of civil aircraft. (6) Secretary The term Secretary means the Secretary of Transportation. (7) Sustainable aviation fuel The term sustainable aviation fuel means liquid fuel, produced in the United States, that— (A) consists of synthesized hydrocarbons; (B) meets the requirements of— (i) ASTM International Standard D7566; or (ii) the co-processing provisions of ASTM International Standard D1655, Annex A1 (or such successor standard); (C) is derived from biomass (in a similar manner as such term is defined in section 45K(c)(3) of the Internal Revenue Code of 1986), waste streams, renewable energy sources, or gaseous carbon oxides; (D) is not derived from palm fatty acid distillates; and (E) achieves at least a 50 percent lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel, as determined by a test that shows— (i) the fuel production pathway achieves at least a 50 percent reduction of the aggregate attributional core lifecycle emissions and the induced land use change values under a lifecycle methodology for sustainable aviation fuels similar to that adopted by the International Civil Aviation Organization with the agreement of the United States; or (ii) the fuel production pathway achieves at least a 50 percent reduction of the aggregate attributional core lifecycle greenhouse gas emissions values and the induced land-use change values under another methodology that the Secretary determines is— (I) reflective of the latest scientific understanding of lifecycle greenhouse gas emissions; and (II) as stringent as the requirement under clause (i). 110008. Assistance to update and enforce hazard resistant codes and standards (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $145,500,000, to remain available until expended, to the Administrator of the Federal Emergency Management Agency for the Building Resilient Infrastructure and Communities Program for activities and grants that provide technical assistance and capacity building, for which the Federal cost share shall be 100 percent, to State, local, Indian Tribal, territorial, or the District of Columbia governments for establishing, implementing, and carrying out enforcement activities of the latest published editions of relevant performance-based and consensus-based codes, specifications, and standards, including amendments made by State, local, Indian Tribal, territorial, or the District of Columbia governments during the adoption process, that incorporate— (1) the latest hazard-resistant designs; and (2) the latest requirements for the maintenance and inspection of existing buildings to address hazard risk. (b) Administration In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise available, $4,500,000 to the Administrator of the Federal Emergency Management Agency, to remain available until expended, for administrative expenses of carrying out this section. 110009. Economic Development Administration (a) Economic development assistance for regional economic growth clusters In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,360,000,000, to remain available until September 30, 2031, to the Secretary of Commerce (referred to in this section as the Secretary ) for grants under section 209 (except for assistance authorized by section 209(c)(1)) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3149 ) to develop regional economic growth clusters, including grants for technical assistance, planning, and predevelopment activities, subject to the condition that sections 204 and 301 of such Act (42 U.S.C. 3144 and 3161) shall not apply to grants made with amounts made available under this subsection. (b) Recompete grants for persistently distressed communities (1) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,200,000,000, to remain available until September 30, 2031, to the Secretary of Commerce for economic adjustment assistance as authorized by section 209 (except for assistance authorized by section 209(c)(1)) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3149 ) to provide grants to eligible recipients (as defined in section 3 of such Act) to alleviate economic distress and support long-term comprehensive economic development and job creation in persistently distressed local labor markets and local communities, except that sections 204 and 301 of such Act (42 U.S.C. 3144 and 3161) shall be inapplicable to such grants. (2) Recompete plan As a condition of receipt of a grant described under paragraph (1), an eligible recipient shall submit a comprehensive 10-year economic development plan for approval by the Secretary that includes— (A) proposed programs and activities to be carried out with a grant awarded under this subsection to address the economic challenges of the local labor market or local community in a manner that promotes long-term, sustained economic growth, quality job creation, and local prime-age employment growth; (B) projected costs, annual expenditures, and a proposed grant disbursement schedule; and (C) other local economic information and periodic benchmarking criteria as the Secretary determines appropriate. (3) Maximum award amount In determining the maximum amount of a grant that may be awarded under paragraph (1) for the purposes of implementing and carrying out the programs and activities identified in an approved recompete plan described in paragraph (2), the Secretary shall use the product obtained by multiplying— (A) the difference in the prime-age employment rate between the United States and the local labor market or local community; (B) the prime-age population of the local labor market or local community; and (C) either— (i) $70,585 for local labor markets with a prime-age employment rate not less than 2.5 percent below the United States; or (ii) $53,600 for local communities with a prime-age employment rate not less than 5 percent below the United States. (4) Definitions In this subsection: (A) Local labor market The term local labor market means any of the following areas that contains 1 or more recipients eligible under paragraph (1): (i) A metropolitan statistical area or micropolitan statistical area, excluding any area described in clause (iii). (ii) A commuting zone, excluding any areas described in clauses (i) and (iii). (iii) Tribal land subject to the jurisdiction of an Indian Tribe. (B) Local community The term local community means the area served by a unit of general local government that is located within, but does not cover the entire area of, a local labor market that does not meet the criteria described in paragraph (3)(C)(i). (c) Economic adjustment assistance for energy and industrial transition communities In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $240,000,000, to remain available until September 30, 2027, to the Secretary of Commerce for economic adjustment assistance as authorized by section 209 (except for assistance authorized by section 209(c)(1)) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3149 ) to provide assistance, including grants for technical assistance, planning, and predevelopment activities, to energy and industrial transition communities, including oil, gas, coal, nuclear, and biomass transition communities, and manufacturing transition communities. (d) Economic adjustment assistance for technical assistance, project predevelopment, and capacity building In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $240,000,000, to remain available until September 30, 2027, to the Secretary of Commerce for economic adjustment assistance as authorized by section 209 (except for assistance authorized by section 209(c)(1)) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3149 ) to provide grants for technical assistance, project predevelopment, and capacity building activities, including activities relating to the writing of grant applications (consistent with section 213 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3153 )) and stipends to local community organizations for planning participation, community outreach and engagement activities, subject to the conditions that— (1) sections 204 and 301 of such Act shall not apply to grants made with amounts made available under this subsection; and (2) not less than 50 percent of the amounts made available under this subsection shall be for activities that are carried out in underserved communities. (e) Administration In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $210,000,000, to remain available until September 30, 2031, for the administrative expenses of carrying out this section. 110010. Assistance for Federal buildings In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2031, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, for measures necessary to convert facilities of the Administrator of General Services to high-performance green buildings (as defined in section 401 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17061 )). 110011. Climate resilient Coast Guard infrastructure In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $650,000,000, to remain available until September 30, 2031, for the acquisition, design, and construction of new, or replacement of existing, climate resilient facilities, including personnel readiness facilities such as family support services facilities, that are threatened by or have been impacted by climate change, as authorized under sections 504(e) and 1101(b)(1) of title 14, United States Code. 110012. Great Lakes icebreaker acquisition (a) In general In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $350,000,000, to remain available until September 30, 2031, for acquisition, design, and construction of a Great Lakes heavy icebreaker, as authorized under section 8107 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ). (b) Limitation The funds made available under this section are subject to the condition that the Coast Guard shall not— (1) enter into an agreement involving funds made available under subsection (a) if such agreement— (A) is for a term extending beyond September 30, 2031; or (B) involves any payment that could be made or funds disbursed using amounts made available under subsection (a) after September 30, 2031; or (2) use any other funds available to the Coast Guard to satisfy obligations initially made under subsection (a). 110013. Port infrastructure and supply chain resilience (a) In general In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2026, to the Maritime Administration for the purposes of making grants for projects to support supply chain resilience, reduction in port congestion, and the development of offshore wind through the program under section 50302(c) of title 46, United States Code. (b) Limitations The funds made available under this section are subject to the condition that the Secretary of Transportation shall not— (1) enter into an agreement involving funds made available under subsection (a) if such agreement— (A) is for a term extending beyond September 30, 2031; or (B) involves any payment that could be made or funds disbursed using amounts made available under subsection (a) after September 30, 2031; or (2) use any other funds available to the Secretary to satisfy obligations initially made under subsection (a). 110014. Alternative water source project grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $125,000,000, to remain available until expended, for carrying out section 220 of the Federal Water Pollution Control Act ( 33 U.S.C. 1300 ), in accordance with subsection (b), which funds may be used to make grants under such section on the condition that— (1) a project carried out using such funds shall, to the maximum extent practicable, maximize the avoidance, minimization, or mitigation of climate change impacts on, and of, any constructed part of the project (including through the implementation of technologies to recover and reuse energy produced in the treatment of wastewater); and (2) all of the iron and steel used in the project are produced in the United States in accordance with section 608 of such Act ( 33 U.S.C. 1388 ). (b) Limitations For purposes of subsection (a)— (1) the limitation in section 220(d)(1) of the Federal Water Pollution Control Act (as in effect on September 1, 2021), as it applies to the receipt of planning or design funds, shall not apply with respect to eligibility for a grant under this section; and (2) the requirements of sections 220(d)(2) and (e) of such Act (as in effect on September 1, 2021) shall not apply to the making of a grant under this section. (c) Administrative costs Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve 4 percent for the administrative costs of carrying out this section. 110015. Sewer overflow and stormwater reuse municipal grants (a) General assistance In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for carrying out section 221 of the Federal Water Pollution Control Act ( 33 U.S.C. 1301 ), which funds may be used to make grants under such section on the condition that any activity carried out using such funds shall, to the maximum extent practicable, maximize the avoidance, minimization, or mitigation of climate change impacts on, and of, any constructed part of the activity (including through the implementation of technologies to recover and reuse energy produced in the treatment of wastewater). (b) Financially distressed communities (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,350,000,000, to remain available until expended, for carrying out section 221 of the Federal Water Pollution Control Act ( 33 U.S.C. 1301 ), which funds may be used to make grants under such section to a financially distressed community (as defined in such section), or an Indian tribe or other entity described in section 518(c)(3) of such Act, on the condition that any activity carried out using such funds shall, to the maximum extent practicable, maximize the avoidance, minimization, or mitigation of climate change impacts on, and of, any constructed part of the activity (including through the implementation of technologies to recover and reuse energy produced in the treatment of wastewater). (2) Limitation In carrying out paragraph (1), the Administrator of the Environmental Protection Agency may not require a financially distressed community, Indian tribe, or entity receiving a grant pursuant to this subsection to provide, as a condition of eligibility to receive such grant, a share of the cost of the activity for which the grant was made. (c) Administrative costs Of the amounts made available under each of subsections (a) and (b), the Administrator of the Environmental Protection Agency shall reserve 4 percent for the administrative costs of carrying out this section. 110016. Individual household decentralized wastewater treatment system grants (a) Appropriation In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended— (1) $75,000,000 to make grants to States, municipalities, and nonprofit entities under the Federal Water Pollution Control Act for the construction, repair, or replacement of individual household decentralized wastewater treatment systems of eligible individuals (as such term is defined in section 603(j) of the Federal Water Pollution Control Act ( 33 U.S.C. 1383(j) )); and (2) $75,000,000 to make grants to States, municipalities, and nonprofit entities under such Act for the construction, repair, or replacement of individual household decentralized wastewater treatment systems of eligible individuals (as so defined) residing in households that are not connected to a system or technology designed to treat domestic sewage, including eligible individuals using household cesspools. (b) Administrative costs Of the amounts made available under subsection (a), the Administrator of the Environmental Protection Agency shall reserve 7 percent for the administrative costs of carrying out this section. 110017. Disaster relief The Administrator of the Federal Emergency Management Agency may provide financial assistance through September 30, 2026, pursuant to section 203(h), 404(a), and 406(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5133(h) ; 42 U.S.C. 5170c(a) ; 42 U.S.C. 5172(b) ) for— (1) costs associated with low-carbon materials; and (2) incentives that encourage low-carbon and net-zero energy projects, which may include an increase in the Federal cost share. 110018. Environmental review implementation funds (a) In general Chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 179. Environmental review implementation funds (a) Establishment In addition to amounts otherwise available, for fiscal year 2022, there is appropriated to the Administrator, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, for the purpose of facilitating the development and review of documents for the environmental review process for proposed projects, including through— (1) the provision of guidance, technical assistance, templates, training, or tools to facilitate an efficient and effective environmental review process for surface transportation projects, including any administrative expenses of the Federal Highway Administration to conduct such activities; and (2) providing funds made available under this subsection to eligible entities— (A) to build capacity of such eligible entities and facilitate the environmental review process for proposed projects, including— (i) defining the scope or study areas; (ii) identifying impacts, mitigation measures, and reasonable alternatives; (iii) preparing planning and environmental studies and other documents prior to and during the environmental review process, for potential use in the environmental review process in accordance with applicable statutes and regulations; (iv) conducting public engagement activities; and (v) carrying out other activities, including permitting activities, as the Administrator determines to be appropriate, to support the timely completion of an environmental review process required for a proposed project; and (B) for administrative expenses of the eligible entity to conduct any of the activities described in subparagraph (A). (b) Cost share (1) In general The Federal share of the cost of an activity carried out under this section by an eligible entity shall be not more than 80 percent. (2) Source of funds The non-Federal share of the cost of an activity carried out under this section by an eligible entity may be satisfied using funds made available to the eligible entity under any other Federal, State, or local grant program, including funds made available to the eligible entity under this title or administered by the U.S. Department of Transportation. (c) Definitions In this section: (1) Administrator The term Administrator means the Administrator of the Federal Highway Administration. (2) Eligible entity The term eligible entity means— (A) a State; (B) a unit of local government; (C) a political subdivision of a State; (D) a territory of the United States; (E) an entity described in section 207(m)(1)(E); (F) a recipient of funds under section 203; or (G) a metropolitan planning organization (as defined in section 134(b)(2)). (3) Environmental review process The term environmental review process has the meaning given the term in section 139(a)(3). (4) Proposed project The term proposed project means a surface transportation project for which an environmental review process is required. . (b) Clerical amendment The analysis for chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 179. Environmental review implementation funds. . 110019. Low-carbon transportation materials grants (a) In general Chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 180. Low-carbon transportation materials grants (a) Federal highway administration appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $900,000,000, to remain available until September 30, 2026, to the Administrator to reimburse eligible recipients for the incremental costs of using low-embodied carbon construction materials and products in projects and for the administrative costs of carrying out this section. (b) Reimbursement of incremental costs; incentives (1) Reimbursement of incremental costs (A) In general The Administrator shall, subject to the availability of funds, reimburse eligible recipients that use low-embodied carbon construction materials and products on a project funded under this title. (B) Amount The amount of reimbursement under subparagraph (A) shall be the incrementally higher cost of using such materials relative to the cost of using traditional materials, as determined by the eligible recipient and verified by the Administrator. (2) Incentive If a reimbursement is provided under paragraph (1), the total Federal share payable for the project for which the reimbursement is provided shall be up to 100 percent. (3) Limitations (A) In general The Administrator shall only provide a reimbursement under paragraph (1) for a project on a— (i) Federal-aid highway; (ii) tribal transportation facility; (iii) Federal lands transportation facility; or (iv) Federal lands access transportation facility. (B) Other restrictions Amounts made available under this section shall not be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways. (C) Single occupant passenger vehicles Funds made available under this section shall not be used for projects that result in additional through travel lanes for single occupant passenger vehicles. (4) Materials identification The Administrator shall review the low-embodied carbon construction materials and products identified by the Administrator of the Environmental Protection Agency and shall identify low-embodied carbon construction materials and products— (A) appropriate for use in projects eligible under this title; and (B) eligible for reimbursement under this section. (c) Definitions In this section: (1) Administrator The term Administrator means the Administrator of the Federal Highway Administration. (2) Eligible recipient The term eligible recipient means— (A) a State; (B) a unit of local government; (C) a political subdivision of a State; (D) a territory of the United States; (E) an entity described in section 207(m)(1)(E)); (F) a recipient of funds under section 203; (G) a metropolitan planning organization (as defined in section 134(b)(2)); or (H) a special purpose district or public authority with a transportation function. (3) Embodied carbon The term embodied carbon means the quantity of greenhouse gas emissions associated with all relevant stages of production of a material or product, measured in kilograms of carbon dioxide-equivalent per unit of such material or product. (4) Low-embodied carbon construction materials and products The term low-embodied carbon construction materials and products means materials and products identified by the Administrator of the Environmental Protection Agency as having substantially lower levels of embodied carbon compared to estimated industry averages of similar products or materials. . (b) Clerical amendment The analysis for chapter 1 of title 23, United States Code, is further amended by adding at the end the following: 180. Low-carbon transportation materials grants. . 110020. Southwest Border Regional Commission In addition to amounts otherwise available, there is appropriated to the Southwest Border Regional Commission for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $33,000,000, to remain available until September 30, 2031, to carry out activities authorized by subtitle V of title 40, United States Code. XII Committee on Veterans Affairs 120001. Department of Veterans Affairs infrastructure improvements In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,317,000,000, to remain available until September 30, 2031, for facilities under the jurisdiction of, or for the use of, the Department of Veterans Affairs to carry out sections 2400, 2403, 2404, 2406, 2407, 2412, 8101, 8102 (except for section 8102(d)), 8103 (except for super construction projects as defined in section 8103(e)(3)), 8104 through 8110, 8122, and 8161 through 8169 of title 38, United States Code, taking into consideration the integration of climate resiliency into infrastructure as well as the needs of underserved areas and underserved veteran populations. 120002. Modifications to enhanced-use lease authority of department of veterans affairs (a) Modifications to authority Paragraph (2) of section 8162(a) of title 38, United States Code, is amended to read as follows: (2) (A) The Secretary may enter into an enhanced-use lease on or after the date of the enactment of this paragraph only if the Secretary determines— (i) that the lease will not be inconsistent with, and will not adversely affect— (I) the mission of the Department; or (II) the operation of facilities, programs, and services of the Department in the local area; and (ii) that— (I) the lease will enhance the use of the leased property by directly or indirectly benefitting veterans; or (II) the leased property will provide supportive housing. (B) The Secretary shall give priority to enhanced-use leases that, on the leased property— (i) provide supportive housing for veterans; (ii) provide direct services or benefits targeted to veterans; or (iii) provide services or benefits that indirectly support veterans. . (b) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $455,000,000 for the Department of Veterans Affairs, to remain available until expended, to enter into enhanced-use leases pursuant to section 8162 of title 38, United States Code, as amended by this section. (c) Modification of sunset Section 8169 of such title is amended by striking December 31, 2023 and inserting September 30, 2026 . 120003. Major medical facility leases of the Department of Veterans Affairs (a) Authority to enter into major medical facility leases Paragraph (2) of subsection (a) of section 8104 of title 38, United States Code, is amended— (1) by striking No funds and inserting (A) No funds ; (2) by striking or any major medical facility lease ; (3) by striking or lease ; and (4) by adding at the end the following new subparagraph: (B) Funds may be appropriated for a fiscal year, and the Secretary may obligate and expend funds, including for advance planning and design, for any major medical facility lease. . (b) Modification of definition of major medical facility lease Subparagraph (B) of paragraph (3) of such subsection is amended to read as follows: (B) The term major medical facility lease — (i) means a lease for space for use as a new medical facility approved through the General Services Administration under section 3307(a)(2) of title 40 at an average annual rent equal to or greater than the dollar threshold described in such section, which shall be subject to annual adjustment in accordance with section 3307(h) of such title; and (ii) does not include a lease for space for use as a shared Federal medical facility for which the Department’s estimated share of the lease costs does not exceed such dollar threshold. . (c) Interim leasing actions Such section is further amended by adding at the end the following new subsection: (i) (1) The Secretary may carry out interim leasing actions for major medical facility leases (as defined in subsection (a)(3)(B)). (2) In this subsection, the term interim leasing actions has the meaning given that term by the Administrator of the General Services Administration. . (d) Applicability The amendments made by this section shall apply with respect to a major medical facility lease of the Department of Veterans Affairs that has not been specifically authorized by law on or before the date of the enactment of this Act and is included as part of the annual budget submission of the Department of Veterans Affairs for fiscal year 2022, 2023, or 2024. (e) Purchase Options The Secretary of Veterans Affairs may obligate and expend funds to exercise a purchase option included in any major medical facility lease described in subsection (d). (f) Appropriation In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,805,000,000, to remain available until expended, for major medical facility leases pursuant to subchapter I of chapter 81 of title 38, United States Code, as amended by this section, as requested in the annual budget submission of the Department of Veterans Affairs for fiscal year 2022, 2023, or 2024. (g) Termination and restoration (1) In general Effective upon the date of execution of the final lease award for leases described in subsection (d), subsections (a) through (e) of this section and the amendments made by those subsections are repealed and any provision of law amended by those subsections is restored as if those subsections had not been enacted into law. (2) Notification The Secretary of Veterans Affairs shall submit to Congress and the Law Revision Counsel of the House of Representatives written notification of the date specified in paragraph (1) not later than 30 days before such date. 120004. Increase in number of health professions residency positions at Department of Veterans Affairs medical facilities (a) Increase In carrying out section 7302(a)(1) of title 38, United States Code, during the seven-year period beginning on the day that is one year after the date of the enactment of this Act, the Secretary of Veterans Affairs shall increase the number of health professions residency positions at medical facilities of the Department of Veterans Affairs by not more than 500 positions (which shall be allocated among occupations included in the most current determination published in the Federal Register pursuant to section 7412(a) of such title, or allocated pursuant to a prioritization by the Secretary of occupations in primary care, mental health care, and any other health professions occupation the Secretary determines appropriate) through the establishment of such new positions at— (1) medical facilities where the Secretary established such positions pursuant to section 301(b)(2) of the Veterans Access, Choice, and Accountability Act of 2014 ( Public Law 113–146 ; 38 U.S.C. 7302 note); or (2) any medical facility— (A) the director of which expresses an interest in establishing or expanding a health professions residency program at the medical facility; or (B) that is located in a community that has a high concentration of veterans or is experiencing a shortage of health care professionals. (b) Appropriations In addition to amounts otherwise available, there is appropriated to the Department of Veterans Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $268,000,000, to remain available until September 30, 2029, for the purpose of carrying out this section. 120005. Veteran records scanning In addition to amounts otherwise available, there is appropriated to the Veterans Benefits Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2023, for costs of record scanning and claims processing, to carry out sections 7701 and 7703 of title 38, United States Code. 120006. Funding for Department Of Veterans Affairs Office of Inspector General In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the Department of Veterans Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, for audits, investigations, and other oversight of projects and activities carried out with funds made available to the Department of Veterans Affairs. XIII Committee on Ways and Means A Universal Comprehensive Paid Leave 130001. Comprehensive Paid Leave The Social Security Act is amended by adding at the end the following: XXII Comprehensive Paid Leave Benefits 2201. Table of contents The table of contents for this title is as follows: Sec. 2201. Table of contents. Sec. 2202. Entitlement to comprehensive paid leave benefits. Sec. 2203. Benefit amount. Sec. 2204. Benefit determination and payment. Sec. 2205. Appeals. Sec. 2206. Accurate payment. Sec. 2207. Funding for benefit payments, grants, and program administration. Sec. 2208. Funding for State administration option for legacy States. Sec. 2209. Reimbursement option for employer-sponsored comprehensive paid leave benefits. Sec. 2210. Definitions. 2202. Entitlement to comprehensive paid leave benefits (a) In general Every individual who— (1) has filed an application for a comprehensive paid leave benefit in accordance with section 2204(a); (2) has, or anticipates having, at least 4 caregiving hours in a week ending at any time during the period that begins 90 days before the date on which such application is filed or not later than 90 days after such date; (3) has wages or self-employment income at any time during the period— (A) beginning with the most recent calendar quarter that ends at least 4 months prior to the beginning of the individual’s benefit period specified in subsection (b); and (B) ending with the month before the month in which such benefit period begins; and (4) has at least the specified amount of wages and self-employment income during the most recent 8-calendar quarter period that ends at least 4 months prior to the beginning of the individual’s benefit period specified in subsection (b), shall be entitled to such a benefit for each month during such benefit period, except as otherwise provided in this section. For purposes of paragraph (4), the specified amount for individuals whose benefit period begins in calendar year 2024 shall be $2,000, and the specified amount for individuals whose benefit period begins in any calendar year after 2024 shall equal the specified amount applicable for the calendar year preceding such calendar year, or, if larger, the product of $2,000 and the quotient obtained by dividing the national average wage index (as defined in section 2210) for the second calendar year preceding such calendar year by the national average wage index (as so defined) for 2022. (b) Benefit period (1) In general Except as provided in paragraph (2), the benefit period specified in this subsection is the period beginning with the month in which ends the 1st week in which the individual has at least 4 caregiving hours and otherwise would meet the criteria specified in paragraphs (1), (2), (3), and (4) of subsection (a) and ending at the end of the month in which ends the 52nd week ending during such period. (2) Retroactive benefits In the case of an application for benefits under this section with respect to an individual who has at least 4 caregiving hours in a week at any time during the period that begins 90 days before the date on which such application is filed, the benefit period specified in this subsection is the period beginning with the later of— (A) the month in which ends the 1st week in which the individual has at least 4 caregiving hours; or (B) the 1st month that begins during such 90-day period, and ending at the end of the month in which ends the 52nd week ending during such period. (3) Limitation Notwithstanding paragraphs (1) and (2), no benefit period under this title may begin with any month beginning before January 2024. (c) Caregiving hours (1) Caregiving hour defined For purposes of this title, the term caregiving hour means a 1-hour period during which the individual engaged in qualified caregiving (determined on the basis of information filed with the Commissioner pursuant to subsection (c) of section 2204). (2) Qualified caregiving (A) In general For purposes of this subsection, the term qualified caregiving means any activity engaged in by an individual in lieu of work (during the hours that constitute the individual’s regular workweek (within the meaning of section 2203(d))), other than for monetary compensation, for a qualifying reason (as defined in section 2210). (B) No monetary compensation permitted For purposes of subparagraph (A), an activity shall be considered to be engaged in by an individual for monetary compensation if, for the time during which the individual was so engaged, the individual received— (i) wages from an employer; (ii) self-employment income; or (iii) any form of cash payment made by an employer for purposes of providing the individual with paid vacation, paid sick leave, or any other form of paid time off (but not including any such form of cash payment to the extent that the sum of such cash payment and any comprehensive paid leave benefits under section 2202 does not exceed 100 percent of the individual’s regular rate of pay (as determined under section 7(e) of the Fair Labor Standards Act of 1938)). (C) Treatment of individuals covered by employer-sponsored comprehensive paid leave program For purposes of subparagraph (A), an activity engaged in by an individual shall not be considered to be engaged in in lieu of work if, for the time during which the individual was so engaged, the individual is taking leave from covered employment under an employer-sponsored program (as defined in section 2209(g)). (D) Treatment of individuals covered by legacy State comprehensive paid leave program For purposes of subparagraph (A), an activity engaged in by an individual shall not be considered to be engaged in in lieu of work if, for the time during which the individual was so engaged, the individual is taking leave from covered employment under the law of a legacy State (as defined in section 2208(c)). In the case of an individual who is no longer employed, such individual shall be treated, for purposes of the preceding sentence, as taking leave from covered employment under the law of a legacy State (as so defined) with respect to the portion of the time during which the individual was so engaged corresponding to the share of the individual’s regular workweek (within the meaning of 2203(d)) that was in covered employment under the law of a legacy State (as so defined). (d) No caregiving hours in individual’s week of death No caregiving hours of an individual may be credited under section 2203(c) to the week during which the individual dies. (e) Disqualification An individual who has been found to have used false statements or representation to secure benefits under this section shall be ineligible for benefits under this section for a 5-year period following the date of such finding. 2203. Benefit amount (a) In general The amount of the benefit to which an individual is entitled under section 2202 for a month shall be an amount equal to the sum of the weekly benefit amounts for each week ending during such month. The weekly benefit amount of an individual for a week shall be equal to the product of the individual’s weekly benefit rate (as determined under subsection (b)) multiplied by a fraction— (1) the numerator of which is the number of caregiving hours of the individual credited to such week (as determined in subsection (c)); and (2) the denominator of which is the number of hours in a regular workweek of the individual (as determined in subsection (d)). (b) Weekly benefit rate (1) In general For purposes of this section, an individual’s weekly benefit rate shall be an amount equal to the sum of— (A) 90.138 percent of the individual’s average weekly earnings to the extent that such earnings do not exceed the amount established for purposes of this subparagraph by paragraph (2); (B) 73.171 percent of the individual’s average weekly earnings to the extent that such earnings exceed the amount established for purposes of subparagraph (A) but do not exceed the amount established for purposes of this subparagraph by paragraph (2); and (C) 53.023 percent of the individual’s average weekly earnings to the extent that such earnings exceed the amount established for purposes of subparagraph (B) but do not exceed the amount established for purposes of this subparagraph by paragraph (2). (2) Amounts established (A) Initial amounts For individuals whose benefit period under this title begins in calendar year 2024, the amount established for purposes of subparagraphs (A), (B), and (C) of paragraph (1) shall be 1/52 of $15,080, $34,248, and $62,000, respectively. (B) Wage indexing For individuals whose benefit period under this title begins in any calendar year after 2024, each of the amounts so established shall equal the corresponding amount established for the calendar year preceding such calendar year, or, if larger, the product of the corresponding amount established with respect to the calendar year 2024 and the quotient obtained by dividing— (i) the national average wage index (as defined in section 2210) for the second calendar year preceding such calendar year, by (ii) the national average wage index (as so defined) for calendar year 2022. (C) Rounding Each amount established under subparagraph (B) for any calendar year shall be rounded to the nearest $1, except that any amount so established which is a multiple of $0.50 but not of $1 shall be rounded to the next higher $1. (3) Average weekly earnings For purposes of this subsection, an individual’s average weekly earnings, as calculated by the Commissioner, shall be equal to the quotient obtained by dividing— (A) the total of the wages and self-employment income received by the individual during the 8-calendar quarter period described in section 2202(a)(4); by (B) 104. (4) Evidence of earnings For purposes of determining the wages and self-employment income of an individual with respect to an application for benefits under section 2202, the Commissioner shall make such determination on the basis of data provided to the Commissioner from the National Directory of New Hires pursuant to section 453(j)(12) and self-employment income information provided to the Commissioner pursuant to section 6103(l)(23) of the Internal Revenue Code of 1986, except that the Commissioner shall also consider any more recent or additional evidence of wages or self-employment income the individual chooses to additionally submit. (c) Crediting of caregiving hours to a week The number of caregiving hours of an individual credited to a week as determined under this subsection shall equal the number of caregiving hours of the individual occurring during such week, except that— (1) such number may not exceed the number of hours in a regular workweek of the individual (as determined in subsection (d)); (2) no caregiving hours may be credited to a week in which fewer than 4 caregiving hours of the individual occur; (3) no caregiving hours of the individual may be credited to the individual’s waiting period, consisting of the first week during an individual’s benefit period in which at least 4 caregiving hours occur (regardless of whether the individual received any form of cash payment for the purpose of providing the individual with paid vacation, paid sick leave, or any other form of paid time off from the individual’s employer during such week in accordance with section 2202(c)(2)(B)(iii)); and (4) the total number of caregiving hours credited to weeks during the individual’s benefit period may not exceed the product of 4 multiplied by the number of hours in a regular workweek of the individual (as so determined). (d) Number of hours in a regular workweek For purposes of this section, the number of hours in a regular workweek of an individual shall be the number of hours that the individual regularly works in a week for all employers or as a self-employed individual (or regularly worked in the case of an individual who is no longer working or whose total weekly hours of work have been reduced) during the month before the individual’s benefit period begins (or prior to such month, if applicable in the case of an individual who is no longer working or whose total weekly hours of work have been reduced). (e) Submission of required information Any person may submit applicable paid leave information with respect to an individual, including, as applicable, the individual’s representative, the individual’s employer, or any relevant authority identified under section 2204(b)(2). For purposes of this subsection, the term applicable paid leave information means, with respect to an individual, any information submitted to the Commissioner with respect to the comprehensive paid leave benefits of the individual, including any initial application, periodic benefit claim report, appeal, and any other information submitted in support of such application, report, or appeal. 2204. Benefit determination and payment (a) In general An individual seeking benefits under section 2202 shall file an application with the Commissioner containing at least the information described in subsection (b). Any information contained in an application for benefits under section 2202, or in a periodic benefit claim report filed with respect to such benefits, shall be presumed to be true and accurate, unless the Commissioner demonstrates by a preponderance of the evidence that information contained in the application or periodic benefit claim report is false, except that the Commissioner shall mandate procedures to validate the identity of such individual. (b) Required contents of initial application An application for a comprehensive paid leave benefit filed by an individual shall include— (1) an attestation that the individual has, or anticipates having, at least 4 caregiving hours in a week ending at any time during the period that begins 90 days before the date on which such application is filed or not later than 90 days after such date; (2) at the option of the Commissioner, a certification, issued by a relevant authority identified under regulations issued by the Commissioner, that contains such information as the Commissioner shall specify in regulations as necessary to affirm the circumstances giving rise to the need for such caregiving hours, which shall be no more than is required for reasonable documentation (as defined in section 2210); (3) an attestation from the individual that notice of the individual’s need to be absent from work during such caregiving hours has been provided, not later than 7 days after such need arises, to the individual’s employer (except in cases of hardship or other extenuating circumstances or if the individual does not have (or no longer has) an employer); (4) pay stubs or such other evidence as the individual may provide demonstrating the individual’s wages or self-employment income during the period described in section 2202(a)(3), except that the Commissioner may waive this requirement in any case in which such evidence is otherwise available to the Commissioner; and (5) an attestation from the individual stating the number of hours in a regular workweek of the individual (within the meaning of section 2203(d)). In the case of an individual who applies for a comprehensive paid leave benefit in the anticipation of caregiving hours occurring after the date of application, the certification described in paragraph (2), the attestations described in paragraphs (3) and (5), and the evidence described in paragraph (4) may be provided after the 1st week in which at least 4 such caregiving hours occur. (c) Periodic benefit claim report (1) In general Except as provided in paragraph (2), not later than 60 days (or such longer period as may be provided in any case in which the Commissioner determines that good cause exists for an extension) after the end of each month during the benefit period of an individual entitled to benefits under section 2202, the individual shall file a periodic benefit claim report with the Commissioner. Such periodic benefit claim report shall specify the caregiving hours of the individual that occurred during each week that ended in such month. No periodic benefit claim report shall be required with respect to any week in which fewer than 4 caregiving hours occurred. (2) Retroactive applications In the case of an application filed by an individual for a comprehensive paid leave benefit with a benefit period that begins, in accordance with section 2202(b)(2), with a month that ends before the date on which such application is filed, the individual may include with such application the information described in the second sentence of paragraph (1) with respect to each week in the benefit period that ends before such date. (d) Determinations (1) Initial application The Commissioner shall determine, with respect to an individual applying for benefits under section 2202, the initial entitlement and the benefit period in accordance with such section, and the weekly benefit rate, average weekly earnings, and the number of hours in a regular workweek in accordance with section 2203. (2) Monthly benefit determinations On the basis of the information filed with the Commissioner pursuant to subsection (c), the Commissioner shall determine, with respect to an individual for each week ending in a month, the number of caregiving hours to be credited to such week in accordance with section 2203(c). (3) Changing circumstances If more than one type of circumstance gives rise to the need for caregiving hours during the individual’s benefit period, such caregiving hours shall be credited to weeks within the benefit period in accordance with section 2203(c) regardless of circumstance. (e) Certification of payment Not later than 15 days after the making of a determination under subsection (d)(2) with respect to the number of caregiving hours of an individual to be credited to weeks ending in a month, the Commissioner shall certify payment of the comprehensive paid leave benefit for such month to be made to such individual, and the Secretary of the Treasury shall make such payment in accordance with the certification of the Commissioner of Social Security. (f) Regulations and procedures The Commissioner shall have full power and authority to make rules and regulation, including interim final regulations, and to establish procedures, not inconsistent with this title, which are necessary and appropriate to carry out this title. 2205. Appeals (a) In general An individual shall have the right— (1) to appeal to the Commissioner any determination made with respect to— (A) comprehensive paid leave benefits under section 2202; and (B) comprehensive paid leave benefits under an employer-sponsored program described in section 2209 whose appeal to the employer (or administering entity) pursuant to subsection (b)(1)(B)(iii)(I) of such section results in a determination unfavorable to the individual; and (2) to have the appeal heard in a timely manner by a decisionmaker who was not the initial decisionmaker and who reviews any additional evidence submitted. (b) Treatment of determinations on appeal Any determination by the Commissioner on an appeal under this section shall be a final determination. 2206. Accurate payment (a) Underpayments and overpayments (1) In general Whenever the Commissioner determines that more or less than the correct amount of payment has been made to any individual under this title, the Commissioner shall promptly notify the individual of such determination and inform the individual of the right to appeal such determination in accordance with the provisions of section 2205. Proper adjustment or recovery shall be made as follows: (A) Underpayments With respect to payment to an individual of less than the correct amount, the Commissioner shall promptly pay the balance of the amount due to such underpaid individual. (B) Overpayments (i) In general With respect to payment to an individual of more than the correct amount, the Commissioner shall decrease any payment for a month under section 2202 to which such overpaid individual is entitled (except that no such payment may be decreased in any manner that results in weekly benefit amounts for each week ending during such month that are less than the lower of the weekly benefit amounts for each such week as determined for such individual under section 2203(a) or the amount specified in clause (ii) with respect to such weekly benefit amounts of the individual), or shall require such overpaid individual to refund the amount in excess of the correct amount, or shall apply any combination of the foregoing. (ii) Limitation on recovery (I) Amount specified The amount specified in this clause with respect to a weekly benefit amount of an individual for a week is an amount equal to the weekly benefit amount that would be determined for the individual for such week under section 2203(a) if the individual’s weekly benefit rate (as determined under section 2203(b)) were equal to the applicable dollar amount as determined under subclause (II). (II) Applicable dollar amount For purposes of subclause (I), the applicable dollar amount is— (aa) with respect to a weekly benefit amount determined for a week ending in a month in calendar year 2024, $315; and (bb) with respect to a weekly benefit amount determined for a week ending in a month in any calendar year after 2024, the corresponding amount established with respect to a weekly benefit amount determined for a week ending in a month in the calendar year preceding such calendar year or, if larger, the product of the corresponding amount specified in item (aa) with respect to a weekly benefit amount determined for a week ending in a month in calendar year 2024 multiplied by the quotient obtained by dividing— (AA) the national average wage index (as defined in section 2210) for the second calendar year preceding such calendar year, by (BB) the national average wage index (as so defined) for 2022. (2) Waiver of certain overpayments In any case in which more than the correct amount of payment for comprehensive paid leave benefits under section 2202 has been made, there shall be no adjustment of payments to, or recovery from, any individual who was without fault in connection with the overpayment if such adjustment or recovery would defeat the purpose of this title or would impede efficient or effective administration of this title, or if such individual relied on the receipt or expected payment of comprehensive paid leave benefits under section 2202 to make a financial decision. In considering whether an individual is without fault, the Commissioner shall take into account the individual’s age and any physical impairment or mental impairment (including intellectual disability), limited English proficiency, low levels of literacy skills, educational limitations, and any other circumstances that may render the individual not at fault. (b) Civil monetary penalty (1) In general Any person who knowingly makes a false statement, misrepresents a fact, or omits material information in connection with an application for benefits under section 2202 or a periodic benefit claim report under section 2204 shall be subject to a civil monetary penalty of not more than the amount determined under paragraph (2) for a calendar year for each such statement, misrepresentation, or omission. (2) Amount determined The amount determined under this paragraph for a calendar year shall be the amount that would be in effect for such calendar year if such penalty— (A) had been first established in the amount of $5,000 in calendar year 1994; and (B) had been initially adjusted for inflation in calendar year 2016. (c) Exclusion from participation (1) In general No person or entity who— (A) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in any application for any benefit under this title, (B) at any time knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining rights to any such benefit, (C) having knowledge of the occurrence of any event affecting (i) his initial or continued right to any such benefit, or (ii) the initial or continued right to any such benefit of any other individual in whose behalf he has applied for or is receiving such benefit, conceals or fails to disclose such event with an intent fraudulently to secure such benefit either in a greater amount or quantity than is due or when no such benefit is authorized, (D) having made application to receive any such benefit for the use and benefit of another and having received it, knowingly and willfully converts such benefit or any part thereof to a use other than for the use and benefit of such other person, or (E) conspires to take any action described in any of subparagraphs (A) through (C), may represent, or submit evidence on behalf of, an individual applying for, or receiving, benefits under this title. (2) Effective Date An exclusion under this paragraph shall be effective with respect to services furnished to any individual on or after the effective date of the exclusion. Nothing in this paragraph may be construed to preclude consideration of any medical evidence derived from services provided by a health care provider before the effective date of the exclusion of the health care provider under this subsection. (d) Redetermination of entitlement (1) In general (A) Termination or reversal of benefits The Commissioner shall immediately redetermine the entitlement of an individual to comprehensive paid leave benefits under section 2202 if there is reason to believe that fraud or similar fault was involved in the application of the individual for such benefits. (B) Disregard of certain evidence When redetermining the entitlement, or making an initial determination of entitlement, of an individual under this title, the Commissioner shall disregard any evidence if there is reason to believe that fraud or similar fault was involved in the providing of such evidence. (2) Similar fault described For purposes of paragraph (1), similar fault is involved with respect to a determination if— (A) an incorrect or incomplete statement that is material to the determination is knowingly made; or (B) information that is material to the determination is knowingly concealed. (3) Termination of benefits If, after redetermining pursuant to this subsection the entitlement of an individual to comprehensive paid leave benefits, the Commissioner determines that there is insufficient evidence to support such entitlement, the Commissioner may terminate such entitlement and may treat benefits paid on the basis of such insufficient evidence as overpayments. 2207. Funding for benefit payments, grants, and program administration (a) Funding for benefit payments and grants In addition to amounts otherwise available, there are appropriated, out of any funds in the Treasury not otherwise appropriated, such sums as may be necessary to pay benefits under section 2202 and for grants under sections 2208 and 2209. (b) Funding for program administration (1) In general In addition to amounts otherwise available, there is appropriated, out of any funds in the Treasury not otherwise appropriated, $1,500,000,000 for fiscal year 2022 and $1,590,700,000 for each subsequent fiscal year (subject to paragraph (2)) for timely and accurate administration of all sections of this title, including costs related to necessary customer service, staffing, technology, training, data sharing, identity validation, technical assistance to legacy States under section 2208 and employers or employer-designated third party administrators under section 2209, public education and outreach to potential beneficiaries, and research for the purpose of ensuring full and equitable access to the programs under this title. (2) Indexing to wage growth For each fiscal year after 2024, there shall be substituted for the dollar amount specified in paragraph (1) for such fiscal year an amount equal to the larger of the dollar amount in effect under this subsection for the fiscal year preceding such fiscal year or the product of $1,590,700,000 multiplied by the ratio of— (A) the national average wage index (as defined in section 2210) for the most recent calendar year that ends before the beginning of such preceding fiscal year, to (B) the national average wage index (as so defined) for 2021. (3) No use of title II funds No funds made available for the administration of title II may be used to carry out the paid leave program established under this title. (c) Availability of emergency funding In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for administrative expenses described in subsection (b)(1) during fiscal year 2024 or any subsequent fiscal year, except that such amount shall not be available in any fiscal year unless the Commissioner determines that the number of applications filed during such fiscal year for comprehensive paid leave benefits under section 2202(a) will exceed the number that were anticipated to be filed during such fiscal year (as determined by the Commissioner) by 20 percent or more. 2208. Funding for State administration option for legacy States (a) In general In each calendar year beginning with calendar year 2025, the Commissioner shall make a grant to each State that, for the calendar year preceding such calendar year, was a legacy State and that met the data sharing requirements of subsection (e), in an amount equal to the lesser of— (1) an amount, as estimated by the Commissioner, equal to the total amount of comprehensive paid leave benefits that would have been paid under section 2202 (including the costs to the Commissioner to administer such benefits, not to exceed (for purposes of estimating such total amount under this paragraph) 7 percent of the total amount of such benefits paid) to individuals who received paid family and medical leave benefits under a State law described in paragraph (1) or (3) of subsection (b) during the calendar year preceding such calendar year if the State had not been a legacy State for such preceding calendar year; or (2) an amount equal to the total cost of paid family and medical leave benefits under a State law described in paragraph (1) or (3) of subsection (b) for the calendar year preceding such calendar year, including— (A) any paid family and medical leave benefits provided by an employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan) as described in subsection (d); and (B) the full cost to the State of administering such law (except that such cost may not exceed 7 percent of the total amount of paid family and medical leave benefits paid under such State law). In any case in which, during any calendar year, the Commissioner has reason to believe that a State will be a legacy State and meet the data sharing requirements of subsection (e) for such calendar year, the Commissioner may make estimated payments during such calendar year of the grant which would be paid to such State in the succeeding calendar year, to be adjusted as appropriate in the succeeding calendar year. (b) Legacy State For purposes of this section, the term legacy State for a calendar year means a State with respect to which the Commissioner determines that— (1) the State has enacted, not later than the date of enactment of this title, a State law that provides paid family and medical leave benefits; (2) for any calendar year that begins before the date that is 3 years after the date of enactment of this title, the State certifies to the Commissioner that the State intends to remain a legacy State and meet the data sharing requirements of subsection (e) at least through the first calendar year that begins on or after such date; and (3) for any calendar year that begins on or after such date, a State law of the State provides for a State program to remain in effect throughout such calendar year that provides comprehensive paid family and medical leave benefits (which may be paid directly by the State or, if permitted under such State law, by an employer pursuant to such State law)— (A) for at least 4 full workweeks of leave during each 12-month period to at least all of those individuals in the State who would be eligible for comprehensive paid leave benefits under section 2202 (without regard to section 2202(c)(2)(D)), except that the State shall provide such benefits for leave from employment by the State or any political subdivision thereof, and may elect to provide such benefits for leave from any other governmental employment; (B) at a wage replacement rate that is at least equivalent to the wage replacement rate under the comprehensive paid leave benefit program under section 2202 (without regard to section 2202(c)(2)(D)). (c) Covered employment under the law of a legacy State For purposes of this title, the term covered employment under the law of a legacy State means employment (or self-employment) with respect to which an individual would be eligible to receive paid family and medical benefits under the State law of a State, as described in paragraph (1) or (3) of subsection (b), during any period during which such State is a legacy State. (d) Employer-provided benefits in a legacy State (1) Treatment for purposes of this title Notwithstanding any provision of section 2209, in the case of a State that permits paid family and medical leave benefits to be provided by an employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan) pursuant to a State law described in paragraph (1) or (3) of subsection (b)— (A) such benefits shall be considered, for all purposes under this title, paid family and medical leave benefits under the law of a legacy State; and (B) leave for which such benefits are paid shall be considered, for all such purposes, leave from covered employment under the law of a legacy State. (2) Distribution of grant funds In any case in which paid family and medical leave benefits are provided by one or more employers (whether directly, under a contract with an insurer, or provided through a multiemployer plan) in a legacy State pursuant to a State law described in paragraph (1) or (3) of subsection (b), the State, upon the receipt of any grant amount under subsection (a), may distribute an appropriate share of such grant to each such employer. (e) Data sharing As a condition of receiving a grant under subsection (a) in a calendar year, a State shall enter into an agreement with the Commissioner under which the State shall provide the Commissioner— (1) with information, to be provided periodically as determined by the Commissioner, concerning individuals who received a paid leave benefit under a State law described in paragraph (1) or (3) of subsection (b), including each individual’s name, information to establish the individual’s identity, dates for which such paid leave benefits were paid, the amount of such paid leave benefit, and, to the extent available, such other information concerning such individuals as necessary for the purpose of carrying out this section and section 2202(c)(2)(D); (2) not later than July 1 of such calendar year, the amount described in subsection (a)(2) for the calendar year preceding such calendar year; and (3) such other information as needed to determine compliance with grant requirements. (f) Greater benefits permitted Nothing in this section shall be construed to prohibit a legacy State or an employer providing benefits pursuant to a legacy State law from providing paid family and medical leave benefits that exceed the requirements described in this section. 2209. Reimbursement option for employer-sponsored comprehensive paid leave benefits (a) In general For each calendar year beginning with calendar year 2024, the Commissioner shall make a grant to each employer that is an eligible employer for such calendar year in an amount equal to— (1) in the case of an eligible employer sponsoring a comprehensive paid leave benefit program with respect to which benefits are awarded and paid under a contract with an insurer (or through a multiemployer plan), an amount (not to exceed the employer’s expenditures for such program) equal to the lesser of— (A) 90 percent of the product of— (i) the projected national average cost per individual of providing comprehensive paid leave benefits under section 2202 as determined by the Commissioner for such calendar year under subsection (c)(3) (or, in the case of a calendar year during which the eligible employer sponsored such comprehensive paid leave benefit program for only a fraction of the year, an equal fraction of such projected national average cost); multiplied by (ii) the number of eligible employees (within the meaning of subsection (b)(1)(A) and pro-rated for part-time eligible employees) whose employment is covered employment under the employer-sponsored program (as defined in subsection (g)) for such calendar year (or, in the case of a calendar year during which the eligible employer sponsored such comprehensive paid leave benefit program for only a fraction of the year, for such fraction of the year); and (B) 90 percent of the total premiums paid to the insurer (or contributions paid to the multiemployer plan) by the eligible employer under such contract (or such plan) for such calendar year (or such fraction thereof) for the coverage under such contract (or such plan) of eligible employees of the employer; and (2) in the case of an eligible employer sponsoring a self-insured comprehensive paid leave benefit program with respect to which benefits are awarded and paid directly by the employer (or by a third party administrator on behalf of the employer), an amount equal to 90 percent of— (A) the amount of benefits paid under the program for such calendar year to eligible employees of the employer for up to 4 weeks of leave per eligible employee; or (B) if lesser, the product of the national average weekly benefit amount paid under section 2203(a) during such calendar year multiplied by the number of weeks of leave (up to 4 per eligible employee) paid by the employer for all eligible employees under the program for the calendar year. (b) Eligibility (1) In general For purposes of subsection (a), an eligible employer for a calendar year is an employer (other than the Federal Government or the government of any State (or political subdivision thereof) that is a legacy State for such calendar year under section 2208) that satisfies all of the following requirements: (A) Non-legacy State employees The employer has one or more employees during such calendar year whose employment with such employer is not covered employment under the law of a legacy State (as defined in section 2208(c)) (in this section referred to as eligible employees ). (B) Grant conditions As a condition of the grant, the employer agrees— (i) that, on return from leave under the program described in subparagraph (C)(ii), the eligible employee taking such leave will— (I) be restored by the employer to the position of employment held by the eligible employee when the leave commenced; or (II) be restored to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment; (ii) to maintain coverage for the eligible employee under any group health plan (as defined in section 2210) for the duration of such leave at the level and under the conditions coverage would have been provided if the eligible employee had continued in employment continuously for the duration of such leave; (iii) in any case in which an eligible employee receives an adverse determination from the employer (or administering entity) with respect to comprehensive paid leave benefits under the program described in subparagraph (C)(ii)— (I) to provide opportunity for the eligible employee to appeal such adverse determination to the employer (or administering entity); and (II) in any case in which the eligible employee elects to appeal the results of such initial appeal to the Commissioner pursuant to section 2205(a)(1)(B) and the final decision of the Commissioner is in the eligible employee’s favor, to provide for the payment of such comprehensive paid leave benefits in addition to the costs to the Commissioner of such secondary appeal; (iv) to provide annual notice to all eligible employees stating that their employment is covered employment under an employer-sponsored program (as defined in subsection (g)) and informing them of the right to appeal any adverse determination with respect to comprehensive paid leave benefits under the program described in subparagraph (C)(ii); and (v) not to impose any fee on any eligible employee related to ensuring coverage, or to the receipt of comprehensive paid leave benefits, under the program described in subparagraph (C)(ii). (C) Application; submission of required information Not later than the certification deadline specified in paragraph (2)(A) for such calendar year, the employer— (i) notifies the Commissioner that the employer intends to seek a grant under this section for such calendar year; (ii) certifies to the Commissioner that the employer will have in effect during such calendar year a comprehensive paid leave benefit program that meets the requirements of subsection (c) and, not later than the submission deadline specified in paragraph (2)(B) for such calendar year, provides all documentation relating to such program as the Commissioner may request; and (iii) pays an application fee to the Commissioner in accordance with this subparagraph, such amounts to remain available to the Commissioner without further appropriation, in addition to amounts otherwise available, to administer this section and appeals described in section 2205(a)(1)(B). In the case of an initial application, the application fee under this subparagraph shall be $500 for an employer with 50 or fewer employees, $1,000 for an employer with more than 50 but fewer than 500 employees, and $2,000 for an employer with 500 or more employees. In the case of a renewed application, the application fee under this subparagraph shall be $200. (D) Approval by the Commissioner The comprehensive paid leave benefit program referred to in subparagraph (C)(ii) is subsequently approved by the Commissioner as meeting all applicable requirements. (E) Information submission requirement At the time of application for such grant for each calendar year, the employer— (i) submits to the Commissioner— (I) an attestation that the comprehensive paid leave benefit program referred to in subparagraph (C)(ii) will remain in effect during the whole of such calendar year (or, in the case of a program not in effect at the beginning of such calendar year, an attestation that such program will remain in effect until the end of such calendar year); and (II) with respect to each eligible employee of the employer whose employment is covered employment under the employer-sponsored program (as defined in subsection (g)) for such calendar year, the eligible employee’s name, information to establish the eligible employee’s identity, and in the case of a part-time eligible employee (for purposes of determining the number of eligible employees (pro-rated for part-time eligible employees) covered under the program for such calendar year under subsection (a)(1)(B)), the number of hours the eligible employee regularly works in a week; and (ii) agrees to submit information to the Commissioner as described in subsection (e). (F) Maintenance of records The employer agrees to retain all records relating to the employer’s comprehensive paid leave benefit program for not less than 3 years. (G) Additional grant requirements As a condition of the grant, the employer (or administering entity) does not— (i) interfere with, restrain, or deny the exercise of, or the attempt to exercise, any right provided under the program described in subparagraph (C)(ii); or (ii) discharge, or in any other manner discriminate against, any eligible employee for opposing any practice prohibited by such program. (H) Additional eligibility requirements for self-insured employers In the case of a comprehensive paid leave benefit program of an employer with respect to which benefits are awarded and paid directly by the employer (or by a third party administrator on behalf of the employer)— (i) such employer employs at least 50 eligible employees; and (ii) such benefits are guaranteed by a surety bond held by the employer. (2) Timing of application (A) Certification The certification deadline specified in this subparagraph for a calendar year is the date that is 90 days before the beginning of the calendar year, or, if later, the date that is 90 days before a plan described in paragraph (1)(C)(ii) first goes into effect. (B) Submission of documentation The submission deadline specified in this subparagraph for a calendar year is the date that is 45 days before the beginning of the calendar year, or, if later, the date that is 45 days before a plan described in paragraph (1)(C)(ii) first goes into effect. (c) Employer program requirements (1) In general A comprehensive paid leave benefit program shall not be considered to meet the requirements of this subsection unless such program consists of a written employer policy in accordance with paragraph (2) that provides for the payment, through one or more employee benefit plans, of family and medical leave benefits (in addition to any paid vacation, paid sick leave, or paid consolidated leave otherwise provided), which may be guaranteed through an insurer or provided through a multiemployer plan and which may be administered by an insurer, multiemployer plan, or by another third-party entity, that includes each element described in subparagraphs (A) through (H) of paragraph (2), and under which the employer provides for each of the following: (A) Each of the additional grant conditions described in subsection (b)(1)(B). (B) Each of the requirements described in subsection (b)(1)(G). (C) Submission of information to the Commissioner as described in subsection (e). (2) Comprehensive paid leave plan requirements for grantees As a condition of a grant under this section, the written employer policy referred to in paragraph (1) shall provide comprehensive paid leave benefits— (A) to all eligible employees of the employer, regardless of length of service, job type, membership in a labor organization, seniority status, or any other employee classification; (B) at a wage replacement rate that is at least as great as the wage replacement rate that an eligible employee would receive under the comprehensive paid leave benefit program under section 2202 (without regard to section 2202(c)(2)(C)); (C) for a total number of weeks of paid leave that is at least as great as the total number of weeks of paid leave that an eligible employee would receive under such program (without regard to such section); (D) for all qualifying reasons (as described in subparagraphs (A), (B), and (C) of section 2210(6)), regardless of any pre-existing medical conditions; (E) for leave which may be taken intermittently or on a reduced leave schedule; (F) that does not impose any fee on any eligible employee related to ensuring coverage for, or to the receipt of, such benefits; (G) which must be paid not less frequently than monthly; and (H) for which any information contained in an application for such benefits shall be presumed to be true and accurate, unless the employer (or administering entity) demonstrates by a preponderance of the evidence that information contained in the application is false. (3) National average cost Not later than October 1 of the calendar year before each calendar year beginning with 2024, the Commissioner shall determine and publish the projected national average cost per individual of providing comprehensive paid leave benefits under section 2202 for such calendar year, such cost to be determined by dividing the total cost of benefits under such section for such calendar year (including the costs to the Commissioner to administer such benefits, not to exceed (for purposes of calculating the national average cost under this paragraph) 7 percent of the total amount of such benefits paid) by the number of individuals— (A) who have wages or self-employment income at any time during such calendar year; and (B) whose employment in a regular workweek (within the meaning of section 2203(d)) includes employment that is not covered employment under an employer-sponsored program (as defined in subsection (g) of this section) or covered employment under the law of a legacy State (as defined in section 2208(c)). (d) Timing of payment; penalty for late filing (1) Insured employers and employers contributing to multiemployer plans A grant paid under this section for a calendar year to an eligible employer described in subsection (a)(1) shall be paid by the Commissioner not later than 30 days after the beginning of such calendar year. (2) Self-insured employers A grant paid under this section for a calendar year to an eligible employer described in subsection (a)(2) shall be paid by the Commissioner not later than March 31 of the calendar year succeeding such calendar year. (3) Penalty for late filing In any case in which an eligible employer seeking a grant under this subsection for a calendar year fails to submit all required documentation by the submission deadline for such calendar year as required under subsection (b)(2)(B)— (A) the grant for such calendar year for such employer shall not be paid until 45 days after the date of payment otherwise specified in paragraph (1) or (2), as applicable; and (B) the amount of such grant shall be reduced by 2 percent for each 7 days by which such submission deadline is exceeded. (e) Information submission As a condition of receiving a grant under subsection (a) for a calendar year, an employer shall provide the Commissioner with information, at such times and in such manner as required by the Commissioner, concerning eligible employees who received a paid leave benefit under the comprehensive paid leave benefit program of the employer, including each eligible employee’s name, information to establish the eligible employee’s identity, dates for which such paid leave benefits were paid, the amount of such paid leave benefit, and, to the extent available, such other information concerning such eligible employees as needed for the purpose of carrying out this section and section 2202(c)(2)(C), and for otherwise carrying out the provisions of this title. (f) Enforcement and grant recovery (1) In general The Commissioner shall conduct periodic reviews of employers receiving grants under this section (and of entities administering such programs). The Commissioner may withdraw approval of the comprehensive paid leave benefit program of an employer in any case in which the Commissioner finds that the employer (or administering entity) has violated any requirement of this section, may require the employer to repay the full amount of such grant, and may disqualify an employer from receiving subsequent grants (or an administering entity from administering programs) under this section in the case of repeated violations. (2) Penalties relating to appeals In any case in which the Commissioner determines that a pattern exists with respect to an employer (or administering entity) in which the employer (or administering entity) has incorrectly denied claims for paid leave benefits under the employer-sponsored program and such claims have subsequently been approved by the Commissioner pursuant to an appeal described in section 2205(a)(1)(B), the Commissioner may impose penalties on the employer (or administering entity), which may include requiring the employer to repay the full amount of such grant and a reduction in, or disqualification from, receiving subsequent grants (or an entity from administering programs) under this section. (3) Penalties on administering entities In the case of a third-party entity administering a comprehensive paid leave benefit program of an employer, such entity shall notify such employer in any case in which a penalty is imposed under this subsection on the administering entity not later than 30 days after the date on which such penalty has been imposed. In any case in which the Commissioner determines that a pattern of misconduct exists with respect to an entity administering benefits under this section for multiple employers, the Commissioner may disqualify such entity from administering employer-sponsored programs receiving subsequent grants under this section. (4) Employer and administrator appeals An employer (or administering entity) with respect to which a penalty is imposed under this subsection may appeal such decision to the Commissioner only if such appeal is filed with the Commissioner not later than 60 days after the date of such decision. (g) Covered employment under an employer-sponsored program For purposes of this title, the term covered employment under an employer-sponsored program — (1) means employment with an eligible employer sponsoring a comprehensive paid leave benefit program that meets the requirements of subsection (c) during a calendar year for which the eligible employer receives a grant under subsection (a); and (2) does not include covered employment under the law of a legacy State (as defined in section 2208(c)). (h) Greater benefits permitted Nothing in this section shall be construed to prohibit an eligible employer from providing paid family and medical leave benefits that exceed the requirements described in this section. 2210. Definitions For purposes of this title: (1) Commissioner The term Commissioner means the Commissioner of Social Security. (2) Eligibility With respect to any reference in this title to an individual’s eligibility or ineligibility for comprehensive paid leave benefits under section 2202(a) for a month, an individual shall be considered to be eligible for such benefits for such month if, upon filing an application for such benefits for such month, the individual would be entitled to such benefits for such month. (3) Group health plan The term group health plan has the meaning given such term in section 5000(b)(1) of the Internal Revenue Code of 1986. (4) Multiemployer plan The term multiemployer plan has the meaning given such term in section 3(37) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(37) ). (5) National average wage index The term national average wage index has the meaning given such term in section 209(k)(1). (6) Qualifying reason The term ‘qualifying reason’ means, with respect to any determination of whether an individual is engaged in qualified caregiving under section 2202(c)(2)(A), any of the following: (A) A reason described in subparagraph (A) or (B) of section 102(a)(1) of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2612(a)(1) ) (applied for purposes of this paragraph as if the individual involved were the employee referred to in such section). (B) (i) In order to care for a qualified family member of the individual, if such qualified family member has a serious health condition. (ii) For purposes of clause (i)— (I) the term qualified family member means, with respect to an individual— (aa) a spouse (including a domestic partner in a civil union or other registered domestic partnership recognized by a State) and a spouse’s parent; (bb) a child and a child’s spouse; (cc) a parent and a parent’s spouse; (dd) a sibling and a sibling’s spouse; (ee) a grandparent, a grandchild, or a spouse of a grandparent or grandchild; and (ff) any other individual who is related by blood or affinity and whose association with the individual involved is equivalent of a family relationship; and (II) the term serious health condition has the meaning given such term in section 101(11) of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2611(11) ) . (C) Because of a serious health condition (as defined in subparagraph (B)(ii)(II)) that makes the individual unable to satisfy the requirements needed to continue receiving (or in the case of an individual no longer employed, to resume receiving) the wages or self-employment income described in section 2202(a)(3). (7) Reasonable documentation The term reasonable documentation means the information that is required to be stated under subsection (b) of section 103 of the Family and Medical Leave Act of 1993 ( 29 U.S.C. 2613 ). (8) Self-employment income The term self-employment income has the meaning given the term in section 1402(b) of the Internal Revenue Code of 1986 for purposes of the taxes imposed by section 1401(b) of such Code. For purposes of section 2202(a) and 2203(b)(3), the Commissioner shall determine rules for the crediting of self-employment income to calendar quarters, under which— (A) in the case of a taxable year which is a calendar year, self-employment income shall be credited equally to each quarter of such calendar year; and (B) in the case of any other taxable year, such income shall be credited equally to the calendar quarter in which such taxable year ends and to each of the next three or fewer preceding quarters any part of which is in such taxable year. (9) State The term State means any State of the United States or the District of Columbia or any territory or possession of the United States. (10) Wages The term wages has the meaning given such term in section 3121(a) of the Internal Revenue Code of 1986 for purposes of the taxes imposed by sections 3101(b) and 3111(b) of such Code (without regard to section 3121(u)(2)(C) of such Code), except that such term also includes— (A) compensation, as defined in section 3231(e) of such Code for purposes of the Railroad Retirement Tax Act; and (B) unemployment compensation, as defined in section 85(b) of such Code. (11) Week The term week means a 7-day period beginning on a Sunday. . 130002. Access to wage information from the National Directory of New Hires for the purpose of administering comprehensive paid leave Section 453(j) of the Social Security Act ( 42 U.S.C. 653(j) ) is amended by adding at the end the following: (12) Information comparisons and disclosure to assist in administration of title XXII (A) Furnishing of information by the Commissioner of Social Security The Commissioner of Social Security shall furnish to the Secretary, on such periodic basis as determined by the Commissioner of Social Security in consultation with the Secretary, information in the custody of the Commissioner of Social Security for comparison with information in the National Directory of New Hires, in order to obtain information in such Directory with respect to individuals for purposes of administering title XXII. (B) Requirement to seek minimum information The Commissioner of Social Security shall seek information pursuant to this section only to the extent necessary to administer title XXII. (C) Duties of the Secretary (i) Information disclosure The Secretary, in cooperation with the Commissioner of Social Security, shall compare information in the National Directory of New Hires with information provided by the Commissioner of Social Security with respect to individuals described in subparagraph (A), and shall disclose information in such Directory regarding such individuals to the Commissioner of Social Security, in accordance with this paragraph, for the purposes specified in this paragraph. (ii) Condition on disclosure The Secretary shall make disclosures in accordance with clause (i) only to the extent that the Secretary determines that such disclosures do not interfere with the effective operation of the program under this part. (D) Use of information by the Commissioner of Social Security The Commissioner of Social Security may use information provided under this paragraph only for purposes of administering title XXII, and shall maintain such information in the records of the Commissioner of Social Security for such time as the Commissioner of Social Security deems necessary for the administration of such title. (E) Disclosure of information by the Commissioner of Social Security (i) Purpose of disclosure The Commissioner of Social Security may make a disclosure under this subparagraph only for purposes of verifying the employment and income of individuals described in subparagraph (A). (ii) Conditions on disclosure Disclosures under this subparagraph shall be— (I) made in accordance with data security and control policies established by the Commissioner of Social Security and approved by the Secretary; (II) subject to audit in a manner satisfactory to the Secretary; and (III) subject to the sanctions under subsection (l)(2). (iii) Restrictions on redisclosure A person or entity to which information is disclosed under this subparagraph may use or disclose such information only as needed for verifying the employment and income of individuals described in subparagraph (A), subject to the conditions in clause (ii) and such additional conditions as agreed to by the Secretary and the Commissioner of Social Security. (F) Reimbursement of HHS costs . The Commissioner of Social Security shall reimburse the Secretary, in accordance with subsection (k)(3), for the costs incurred by the Secretary in furnishing the information requested under this paragraph. . 130003. Access to self-employment income information for paid leave administration (a) In general Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (23) Disclosure of certain return information to carry out paid family and medical leave benefit program (A) In general The Secretary shall, upon written request, disclose to officers and employees of the Social Security Administration return information with respect to a taxpayer whose self-employment income is relevant in determining entitlement to, or the correct amount of, a paid family and medical leave benefit under title XXII of the Social Security Act. Such information shall be limited to— (i) the taxpayer identity information with respect to the taxpayer, (ii) the self-employment income of the taxpayer, (iii) the taxable year to which such self-employment income relates, and (iv) if applicable, the fact that any of the preceding information is unavailable. (B) Restriction on disclosure Return information disclosed under subparagraph (A) may be used by officers and employees of the Social Security Administration solely for the purpose of administering the paid family and medical leave benefit program under title XXII of the Social Security Act. (C) Self-employment income For purposes of this paragraph, the term self-employment income has the meaning given such term in section 1402(b) for purposes of the taxes imposed by section 1401(b). . (b) Application of safeguards Section 6103(p)(4) of such Code is amended by striking or (22) in the matter preceding subparagraph (A) and in subparagraph (F)(ii) and inserting (22), or (23) . 130004. Certain comprehensive paid leave benefits excluded from gross income (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Certain comprehensive paid leave benefits In the case of an individual, gross income shall not include any amount received by the taxpayer by reason of entitlement to a comprehensive paid leave benefit under section 2202(a) of the Social Security Act. . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Certain comprehensive paid leave benefits. . B Miscellaneous Health Items 132000. Registered professional nurses (a) Medicare Section 1819(b)(4)(C)(i) of the Social Security Act ( 42 U.S.C. 1395i–3(b)(4)(C)(i) ) is amended by striking registered professional nurse and all that follows through the period at the end and inserting the following: registered professional nurse, with respect to such services furnished— (I) before October 1, 2024, at least 8 consecutive hours a day, 7 days a week; and (II) on or after such date, 24 hours a day, 7 days a week. . (b) Medicaid Section 1919(b)(4)(C)(i)(II) of the Social Security Act ( 42 U.S.C. 1396r(b)(4)(C)(i)(II) ) is amended by striking registered professional nurse and all that follows through the period at the end and inserting the following: registered professional nurse, with respect to such services furnished— (aa) before October 1, 2024, at least 8 consecutive hours a day, 7 days a week; and (bb) on or after such date, 24 hours a day, 7 days a week. . 132001. Permanent Extension of the independence at home medical practice demonstration program Section 1866E of the Social Security Act ( 42 U.S.C. 1395cc–5 ) is amended by adding at the end the following new subsection: (j) Permanent demonstration program (1) In general Notwithstanding subsection (e)(1) and subject to paragraph (2), beginning on the date of enactment of this subsection, the Secretary shall conduct the demonstration program on a permanent basis. (2) Adjustments In conducting the demonstration program on a permanent basis pursuant to paragraph (1), the preceding provisions of this section shall apply except that, beginning on the date of enactment of this subsection, the following shall apply: (A) Notwithstanding paragraphs (1) and (5) of subsection (e)— (i) there shall be no limit on the number of qualified independence at home medical practices or applicable beneficiaries that may participate in the demonstration program; and (ii) participation of qualified independence at home medical practices in the demonstration program shall not be limited to practices that were selected to participate prior to the date of enactment of this subsection. (B) In applying subsection (c), any applicable beneficiary that participates in the demonstration program, including by reason of the elimination under subparagraph (A) of the limit on the number of applicable beneficiaries who may participate, shall be taken into account in establishing any— (i) estimated annual spending target under subsection (c)(1); and (ii) incentive payment under subsection (c)(2). (3) Funding In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services Program Management Account for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $60,000,000, to remain available until September 30, 2031, for purposes of administering and carrying out the demonstration program, other than for payments for items and services furnished under this title and incentive payments under subsection (c). . C Trade adjustment assistance 133001. Short title This subtitle may be cited as the Trade Adjustment Assistance Modernization Act of 2021 . 133002. Application of provisions relating to trade adjustment assistance (a) Effective date; applicability Except as otherwise provided in this subtitle, the provisions of chapters 2 through 6 of title II of the Trade Act of 1974, as in effect on June 30, 2021, and as amended by this subtitle, shall— (1) take effect on the date of the enactment of this Act; and (2) apply with respect to petitions for certification filed under chapter 2, 3, 4, or 6 of title II of the Trade Act of 1974 on or after such date of enactment. (b) Reference Except as otherwise provided in this subtitle, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a provision of chapters 2 through 6 of title II of the Trade Act of 1974, the reference shall be considered to be made to a provision of any such chapter, as in effect on June 30, 2021. (c) Repeal of snapback Section 406 of the Trade Adjustment Assistance Reauthorization Act of 2015 ( Public Law 114–27 ; 129 Stat. 379) is repealed. 1 Trade adjustment assistance for workers 133101. Filing petitions Section 221(a)(1) of the Trade Act of 1974 ( 19 U.S.C. 2271(a)(1) ) is amended— (1) by amending subparagraph (A) to read as follows: (A) One or more workers in the group of workers. ; and (2) in subparagraph (C), by striking or a State dislocated worker unit and inserting a State dislocated worker unit, or workforce intermediaries, including labor-management organizations that carry out re-employment and training services . 133102. Group eligibility requirements (a) In general Section 222(a)(2) of the Trade Act of 1974 ( 19 U.S.C. 2272(a)(2) ) is amended— (1) in subparagraph (A)— (A) in clause (i), by inserting , failed to increase, or will decrease absolutely due to a scheduled or imminently anticipated, long-term decrease in or reallocation of the production capacity of the firm after absolutely ; and (B) in clause (iii)— (i) by striking to the decline and inserting to any decline or absence of increase ; and (ii) by striking or at the end; (2) in subparagraph (B)(ii), by striking the period at the end and inserting ; or ; and (3) by adding at the end the following: (C) (i) the sales or production, or both, of such firm have decreased; (ii) (I) exports of articles produced or services supplied by such workers’ firm have decreased; or (II) imports of articles or services necessary for the production of articles or services supplied by such firm have decreased; and (iii) the decrease in exports or imports described in clause (ii) contributed to such workers’ separation or threat of separation and to the decline in the sales or production of such firm. . (b) Repeal Section 222 of the Trade Act of 1974 ( 19 U.S.C. 2272 ) is amended— (1) in subsections (a) and (b), by striking importantly each place it appears; and (2) in subsection (c)— (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively. (c) Eligibility of staffed workers and teleworkers Section 222 of the Trade Act of 1974 ( 19 U.S.C. 2272 ), as amended by subsection (b), is further amended by adding at the end the following: (f) Treatment of staffed workers and teleworkers (1) In general For purposes of subsection (a), workers in a firm include staffed workers and teleworkers. (2) Definitions In this subsection: (A) Staffed worker The term staffed worker means a worker who performs work under the operational control of a firm that is the subject of a petition filed under section 221, even if the worker is directly employed by another firm. (B) Teleworker The term teleworker means a worker who works remotely but who reports to the location listed for a firm in a petition filed under section 221. . 133103. Application of determinations of eligibility to workers employed by successors-in-interest Section 223 of the Trade Act of 1974 ( 19 U.S.C. 2273 ) is amended by adding at the end the following: (f) Treatment of workers of successors-in-Interest If the Secretary certifies a group of workers of a firm as eligible to apply for adjustment assistance under this chapter, a worker of a successor-in-interest to that firm shall be covered by the certification to the same extent as a worker of that firm. . 133104. Provision of benefit information to workers Section 225 of the Trade Act of 1974 ( 19 U.S.C. 2275 ) is amended— (1) in subsection (a), by inserting after the second sentence the following new sentence: The Secretary shall make every effort to provide such information and assistance to workers in their native language. ; and (2) in subsection (b)— (A) by redesignating paragraph (2) as paragraph (3); (B) by inserting after paragraph (1) the following: (2) The Secretary shall provide a second notice to a worker described in paragraph (1) before the worker has exhausted all rights to any unemployment insurance to which the worker is entitled (other than additional compensation described in section 231(a)(3)(B) funded by a State and not reimbursed from Federal funds). ; (C) in paragraph (3), as redesignated by paragraph (1), by striking newspapers of general circulation and inserting appropriate print or digital outlets ; and (D) by adding at the end the following: (4) For purposes of providing sustained outreach regarding the benefits available under this chapter to workers covered by a certification made under this subchapter, the Secretary may take any necessary actions, including the following: (A) Collecting the email addresses and telephone numbers of such workers from the employers of such workers to provide sustained outreach to such workers. (B) Partnering with the certified or recognized union, a community-based worker organization, or other duly authorized representatives of such workers. (C) Hiring peer support workers to perform sustained outreach to other workers covered by that certification. (D) Using advertising methods and public information campaigns, including social media, in addition to notice published in print or digital outlets under paragraph (3). . 133105. Qualifying requirements for workers (a) In general Section 231(a) of the Trade Act of 1974 ( 19 U.S.C. 2291(a) ) is amended— (1) by striking paragraph (2); (2) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; and (3) in paragraph (4) (as redesignated), by striking paragraphs (1) and (2) each place it appears and inserting paragraph (1) . (b) Conforming amendments (1) Section 232 of the Trade Act of 1974 ( 19 U.S.C. 2292 ) is amended by striking section 231(a)(3)(B) each place it appears and inserting section 231(a)(2)(B) . (2) Section 233(a) of the Trade Act of 1974 ( 19 U.S.C. 2293(a) ) is amended— (A) in paragraph (1), by striking section 231(a)(3)(A) and inserting section 231(a)(2)(A) ; and (B) in paragraph (2)— (i) by striking adversely affected employment and all that follows through (A) within and inserting adversely affected employment within ; (ii) by striking , and and inserting a period; and (iii) by striking subparagraph (B). 133106. Modification to trade readjustment allowances Section 233 of the Trade Act of 1974 ( 19 U.S.C. 2293 ) is amended— (1) in subsection (a)— (A) in paragraph (2), by inserting after 104-week period the following: (or, in the case of an adversely affected worker who requires a program of prerequisite education or remedial education (as described in section 236(a)(5)(D)) in order to complete training approved for the worker under section 236, the 130-week period) ; (B) in paragraph (3), by striking 65 additional weeks in the 78-week period and inserting 78 additional weeks in the 91-week period ; and (C) in the flush text, by striking 78-week period and inserting 91-week period ; (2) by striking subsection (d); and (3) by amending subsection (f) to read as follows: (f) Payment of trade readjustment allowances to complete training Notwithstanding any other provision of this section, in order to assist an adversely affected worker to complete training approved for the worker under section 236 that includes a program of prerequisite education or remedial education (as described in section 236(a)(5)(D)), and in accordance with regulations prescribed by the Secretary, payments may be made as trade readjustment allowances for up to 26 additional weeks in the 26-week period that follows the last week of entitlement to trade readjustment allowances otherwise payable under this chapter. . 133107. Automatic extension of trade readjustment allowances (a) In general Part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 ( 19 U.S.C. 2291-2294 ) is amended by inserting after section 233 the following new section: 233A. Automatic extension of trade readjustment allowances (a) In general Notwithstanding the limitations under section 233(a), the Secretary shall extend the period during which trade readjustment allowances are payable to an adversely affected worker who completes training approved under section 236 by the Secretary during a period of heightened unemployment with respect to the State in which such worker seeks benefits, for the shorter of— (1) the 26-week period beginning on the date of completion of such training; or (2) the period ending on the date on which the adversely affected worker secures employment. (b) Job search required A worker shall only be eligible for an extension under subsection (a) if the worker is complying with the job search requirements associated with unemployment insurance in the applicable State. (c) Period of heightened unemployment defined In this section, the term period of heightened unemployment with respect to a State means a 90-day period during which, in the determination of the Secretary, either of the following average rates equals or exceeds 5.5 percent: (1) The average rate of total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3-month period for which data for all States are published before the close of such period. (2) The average rate of total unemployment in all States (seasonally adjusted) for the period consisting of the most recent 3-month period for which data for all States are published before the close of such period. . (b) Clerical amendment The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 233 the following: Sec. 233A. Automatic extension of trade readjustment allowances. . 133108. Employment and case management services Section 235 of the Trade Act of 1974 ( 19 U.S.C. 2295 ) is amended— (1) in paragraph (3)— (A) by inserting after regional areas the following: (including information about registered apprenticeship programs, on-the-job training opportunities, and other work-based learning opportunities) ; and (B) by inserting after suitable training the following: , information regarding the track record of a training provider’s ability to successfully place participants into suitable employment ; (2) by redesignating paragraph (8) as paragraph (10); and (3) by inserting after paragraph (7) the following: (8) Information related to direct job placement, including facilitating the extent to which employers within the community commit to employing workers who would benefit from the employment and case management services under this section. (9) Sustained outreach to groups of workers likely to be certified as eligible for adjustment assistance under this chapter and members of certified worker groups who have not yet applied for or been enrolled in benefits or services under this chapter, especially such groups and members from underserved communities. . 133109. Training Section 236 of the Trade Act of 1974 ( 19 U.S.C. 2296(a) ) is amended— (1) in subsection (a)— (A) in paragraph (1)(D), by inserting , with a demonstrated ability to place participants into employment before the comma at the end; (B) in paragraph (3), by adding at the end before the period the following: , except that every effort shall be made to ensure that employment opportunities are available upon the completion of training ; and (C) in paragraph (5)— (i) in subparagraph (G), by striking , and and inserting a comma; (ii) in subparagraph (H)(ii), by striking the period at the end and inserting , and ; and (iii) by adding at the end before the flush text the following: (I) pre-apprenticeship training. ; and (2) by adding at the end the following: (h) Reimbursement for out-of-pocket training expenses If the Secretary approves training for a worker under paragraph (1) of subsection (a), the Secretary may reimburse the worker for out-of-pocket expenses relating to training program described in paragraph (5) of that subsection that were incurred by the worker on and after the date of the worker’s total or partial separation and before the date on which the certification of eligibility under section 222 that covers the worker is issued. . 133110. Job search, relocation, and child care allowances (a) Job search allowances Section 237 of the Trade Act of 1974 ( 19 U.S.C. 2297 ) is amended— (1) in subsection (a)(1), by striking may use funds made available to the State to carry out sections 235 through 238 and inserting shall use, from funds made available to the State to carry out sections 235 through 238A, such amounts as may be necessary ; (2) in subsection (a)(2), in the matter preceding subparagraph (A), by striking may grant and inserting shall grant ; and (3) in subsection (b)— (A) in paragraph (1), by striking not more than 90 percent and inserting 100 percent ; (B) in paragraph (2), by striking $1,250 and inserting $2,000 (subject to adjustment under paragraph (4)) ; and (C) by adding at the end the following; (4) Adjustment of maximum allowance limitation for inflation (A) In general The Secretary of Labor shall adjust the maximum allowance limitation under paragraph (2) on the date that is 30 days after the date of the enactment of this paragraph, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (B) Special rules for calculation of adjustment In making an adjustment under subparagraph (A), the Secretary— (i) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (ii) may ignore any such increase of less than 1 percent. (C) Consumer Price Index defined For purposes of this paragraph, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. . (b) Relocation allowances Section 238 of the Trade Act of 1974 ( 19 U.S.C. 2298 ) is amended— (1) in subsection (a)(1), by striking may use funds made available to the State to carry out sections 235 through 238 and inserting shall use, from funds made available to the State to carry out sections 235 through 238A, such amounts as may be necessary ; (2) in subsection (a)(2), in the matter preceding subparagraph (A), by striking may be granted and inserting shall be granted ; (3) in subsection (b)— (A) in paragraph (1), by striking not more than 90 percent and inserting 100 percent ; and (B) in paragraph (2), by striking $1,250 and inserting $2,000 (subject to adjustment under subsection (d)) ; and (4) by adding at the end the following: (d) Adjustment of maximum payment limitation for inflation (1) In general The Secretary of Labor shall adjust the maximum payment limitation under subsection (b)(2) on the date that is 30 days after the date of the enactment of this subsection, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (2) Special rules for calculation of adjustment In making an adjustment under paragraph (1), the Secretary— (A) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (B) may ignore any such increase of less than 1 percent. (3) Consumer Price Index defined For purposes of this subsection, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. . (c) Child care allowances (1) In general Part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 ( 19 U.S.C. 2295-2298 ) is amended by adding at the end the following: 238A. Child Care Allowances (a) Child Care Allowances Authorized (1) In general Each State shall use, from funds made available to the State to carry out sections 235 through 238A, such amounts as may be necessary to allow an adversely affected worker covered by a certification issued under subchapter A of this chapter to file an application for a child care allowance with the Secretary, and the Secretary may grant the child care allowance, subject to the terms and conditions of this section. (2) Conditions for granting allowance A child care allowance shall be granted if the allowance will assist an adversely affected worker to attend training or seek suitable employment, by providing for the care of one or more of the minor dependents of the worker. (b) Amount of Allowance Any child care allowance granted to a worker under subsection (a) shall not exceed $2,000 per minor dependent per year. (c) Adjustment of maximum allowance limitation for inflation (1) In general The Secretary of Labor shall adjust the maximum allowance limitation under subsection (b) on the date that is 30 days after the date of the enactment of this subsection, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (2) Special rules for calculation of adjustment In making an adjustment under paragraph (1), the Secretary— (A) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (B) may ignore any such increase of less than 1 percent. (3) Consumer Price Index defined For purposes of this subsection, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. . (2) Conforming amendments (A) Limitations on administrative expenses and employment and case management services Section 235A of the Trade Act of 1974 ( 19 U.S.C. 2295a ) is amended in the matter preceding paragraph (1) by striking through 238 and inserting through 238A . (B) Training Section 236(a)(2) of the Trade Act of 1974 ( 19 U.S.C. 2296(a)(2) ) is amended— (i) in subparagraph (A), by striking and 238 and inserting 238, and 238A ; (ii) in subparagraph (B), by striking and 238 each place it appears and inserting 238, and 238A ; (iii) in subparagraph (C)(i), by striking and 238 and inserting 238, and 238A ; (iv) in subparagraph (C)(v), by striking and 238 and inserting 238, and 238A ; and (v) in subparagraph (E), by striking and 238 each place it appears and inserting 238, and 238A . (3) Clerical amendment The table of contents for the Trade Act of 1974 is amended by adding after the item relating to section 238 the following new item: Sec. 238A. Child care allowances. . 133111. Agreements with States (a) Coordination Section 239(f) of the Trade Act of 1974 ( 19 U.S.C. 2311(f) ) is amended— (1) by striking (f) Any agreement and inserting the following: (f) (1) Any agreement ; and (2) by adding at the end the following: (2) In arranging for training programs to be carried out under this chapter, each cooperating State agency shall, among other factors, take into account and measure the progress of the extent to which such programs— (A) achieve a satisfactory rate of completion and placement in jobs that provide a living wage and that increase economic security; (B) assist workers in developing the skills, networks, and experiences necessary to advance along a career path; (C) assist workers from underserved communities to establish a work history, demonstrate success in the workplace, and develop the skills that lead to entry into and retention in unsubsidized employment; and (D) adequately serve individuals who face the greatest barriers to employment, including people with low incomes, people of color, immigrants, persons with disabilities, and formerly incarcerated individuals. (3) Each cooperating State agency shall facilitate joint cooperation between training programs, representatives of workers, employers, and communities, especially in underserved rural and urban regions, to ensure a fair and engaging workplace that balances the priorities and well-being of workers with the needs of businesses. (4) Each cooperating State agency shall seek, including through agreements and training programs described in this subsection, to ensure the reemployment of adversely affected workers upon completion of training as described in section 236. . (b) Administration Section 239(g) of the Trade Act of 1974 ( 19 U.S.C. 2311(g) ) is amended— (1) by redesignating— (A) paragraphs (1) through (4) as paragraphs (3) through (6), respectively; and (B) paragraph (5) as paragraph (8); (2) by inserting before paragraph (3) (as redesignated) the following: (1) review each layoff of more than 5 workers in a firm to determine whether trade played a role in the layoff and whether workers in such firm are potentially eligible to receive benefits under this chapter, (2) perform sustained outreach to firms to facilitate and assist with filing petitions under section 221 and collecting necessary supporting information, ; (3) in paragraph (3) (as redesignated), by striking who applies for unemployment insurance of and inserting identified under paragraph (1) of unemployment insurance benefits and ; (4) in paragraph (4) (as redesignated), by inserting and assist with after facilitate ; (5) in paragraph (6) (as redesignated), by striking and at the end; (6) by inserting after paragraph (6) (as redesignated) the following: (7) perform sustained outreach to workers from underserved communities and to firms that employ a majority or a substantial percentage of workers from underserved communities and develop a plan, in consultation with the Secretary, for addressing common barriers to receiving services that such workers have faced, ; (7) in paragraph (8) (as redesignated), by striking funds provided to carry out this chapter are insufficient to make such services available, make arrangements to make such services available through other Federal programs and inserting support services are needed beyond what this chapter can provide, make arrangements to coordinate such services available through other Federal programs ; and (8) by adding at the end the following: (9) develop a strategy to engage with local workforce development institutions, including local community colleges and other educational institutions, and (10) develop a comprehensive strategy to provide agency staffing to support the requirements of paragraphs (1) through (9). . (c) Staffing Section 239 of the Trade Act of 1974 ( 19 U.S.C. 2311 ) is amended by striking subsection (k) and inserting the following: (k) Staffing An agreement entered into under this section shall provide that the cooperating State or cooperating State agency shall require that any individual engaged in functions (other than functions that are not inherently governmental) to carry out the trade adjustment assistance program under this chapter shall be a State employee covered by a merit system of personnel administration. . 133112. Reemployment trade adjustment assistance program Section 246(a) of the Trade Act of 1974 ( 19 U.S.C. 2318(a) ) is amended— (1) in paragraph (3)(B)(ii), by striking $50,000 and inserting $70,000 (subject to adjustment under paragraph (8)) ; (2) in paragraph (5)(B)(i), by striking $10,000 and inserting $20,000 (subject to adjustment under paragraph (8)) ; and (3) by adding at the end the following: (8) Adjustment of salary limitation and total amount of payments for inflation (A) In general The Secretary of Labor shall adjust the salary limitation under paragraph (3)(B)(ii) and the amount under paragraph (5)(B)(i) on the date that is 30 days after the date of the enactment of this paragraph, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (B) Special rules for calculation of adjustment In making an adjustment under subparagraph (A), the Secretary— (i) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (ii) may ignore any such increase of less than 1 percent. (C) Consumer Price Index defined For purposes of this paragraph, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. . 133113. Extension of trade adjustment assistance to public agency workers (a) Definitions Section 247 of the Trade Act of 1974 ( 19 U.S.C. 2319 ) is amended— (1) in paragraph (3)— (A) in the matter preceding subparagraph (A), by striking The and inserting Subject to section 222(d)(5), the ; and (B) in subparagraph (A), by striking or service sector firm and inserting , service sector firm, or public agency ; and (2) by adding at the end the following: (20) The term public agency means a department or agency of a State or local government or of the Federal Government. . (b) Group eligibility requirements Section 222 of the Trade Act of 1974 ( 19 U.S.C. 2272 ), as amended by subsections (b) and (c) of section 133102, is further amended— (1) by redesignating subsections (c), (d), (e), and (f) as subsections (d), (e), (f), and (g), respectively; (2) by inserting after subsection (b) the following: (c) Adversely affected workers in public agencies A group of workers in a public agency shall be certified by the Secretary as eligible to apply for adjustment assistance under this chapter pursuant to a petition filed under section 221 if the Secretary determines that— (1) a significant number or proportion of the workers in the public agency have become totally or partially separated, or are threatened to become totally or partially separated; (2) the public agency has acquired from a foreign country services like or directly competitive with services which are supplied by such agency; and (3) the acquisition of services described in paragraph (2) contributed to such workers’ separation or threat of separation. ; (3) in subsection (d) (as redesignated), by adding at the end the following: (5) Reference to firm For purposes of subsections (a) and (b), the term firm does not include a public agency. ; and (4) in paragraph (2) of subsection (e) (as redesignated), by striking subsection (a) or (b) and inserting subsection (a), (b), or (c) . 133114. Definitions (a) Extension of adjustment assistance for workers to territories Section 247(7) of the Trade Act of 1974 ( 19 U.S.C. 2319(7) ) is amended— (1) by inserting , Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, after District of Columbia ; and (2) by striking such Commonwealth. and inserting such territories. . (b) Underserved community Section 247 of the Trade Act of 1974 ( 19 U.S.C. 2319 ), as amended by section 133113(a), is further amended by adding at the end the following: (21) The term underserved community means a community with populations sharing a particular characteristic that have been systematically denied a full opportunity to participate in aspects of economic, social, or civic life, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders, other persons of color, members of other minority communities, persons with disabilities, persons who live in rural areas, and other populations otherwise adversely affected by persistent poverty or inequality. . 133115. Requirements for certain territories Section 248 of the Trade Act of 1974 ( 19 U.S.C. 2320 ) is amended by adding at the end the following: (c) Requirements for certain territories The Secretary shall establish such requirements as may be necessary and appropriate to modify the requirements of this chapter, including requirements relating to eligibility for trade readjustment allowances, to address the particular circumstances of Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands in implementing and carrying out this chapter. . 133116. Subpoena power Section 249 of the Trade Act of 1974 ( 19 U.S.C. 2321 ) is amended— (1) in subsection (a), by adding at the end the following: The authority under the preceding sentence includes the authority of States to require, by subpoena, a firm to provide information on workers employed by, or totally or partially separated from, the firm that is necessary to make a determination under this chapter or to provide outreach to workers, including the names and address of workers. ; and (2) by adding at the end the following: (c) Enforcement of subpoenas by states A State may enforce compliance with a subpoena issued under subsection (a)— (1) as provided for under State law; and (2) by petitioning an appropriate United States district court for an order requiring compliance with the subpoena. . 2 Trade adjustment assistance for firms 133201. Petitions and determinations Section 251 of the Trade Act of 1974 ( 19 U.S.C. 2341 ) is amended— (1) in the second sentence of subsection (a), by striking Upon and inserting Not later than 15 days after ; (2) by amending subsection (c) to read as follows: (c) (1) The Secretary shall certify a firm (including any agricultural firm or service sector firm) as eligible to apply for adjustment assistance under this chapter if the Secretary determines— (A) (i) that a significant number or proportion of the workers in such firm have become totally or partially separated, or are threatened to become totally or partially separated, or (ii) that— (I) sales or production, or both, of the firm have decreased absolutely or failed to increase, (II) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the 12-month period preceding the most recent 12-month period for which data are available have decreased absolutely or failed to increase, (III) sales or production, or both, of the firm during the most recent 12-month period for which data are available have decreased or failed to increase compared to— (aa) the average annual sales or production for the firm during the 24-month period preceding that 12-month period, or (bb) the average annual sales or production for the firm during the 36-month period preceding that 12-month period, or (IV) sales or production, or both, of an article or service that accounted for not less than 25 percent of the total sales or production of the firm during the most recent 12-month period for which data are available have decreased or failed to increase compared to— (aa) the average annual sales or production for the article or service during the 24-month period preceding that 12-month period, or (bb) the average annual sales or production for the article or service during the 36-month period preceding that 12-month period, and (B) (i) increases of imports of articles or services like or directly competitive with articles which are produced or services which are supplied by such firm contributed to such total or partial separation, or threat thereof, or to such decline or failure to increase in sales or production, or (ii) decreases in exports of articles produced or services supplied by such firm, or imports of articles or services necessary for the production of articles or services supplied by such firm, contributed to such total or partial separation, or threat thereof, or to such decline in sales or production. (2) For purposes of paragraph (1)(B): (A) Any firm which engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas. (B) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas. ; and (3) in subsection (d)— (A) by striking this section, and inserting this section. ; and (B) by striking but in any event and all that follows and inserting the following: If the Secretary does not make a determination with respect to a petition within 55 days after the date on which an investigation is initiated under subsection (a) with respect to the petition, the Secretary shall be deemed to have certified the firm as eligible to apply for adjustment assistance under this chapter. . 133202. Approval of adjustment proposals Section 252 of the Trade Act of 1974 ( 19 U.S.C. 2342 ) is amended— (1) in the second sentence of subsection (a), by adding at the end before the period the following: and an assessment of the potential employment outcomes of such proposal ; (2) in subsection (b)(1)(B), by striking gives adequate consideration to and inserting is in ; (3) by redesignating subsection (c) as subsection (d); and (4) by inserting after subsection (b) the following: (c) Amount of assistance (1) In general A firm may receive adjustment assistance under this chapter with respect to the firm’s economic adjustment proposal in an amount not to exceed $300,000, subject to adjustment under paragraph (2) and the matching requirement under paragraph (3). (2) Adjustment of assistance limitation for inflation (A) In general The Secretary of Commerce shall adjust the technical assistance limitation under paragraph (1) on the date that is 30 days after the date of the enactment of this paragraph, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (B) Special rules for calculation of adjustment In making an adjustment under subparagraph (A), the Secretary— (i) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (ii) may ignore any such increase of less than 1 percent. (C) Consumer Price Index defined For purposes of this paragraph, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (3) Matching requirement A firm may receive adjustment assistance under this chapter only if the firm provides matching funds in an amount equal to the amount of adjustment assistance received under paragraph (1). . 133203. Technical assistance Section 253(a)(3) of the Trade Act of 1974 ( 19 U.S.C. 2343(a)(3) ) is amended by adding at the end before the period the following: , including assistance to provide skills training programs to employees of the firm . 133204. Definitions Section 259 of the Trade Act of 1974 ( 19 U.S.C. 2351 ) is amended by adding at the end the following: (3) Underserved community The term underserved community has the meaning given that term in section 247. . 133205. Plan for sustained outreach to potentially-eligible firms (a) In general Chapter 3 of title II of the Trade Act of 1974 ( 19 U.S.C. 2341-2355 ) is amended by adding at the end the following: 263. Plan for sustained outreach to potentially-eligible firms (a) In general The Secretary shall develop a plan to provide sustained outreach to firms that may be eligible for adjustment assistance under this chapter. (b) Matters to be included The plan required by paragraph (1) shall include the following: (1) Outreach to the United States International Trade Commission and to such firms in industries with increased imports identified in the Commission’s annual report regarding the operation of the trade agreements program under section 163(c). (2) Outreach to such firms in the service sector. (3) Outreach to such firms that are small businesses. (4) Outreach to such firms that are minority- or women-owned firms. (5) Outreach to such firms that employ a majority or a substantial percentage of workers from underserved communities. (c) Updates The Secretary shall update the plan required under this section on an annual basis. (d) Submission to Congress The Secretary shall submit the plan and each update to the plan required under this section to Congress. . (b) Clerical amendment The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 262 the following new item: Sec. 263. Plan for sustained outreach to potentially-eligible firms. . 3 Trade Adjustment Assistance for Communities and Community Colleges 133301. Trade adjustment assistance for communities (a) In general Chapter 4 of title II of the Trade Act of 1974 ( 19 U.S.C. 2371-2372 ) is amended— (1) by inserting after the chapter heading the following: B Trade Adjustment Assistance for Community Colleges and Career Training ; and (2) by redesignating sections 271 and 272 as sections 279 and 279A, respectively; and (3) by inserting before subchapter B (as designated by paragraph (1)) the following: A Trade Adjustment Assistance for Communities 271. Definitions In this subchapter: (1) Agricultural commodity producer The term agricultural commodity producer has the meaning given that term in section 291. (2) Community The term community means— (A) a city or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions; (B) an Economic Development District designated by the Economic Development Administration of the Department of Commerce; or (C) an Indian Tribe. (3) Eligible community The term eligible community means a community that is impacted by trade under section 273(a)(2) and is determined to be eligible for assistance under this subchapter. (4) Eligible entity The term eligible entity means— (A) an eligible community; (B) an institution of higher education or a consortium of institutions of higher education; or (C) a public or private nonprofit organization or association acting in cooperation with officials of a political subdivision of a State. (5) Secretary The term Secretary means the Secretary of Commerce. (6) Underserved community The term underserved community has the meaning given that term in section 247. 272. Establishment of trade adjustment assistance for communities program The Secretary, acting through the Assistant Secretary for Economic Development, shall, not later than 180 days after the date of enactment of this subchapter, establish a program to provide communities impacted by trade with assistance in accordance with the requirements of this subchapter. 273. Eligibility; notification of eligibility (a) Eligibility (1) In general A community shall be eligible for assistance under this subchapter if the community is a community impacted by trade under paragraph (2). (2) Community impacted by trade A community is impacted by trade if it meets each of the following requirements: (A) One or more of the following certifications are made with respect to the community: (i) By the Secretary of Labor, that a group of workers located in the community is eligible to apply for assistance under section 223. (ii) By the Secretary of Commerce, that a firm located in the community is eligible to apply for adjustment assistance under section 251. (iii) By the Secretary of Agriculture, that a group of agricultural commodity producers located in the community is eligible to apply for adjustment assistance under section 293. (B) The community— (i) applies for assistance not later than 180 days after the date on which the most recent certification described in subparagraph (A) is made; or (ii) in the case of a community with respect to which one or more such certifications were made on or after January 1, 1994, and before the date of the enactment of this subchapter, applies for assistance not later than September 30, 2024. (C) The community— (i) has a per capita income of 80 percent or less of the national average; (ii) has a history of economic distress and long-term unemployment, as determined by the Secretary; or (iii) is significantly affected by a loss of, or threat to, the jobs associated with any certification described in subparagraph (A), or the community is undergoing transition of its economic base as a result of changing trade patterns, as determined by the Secretary. (b) Notification of eligibility If one or more certifications described in subsection (a)(2)(A) are made with respect to a community, the applicable Secretary with respect to such certification shall concurrently notify the Governor of the State in which the community is located of the ability of the community to apply for assistance under this section. 274. Grants to eligible communities (a) In general The Secretary may— (1) upon the application of an eligible community, award a grant under this section to the community to assist in developing or updating a strategic plan that meets the requirements of section 275; or (2) upon the application of an eligible entity, award an implementation grant under this section to the entity to assist in implementing projects included in a strategic plan that meets the requirements of section 275. (b) Special provisions (1) Revolving loan fund grants (A) In general The Secretary shall maintain the proper operation and financial integrity of revolving loan funds established by eligible entities with assistance under this section. (B) Efficient administration The Secretary may— (i) at the request of an eligible entity, amend and consolidate grant agreements governing revolving loan funds to provide flexibility with respect to lending areas and borrower criteria; and (ii) assign or transfer assets of a revolving loan fund to third party for the purpose of liquidation, and the third party may retain assets of the fund to defray costs related to liquidation. (C) Treatment of actions An action taken by the Secretary under this subsection with respect to a revolving loan fund shall not constitute a new obligation if all grant funds associated with the original grant award have been disbursed to the recipient. (2) Use of funds in projects constructed under project cost (A) In general In the case of a grant for a construction project under this section, if the Secretary determines, before closeout of the project, that the cost of the project, based on the designs and specifications that were the basis of the grant, has decreased because of decreases in costs, the Secretary may approve the use of the excess funds (or a portion of the excess funds) to improve the project. (B) Other uses of excess funds Any amount of excess funds remaining after application of subparagraph (A) may be used by the Secretary for providing assistance under this section. (c) Coordination If an eligible institution (as such term is defined in section 279) located in an eligible community is seeking a grant under section 279 at the same time the community is seeking an implementation grant under subsection (a)— (1) the Secretary, upon receipt of such information from the Secretary of Labor as required under section 279(e), shall notify the community that the institution is seeking a grant under section 279; and (2) the community shall provide to the Secretary, in coordination with the institution, a description of how the community will integrate projects included in the strategic plan with the specific project for which the institution submits the grant proposal under section 279. (d) Limitation The total amount of grants awarded with respect to an eligible community under this section for fiscal years 2022 through 2025 may not exceed $25,000,000. (e) Priority The Secretary shall, in awarding grants under this section, provide higher levels of funding with respect to eligible communities that have a history of economic distress and long-term unemployment, as determined by the Secretary. (f) Geographic diversity (1) In general The Secretary shall, in awarding grants under this section, ensure that grants are awarded with respect to eligible communities from geographically diverse areas. (2) Geographic region requirement The Secretary shall, in meeting the requirement under paragraph (1), award a grant under this section for each of the fiscal years 2022 through 2025 to at least one eligible community located in each geographic region for which regional offices of the Economic Development Administration of the Department of Commerce are responsible, to the extent that the Secretary receives an application from at least one eligible community in each such geographic region. (g) Technical assistance The Secretary shall provide technical assistance for communities— (1) to identify significant impediments to economic development that result from the impact of trade on the community, including in the course of developing a strategic plan under section 275; and (2) to access assistance under other available sources, including State, local, or private sources, to implement projects that diversify and strengthen the economy in the community. 275. Strategic plans (a) In general A strategic plan meets the requirements of this section if— (1) the consultation requirements of subsection (b) are met with respect to the development of the plan; (2) the plan meets the requirements of subsection (c); and (3) the plan is approved in accordance with the requirements of subsection (d). (b) Consultation (1) In general To the extent practicable, an eligible community shall consult with the entities described in paragraph (2) in developing the strategic plan. (2) Entities described The entities described in this paragraph are public and private entities located in or serving the eligible community, including— (A) local, county, or State government agencies; (B) firms, including small- and medium-sized firms; (C) local workforce investment boards; (D) labor organizations, including State labor federations and labor-management initiatives, representing workers in the community; (E) educational institutions, local educational agencies, and other training providers; and (F) local civil rights organizations and community-based organizations, including organizations representing underserved communities. (c) Contents The strategic plan may contain, as applicable to the community, the following: (1) A description and analysis of the capacity of the eligible community to achieve economic adjustment to the impact of trade. (2) An analysis of the economic development challenges and opportunities facing the community, including the strengths and weaknesses of the economy of the community. (3) An assessment of— (A) the commitment of the community to carry out the strategic plan on a long-term basis; (B) the participation and input of members of the community who are dislocated from employment due to the impact of trade; and (C) the extent to which underserved communities have been impacted by trade. (4) A description of how underserved communities will benefit from the strategic plan. (5) A description of the role of the entities described in subsection (b)(2) in developing the strategic plan. (6) A description of projects under the strategic plan to facilitate the community’s economic adjustment to the impact of trade, including projects to— (A) develop public facilities, public services, jobs, and businesses (including establishing a revolving loan fund); (B) provide for planning and technical assistance; (C) provide for training; (D) provide for the demolition of vacant or abandoned commercial, industrial, or residential property; (E) redevelop brownfields; (F) establish or support land banks; (G) support energy conservation; and (H) support historic preservation. (7) A strategy for continuing the community’s economic adjustment to the impact of trade after the completion of such projects. (8) A description of the educational and training programs and the potential employment opportunities available to workers in the community, including for workers under the age of 25, and the future employment needs of the community. (9) An assessment of— (A) the cost of implementing the strategic plan; and (B) the timing of funding required by the community to implement the strategic plan. (10) A description of the methods of financing to be used to implement the strategic plan, including— (A) an implementation grant received under section 274 or under other authorities; (B) a loan, including the establishment of a revolving loan fund; or (C) other types of financing. (11) An assessment of how the community will address unemployment among agricultural commodity producers, if applicable. (d) Approval; CEDS equivalent (1) Approval The Secretary shall approve the strategic plan developed by an eligible community under this section if the Secretary determines that the strategic plan meets the requirements of this section. (2) CEDS or equivalent The Secretary may deem an eligible community’s Comprehensive Economic Development Strategy that substantially meets the requirements of this section to be an approved strategic plan for purposes of this subchapter. (e) Allocation Of the funds appropriated to carry out this chapter for each of the fiscal years 2022 through 2025, the Secretary may make available not more than $50,000,000 to award grants under section 274(a)(1). 276. General provisions (a) Regulations (1) In general The Secretary shall, subject to paragraph (3), promulgate such regulations as may be necessary to carry out this subchapter, including with respect to— (A) administering the awarding of grants under section 274, including establishing guidelines for the submission and evaluation of grant applications under such section; and (B) establishing guidelines for the evaluation of strategic plans developed to meet the requirements of section 275. (2) Consultations The Secretary shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate not later than 90 days prior to promulgating any final rule or regulation under this subsection. (3) Relationship to existing regulations The Secretary, to the maximum extent practicable, shall— (A) rely on and apply regulations promulgated to carry out other economic development programs of the Department of Commerce in carrying out this subchapter; and (B) provide guidance regarding the manner and extent to which such other economic development programs relate to this subchapter. (b) Resources The Secretary shall allocate such resources as may be necessary to provide sufficiently individualized assistance to each eligible community that receives a grant under section 274(a) or seeks technical assistance under section 274(g) to develop and implement a strategic plan that meets the requirements of section 275. . (b) Clerical amendment The table of contents for the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following: Chapter 4—Trade adjustment assistance for communities Subchapter A—Trade adjustment assistance for communities Sec. 271. Definitions. Sec. 272. Establishment of trade adjustment assistance for communities program. Sec. 273. Eligibility; notification of eligibility. Sec. 274. Grants to eligible communities. Sec. 275. Strategic plans. Sec. 276. General provisions. Subchapter B—Community College and Career Training Grant Program Sec. 279. Community College and Career Training Grant Program. Sec. 279A. Authorization of appropriations. . 133302. Trade adjustment assistance for community colleges and career training Section 279 of the Trade Act of 1974, as redesignated by section 133301(a)(2), is amended as follows: (1) In subsection (a)— (A) in paragraph (1), by striking eligible institutions and inserting eligible entities ; and (B) in paragraph (2)— (i) in the matter preceding subparagraph (A), by striking eligible institution and inserting eligible entity ; and (ii) in subparagraph (B)— (I) by striking $1,000,000 and inserting $2,500,000 ; (II) by striking (B) and inserting (B)(i) in the case of an eligible institution, ; (III) by striking the period at the end and inserting ; or ; and (IV) by adding at the end the following: (ii) in the case of a consortium of eligible institutions, a grant under this section in excess of $15,000,000. . (2) In subsection (b), by adding at the end the following: (3) Eligible entity The term eligible entity means an eligible institution or a consortium of eligible institutions. (4) Underserved community The term underserved community has the meaning given that term in section 247. . (3) In subsection (c)— (A) by striking eligible institution each place it appears and inserting eligible entity ; and (B) in paragraph (5)(A)(i)— (i) in subclause (I), by striking and at the end; and (ii) by adding at the end the following: (III) any opportunities to support industry or sector partnerships to develop or expand quality academic programs and curricula; and . (4) In subsection (d), by striking eligible institution each place it appears and inserting eligible entity . (5) By redesignating subsection (e) as subsection (h) and inserting after subsection (d) the following: (e) Use of funds (1) In general An eligible entity shall use a grant awarded under this section to establish and scale career training programs, including career and technical education programs, and career pathways and supports for students participating in such programs. (2) Student support and emergency services Not less than 15 percent of the amount of a grant awarded to an eligible entity under this section shall be used to carry out student support services, which may include the following: (A) Supportive services, including childcare, transportation, mental health services, substance use disorder prevention and treatment, assistance in obtaining health insurance coverage, housing, and other benefits, as appropriate. (B) Connecting students to State or Federal means-tested benefits programs. (C) The provision of direct financial assistance to help students facing financial hardships that may impact enrollment in or completion of a program supported by such funds. (D) Navigation, coaching, mentorship, and case management services, including providing information and outreach to the population described in subparagraph (C) to take part in such a program. (E) Providing access to necessary supplies, materials, technological devices, or required equipment, and other supports necessary to participate in such a program. (f) Plan for outreach to underserved communities (1) In general In awarding grants under this section, the Secretary shall— (A) ensure that eligible institutions effectively serve individuals from underserved communities; and (B) develop a plan to ensure that grants provided under this subchapter effectively serve individuals from underserved communities. (2) Updates The Secretary shall update the plan required by paragraph (1)(B) on an annual basis. (3) Submission to Congress The Secretary shall submit the plan required by paragraph (1)(B) and each update to the plan required by paragraph (2) to Congress. (g) Geographic diversity The Secretary shall, in awarding grants under this section, ensure that grants are awarded with respect to eligible entities from geographically diverse areas. . 4 Trade adjustment assistance for farmers 133401. Definitions Section 291 of the Trade Act of 1974 ( 19 U.S.C. 2401 ) is amended— (1) by striking paragraph (3); (2) by redesignating paragraphs (4) through (7) as paragraphs (3) through (6), respectively; and (3) by adding at the end the following: (7) Underserved community The term underserved community has the meaning given that term in section 247. . 133402. Group eligibility requirements Section 292 of the Trade Act of 1974 ( 19 U.S.C. 2401a ) is amended— (1) in subsection (c)— (A) in paragraph (1)— (i) by striking 85 percent of each place it appears; and (ii) in subparagraph (D), by adding and at the end; (B) in paragraph (2), by striking (2) and inserting (2)(A)(i) ; (C) by redesignating paragraph (3) as clause (ii) of paragraph (2)(A) (as designated by subparagraph (B)); (D) in clause (ii) of paragraph (2)(A) (as redesignated by subparagraph (C))— (i) by striking importantly ; and (ii) by striking the period at the end and inserting ; or ; and (E) in paragraph (2), by adding at the end the following: (B) (i) the volume of exports of the agricultural commodity produced by the group in the marketing year with respect to which the group files the petition decreased compared to the average volume of such exports during the 3 marketing years preceding such marketing year; and (ii) the decrease in such exports contributed to the decrease in the national average price, quantity of production, or value of production of, or cash receipts for, the agricultural commodity, as described in paragraph (1). ; and (2) in subsection (e)(3), by adding at the end before the period the following: or exports . 133403. Benefit information to agricultural commodity producers Section 295(a) of the Trade Act of 1974 ( 19 U.S.C. 2401d(a) ) is amended by adding at the end the following: The Secretary shall develop a plan to conduct targeted sustained outreach and offer assistance to agricultural commodity producers from underserved communities . 133404. Qualifying requirements and benefits for agricultural commodity producers Section 296 of the Trade Act of 1974 ( 19 U.S.C. 2401e ) is amended— (1) in subsection (a)(1)(A), by striking 90 days and inserting 120 days ; (2) in subsection (b)— (A) in paragraph (3)(B), by striking $4,000 and inserting $12,000 ; and (B) in paragraph (4)(C), by striking $8,000 and inserting $24,000 ; (3) in subsection (c), by striking $12,000 and inserting $36,000 ; and (4) by adding at the end the following new subsection: (e) Adjustments for inflation (1) In general The Secretary of Agriculture shall adjust each dollar amount limitation described in this section on the date that is 30 days after the date of the enactment of this subsection, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2020. (2) Special rules for calculation of adjustment In making an adjustment under paragraph (1), the Secretary— (A) shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and (B) may ignore any such increase of less than 1 percent. (3) Consumer Price Index defined For purposes of this subsection, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. . 5 Appropriations and other matters 133501. Extension of and appropriations for trade adjustment assistance program (a) Extension of termination provisions Section 285 of the Trade Act of 1974 ( 19 U.S.C. 2271 note) is amended by striking 2021 each place it appears and inserting 2025 . (b) Training funds Section 236(a)(2)(A) of the Trade Act of 1974 ( 19 U.S.C. 2296(a)(2)(A) ) , as amended by section 133110(c)(2)(B), is further amended— (1) by striking shall not exceed $450,000,000 and inserting the following: shall not exceed— (i) $450,000,000 ; (2) by striking the period at the end and inserting ; and ; and (3) by adding at the end the following: (ii) $1,000,000,000 for each of the fiscal years 2022 through 2025. . (c) Reemployment trade adjustment assistance Section 246(b)(1) of the Trade Act of 1974 ( 19 U.S.C. 2318(b)(1) ) is amended by striking 2021 and inserting 2025 . (d) Authorizations of appropriations (1) Trade adjustment assistance for workers Section 245 of the Trade Act of 1974 ( 19 U.S.C. 2317 ) is amended— (A) in subsection (a), by striking 2021 and inserting 2025 ; and (B) by adding at the end the following: (d) Reservation by the Secretary Of the funds appropriated to carry out this chapter for any fiscal year, the Secretary of Labor may reserve not more than 1 percent for administration of the program (in addition to amounts otherwise available for such purposes), technical assistance, grants for pilots and demonstrations, and the evaluation of activities carried out under this chapter. . (2) Trade adjustment assistance for firms Section 255(a) of the Trade Act of 1974 ( 19 U.S.C. 2345(a) ) is amended in the first sentence by adding at the end before the period the following: and $50,000,000 for each of the fiscal years 2022 through 2025 . (3) Trade adjustment assistance for community colleges and career training Subsection (a) of section 279A of the Trade Act of 1974 (as redesignated) is amended by striking $40,000,000 and all that follows through December 31, 2010, and inserting $300,000,000 for each of the fiscal years 2022 through 2025 . (4) Trade adjustment assistance for farmers Section 298 of the Trade Act of 1974 ( 19 U.S.C. 2401g(a) ) is amended— (A) in subsection (a)— (i) by striking $90,000,000 and inserting $10,000,000 ; and (ii) by striking 2021 and inserting 2025 ; and (B) by adding at the end the following: (c) Reservation by the Secretary Of the funds appropriated to carry out this chapter for any fiscal year, the Secretary of Agriculture may not reserve more than 5 percent for technical assistance, pilots and demonstrations, and the evaluation of activities carried out under this chapter. . (e) Appropriations (1) Trade adjustment assistance for workers In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until expended, to carry out the purposes of chapter 2 of title II of the Trade Act of 1974, as authorized by section 245 of the Trade Act of 1974 ( 19 U.S.C. 2317 ) (as amended by subsection (d)). (2) Trade adjustment assistance for firms In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until expended, to carry out the provisions of chapter 3 of title II of the Trade Act of 1974, as authorized by section 255 of the Trade Act of 1974 ( 19 U.S.C. 2345 ) (as amended by subsection (d)). (3) Trade adjustment assistance for communities (A) In general In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available for obligation until September 30, 2026, to carry out subchapter A of chapter 4 of title II of the Trade Act of 1974, as added by section 133301 of this Act. (B) Salaries and expenses Of the amounts appropriated pursuant subparagraph (A) for each of fiscal years 2022 through 2025, not more than $40,000,000 shall be made available for the salaries and expenses of personnel administering subchapter A of chapter 4 of title II of the Trade Act of 1974. (C) Supplement and not supplant Amounts appropriated pursuant to subparagraph (A) for each of the fiscal years 2022 through 2025 shall be used to supplement, and not supplant, other Federal, State, regional, and local government funds made available to provide economic development assistance for communities. (4) Trade adjustment assistance for community colleges and career training (A) In general In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until expended, to carry out subchapter B of chapter 4 of title II of the Trade Act of 1974, as designated by section 13301 of this Act, as authorized by section 279A of such subchapter B (as redesignated and as amended by subsection (d)). (B) Reservation by the Secretary Of the funds appropriated to carry out subchapter B of chapter 4 of title II of the Trade Act of 1974 for each of fiscal years 2022 through 2025, the Secretary of Labor may reserve not more than 5 percent for administration of the program, including providing technical assistance, sustained outreach to eligible institutions effectively serving underserved communities, grants for pilots and demonstrations, and a rigorous third-party evaluation of the program carried out under such subchapter. (5) Trade adjustment assistance for farmers In addition to amounts otherwise available, there is appropriated for each of fiscal years 2022 through 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, to carry out the purposes of chapter 6 of title II of the Trade Act of 1974, as authorized by section 298 of the Trade Act of 1974 ( 19 U.S.C. 2401 ) (as amended by subsection (d)). 133502. Applicability of trade adjustment assistance provisions (a) Workers certified before date of enactment (1) In general Except as provided in paragraphs (2) and (3), a worker certified as eligible for adjustment assistance under section 222 of the Trade Act of 1974 before the date of the enactment of this Act shall be eligible, on and after such date of enactment, to receive benefits only under the provisions of chapter 2 of title II of the Trade Act of 1974, as in effect on such date of enactment, or as such provisions may be amended after such date of enactment. (2) Computation of maximum benefits Benefits received by a worker described in paragraph (1) under chapter 2 of title II of the Trade Act of 1974 before the date of the enactment of this Act shall be included in any determination of the maximum benefits for which the worker is eligible under the provisions of chapter 2 of title II of the Trade Act of 1974, as in effect on the date of the enactment of this Act, or as such provisions may be amended after such date of enactment. (3) Authority to make adjustments to benefits For the 90-day period beginning on the date of the enactment of this Act, the Secretary is authorized to make any adjustments to benefits to workers described in paragraph (1) that the Secretary determines to be necessary and appropriate in applying and administering the provisions of chapter 2 of title II of the Trade Act of 1974, as in effect on the date of the enactment of this Act, or as such provisions may be amended after such date of enactment, in a manner that ensures parity of treatment between the benefits of such workers and the benefits of workers certified after such date of enactment. (b) Workers not certified pursuant to certain petitions filed before date of enactment (1) Certifications of workers not certified before date of enactment (A) Criteria if a determination has not been made If, as of the date of the enactment of this Act, the Secretary of Labor has not made a determination with respect to whether to certify a group of workers as eligible to apply for adjustment assistance under section 222 of the Trade Act of 1974 pursuant to a petition described in subparagraph (C), the Secretary shall make that determination based on the requirements of section 222 of the Trade Act of 1974, as in effect on such date of enactment. (B) Reconsideration of denials of certifications If, before the date of the enactment of this Act, the Secretary made a determination not to certify a group of workers as eligible to apply for adjustment assistance under section 222 of the Trade Act of 1974 pursuant to a petition described in subparagraph (C), the Secretary shall— (i) reconsider that determination; and (ii) if the group of workers meets the requirements of section 222 of the Trade Act of 1974, as in effect on such date of enactment, certify the group of workers as eligible to apply for adjustment assistance. (C) Petition described A petition described in this subparagraph is a petition for a certification of eligibility for a group of workers filed under section 221 of the Trade Act of 1974 on or after January 1, 2021, and before the date of the enactment of this Act. (2) Eligibility for benefits (A) In general Except as provided in subparagraph (B), a worker certified as eligible to apply for adjustment assistance under section 222 of the Trade Act of 1974 pursuant to a petition described in paragraph (1)(C) shall be eligible, on and after the date of the enactment of this Act, to receive benefits only under the provisions of chapter 2 of title II of the Trade Act of 1974, as in effect on such date of enactment, or as such provisions may be amended after such date of enactment. (B) Computation of maximum benefits Benefits received by a worker described in paragraph (1) under chapter 2 of title II of the Trade Act of 1974 before the date of the enactment of this Act shall be included in any determination of the maximum benefits for which the worker is eligible under the provisions of chapter 2 of title II of the Trade Act of 1974, as in effect on the date of the enactment of this Act, or as such provisions may be amended after such date of enactment. (c) Conforming amendments (1) Trade Act of 2002 Section 151 of the Trade Act of 2002 (19 U.S.C. note prec. 2271) is amended by striking subsections (a), (b), and (c). (2) Trade and Globalization Adjustment Assistance Act of 2009 Section 1891 of the Trade and Globalization Adjustment Assistance Act of 2009 ( 19 U.S.C. 2271 note) is repealed. (3) Trade Adjustment Assistance Extension Act of 2011 The Trade Adjustment Assistance Extension Act of 2011 is amended— (A) in section 201 (19 U.S.C. note prec. 2271), by striking subsections (b) and (c); and (B) in section 231(a) ( 19 U.S.C. 2271 note), by striking paragraphs (1)(B) and (2). (4) Trade Adjustment Assistance Reauthorization Act of 2015 The Trade Adjustment Assistance Reauthorization Act of 2015 is amended— (A) in section 402 (19 U.S.C. note prec. 2271), by striking subsections (b) and (c); and (B) in section 405(a)(1) ( 19 U.S.C. 2319(a)(1) ), by striking subparagraph (B). (d) Trade adjustment assistance for firms (1) Certification of firms not certified before date of enactment (A) Criteria if a determination has not been made If, as of the date of the enactment of this Act, the Secretary of Commerce has not made a determination with respect to whether to certify a firm as eligible to apply for adjustment assistance under section 251 of the Trade Act of 1974 pursuant to a petition described in subparagraph (C), the Secretary shall make that determination based on the requirements of section 251 of the Trade Act of 1974, as in effect on such date of enactment. (B) Reconsideration of denial of certain petitions If, before the date of the enactment of this Act, the Secretary made a determination not to certify a firm as eligible to apply for adjustment assistance under section 251 of the Trade Act of 1974 pursuant to a petition described in subparagraph (C), the Secretary shall— (i) reconsider that determination; and (ii) if the firm meets the requirements of section 251 of the Trade Act of 1974, as in effect on such date of enactment, certify the firm as eligible to apply for adjustment assistance. (C) Petition described A petition described in this subparagraph is a petition for a certification of eligibility filed by a firm or its representative under section 251 of the Trade Act of 1974 on or after January 1, 2021, and before the date of the enactment of this Act. (2) Certification of firms that did not submit petitions between january 1, 2021, and date of enactment (A) In general The Secretary of Commerce shall certify a firm described in subparagraph (B) as eligible to apply for adjustment assistance under section 251 of the Trade Act of 1974, as in effect on the date of the enactment of this Act, if the firm or its representative files a petition for a certification of eligibility under section 251 of the Trade Act of 1974 not later than 90 days after such date of enactment. (B) Firm described A firm described in this subparagraph is a firm that the Secretary determines would have been certified as eligible to apply for adjustment assistance if— (i) the firm or its representative had filed a petition for a certification of eligibility under section 251 of the Trade Act of 1974 on a date during the period beginning on January 1, 2021, and ending on the day before the date of the enactment of this Act; and (ii) the provisions of chapter 3 of title II of the Trade Act of 1974, as in effect on such date of enactment, had been in effect on that date during the period described in clause (i). 133503. Sunset provisions (a) Application of prior law Subject to subsection (b), beginning on July 1, 2025, the provisions of chapters 2, 3, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271-2401g), as in effect on January 1, 2014, shall be in effect and apply, except that in applying and administering such chapters— (1) paragraph (1) of section 231(c) of that Act shall be applied and administered as if subparagraphs (A), (B), and (C) of that paragraph were not in effect; (2) section 233 of that Act shall be applied and administered— (A) in subsection (a)— (i) in paragraph (2), by substituting 104-week period for 104-week period and all that follows through 130-week period) ; and (ii) in paragraph (3)— (I) in the matter preceding subparagraph (A), by substituting 65 for 52 ; and (II) by substituting 78-week period for 52-week period each place it appears; and (B) by applying and administering subsection (g) as if it read as follows: (g) Payment of trade readjustment allowances To complete training Notwithstanding any other provision of this section, in order to assist an adversely affected worker to complete training approved for the worker under section 236 that leads to the completion of a degree or industry-recognized credential, payments may be made as trade readjustment allowances for not more than 13 weeks within such period of eligibility as the Secretary may prescribe to account for a break in training or for justifiable cause that follows the last week for which the worker is otherwise entitled to a trade readjustment allowance under this chapter if— (1) payment of the trade readjustment allowance for not more than 13 weeks is necessary for the worker to complete the training; (2) the worker participates in training in each such week; and (3) the worker— (A) has substantially met the performance benchmarks established as part of the training approved for the worker; (B) is expected to continue to make progress toward the completion of the training; and (C) will complete the training during that period of eligibility. ; (3) section 245(a) of that Act shall be applied and administered by substituting June 30, 2025 for December 31, 2007 ; (4) section 246(b)(1) of that Act shall be applied and administered by substituting June 30, 2025 for the date that is 5 years and all that follows through State ; (5) section 256(b) of that Act shall be applied and administered by substituting the 1-year period beginning on July 1, 2025 for each of fiscal years 2003 through 2007, and $4,000,000 for the 3-month period beginning on October 1, 2007 ; (6) section 298(a) of that Act shall be applied and administered by substituting the 1-year period beginning on July 1, 2025 for each of the fiscal years and all that follows through October 1, 2007 ; and (7) section 285 of that Act shall be applied and administered— (A) in subsection (a), by substituting June 30, 2026 for December 31, 2007 each place it appears; and (B) by applying and administering subsection (b) as if it read as follows: (b) Other assistance (1) Assistance for firms (A) In general Except as provided in subparagraph (B), assistance may not be provided under chapter 3 after June 30, 2026. (B) Exception Notwithstanding subparagraph (A), any assistance approved under chapter 3 pursuant to a petition filed under section 251 on or before June 30, 2026, may be provided— (i) to the extent funds are available pursuant to such chapter for such purpose; and (ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. (2) Farmers (A) In general Except as provided in subparagraph (B), assistance may not be provided under chapter 6 after June 30, 2026. (B) Exception Notwithstanding subparagraph (A), any assistance approved under chapter 6 on or before June 30, 2026, may be provided— (i) to the extent funds are available pursuant to such chapter for such purpose; and (ii) to the extent the recipient of the assistance is otherwise eligible to receive such assistance. . (b) Exceptions The provisions of chapters 2, 3, 5, and 6 of title II of the Trade Act of 1974, as in effect on the date of the enactment of this Act, shall continue to apply on and after July 1, 2025, with respect to— (1) workers certified as eligible for trade adjustment assistance benefits under chapter 2 of title II of that Act pursuant to petitions filed under section 221 of that Act before July 1, 2025; (2) firms certified as eligible for technical assistance or grants under chapter 3 of title II of that Act pursuant to petitions filed under section 251 of that Act before July 1, 2025; and (3) agricultural commodity producers certified as eligible for technical or financial assistance under chapter 6 of title II of that Act pursuant to petitions filed under section 292 of that Act before July 1, 2025. D Career Pathways and Social Services 1 Provisions Relating to Pathways to Health Careers 134101. Pathways to Health Careers Effective October 1, 2021, title XX of the Social Security Act (42 U.S.C. 1397–1397n–13) is amended by adding at the end the following: D Career pathways through health profession opportunity grants 2071. Career pathways through health profession opportunity grants (a) Application requirements An eligible entity desiring a grant under this section for a project shall submit to the Secretary an application for the grant, that includes the following: (1) A description of how the applicant will use a career pathways approach to train eligible individuals for health professions that will put eligible individuals on a career path to an occupation that pays well, under the project. (2) A description of the adult basic education and literacy activities, work readiness activities, training activities, and case management and career coaching services that the applicant will use to assist eligible individuals to gain work experience, connection to employers, and job placement, and a description of the plan for recruiting, hiring, and training staff to provide the case management, mentoring, and career coaching services, under the project directly or through local governmental, apprenticeship, educational, or charitable institutions. (3) A demonstration that the applicant has experience working with low-income populations, or a description of the plan of the applicant to work with a partner organization that has the experience. (4) A plan for providing post-employment support and ongoing training as part of a career pathway under the project. (5) A description of the support services that the applicant will provide under the project, including a plan for how child care and transportation support services will be guaranteed and, if the applicant will provide a cash stipend or wage supplement, how the stipend or supplement would be calculated and distributed. (6) A certification by the applicant that the project development included— (A) consultation or commitment to consult with a local workforce development board; (B) consideration of registered apprenticeship and pre-apprenticeship models; (C) consideration of career pathway programs in the State in which the project is to be conducted; and (D) a review of the State plan under section 102 or 103 of the Workforce Innovation and Opportunity Act. (7) A description of the availability and relevance of recent labor market information and other pertinent evidence of in-demand jobs or worker shortages. (8) A certification that the applicant will directly provide or contract for the training services described in the application. (9) A commitment by the applicant that, if the grant is made to the applicant, the applicant will— (A) during the planning period for the project, provide the Secretary with any information needed by the Secretary to establish adequate data reporting and administrative structure for the project; (B) hire a person to direct the project not later than the end of the planning period applicable to the project; (C) accept all technical assistance offered by the Secretary with respect to the grant; (D) participate in peer technical assistance conferences as are regularly scheduled by the Secretary; and (E) provide all data required by the Secretary under subsection (g). (b) Additional application element In considering applications for a grant under this section, the Secretary shall require qualified applicants to have at least 1 of the following application elements— (1) applications submitted by applicants to whom a grant was made under this section or any predecessor to this section; (2) applications submitted by applicants who have business and community partners in each of the following categories: (A) State and local government agencies and social service providers, including a State or local entity that administers a State program funded under part A of this title; (B) institutions of higher education, apprenticeship programs, and local workforce development boards; and (C) health care employers, health care industry or sector partnerships, labor unions, and labor-management partnerships; (3) applications that include opportunities for mentoring or peer support, and make career coaching available, as part of the case management plan; (4) applications which describe a project that will serve a rural area in which— (A) the community in which the individuals to be enrolled in the project reside is located; (B) the project will be conducted; or (C) an employer partnership that has committed to hiring individuals who successfully complete all activities under the project is located; (5) applications that include a commitment to providing project participants with a cash stipend or wage supplement; and (6) applications which have an emergency cash fund to assist project participants financially in emergency situations. (c) Grants (1) Competitive grants (A) Grant authority (i) In general The Secretary shall make a grant in accordance with this paragraph to an eligible entity whose application for the grant is approved by the Secretary, to conduct a project designed to train low-income individuals for allied health professions, health information technology, physician assistants, nursing assistants, registered nurse, advanced practice nurse, and other professions considered part of a health care career pathway model. (ii) Guarantee of grantees in each state and the district of columbia For each grant cycle, the Secretary shall award a grant under this paragraph to at least 2 eligible entities in each State that is not a territory, to the extent there are a sufficient number of applications that have a high likelihood of success and that are submitted by the entities that meet the requirements applicable with respect to such a grant. If, for a grant cycle, there are fewer than 2 such eligible entities in a State that have submitted applications with a high likelihood of success, the Secretary shall identify qualified eligible applicants located elsewhere, that are otherwise approved but un-funded, and issue a Substitution of Grant and tailored technical assistance. In the preceding sentence, the term issue a Substitution of Grant means, in a case in which an approved grantee does not complete its full project period, or in which there are fewer than 2 qualified grantees per State with a high likelihood of success, substitute an applicant located in another State that was approved but un-funded during the competition for the award for the award recipient. (B) Guarantee of grants for indian populations The Secretary shall award a grant under this paragraph to at least 10 eligible entities that are an Indian tribe, an Alaska Native Corporation, a tribal organization, or a tribal college or university, to the extent there are a sufficient number of applications submitted by the entities that meet the requirements applicable with respect to such a grant. (C) Guarantee of grantees in the territories The Secretary shall award a grant under this paragraph to at least 2 eligible entities that are located in a territory, to the extent there are a sufficient number of applications submitted by the entities that meet the requirements applicable with respect to such a grant. (2) Grant cycle The grant cycle under this section shall be not less than 5 years, with a planning period of not more than the first 12 months of the grant cycle. During the planning period, the amount of the grant shall be in such lesser amount as the Secretary determines appropriate. (d) Use of grant (1) In general An entity to which a grant is made under this section shall use the grant in accordance with the approved application for the grant. (2) Support to be provided (A) Required support A project for which a grant is made under this section shall include the following: (i) An assessment for adult basic skill competency, and provision of adult basic skills education if necessary for lower-skilled eligible individuals to enroll in the project and go on to enter and complete post-secondary training, through means including the following: (I) Establishing a network of partners that offer pre-training activities for project participants who need to improve basic academic skills or English language proficiency before entering a health occupational training career pathway program. (II) Offering resources to enable project participants to continue advancing adult basic skill proficiency while enrolled in a career pathway program. (III) Embedding adult basic skill maintenance as part of ongoing post-graduation career coaching and mentoring. (ii) A guarantee that child care is an available and affordable support service for project participants through means such as the following: (I) Referral to, and assistance with, enrollment in a subsidized child care program. (II) Direct payment to a child care provider if a slot in a subsidized child care program is not available or reasonably accessible. (III) Payment of co-payments or associated fees for child care. (iii) Case management plans that include career coaching (with the option to offer appropriate peer support and mentoring opportunities to help develop soft skills and social capital), which may be offered on an ongoing basis before, during, and after initial training as part of a career pathway model. (iv) A plan to provide project participants with transportation through means such as the following: (I) Referral to, and assistance with enrollment in, a subsidized transportation program. (II) If a subsidized transportation program is not reasonably available, direct payments to subsidize transportation costs. For purposes of this clause, the term transportation includes public transit, or gasoline for a personal vehicle if public transit is not reasonably accessible or available. (B) Allowed support The goods and services provided under a project for which a grant is made under this section may include the following: (i) A cash stipend. (ii) A reserve fund for financial assistance to project participants in emergency situations. (iii) Tuition, certification exam fees, and training materials such as books, software, uniforms, shoes, connection to the internet, hair nets, and personal protective equipment. (iv) In-kind resource donations such as interview clothing and conference attendance fees. (v) Assistance with accessing and completing high school equivalency or adult basic education courses as necessary to achieve success in the project and make progress toward career goals. (vi) Assistance with programs and activities, including legal assistance, deemed necessary to address arrest or conviction records as an employment barrier. (vii) Other support services as deemed necessary for family well-being, success in the project, and progress toward career goals. (3) Training The number of hours of training provided to an eligible individual under a project for which a grant is made under this section, for a recognized postsecondary credential (including an industry-recognized credential, and a certificate awarded by a local workforce development board), which is awarded in recognition of attainment of measurable technical or occupational skills necessary to gain employment or advance within an occupation, shall be— (A) not less than the number of hours of training required for certification in that level of skill by the State in which the project is conducted; or (B) if there is no such requirement, such number of hours of training as the Secretary finds is necessary to achieve that skill level. (4) Inclusion of TANF recipients In the case of a project for which a grant is made under this section that is conducted in a State that has a program funded under part A of title IV, at least 10 percent of the eligible individuals to whom support is provided under the project shall meet the income eligibility requirements under that State program, without regard to whether the individuals receive benefits or services directly under that State program. (5) Income limitation An entity to which a grant is made under this section shall not use the grant to provide support to a person who is not an eligible individual. (6) Prohibition An entity to which a grant is made under this section shall not use the grant for purposes of entertainment, except that case management and career coaching services may include celebrations of specific career-based milestones such as completing a semester, graduation, or job placement. (e) Technical assistance (1) In general The Secretary shall provide technical assistance— (A) to assist eligible entities in applying for grants under this section; (B) that is tailored to meet the needs of grantees at each stage of the administration of projects for which grants are made under this section; (C) that is tailored to meet the specific needs of Indian tribes, Alaska Native Corporations, tribal organizations, and tribal colleges and universities; (D) that is tailored to meet the specific needs of the territories; (E) that is tailored to meet the specific needs of applicants, eligible entities, and grantees, in carrying out dedicated career pathway projects pursuant to subsections (h) and (i); and (F) to facilitate the exchange of information among eligible entities regarding best practices and promising practices used in the projects. (2) Continuation of peer technical assistance conferences The Secretary shall continue to hold peer technical assistance conferences for entities to which a grant is made under this section or was made under the immediate predecessor of this section. The preceding sentence shall not be interpreted to require any such conference to be held in person. (f) Evaluation of dedicated career pathways (1) In general The Secretary shall, by grant, contract, or interagency agreement, conduct rigorous and well-designed evaluations of the dedicated career pathway projects carried out pursuant to subsections (h) and (i). (2) Requirement applicable to second chance career pathway In the case of a project of the type described in subsection (i), the evaluation shall include identification of successful activities for creating opportunities for developing and sustaining, particularly with respect to low-income individuals with arrest or conviction records, a health professions workforce that has accessible entry points, that meets high standards for education, training, certification, and professional development, and that provides increased wages and affordable benefits, including health care coverage, that are responsive to the needs of the workforce. (3) Requirement applicable to maternal mortality career pathway In the case of a project of the type described in subsection (h), the evaluation shall include identification of successful activities for creating opportunities for developing and sustaining, particularly with respect to low-income individuals and other entry-level workers, a career pathway that has accessible entry points, that meets high standards for education, training, certification, and professional development, and that provides increased wages and affordable benefits, including health care coverage, that are responsive to the needs of the birth, pregnancy, and post-partum workforce. (g) Reports As a condition of funding, an eligible entity awarded a grant to conduct a project under this section shall submit interim reports to the Secretary on the activities carried out under the project, and, on the conclusion of the project, a final report on the activities. (h) Maternal mortality career pathway (1) Grant authority The Secretary shall award grants in accordance with this subsection to eligible entities to conduct career pathway projects for the purpose of providing education for professions such as doulas, lactation consultants, childbirth educators, infant massage therapists, newborn care specialists, midwives, and other community health worker professions, for individuals to enter and follow a dedicated career pathway in the field of pregnancy, childbirth, or post-partum services in a State that recognizes doulas or midwives as health care providers and that provides payment for services provided by doulas or midwives, as the case may be, under the State plan approved under title XIX. (2) Duration A grant awarded under this subsection shall have the same grant cycle as is provided in subsection (c)(2), and as a condition of funding the grantee shall comply with all data reporting requirements associated with the grant cycle. (3) Application requirements An entity seeking a grant under this subsection for a project shall submit to the Secretary an application for the grant, that includes the following: (A) A description of the partnerships, strategic staff hiring decisions, tailored program activities, or other programmatic elements of the project that are designed to support a strong career pathway in pregnancy, birth, or post-partum services. (B) A demonstration that the State in which the project is to be conducted recognizes and permits doulas and midwives to practice in the State. (C) A demonstration that the applicant has experience working with low-income populations, or a description of the plan of the applicant to work with a partner that has the experience. (4) Support to be provided The recipient of a grant under this subsection for a project shall provide required supportive services described in subsection (d)(2)(A) to project participants who need the services, and may expend the funding on eligible supportive services described in subsection (d)(2)(B). (i) Second chance career pathway (1) Grant authority The Secretary shall award grants in accordance with this subsection to eligible entities to conduct career pathway projects for the purpose of providing education and training for eligible individuals with arrest or conviction records to enter and follow a career pathway in the health professions through occupations that are expected to experience a labor shortage or be in high demand. (2) Duration A grant awarded under this subsection shall have the same grant cycle as is provided in subsection (c)(2), and as a condition of funding the grantee shall comply with all data reporting requirements associated with the grant cycle. (3) Application requirements An entity seeking a grant under this subsection for a project shall submit to the Secretary an application for the grant, that includes the following: (A) A demonstration that the State in which the project is to be conducted has in effect policies or laws that permit certain allied health and behavioral health care credentials to be awarded to people with certain arrest or conviction records (which policies or laws shall include appeals processes and other opportunities to demonstrate rehabilitation to obtain licensure and approval to work in the proposed health careers), and a plan described in the application which will use a legally permitted career pathway to train people with such a record to be trained and employed in such a career. (B) A discussion of how the project or future strategic hiring decisions will demonstrate the experience and expertise of the project in working with job seekers who have arrest or conviction records or employers with experience working with people with arrest or conviction records. (C) A demonstration that the applicant has experience working with low-income populations, or a description of the plan of the applicant to work with a partner that has the experience. (D) An identification of promising innovations or best practices that can be used to provide the training. (E) A proof of concept or demonstration that the applicant has done sufficient research on workforce shortage or in-demand jobs for which people with certain types of criminal records can be hired. (F) A plan for recruiting students who are eligible individuals into the project. (G) A plan for providing post-employment support and ongoing training as part of a career pathway under the project. (4) Support to be provided (A) Required support A recipient of a grant under this subsection for a project shall provide— (i) access to legal assistance for project participants for the purpose of addressing arrest or conviction records and associated workforce barriers; (ii) assistance with programs and activities deemed necessary to address arrest or conviction records as an employment barrier; (iii) required supportive services described in subsection (d)(2)(A) to participants who need the services, and may expend funds on eligible supportive services described in subsection (d)(2)(B). (j) Definitions In this section: (1) Alaska Native Corporation The term Alaska Native Corporation has the meaning given the term in section 3(m) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ). (2) Allied health profession The term allied health profession has the meaning given the term in section 799B(5) of the Public Health Service Act. (3) Career pathway The term career pathway has the meaning given the term in section 3(7) of the Workforce Innovation and Opportunity Act. (4) Doula The term doula means an individual who— (A) is certified by an organization that has been established for not less than 5 years and that requires the completion of continuing education to maintain the certification, to provide non-medical advice, information, emotional support, and physical comfort to an individual during the individual’s pregnancy, childbirth, and post-partum period; and (B) maintains the certification by completing the required continuing education. (5) Eligible entity The term eligible entity means any of the following entities that demonstrates in an application submitted under this section that the entity has the capacity to fully develop and administer the project described in the application: (A) A local workforce development board established under section 107 of the Workforce Innovation and Opportunity Act. (B) A State or territory, a political subdivision of a State or territory, or an agency of a State, territory, or such a political subdivision, including a State or local entity that administers a State program funded under part A of this title. (C) An Indian tribe, an Alaska Native Corporation, a tribal organization, or a tribal college or university. (D) An institution of higher education (as defined in the Higher Education Act of 1965). (E) A hospital (as defined in section 1861(e)). (F) A high-quality skilled nursing facility. (G) A Federally qualified health center (as defined in section 1861(aa)(4)). (H) A nonprofit organization described in section 501(c)(3) of the Internal Revenue Code of 1986, a labor organization, or an entity with shared labor-management oversight, that has a demonstrated history of providing health profession training to eligible individuals. (I) In the case of a project of the type provided for in subsection (h) of this section, an entity recognized by a State, an Indian tribe, an Alaska Native Corporation, or a tribal organization as qualified to train doulas or midwives, if midwives or doulas, as the case may be, are permitted to practice in the State involved. (J) An opioid treatment program (as defined in section 1861(jjj)(2)), and other high quality comprehensive addiction care providers. (6) Eligible individual The term eligible individual means an individual whose family income does not exceed 200 percent of the Federal poverty level. (7) Federal poverty level The term Federal poverty level means the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section applicable to a family of the size involved). (8) Institution of higher education The term institution of higher education has the meaning given the term in section 101 or 102(a)(1)(B) of the Higher Education Act of 1965. (9) Territory The term territory means the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. (10) Tribal college or university The term tribal college or university has the meaning given the term in section 316(b) of the Higher Education Act of 1965. (11) Tribal organization The term tribal organization means the recognized governing body of any Indian tribe; any legally established organization of Indians which is controlled, sanctioned, or chartered by such governing body or which is democratically elected by the adult members of the Indian community to be served by such organization and which includes the maximum participation of Indians in all phases of its activities. (k) Funding In addition to amounts otherwise available, there is appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated— (1) for grants under subsection (c)(1)(A)— (A) $318,750,000 for fiscal year 2022; and (B) $338,108,438 for each of fiscal years 2023 through 2026; (2) for grants under subsection (c)(1)(B)— (A) $17,000,000 for fiscal year 2022; and (B) $18,027,650 for each of fiscal years 2023 through 2026; (3) for grants under subsection (c)(1)(C)— (A) $21,250,000 for fiscal year 2022; and (B) $22,534,563 for each of fiscal years 2023 through 2026; (4) for projects conducted under subsections (h) and (i), $27,041,475 for each of fiscal years 2023 through 2026; (5) for the provision of technical assistance and administration— (A) for fiscal year 2022, $25,500,000 plus all amounts referred to in paragraphs (1) through (3) of this subsection that remain unused after all grant awards are made for the fiscal year; and (B) for each of fiscal years 2023 through 2026, $27,041,475 plus all amounts referred to in paragraphs (1) through (4) of this subsection that remain unused after all grant awards are made for the fiscal year; and (6) for studying the effects of the projects for which a grant is made under this section, and for administration, for the purpose of supporting the rigorous evaluation of the projects, and supporting the continued study of the short-, medium-, and long-term effects of all such projects, including the effectiveness of new or added elements of the projects— (A) $17,000,000 for fiscal year 2022; and (B) $18,027,650 for each of fiscal years 2023 through 2026. . 2 Provisions Relating to Elder Justice 134201. Reauthorization of funding for programs to prevent and investigate elder abuse, neglect, and exploitation (a) Long-term care staff training grants Section 2041 of the Social Security Act ( 42 U.S.C. 1397m ) is amended to read as follows: 2041. Nursing home worker training grants (a) Appropriation Out of any funds in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there is appropriated to the Secretary for each of fiscal years 2023 through 2026— (1) $415,696,400 for grants under subsection (b)(1); and (2) $8,483,600 for grants under subsection (b)(2). (b) Grants (1) State entitlement (A) In general Each State shall be entitled to receive from the Secretary for each fiscal year specified in subsection (a) a grant in an amount equal to the amount allotted to the State under subparagraph (B) of this paragraph. (B) State allotments The amount allotted to a State under this subparagraph for a fiscal year shall be— (i) the amount made available by subsection (a) for the fiscal year that is not required to be reserved by subsection (a); multiplied by (ii) (I) the number of State residents who have attained 65 years of age or are individuals with a disability, as determined by the Secretary using the most recent version of the American Community Survey published by the Bureau of the Census or a successor data set; divided by (II) the total number of such residents of all States. (2) Grants to Indian tribes and tribal organizations (A) In general The Secretary, in consultation with the Indian tribes and tribal organizations, shall make grants in accordance with this section to Indian tribes and tribal organizations who operate at least 1 eligible setting. (B) Grant formula The Secretary, in consultation with the Indian tribes and tribal organizations, shall devise a formula for distributing among Indian tribes and tribal organizations the amount required to be reserved by subsection (a) for each fiscal year. (3) Sub-grants A State, Indian tribe, or tribal organization to which an amount is paid under this paragraph may use the amount to make sub-grants to local organizations, including community organizations, local non-profits, elder rights and justice groups, and workforce development boards for any purpose described in paragraph (1) or (2) of subsection (c). (c) Use of funds (1) Required uses A State to which an amount is paid under subsection (b) shall use the amount to— (A) provide wage subsidies to eligible individuals; (B) provide student loan repayment or tuition assistance to eligible individuals for a degree or certification in a field relevant to their position referred to in subsection (f)(1)(A); (C) guarantee affordable and accessible child care for eligible individuals, including help with referrals, co-pays, or other direct assistance; and (D) provide assistance where necessary with obtaining appropriate transportation, including public transportation if available, or gas money or transit vouchers for ride share, taxis, and similar types of transportation if public transportation is unavailable or impractical based on work hours or location. (2) Authorized uses A State to which an amount is paid under subsection (b) may use the amount to— (A) establish a reserve fund for financial assistance to eligible individuals in emergency situations; (B) provide in-kind resource donations, such as interview clothing and conference attendance fees; (C) provide assistance with programs and activities, including legal assistance, deemed necessary to address arrest or conviction records that are an employment barrier; (D) support employers operating an eligible setting in the State in providing employees with not less than 2 weeks of paid leave per year; or (E) provide other support services the Secretary deems necessary to allow for successful recruitment and retention of workers. (3) Provision of funds only for the benefit of eligible individuals in eligible settings A State to which an amount is paid under subsection (b) may provide the amount to only an eligible individual or a partner organization serving an eligible individual. (4) Nonsupplantation A State to which an amount is paid under subsection (b) shall not use the amount to supplant the expenditure of any State funds for recruiting or retaining employees in an eligible setting. (d) Administration A State to which a grant is made under subsection (b) shall reserve not more than 10 percent of the grant to— (1) administer subgrants in accordance with this section; (2) provide technical assistance and support for applying for and accessing such a subgrant opportunity; (3) publicize the availability of the subgrants; (4) carry out activities to increase the supply of eligible individuals; and (5) provide technical assistance to help subgrantees find and train individuals to provide the services for which they are contracted. (e) Definitions In this section: (1) Eligible individual The term eligible individual means an individual who— (A) (i) is a qualified home health aide, as defined in section 484.80(a) of title 42, Code of Federal Regulations; (ii) is a nurse aide approved by the State as meeting the requirements of sections 483.150 through 483.154 of such title, and is listed in good standing on the State nurse aide registry; (iii) is a personal care aide approved by the State, and furnishes personal care services, as defined in section 440.167 of such title; (iv) is a qualified hospice aide, as defined in section 418.76 of such title; or (v) is a licensed practical nurse or a licensed or certified social worker; or (vi) is receiving training to be certified or licensed as such an aide, nurse, or social worker; and (B) provides (or, in the case of a trainee, intends to provide) services as such an aide, nurse, or social worker in an eligible setting. (2) Eligible setting The term eligible setting means— (A) a skilled nursing facility, as defined in section 1819; (B) a nursing facility, as defined in section 1919; (C) a home health agency, as defined in section 1891; (D) a facility provider approved to deliver home or community-based services authorized under State options described in subsection (c) or (i) of section 1915 or, as relevant, demonstration projects authorized under section 1115; (E) a hospice, as defined in section 1814; (F) an intermediate care facility, as defined in section 1905(d); or (G) a tribal assisted living facility. (3) Tribal organization The term tribal organization has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act. . (b) Adult protective services functions and grant programs (1) Direct funding; State entitlement Section 2042 of the Social Security Act ( 42 U.S.C. 1397m–1 ) is amended— (A) in subsection (a)— (i) in paragraph (1)(A)— (I) by striking offices and inserting programs ; and (II) by inserting and adults who are under a disability (as defined in section 216(i)(1)) before the semicolon; and (ii) by striking paragraph (2) and inserting the following: (2) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary $8,483,600 for each of fiscal years 2023 through 2025 to carry out this subsection. ; (B) in subsection (b)— (i) in paragraph (2)— (I) in subparagraph (A), by striking the availability of appropriations and ; and (II) in subparagraph (B)— (aa) in the heading for clause (i), by inserting and the district of columbia after States ; and (bb) in clause (ii), by inserting or the District of Columbia after States ; and (ii) by striking paragraph (5) and inserting the following: (5) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary for each of fiscal years 2023 through 2025— (A) $415,696,400 for grants to States under this subsection; and (B) $8,483,600 for grants to Indian tribes and tribal organizations under this subsection. ; and (C) in subsection (c), by striking paragraph (6) and inserting the following: (6) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary $79,533,750 for each of fiscal years 2023 through 2025 to carry out this subsection. . (2) State entitlement; grants to Indian tribes and tribal organizations Section 2042 of such Act ( 42 U.S.C. 1397m–1 ) is amended— (A) in subsection (a)(1)(A), by striking State and local and inserting State, local, and tribal ; (B) in subsection (b)(1), by striking the Secretary shall annually award grants to States in the amounts calculated under paragraph (2) and inserting each State shall be entitled to annually receive from the Secretary in the amounts calculated under paragraph (2), and the Secretary may annually award to each Indian tribe and tribal organization in accordance with paragraph (3), grants ; (C) in subsection (b)(2)— (i) in the paragraph heading, by inserting for a State after payment ; (ii) in subparagraph (A), by striking to carry out and inserting for grants to States under ; and (iii) in subparagraph (B)(i), by striking such year and inserting for grants to States under this subsection for the fiscal year ; and (D) in subsection (b), by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively, and inserting after paragraph (2) the following: (3) Amount of payment to Indian tribe or tribal organization The Secretary, in consultation with Indian tribes and tribal organizations, shall determine the amount of any grant to be made to each Indian tribe and tribal organization under this subsection. Paragraphs (4) and (5) shall apply to grantees under this paragraph in the same manner in which the paragraphs apply to States. ; (E) in subsection (c)— (i) in paragraph (1), by striking to States and inserting to States, Indian tribes, and tribal organizations ; (ii) in paragraph (2)— (I) in the matter preceding subparagraph (A), by inserting and Indian tribes and tribal organizations after government ; and (II) in subparagraph (D), by inserting or Indian tribe or tribal organization, as the case may be after government ; (iii) in paragraph (4), by inserting or Indian tribe or tribal organization after a State the 1st place it appears; and (iv) in paragraph (5)— (I) by inserting or Indian tribe or tribal organization after Each State ; and (II) by inserting or Indian tribe or tribal organization, as the case may be after the State ; and (F) by adding at the end the following: (d) Definitions of Indian tribe and tribal organization In this section, the terms Indian tribe and tribal organization have the meanings given the terms in section 419. . (3) Conforming amendment Section 2011(2) of such Act ( 42 U.S.C. 1397j(2) ) is amended by striking such services provided to adults as the Secretary may specify and inserting services provided by an entity authorized by or under State law address neglect, abuse, and exploitation of older adults and people with disabilities . (c) Long-term care ombudsman program grants and training Section 2043 of the Social Security Act ( 42 U.S.C. 1397m–2 ) is amended— (1) in subsection (a), by striking paragraph (2) and inserting the following: (2) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary to carry out this subsection— (A) $23,860,125 for fiscal year 2023; and (B) $31,813,500 for each of fiscal years 2024 and 2025. ; and (2) in subsection (b), by striking paragraph (2) and inserting the following: (2) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary $31,813,500 for each of fiscal years 2023 through 2025 to carry out this subsection. . (d) Incentives for developing and sustaining structural competency in providing health and human services Part II of subtitle B of title XX of the Social Security Act (42 U.S.C. 1397m-1397m–5) is amended by adding at the end the following: 2047. Incentives for developing and sustaining structural competency in providing health and human services (a) Grants to States to support linkages to legal services and medical legal partnerships (1) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary $530,225,000 for fiscal year 2023, to remain available for the purposes of this subsection through fiscal year 2028. (2) Grants Within 2 years after the date of the enactment of this section, the Secretary shall establish and administer a program of grants to States to support the adoption of evidence-based approaches to establishing or improving and maintaining real-time linkages between health and social services and supports for vulnerable elders or in conjunction with authorized representatives of vulnerable elders, including through the following: (A) Medical-legal partnerships The establishment and support of medical-legal partnerships, the incorporation of the partnerships in the elder justice framework and health and human services safety net, and the implementation and operation of such a partnership by an eligible grantee— (i) at the option of a State, in conjunction with an area agency on aging; (ii) in a solo provider practice in a health professional shortage area (as defined in section 332(a) of the Public Health Service Act), a medically underserved community (as defined in section 399V of such Act), or a rural area (as defined in section 330J of such Act); (iii) in a minority-serving institution of higher learning with health, law, and social services professional programs; (iv) in a federally qualified health center, as described in section 330 of the Public Health Service Act, or look-alike, as described in section 1905(l)(2)(B) of this Act; or (v) in certain hospitals that are critical access hospitals, Medicare-dependent hospitals, sole community hospitals, rural emergency hospitals, or that serve a high proportion of Medicare or Medicaid patients. (B) Legal hotlines development or expansion The provision of incentives to develop, enhance, and integrate platforms, such as legal assistance hotlines, that help to facilitate the identification of older adults who could benefit from linkages to available legal services such as those described in subparagraph (A). (3) State reports Each State to which a grant is made under this subsection shall submit to the Secretary biannual reports on the activities carried out by the State pursuant to this subsection, which shall include assessments of the effectiveness of the activities with respect to— (A) the number of unique individuals identified through the mechanism outlined in paragraph (2)(B) who are referred to services described in paragraph (2)(A), and the average time period associated with resolving issues; (B) the success rate for referrals to community-based resources; and (C) other factors determined relevant by the Secretary. (4) Evaluation The Secretary shall, by grant, contract, or interagency agreement, evaluate the activities conducted pursuant to this subsection, which shall include a comparison among the States. (5) Supplement not supplant Support provided to area agencies on aging, State units on aging, eligible entities, or other community-based organizations pursuant to this subsection shall be used to supplement and not supplant any other Federal, State, or local funds expended to provide the same or comparable services described in this subsection. (b) Grants and training to support area agencies on aging or other community-based organizations to address social isolation among vulnerable older adults and people with disabilities (1) Appropriation Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary $265,112,500 for fiscal year 2023, to remain available for the purposes of this subsection through fiscal year 2028. (2) Grants The Secretary shall make grants to eligible area agencies on aging or other community-based organizations for the purpose of— (A) conducting outreach to individuals at risk for, or already experiencing, social isolation or loneliness, through established screening tools or other methods identified by the Secretary; (B) developing community-based interventions for the purposes of mitigating loneliness or social isolation (including evidence-based programs, as defined by the Secretary, developed with multi-stakeholder input for the purposes of promoting social connection, mitigating social isolation or loneliness, or preventing social isolation or loneliness) among at-risk individuals; (C) connecting at-risk individuals with community social and clinical supports; and (D) evaluating the effect of programs developed and implemented under subparagraphs (B) and (C). (3) Training The Secretary shall establish programs to provide and improve training for area agencies on aging or community-based organizations with respect to addressing and preventing social isolation and loneliness among older adults and people with disabilities. (4) Evaluation Not later than 3 years after the date of the enactment of this section and at least once after fiscal year 2025, the Secretary shall submit to the Congress a written report which assesses the extent to which the programs established under this subsection address social isolation and loneliness among older adults and people with disabilities. (5) Coordination The Secretary shall coordinate with resource centers, grant programs, or other funding mechanisms established under section 411(a)(18) of the Older Americans Act ( 42 U.S.C. 3032(a)(18) ), section 417(a)(1) of such Act ( 42 U.S.C. 3032F(a)(1) ), or other programs as determined by the Secretary. (c) Definitions In this section: (1) Area agency on aging The term area agency on aging means an area agency on aging designated under section 305 of the Older Americans Act of 1965. (2) Social isolation The term social isolation means objectively being alone, or having few relationships or infrequent social contact. (3) Loneliness The term loneliness means subjectively feeling alone, or the discrepancy between one’s desired level of social connection and one’s actual level of social connection. (4) Social connection The term social connection means the variety of ways one can connect to others socially, through physical, behavioral, social–cognitive, and emotional channels. (5) Community-based organization The term community-based organization includes, except as otherwise provided by the Secretary, a nonprofit community-based organization, a consortium of nonprofit community-based organizations, a national nonprofit organization acting as an intermediary for a community-based organization, or a community-based organization that has a fiscal sponsor that allows the organization to function as an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code. . (e) Technical amendment Section 2011(12)(A) of the Social Security Act ( 42 U.S.C. 1397j(12)(A) ) is amended by striking 450b and inserting 5304 . 134202. Appropriation for assessments Out of any money in the Treasury not otherwise appropriated, in addition to amounts otherwise available, there are appropriated to the Secretary of Health and Human Services $5,302,250 for each of fiscal years 2023 through 2026 to prepare and submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, not later than 3 years after the date of enactment of this Act, and at least once after fiscal year 2025, reports on the programs, coordinating bodies, registries, and activities established or authorized under subtitle B of title XX of the Social Security Act or section 6703(b) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 1395i–3a ), which shall assess the extent to which such programs, coordinating bodies, registries, and activities have improved access to, and the quality of, resources available to aging Americans and their caregivers to ultimately prevent, detect, and treat abuse, neglect, and exploitation, and shall include, as appropriate, recommendations to Congress on funding levels and policy changes to help these programs, coordinating bodies, registries, and activities better prevent, detect, and treat abuse, neglect, and exploitation of aging Americans. E Infrastructure Financing and Community Development 135001. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 1 Low Income Housing Credit 135101. Increases in State allocations (a) In general Section 42(h)(3)(I) is amended to read as follows: (I) Increase in State housing credit ceiling after 2021 (i) In general In the case of calendar years 2022 through 2025, the dollar amounts under subclauses (I) and (II) of subparagraph (C)(ii) for any such calendar year shall be determined in accordance with the following table: In the case of calendar year: The subclause (I) amount shall be: The subclause (II) amount shall be: 2022 $3.14 $3,629,096 2023 $3.54 $4,081,825 2024 $3.97 $4,582,053 2025 $2.65 $3,120,000 (ii) Inflation adjustment after 2025 In the case of calendar years after 2025, the subclause (I) and (II) dollar amounts shall be the respective dollar amounts corresponding to calendar year 2025 in the table under clause (i) each increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2024 for calendar year 2016 in paragraph (A)(ii) thereof. Any increase under this clause shall be rounded to the nearest cent in the case of the subclause (I) amount and the nearest dollar in the case of the subclause (II) amount. . (b) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2021. 135102. Tax-exempt bond financing requirement (a) In general Section 42(h)(4)(B) is amended to read as follows: (B) Special rule where a required percent of buildings is financed with tax-exempt bonds subject to volume cap For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if— (i) 50 percent or more of the aggregate basis of any such building and the land on which the building is located is financed by any obligation described in subparagraph (A), or (ii) 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by any obligation described in subparagraph (A) and issued in calendar year 2022, 2023, 2024, 2025, or 2026. . (b) Effective date The amendment made by this section shall apply to any building some portion of which, or of the land on which the building is located, is financed by an obligation which is described in section 42(h)(4)(A) and which is part of an issue the issue date of which is after December 31, 2021. 135103. Buildings designated to serve extremely low-income households (a) Reserved State allocation (1) In general Section 42(h) is amended— (A) by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively, and (B) by inserting after paragraph (5) the following new paragraph: (6) Portion of State ceiling set-aside for projects designated to serve extremely low-income households (A) In general Not more than 92 percent of the portion of the State housing credit ceiling amount described in paragraph (3)(C)(ii) for any State for any calendar year shall be allocated to buildings other than buildings described in subparagraph (B). (B) Buildings described A building is described in this subparagraph if 20 percent or more of the residential units in such building are rent-restricted (determined as if the imputed income limitation applicable to such units were 30 percent of area median gross income) and are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of— (i) 30 percent of area median gross income, or (ii) 100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)). (C) Exception A building shall not be treated as described in subparagraph (B) if such building is a part of a qualified low-income housing project elected by the taxpayer to meet the requirements of subsection (f)(1)(C). (D) State may not override set-aside Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph. . (2) Conforming amendment Section 42(b)(4)(C) is amended by striking (h)(7) and inserting (h)(8) . (b) Increase in credit Paragraph (5) of section 42(d) is amended by adding at the end the following new subparagraph: (C) Increase in credit for projects designated to serve extremely low-income households (i) In general In the case of any building— (I) which is described in subsection (h)(6)(B), and (II) which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project, subparagraph (B) shall not apply to the portion of such building which is comprised of such units, and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph. (ii) Allocation rules applicable to projects to which clause (i) applies (I) State housing credit ceiling For any calendar year, the housing credit agency shall not allocate more than 13 percent of the portion of the State housing credit ceiling amount described in subsection (h)(3)(C)(ii) to buildings to which clause (i) applies, and (II) Private activity bond volume cap In the case of projects financed by tax-exempt bonds as described in subsection (h)(4), for any calendar year, the State shall not issue more than 8 percent of the private activity bond volume cap as described in section 146(d)(1) to buildings to which clause (i) applies. . (c) Effective date The amendments made by this section shall apply to allocations of housing credit dollar amount after December 31, 2021, and to buildings that are described in section 42(h)(4)(B) taking into account only obligations that are part of an issue the issue date of which is after December 31, 2021. 135104. Repeal of qualified contract option (a) Termination of option for certain buildings (1) In general Subclause (II) of section 42(h)(7)(E)(i), as redesignated by section 135403, is amended by inserting in the case of a building described in clause (iii), before on the last day . (2) Buildings described Subparagraph (E) of section 42(h)(7), as so redesignated, is amended by adding at the end the following new clause: (iii) Buildings described A building described in this clause is a building— (I) which received its allocation of housing credit dollar amount before January 1, 2022, or (II) in the case of a building any portion of which is financed as described in paragraph (4), and which received before January 1, 2022, under the rules of paragraphs (1) and (2) of subsection (m), a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building would be eligible under the qualified allocation plan to receive an allocation of housing credit dollar amount or that the credits to be earned are necessary for financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period. . (b) Rules relating to existing projects Subparagraph (F) of section 42(h)(7), as redesignated by section 135403, is amended by striking the nonlow-income portion and all that follows and inserting the nonlow-income portion and the low-income portion of the building for fair market value (determined by the housing credit agency by taking into account the rent restrictions required for the low-income portion of the building to continue to meet the standards of paragraphs (1) and (2) of subsection (g)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph. . (c) Conforming amendments (1) Paragraph (7) of section 42(h), as redesignated by section 135403, is amended by striking subparagraph (G) and by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (G), (H), (I), and (J), respectively. (2) Subclause (II) of section 42(h)(7)(E)(i), as so redesignated and as amended by subsection (a), is further amended by striking subparagraph (I) and inserting subparagraph (H) . (d) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. (2) Subsection (b) The amendments made by subsection (b) shall apply to buildings with respect to which a written request described in section 42(h)(7)(H) of the Internal Revenue Code of 1986, as redesignated by section 135403 and subsection (c), is submitted after the date of the enactment of this Act. 135105. Modification and clarification of rights relating to building purchase (a) Modification of right of first refusal (1) In general Subparagraph (A) of section 42(i)(7) is amended by striking a right of 1st refusal and inserting an option . (2) Conforming amendment The heading of paragraph (7) of section 42(i) is amended by striking right of 1st refusal and inserting option . (b) Clarification with respect to right of first refusal and purchase options (1) Purchase of partnership interest (A) In general Subparagraph (A) of section 42(i)(7), as amended by subsection (a), is amended by striking the property and inserting the property or all of the partnership interests (other than interests of the person exercising such option or a related party thereto (within the meaning of section 267(b) or 707(b)(1))) relating to the property . (B) Application to S corporations and other pass-through entities Subparagraph (A) of section 42(i)(7) is amended by adding at the end the following: Except as provided by the Secretary, the rules of this paragraph shall apply to S corporations and other pass-through entities in the same manner as such rules apply to partnerships. (C) Conforming amendment Subparagraph (B) of section 42(i)(7) is amended by adding at the end the following: In the case of a purchase of all of the partnership interests, the minimum purchase price under this subparagraph shall be an amount not less than the sum of the interests’ shares of the amount which would be determined with respect to the property under this subparagraph without regard to this sentence. . (2) Property includes assets relating to the building Paragraph (7) of section 42(i) is amended by adding at the end the following new subparagraph: (C) Property For purposes of subparagraph (A), the term property may include all or any of the assets held for the development, operation, or maintenance of a building. . (3) Exercise of right of first refusal and purchase options Subparagraph (A) of section 42(i)(7), as amended by subsection (a) and paragraph (1)(A), is amended by adding at the end the following: “For purposes of determining whether an option, including a right of first refusal, to purchase property or all of the partnership interests holding (directly or indirectly) such property is described in the preceding sentence— (i) such option or right of first refusal shall be exercisable with or without the approval of any owner of the project (including any partner, member, or affiliated organization of such an owner), and (ii) a right of first refusal shall be exercisable in response to any offer to purchase the property or all of the partnership interests, including an offer by a related party. . (c) Other conforming amendment Subparagraph (B) of section 42(i)(7), as amended by subsection (b), is amended by striking the sum of and all that follows through application of clause (ii). and inserting the following: the principal amount of outstanding indebtedness secured by the building (other than indebtedness incurred within the 5-year period ending on the date of the sale to the tenants). . (d) Effective dates (1) Modification of right of first refusal The amendments made by subsections (a) and (c) shall apply to agreements entered into or amended after the date of the enactment of this Act. (2) Clarification The amendments made by subsection (b) shall apply to agreements among the owners of the project (including partners, members, and their affiliated organizations) and persons described in section 42(i)(7)(A) of the Internal Revenue Code of 1986 entered into before, on, or after the date of the enactment of this Act. (3) No effect on agreements None of the amendments made by this section is intended to supersede express language in any agreement with respect to the terms of a right of first refusal or option permitted by section 42(i)(7) of the Internal Revenue Code of 1986 in effect on the date of the enactment of this Act. 2 Neighborhood Homes Investment Act 135201. Neighborhood homes credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by inserting after section 42 the following new section: 42A. Neighborhood homes credit (a) Allowance of credit For purposes of section 38, the neighborhood homes credit determined under this section for the taxable year is, with respect to each qualified residence sold by the taxpayer during such taxable year in an affordable sale, the lesser of— (1) the excess (if any) of— (A) the reasonable development costs paid or incurred by the taxpayer with respect to such qualified residence, over (B) the sale price of such qualified residence (reduced by any reasonable expenses paid or incurred by the taxpayer in connection with such sale), or (2) 35 percent of the lesser of— (A) the eligible development costs paid or incurred by the taxpayer with respect to such qualified residence, or (B) 80 percent of the national median sale price for new homes (as determined pursuant to the most recent census data available as of the date on which the neighborhood homes credit agency makes an allocation for the qualified project). (b) Development costs For purposes of this section— (1) Reasonable development costs (A) In general The term reasonable development costs means amounts paid or incurred for the acquisition of buildings and land, construction, substantial rehabilitation, demolition of structures, or environmental remediation, to the extent that the neighborhood homes credit agency determines that such amounts meet the standards specified pursuant to subsection (f)(1)(C) (as of the date on which construction or substantial rehabilitation is substantially complete, as determined by such agency) and are necessary to ensure the financial feasibility of such qualified residence. (B) Considerations in making determination In making the determination under subparagraph (A), the neighborhood homes credit agency shall consider— (i) the sources and uses of funds and the total financing, (ii) any proceeds or receipts generated or expected to be generated by reason of tax benefits, and (iii) the reasonableness of the developmental costs and fees. (2) Eligible development costs The term eligible development costs means the amount which would be reasonable development costs if the amounts taken into account as paid or incurred for the acquisition of buildings and land did not exceed 75 percent of such costs determined without regard to any amount paid or incurred for the acquisition of buildings and land. (3) Substantial rehabilitation The term substantial rehabilitation means amounts paid or incurred for rehabilitation of a qualified residence if such amounts exceed the greater of— (A) $20,000, or (B) 20 percent of the amounts paid or incurred by the taxpayer for the acquisition of buildings and land with respect to such qualified residence. (4) Construction and rehabilitation only after allocation taken into account (A) In general The terms reasonable development costs and eligible development costs shall not include any amount paid or incurred before the date on which an allocation is made to the taxpayer under subsection (e) with respect to the qualified project of which the qualified residence is part unless such amount is paid or incurred for the acquisition of buildings or land. (B) Land and building acquisition costs Amounts paid or incurred for the acquisition of buildings or land shall be included under paragraph (A) only if paid or incurred not more than 3 years before the date on which the allocation referred to in subparagraph (A) is made. If the taxpayer acquired any building or land from an entity (or any related party to such entity) that holds an ownership interest in the taxpayer, then such entity must also have acquired such property within such 3-year period, and the acquisition cost included under subparagraph (A) with respect to the taxpayer shall not exceed the amount such entity paid or incurred to acquire such property. (c) Qualified residence For purposes of this section— (1) In general The term qualified residence means a residence that— (A) is real property affixed on a permanent foundation, (B) is— (i) a house which is comprised of 4 or fewer residential units, (ii) a condominium unit, or (iii) a house or an apartment owned by a cooperative housing corporation (as defined in section 216(b)), (C) is part of a qualified project with respect to the neighborhood homes credit agency has made an allocation under subsection (e), and (D) is located in a qualified census tract (determined as of the date of such allocation). (2) Qualified census tract (A) In general The term qualified census tract means a census tract— (i) which— (I) has a median family income which does not exceed 80 percent of the median family income for the applicable area, (II) has a poverty rate that is not less than 130 percent of the poverty rate of the applicable area, and (III) has a median value for owner-occupied homes that does not exceed the median value for owner-occupied homes in the applicable area, (ii) which— (I) is located in a city which has a population of not less than 50,000 and such city has a poverty rate that is not less than 150 percent of the poverty rate of the applicable area, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has a median value for owner-occupied homes that does not exceed 80 percent of the median value for owner-occupied homes in the applicable area, (iii) which— (I) is located in a nonmetropolitan county, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has been designated by a neighborhood homes credit agency under this clause, or (iv) which is not otherwise a qualified census tract and is located in a disaster area (as defined in section 7508A(d)(3)), but only with respect to credits allocated in any period during which the President of the United States has determined that such area warrants individual or individual and public assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. (B) Applicable area The term applicable area means— (i) in the case of a metropolitan census tract, the metropolitan area in which such census tract is located, and (ii) in the case of a census tract other than a census tract described in clause (i), the State. (d) Affordable sale For purposes of this section— (1) In general The term affordable sale means a sale to a qualified homeowner of a qualified residence that the neighborhood homes credit agency certifies as meeting the standards promulgated under subsection (f)(1)(D) for a price that does not exceed— (A) in the case of any qualified residence not described in subparagraph (B), (C), or (D), the amount equal to the product of 4 multiplied by the median family income for the applicable area (as determined pursuant to the most recent census data available as of the date of the contract for such sale), (B) in the case of a house comprised of 2 residential units, 125 percent of the amount described in subparagraph (A), (C) in the case of a house comprised of 3 residential units, 150 percent of the amount described in subparagraph (A), or (D) in the case of a house comprised of 4 residential units, 175 percent of the amount described in subparagraph (A). (2) Qualified homeowner The term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual, and (B) whose family income (determined as of the date that a binding contract for the affordable sale of such residence is entered into) is 140 percent or less of the median family income for the applicable area in which the qualified residence is located. (e) Credit ceiling and allocations (1) Credit limited based on allocations to qualified projects (A) In general The credit allowed under subsection (a) to any taxpayer for any taxable year with respect to one or more qualified residences which are part of the same qualified project shall not exceed the excess (if any) of— (i) the amount allocated by the neighborhood homes credit agency under this paragraph to such taxpayer with respect to such qualified project, over (ii) the aggregate amount of credit allowed under subsection (a) to such taxpayer with respect to qualified residences which are a part of such qualified project for all prior taxable years. (B) Deadline for completion No credit shall be allowed under subsection (a) with respect to any qualified residence unless the affordable sale of such residence is during the 5-year period beginning on the date of the allocation to the qualified project of which such residence is a part (or, in the case of a qualified residence to which subsection (i) applies, the rehabilitation of such residence is completed during such 5-year period). (2) Limitations on allocations to qualified projects (A) Allocations limited by State neighborhood homes credit ceiling The aggregate amount allocated to taxpayers with respect to qualified projects by the neighborhood homes credit agency of any State for any calendar year shall not exceed the State neighborhood homes credit amount of such State for such calendar year. (B) Set-aside for certain projects involving qualified nonprofit organizations Rules similar to the rules of section 42(h)(5) shall apply for purposes of this section. (3) Determination of State neighborhood homes credit ceiling (A) In general The State neighborhood homes credit amount for a State for a calendar year is an amount equal to the sum of— (i) the greater of— (I) the product of $3 ($6 in the case of calendar year 2025), multiplied by the State population (determined in accordance with section 146(j)), or (II) $4,000,000 ($8,000,000 in the case of calendar year 2025), and (ii) any amount previously allocated to any taxpayer with respect to any qualified project by the neighborhood homes credit agency of such State which can no longer be allocated to any qualified residence because the 5-year period described in paragraph (1)(B) expires during calendar year. (B) Termination of additional amounts The amount determined under subparagraph (A)(i) shall be zero with respect to any calendar year beginning after December 31, 2025. (C) 3-year carryforward of unused limitation The State neighborhood homes credit amount for a State for a calendar year shall be increased by the excess (if any) of the State neighborhood homes credit amount for such State for the preceding calendar year over the aggregate amount allocated by the neighborhood homes credit agency of such State during such preceding calendar year. Any amount carried forward under the preceding sentence shall not be carried past the third calendar year after the calendar year in which such credit amount originally arose, determined on a first-in, first-out basis. (f) Responsibilities of neighborhood homes credit agencies (1) In general Notwithstanding subsection (e), the State neighborhood homes credit dollar amount shall be zero for a calendar year unless the neighborhood homes credit agency of the State— (A) allocates such amount pursuant to a qualified allocation plan of the neighborhood homes credit agency, (B) allocates not more than 20 percent of amounts allocated in the previous year (or for allocations made in 2022, not more than 20 percent of the neighborhood homes credit ceiling for such year) to projects with respect to qualified residences which— (i) are located in census tracts described in subsection (c)(2)(A)(iii), (c)(2)(A)(iv), (i)(5), or (ii) are not located in a qualified census tract but meet the requirements of (i)(8), (C) promulgates standards with respect to reasonable qualified development costs and fees, (D) promulgates standards with respect to construction quality, (E) in the case of any neighborhood homes credit agency which makes an allocation to a qualified project which includes any qualified residence to which subsection (i) applies, promulgates standards with respect to protecting the owners of such residences, including the capacity of such owners to pay rehabilitation costs not covered by the credit provided by this section and providing for the disclosure to such owners of their rights and responsibilities with respect to the rehabilitation of such residences, and (F) submits to the Secretary (at such time and in such manner as the Secretary may prescribe) an annual report specifying— (i) the amount of the neighborhood homes credits allocated to each qualified project for the previous year, (ii) with respect to each qualified residence completed in the preceding calendar year— (I) the census tract in which such qualified residence is located, (II) with respect to the qualified project that includes such qualified residence, the year in which such project received an allocation under this section, (III) whether such qualified residence was new, substantially rehabilitated and sold to a qualified homeowner, or substantially rehabilitated pursuant to subsection (i), (IV) the eligible development costs of such qualified residence, (V) the amount of the neighborhood homes credit with respect to such qualified residence, (VI) the sales price of such qualified residence, if applicable, and (VII) the family income of the qualified homeowner (expressed as a percentage of the applicable area median family income for the location of the qualified residence), and (iii) such other information as the Secretary may require. (2) Qualified allocation plan For purposes of this subsection, the term qualified allocation plan means any plan which— (A) sets forth the selection criteria to be used to prioritize qualified projects for allocations of State neighborhood homes credit dollar amounts, including— (i) the need for new or substantially rehabilitated owner-occupied homes in the area addressed by the project, (ii) the expected contribution of the project to neighborhood stability and revitalization, including the impact on neighborhood residents, (iii) the capability and prior performance of the project sponsor, and (iv) the likelihood the project will result in long-term homeownership, (B) has been made available for public comment, and (C) provides a procedure that the neighborhood homes credit agency (or any agent or contractor of such agency) shall follow for purposes of— (i) identifying noncompliance with any provisions of this section, and (ii) notifying the Internal Revenue Service of any such noncompliance of which the agency becomes aware. (g) Repayment (1) In general (A) Sold during 5-year period If a qualified residence is sold during the 5-year period beginning immediately after the affordable sale of such qualified residence referred to in subsection (a), the seller (with respect to the sale during such 5-year period) shall transfer an amount equal to the repayment amount to the relevant neighborhood homes credit agency. (B) Use of repayments A neighborhood homes credit agency shall use any amount received pursuant to subparagraph (A) only for purposes of qualified projects. (2) Repayment amount For purposes of paragraph (1)(A), the repayment amount is an amount equal to 50 percent of the gain from the sale to which the repayment relates, reduced by 20 percent for each year of the 5-year period referred to in paragraph (1)(A) which ends before the date of such sale. (3) Lien for repayment amount A neighborhood homes credit agency receiving an allocation under this section shall place a lien on each qualified residence that is built or rehabilitated as part of a qualified project for an amount such agency deems necessary to ensure potential repayment pursuant to paragraph (1)(A). (4) Denial of deductions if converted to rental housing If, during the 5-year period described in paragraph (1), an individual who owns a qualified residence fails to use such qualified residence as such individual’s principal residence for any period of time, no deduction shall be allowed for expenses paid or incurred by such individual with respect to renting, during such period of time, such qualified residence. (5) Waiver The neighborhood homes credit agency may waive the repayment required under paragraph (1)(A) in the case of homeowner experiencing a hardship. (h) Other definitions and special rules For purposes of this section— (1) Neighborhood homes credit agency The term neighborhood homes credit agency means the agency designated by the governor of a State as the neighborhood homes credit agency of the State. (2) Qualified project The term qualified project means a project that a neighborhood homes credit agency certifies will build or substantially rehabilitate one or more qualified residences. (3) Determinations of family income Rules similar to the rules of section 143(f)(2) shall apply for purposes of this section. (4) Possessions treated as states The term State includes the District of Columbia and the possessions of the United States. (5) Special rules related to condominiums and cooperative housing corporations (A) Determination of development costs In the case of a qualified residence described in clause (ii) or (iii) of subsection (c)(1)(A), the reasonable development costs and eligible development costs of such qualified residence shall be an amount equal to such costs, respectively, of the entire condominium or cooperative housing property in which such qualified residence is located, multiplied by a fraction— (i) the numerator of which is the total floor space of such qualified residence, and (ii) the denominator of which is the total floor space of all residences within such property. (B) Tenant-stockholders of cooperative housing corporations treated as owners In the case of a cooperative housing corporation (as such term is defined in section 216(b)), a tenant-stockholder shall be treated as owning the house or apartment which such person is entitled to occupy. (6) Related party sales not treated as affordable sales (A) In general A sale between related persons shall not be treated as an affordable sale. (B) Related persons For purposes of this paragraph, a person (in this subparagraph referred to as the related person ) is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), 10 percent shall be substituted for 50 percent . (7) Inflation adjustment (A) In general In the case of a calendar year after 2022, the dollar amounts in subsections (b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and (i)(2)(C) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2021 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding (i) In the case of the dollar amounts in subsection (b)(3)(A) and (i)(2)(C), any increase under paragraph (1) which is not a multiple of $1,000 shall be rounded to the nearest multiple of $1,000. (ii) In the case of the dollar amount in subsection (e)(3)(A)(i)(I), any increase under paragraph (1) which is not a multiple of $0.01 shall be rounded to the nearest multiple of $0.01. (iii) In the case of the dollar amount in subsection (e)(3)(A)(i)(II), any increase under paragraph (1) which is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000. (8) Report (A) In general The Secretary shall annually issue a report, to be made available to the public, which contains the information submitted pursuant to subsection (f)(1)(F). (B) De-identification The Secretary shall ensure that any information made public pursuant to paragraph (1) excludes any information that would allow for the identification of qualified homeowners. (9) List of qualified census tracts The Secretary of Housing and Urban Development shall, for each year, make publicly available a list of qualified census tracts under— (A) on a combined basis, clauses (i) and (ii) of subsection (c)(2)(A), (B) clause (iii) of such subsection, and (C) subsection (i)(5)(A). (i) Application of credit with respect to owner-occupied rehabilitations (1) In general In the case of a qualified rehabilitation by the taxpayer of any qualified residence which is owned (as of the date that the written binding contract referred to in paragraph (3) is entered into) by a specified homeowner, the rules of paragraphs (2) through (7) shall apply. (2) Alternative credit determination In the case of any qualified residence described in paragraph (1), the neighborhood homes credit determined under subsection (a) with respect to such residence shall (in lieu of any credit otherwise determined under subsection (a) with respect to such residence) be allowed in the taxable year during which the qualified rehabilitation is completed (as determined by the neighborhood homes credit agency) and shall be equal to the least of— (A) the excess (if any) of— (i) the amounts paid or incurred by the taxpayer for the qualified rehabilitation of the qualified residence to the extent that such amounts are certified by the neighborhood homes credit agency (at the time of the completion of such rehabilitation) as meeting the standards specified pursuant to subsection (f)(1)(C), over (ii) any amounts paid to such taxpayer for such rehabilitation, (B) 50 percent of the amounts described in subparagraph (A)(i), or (C) $50,000. (3) Qualified rehabilitation (A) In general For purposes of this subsection, the term qualified rehabilitation means a rehabilitation or reconstruction performed pursuant to a written binding contract between the taxpayer and the qualified homeowner if the amount paid or incurred by the taxpayer in the performance of such rehabilitation or reconstruction exceeds the dollar amount in effect under subsection (b)(3)(A). (B) Application of limitation to expenses paid or incurred after allocation A rule similar to the rule of section (b)(4) shall apply for purposes of this subsection. (4) Specified homeowner For purposes of this subsection, the term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual as of the date that the written binding contract referred to in paragraph (3) is entered into, and (B) whose family income (determined as of such date) does not exceed the median family income for the applicable area (with respect to the census tract in which the qualified residence is located). (5) Additional census tracts in which owner-occupied residences may be located In the case of any qualified residence described in paragraph (1), the term qualified census tract includes any census tract which— (A) meets the requirements of subsection (c)(2)(A)(i) without regard to subclause (III) thereof, and (B) is designated by the neighborhood homes credit agency for purposes of this paragraph. (6) Modification of repayment requirement In the case of any qualified residence described in paragraph (1), subsection (g) shall be applied by beginning the 5-year period otherwise described therein on the date on which the qualified owner acquired the residence. (7) Related parties Paragraph (1) shall not apply if the taxpayer is the owner of the qualified residence described in paragraph (1) or is related (within the meaning of subsection (h)(6)(B)) to such owner. (8) Pyrrhotite remediation The requirement of subsection (c)(1)(C) shall not apply to a qualified rehabilitation under this subsection of a qualified residence that is documented by an engineer’s report and core testing to have a foundation that is adversely impacted by pyrrhotite or other iron sulfide minerals. (j) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations that prevent avoidance of the rules, and abuse of the purposes, of this section. . (b) Credit allowed as part of general business credit Section 38(b), as amended by the preceding provisions of this Act, is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus , and by adding at the end the following new paragraph: (36) the neighborhood homes credit determined under section 42A(a), . (c) Credit allowed against alternative minimum tax Section 38(c)(4)(B), as amended by the preceding provisions of this Act, is amended by redesginating clauses (iv) through (xiii) as clauses (v) through (xiv), respectively, and by inserting after clause (iii) the following new clause: (iv) the credit determined under section 42A, . (d) Conforming amendments (1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of section 469 are each amended by inserting or 42A after section 42 . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 42 the following new item: Sec. 42A. Neighborhood homes credit. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 3 Investments in tribal infrastructure 135301. Treatment of Indian Tribes as States with respect to bond issuance (a) In general Section 7871(c) is amended to read as follows: (c) Special rules for tax-exempt bonds (1) In general In applying section 146 to bonds issued by Indian Tribal Governments the Secretary shall annually— (A) establish a national bond volume cap based on the greater of— (i) the State population formula approach in section 146(d)(1)(A) (using national Tribal population estimates supplied annually by the Department of the Interior in consultation with the Census Bureau), and (ii) the minimum State ceiling amount in section 146(d)(1)(B) (as adjusted in accordance with the cost of living provision in section 146(d)(2)), and (B) allocate such national bond volume cap among all Indian Tribal Governments seeking such an allocation in a particular year under regulations prescribed by the Secretary. (2) Application of geographic restriction In the case of national bond volume cap allocated under paragraph (1), section 146(k)(1) shall not apply to the extent that such cap is used with respect to financing for a facility located on qualified Indian lands. (3) Restriction on financing of certain gaming facilities No portion of the volume cap allocated under this subsection may be used with respect to the financing of any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any property actually used in the conduct of such gaming. (4) Definitions and special rules For purposes of this subsection— (A) Indian Tribal Government The term Indian Tribal Government means the governing body of an Indian Tribe, band, nation, or other organized group or community, or of Alaska Natives, which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians, and also includes any agencies, instrumentalities or political subdivisions thereof. (B) Intertribal consortiums, etc In any case in which an Indian Tribal Government has authorized an intertribal consortium, a Tribal organization, or an Alaska Native regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act, to plan for, coordinate or otherwise administer services, finances, functions, or activities on its behalf under this subsection, the authorized entity shall have the rights and responsibilities of the authorizing Indian Tribal Government only to the extent provided in the Authorizing resolution. (C) Qualified Indian lands The term qualified Indian lands shall mean an Indian reservation as defined in section 3(d) of the Indian Financing Act of 1974 ( 25 U.S.C. 1452(d) ), including lands which are within the jurisdictional area of an Oklahoma Indian Tribe (as determined by the Secretary of the Interior) and shall include lands outside a reservation where the facility is to be placed in service in connection with— (i) the active conduct of a trade or business by an Indian Tribe on, contiguous to, within reasonable proximity of, or with a substantial connection to, an Indian reservation or Alaska Native village, or (ii) infrastructure (including roads, power lines, water systems, railroad spurs, and communication facilities) serving an Indian reservation or Alaska Native village. . (b) Conforming amendment Subparagraph (B) of section 45(c)(9) is amended to read as follows: (B) Indian Tribe For purposes of this paragraph, the term Indian tribe has the meaning given the term Indian Tribal Government by section 7871(c)(3)(A). . (c) Effective date The amendments made by this section shall apply to obligations issued in calendar years beginning after the date of the enactment of this Act. 135302. New markets tax credit for Tribal Statistical Areas (a) Additional allocations for Tribal Statistical Areas Section 45D(f) is amended by adding at the end the following new paragraph: (5) Additional allocations for Tribal Statistical Areas (A) In general In the case of calendar years 2022 through 2025, there is (in addition to any limitation under any other paragraph of this subsection) a new markets tax credit limitation of $175,000,000 which shall be allocated by the Secretary as provided in paragraph (2) except that such limitation may only be allocated with respect to Tribal Statistical Areas. (B) Carryover of unused Tribal Statistical Area limitation (i) In general If the credit limitation under subparagraph (A) for any calendar year exceeds the amount of such limitation allocated by the Secretary for such calendar year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. (ii) Limitation on carryover No amount of credit limitation may be carried under clause (i) past the 5th calendar year following the calendar year in which such amount of credit limitation arose. (iii) Transfer of expired Tribal Statistical Area limitation to general limitation In the case of any amount of credit limitation which would (but for clause (ii)) be carried under clause (i) to the 6th calendar year following the calendar year in which such amount of credit limitation arose, the new market tax credit limitation under paragraph (1) for such 6th calendar year shall be increased by the amount of such credit limitation, except that no such increase shall be made for any calendar year after 2030. (C) Tribal statistical area For purposes of this paragraph, the term Tribal Statistical Area means— (i) any low-income community which is located in any Tribal Census Tract, Oklahoma Tribal Statistical Area, Tribal-Designated Statistical Area, Alaska Native Village Statistical Area, or Hawaiian Home Land, and (ii) any low-income community described in subsection (e)(1)(B). . (b) Eligibility of certain projects serving tribal members Section 45D(e)(1) is amended to read as follows: (1) In general The term low-income community means any area— (A) comprising a population census tract if— (i) the poverty rate for such tract is at least 20 percent, or (ii) (I) in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or (II) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income, (B) which is used for a qualified active low-income community business which— (i) services a significant population of Tribal or Alaska Native Village members who are residents of a low-income community described in subsection (f)(5)(C)(i), and (ii) obtains a written statement from the relevant Indian Tribal Government (within the meaning of section 7871(c)) that documents the eligibility such project with respect to the requirement of clause (i). Subparagraph (A)(ii) shall be applied using possession wide median family income in the case of census tracts located within a possession of the United States. . (c) Coordination with existing carryover Section 45D(f)(3) is amended— (1) is amended by inserting under paragraph (1) after new markets tax credit limitation , and (2) by striking the aggregate amount allocated and inserting the amount of such limitation allocated by the Secretary . (d) Regulatory authority Section 45D(i) is amended by striking and at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting , and , and by adding at the end the following new paragraph: (7) which provide documentation requirements for the written statement required under subsection (e)(1)(B)(ii), and (8) which provide procedures for determining which projects under subsection (e)(1)(B) are qualified active low-income community businesses with respect to the populations described in such subsection. Such procedures shall take into account the location needs of such projects, especially with respect to projects that serve multiple tribal or Alaska Native Village communities. . (e) Effective date The amendments made by this section shall apply to new markets tax credit limitation determined for calendar years after December 31, 2021. 135303. Inclusion of Indian areas as difficult development areas for purposes of certain buildings (a) In general Subclause (I) of section 42(d)(5)(B)(iii) is amended by inserting , or any Indian area before the period at the end. (b) Indian area Clause (iii) of section 42(d)(5)(B) is amended by redesignating subclause (II) as subclause (IV) and by inserting after subclause (I) the following new subclauses: (II) Indian area For purposes of subclause (I), the term Indian area means any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 ( 25 U.S.C. 4103(11) )). (III) Special rule for buildings in Indian areas In the case of an area which is a difficult development area solely because it is an Indian area, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996 ( 25 U.S.C. 4101 et seq. ) or the project sponsor is an Indian tribe (as defined in section 45A(c)(6)), a tribally designated housing entity (as defined in section 4(22) of such Act ( 25 U.S.C. 4103(22) )), or wholly owned or controlled by such an Indian tribe or tribally designated housing entity. . (c) Effective date The amendments made by this section shall apply to buildings placed in service after December 31, 2021. 4 Other provisions 135401. Possessions economic activity credit (a) In general Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 45V. Possessions economic activity credit (a) Allowance of credit For purposes of section 38, in the case of a qualified domestic corporation the possessions economic activity credit determined under this section for a taxable year is an amount equal to 20 percent of the sum of the qualified possession wages and allocable employee fringe benefit expenses paid or incurred by the taxpayer for the taxable year. (b) Qualified domestic corporation; qualified corporation For purposes of this section— (1) In general The term qualified domestic corporation means any domestic corporation which is— (A) a qualified corporation, or (B) a United States shareholder of a foreign corporation which— (i) is a qualified corporation, and (ii) is wholly owned by the United States shareholder together with any corporations which are members of the same affiliated group (within the meaning of section 1504(a)) as such United States shareholder. (2) Qualified corporation The term qualified corporation means any corporation if such corporation meets the following requirements: (A) Source qualification 80 percent or more of the gross income of the corporation for the 3-year period immediately preceding the close of the taxable year (or for such part of such period immediately preceding the close of such taxable year as may be applicable) was derived from sources within a possession of the United States (determined without regard to section 904(f)). (B) Trade or business qualification 75 percent or more of the gross income of the corporation for such period or such part thereof was derived from the active conduct of a trade or business within a possession of the United States. (3) Special rule for separate and clearly identified units of foreign corporations (A) In general In the case of a United States shareholder of a foreign corporation which— (i) is not a qualified corporation but with respect to which the ownership requirements of paragraph (1)(B)(ii) are met, and (ii) has an eligible foreign business unit which, if such unit were a corporation, would be a qualified corporation with respect to which such ownership requirements would be met, then, for purposes of this section, the United States shareholder may elect to treat such unit as a separate foreign corporation which meets the requirements of paragraph (1)(B) and with respect to which such shareholder is a United States shareholder. (B) Eligible foreign business unit For purposes of this paragraph, the term eligible foreign business unit means a separate and clearly identified foreign unit of a trade or business, including a partnership or an entity treated as disregarded as a separate entity from its owner (under section 7701 or other provision under this title), which maintains separate books and records. (C) Special election for affiliated groups In the case of an affiliated group described in paragraph (1)(B)(ii), the election under subparagraph (A) with respect to any eligible foreign business unit shall be made by the common parent of such group and shall apply uniformly to all members of such group which are United States shareholders with respect to the foreign corporation which has such unit. (c) Qualified possession wages For purposes of this section— (1) In general The term qualified possession wages means wages paid or incurred by the qualified corporation during the taxable year in connection with the active conduct of a trade or business within a possession of the United States to any employee for services performed in such possession, but only if such services are performed while the principal place of employment of such employee is within such possession. (2) Limitation on amount of wages taken into account (A) In general The amount of wages which may be taken into account under paragraph (1) with respect to any employee for any taxable year shall not exceed $50,000. (B) Treatment of part-time employees, etc If— (i) any employee is not employed by the qualified corporation on a substantially full-time basis at all times during the taxable year, or (ii) the principal place of employment of any employee with the qualified corporation is not within a possession at all times during the taxable year, the limitation applicable under paragraph (1) with respect to such employee shall be the appropriate portion (as determined by the Secretary) of the limitation which would otherwise be in effect under paragraph (1). (C) Wages (i) In general Except as provided in clause (ii), the term wages has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). For purposes of the preceding sentence, such subsection (b) shall be applied as if the term United States included all possessions of the United States. (ii) Special rule for agricultural labor and railway labor In any case to which subparagraph (A) or (B) of paragraph (1) of section 51(h) applies, the term wages has the meaning given to such term by section 51(h)(2). (3) Allocable employee fringe benefit expenses (A) In general The allocable employee fringe benefit expenses of any qualified corporation for any taxable year is an amount which bears the same ratio to the amount determined under subparagraph (B) for such taxable year as— (i) the aggregate amount of the qualified corporation’s qualified possession wages for such taxable year, bears to (ii) the aggregate amount of the wages paid or incurred by such qualified corporation during such taxable year. In no event shall the amount determined under the preceding sentence exceed 15 percent of the amount referred to in clause (i). (B) Expenses taken into account For purposes of subparagraph (A), the amount determined under this subparagraph for any taxable year is the aggregate amount allowable (or, in the case of a foreign corporation, which would be allowable if such foreign corporation were a domestic corporation) as a deduction under this chapter to the qualified corporation for such taxable year with respect to— (i) employer contributions under a stock bonus, pension, profit-sharing, or annuity plan, (ii) employer-provided coverage under any accident or health plan for employees, and (iii) the cost of life or disability insurance provided to employees. Any amount treated as wages under paragraph (2)(C) shall not be taken into account under this subparagraph. (d) Special rule for qualified small domestic corporation For purposes of this section— (1) Increased credit percentage In the case of a qualified small domestic corporation, subsection (a) shall be applied by substituting 50 percent for 20 percent . (2) Qualified small domestic corporation (A) In general The term qualified small domestic corporation means a qualified domestic corporation that meets the requirements of subparagraphs (B) and (C). (B) Full-time employment A qualified domestic corporation meets the requirements of this subparagraph if the qualified corporation which is the qualified domestic corporation under subsection (b)(1)(A) or the foreign corporation under subsection (b)(1)(B)(i)— (i) has at least 5 full-time employees in a possession of the United States for each year in the 3-year period immediately preceding the close of the taxable year (or for such part of such period immediately preceding the close of such taxable year as may be applicable), and (ii) has not more than a total of 30 full-time employees for each year in such 3-year period. (C) Gross receipts A qualified domestic corporation meets the requirements of this subparagraph if the annual gross receipts of the qualified domestic corporation (and all persons related thereto) for each year in such 3-year period is not more than $50,000,000. (3) Related persons In determining whether the limitations under subparagraphs (B)(ii) and (C) of paragraph (2) are met, all persons who are treated as a single employer for purposes of subsection (a) or (b) of section 52 shall be taken into account. (4) Amount of wages taken into account Subsection (c)(2)(A) shall be applied by substituting $142,800 for $50,000 . (e) Possession of the United States (1) In general The term possession of the United States means American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands. (2) Mirror code possessions In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. (f) Separate application to each possession For purposes of determining the amount of the credit allowed under this section, this section shall be applied separately with respect to each possession of the United States. (g) Termination No credit shall be allowed under this section for any taxable year beginning after December 31, 2031. . (b) Credit made part of general business credit Subsection (b) of section 38 , as amended by the preceding provisions of this Act, is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus , and by adding at the end the following new paragraph: (36) the possessions economic activity credit determined under section 45V. . (c) Clerical amendment The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following: Sec. 45V. Possessions economic activity credit. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act, and in the case of a qualified corporation that is a foreign corporation, to taxable years beginning after the date of enactment and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 135402. Tax treatment of certain assistance to farmers, etc (a) In general For purposes of the Internal Revenue Code of 1986, in the case of any payment described in section 1005(b) or 1006(e) of the American Rescue Plan Act of 2021 (as amended by this Act)— (1) such payment shall not be included in the gross income of the person on whose behalf, or to whom, such payment is made, (2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and (3) in the case of a partnership or S corporation on whose behalf, or to whom, such a payment is made— (A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of such Code, and (B) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of such Code with respect to any amount described in subparagraph (A) shall equal the partner’s distributive share of deductions resulting from interest that is part of such payment and the partner’s share, as determined under section 752 of such Code, of principal that is part of such payment. (b) Authority to waive certain information reporting requirements The Secretary of the Treasury (or the Secretary’s delegate) may provide an exception from any requirement to file an information return otherwise required by chapter 61 of the Internal Revenue Code of 1986 with respect to any amount excluded from gross income by reason of subsection (a). 135403. Exclusion of amounts received from state-based catastrophe loss mitigation programs (a) In general Section 139 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) State-Based catastrophe loss mitigation programs (1) In general Gross income shall not include any amount received by an individual as a qualified catastrophe mitigation payment under a program established by— (A) a State, or a political subdivision or instrumentality thereof, (B) a joint powers authority, or (C) an entity created under State law to ensure the availability of an adequate market of last resort for essential property insurance, over which a State agency or State department of insurance has regulatory oversight. (2) Qualified catastrophe mitigation payment For purposes of this section, the term qualified catastrophe mitigation payment means any amount which is received by an individual to make improvements to such individual’s residence for the sole purpose of reducing the damage that would be done to such residence by a windstorm, earthquake, or wildfire. (3) No increase in basis Rules similar to the rules of subsection (g)(3) shall apply in the case of this subsection. . (b) Conforming amendments (1) Section 139(d) is amended by striking and qualified and inserting , qualified catastrophe mitigation payments, and qualified . (2) Section 139(i) (as redesignated by subsection (a)) is amended by striking or qualified and inserting , qualified catastrophe mitigation payment, or qualified . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. F Green energy 136001. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 1 Renewable Electricity and Reducing Carbon Emissions 136101. Extension and modification of credit for electricity produced from certain renewable resources (a) In general The following provisions of section 45(d) are each amended by striking January 1, 2022 each place it appears and inserting January 1, 2027 : (1) Paragraph (2)(A). (2) Paragraph (3)(A). (3) Paragraph (4)(B). (4) Paragraph (6). (5) Paragraph (7). (6) Paragraph (9). (7) Paragraph (11)(B). (b) Base credit amount Section 45 is amended by striking 1.5 cents each place it appears and inserting 0.3 cents . (c) Application of extension to solar Section 45(d)(4)(A) is amended by striking is placed in service before January 1, 2006 and inserting the construction of which begins before January 1, 2027. . (d) Extension of election to treat qualified facilities as energy property Section 48(a)(5)(C)(ii) is amended by striking January 1, 2022 and inserting January 1, 2027 . (e) Application of extension to wind facilities (1) In general Section 45(d)(1) is amended by striking January 1, 2022 and inserting January 1, 2027 . (2) Application of phaseout percentage (A) Renewable electricity production credit Section 45(b)(5) is amended by inserting placed in service before January 1, 2022 after In the case of any facility . (B) Energy credit Section 48(a)(5)(E) is amended by inserting placed in service before January 1, 2022 after In the case of any facility . (3) Qualified offshore wind facilities under energy credit Section 48(a)(5)(F)(i) is amended by striking offshore wind facility— and all that follows and inserting the following: offshore wind facility, subparagraph (E) shall not apply. . (f) Wage and apprenticeship requirements Section 45(b) is amended by adding at the end the following new paragraphs: (6) Increased credit amount for qualified facilities (A) In general In the case of any qualified facility which satisfies the requirements of subparagraph (B), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (5)) shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (B) Qualified facility requirements A qualified facility meets the requirements of this subparagraph if it is one of the following: (i) A facility with a maximum net output of less than 1 megawatt. (ii) A facility the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (7) and (8). (iii) A facility which satisfies the requirements of paragraphs (7) and (8). (7) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any qualified facility are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in— (i) the construction of such facility, and (ii) for the period of the taxable year which is within the 10-year period beginning on the date the facility was originally placed in service, the alteration or repair of such facility, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (6)(A) for a taxable year, the requirement under clause (ii) is applied to such taxable year in which the alteration or repair of the qualified facility occurs.” (B) Correction and penalty related to failure to satisfy wage requirements (i) In general In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to the construction of any qualified facility or with respect to the alteration or repair of a facility in any year during the period described in subparagraph (A)(ii), such taxpayer shall be deemed to have satisfied such requirement under such subparagraph with respect to such facility for any year if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such subparagraph for any period during such year, such taxpayer— (I) makes payment to such laborer or mechanic in an amount equal to the sum of— (aa) an amount equal to the difference between— (AA) the amount of wages paid to such laborer or mechanic during such period, and (BB) the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus (bb) interest on the amount determined under item (aa) at the underpayment rate established under section 6621 (determined by substituting 6 percentage points for 3 percentage points in subsection (a)(2) of such section) for the period described in such item, and (II) makes payment to the Secretary of a penalty in an amount equal to the product of— (aa) $5,000, multiplied by (bb) the total number of laborers and mechanics who were paid wages at a rate below the rate described in subparagraph (A) for any period during such year. (ii) Deficiency procedures not to apply Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply with respect to the assessment or collection of any penalty imposed by this paragraph. (iii) Intentional disregard If the Secretary determines that any failure described in subclause (i) is due to intentional disregard of the requirements under subparagraph (A), subclause (I) shall be applied by substituting three times the sum for the sum in item (aa) thereof and subclause (II) shall be applied by substituting $10,000 for 5,000 in item (aa) thereof. (iv) Limitation on period for payment Pursuant to rules issued by the Secretary which are similar to the rules under chapter 63, in the case of a final determination by the Secretary with respect to any failure by the taxpayer to satisfy the requirement under subparagraph (A), subparagraph (B)(i) shall not apply unless the payments described in subclauses (I) and (II) of such clause are made by the taxpayer on or before the date which is 180 days after the date of such determination. (8) Apprenticeship requirements The requirements described in this subparagraph with respect to the construction of any qualified facility are as follows: (A) Labor hours (i) Percentage of total labor hours Taxpayers shall ensure that not less than the applicable percentage of the total labor hours of the construction, alteration, or repair work (including such work performed by any contractor or subcontractor) on any qualified facility shall, subject to subparagraph (B), be performed by qualified apprentices. (ii) Applicable percentage For purposes of clause (i), the applicable percentage shall be— (I) in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent, (II) in the case of a qualified facility the construction of which begins after December 31, 2022, and before January 1, 2024, 12.5 percent, and (III) in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent. (B) Apprentice to journeyworker ratio The requirement under subparagraph (A)(i) shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency. (C) Participation Each contractor and subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work on a qualified facility shall employ 1 or more qualified apprentices to perform such work. (D) Exception (i) In general A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer— (I) makes a good faith effort to comply with the requirements of this paragraph, or (II) subject to clause (iii), in the case of any failure by the taxpayer to satisfy the requirement under subparagraphs (A) and (C) with respect to the construction, alteration, or repair work on any qualified facility to which subclause (I) does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of— (aa) $50, multiplied by (bb) the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construction, alteration, or repair work on such qualified facility. (ii) Good faith effort For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under such paragraph with respect to a qualified facility if such taxpayer has requested qualified apprentices from a registered apprenticeship program, as defined in section 3131(e)(3)(B), and— (I) such request has been denied, provided that such denial is not the result of a refusal by the contractors or subcontractors engaged in the performance of construction, alteration, or repair work on such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or (II) the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request. (iii) Intentional disregard If the Secretary determines that any failure described in subclause (i)(II) is due to intentional disregard of the requirements under subparagraphs (A) and (C), subclause (i)(II) shall be applied by substituting $500 for $50 in item (aa) thereof. (E) Definitions For purposes of this paragraph— (i) Labor hours The term labor hours — (I) means the total number of hours devoted to the performance of construction, alteration, or repair work by employees of the taxpayer (including construction, alteration, or repair work by any contractor or subcontractor), and (II) excludes any hours worked by— (aa) foremen, (bb) superintendents, (cc) owners, or (dd) persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations). (ii) Qualified apprentice The term qualified apprentice means an individual who is an employee of the contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B). (9) Domestic content bonus credit amount (A) In general In the case of any qualified facility which satisfies the requirement under subparagraph (B), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (8)) shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such subsection. (B) Requirement (i) In general The requirement described in this subclause with respect to any qualified facility is satisfied if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States. (ii) Steel and iron (I) In general In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5(b) of title 49, Code of Federal Regulations. (II) Exception Subclause (I) shall not apply with respect to any steel or iron which is used as a component or subcomponent of a manufactured product which is not primarily made of steel or iron. (iii) Manufactured product For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage of the total costs across all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States. (C) Adjusted percentage (i) In general Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be— (I) in the case of a facility the construction of which begins before January 1, 2025, 40 percent, (II) in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 45 percent, (III) in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 50 percent, and (IV) in the case of a facility the construction of which begins after December 31, 2026, 55 percent. (ii) Offshore wind facility For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be— (I) in the case of a facility the construction of which begins before January 1, 2025, 20 percent, (II) in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 27.5 percent, (III) in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 35 percent, (IV) in the case of a facility the construction of which begins after December 31, 2026, and before January 1, 2028, 45 percent, and (V) in the case of a facility the construction of which begins after December 31, 2027, 55 percent. (10) Phaseout for elective payment (A) In general In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with— (i) the value of such credit (determined without regard to this paragraph), multiplied by (ii) the applicable percentage. (B) 100 percent applicable percentage for certain qualified facilities In the case of any qualified facility— (i) which satisfies the requirements under paragraph (9) with respect to the construction of such facility, or (ii) with a maximum net output of less than 1 megawatt, the applicable percentage shall be 100 percent. (C) Phased domestic content requirement Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be— (i) if construction of such facility began before January 1, 2024, 100 percent, (ii) if construction of such facility began in calendar year 2024, 90 percent, (iii) if construction of such facility began in calendar year 2025, 85 percent, and (iv) if construction of such facility began after December 31, 2025, 0 percent. (D) Exception (i) In general For purposes of this paragraph, the Secretary shall provide appropriate exceptions to the requirements under subparagraph (B) for the construction of qualified facilities if— (I) the inclusion of domestic products increases the overall costs of construction of qualified facilities by more than 25 percent, or (II) relevant domestic products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality. (ii) Applicable percentage In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent. (11) Special rule for qualified facility located in energy community (A) In general In the case of a qualified facility which is located in an energy community, the credit determined under subsection (a) shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such subsection (without application of subsection (b)(9)). (B) Energy community The term energy community means a census tract or any directly adjoining census tract in which— (i) after December 31, 1999, a coal mine has closed, or (ii) after December 31, 2009, a coal-fired electric generating unit has been retired. (12) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (g) Credit reduced for tax-exempt bonds Section 45(b)(3) is amended to read as follows: (3) Credit reduced for tax-exempt bonds The amount of the credit determined under subsection (a) with respect to any facility for any taxable year (determined after the application of paragraphs (1) and (2)) shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of 15 percent or a fraction— (A) the numerator of which is the sum, for the taxable year and all prior taxable years, of proceeds of an issue of any obligations used to provide financing for the qualified facility the interest on which is exempt from tax under section 103, and (B) the denominator of which is the aggregate amount of additions to the capital account for the qualified facility for the taxable year and all prior taxable years. The amounts under the preceding sentence for any taxable year shall be determined as of the close of the taxable year. . (h) Rounding adjustment Section 45(b)(2) is amended by striking If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent and inserting If the 0.3 cent amount as increased under the preceding sentence is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. In any other case, if an amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent . (i) Conforming amendment Section 45(b)(4)(A) is amended by striking last sentence and inserting last two sentences . (j) Effective dates (1) The amendments made by subsections (a), (b), (c), (d), (e), (f), (h), and (i) of this section shall apply to facilities placed in service after December 31, 2021. (2) The amendment made by subsection (g) shall apply to facilities the construction of which begins after December 31, 2021. 136102. Extension and modification of energy credit (a) Extension of credit The following provisions of section 48 are each amended by striking January 1, 2024 each place it appears and inserting January 1, 2027 : (1) Subsection (a)(2)(A)(i)(II). (2) Subsection (a)(3)(A)(ii). (3) Subsection (c)(1)(D). (4) Subsection (c)(2)(D). (5) Subsection (c)(4)(C). (b) Further extension for certain energy property The following provisions of section 48 are each amended by striking January 1, 2024 each place it appears and inserting January 1, 2034 : (1) Subsection (a)(3)(A)(vii). (2) Subsection (c)(3)(A)(iv). (c) Phaseout of credit Section 48(a) is amended by striking paragraphs (6) and (7) and inserting the following new paragraph: (6) Phaseout for certain energy property In the case of any qualified fuel cell property, qualified small wind property, or energy property described in clause (i) or clause (ii) of paragraph (3)(A) the construction of which begins after December 31, 2019 and which is placed in service before January 1, 2022, the energy percentage determined under paragraph (2) shall be equal to 26 percent. . (d) Base energy percentage amount Section 48(a) is amended— (1) in paragraph (2)(A)— (A) in clause (i), by striking 30 percent and inserting 6 percent , and (B) in clause (ii), by striking 10 percent and inserting 2 percent , and (2) in paragraph (5)(A)(ii), by striking 30 percent and inserting 6 percent . (e) 6 percent credit for geothermal Section 48(a)(2)(A)(i)(II) is amended by striking paragraph (3)(A)(i) and inserting clause (i) or (iii) of paragraph (3)(A) . (f) Energy storage technologies; qualified biogas property; microgrid controllers; extension of waste energy recovery property (1) In general Section 48(a)(3)(A) is amended by striking or at the end of clause (vii), and by adding at the end the following new clauses: (ix) energy storage technology, (x) qualified biogas property, or (xi) microgrid controllers, . (2) Application of 6 percent credit Section 48(a)(2)(A)(i) is amended by striking and at the end of subclauses (IV) and (V) and adding at the end the following new subclauses: (VI) energy storage technology, (VII) qualified biogas property, (VIII) microgrid controllers, and (IX) energy property described in clauses (v) and (vii) of paragraph (3)(A), and . (3) Definitions Section 48(c) is amended by adding at the end the following new paragraphs: (6) Energy storage technology (A) In general The term energy storage technology means property (other than property primarily used in the transportation of goods or individuals and not for the production of electricity) which receives, stores, and delivers energy for conversion to electricity (or, in the case of hydrogen, which stores energy), and has a nameplate capacity of not less than 5 kilowatt hours. (B) Modifications of certain property In the case of any equipment which either— (i) would be described in subparagraph (A) except that such equipment has a capacity of less than 5 kilowatt hours and is modified such that such equipment (after such modification) has a nameplate capacity of not less than 5 kilowatt hours, or (ii) is described in subparagraph (A) and which has a capacity of not less than 5 kilowatt hours and is modified such that such equipment (after such modification) has an increased nameplate capacity, such equipment shall be treated as described in subparagraph (A) except that the basis of any property which was part of such equipment before such modification shall not be taken into account for purposes of this section. In the case of any property to which this subparagraph applies, subparagraph (C) shall be applied by substituting modification for construction . (C) Termination The term energy storage technology shall not include any property the construction of which does not begin before January 1, 2027. (7) Qualified biogas property (A) In general The term qualified biogas property means property comprising a system which— (i) converts biomass (as defined in section 45K(c)(3), as in effect on the date of enactment of this paragraph) into a gas which— (I) consists of not less than 52 percent methane by volume, or (II) is concentrated by such system into a gas which consists of not less than 52 percent methane, and (ii) captures such gas for sale or productive use, and not for disposal via combustion. (B) Inclusion of cleaning and conditioning property The term qualified biogas property includes any property which is part of such system which cleans or conditions such gas. (C) Termination The term qualified biogas property shall not include any property the construction of which does not begin before January 1, 2027. (8) Microgrid controller (A) In general The term microgrid controller means equipment which is— (i) part of a qualified microgrid, and (ii) designed and used to monitor and control the energy resources and loads on such microgrid. (B) Qualified microgrid The term qualified microgrid means an electrical system which— (i) includes equipment which is capable of generating not less than 4 kilowatts and not greater than 20 megawatts of electricity, (ii) is capable of operating— (I) in connection with the electrical grid and as a single controllable entity with respect to such grid, and (II) independently (and disconnected) from such grid, and (iii) is not part of a bulk-power system (as defined in section 215 of the Federal Power Act ( 16 U.S.C. 24o )). (C) Termination The term microgrid controller shall not include any property the construction of which does not begin before January 1, 2027. . (4) Denial Of Double Benefit For Qualified Biogas Property Section 45(e) is amended by adding at the end the following new paragraph: (12) Coordination with energy credit for qualified biogas property The term qualified facility shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is determined under section 48 with respect to such property for the taxable year or any prior taxable year. . (5) Extension of waste energy recovery property Section 48(c)(5)(D) is amended by striking January 1, 2024 and inserting January 1, 2034 . (6) Phaseout of certain other energy property Section 48(a) is amended by adding at the end the following new paragraph: (7) Phaseout for certain other energy property In the case of any energy property described in clause (v), (vii) or (viii) of paragraph (3)(A), the energy percentage determined under paragraph (2) shall be equal to— (A) in the case of any property described in paragraph (3)(A)(viii) the construction of which begins after December 31, 2019, and which is placed in service before January 1, 2022, 26 percent, (B) in the case of any property the construction of which begins before January 1, 2032, and which is placed in service after December 31, 2021, 6 percent, (C) in the case of any property the construction of which begins after December 31, 2031 and before January 1, 2033, 5.2 percent, and (D) in the case of any property the construction of which begins after December 31, 2032 and before January 1, 2034, 4.4 percent. . (g) Fuel cells using electromechanical processes (1) In general Section 48(c)(1) is amended— (A) in subparagraph (A)(i)— (i) by inserting or electromechanical after electrochemical , and (ii) by inserting (1 kilowatt in the case of a fuel cell power plant with a linear generator assembly) after 0.5 kilowatt , and (B) in subparagraph (C)— (i) by inserting , or linear generator assembly, after a fuel cell stack assembly , and (ii) by inserting or electromechanical after electrochemical . (2) Linear generator assembly limitation Section 48(c)(1) is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: (D) Linear generator assembly The term linear generator assembly does not include any assembly which contains rotating parts. . (h) Dynamic glass Section 48(a)(3)(A)(ii) is amended by inserting , or electrochromic glass which uses electricity to change its light transmittance properties in order to heat or cool a structure, after sunlight . (i) Coordination with low income housing tax credit Paragraph (3) of section 50(c) of the Internal Revenue Code of 1986 is amended— (1) by striking and at the end of subparagraph (A), (2) by striking the period at the end of subparagraph (B) and inserting , and , and (3) by adding at the end the following new subparagraph: (C) paragraph (1) shall not apply for purposes of determining eligible basis under section 42. . (j) Interconnection property Section 48(a) is amended by adding at the end the following new paragraph: (8) Interconnection property (A) In general For purposes of determining the credit under subsection (a), energy property shall include amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property (described in paragraph (3)(A)) which has a maximum net output of not greater than 5 megawatts, to provide for the transmission or distribution of the electricity produced or stored by such property, and which are properly chargeable to the capital account of the taxpayer. (B) Qualified interconnection property The term qualified interconnection property means, with respect to an energy project which is not a microgrid controller, any tangible property— (i) which is part of an addition, modification, or upgrade to a transmission or distribution system which is required at or beyond the point at which the energy project interconnects to such transmission or distribution system in order to accommodate such interconnection, (ii) either— (I) which is constructed, reconstructed, or erected by the taxpayer, or (II) for which the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by such taxpayer, and (iii) the original use of which, pursuant to an interconnection agreement, commences with a utility. (C) Interconnection agreement The term interconnection agreement means an agreement with a utility for the purposes of interconnecting the energy property owned by such taxpayer to the transmission or distribution system of such utility. (D) Utility The term utility means the owner or operator of an electrical transmission or distribution system which is subject to the regulatory authority of a State or political subdivision thereof, any agency or instrumentality of the United States, a public service or public utility commission or other similar body of any State or political subdivision thereof, or the governing or ratemaking body of an electric cooperative. (E) Special rule for interconnection property In the case of expenses paid or incurred for interconnection property, amounts otherwise chargeable to capital account with respect to such expenses shall be reduced under rules similar to the rules of section 50(c). . (k) Wage and apprenticeship requirements Section 48(a) is amended by adding at the end the following new paragraphs: (9) Increased credit amount for energy projects (A) In general (i) Rule In the case of any energy project which satisfies the requirements of subparagraph (B), the amount of the credit determined under this subsection (determined after the application of paragraphs (1) through (8) shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (ii) Energy project defined For purposes of this subsection the term energy project means a project consisting of one or more energy properties that are part of a single project. The requirements of this paragraph shall be applied to such project. (B) Project requirements A project meets the requirements of this subparagraph if it is one of the following: (i) A project with a maximum net output of less than 1 megawatt of electrical or thermal energy. (ii) A project the construction of which begins before the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (10) and (11). (iii) A project which satisfies the requirements of paragraphs (10) and (11). (10) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any energy project are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in— (i) the construction of such energy project, and (ii) for the five-year period beginning on the date such project is originally placed in service, the alteration or repair of such project, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (C) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under this subsection by reason of this paragraph with respect to any project which does not satisfy the requirements under subparagraph (A) (after application of subparagraph (B)) for the period described in clause (ii) of subparagraph (A) (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). (11) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (12) Domestic content bonus credit amount (A) In general In the case of any energy project which satisfies the requirement under subparagraph (B), for purposes of applying paragraph (2) with respect to such property, the energy percentage shall be increased by the applicable credit rate increase. (B) Requirement Rules similar to the rules of section 45(b)(9)(B) shall apply. (C) Applicable credit rate increase For purposes of subparagraph (A), the applicable credit rate increase shall be— (i) in the case of an energy project that does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and (ii) in the case of an energy project that satisfies the requirements of paragraph (9)(B), 10 percentage points. (13) Phaseout for elective payment Rules similar to the rules of section 45(b)(10) shall apply. (14) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (l) Special rule for property financed by tax-exempt bonds Section 48(a)(4) is amended to read as follows: (4) Special rule for property financed by tax-exempt bonds Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section. . (m) Treatment of certain contracts involving energy storage Section 7701(e) is amended— (1) in paragraph (3)— (A) in subparagraph (A)(i), by striking or at the end of subclause (II), by striking and at the end of subclause (III) and inserting or , and by adding at the end the following new subclause: (IV) the operation of a storage facility, and , and (B) by adding at the end the following new subparagraph: (F) Storage facility For purposes of subparagraph (A), the term storage facility means a facility which uses energy storage technology within the meaning of section 48(c)(6). , and (2) in paragraph (4), by striking or water treatment works facility and inserting water treatment facility, or storage facility . (n) Increase in credit rate for energy communities Section 48(a) is amended by adding at the end the following new paragraph: (15) Increase in credit rate for energy communities (A) In general In the case of any energy project that is placed in service within an energy community (as defined in section 45(b)(11)(B)), for purposes of applying paragraph (2) with respect to such property, the energy percentage shall be increased by the applicable credit rate increase. (B) Applicable credit rate increase For purposes of subparagraph (A), the applicable credit rate increase shall be equal to— (i) in the case of any energy project that does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and (ii) in the case of any energy project that satisfies the requirements of paragraph (9)(B), 10 percentage points. . (o) Effective dates (1) The amendments made by subsections (a), (b), (c), (d), (h), (i), (j), (l), (m), and (n) of this section shall apply to property placed in service after December 31, 2021. (2) The amendments made by subsections (e), (f), and (g) shall apply to property placed in service after December 31, 2021, and, for any property the construction of which begins prior to January 1, 2022, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2021. (3) The amendments made by subsection (k) shall apply to property the construction of which begins after December 31, 2021. 136103. Increase in energy credit for solar facilities placed in service in connection with low-income communities (a) In general Section 48 is amended by adding at the end the following new subsection: (e) Special rules for certain solar and wind facilities placed in service in connection with low-income communities (1) In general In the case of any qualified solar and wind facility with respect to which the Secretary makes an allocation of environmental justice solar and wind capacity limitation under paragraph (4)— (A) the energy percentage otherwise determined under subsection (a)(2) with respect to any eligible property which is part of such facility shall be increased by— (i) in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and (ii) in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and (B) the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as— (i) the environmental justice solar and wind capacity limitation allocated to such facility, bears to (ii) the total megawatt nameplate capacity of such facility, as measured in direct current. (2) Qualified solar and wind facility For purposes of this subsection— (A) In general The term qualified solar and wind facility means any facility— (i) which generates electricity solely from property described in section 45(d)(1) or in clause (i) or (vi) of subsection (a)(3)(A), (ii) which has a maximum net output of less than 5 megawatts, and (iii) which— (I) is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 ( 25 U.S.C. 3501(2) )), or (II) is part of a qualified low-income residential building project or a qualified low-income economic benefit project. (B) Qualified low-income residential building project A facility shall be treated as part of a qualified low-income residential building project if— (i) such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 ( 34 U.S.C. 12491(a)(3) ), a Housing Development Fund Corporation cooperative under Article XI of the New York State Private Housing Finance Law, a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103(22) )) or such other affordable housing programs as the Secretary may provide, and (ii) the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building. (C) Qualified low-income economic benefit project A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of— (i) less than 200 percent of the poverty line applicable to a family of the size involved, or (ii) less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). (D) Financial benefit For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit. (3) Eligible property For purposes of this section, the term eligible property means energy property which is part of a facility described in section 45(d)(1) or in clause (i) or (vi) of subsection (a)(3)(A), including energy storage property (described in subsection (a)(3)(A)(viii)) installed in connection with such energy property. (4) Allocations (A) In general Not later than 270 days after the date of enactment of this subsection, the Secretary shall establish a program to allocate amounts of environmental justice solar and wind capacity limitation to qualified solar and wind facilities. (B) Limitation The amount of environmental justice solar and wind capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. (C) Annual capacity limitation For purposes of this paragraph, the term annual capacity limitation means 1.8 gigawatts of direct current capacity for each of calendar years 2022 through 2026, and zero thereafter. (D) Carryover of unused limitation If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2026 except as provided in section 48F(i)(4)(D)(ii). (E) Placed in service deadline (i) In general Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part. (ii) Application of carryover Any amount of environmental justice solar and wind capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph. (F) Selection criteria (i) In general In determining to which qualified solar and wind facilities to allocate environmental justice solar and wind capacity limitation under this paragraph, the Secretary shall take into consideration which facilities will result in— (I) the greatest health and economic benefits, including the ability to withstand extreme weather events, for individuals described in section 45D(e)(2), (II) the greatest employment and wages for such individuals, and (III) the greatest engagement with, outreach to, or ownership by, such individuals, including through partnerships with local governments, community-based organizations, an Indian tribal government (as defined in clause (ii)), or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ). (ii) Indian tribal government For purposes of this subparagraph, the term Indian tribal government means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ). (G) Disclosure of allocations The Secretary shall, upon making an allocation of environmental justice solar and wind capacity limitation under this paragraph, publicly disclose the identity of the applicant, the amount of the environmental justice solar and wind capacity limitation allocated to such applicant, and the location of the facility for which such allocation is made. (5) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility. . (b) Effective date The amendments made by this section shall take effect on January 1, 2022. 136104. Elective payment for energy property and electricity produced from certain renewable resources, etc (a) In general Subchapter B of chapter 65 is amended by inserting after section 6416 the following new section: 6417. Elective payment of applicable credits (a) In general In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any applicable credit determined with respect to such taxpayer, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit. (b) Applicable credit The term applicable credit means each of the following: (1) So much of the renewable electricity production credit determined under section 45 as is attributable to qualified facilities which are originally placed in service after December 31, 2021, and with respect to which an election is made under subsection (c)(3). (2) The energy credit determined under section 48. (3) So much of the credit for carbon oxide sequestration determined under section 45Q as is attributable to carbon capture equipment which is originally placed in service after December 31, 2021, and with respect to which an election is made under subsection (c)(3). (4) The credit for alternative fuel vehicle refueling property allowed under section 30C. (5) The qualifying advanced energy project credit determined under section 48C. (c) Special rules For purposes of this section— (1) Application to tax-exempt and governmental entities In the case of any organization exempt from the tax imposed by subtitle A, any State or local government (or political subdivision thereof), the Tennessee Valley Authority, an Indian tribal government (as defined in section 48(e)(4)(F)(ii)), or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ) which makes the election described in subsection (a), any applicable credit shall be determined— (A) without regard to paragraphs (3) and (4)(A)(i) of section 50(b), and (B) by treating any property with respect to which such credit is determined as used in a trade or business of the taxpayer. (2) Application to partnerships and S corporations (A) In general In the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under this subsection (in such manner as the Secretary may provide) with respect to such credit— (i) the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit, (ii) subsection (d) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit, (iii) any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and (iv) a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year. (B) Coordination with application at partner or shareholder level In the case of any partnership or S corporation, subsection (a) shall be applied at the partner or shareholder level after application of subparagraph (A)(ii). (3) Elections (A) In general Any election under this subsection shall be made not later than the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 270 days after the date of the enactment of this section. Any such election, once made, shall be irrevocable. Except as otherwise provided in this paragraph, any election under this subsection shall apply with respect to any credit for the taxable year for which the election is made. (B) Renewable electricity production credit In the case of the credit described in subsection (b)(1), any election under this subsection shall— (i) apply separately with respect to each qualified facility, (ii) be made for the taxable year in which such qualified facility is originally placed in service, and (iii) shall apply to such taxable year and all subsequent taxable years with respect to such qualified facility. (C) Credit for carbon oxide sequestration In the case of the credit described in subsection (b)(3), any election under this subsection shall— (i) apply separately with respect to the carbon capture equipment originally placed in service by the taxpayer during a taxable year, and (ii) shall apply to such taxable year and all subsequent taxable years with respect to such equipment. (4) Timing The payment described in subsection (a) shall be treated as made on— (A) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and (B) in any other case, the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed. (5) Treatment of payments to partnerships and S corporations For purposes of section 1324 of title 31, United States Code, the payments under paragraph (2)(A)(ii) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. (6) Additional information As a condition of, and prior to, a payment under this section, the Secretary may require such information or registration as the Secretary deems necessary or appropriate for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section. (7) Excessive payment (A) In general In the case of a payment made to a taxpayer under this subsection or any amount treated as a payment which is made by the taxpayer under subsection (a) which the Secretary determines constitutes an excessive payment, the tax imposed on such taxpayer by chapter 1 for the taxable year in which such determination is made shall be increased by an amount equal to the sum of— (i) the amount of such excessive payment, plus (ii) an amount equal to 20 percent of such excessive payment. (B) Reasonable cause Subparagraph (A)(ii) shall not apply if the taxpayer demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause. (C) Excessive payment defined For purposes of this paragraph, the term excessive payment means, with respect to a facility for which an election is made under this section for any taxable year, an amount equal to the excess of— (i) the amount of the payment made to the taxpayer under this subsection or any amount treated as a payment which is made by the taxpayer under subsection (a) with respect to such facility for such taxable year, over (ii) the amount of the credit which, without application of this subsection, would be otherwise allowable (determined without regard to section 38(c)) under this section with respect to such facility for such taxable year. (d) Denial of double benefit In the case of a taxpayer making an election under this section with respect to an applicable credit, such credit shall be reduced to zero and shall, for any other purposes under this title, be deemed to have been allowed to the taxpayer for such taxable year. (e) Mirror code possessions In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. (f) Basis reduction and recapture Except as otherwise provided in subsection (c)(1)(A), rules similar to the rules of section 50 shall apply for purposes of this section. (g) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— (1) regulations or other guidance providing rules for determining a partner’s distributive share of the tax exempt income described in subsection (c)(2)(A)(iii), and (2) guidance to ensure that the amount of the payment or deemed payment made under this section is commensurate with the amount of the credit that would be otherwise allowable (determined without regard to section 38(c)). . (b) Application with respect to real estate investment trusts Section 50(d) is amended by adding at the end the following: In the case of a real estate investment trust making an election under section 6417, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any qualified investment credit property of a real estate investment trust. . (d) Clerical amendment The table of sections for subchapter B of chapter 65 is amended by inserting after the item relating to section 6416 the following new item: Sec. 6417. Elective payment of applicable credits. . (e) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 136105. Investment credit for electric transmission property (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48C the following new section: 48D. Qualifying electric transmission property (a) Allowance of credit For purposes of section 46, the qualifying electric transmission property credit for any taxable year is an amount equal to 6 percent of the basis of qualifying electric transmission property placed in service by the taxpayer during such taxable year. (b) Qualifying electric transmission property For purposes of this section— (1) In general The term qualifying electric transmission property means tangible property— (A) which is a qualifying electric transmission line or related transmission property, (B) (i) the construction, reconstruction, or erection of which is completed by the taxpayer, or (ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and (C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. (2) Qualifying electric transmission line (A) In general The term qualifying electric transmission line means an electric transmission line which— (i) is capable of transmitting electricity at a voltage of not less than 275 kilovolts or is a superconducting line, and (ii) has a transmission capacity of not less than 500 megawatts. (B) Superconducting line For purposes of subparagraph (A), the term superconducting line means a transmission line that conducts all of its current over a superconducting material. (3) Related transmission property (A) In general The term related transmission property means, with respect to any electric transmission line, any property which— (i) is listed as a transmission plant in the Uniform System of Accounts for the Federal Energy Regulatory Commission under part 101 of subchapter C of chapter I of title 18, Code of Federal Regulations, and (ii) is— (I) necessary for the operation of such electric transmission line, or (II) conversion equipment along such electric transmission line. (B) Credit not allowed separately with respect to related property No credit shall be allowed to any taxpayer under this section with respect to any related transmission property unless such taxpayer is allowed a credit under this section with respect to the qualifying electric transmission line to which such related transmission property relates. (c) Application to replacement and upgraded systems (1) In general In the case of any qualifying electric transmission line (determined without regard to this subsection) which replaces any existing electric transmission line— (A) the 500 megawatts referred to in subsection (b)(2)(A)(ii) shall be increased by the transmission capacity of such existing electric transmission line, and (B) in no event shall the basis of such existing electric transmission line (or related transmission property with respect to such existing electric transmission line) be taken into account in determining the credit allowed under this section. (2) Upgrades treated as replacements For purposes of this subsection, any upgrade of an existing electric transmission line shall be treated as a replacement of such line. (d) Exception for certain property and projects already in process (1) In general No credit shall be allowed under this section with respect to— (A) any property that is selected for cost allocation in a regional transmission plan approved by a transmission planning region that was approved by the Federal Energy Regulatory Commission prior to January 1, 2022, or (B) any property if— (i) construction of such property begins before January 1, 2022, or (ii) construction of any portion of the qualifying electric transmission line to which such property relates begins before such date. (2) When construction begins For purposes of subparagraph (B) of paragraph (1), construction of property begins when the taxpayer has begun on-site physical work of a significant nature with respect to such property. (e) Certain qualified progress expenditures rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (f) Credit adjustments; Wage and apprenticeship requirements (1) Increased credit amount for applicable facilities (A) In general (i) Rule In the case of any applicable facility which satisfies the requirements of subparagraph (B), the amount of the credit determined under subsection (a) shall be such amount multiplied by 5 (determined without regard to this sentence). (ii) Applicable facility defined For purposes of this subsection, the term applicable facility means a qualifying electric transmission line and related transmission property to which such qualifying electric transmission line relates. (B) Applicable facility requirements An applicable facility meets the requirements of this subparagraph if it is one of the following: (i) An applicable facility the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2) and (3). (ii) An applicable facility which satisfies the requirements of paragraphs (2) and (3). (2) Prevailing wage requirements Rules similar to the rules of section 48(a)(10) shall apply. (3) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (4) Domestic content bonus credit amount Rules similar to the rules of section 48(a)(12) shall apply. (5) Phaseout for elective payment Rules similar to the rules of section 48(a)(13) shall apply. (g) Termination This section shall not apply to any qualifying electric transmission property unless such property is placed in service before January 1, 2032. (h) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (b) Elective payment of credit Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (6) The qualifying electric transmission property credit determined under section 48D. . (c) Special rule for property financed by tax-exempt bonds Section 48D, as added by subsection (a), is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Special rule for property financed by tax-exempt bonds Rules similar to the rules of section 45(b)(3) shall apply. . (d) Conforming amendments (1) Section 46 is amended— (A) by striking and at the end of paragraph (5), (B) by striking the period at the end of paragraph (6) and inserting , and , and (C) by adding at the end the following new paragraph: (7) the qualifying electric transmission property credit. . (2) Section 49(a)(1)(C) is amended— (A) by striking and at the end of clause (vii), (B) by striking the period at the end of clause (viii) and inserting , and , and (C) by adding at the end the following new clause: (ix) the basis of any qualifying electric transmission property under section 48D. . (3) Section 50(a)(2)(E) is amended by striking or 48C(b)(2) and inserting 48C(b)(2), or 48D(e) . (4) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48C the following new item: Sec. 48D. Qualifying electric transmission property. . (e) Effective date (1) In general The amendments made by subsections (a), (b), and (d) of this section shall apply to property placed in service after December 31, 2021. (2) Tax-exempt bonds The amendment made by subsection (c) shall apply to property the construction of which begins after December 31, 2021. (3) Exception for certain property and projects already in process For exclusion of certain property and projects already in process, see section 48D(d) of the Internal Revenue Code of 1986 (as added by this section). 136106. Extension and modification of credit for carbon oxide sequestration (a) Modification of carbon oxide capture requirements Section 45Q(d) is amended to read as follows: (d) Qualified facility (1) In general For purposes of this section, the term qualified facility means a facility which captures— (A) in the case of a direct air capture facility, not less than 1,000 metric tons of qualified carbon oxide during the taxable year, (B) in the case of an electricity generating facility, not less than 18,750 metric tons of qualified carbon oxide during the taxable year and not less than 75 percent by mass of the carbon oxide that would otherwise be released into the atmosphere by such facility during such taxable year, and (C) in the case of any other facility, not less than 12,500 metric tons of qualified carbon oxide during the taxable year. (2) Termination rule The term qualified facility means any industrial facility or direct air capture facility— (A) the construction of which begins before January 1, 2032, and (B) either— (i) the construction of carbon capture equipment of which begins before such date, or (ii) the original planning and design of which includes installation of carbon capture equipment. . (b) Determination of applicable dollar amount (1) In general Section 45Q(b)(1) is amended by striking subparagraph (B) and by inserting after subparagraph (A) the following new subparagraphs: (B) Special rule for direct air capture facilities For any qualified facility described in subsection (d)(1)(A), the construction of which begins after December 31, 2021, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined with respect to such facility under subparagraph (A), except that such subparagraph shall be applied— (i) in clause (i)(I) of such subparagraph, by substituting $36 for $17 , and (ii) in clause (i)(II) of such subparagraph, by substituting $26 for $12 . (C) Applicable dollar amount for additional carbon capture equipment In the case of any qualified facility the construction of which begins before January 1, 2022, if any additional carbon capture equipment is installed at such facility and construction of such equipment began after December 31, 2021, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined under subparagraph (A), except that such subparagraph shall be applied by substituting carbon capture equipment for qualified facility each place it appears. . (2) Conforming amendments (A) Section 45Q(b)(1)(A) is amended by striking The applicable dollar amount and inserting Except as provided in subparagraph (B), the applicable dollar amount . (B) Section 45Q(b)(1)(D), as redesignated by subparagraph (A), is amended by striking subparagraph (A) and inserting subparagraph (A), (B), or (C) . (C) Section 45Q(b)(2) is amended by inserting Subject to paragraph (3) before in the case . (c) Wage and apprenticeship requirements Section 45Q is amended by redesignating subsection (h) as subsection (i) and inserting after subsection (g) following new subsection: (h) Increased credit amount for qualified facilities and carbon capture equipment (1) In general In the case of any qualified facility and any carbon capture equipment which satisfy the requirements of paragraph (2), the amount of the credit determined under subsection (a) shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (2) Requirements The requirements described in this subparagraph are that— (A) with respect to any qualified facility the construction of which begins on or after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4), as well as any carbon capture equipment placed in service at such facility— (i) subject to subparagraph (B) of paragraph (3), such facility and equipment satisfy the requirements under subparagraph (A) of such paragraph, and (ii) the construction of such facility and equipment satisfy the requirements under paragraph (4), (B) with respect to any carbon capture equipment the construction of which begins after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4), and which is installed at a qualified facility the construction of which began prior to such date— (i) subject to subparagraph (B) of paragraph (3), such equipment satisfies the requirements of subparagraphs (A) of such paragraph, and (ii) the construction of such facility and equipment satisfy the requirements under paragraph (4), and (C) the construction of carbon capture equipment begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4), and such equipment is installed at a qualified facility the construction of which begins prior to such date. (3) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any qualified facility and any carbon capture equipment placed in service at such facility are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in— (i) in the case of— (I) any qualified facility described in subparagraph (A)(i) of paragraph (2), the construction of such facility and carbon capture equipment placed in service at such facility, or (II) any carbon capture equipment described in subparagraph (A)(ii) of paragraph (2), the construction of such equipment, and (ii) for the period of the taxable year which is within the 12-year period beginning on the date on which any carbon capture equipment is originally placed in service at any qualified facility (as described in paragraphs (3)(A) and (4)(A) of subsection (a)), the alteration or repair of such facility or such equipment, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this paragraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (4) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (5) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (d) Increased applicable dollar amount (1) In general Section 45Q(b)(1) is amended— (A) by amending clause (i) of subparagraph (A) to read as follows: (i) for any taxable year beginning in a calendar year after 2016 and before 2027— (I) for purposes of paragraph (3) of subsection (a), $17 for each calendar year during such period, and (II) for purposes of paragraph (4) of such subsection, $12 for each calendar year during such period, and , and (B) in clause (ii)— (i) in subclause (I), by striking $50 and inserting the amount determined under clause (i)(I) with respect to the qualified facility , and (ii) in subclause (II), by striking $35 and inserting the amount determined under clause (i)(II) with respect to the qualified facility . (e) Installation of additional carbon capture equipment on certain facilities Section 45Q(b) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: (3) Installation of additional carbon capture equipment on certain facilities In the case of a qualified facility described in paragraph (1)(C), for purposes of determining the amount of qualified carbon oxide which is captured by the taxpayer, rules similar to rules of paragraph (2) shall apply for purposes of subsection (a). . (f) Credit reduced for tax-exempt bonds Section 45Q(f) is amended by adding at the end the following new paragraph: (8) Credit reduced for tax-exempt bonds Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section. . (g) Application of section for certain carbon capture equipment Section 45Q(g) is amended by inserting the earlier of January 1, 2023 and before the end of the calendar year . (h) Election Section 45Q(f) is amended by adding at the end the following new paragraph: (9) Election For purposes of paragraphs (3) and (4) of subsection (a), a person described in paragraph (3)(A)(ii) may elect, at such time and in such manner as the Secretary may prescribe, to have the 12–year period begin on the first day of the first taxable year in which a credit under this section is claimed with respect to carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018 (after application of subsection (f)(6) where applicable) if— (A) no taxpayer claimed a credit under this section with respect to such carbon capture equipment for any prior taxable year, (B) the qualified facility at which such carbon capture equipment is placed in service is located in an area affected by a federally–declared disaster (as defined by section 165(i) (5)(A)) after the carbon capture equipment is originally placed in service, and (C) such federally–declared disaster results in a cessation of the operation of the qualified facility after the carbon capture equipment is originally placed in service. . (i) Effective dates (1) The amendments made by subsections (a), (b), (c), (d), (e), (f), and (g) shall apply to facilities or equipment the construction of which begins after December 31, 2021. (2) The amendments made by subsection (h) shall apply to carbon oxide captured and disposed of after December 31, 2021. 136107. Green energy publicly traded partnerships (a) In general Section 7704(d)(1)(E) is amended— (1) by striking income and gains derived from the exploration and inserting income and gains derived from— (i) the exploration , (2) by inserting or before industrial source , and (3) by striking , or the transportation or storage and all that follows and inserting the following: (ii) the generation of electric power or thermal energy exclusively using any qualified energy resource (as defined in section 45(c)(1)), (iii) the operation of energy property (as defined in section 48(a)(3), determined without regard to any date by which the construction of the facility is required to begin), (iv) in the case of a facility described in paragraph (3) or (7) of section 45(d) (determined without regard to any placed in service date or date by which construction of the facility is required to begin), the accepting or processing of open-loop biomass or municipal solid waste, (v) the transportation or storage of any fuel described in subsection (b), (c), (d), or (e) of section 6426, (vi) the conversion of renewable biomass (as defined in subparagraph (I) of section 211(o)(1) of the Clean Air Act (as in effect on the date of the enactment of this clause)) into renewable fuel (as defined in subparagraph (J) of such section as so in effect), or the storage or transportation of such fuel, (vii) the production, storage, or transportation of any fuel which— (I) uses as its primary feedstock carbon oxides captured from an anthropogenic source or the atmosphere, (II) does not use as its primary feedstock carbon oxide which is deliberately released from naturally occurring subsurface springs, and (III) is determined by the Secretary to achieve a reduction of not less than a 60 percent in lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(H) of the Clean Air Act, as in effect on the date of the enactment of this clause) compared to baseline lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(C) of such Act, as so in effect), or (viii) a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility is required to begin). . (b) Effective date The amendments made by this section apply to taxable years beginning after December 31, 2021. 136108. Zero-emission nuclear power production credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45W. Zero-emission nuclear power production credit (a) Amount of credit For purposes of section 38, the zero-emission nuclear power production credit for any taxable year is an amount equal to the amount by which— (1) the product of— (A) 0.3 cents, multiplied by (B) the kilowatt hours of electricity— (i) produced by the taxpayer at a qualified nuclear power facility, and (ii) sold by the taxpayer to an unrelated person during the taxable year, exceeds (2) the reduction amount for such taxable year. (b) Definitions (1) Qualified nuclear power facility For purposes of this section, the term qualified nuclear power facility means any nuclear facility— (A) which is owned by the taxpayer and which uses nuclear energy to produce electricity, (B) which is not an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and (C) which is placed in service before the date of the enactment of this section. (2) Reduction amount (A) In general For purposes of this section, the term reduction amount means, with respect to any qualified nuclear power facility for any taxable year, the amount equal to the lesser of— (i) the amount determined under subsection (a)(1), or (ii) the amount equal to 16 percent of the excess of— (I) subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the electricity produced by such facility) and sold to an unrelated person during such taxable year, over (II) the amount equal to the product of— (aa) 2.5 cents, multiplied by (bb) the amount determined under subsection (a)(1)(B). (B) Treatment of certain receipts (i) In general The amount determined under subparagraph (A)(ii)(I) shall include any amount received by the taxpayer during the taxable year with respect to the qualified nuclear power facility from a zero-emission credit program unless the amount received by the taxpayer is subject to reduction— (I) by the full amount of the credit determined under this section, or (II) by any lesser amount if such amount entirely offsets the amount received from a zero-emission credit program. (ii) Zero-emission credit program For purposes of this subparagraph, the term zero-emission credit program means any payments to a qualified nuclear power facility as a result of any Federal, State or local government program for, in whole or in part, the zero-emission, zero-carbon, or air quality attributes of any portion of the electricity produced by such facility. (3) Electricity For purposes of this section, the term electricity means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power. (c) Other rules (1) Inflation adjustment The 0.3 cent amount in subsection (a)(1)(A) and the 2.5 cent amount in subsection (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), as applied by substituting calendar year 2022 for calendar year 1992 in subparagraph (B) thereof) for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 2.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. (2) Special rules Rules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section. (3) Ultimate purchaser For purposes of this section, electricity produced by the taxpayer shall be treated as sold to an unrelated person if the ultimate purchaser of such electricity is unrelated to such taxpayer. (d) Wage requirements (1) Increased credit amount for qualified nuclear power facilities In the case of any qualified nuclear power facility which satisfies the requirements of paragraph (2), the amount of the credit determined under subsection (a) shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (2) Prevailing wage requirements (A) In general The taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the alteration or repair of a facility shall be paid wages at rates not less than the prevailing rates for alteration or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (3) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. (e) Termination This section shall not apply to taxable years beginning after December 31, 2027. . (b) Conforming amendments (1) Section 38(b) of the Internal Revenue Code of 1986 is amended— (A) in paragraph (32), by striking plus at the end, (B) in paragraph (33), by striking the period at the end and inserting , plus , and (C) by adding at the end the following new paragraph: (34) the zero-emission nuclear power production credit determined under section 45W(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45W. Zero-emission nuclear power production credit. . (c) Elective payment of credit Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (7) The zero-emission nuclear power production credit determined under section 45W. . (d) Effective date This section shall apply to electricity produced and sold after December 31, 2021, in taxable years beginning after such date. 2 Renewable Fuels 136201. Extension of incentives for biodiesel, renewable diesel and alternative fuels (a) Biodiesel and renewable diesel credit Section 40A(g) is amended by striking December 31, 2022 and inserting December 31, 2026 . (b) Biodiesel mixture credit (1) In general Section 6426(c)(6) is amended by striking December 31, 2022 and inserting December 31, 2026 . (2) Fuels not used for taxable purposes Section 6427(e)(6)(B) is amended by striking December 31, 2022 and inserting December 31, 2026 . (c) Alternative fuel credit Section 6426(d)(5) is amended by striking December 31, 2021 and inserting December 31, 2026 . (d) Alternative fuel mixture credit Section 6426(e)(3) is amended by striking December 31, 2021 and inserting December 31, 2026 . (e) Payments for alternative fuels Section 6427(e)(6)(C) is amended by striking December 31, 2021 and inserting December 31, 2026 . (f) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2021. 136202. Extension of second generation biofuel incentives (a) In general Section 40(b)(6)(J)(i) is amended by striking 2022 and inserting 2027 . (b) Effective date The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2021. 136203. Sustainable aviation fuel credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by inserting after section 40A the following new section: 40B. Sustainable aviation fuel credit (a) In general For purposes of section 38, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture which occurs during such taxable year, an amount equal to the product of— (1) the number of gallons of sustainable aviation fuel in such mixture, multiplied by (2) the sum of— (A) $1.25, plus (B) the applicable supplementary amount with respect to such sustainable aviation fuel. (b) Applicable supplementary amount For purposes of this section, the term applicable supplementary amount means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for each percentage point by which the lifecycle greehouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. In no event shall the applicable supplementary amount determined under this subsection exceed $0.50. (c) Qualified mixture For purposes of this section, the term qualified mixture means a mixture of sustainable aviation fuel and kerosene if— (1) such mixture is produced by the taxpayer in the United States, (2) such mixture is used by the taxpayer (or sold by the taxpayer for use) in an aircraft, (3) such sale or use is in the ordinary course of a trade or business of the taxpayer, and (4) the transfer of such mixture to the fuel tank of such aircraft occurs in the United States. (d) Sustainable aviation fuel For purposes of this section, the term sustainable aviation fuel means liquid fuel which— (1) meets the requirements of— (A) ASTM International Standard D7566, or (B) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, (2) is not derived from palm fatty acid distillates or petroleum, and (3) has been certified in accordance with subsection (e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent. (e) Lifecycle greenhouse gas emissions reduction percentage For purposes of this section, the term lifecycle greenhouse gas emissions reduction percentage means, with respect to any sustainable aviation fuel, the percentage reduction in lifecycle greenhouse gas emissions— (1) as defined in accordance with— (A) the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or (B) any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(H) ), and (2) achieved by such fuel as compared with petroleum-based jet fuel. (f) Registration of sustainable aviation fuel producers No credit shall be allowed under this section with respect to any sustainable aviation fuel unless the producer of such fuel is registered with the Secretary under section 4101 and has provided such other information with respect to such fuel as the Secretary may require for purposes of carrying out this section. (g) Coordination with credit against excise tax The amount of the credit determined under this section with respect to any sustainable aviation fuel shall, under rules prescribed by the Secretary, be properly reduced to take into account any benefit provided with respect to such sustainable aviation fuel solely by reason of the application of section 6426 or 6427(e). (h) Termination This section shall not apply to any sale or use after December 31, 2026. . (b) Credit made part of general business credit Section 38(b) is amended by striking plus at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting , plus , and by inserting after paragraph (34) the following new paragraph: (35) the sustainable aviation fuel credit determined under section 40B. . (c) Coordination with biodiesel incentives (1) In general Section 40A(d)(1) is amended by inserting or 40B after determined under section 40 . (2) Conforming amendment Section 40A(f) is amended by striking paragraph (4). (d) Sustainable aviation fuel added to credit for alcohol fuel, biodiesel, and alternative fuel mixtures (1) In general Section 6426 is amended by adding at the end the following new subsection: (k) Sustainable aviation fuel credit (1) In general For purposes of this section, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture, an amount equal to the product of— (A) the number of gallons of sustainable aviation fuel in such mixture, multiplied by (B) the sum of— (i) $1.25, plus (ii) the applicable supplementary amount with respect to such sustainable aviation fuel. (2) Applicable supplementary amount For purposes of this subsection, the term applicable supplementary amount has the meaning given such term in section 40B(b). (3) Other definitions Any term used in this subsection which is also used in section 40B shall have the meaning given such term by section 40B. (4) Registration requirement For purposes of this subsection, rules similar to the rules of section 40B(f) shall apply. . (2) Conforming amendments (A) Section 6426 is amended— (i) in subsection (a)(1), by striking and (e) and inserting (e), and (k) , and (ii) in subsection (h), by striking under section 40 or 40A and inserting under section 40, 40A, or 40B . (B) Section 6427(e)(6) is amended by striking the and at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , and , and by adding at the end the following new subparagraph: (E) any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) sold or used after December 31, 2026. . (C) Section 6427(e) is amended in the heading by striking or alternative fuel and inserting, alternative fuel, or sustainable aviation fuel . (D) Section 6427(e)(1) is amended by inserting or the sustainable aviation fuel mixture credit after alternative fuel mixture credit . (E) Section 4101(a)(1) is amended by inserting every person producing sustainable aviation fuel (as defined in section 40B or section 6426(k)(3)), before and every person producing second generation biofuel . (e) Guidance Under rules prescribed by the Secretary of the Treasury (or the Secretary’s delegate), the amount of the credit allowed under section 40B of the Internal Revenue Code of 1986 (as added by this subsection) shall be properly reduced to take into account any benefit provided with respect to sustainable aviation fuel (as defined in such section 40B) by reason of the application of section 6426 or section 6427(e). (f) Amount of credit included in gross income Section 87 is amended by striking and in paragraph (1), by striking the period at the end of paragraph (2) and inserting , and , and by adding at the end the following new paragraph: (3) the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a). . (g) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2022. 136204. Clean hydrogen (a) Credit for production of clean hydrogen (1) In general Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 45X. Credit for production of clean hydrogen (a) Amount of credit For purposes of section 38, the clean hydrogen production credit for any taxable year is an amount equal to the product of— (1) the applicable amount, multiplied by (2) the kilograms of qualified clean hydrogen produced by the taxpayer during such taxable year at a qualified clean hydrogen production facility during the 10-year period beginning on the date such facility was originally placed in service. (b) Applicable amount (1) In general For purposes of subsection (a)(1), the applicable amount shall be an amount equal to the applicable percentage of $0.60. If any amount as determined under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage shall be determined as follows: (A) In the case of any qualified clean hydrogen which is produced by a facility that is placed in service before January 1, 2027 through a process that results in a lifecycle greenhouse gas emissions rate of— (i) not greater than 6 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 4 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 15 percent. (B) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) less than 4 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 2.5 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 20 percent. (C) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) less than 2.5 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 1.5 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 25 percent. (D) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of— (i) less than 1.5 kilograms of CO2e per kilogram of hydrogen, and (ii) not less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 33.4 percent. (E) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 100 percent. (3) Inflation adjustment The $0.60 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting 2020 for 1992 in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. (c) Definitions For purposes of this section— (1) Lifecycle greenhouse gas emissions (A) In general Subject to subparagraph (B), the term ‘lifecycle greenhouse gas emissions’ has the same meaning given such term under subparagraph (H) of section 211(o)(1) of the Clean Air Act ( 42 U.S.C. 7545(o)(1) ), as in effect on the date of enactment of this section. (B) GREET Model The term lifecycle greenhouse gas emissions shall only include emissions through the point of production (well-to-gate), as determined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the GREET model ) developed by Argonne National Laboratory, or a successor model (as determined by the Secretary). (2) Qualified clean hydrogen (A) In general The term qualified clean hydrogen means hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 6 kilograms of CO2e per kilogram of hydrogen. (B) Additional requirements Such term shall not include any hydrogen unless such hydrogen is produced— (i) in the United States (as defined in section 638(1) or a possession of the United States (as defined in section 638(2)), (ii) in the ordinary course of a trade or business of the taxpayer, and (iii) for sale or use, as verified by an unrelated third party of such production and sale or use in such form or manner as the Secretary may prescribe under subsection (f)(2). (3) Qualified clean hydrogen production facility (A) In general The term qualified clean hydrogen production facility means a facility owned by the taxpayer which produces qualified clean hydrogen and which meets the requirements of subparagraph (B). (B) Termination The term qualified clean hydrogen production facility shall not include any facility the construction of which begins after December 31, 2028. (d) Special rules (1) Treatment of facilities owned by more than 1 taxpayer Rules similar to the rules section 45(e)(3) shall apply for purposes of this section. (2) Coordination with credit for carbon oxide sequestration No credit shall be allowed under this section with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which a credit is allowed to any taxpayer under section 45Q for the taxable year or any prior taxable year. (e) Increased credit amount for qualified clean hydrogen production facilities (1) In general In the case of any qualified clean hydrogen production facility which satisfies the requirements of paragraph (2), the amount of the credit determined under subsection (a) with respect to qualified clean hydrogen described in subsection (b)(2) shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (2) Requirements A facility meets the requirements of this subparagraph if it is one of the following: (A) A facility— (i) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4), and (ii) which meets the requirements of paragraph (3) with respect to construction, alteration, or repair of facilities which occurs after such date. (B) A facility which satisfies the requirements of paragraphs (3) and (4). (3) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any qualified clean hydrogen production facility are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in— (i) the construction of such facility, and (ii) for the period of the taxable year which is within the 10-year period beginning on the date the facility was originally placed in service, the alteration or repair of such facility, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this paragraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (4) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (5) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. (f) Regulations Not later than 1 year after the date of enactment of this section, the Secretary shall issue regulations or other guidance to carry out the purposes of this section, including regulations or other guidance— (1) for determining lifecycle greenhouse gas emissions, and (2) which require verification by unrelated third parties of the production and sale or use of qualified clean hydrogen with respect to which credit is otherwise allowed under this section. . (2) Elective payment of credit (A) In general Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (8) So much of the the credit for production of clean hydrogen determined under section 45X as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2011, and with respect to which an election is made under subsection (c)(3). . (B) Election Section 6417(c)(3), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (D) Credit for production of clean hydrogen In the case of the credit described in subsection (b)(8), any election under this subsection shall— (i) apply separately with respect to each qualified clean hydrogen production facility, (ii) be made for the taxable year in which the facility is placed in service (or within 90 days of date of enactment in the case of facilities placed in service before December 31, 2021), (iii) shall apply to such taxable year and all subsequent taxable years with respect to such facility. . (3) Credit reduced for tax-exempt bonds Section 45X(d), as added by this section, is amended by adding at the end the following new paragraph: (3) Credit reduced for tax-exempt bonds Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section. . (4) Conforming amendments (A) Section 38(b) is amended— (i) in paragraph (34), by striking plus at the end, (ii) in paragraph (35), by striking the period at the end and inserting , plus , and (iii) by adding at the end the following new paragraph: (36) the clean hydrogen production credit determined under section 45X(a). . (B) The table of sections for subpart D of part IV of subchapter A of chapter 1 amended by adding at the end the following new item: Sec. 45X. Credit for production of clean hydrogen. . (5) Effective dates (A) The amendments made by paragraphs (1), (2), and (4) of this subsection shall apply to hydrogen produced after December 31, 2021. (B) The amendment made by paragraph (3) shall apply to facilities the construction of which begins after December 31, 2021. (b) Credit for electricity produced from renewable resources allowed if electricity is used to produce clean hydrogen (1) In general Section 45(e) is amended by adding at the end the following new paragraph: (13) Special rule for electricity used at a qualified clean hydrogen production facility Electricity produced by the taxpayer shall be treated as sold by such taxpayer to an unrelated person during the taxable year if such electricity is used during such taxable year by the taxpayer or a person related to the taxpayer at a qualified clean hydrogen production facility (as defined in section 45X(c)(3)) to produce qualified clean hydrogen (as defined in section 45X(c)(2)) during the 10 year period after such facility is placed in service. The Secretary shall issue such regulations or other guidance as the Secretary determines appropriate to carry out the purposes of this paragraph, including regulations or other guidance to require verification by unrelated third parties of the production and use of electricity to which this paragraph applies. . (2) Effective date The amendment made by this subsection shall apply to electricity produced after December 31, 2021. (c) Election to treat clean hydrogen production facilities as energy property (1) In general Section 48(a) is amended by adding at the end the following new paragraph: (16) Election to treat clean hydrogen production facilities as energy property (A) In general In the case of any qualified property (as defined in paragraph (5)(D)) which is part of a specified clean hydrogen production facility— (i) such property shall be treated as energy property for purposes of this section, and (ii) the energy percentage with respect to such property is— (I) in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (A) of section 45X(b)(2), 0.9 percent, (II) in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (B) of such section, 1.2 percent, (III) in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (C) of such section, 1.5 percent, (IV) in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (D) of such section, 2 percent, and (V) in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in subparagraph (E) of such section, 6 percent. (B) Denial of production credit No credit shall be allowed under section 45X or section 45Q for any taxable year with respect to any specified clean hydrogen production facility or any carbon capture equipment included at such facility. (C) Specified clean hydrogen production facility For purposes of this paragraph, the term specified clean hydrogen production facility means any qualified clean hydrogen production facility (as defined in section 45X(c)(3)) or any portion of such facility— (i) which is placed in service after December 31, 2021, and (ii) with respect to which— (I) no credit has been allowed under section 45X or 45Q, and (II) the taxpayer makes an irrevocable election to have this paragraph apply. (D) Qualified clean hydrogen For purposes of this paragraph, the term qualified clean hydrogen has the meaning given such term by section 45X(c)(2). (E) Regulations The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which— (i) requires verification by one or more unrelated third parties that the facility produces hydrogen which is consistent with the hydrogen that such facility was designed and expected to produce under subparagraph (A)(ii), and (ii) recaptures so much of any credit allowed under this section as exceeds the amount of the credit which would have been allowed if the expected production were consistent with the actual verified production (or all of the credit so allowed in the absence of such verification). . (2) Effective date The amendments made by this subsection shall apply to property placed in service after December 31, 2021 and, for any property the construction of which begins prior to January 1, 2022, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2021. (d) Termination of excise tax credit for hydrogen (1) In general Section 6426(d)(2) is amended by striking subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively. (2) Conforming amendment Section 6426(e)(2) is amended by striking (F) and inserting (E) . (3) Effective date The amendments made by this subsection shall apply to fuel sold or used after December 31, 2021. 3 Green energy and efficiency incentives for individuals 136301. Extension, increase, and modifications of nonbusiness energy property credit (a) Extension of credit Section 25C(g)(2) is amended by striking December 31, 2021 and inserting December 31, 2031 . (b) Allowance of credit Section 25C(a) is amended to read as follows: (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— (1) the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. . (c) Application of annual limitation in lieu of lifetime limitation Section 25C(b) is amended to read as follows: (b) Limitations (1) In general The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200. (2) Energy property The credit allowed under this subsection by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600. (3) Windows The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600. (4) Doors The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed— (A) $250 in the case of any exterior door, and (B) $500 in the aggregate with respect to all exterior doors. (5) Certain property excluded from limitation Amounts paid or incurred for property described in clause (i) or (ii) of subsection (d)(2)(A) or subsection (d)(2)(B) shall not be subject to the limitations in paragraphs (1) and (2) or factored in for purposes of calculating the limitation under such paragraph. . (d) Modifications related to qualified energy efficiency improvements (1) Standards for energy efficient building envelope components Section 25C(c)(2) is amended by striking meets— and all that follows through the period at the end and inserting the following: meets— (A) in the case of an exterior window or skylight, Energy Star most efficient certification requirements (B) in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such component is placed in service. . (2) Roofs not treated as building envelope components Section 25C(c)(3) is amended by adding and at the end of subparagraph (B), by striking , and at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D). (3) Air sealing insulation added to definition of building envelope component Section 25C(c)(3)(A) is amended by striking material or system and inserting material or system, including air sealing material or system, . (e) Modification of residential energy property expenditures Section 25C(d) is amended to read as follows: (d) Residential energy property expenditures For purposes of this section— (1) In general The term residential energy property expenditures means expenditures made by the taxpayer for qualified energy property which is— (A) installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and (B) originally placed in service by the taxpayer. Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. (2) Qualified energy property The term qualified energy property means: (A) Any of the following which meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service: (i) An electric heat pump water heater. (ii) An electric heat pump. (iii) A central air conditioner. (iv) A natural gas, propane, or oil water heater. (v) A natural gas, propane, or oil furnace or hot water boiler. (B) A biomass stove— (i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and (ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). (C) Any oil furnace or hot water boiler which— (i) is placed in service after December 31, 2021 and before January 1, 2027 and meets or exceeds 2021 Energy Star efficiency criteria and is rated by the manufacturer for use with eligible fuel blends of 20 percent or more, or (ii) is placed in service after December 31, 2026 and achieves an annual fuel utilization efficiency rate of not less than 90 and is rated by the manufacturer for use with eligible fuel blends of 50 percent or more. (3) Eligible fuel For purposes of paragraph (2), the term eligible fuel means biodiesel and renewable diesel (within the meaning of section 40A) and second generation biofuel (within the meaning of section 40). . (f) Home energy audits (1) In general Section 25C(a) is amended by striking and at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , and , and by adding at the end the following new paragraph: (3) 30 percent of the amount paid or incurred by the taxpayer during the taxable year for home energy audits. . (2) Limitation Section 25C(b), as amended by subsection (c), is amended adding at the end the following new paragraph: (5) Home energy audits (A) Dollar limitation The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150. (B) Substantiation requirement No credit shall be allowed under this section by reason of subsection (a)(3) unless the taxpayer includes with the taxpayer’s return of tax such information or documentation as the Secretary may require. . (3) Home energy audits (A) In general Section 25C , as amended by subsection (a), is amended by redesignating subsections (e), (f), and (g), as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection: (e) Home energy audits For purposes of this section, the term home energy audit means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121) which— (1) identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and (2) is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary (not later than 365 days after the date of the enactment of this subsection) in regulations or other guidance. . (B) Conforming amendment Section 1016(a)(33) is amended by striking section 25C(f) and inserting section 25C(g) . (4) Lack of substantiation treated as mathematical or clerical error Section 6213(g)(2) is amended— (A) in subparagraph (P), by striking and at the end, (B) in subparagraph (Q), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (R) an omission of correct information or documentation required under section 25C(b)(5)(B) (relating to home energy audits) to be included on a return. . (g) Identification number requirement (1) In general Section 25C , as amended by subsections (a) and (f), is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Product identification number requirement (1) In general No credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2023, unless— (A) such item is produced by a qualified manufacturer, and (B) the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year. (2) Qualified product identification number For purposes of this section, the term qualified product identification number means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3). (3) Qualified manufacturer For purposes of this section, the term qualified manufacturer means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will— (A) assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), (B) label such item with such number in such manner as the Secretary may provide, and (C) make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned. (4) Specified property For purposes of this subsection, the term specified property means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). . (2) Omission of correct product identification number treated as mathematical or clerical error Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (A) in subparagraph (Q), by striking and at the end, (B) in subparagraph (R), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (S) an omission of a correct product identification number required under section 25C(h) (relating to credit for nonbusiness energy property) to be included on a return. . (h) Effective dates (1) In general Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2021. (2) Home energy audits The amendments made by subsection (f) shall apply to amounts paid or incurred after December 31, 2021. (3) Identification number requirement The amendments made subsection (g) shall apply to property placed in service after December 31, 2023. 136302. Residential energy efficient property (a) Extension of credit (1) In general Section 25D(h) is amended by striking December 31, 2023 and inserting December 31, 2033 . (2) Application of phaseout Section 25D(g) is amended— (A) by striking before January 1, 2023 in paragraph (2) and inserting before January 1, 2022 , (B) by striking and at the end of paragraph (2), (C) by redesignating paragraph (3) as paragraph (5) and by inserting after paragraph (2) the following new paragraphs: (3) in the case of property placed in service after December 31, 2021, and before January 1, 2032, 30 percent, (4) in the case of property placed in service after December 31, 2031, and before January 1, 2033, 26 percent, and , and (D) by striking December 31, 2022, and before January 1, 2024 in paragraph (5) (as so redesignated) and inserting December 31, 2032, and before January 1, 2034 . (b) Residential energy efficient property credit for battery storage technology (1) In general Section 25D(a) is amended by striking and at the end of paragraph (5) and by inserting after paragraph (6) the following new paragraph: (7) the qualified battery storage technology expenditures, . (2) Qualified battery storage technology expenditure Section 25D(d) is amended by adding at the end the following new paragraph: (7) Qualified battery storage technology expenditure The term qualified battery storage technology expenditure means an expenditure for battery storage technology which— (A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and (B) has a capacity of not less than 3 kilowatt hours. . (c) Credit made refundable; installer requirements; treatment of certain possessions Section 25D is amended by redesignating subsection (h) as subsection (k) and by inserting after subsection (g) the following new subsections: (h) Credit made refundable for taxable years after 2023 In the case of any taxable year beginning after December 31, 2023, the credit allowed under subsection (a) (excluding any credit carried forward from a previous taxable year) shall be treated as a credit allowed under subpart C (and not allowed under this subpart). (i) Requirement for qualified installer (1) In general No credit shall be allowed under this section with respect to any property described in subsection (a) placed in service after December 31, 2023 unless— (A) such property is installed by a qualified installer, and (B) the taxpayer includes the qualified installation identification number described in paragraph (3) on the return of tax for the taxable year. (2) Qualified installer (A) In general For purposes of this section, the term qualified installer means an installer who enters into an agreement with the Secretary which provides that such installer will, with respect to expenditures described in subsection (a) in connection with the residence of a taxpayer— (i) provide the taxpayer with a qualified installation identification number and a written receipt of the purchase and installation of such property in a manner prescribed by the Secretary, and (ii) make periodic written reports to the Secretary (in such manner as the Secretary may provide) of installation identification numbers assigned by the installer corresponding to such expenditures, including such information as the Secretary may require with respect to such expenditures. (B) Installer deemed to meet requirement For purposes of subparagraph (A), to the extent provided by the Secretary, an installer may be deemed to meet the requirement under clause (ii) of such subparagraph on the basis of information available to the Secretary which the Secretary determines is reasonably reliable for purposes of determining the amount of qualified expenditures under subsection (a) made by a taxpayer in connection with a residence of such taxpayer. (3) Qualified installation identification number For purposes of this section, the term qualified installation identification number means a unique identification number with respect to expenditures described in subsection (a) in connection with a residence of a taxpayer that is installed by a qualified installer. (4) Registration The Secretary may require such information or registration of a qualified installer as the Secretary deems necessary or appropriate for purposes of preventing duplication, fraud, or improper claims with respect to property described in subsection (a). Under regulations or other guidance prescribed by the Secretary, the registration of any person under this section may be denied, revoked, or suspended if the Secretary determines that such denial, revocation, or suspension is necessary to prevent duplication, fraud, or improper claims with respect to property described in subsection (a). (j) Treatment of certain possessions (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 determined by the Secretary based on information provided 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 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 system had been in effect in such possession. The preceding 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; treatment of payments Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section. . (d) Certain expenditures disallowed Section 25D is amended— (1) in subsection (a), by adding and at the end of paragraph (4), by striking the comma at the end of paragraph (5) and inserting a period, and by striking paragraph (6), and (2) in subsection (d), by striking paragraph (6). (e) Carryforward of unused credit disallowed Section 25D is amended by striking subsection (c). (f) Conforming amendment Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (1) in subparagraph (T), by striking and at the end, (2) in subparagraph (U), by striking the period at the end and inserting , and , and (3) by adding at the end the following: (V) an omission of a correct qualified installation identification number required under section 25D (relating to credit for residential energy efficient property) to be included on a return. . (g) Effective dates (1) The amendments made by subsections (a), (b), (d), and (f) shall apply to expenditures made after December 31, 2021. (2) The amendments made by subsections (c) and (e) shall apply to expenditures made after December 31, 2022. 136303. Energy efficient commercial buildings deduction (a) Placed in service requirement Section 179D(c)(2) is amended to read as follows: (2) Reference Standard 90.1 The term Reference Standard 90.1 means, with respect to any property, the more recent of— (A) Standard 90.1-2007 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or (B) the most recent Standard 90.1 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America for which the Department of Energy has issued a final determination and which has been affirmed by the Secretary for purposes of this section not later than the date that is 4 years before the date such property is placed in service. . (b) Temporary increase in deduction, etc. Section 179D is amended by adding at the end the following: (i) Temporary rules (1) Period of application The provisions of this subsection shall apply only to taxable years beginning after December 31, 2021, and before January 1, 2032. (2) Modification of efficiency standard Subsection (c)(1)(D) shall be applied by substituting 25 for 50 . (3) Maximum amount of deduction (A) In general The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of— (i) the product of— (I) the applicable dollar value, and (II) the square footage of the building, over (ii) the aggregate amount of the deductions under subsection (a) and paragraph (6) with respect to the building for the 3 taxable years immediately preceding such taxable year (or, in the case of any such deduction allowable to a person other than the taxpayer, for any taxable year ending during the 4-taxable-year period ending with such taxable year). (B) Applicable dollar value For purposes of paragraph (3)(A)(i), the applicable dollar value shall be an amount equal to $0.50 increased (but not above $1.00) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. (C) Application of inflation adjustment Subsection (g) shall be applied— (i) by substituting 2022 for 2020 , (ii) by substituting subsection (i)(3)(B) for subsection (b) or subsection (d)(1)(A) , and (iii) by substituting 2021 for 2019 . (D) Limitation to apply in lieu of current limitation and partial allowance Subsections (b) and (d)(1) shall not apply. (4) Increased credit amount for certain property (A) In general In the case of any property which satisfies the requirements of subparagraph (B), paragraph (3)(B) shall be applied by substituting $2.50 for $0.50 , $.10 for $.02 , and $5.00 for $1.00 . (B) Project requirements A project meets the requirements of this subparagraph if it is one of the following: (i) A building or qualified retrofit plan the construction of which begins prior to 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (5) and (6). (ii) A building or qualified retrofit plan the construction of which satisfies the requirements of paragraphs (5) and (6). (5) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any project are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the construction of any property or with respect to building modifications made as part of a qualified retrofit plan shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (6) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (7) Allocation of deduction by certain tax-exempt entities (A) In general A specified tax-exempt entity shall be treated in the same manner as a Federal, State, or local government for purposes of applying subsection (d)(4). (B) Specified tax-exempt entity For purposes of this paragraph, the term specified tax-exempt entity means— (i) the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, (ii) an Indian tribal government (as defined in section 48(e)(4)(F)(ii)) or Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ), and (iii) any organization exempt from tax imposed by this chapter. (8) Alternative deduction for energy efficient retrofit building property (A) In general In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this paragraph with respect to any qualified building, there shall be allowed as a deduction for the taxable year which includes the date of the qualifying final certification with respect to the qualified retrofit plan of such building, an amount equal to the lesser of— (i) the excess described in paragraph (3) (determined by substituting energy usage intensity for total annual energy and power costs in subparagraph (B) thereof), or (ii) the aggregate adjusted basis (determined after taking into account all adjustments with respect to such taxable year other than the reduction under subsection (e)) of energy efficient retrofit building property placed in service by the taxpayer pursuant to such qualified retrofit plan. (B) Qualified retrofit plan For purposes of this paragraph, the term qualified retrofit plan means a written plan prepared by a qualified professional which specifies modifications to a building which, in the aggregate, are expected to reduce such building’s energy usage intensity by 25 percent or more in comparison to the baseline energy usage intensity of such building. Such plan shall provide for a qualified professional to— (i) as of any date during the 1-year period ending on the date of the first certification described in clause (ii), certify the energy usage intensity of such building as of such date, (ii) certify the status of property installed pursuant to such plan as meeting the requirements of clauses (ii) and (iii) subparagraph (C), and (iii) as of any date that is more than 1 year after completion of the plan, certify the energy usage intensity of such building as of such date. (C) Energy efficient retrofit building property For purposes of this paragraph, the term energy efficient retrofit building property means property— (i) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (ii) which is installed on or in any qualified building, (iii) which is installed as part of— (I) the interior lighting systems, (II) the heating, cooling, ventilation, and hot water systems, or (III) the building envelope, and (iv) which is certified in accordance with subparagraph (B)(ii) as meeting the requirements of clauses (ii) and (iii). (D) Qualified building For purposes of this paragraph, the term qualified building means any building which— (i) is located in the United States, and (ii) was originally placed in service not less than 5 years before the establishment of the qualified retrofit plan with respect to such building. (E) Qualifying final certification For purposes of this paragraph, the term qualifying final certification means, with respect to any qualified retrofit plan, the certification described in subparagraph (B)(iii) if the energy usage intensity certified in such certification is not more than 75 percent of the baseline energy usage intensity of the building. (F) Baseline energy usage intensity (i) In general The term baseline energy usage intensity means the energy usage intensity certified under subparagraph (B)(i), as adjusted to take into account weather as compared to the energy usage intensity determined under subparagraph (B)(iii). (ii) Determination of adjustment For purposes of clause (i), the adjustments described in such clause shall be determined in such manner as the Secretary may provide. (G) Other definitions For purposes of this paragraph— (i) Energy usage intensity The term energy usage intensity means the annualized, measured site energy usage intensity determined in accordance with such regulations or other guidance as the Secretary may provide and measured in British thermal units. (ii) Qualified professional The term qualified professional means an individual who is a licensed architect or a licenced engineer and meets such other requirements as the Secretary may provide. (H) Coordination with deduction otherwise allowed under subsection (a) (i) In general In the case of any building with respect to which an election is made under subparagraph (A), the term energy efficient commercial building property shall not include any energy efficient retrofit building property with respect to which a deduction is allowable under this paragraph. (ii) Certain rules not applicable (I) In general Except as provided in subclause (II), subsection (d) shall not apply for purposes of this paragraph. (II) Allocation of deduction by certain tax-exempt entities Rules similar to subsection (d)(4) (determined after application of paragraph (5)) shall apply for purposes of this paragraph. . (c) Application to real estate investment trust earnings and profits Section 312(k)(3)(B) is amended— (1) by striking for purposes of computing the earnings and profits of a corporation and inserting the following: (i) In general For purposes of computing the earnings and profits of a corporation, except as provided in clause (ii) , and (2) by adding at the end the following new clause: (ii) Special rule In the case of a corporation that is a real estate investment trust, any amount deductible under section 179D shall be allowed in the year in which the property giving rise to such deduction is placed in service. . (d) Conforming amendment Section 179D(d)(2) is amended by striking not later than the date that is 2 years before the date that construction of such property begins and inserting not later than the date that is 4 years before the date such property is placed in service . (e) Effective date (1) In general Except as otherwise provided in this subsection, the amendment made by this section shall apply to taxable years beginning after December 31, 2021. (2) Alternative deduction for energy efficient retrofit building property Paragraph (8) of section 179D(i) of the Internal Revenue Code of 1986 (as added by this section), and any other provision of such section solely for purposes of applying such paragraph, shall apply to property placed in service after December 31, 2021 (in taxable years ending after such date) if such property is placed in service pursuant to qualified retrofit plan (within the meaning of such section) established after such date. 136304. Extension, increase, and modifications of new energy efficient home credit (a) Extension of credit Section 45L(g) is amended by striking December 31, 2021 and inserting December 31, 2031 . (b) Increase in credit amounts Section 45L(a)(2) is amended to read as follows: (2) Applicable amount For purposes of paragraph (1), the applicable amount is an amount equal to— (A) in the case of a dwelling unit which is eligible to participate in the Energy Star Residential New Construction Program or the Energy Star Manufactured New Homes program— (i) that is described in subsection (c)(1)(A) (and not described in subsection (c)(1)(B)), $2,500, and (ii) that is described in subsection (c)(1)(B), $5000, and (B) in the case of a dwelling unit which is part of a building eligible to participate in the Energy Star Multifamily New Construction Program— (i) that is described in subsection (c)(1)(A) (and not described in subsection (c)(1)(B)), $500, and (ii) that is described in subsection (c)(1)(B), $1000. . (c) Modification of energy saving requirements Section 45L(c) is amended to read as follows: (c) Energy saving requirements (1) In general A dwelling unit meets the energy saving requirements of this subsection if— (A) such dwelling unit meets the requirements of paragraph (2) or (3) (whichever is applicable), or (B) such dwelling unit is certified as a zero energy ready home under the zero energy ready home program of the Department of Energy (or any successor program determined by the Secretary) as in effect on January 1, 2022. (2) Single-family home requirements A dwelling unit meets the requirements of this paragraph if— (A) such dwelling unit meets— (i) in the case of a dwelling unit acquired before January 1, 2025, the Energy Star Single-Family New Homes National Program Requirements 3.1, and (ii) in the case of a dwelling unit acquired after December 31, 2024, the Energy Star Single-Family New Homes National Program Requirements 3.2, (B) such dwelling unit meets the most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2022 or January 1 of two calendar years prior to the date the dwelling unit was acquired), or (C) such dwelling unit meets the most recent Energy Star Manufactured Home National program requirements as in effect on the latter of January 1, 2022 or January 1 of two calendar years prior to the date such dwelling unit is acquired. (3) Multi-family home requirements A dwelling unit meets the requirements of this paragraph if— (A) such dwelling unit meets the most recent Energy Star Multifamily New Construction National Program Requirements (as in effect on either January 1, 2022 or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and (B) such dwelling unit meets the most recent Energy Star Multifamily New Construction Regional Program Requirements applicable to the location of such dwelling unit (as in effect on either January 1, 2022 or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later). . (d) Prevailing wage requirement Section 45L is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Prevailing wage requirement (1) In general In the case of a qualifying residence described in subsection (b)(2)(B) meeting the prevailing wage requirements of paragraph (2), the credit amount allowed with respect to such residence shall be— (A) $2,500 in the case of a residence described in subparagraph (A) of subsection (c)(1) (and not described in subparagraph (B) of such subsection), and (B) $5,000 in the case of a residence described in (c)(1)(B). (2) Prevailing wage requirements (A) In general The requirements described in this paragraph with respect to any qualified residence are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the construction of such residence shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (3) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (e) Effective dates The amendments made by this section shall apply to dwelling units acquired after December 31, 2021. 136305. Modifications to income exclusion for conservation subsidies (a) In general Section 136(a) is amended— (1) by striking any subsidy provided and inserting any subsidy— (1) provided , (2) by striking the period at the end and inserting a comma, and (3) by adding at the end the following new paragraphs: (2) provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation or efficiency measure, (3) provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure, or (4) provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer’s principal residence. . (b) Conforming amendments (1) Definition of water conservation or efficiency measure and storm water management measure Section 136(c) is amended— (A) by striking Energy conservation measure in the heading thereof and inserting Definitions , (B) by striking In general in the heading of paragraph (1) and inserting Energy conservation measure , and (C) by redesignating paragraph (2) as paragraph (5) and by inserting after paragraph (1) the following: (2) Water conservation or efficiency measure For purposes of this section, the term water conservation or efficiency measure means any evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units. (3) Storm water management measure For purposes of this section, the term storm water management measure means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units. (4) Wastewater management measure For purposes of this section, the term wastewater management measure means any installation or modification of property primarily designed to manage wastewater (including septic tanks and cesspools) with respect to one or more dwelling units. . (2) Definition of public utility Section 136(c)(5) (as redesignated by paragraph (1)(C)) is amended by striking subparagraph (B) and inserting the following: (B) Public utility The term public utility means a person engaged in the sale of electricity, natural gas, or water to residential, commercial, or industrial customers for use by such customers. (C) Storm water management provider The term storm water management provider means a person engaged in the provision of storm water management measures to the public. (D) Person For purposes of subparagraphs (B) and (C), the term person includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing. . (3) Clerical amendments (A) The heading for section 136 is amended— (i) by inserting and water after energy , and (ii) by striking provided by public utilities . (B) The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 is amended— (i) by inserting and water after energy , and (ii) by striking provided by public utilities . (c) Effective date The amendments made by this section shall apply to amounts received after December 31, 2018. (d) No inference Nothing in this Act or the amendments made by this Act shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility, a storm water management provider, or a State or local government for any water conservation measure or storm water management measure before January 1, 2019. 136306. Credit for qualified wildfire mitigation expenditures (a) In general Subpart B of part IV of subchapter A of chapter 1 is amended by inserting after section 27 the following new section: 28. Qualified wildfire mitigation expenditures (a) In general There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the qualified wildfire mitigation expenditures paid or incurred by the taxpayer during such taxable year with respect to real property owned or leased by the taxpayer. (b) Qualified wildfire mitigation expenditures For purposes of this section— (1) In general The term qualified wildfire mitigation expenditures means any specified wildfire mitigation expenditure made pursuant to a qualified State wildfire mitigation program of a State which requires expenditures for wildfire mitigation to be paid both by the taxpayer and such State. Such term shall not include any item of expenditure unless the ratio of the State’s expenditure for such item to the sum of the State’s and taxpayer’s expenditures for such item is not less than 25 percent. (2) Specified wildfire mitigation expenditure The term specified wildfire mitigation expenditure means, with respect to any real property owned or leased by the taxpayer, any amount paid or incurred to reduce the risk of wildfire by removing accumulations of vegetation (including establishing, expanding, or maintaining fuel breaks to serve as fire breaks) on such real property. (3) Qualified State wildfire mitigation program The term qualified State wildfire mitigation program means any program of a State the primary purpose of which is to mitigate the risk of wildfires in such State. (4) Treatment of reimbursements Any amount originally paid or incurred by the taxpayer which is reimbursed by a State under a qualified wildfire mitigation program of such State shall be treated as paid by such State (and not by such taxpayer). (c) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to expenditures made in the ordinary course of the taxpayer’s trade or business (or, in the case of expenditures made by a State, would have been expenditures made in the ordinary course of the taxpayer’s trade or business if made by the taxpayer) shall be treated as a credit listed in section 38(b) for taxable year (and not allowed under subsection (a)). (2) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. (d) Reduction of credit percentage where taxpayer expenditures less than 30 percent (1) In general If the expenditure percentage with respect to any item of qualified wildfire mitigation expenditure is less than 30 percent, subsection (a) shall be applied by substituting the expenditure percentage for 30 percent with respect to such item of expenditure. (2) Expenditure percentage For purposes of this section, the term expenditure percentage means, with respect to any item of qualified wildfire mitigation expenditure any portion of which is paid or incurred by a State, the ratio (expressed as a percentage) of— (A) the taxpayer’s expenditure for such item, divided by (B) the sum of the taxpayer’s and such State’s expenditures for such item. (e) Special rules (1) Treatment of expenditures related to marketable timber An expenditure shall not be taken into account for purposes of this section (whether made by the taxpayer or a State pursuant to a qualified State wildfire mitigation program of such State) if such expenditure is properly allocable to timber which is sold or exchanged by the taxpayer. The preceding sentence shall not apply to the extent that such amount exceeds the gain on such sale or exchange. (2) Basis reduction For purposes of this subtitle, if the basis of any property would (but for this paragraph) be determined by taking into account any qualified wildfire mitigation expenditure, the basis of such property shall be reduced by the amount of the credit allowed under subsection (a) with respect to such expenditure (determined without regard to subsection (c)). (3) Denial of double benefit The amount of any deduction or other credit allowable under this chapter for any expenditure for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such expenditure (determined without regard to subsection (c)). . (b) Conforming amendments (1) Section 38(b), as amended by the preceding provisions of this Act, is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , plus , and by adding at the end the following new paragraph: (37) the portion of the qualified wildfire mitigation expenditures credit to which section 28(c)(1) applies. . (2) Section 1016(a) is amended by redesignating paragraphs (35) through (38) as paragraphs (36) through (39), respectively, and by inserting after paragraph (34) the following new paragraph: (35) to the extent provided in section 28(e)(2), . (3) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 27 the following new item: Sec. 28. Qualified wildfire mitigation expenditures. . (c) Effective date The amendments made by this section shall apply to expenditures paid or incurred after the date of the enactment of this Act, in taxable years ending after such date. 4 Greening the fleet and alternative vehicles 136401. Refundable new qualified plug-in electric drive motor vehicle credit for individuals (a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36B the following new section: 36C. New qualified plug-in electric drive motor vehicles (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit amount determined under subsection (b) with respect to a new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year. (b) Credit amount (1) In general The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) through (5) with respect to such vehicle (not to exceed 50 percent of the purchase price of such vehicle). (2) Base amount The amount determined under this paragraph is $4,000. (3) Battery capacity In the case of a new qualified plug-in electric drive motor vehicle, the amount determined under this paragraph is $3,500 if— (A) in the case of a vehicle placed in service before January 1, 2027, such vehicle draws propulsion energy from a battery with not less than 40 kilowatt hours of capacity and has a gasoline tank capacity not greater than 2.5 gallons, and (B) in the case of a vehicle placed in service after December 31, 2026, such vehicle draws propulsion energy from a battery with not less than 50 kilowatt hours of capacity and has a gasoline tank capacity not greater than 2.5 gallons. (4) Domestic assembly In the case of a new qualified plug-in electric drive motor vehicle which satisfies the domestic assembly qualifications, the amount determined under this paragraph is $4,500. (5) Domestic content In the case of a new qualified plug-in electric drive motor vehicle which satisfies domestic content qualifications, the amount determined under this paragraph is $500. (c) Vehicle limitation The number of new qualified plug-in electric drive motor vehicles taken in account under subsection (a) shall not exceed 1 per taxpayer per taxable year. (d) Limitation based on modified adjusted gross income (1) In general The amount of the credit allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which— (A) the lesser of— (i) the taxpayer’s modified adjusted gross income for such taxable year, or (ii) the taxpayer’s modified adjusted gross income for the preceding taxable year, exceeds (B) the threshold amount. For purposes of the preceding sentence, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (2) Threshold amount For purposes of paragraph (1), the term threshold amount means— (A) $500,000 in the case of a joint return or surviving spouse (half such amount in the case of a married individual filing a separate return), (B) $375,000 in the case of a head of household, and (C) $250,000 in any other case. (e) Manufacturer’s suggested retail price limitation (1) In general No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation. (2) Applicable limitation For purposes of paragraph (1), the applicable limitation for each vehicle classification is as follows: (A) Vans In the case of a van, $80,000. (B) Sport Utility Vehicles In the case of a sport utility vehicle, $80,000. (C) Pickup Trucks In the case of a pickup truck, $80,000. (D) Other In the case of any other vehicle, $55,000. (3) Regulations and guidance For purposes of this subsection, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary or appropriate for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.” (f) New qualified plug-in electric drive motor vehicle For purposes of this section— (1) In general The term new qualified plug-in electric drive motor vehicle means a motor vehicle— (A) the original use of which commences with the taxpayer, (B) which is acquired for use by the taxpayer and not for resale, (C) which is made by a qualified manufacturer, (D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, (E) which has a gross vehicle weight rating of less than 14,000 pounds, (F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— (i) has a capacity of not less than 10 kilowatt hours, and (ii) is capable of being recharged from an external source of electricity, (G) with respect to which, in the case of a vehicle placed in service after December 31, 2026, final assembly is within the United States, (H) is not of a character subject to an allowance for depreciation, and (I) for which the person who sells or leases any new qualified plug-in electric drive motor vehicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing— (i) the name and taxpayer identification number of the taxpayer, (ii) the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number, (iii) the battery capacity of the vehicle, (iv) in the case of any new qualified plug-in electric drive motor vehicle, verification that original use of the vehicle commences with the taxpayer, (v) the maximum credit under this section allowable to the taxpayer with respect to the vehicle, and (vi) in the case of a taxpayer who makes an election under subsection (k)(1)— (I) the modified adjusted gross income of such taxpayer in the previous taxable year, as described in subsection (k)(6)(A), and (II) any amount described in subsection (k)(2)(C) which has been provided to such taxpayer. (2) Motor vehicle The term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (3) Qualified manufacturer The term qualified manufacturer means any manufacturer (within the meaning of the regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq. )) which enters into a written agreement with the Secretary under which such manufacturer agrees— (A) to ensure that each vehicle manufactured by such manufacturer after the later of the date on which such agreement takes effect or December 31, 2021, and that meets the requirements of subsection (d), subparagraphs (D), (E), and (F) of paragraph (1), and paragraph (6) of subsection (f) is labeled with a unique vehicle identification number, and (B) to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing such vehicle identification numbers and such other information related to such vehicle as the Secretary may require. (4) Battery capacity The term capacity means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. (g) Special rules (1) Basis reduction For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. (2) No double benefit The amount of any deduction or other credit allowable under this chapter for a vehicle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such vehicle. (3) Property used outside united states not qualified No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). (4) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. (5) Election not to take credit No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle. (6) Interaction with air quality and motor vehicle safety standards A vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with— (A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), and (B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code. (h) Credit allowed for 2 and 3-wheeled plug-in electric vehicles (1) In general In the case of a qualified 2- or 3-wheeled plug-in electric vehicle— (A) there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and (B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). (2) Applicable amount For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of— (A) 30 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or (B) $7,500. (3) Qualified 2- or 3-wheeled plug-in electric vehicle The term qualified 2- or 3-wheeled plug-in electric vehicle means any vehicle which— (A) has 2 or 3 wheels, (B) meets the requirements of— (i) subparagraphs (A), (B), (C), (E), (F), (G), and (I) of subsection (e)(1) (determined by substituting 2.5 kilowatt hours for 10 kilowatt hours in subparagraph (F)(i)), (ii) paragraphs (3) and (4) of subsection (e), and (iii) subsections (f), (h), (i), and (k), (C) is manufactured primarily for use on public streets, roads, and highways, and (D) is capable of achieving a speed of 45 miles per hour or greater. (i) VIN number requirement No credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (j) Treatment of certain possessions (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 (determined without regard to this subsection). Such amounts shall be determined by the Secretary based on information provided 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 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 system had been in effect in such possession. The preceding 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; treatment of payments Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section. (k) Assembly and content qualifications For purposes of this section— (1) Domestic assembly qualifications The term domestic assembly qualifications means, with respect to any new qualified plug-in electric vehicle, that the final assembly of such vehicle occurs at a plant, factory, or other place which is located in the United States and operating under a collective bargaining agreement negotiated by an employee organization (as defined in section 412(c)(4)), determined in a manner consistent with section 7701(a)(46). (2) Domestic content qualifications The term domestic content qualifications means, with respect to any model of a new qualified plug-in electric vehicle, that vehicles of that model are powered by battery cells which are manufactured in the United States as certified by the manufacturer at such time and in such form and manner as the Secretary may prescribe. (3) Final assembly The term final assembly means the process by which a manufacturer produces a new qualified plug-in electric drive motor vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. (l) Termination No credit shall be allowed under this section with respect to any vehicle acquired after December 31, 2031. . (b) Transfer of credit (1) In general Section 36C , as added by subsection (a), is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) following new subsection: (k) Transfer of credit (1) In general Subject to such regulations or other guidance as the Secretary determines necessary or appropriate, if the taxpayer who acquires a new plug-in electric drive motor vehicle elects the application of this subsection with respect to such vehicle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such vehicle shall be allowed to the eligible entity specified in such election (and not to such taxpayer). (2) Eligible entity For purposes of this paragraph, the term eligible entity means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such vehicle to the taxpayer and has— (A) subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe, (B) prior to the election described in paragraph (1) and not later than at the time of such sale, disclosed to the taxpayer purchasing such vehicle— (i) the manufacturer’s suggested retail price, (ii) the value of the credit allowed or other incentive available for the purchase of such vehicle, (iii) all fees associated with the purchase of such vehicle, and (iv) the amount provided by the dealer to such taxpayer as a condition of the election described in paragraph (1), (C) made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) in an amount equal to the credit otherwise allowable to such taxpayer, and (D) with respect to any incentive otherwise available for the purchase of a vehicle for which a credit is allowed under this section, including any incentive in the form of a rebate or discount provided by the dealer or manufacturer, ensured that— (i) the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and (ii) such election shall not limit the value or use of such incentive. (3) Timing An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the vehicle for which the credit is allowed under subsection (a) is purchased. (4) Revocation of registration Upon determination by the Secretary that a dealer has failed to comply with the requirements described in paragraph (2), the Secretary may revoke the registration (as described in subparagraph (A) of such paragraph) of such dealer. (5) Tax treatment of payments With respect to any payment described in paragraph (2)(C), such payment— (A) shall not be includible in the gross income of the taxpayer, and (B) with respect to the dealer, shall not be deductible under this title. (6) Application of certain other requirements In the case of any election under paragraph (1) with respect to any vehicle— (A) the amount of the reduction under subsection (c) shall be determined with respect to the modified adjusted gross income of the taxpayer for the taxable year preceding the taxable year in which such vehicle was acquired (and not with respect to such income for the taxable year in which such vehicle was acquired), (B) the requirements of paragraphs (1) and (2) of subsection (f) shall apply to the taxpayer who acquired the vehicle in the same manner as if the credit determined under this section with respect to such vehicle were allowed to such taxpayer, (C) subsection (f)(5) shall not apply, and (D) the requirement of subsection (h) shall be treated as satisfied if the eligible entity provides the vehicle identification number of such vehicle to the Secretary in such manner as the Secretary may provide. (7) Advance payment to registered dealers (A) In general The Secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection (a) with respect to any vehicles sold by such entity for which an election described in paragraph (1) has been made. (B) Excessive payments Rules similar to the rules of section 6417(c)(7) shall apply for purposes of this paragraph. (8) Dealer For purposes of this subsection, the term dealer means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government (as defined in section 48(e)(4)(F)(ii)), or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ) to engage in the sale of vehicles. . (2) Conforming amendment Section 36C(g)(3)(iii), as added by subsection (a), is amended by striking , and (k) and inserting (k), and (l) . (c) Repeal of nonrefundable new qualified plug-in electric drive motor vehicle credit Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30D (and by striking the item relating to such section in the table of sections of such subpart). (d) Conforming amendments (1) Section 1016(a)(37) is amended by striking section 30D(f)(1) and inserting section 36C(f)(1) . (2) Section 6211(b)(4)(A) is amended by inserting 36C, after 36B, . (3) Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (A) in subparagraph (R), by striking and at the end, (B) in subparagraph (S), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (T) an omission of a correct vehicle identification number required under section 36C(f) (relating to credit for new qualified plug-in electric drive motor vehicles) to be included on a return. . (4) Section 6501(m) is amended by striking 30D(e)(4) and inserting 36C(f)(5) . (5) Section 166(b)(5)(A)(ii) of title 23, United States Code, is amended by striking section 30D(d)(1) and inserting section 36C(e)(1) . (6) Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B, . (7) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. New qualified plug-in electric drive motor vehicles. . (e) Effective dates (1) The amendments made by subsections (a), (c), and (d) of this section shall apply to vehicles acquired after December 31, 2021. (2) The amendments made by subsection (b) shall apply to vehicles acquired after December 31, 2022. 136402. Credit for previously-owned qualified plug-in electric drive motor vehicles (a) In general Subpart C of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 36C the following new section: 36D. Previously-owned qualified plug-in electric drive motor vehicles (a) Allowance of credit In the case of a qualified buyer who during a taxable year places in service a previously-owned qualified plug-in electric drive motor vehicle, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of— (1) $2,000, plus (2) the supplemental credit amount. (b) Supplemental credit amount For purposes of subsection (a), the term supplemental credit amount means— (1) $2,000, if— (A) in the case of a vehicle placed in service before January 1, 2027, such vehicle draws propulsion energy from a battery with not less than 40 kilowatt hours of capacity and has a gasoline tank capacity not greater than 2.5 gallons, and (B) in the case of a vehicle placed in service after December 31, 2026, such vehicle draws propulsion energy from a battery with not less than 50 kilowatt hours of capacity and has a gasoline tank capacity not greater than 2.5 gallons, and (2) $0 in any other case. (c) Limitations (1) Sale price The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 50 percent of the sale price. (2) Limitation based on modified adjusted gross income The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which the lesser of— (A) the taxpayer’s modified adjusted gross income for such taxable year, or (B) the taxpayer’s modified adjusted gross income for the preceding taxable year, exceeds— (i) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)), (ii) $112,500 in the case of a head of household (as defined in section 2(b)), and (iii) $75,000 in the case of a taxpayer not described in paragraph (1) or (2). (d) Definitions For purposes of this section— (1) Previously-owned qualified plug-in electric drive motor vehicle The term previously-owned qualified plug-in electric drive motor vehicle means, with respect to a taxpayer, a motor vehicle— (A) the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle, (B) the original use of which commences with a person other than the taxpayer, (C) which is acquired by the taxpayer in a qualified sale, and (D) which meets the requirements of subparagraphs (C), (D), (E), (F), (G), (H), and (I) of section 36C(e)(1) (determined by applying previously-owned qualified plug-in electric drive motor vehicle for new qualified plug-in electric drive motor vehicle ), or which is a new qualified fuel cell motor vehicle (as defined in subparagraphs (A) and (B) of section 30B(b)(3)) which has a gross vehicle weight rating of less than 14,000 pounds. (2) Qualified sale The term qualified sale means a sale of a motor vehicle— (A) by a seller who holds such vehicle in inventory (within the meaning of section 471) for sale or lease, (B) for a sale price not to exceed $25,000, and (C) which is the first transfer since the date of the enactment of this section to a person other than the person with whom the original use of such vehicle commenced. (3) Qualified buyer The term qualified buyer means, with respect to a sale of a motor vehicle, a taxpayer— (A) who is an individual, (B) who purchases such vehicle for use and not for resale, (C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151, (D) who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle, and (E) who possesses a certificate issued by the seller that certifies— (i) that the vehicle is a previously-owned qualified plug-in electric drive motor vehicle, (ii) the vehicle identification number of such vehicle, (iii) the capacity of the battery at time of sale, and (iv) such other information as the Secretary may require. (4) Motor vehicle; capacity The terms motor vehicle and capacity have the meaning given such terms in paragraphs (2) and (4) of section 36C(e), respectively. (e) VIN number requirement No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (f) Application of certain rules For purposes of this section, rules similar to the rules of paragraphs (1), (2), (4), (5), and (6) of section 36C(f) shall apply for purposes of this section. (g) Certificate submission requirement The Secretary may require that the issuer of the certificate described in subsection (c)(3)(E) submit such certificate to the Secretary at the time and in the manner required by the Secretary. (h) Treatment of certain possessions (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 determined by the Secretary based on information provided 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 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 system had been in effect in such possession. The preceding 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; treatment of payments Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section. (i) Transfer of credit Rules similar to the rules of section 36C(k) shall apply. (j) Termination No credit shall be allowed under this section with respect to any vehicle acquired after December 31, 2031. . (b) Conforming amendments (1) Section 6211(b)(4)(A), as amended by the preceding provisions of this Act, is amended by inserting 36D, after 36C, . (2) Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (A) in subparagraph (S), by striking and at the end, (B) in subparagraph (T), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (U) an omission of a correct vehicle identification number required under section 36D(d) (relating to credit for previously-owned qualified plug-in electric drive motor vehicles) to be included on a return. . (3) Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by the preceding provisions of this Act, is amended by inserting 36D, after 36C, . (c) Clerical amendment The table of sections for subpart C of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 36C the following new item: Sec. 36D. Previously-owned qualified plug-in electric drive motor vehicles. . (d) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2021. 136403. Qualified commercial electric vehicles (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 45Y. Credit for qualified commercial electric vehicles (a) In general For purposes of section 38, the qualified commercial electric vehicle credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified commercial electric vehicle placed in service by the taxpayer during the taxable year. (b) Per vehicle amount (1) In general The amount determined under this subsection with respect to any qualified commercial electric vehicle shall be equal to the lesser of— (A) 15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or (B) the incremental cost of such vehicle. (2) Incremental cost For purposes of paragraph (1)(B), the incremental cost of any qualified commercial electric vehicle is an amount equal to the excess of the purchase price for such vehicle over such price of a comparable vehicle. (3) Comparable vehicle For purposes of this paragraph, the term comparable vehicle means, with respect to any qualified commercial electric vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle. (4) Vehicles for lease to individuals (A) In general In the case of a commercial electric vehicle which is acquired by the taxpayer for the purpose of leasing such vehicle to any individual, the amount determined under this subsection with respect to such vehicle shall, at the election of such taxpayer, be equal to the amount of the credit that would otherwise be allowed under section 36C(a) with respect to such vehicle, as determined as if such vehicle— (i) is a new qualified plug-in electric drive motor vehicle, and (ii) has been acquired and placed in service by an individual. (B) Election requirements (i) In general An election under subparagraph (A) shall be made at such time and in such manner as the Secretary prescribes by regulations or other guidance. (ii) Disclosure requirement For purposes of any regulations or other guidance prescribed under clause (i), the Secretary shall require that, as a condition of an election under subparagraph (A), the taxpayer making such election shall be required to disclose to the lessee of the commercial electric vehicle the value of the credit allowed under this section. (c) Qualified commercial electric vehicle For purposes of this section, the term qualified commercial electric vehicle means any vehicle which— (1) meets the requirements of subparagraphs (A) and (C) of section 36C(e)(1) without regard to any gross vehicle weight rating or the requirements of section 36C(d), and is acquired for use or lease by the taxpayer and not for resale, (2) either— (A) meets the requirements of subparagraph (D) of section 36C(e)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or (B) is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways), (3) either— (A) is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours and is capable of being recharged from an external source of electricity, or (B) is a new qualified fuel cell motor vehicle described in subparagraphs (A) and (B) of section 30B(b)(3), and (4) is of a character subject to the allowance for depreciation. (d) Special rules (1) In general Subject to paragraph (2), rules similar to the rules under subsection (f) of section 36C shall apply for purposes of this section. (2) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any credit allowed under subsection (a) with respect to any property which ceases to be property eligible for such credit, including regulations or other guidance which, in the case of any commercial electric vehicle for which an election was made under subsection (b)(4)— (A) recaptures the credit allowed under subsection (a) if— (i) such vehicle was not leased to an individual, or (ii) the taxpayer failed to comply with the requirements described in subsection (b)(4)(B)(ii), and (B) in the case of a commercial electric vehicle which is leased by an individual whose modified adjusted gross income exceeds the threshold amount under section 36C(c)(2), recaptures so much of the credit allowed under subsection (a) as exceeds the amount of the credit which would have otherwise been allowable under such subsection if, for purposes of subsection (b)(4)(A), the amount of the credit that would otherwise be allowed under section 36C(a) with respect to such vehicle had been determined as if such vehicle was acquired and placed in service by such individual and subject to reduction under section 36C(c). (3) Vehicles placed in service by tax-exempt entities Subsection (c)(4) shall not apply to any vehicle which is not subject to a lease and which is placed in service by a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A). (e) VIN number requirement No credit shall be determined under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (f) Termination No credit shall be determined under this section with respect to any vehicle acquired after December 31, 2031. . (b) Elective payment of credit in case of certain tax-exempt entities Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (9) In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45Y by reason of subsection (d)(2) thereof. . (c) Conforming amendments (1) Section 38(b) is amended by striking paragraph (30) and inserting the following: (30) the qualified commercial electric vehicle credit determined under section 45Y, . (2) Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (A) in subparagraph (T), by striking and at the end, (B) in subparagraph (U), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (V) an omission of a correct vehicle identification number required under section 45Y(e) (relating to commercial electric vehicle credit) to be included on a return. . (3) The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45Y. Qualified commercial electric vehicle credit. . (d) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2021. 136404. Qualified fuel cell motor vehicles (a) In general Section 30B(k)(1) is amended by striking December 31, 2021 and inserting December 31, 2031 . (b) New qualified fuel cell motor vehicle Section 30B(b) is amended by striking and at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting , and , and by adding at the end the following new subparagraph: (F) which is not property of a character subject to an allowance for depreciation. . (c) Conforming amendment Section 30B(g) is amended to read as follows: (g) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year. . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2021. 136405. Alternative fuel refueling property credit (a) In general Section 30C(g) is amended by striking December 31, 2021 and inserting December 31, 2031 . (b) Additional credit for certain electric charging property (1) In general Section 30C(a) is amended— (A) by striking equal to 30 percent and inserting the following: equal to the sum of— (1) 30 percent (6 percent in the case of property of a character subject to depreciation) , (B) by striking the period at the end and inserting , plus , and (C) by adding at the end the following new paragraph: (2) 4 percent of so much of such cost as exceeds the limitation under subsection (b)(1) that does not exceed the amount of cost attributable to qualified alternative fuel vehicle refueling property (determined without regard to subsection (c)(1) and as if only electricity, and fuel at least 85 percent of the volume of which consists of hydrogen, were treated as clean-burning fuels for purposes of section 179A(d)) which— (A) is intended for general public use with no associated fee or payment arrangement, (B) is intended for general public use and accepts payment via a credit card reader, including a credit card reader that uses contactless technology, or (C) is intended for use exclusively by commercial or governmental vehicles. . (2) Conforming amendment Section 30C(b) is amended— (A) by striking The credit allowed under subsection (a) and inserting The amount of cost taken into account under subsection (a)(1) , (B) by striking $30,000 and inserting $100,000 , and (C) by striking $1,000 and inserting $3,333.33 . (3) Bidirectional charging equipment included as qualified alternative fuel vehicle refueling property Section 30C(c) is amended to read as follows: (c) Qualified alternative fuel vehicle refueling property For purposes of this section— (1) In general The term qualified alternative fuel vehicle refueling property has the same meaning as the term qualified clean-fuel vehicle refueling property would have under section 179A if— (A) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and (B) only the following were treated as clean-burning fuels for purposes of section 179A(d): (i) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen. (ii) Any mixture— (I) which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and (II) at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture. (iii) Electricity. (2) Bidirectional charging equipment Property shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property— (A) is capable of charging the battery of a motor vehicle propelled by electricity, and (B) allows discharging electricity from such battery to an electric load external to such motor vehicle. . (c) Certain electric charging stations included as qualified alternative fuel vehicle refueling property Section 30C is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following: (f) Special rule for electric charging stations for certain vehicles with 2 or 3 wheels For purposes of this section— (1) In general The term qualified alternative fuel vehicle refueling property includes any property described in subsection (c) for the recharging of a motor vehicle described in paragraph (2) that is propelled by electricity, but only if the property— (A) meets the requirements of subsection (a)(2), and (B) is of a character subject to depreciation. (2) Motor vehicle A motor vehicle is described in this paragraph if the motor vehicle— (A) is manufactured primarily for use on public streets, roads, or highways (not including a vehicle operated exclusively on a rail or rails), and (B) has at least 2, but not more than 3, wheels. . (d) Wage and apprenticeship requirements Section 30C, as amended by this section, is further amended by redesignating subsections (g) and (h) as subsections (h) and (i) and by inserting after subsection (f) the following new subsection: (g) Wage and apprenticeship requirements (1) Increased credit amount (A) In general In the case of any qualified alternative fuel vehicle refueling project which satisfies the requirements of subparagraph (C), the amount of the credit determined under subsection (a) for property of a character subject to an allowance for depreciation shall be equal to such amount multiplied by 5 (determined without regard to this sentence). (B) Qualified alternative fuel vehicle refueling project For purposes of this subsection, the term qualified alternative fuel vehicle refueling project means a project consisting of multiple properties that are part of a single project. The requirements of this paragraph shall be applied to such project. (C) Project requirements A project meets the requirements of this subparagraph if it is one of the following: (i) A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2) and (3). (ii) A project which satisfies the requirements of paragraphs (2) and (3). (2) Prevailing wage requirements (A) In general The requirements described in this subparagraph with respect to any qualified alternative fuel vehicle refueling project are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the construction of such property shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (3) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (4) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this subsection. . (e) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2021. 136406. Reinstatement and expansion of employer-provided fringe benefits for bicycle commuting (a) Repeal of suspension of exclusion for qualified bicycle commuting benefits Section 132(f) is amended by striking paragraph (8). (b) Expansion of bicycle commuting benefits Section 132(f)(5)(F) is amended to read as follows: (F) Definitions related to bicycle commuting benefits (i) Qualified bicycle commuting benefit The term qualified bicycle commuting benefit means, with respect to any calendar year— (I) any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase (including associated finance charges), lease, rental (including a bikeshare), improvement, repair, or storage of qualified commuting property, or (II) the direct or indirect provision by the employer to the employee during such calendar year of the use (including a bikeshare), improvement, repair, or storage of qualified commuting property, if the employee regularly uses such qualified commuting property for travel between the employee’s residence, place of employment, a qualified parking facility, or a mass transit facility that connects the employee to their residence or place of employment. (ii) Qualified commuting property The term qualified commuting property means— (I) any bicycle (other than a bicycle equipped with any motor), (II) any electric bicycle which meets the requirements of section 36E(c)(5), (III) any 2- or 3-wheel scooter (other than a scooter equipped with any motor), and (IV) any 2- or 3-wheel scooter propelled by an electric motor if such motor does not provide assistance if the speed of such scooter exceeds 20 miler per hour (or if the speed of such scooter is not capable of exceeding 20 miles per hour) and the weight of such scooter does not exceed 100 pounds. (iii) Bikeshare The term bikeshare means a rental operation at which qualified commuting property is made available to customers to pick up and drop off for point-to-point use within a defined geographic area. . (c) Limitation on exclusion Section 132(f)(2)(C) is amended to read as follows: (C) 30 percent of the dollar amount in effect under subparagraph (B) per month in the case of any qualified bicycle commuting benefit. . (d) No constructive receipt Section 132(f)(4) is amended by striking (other than a qualified bicycle commuting reimbursement) . (e) Conforming amendments (1) Section 132(f)(1)(D) is amended by striking reimbursement and inserting benefit . (2) Section 274(l) is amended by striking paragraph (2). (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 136407. Credit for certain new electric bicycles (a) In general Subpart C of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 36D the following new section: 36E. Electric bicycles (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the cost of each qualified electric bicycle placed in service by the taxpayer during such taxable year. (b) Limitations (1) Limitation on cost per electric bicycle taken into account The amount taken into account under subsection (a) as the cost of any qualified electric bicycle shall not exceed $3,000. (2) Bicycle limitation with respect to credit (A) Limitation on number of personal-use bicycles In the case of any taxpayer for any taxable year, the number of personal-use bicycles taken into account under subsection (a) shall not exceed the excess (if any) of— (i) 1 (2 in the case of a joint return), reduced by (ii) the aggregate number of bicycles taken into account by the taxpayer under subsection (a) for the 2 preceding taxable years. (B) Phaseout based on modified adjusted gross income The credit allowed under subsection (a) shall be reduced by $200 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds— (i) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)), (ii) $112,500 in the case of a head of household (as defined in section 2(b)), and (iii) $75,000 in the case of a taxpayer not described in clause (i) or (ii). (C) Modified adjusted gross income For purposes of subparagraph (B), the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (D) Special rule for modified adjusted gross income taken into account The modified adjusted gross income of the taxpayer that is taken into account for purposes of this paragraph shall be the lesser of— (i) the modified adjusted gross income for the taxable year in which the credit is claimed, or (ii) the modified adjusted gross income for the immediately preceding taxable year. (c) Qualified electric bicycle For purposes of this section, the term qualified electric bicycle means a bicycle— (1) the original use of which commences with the taxpayer, (2) which is acquired for use by the taxpayer and not for resale, (3) which is made by a qualified manufacturer and is labeled with the qualified vehicle identification number assigned to such bicycle by such manufacturer, (4) with respect to which the aggregate amount paid for such acquisition does not exceed $4,000, and (5) which is equipped with— (A) fully operable pedals, (B) a saddle or seat for the rider, and (C) an electric motor of less than 750 watts which is designed to provided assistance in propelling the bicycle and— (i) does not provide such assistance if the bicycle is moving in excess of 20 miler per hour, or (ii) if such motor only provides such assistance when the rider is pedaling, does not provide such assistance if the bicycle is moving in excess of 28 miles per hour. (d) VIN number requirement (1) In general No credit shall be allowed under subsection (a) with respect to any qualified electric bicycle unless the taxpayer includes the qualified vehicle identification number of such bicycle on the return of tax for the taxable year. (2) Qualified vehicle identification number For purposes of this section, the term qualified vehicle identification number means, with respect to any bicycle, the vehicle identification number assigned to such bicycle by a qualified manufacturer pursuant to the methodology referred to in paragraph (3). (3) Qualified manufacturer For purposes of this section, the term qualified manufacturer means any manufacturer of qualified electric bicycles which enters into an agreement with the Secretary which provides that such manufacturer will— (A) assign a vehicle identification number to each qualified electric bicycle produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to such bicycle (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), (B) label such bicycle with such number in such manner as the Secretary may provide, and (C) make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the vehicle identification numbers so assigned and including such information as the Secretary may require with respect to the qualified electric bicycle to which such number was so assigned. (e) Special rules (1) Basis reduction For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed. (2) No double benefit The amount of any deduction or other credit allowable under this chapter for a qualified electric bicycle for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such bicycle. (3) Property used outside united states not qualified No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1). (4) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. (5) Election not to take credit No credit shall be allowed under subsection (a) for any bicycle if the taxpayer elects to not have this section apply to such bicycle. (f) Treatment of certain possessions (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 (determined without regard to this subsection). Such amounts shall be determined by the Secretary based on information provided 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 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 system had been in effect in such possession. The preceding 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; treatment of payments Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section. (g) Transfer of credit (1) In general Subject to such regulations or other guidance as the Secretary determines necessary or appropriate, if the taxpayer who acquires a qualified electric bicycle after December 31, 2022 elects the application of this subsection with respect to such qualified electric bicycle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such qualified electric bicycle shall be allowed to the eligible entity specified in such election (and not to such taxpayer). (2) Eligible entity For purposes of this paragraph, the term eligible entity means, with respect to the qualified electric bicycle for which the credit is allowed under subsection (a), the retailer which sold such qualified electric bicycle to the taxpayer and has— (A) subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe, (B) prior to the election described in paragraph (1) and no later than at the time of such sale, disclosed to the taxpayer purchasing such qualified electric bicycle— (i) the retail price, (ii) the value of the credit allowed or other incentive available for the purchase of such qualified electric bicycle, (iii) all fees associated with the purchase of such qualified electric bicycle, and (iv) the amount provided by the retailer to such taxpayer as a condition of the election described in paragraph (1), (C) made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such qualified electric bicycle) in an amount equal to the credit otherwise allowable to such taxpayer, and (D) with respect to any incentive otherwise available for the purchase of a qualified electric bicycle for which a credit is allowed under this section, including any incentive in the form of a rebate or discount provided by the retailer or manufacturer, ensured that— (i) the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and (ii) such election shall not limit the value or use of such incentive. (3) Timing An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the qualified electric bicycle for which the credit is allowed under subsection (a) is purchased. (4) Revocation of registration Upon determination by the Secretary that a retailer has failed to comply with the requirements described in paragraph (2), the Secretary may revoke the registration (as described in subparagraph (A) of such paragraph) of such retailer. (5) Tax treatment of payments With respect to any payment described in paragraph (2)(C), such payment— (A) shall not be includible in the gross income of the taxpayer, and (B) with respect to the retailer, shall not be deductible under this title. (6) Application of certain other requirements In the case of any election under paragraph (1) with respect to any qualified electric bicycle— (A) the amount of the reduction under subsection (b) shall be determined with respect to the modified adjusted gross income of the taxpayer for the taxable year preceding the taxable year in which such qualified electric bicycle was acquired (and not with respect to such income for the taxable year in which such qualified electric bicycle was acquired), (B) the requirements of paragraphs (1) and (2) of subsection (e) shall apply to the taxpayer who acquired the qualified electric bicycle in the same manner as if the credit determined under this section with respect to such qualified electric bicycle were allowed to such taxpayer, and (C) subsection (e)(5) shall not apply. (7) Advance payment to registered retailers (A) In general The Secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection (a) with respect to any qualified electric bicycles sold by such entity for which an election described in paragraph (1) has been made. (B) Excessive payments Rules similar to the rules of section 6417(c)(7) shall apply for purposes of this paragraph. (8) Retailer For purposes of this subsection, the term retailer means a person engaged in the trade or business of selling qualified electric bicycles in a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government (as defined in section 48(e)(4)(F)(ii)), or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ). (h) Termination This section shall not apply to bicycles placed in service after December 31, 2025. . (b) Conforming amendments (1) Section 1016(a) is amended by striking and at the end of paragraph (38), by striking the period at the end of paragraph (39) and inserting , and , and by adding at the end the following new paragraph: (40) to the extent provided in section 36E(f)(1). . (2) Section 6211(b)(4)(A) of such Code is amended by inserting 36E by reason of subsection (c)(2) thereof, before 32, . (3) Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— (A) in subparagraph (U), by striking and at the end, (B) in subparagraph (V), by striking the period at the end and inserting , and , and (C) by adding at the end the following: (W) an omission of a correct vehicle identification number required under section 36E(d) (relating to electric bicycles credit) to be included on a return. . (4) Section 6501(m) is amended by inserting 36E(f)(4), after 35(g)(11), . (5) Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36E, after 36D, . (c) Clerical amendment The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 36E. Electric bicycles. . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2021, in taxable years ending after such date. 5 Investment in the Green Workforce and Manufacturing 136501. Extension of the advanced energy project credit (a) Extension of credit Section 48C is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: (e) Additional allocations (1) In general Not later than 270 days after the date of enactment of this subsection, the Secretary shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors. (2) Annual limitation (A) In general The amount of credits that may be allocated under this subsection during any calendar year shall not exceed the annual credit limitation with respect to such year. (B) Annual credit limitation (i) In general For purposes of this subsection, the term annual credit limitation means $5,000,000,000 for each of calendar years 2022 through 2023, $1,875,000,000 for each of calendar years 2024 through 2031, and zero thereafter. (ii) Amount set aside for automotive communities (I) In general For purposes of clause (i), $800,000,000 of the annual credit limitation for each of calendar years 2022 through 2023 and $300,000,000 for each of calendar years 2024 through 2031 shall be allocated to qualified investments located within automotive communities. (II) Automotive communities For purposes of this clause, the term automotive communities means a census tract and any directly adjoining census tract, including a no-population census tract, that has experienced major job losses in the automotive manufacturing sector since January 1, 1994, as determined by the Secretary. (iii) Amount set aside for energy communities For purposes of clause (i), $800,000,000 of the annual credit limitation for each of calendar years 2022 through 2023 and $300,000,000 for each of calendar years 2024 through 2031 shall be allocated to qualified investments located within energy communities (as defined in section 45(b)(11)(B)). (C) Carryover of unused limitation If the annual credit limitation for any calendar year exceeds the aggregate amount designated for such year under this subsection, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2036. (3) Certifications (A) Application requirement Each applicant for certification under this subsection shall submit an application at such time and containing such information as the Secretary may require. (B) Time to meet criteria for certification Each applicant for certification shall have 2 years from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. (C) Period of issuance An applicant which receives a certification shall have 2 years from the date of issuance of the certification in order to place the project in service and to notify the Secretary that such project has been so placed in service, and if such project is not placed in service (and the Secretary so notified) by that time period, then the certification shall no longer be valid. If any certification is revoked under this subparagraph, the amount of the annual credit limitation under paragraph (2) for the calendar year in which such certification is revoked shall be increased by the amount of the credit with respect to such revoked certification. (4) Selection criteria Selection criteria similar to those in subsection (d)(3) shall apply, except that in determining designations under this subsection, the Secretary shall— (A) in addition to the factors described in subsection (d)(3)(B), take into consideration which projects— (i) will provide the greatest net impact in avoiding or reducing anthropogenic emissions of greenhouse gases, as determined by the Secretary, (ii) will provide the greatest domestic job creation (both direct and indirect) during the credit period, (iii) will provide the greatest job creation within the vicinity of the project, particularly with respect to— (I) low-income communities (as described in section 45D(e)), and (II) dislocated workers who were previously employed in manufacturing, coal power plants, or coal mining, and (iv) will provide the greatest job creation in areas with a population that is at risk of experiencing higher or more adverse human health or environmental effects and a significant portion of such population is comprised of communities of color, low-income communities, Tribal and Indigenous communities, or individuals formerly employed in the fossil fuel industry, and (B) give the highest priority to projects which— (i) manufacture (other than primarily assembly of components) property described in a subclause of subsection (c)(1)(A)(i) (or components thereof), and (ii) have the greatest potential for commercial deployment of new applications. (5) Disclosure of allocations The Secretary shall, upon allocating a credit under this subsection, publicly disclose the identity of the applicant, the amount of the credit with respect to such applicant, and the project location for which such credit was allocated. (6) Credit conditioned upon wage and apprenticeship requirements (A) Base rate For purposes of allocations under this subsection, the amount of the credit determined under subsection (a) shall be determined by substituting 6 percent for 30 percent . (B) Alternative rate In the case of any project which satisfies the requirements of paragraphs (7) and (8), the amount of the credit determined under subsection (a) (after application of subparagraph (A)) shall be equal to such amount multiplied by 5. (7) Prevailing wage requirements (A) In general The requirements described in this paragraph with respect to a project are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the re-equipping, expansion, or establishment of a manufacturing facility shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to any project— (i) rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply, and (ii) if the failure to satisfy the requirement under subparagraph (A) is not corrected pursuant to the rules described in clause (i), the certification with respect to the re-equipping, expansion, or establishment of a manufacturing facility shall no longer be valid. (8) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. . (b) Modification of qualifying advanced energy projects (1) Inclusion of water as a renewable resource Section 48C(c)(1)(A)(i)(I) is amended by inserting water, after sun, . (2) Energy storage systems Section 48C(c)(1)(A)(i)(II) is amended by striking an energy storage system for use with electric or hybrid-electric motor vehicles and inserting energy storage systems and components . (3) Modification of qualifying electric grid property Section 48C(c)(1)(A)(i)(III) is amended to read as follows: (III) electric grid modernization equipment or components, . (4) Use of captured carbon Section 48C(c)(1)(A)(i)(IV) is amended by striking sequester and insert use or sequester . (5) Electric vehicles and bicycles Section 48C(c)(1)(A)(i)(VI) is amended— (A) by striking new qualified plug-in electric drive motor vehicles (as defined by section 30D) and inserting vehicles described in sections 36C and 45Y, and bicycles described in section 36E , and (B) and striking and power control units and inserting power control units, and equipment used for charging or refueling . (6) Property for production of hydrogen Section 48C(c)(1)(A)(i) is amended by striking or at the end of subclause (VI), by redesignating subclause (VII) as subclause (VIII), an by inserting after subclause (VI) the following new subclause: (VII) property designed to be used to produce qualified clean hydrogen (as defined in section 45X), or . (7) Recycling of advanced energy property Section 48C(c)(1) is amended by adding at the end the following new subparagraph: (C) Special rule for certain recycling facilities A facility which recycles batteries or similar energy storage property described in subparagraph (A)(i) shall be treated as part of a manufacturing facility described in such subparagraph. . (c) Denial of double benefit 48C(f), as redesignated by this section, is amended by striking or 48B and inserting 48B, 48F, 45Q, or 45X . (d) Effective date The amendments made by this section shall take effect on January 1, 2022. 136502. Labor costs of installing mechanical insulation property (a) In general Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section: 45Z. Labor costs of installing mechanical insulation property (a) In general For purposes of section 38, the mechanical insulation labor costs credit determined under this section for any taxable year is an amount equal to 2 percent of the mechanical insulation labor costs paid or incurred by the taxpayer during such taxable year. (b) Mechanical insulation labor costs For purposes of this section— (1) In general The term mechanical insulation labor costs means the labor cost of installing mechanical insulation property with respect to a mechanical system referred to in paragraph (2)(A) which was originally placed in service not less than 1 year before the date on which such mechanical insulation property is installed. (2) Mechanical insulation property The term mechanical insulation property means insulation materials, and facings and accessory products installed in connection to such insulation materials— (A) placed in service in connection with a mechanical system which— (i) is located in the United States, (ii) is of a character subject to an allowance for depreciation, and (iii) meets the requirements of section 434.403 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this section), and (B) which result in a reduction in energy loss from the mechanical system which is greater than the expected reduction from the installation of insulation materials which meet the minimum requirements of Reference Standard 90.1 (as defined in section 179D(c)(2)). (c) Wage and apprenticeship requirements (1) In general In the case of any project which meets the prevailing wage and apprenticeship requirements of this subsection, the amount of credit determined under subsection (a) shall be multiplied by 5. (2) Wage requirements Rules similar to the rules of section 45(b)(7)(A) and clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (3) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (d) Termination This section shall not apply to mechanical insulation labor costs paid or incurred after December 31, 2025. . (b) Credit allowed as part of general business credit Section 38(b), as amended by the preceding provisions of this Act, is further amended by striking plus at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , plus , and by adding at the end the following new paragraph: (38) the mechanical insulation labor costs credit determined under section 45Z(a). . (c) Conforming amendments (1) Section 280C is amended by adding at the end the following new subsection: (i) Mechanical insulation labor costs credit (1) In general No deduction shall be allowed for that portion of the mechanical insulation labor costs (as defined in section 45Z(b)) otherwise allowable as deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45Z(a). (2) Similar rule where taxpayer capitalizes rather than deducts expenses If— (A) the amount of the credit determined for the taxable year under section 45Z(a), exceeds (B) the amount of allowable as a deduction for such taxable year for mechanical insulation labor costs (determined without regard to paragraph (1)), the amount chargeable to capital account for the taxable year for such costs shall be reduced by the amount of such excess. . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new item: Sec. 45Z. Labor costs of installing mechanical insulation property. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2021, in taxable years ending after such date. 136503. Advanced Manufacturing Investment Credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48D the following new section: 48E. Advanced manufacturing investment credit (a) Establishment of credit (1) In general For purposes of section 46, the advanced manufacturing investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to any advanced manufacturing facility. (2) Applicable percentage (A) Base amount In the case of any advanced manufacturing facility which does not satisfy the requirements described in clauses (i) and (ii) of subparagraph (B), the applicable percentage shall be 5 percent. (B) Alternative amount In the case of any advanced manufacturing facility which— (i) subject to subparagraph (B) of subsection (c)(2), satisfies the requirements under subparagraph (A) of such subsection, and (ii) with respect to the construction of such facility, satisfies the apprenticeship requirements under subsection (c)(3), the applicable percentage shall be 25 percent. (b) Qualified investment (1) In general For purposes of subsection (a)(1), the qualified investment with respect to any advanced manufacturing facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of an advanced manufacturing facility. (2) Qualified property (A) In general For purposes of this subsection, the term qualified property means property— (i) which is tangible property, (ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (iii) which is— (I) constructed, reconstructed, or erected by the taxpayer, or (II) acquired by the taxpayer if the original use of such property commences with the taxpayer, and (iv) which is integral to the operation of the advanced manufacturing facility. (B) Buildings and structural components (i) In general The term qualified property includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A). (ii) Exception Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services or other functions unrelated to manufacturing. (3) Advanced manufacturing facility For purposes of this subpart, the term advanced manufacturing facility means a facility for which the primary purpose is the manufacturing of semiconductors or semiconductor tooling equipment. (4) Coordination with rehabilitation credit The qualified investment with respect to any advanced manufacturing facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)). (c) Special rules (1) Certain progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (2) Wage requirements (A) In general The requirements described in this subparagraph with respect to any facility are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in— (i) the construction of such facility, and (ii) for any year during the 5-year period beginning on the date the facility is originally placed in service, the alteration or repair of such facility, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Correction and penalty related to failure to satisfy wage requirements Rules similar to the rules of clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (C) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under paragraph (2)(B) of subsection (a), with respect to any project which does not satisfy the requirements under subparagraph (A) (after application of subparagraph (B)) for the period described in clause (ii) of subparagraph (A) (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). (3) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (4) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of establishing the requirements of this section. (d) Termination of credit The credit allowed under this section shall not apply to facilities or property the construction of which begins after December 31, 2025. . (b) Elective payment of credit Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (10) The advanced manufacturing investment credit determined under section 48E. . (c) Conforming amendments (1) Section 46 is amended— (A) by striking and at the end of paragraph (6), (B) by striking the period at the end of paragraph (7) and inserting , and , and (C) by adding at the end the following new paragraph: (8) the advanced manufacturing investment credit. . (2) Section 49(a)(1)(C) is amended— (A) by striking and at the end of clause (vi), (B) by striking the period at the end of clause (vii) and inserting , and , and (C) by adding at the end the following new clause: (viii) the basis of any qualified property (as defined in section 48E(b)(2)) which is part of an advanced manufacturing facility. . (3) Section 50(a)(2)(E) is amended by striking or 48D(e) and inserting 48D(e), or 48E(c)(1) . (4) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48D the following new item: 48E. Advanced manufacturing investment credit. . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2021 and, for any property the construction of which begins prior to January 1, 2022, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2021. 136504. Advanced manufacturing production credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 45AA. Advanced manufacturing production credit (a) In general (1) Allowance of credit For purposes of section 38, the advanced manufacturing production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component which is— (A) produced by such taxpayer, and (B) during the taxable year, sold by the taxpayer to an unrelated person. (2) Production and sale must be in trade or business Any eligible component produced and sold by the taxpayer shall be taken into account only if the production and sale described in paragraph (1) is in a trade or business of the taxpayer. (3) Unrelated person For purposes of this subsection, a taxpayer shall be treated as selling components to an unrelated person if such component is sold to such person by a person related to the taxpayer. (b) Credit amount (1) In general Subject to paragraph (3), the amount determined under this subsection with respect to any eligible component, including any eligible component it incorporates, shall be equal to— (A) in the case of a thin photovoltaic cell or a crystalline photovoltaic cell, an amount equal to the product of— (i) 4 cents, multiplied by (ii) the capacity of such cell (expressed on a per direct current watt basis), (B) in the case of a photovoltaic wafer, $12 per square meter, (C) in the case of solar grade polysilicon, $3 per kilogram, (D) in the case of a solar module, an amount equal to the product of— (i) 7 cents, multiplied by (ii) the capacity of such module (expressed on a per direct current watt basis), and (E) in the case of a wind energy component, an amount equal to the product of— (i) the applicable amount with respect to such component, multiplied by (ii) the total rated capacity (expressed on a per watt basis) of the completed wind turbine for which such component is designed. (2) Applicable amount For purposes of paragraph (1)(E), the applicable amount with respect to any wind energy component shall be— (A) in the case of a blade, 2 cents, (B) in the case of a nacelle, 5 cents, (C) in the case of a tower, 3 cents, and (D) in the case of an offshore wind foundation— (i) which uses a fixed platform, 2 cents, or (ii) which uses a floating platform, 4 cents. (3) Phase out (A) In general In the case of any eligible component sold after December 31, 2026, the amount determined under this subsection with respect to such component shall be equal to the product of— (i) the amount determined under paragraph (1) with respect to such component, as determined without regard to this paragraph, multiplied by (ii) the phase out percentage under subparagraph (B). (B) Phase out percentage The phase out percentage under this subparagraph is equal to— (i) in the case of an eligible component sold during calendar year 2027, 75 percent, (ii) in the case of an eligible component sold during calendar year 2028, 50 percent, (iii) in the case of an eligible component sold during calendar year 2029, 25 percent, (iv) in the case of an eligible component sold after December 31, 2029, 0 percent. (c) Definitions For purposes of this section— (1) Eligible component (A) In general The term eligible component means— (i) any solar energy component, and (ii) any wind energy component. (B) Application with other credits The term eligible component shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C or 48E after the date of the enactment of this section. (2) Solar energy component (A) In general The term solar energy component means any of the following: (i) Solar modules. (ii) Photovoltaic cells. (iii) Photovoltaic wafers. (iv) Solar grade polysilicon. (B) Associated definitions (i) Photovoltaic cell The term photovoltaic cell means the smallest semiconductor element of a solar module which performs the immediate conversion of light into electricity. (ii) Photovoltaic wafer The term photovoltaic wafer means a thin slice, sheet, or layer of semiconductor material of at least 240 square centimeters produced by a single manufacturer— (I) either— (aa) directly from molten or evaporated solar grade polysilicon or deposition of solar grade thin film semiconductor photon absorber layer, or (bb) through formation of an ingot from molten polysilicon and subsequent slicing, and (II) which comprises the substrate or absorber layer of one or more photovoltaic cells. (iii) Solar grade polysilicon The term solar grade polysilicon means silicon which is— (I) suitable for use in photovoltaic manufacturing, and (II) purified to a minimum purity of 99.999999 percent silicon by mass. (iv) Solar module The term solar module means the connection and lamination of photovoltaic cells into an environmentally protected final assembly which is— (I) suitable to generate electricity when exposed to sunlight, and (II) ready for installation without an additional manufacturing process. (3) Wind energy component (A) In general The term wind energy component means any of the following: (i) Blades. (ii) Nacelles. (iii) Towers. (iv) Offshore wind foundations. (B) Associated definitions (i) Blade The term blade means an airfoil-shaped blade which is responsible for converting wind energy to low-speed rotational energy. (ii) Offshore wind foundation The term offshore wind foundation means the component which secures an offshore wind tower and any above-water turbine components to the seafloor using— (I) fixed platforms, such as offshore wind monopiles, jackets, or gravity-based foundations, or (II) floating platforms and associated mooring systems. (iii) Nacelle The term nacelle means the assembly of the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing. (iv) Tower The term tower means a tubular or lattice structure which supports the nacelle and rotor of a wind turbine. (d) Special rules In this section— (1) Related persons Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). (2) Only production in the United States taken into account Sales shall be taken into account under this section only with respect to eligible components the production of which is within— (A) the United States (within the meaning of section 638(1)), or (B) a possession of the United States (within the meaning of section 638(2)). (3) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. (4) Credit equal to 10 percent of the credit amount for union facilities In the case of a facility operating under a collective bargaining agreement negotiated by an employee organization (as defined in section 412(c)(4)), determined in a manner consistent with section 7701(a)(46), for purposes of determining the amount of the credit under subsection (a) with respect to eligible components produced by such facility, the applicable amount under subsection (b) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such subsection. (5) Sale of integrated components For purposes of this section, a person shall be treated as having sold an eligible component if such component is integrated, incorporated, or assembled into another eligible component which is sold to an unrelated person. . (b) Elective payment of credit Section 6417(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (11) The credit for advanced manufacturing production under section 45AA. . (c) Conforming amendments (1) Section 38(b) of the Internal Revenue Code of 1986 is amended— (A) in paragraph (37), by striking plus at the end, (B) in paragraph (38), by striking the period at the end and inserting , plus , and (C) by adding at the end the following new paragraph: (39) the advanced manufacturing production credit determined under section 45AA(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45AA. Advanced manufacturing production credit. . (d) Effective date The amendments made by this section shall apply to components produced and sold after December 31, 2021. 6 Environmental Justice 136601. Qualified environmental justice program credit (a) In general Subpart C of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 36F the following new section: 36G. Qualified environmental justice programs (a) Allowance of credit In the case of an eligible educational institution, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the applicable percentage of the amounts paid or incurred by such taxpayer during such taxable year which are necessary for a qualified environmental justice program. (b) Qualified environmental justice program For purposes of this section— (1) In general The term qualified environmental justice program means a program conducted by one or more eligible educational institutions that is designed to address, or improve data about, qualified environmental stressors for the primary purpose of improving, or facilitating the improvement of, health and economic outcomes of individuals residing in low-income areas or areas that experience, or are at risk of experiencing, multiple exposures to qualified environmental stressors. (2) Qualified environmental stressor The term qualified environmental stressor means, with respect to an area, a contamination of the air, water, soil, or food with respect to such area or a change relative to historical norms of the weather conditions of such area, including— (A) toxic pollutants (such as lead, pesticides, or fine particulate matter) in air, soil, food, or water, (B) high rates of asthma prevalence and incidence, and (C) such other adverse human health or environmental effects as are identified by the Secretary. (c) Eligible educational institution For purposes of this section, the term eligible educational institution means an institution of higher education (as such term is defined in section 101 or 102(c) of the Higher Education Act of 1965) that is eligible to participate in a program under title IV of such Act. (d) Applicable percentage For purposes of this section, the term applicable percentage means— (1) in the case of a program involving material participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965, 30 percent, and (2) in all other cases, 20 percent. (e) Credit allocation (1) Allocation (A) In general The Secretary shall allocate credit dollar amounts under this section to eligible educational institutions, for qualified environmental justice programs, that— (i) submit applications at such time and in such manner as the Secretary may provide, and (ii) are selected by the Secretary under subparagraph (B). (B) Selection criteria The Secretary shall select applications on the basis of the following criteria: (i) The extent of participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965. (ii) The extent of the expected effect on the health or economic outcomes of individuals residing in areas within the United States that are low-income areas or areas that experience, or are at risk of experiencing, multiple exposures to qualified environmental stressors. (iii) The creation or significant expansion of qualified environmental justice programs. (2) Limitations (A) In general The amount of the credit determined under this section for any taxable year to any eligible educational institution for any qualified environmental justice program shall not exceed the excess of— (i) the credit dollar amount allocated to such institution for such program under this subsection, over (ii) the credits previously claimed by such institution for such program under this section. (B) Five-year limitation No amounts paid or incurred after the 5-year period beginning on the date a credit dollar amount is allocated to an eligible educational institution for a qualified environmental justice program shall be taken into account under subsection (a) with respect to such institution for such program. (C) Allocation limitation The total amount of credits that may be allocated under the program shall not exceed— (i) $1,000,000,000 for each of taxable years 2022 through 2031, and (ii) $0 for each subsequent year. (D) Carryover of unused limitation If the annual credit limitation for any calendar year exceeds the aggregate amount designated for such year under this subsection, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2036. (f) Requirements (1) In general An eligible educational institution that has been allocated credit dollar amounts under this section for a qualified environmental justice project for a taxable year shall— (A) make publicly available the application submitted to the Secretary under subsection (e) with respect to such project, and (B) submit an annual report to the Secretary that describes the amounts paid or incurred for, and expected impact of, such project. (2) Failure to comply In the case of an eligible educations institution that has failed to comply with the requirements of this subsection, the credit dollar amount allocated to such institution under this section is deemed to be $0. (g) Public disclosure The Secretary, upon making an allocation of credit dollar amounts under this section, shall publicly disclose— (1) the identity of the eligible educational institution receiving the allocation, and (2) the amount of such allocation. . (c) Conforming amendments (1) Section 6211(b)(4)(A), as amended by the preceding provisions of this Act, is amended by inserting 36G, after 36F, . (2) Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by the preceding provisions of this Act, is amended by inserting 36G, after 36F, . (d) Clerical amendment The table of sections for subpart C of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 36F the following new item: Sec. 36G. Qualified environmental justice programs. . (e) Effective date The amendments made by this section shall take effect on January 1, 2022. 7 Superfund 136701. Reinstatement of Superfund (a) Hazardous Substance Superfund financing rate (1) Extension Section 4611(e) is amended to read as follows: (e) Application of Hazardous Substance Superfund financing rate The Hazardous Substance Superfund financing rate under this section shall apply after June 30, 2022. . (2) Adjustment for inflation (A) Section 4611(c)(2)(A) is amended by striking 9.7 cents and inserting 16.4 cents . (B) Section 4611(c) is amended by adding at the end the following: (3) Adjustment for inflation (A) In general In the case of a year beginning after 2022, the amount in paragraph (2)(A) shall be increased by an amount equal to— (i) such amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2021 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01. . (b) Authority for advances Section 9507(d)(3)(B) is amended by striking December 31, 1995 and inserting December 31, 2031 . (c) Effective date The amendments made by this section shall take effect on July 1, 2022. 8 Incentives for Clean Electricity and Clean Transportation 136801. Clean electricity production credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 45BB. Clean electricity production credit (a) Amount of credit (1) In general For purposes of section 38, the clean electricity production credit for any taxable year is an amount equal to the product of— (A) the kilowatt hours of electricity— (i) produced by the taxpayer at a qualified facility, and (ii) (I) sold by the taxpayer to an unrelated person during the taxable year, or (II) in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person, sold, consumed, or stored by the taxpayer during the taxable year, multiplied by (B) the applicable amount with respect to such qualified facility. (2) Applicable amount (A) Base amount Subject to subsection (g)(7), in the case of any qualified facility which is not described in clause (i) of subparagraph (B) and does not satisfy the requirements described in clause (ii) of such subparagraph, the applicable amount shall be 0.3 cents. (B) Alternative amount Subject to subsection (g)(7), in the case of any qualified facility— (i) with a maximum net output of less than 1 megawatt, or (ii) which— (I) satisfies the requirements under paragraph (9) of subsection (g), and (II) with respect to the construction of such facility, satisfies the requirements under paragraph (10) of subsection (g), the applicable amount shall be 1.5 cents. (b) Qualified facility (1) In general (A) Definition Subject to subparagraphs (B), (C), and (D), the term qualified facility means a facility owned by the taxpayer— (i) which is used for the generation of electricity, (ii) the construction of which begins after December 31, 2026, and (iii) for which the greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero. (B) 10-year production credit For purposes of this section, a facility shall only be treated as a qualified facility during the 10-year period beginning on the date the facility was originally placed in service. (C) Expansion of facility; incremental production The term qualified facility shall include either of the following in connection with a facility described in subparagraph (A) (without regard to clause (ii) of such subparagraph) the construction of which begins before January 1, 2027, but only to the extent of the increased amount of electricity produced at the facility by reason of the following: (i) A new unit the construction of which begins after December 31, 2026. (ii) Any additions of capacity the construction of which begins after December 31, 2026. (D) Coordination with other credits The term qualified facility shall not include any facility for which a credit determined under section 45, 45J, 45Q, 48, 48A, or 48F is allowed under section 38 for the taxable year or any prior taxable year. (2) Greenhouse gas emissions rate (A) In general For purposes of this section, the term greenhouse gas emissions rate means the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity, expressed as grams of CO 2 e per KWh. (B) Fuel combustion and gasification In the case of a facility which produces electricity through combustion or gasification, the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility (taking into account lifecycle greenhouse gas emissions, as described in section 211(o)(1)(H) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(H) )) in the production of electricity, expressed as grams of CO 2 e per KWh. (C) Establishment of emissions rates for facilities (i) Publishing emissions rates The Secretary shall annually publish a table that sets forth the greenhouse gas emissions rates for types or categories of facilities, which a taxpayer shall use for purposes of this section. (ii) Provisional emissions rate In the case of any facility for which an emissions rate has not been established by the Secretary, a taxpayer which owns such facility may file a petition with the Secretary for determination of the emissions rate with respect to such facility. (D) Carbon capture and sequestration equipment For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and— (i) pursuant to any regulations established under paragraph (2) of section 45Q(f), disposed of by the taxpayer in secure geological storage, or (ii) utilized by the taxpayer in a manner described in paragraph (5) of such section. (c) Inflation adjustment (1) In general In the case of a calendar year beginning after 2021, the 0.3 cent amount in paragraph (2)(A) of subsection (a) and the 1.5 cent amount in paragraph (2)(B) of such subsection shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale or use of the electricity occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 1.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. (2) Annual computation The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor for such calendar year in accordance with this subsection. (3) Inflation adjustment factor The term inflation adjustment factor means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992. The term GDP implicit price deflator means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year. (d) Credit phase-Out (1) In general The amount of the clean electricity production credit under subsection (a) for any qualified facility the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase-out percentage under paragraph (2). (2) Phase-out percentage The phase-out percentage under this paragraph is equal to— (A) for a facility the construction of which begins during the first calendar year following the applicable year, 100 percent, (B) for a facility the construction of which begins during the second calendar year following the applicable year, 75 percent, (C) for a facility the construction of which begins during the third calendar year following the applicable year, 50 percent, and (D) for a facility the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent. (3) Applicable year For purposes of this subsection, the term applicable year means the later of— (A) the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2021, or (B) 2031. (e) Definitions For purposes of this section: (1) CO 2 e per KWh The term CO 2 e per KWh means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on global warming potential) per kilowatt hour of electricity produced. (2) Greenhouse gas The term greenhouse gas has the same meaning given such term under section 211(o)(1)(G) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(G) ), as in effect on the date of the enactment of this section. (3) Qualified carbon dioxide The term qualified carbon dioxide means carbon dioxide captured from an industrial source which— (A) would otherwise be released into the atmosphere as industrial emission of greenhouse gas, (B) is measured at the source of capture and verified at the point of disposal or utilization, and (C) is captured and disposed or utilized within the United States (within the meaning of section 638(1)) or a possession of the United States (within the meaning of section 638(2)). (f) Guidance Not later than January 1, 2027, the Secretary shall issue guidance regarding implementation of this section, including calculation of greenhouse gas emission rates for qualified facilities and determination of clean electricity production credits under this section. (g) Special rules (1) Only production in the United States taken into account Consumption or sales shall be taken into account under this section only with respect to electricity the production of which is within— (A) the United States (within the meaning of section 638(1)), or (B) a possession of the United States (within the meaning of section 638(2)). (2) Combined heat and power system property (A) In general For purposes of subsection (a)— (i) the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility, and (ii) the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for purposes of determining the greenhouse gas emissions rate for such facility. (B) Combined heat and power system property For purposes of this paragraph, the term combined heat and power system property has the same meaning given such term by section 48(c)(3) (without regard to subparagraphs (A)(iv), (B), and (D) thereof). (C) Conversion from BTU to KWh (i) In general For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of— (I) the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by (II) the heat rate for such facility. (ii) Heat rate For purposes of this subparagraph, the term heat rate means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated. (3) Production attributable to the taxpayer In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. (4) Related persons Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group. (5) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. (6) Allocation of credit to patrons of agricultural cooperative (A) Election to allocate (i) In general In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year. (ii) Form and effect of election An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d). (B) Treatment of organizations and patrons The amount of the credit apportioned to any patrons under subparagraph (A)— (i) shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and (ii) shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment. (C) Special rules for decrease in credits for taxable year If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of— (i) such reduction, over (ii) the amount not apportioned to such patrons under subparagraph (A) for the taxable year, shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. (D) Eligible cooperative defined For purposes of this section, the term eligible cooperative means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers. (7) Increase in credit in certain cases (A) Energy communities In the case of any qualified facility which is located in an energy community (as defined in section 45(b)(11)(B)), for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility during the taxable year, the applicable amount under paragraph (2) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph (without application of subparagraph (B)). (B) Domestic content Rules similar to the rules of section 45(b)(9) shall apply. (8) Credit reduced for tax-exempt bonds Rules similar to the rules of section 45(b)(3) shall apply. (9) Wage requirements Rules similar to the rules of section 45(b)(7)(A) and clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (10) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (11) Domestic content requirement for elective payment Rules similar to the rules of section 45(b)(10) shall apply. . (b) Elective payment of credit Section 6417(b), as amended by preceding provisions of this Act, is amended by adding at the end the following new paragraph: (12) The clean electricity production credit determined under section 45BB(a). . (c) Election Section 6417(c)(3), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: (D) Clean electricity production credit In the case of the credit described in subsection (b)(10), any election under this subsection shall— (i) apply separately with respect to each qualified facility, (ii) be made for the taxable year in which the facility is placed in service, and (iii) shall apply to such taxable year and all subsequent taxable years with respect to such facility. . (d) Conforming amendments (1) Section 38(b) is amended— (A) in paragraph (38), by striking plus at the end, (B) in paragraph (39), by striking the period at the end and inserting , plus , and (C) by adding at the end the following new paragraph: (40) the clean electricity production credit determined under section 45BB(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45BB. Clean electricity production credit. . (e) Effective date The amendments made by this section shall apply to facilities placed in service after December 31, 2022. 136802. Clean electricity investment credit (a) In general Subpart E of part IV of subchapter A of chapter 1 is amended by inserting after section 48E the following new section: 48F. Clean electricity investment credit (a) Investment credit for qualified property (1) In general For purposes of section 46, the clean electricity investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to— (A) any qualified facility, and (B) any grid improvement property. (2) Applicable percentage (A) Qualified facilities Subject to paragraph (3)— (i) Base rate In the case of any qualified facility which is not described in subclause (I) of clause (ii) and does not satisfy the requirements described in subclause (II) of such clause, the applicable percentage shall be 6 percent. (ii) Alternative rate In the case of any qualified facility— (I) with a maximum net output of less than 1 megawatt, or (II) which— (aa) satisfies the requirements of subsection (d)(3), and (bb) with respect to the construction of such facility, satisfies the requirements of subsection (d)(4), the applicable percentage shall be 30 percent. (B) Grid improvement property Subject to paragraph (3)— (i) Base rate In the case of any grid improvement property which is not described in subclause (I) of clause (ii) and does not satisfy the requirements described in subclause (II) of such clause, the applicable percentage shall be 6 percent. (ii) Alternative rate In the case of any grid improvement property— (I) which is energy storage property with a capacity of less than 1 megawatt, or (II) which— (aa) satisfies the requirements of subsection (d)(3), and (bb) with respect to the construction of such property, satisfies rules similar to the rules of section 45(b)(8), the applicable percentage shall be 30 percent. (3) Increase in credit rate in certain cases (A) Energy communities (i) In general In the case of any qualified investment with respect to a qualified facility or with respect to grid improvement property which is placed in service within an energy community (as defined in section 45(b)(11)(B)), for purposes applying paragraph (2) with respect to such property or investment, the applicable percentage shall be increased by the applicable credit rate increase. (ii) Applicable credit rate increase For purposes of clause (i), the applicable credit rate increase shall be an amount equal to— (I) in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(i) or with respect to grid improvement property described in paragraph (2)(B)(i), 2 percentage points, and (II) in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(ii) or with respect to grid improvement property described in paragraph (2)(B)(ii), 10 percentage points. (B) Domestic content Rules similar to the rules of section 48(a)(12) shall apply. (b) Qualified investment with respect to a qualified facility (1) In general For purposes of subsection (a), the qualified investment with respect to any qualified facility for any taxable year is the sum of— (A) the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility, plus (B) the amount of any expenditures which are— (i) paid or incurred by the taxpayer for qualified interconnection property— (I) in connection with a qualified facility which has a maximum net output of not greater than 5 megawatts, and (II) placed in service during the taxable year of the taxpayer, and (ii) properly chargeable to capital account of the taxpayer. (2) Qualified property The term qualified property means property— (A) which is— (i) tangible personal property, or (ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified facility, (B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and (C) (i) the construction, reconstruction, or erection of which is completed by the taxpayer, or (ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer. (3) Qualified facility (A) In general For purposes of this section, the term qualified facility means a facility— (i) which is used for the generation of electricity, (ii) the construction of which begins after December 31, 2026, and (iii) for which the anticipated greenhouse gas emissions rate (as determined under subparagraph (B)(ii)) is not greater than zero. (B) Additional rules (i) Expansion of facility; incremental production Rules similar to the rules of section 45BB(b)(1)(C) shall apply for purposes of this paragraph. (ii) Greenhouse gas emissions rate Rules similar to the rules of section 45BB(b)(2) shall apply for purposes of this paragraph. (C) Exclusion The term qualified facility shall not include any facility for which— (i) a renewable electricity production credit determined under section 45, (ii) an advanced nuclear power facility production credit determined under section 45J, (iii) a carbon oxide sequestration credit determined under section 45Q, (iv) a clean electricity production credit determined under section 45BB, (v) an energy credit determined under section 48, (vi) a qualifying advanced coal project credit under section 48A, or (vii) a qualifying electric transmission property credit under section 48D, is allowed under section 38 for the taxable year or any prior taxable year. (4) Qualified interconnection property For purposes of this paragraph, the term qualified interconnection property has the meaning given such term in section 48(a)(8)(B). (5) Coordination with rehabilitation credit The qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)). (6) Definitions For purposes of this subsection, the terms CO2e per KWh and greenhouse gas emissions rate have the same meaning given such terms under section 45BB(b). (c) Qualified investment with respect to grid improvement property (1) In general (A) Qualified investment For purposes of subsection (a), the qualified investment with respect to grid improvement property for any taxable year is the basis of any grid improvement property placed in service by the taxpayer during such taxable year. (B) Grid improvement property For purposes of this section, the term grid improvement property means any energy storage property. (2) Energy storage property For purposes of this section, the term energy storage property has the meaning given such term in section 48(c)(6). (d) Special rules (1) Certain progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (2) Special rule for property financed by subsidized energy financing or private activity bonds Rules similar to the rules of section 45(b)(3) shall apply. (3) Prevailing wage requirements Rules similar to the rules of section 48(a)(10) shall apply. (4) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. (5) Domestic content requirement for elective payment Rules similar to the rules of section 45(b)(10) shall apply. (e) Credit phase-Out (1) In general The amount of the clean electricity investment credit under subsection (a) for any qualified investment with respect to any qualified facility or grid improvement property the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase-out percentage under paragraph (2). (2) Phase-out percentage The phase-out percentage under this paragraph is equal to— (A) for any qualified investment with respect to any qualified facility or grid improvement property the construction of which begins during the first calendar year following the applicable year, 100 percent, (B) for any qualified investment with respect to any qualified facility or grid improvement property the construction of which begins during the second calendar year following the applicable year, 75 percent, (C) for any qualified investment with respect to any qualified facility or grid improvement property the construction of which begins during the third calendar year following the applicable year, 50 percent, and (D) for any qualified investment with respect to any qualified facility or grid improvement property the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent. (3) Applicable year For purposes of this subsection, the term applicable year has the same meaning given such term in section 45BB(d)(3). (f) Greenhouse gas In this section, the term greenhouse gas has the same meaning given such term under section 45BB(e)(2). (g) Recapture of credit For purposes of section 50, if the Secretary determines that the greenhouse gas emissions rate for a qualified facility is greater than 10 grams of CO 2 e per KWh, any property for which a credit was allowed under this section with respect to such facility shall cease to be investment credit property in the taxable year in which the determination is made. (h) Guidance Not later than January 1, 2027, the Secretary shall issue guidance regarding implementation of this section. . (b) Elective payment of credit Section 6417(b), as amended by preceding provisions of this Act, is amended by adding at the end the following new paragraph: (13) The clean electricity investment credit determined under section 48F. . (c) Conforming amendments (1) Section 46 is amended— (A) by striking and at the end of paragraph (5), (B) by striking the period at the end of paragraph (6) and inserting , and , and (C) by adding at the end the following new paragraph: (7) the clean electricity investment credit. . (2) Section 49(a)(1)(C) is amended— (A) by striking and at the end of clause (iv), (B) by striking the period at the end of clause (v) and inserting a comma, and (C) by adding at the end the following new clauses: (vi) the basis of any qualified property which is part of a qualified facility under section 48F, and (vii) the basis of any energy storage property under section 48F. . (3) Section 50(a)(2)(E) is amended by striking or 48E(c)(1) and inserting 48E(c)(1), or 48F(e) . (4) Section 50(c)(3) is amended by inserting or clean electricity investment credit after In the case of any energy credit . (5) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48E the following new item: 48F. Clean electricity investment credit. . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2026, and, for any property the construction of which begins prior to January 1, 2027, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2026. 136803. Increase in clean electricity investment credit for facilities placed in service in connection with low-income communities (a) In general Section 48F, as added by this Act, is amended by adding at the end the following new subsection: (i) Special rules for certain facilities placed in service in connection with low-income communities (1) In general In the case of any qualified facility with respect to which the Secretary makes an allocation of environmental justice capacity limitation under paragraph (4)— (A) the applicable percentage otherwise determined under subsection (a)(2) with respect to any eligible property which is part of such facility shall be increased by— (i) in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and (ii) in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and (B) the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as— (i) the environmental justice capacity limitation allocated to such facility, bears to (ii) the total megawatt nameplate capacity of such facility, as measured in direct current. (2) Qualified facility For purposes of this subsection— (A) In general The term qualified facility means any facility— (i) which is described in subsection (b)(3)(A) and not described in section 45BB(b)(2)(B), (ii) which has a maximum net output of less than 5 megawatts, and (iii) which— (I) is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 ( 25 U.S.C. 3501(2) )), or (II) is part of a qualified low-income residential building project or a qualified low-income economic benefit project. (B) Qualified low-income residential building project A facility shall be treated as part of a qualified low-income residential building project if— (i) such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 ( 34 U.S.C. 12491(a)(3) ), a Housing Development Fund Corporation cooperative under Article XI of the New York State Private Housing Finance Law, a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103(22) )) or such other affordable housing programs as the Secretary may provide, and (ii) the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building. (C) Qualified low-income economic benefit project A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of— (i) less than 200 percent of the poverty line applicable to a family of the size involved, or (ii) less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). (D) Financial benefit For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit. (3) Eligible property For purposes of this section, the term eligible property means a qualified investment with respect to any qualified facility which is described in subsection (b). (4) Allocations (A) In general Not later than January 1, 2027, the Secretary shall establish a program to allocate amounts of environmental justice capacity limitation to qualified facilities. (B) Limitation The amount of environmental justice capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. (C) Annual capacity limitation For purposes of this paragraph, the term annual capacity limitation means 1.8 gigawatts of direct current capacity for each of calendar years 2027 through 2031, and zero thereafter. (D) Carryover of unused limitation (i) In general If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2033. (ii) Carryover from section 48 for calendar year 2027 If the annual capacity limitation for calendar year 2026 under section 48(e)(4)(D) exceeds the aggregate amount allocated for such year under section 48(e)(4)(D), such excess amount may be carried over and applied to the annual capacity limitation under this subsection for calendar year 2027. Such limitation shall be increased by the amount of such excess. (E) Placed in service deadline (i) In general Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part. (ii) Application of carryover Any amount of environmental justice capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph. (F) Selection criteria In determining to which qualified facilities to allocate environmental justice capacity limitation under this paragraph, the Secretary shall take into consideration which facilities will result in— (i) the greatest health and economic benefits, including the ability to withstand extreme weather events, for individuals described in section 45D(e)(2), (ii) the greatest employment and wages for such individuals, and (iii) the greatest engagement with, outreach to, or ownership by, such individuals, including through partnerships with local governments, community-based organizations, an Indian tribal government (as defined in section 48(e)(4)(F)(ii)), or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ). (G) Disclosure of allocations The Secretary shall, upon making an allocation of environmental justice capacity limitation under this paragraph, publicly disclose the identity of the applicant, the amount of the environmental justice capacity limitation allocated to such applicant, and the location of the facility for which such allocation is made. (5) Recapture The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility. . (b) Effective date The amendments made by this section shall take effect on January 1, 2027. 136804. Cost recovery for qualified facilities, qualified property, and grid improvement property (a) In general Section 168(e)(3)(B) is amended— (1) in clause (vi)(III), by striking and at the end, (2) in clause (vii), by striking the period at the end and inserting , and , and (3) by inserting after clause (vii) the following: (viii) any qualified facility (as defined in section 45BB(b)(1)(A)), any qualified property (as defined in subsection (b)(2) of section 48F) which is a qualified investment (as defined in subsection (b)(1) of such section), or any grid improvement property (as defined in subsection (c)(1)(B) of such section). . (b) Effective date The amendments made by this section shall apply to facilities and property placed in service after December 31, 2026. 136805. Clean fuel production credit (a) In general Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 45CC. Clean fuel production credit (a) Amount of credit (1) In general For purposes of section 38, the clean fuel production credit for any taxable year is an amount equal to the product of— (A) the applicable amount per gallon (or gallon equivalent) with respect to any transportation fuel which is— (i) produced by the taxpayer at a qualified facility, and (ii) sold by the taxpayer in a manner described in paragraph (4) during the taxable year, and (B) the emissions factor for such fuel (as determined under subsection (b)). (2) Applicable amount (A) Base amount In the case of any transportation fuel produced at a qualified facility which does not satisfy the requirements described in subparagraph (B), the applicable amount shall be 20 cents. (B) Alternative amount In the case of any transportation fuel produced at a qualified facility which satisfies the requirements under paragraphs (6) and (7) of subsection (g), the applicable amount shall be $1.00. (3) Special rate for sustainable aviation fuel (A) In general In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied— (i) in the case of a transportation fuel produced at a qualified facility described in paragraph (2)(A), by substituting 35 cents for 20 cents , and (ii) in the case of a transportation fuel produced at a qualified facility described in paragraph (2)(B), by substituting $1.75 for $1.00 . (B) Sustainable aviation fuel For purposes of this subparagraph (A), the term sustainable aviation fuel means liquid fuel which is sold for use in an aircraft and which— (i) meets the requirements of— (I) ASTM International Standard D7566, or (II) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and (ii) is not derived from palm fatty acid distillates or petroleum. (4) Sale For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person— (A) for use by such person in the production of a fuel mixture, (B) for use by such person in a trade or business, or (C) who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person. (5) Rounding If any amount determined under paragraph (1) is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. (b) Emissions factors (1) Emissions factor (A) Calculation (i) In general The emissions factor of a transportation fuel shall be an amount equal to the quotient of— (I) an amount equal to— (aa) 50 kilograms of CO 2 e per mmBTU, minus (bb) the emissions rate for such fuel, divided by (II) 50 kilograms of CO 2 e per mmBTU. (B) Establishment of emissions rate (i) In general Subject to clauses (ii) and (iii), the Secretary shall annually publish a table which sets forth the emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions (as described in section 211(o)(1)(H) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(H) ), as in effect on the date of the enactment of this section) for such fuels, expressed as kilograms of CO 2 e per mmBTU, which a taxpayer shall use for purposes of this section. (ii) Non-aviation fuel In the case of any transportation fuel which is not a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by Argonne National Laboratory, or a successor model (as determined by the Secretary). (iii) Aviation fuel In the case of any transportation fuel which is a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be determined in accordance with— (I) the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or (II) any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(H) ). (C) Rounding of emissions rate The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO 2 e per mmBTU, except that, in the case of an emissions rate that is less than 2.5 kilograms of CO 2 e per mmBTU, the Secretary may round such rate to zero. (D) Provisional emissions rate In the case of any transportation fuel for which an emissions rate has not been established under subparagraph (B), a taxpayer producing such fuel may file a petition with the Secretary for determination of the emissions rate with respect to such fuel. (2) Rounding If any amount determined under paragraph (1)(A) is not a multiple of 0.1, such amount shall be rounded to the nearest multiple of 0.1. (c) Inflation adjustment (1) In general In the case of calendar years beginning after 2026, the 20 cent amount in subsection (a)(2)(A), the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii) shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale of the transportation fuel occurs. If any amount as increased under the preceding sentence is not a multiple of 1 cent, such amount shall be rounded to the nearest multiple of 1 cent. (2) Inflation adjustment factor For purposes of paragraph (1), the inflation adjustment factor shall be the inflation adjustment factor determined and published by the Secretary pursuant to section 45BB(c), determined by substituting calendar year 2021 for calendar year 1992 in paragraph (3) thereof. (d) Credit phase-Out (1) In general The amount of the clean fuel production credit under subsection (a) for any transportation fuel sold during a taxable year described in paragraph (2) shall be equal to the product of— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase-out percentage under paragraph (2). (2) Phase-out percentage The phase-out percentage under this paragraph is equal to— (A) for any taxable year beginning in the first calendar year following the applicable year, 100 percent, (B) for any taxable year beginning in the second calendar year following the applicable year, 75 percent, (C) for any taxable year beginning in the third calendar year following the applicable year, 50 percent, and (D) for any taxable year beginning in any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent. (3) Applicable year For purposes of this subsection, the term applicable year means the later of— (A) the calendar year in which the Secretary determines that the greenhouse gas emissions from the transportation of persons and goods annually in the United States are equal to or less than 25 percent of the greenhouse gas emissions from the transportation of persons and goods in the United States during calendar year 2021, or (B) 2031. (e) Definitions In this section: (1) mm BTU The term mmBTU means 1,000,000 British thermal units. (2) CO 2 e The term CO 2 e means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential). (3) Greenhouse gas The term greenhouse gas has the same meaning given that term under section 211(o)(1)(G) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(G) ), as in effect on the date of the enactment of this section. (4) Qualified facility The term qualified facility — (A) means a facility used for the production of transportation fuels, and (B) does not include any facility for which one of the following credits is allowed under section 38 for the taxable year: (i) The credit for production of clean hydrogen under section 45X. (ii) The credit for clean hydrogen production facilities under section 48(a)(16). (iii) The credit for carbon oxide sequestration under section 45Q. (5) Transportation fuel The term transportation fuel means a fuel which— (A) is suitable for use as a fuel in a highway vehicle or aircraft, (B) has an emissions rate which is not greater than— (i) in the case of a fuel which is not a sustainable aviation fuel— (I) for any such fuel sold during calendar years 2027 through 2030, 50 kilograms of CO 2 e per mmBTU, and (II) for any such fuel sold during any calendar year beginning after December 31, 2030, 25 kilograms of CO 2 e per mmBTU, or (ii) in the case of a fuel which is a sustainable aviation fuel— (I) for any such fuel sold during any period before January 1, 2031, 35 kilograms of CO 2 e per mmBTU, and (II) for any such fuel sold during any period after December 31, 2030, 25 kilograms of CO 2 e per mmBTU, (C) is not hydrogen fuel, and (D) in the case of fuel which is not aviation fuel, is not derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term biomass has the meaning given such term in section 45K(c)(3). (f) Guidance Not later than January 1, 2027, the Secretary shall issue guidance regarding implementation of this section, including calculation of emissions factors for transportation fuel, the table described in subsection (b)(1)(B)(i), and the determination of clean fuel production credits under this section. (g) Special rules (1) Only registered production in the United States taken into account (A) In general No clean fuel production credit shall be determined under subsection (a) with respect to any transportation fuel unless— (i) the taxpayer is registered as a producer of clean fuel under section 4101 at the time of production, and (ii) such fuel is produced in the United States. (B) United States For purposes of this paragraph, the term United States includes any possession of the United States. (2) Production attributable to the taxpayer In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. (3) Related persons Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group. (4) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. (5) Allocation of credit to patrons of agricultural cooperative (A) Election to allocate (i) In general In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year. (ii) Form and effect of election An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d). (B) Treatment of organizations and patrons The amount of the credit apportioned to any patrons under subparagraph (A)— (i) shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and (ii) shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment. (C) Special rules for decrease in credits for taxable year If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of— (i) such reduction, over (ii) the amount not apportioned to such patrons under subparagraph (A) for the taxable year, shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. (D) Eligible cooperative defined For purposes of this section the term eligible cooperative means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers. (6) Prevailing wage requirements (A) In general Subject to subparagraph (B), rules similar to the rules of section 45(b)(7)(A) and clauses (i) through (iv) of section 45(b)(7)(B) shall apply. (B) Special rule for facilities placed in service before January 1, 2027 In the case of any qualified facility placed in service before January 1, 2027— (i) the rules of clause (i) of section 45(b)(7)(A) shall not apply, and (ii) clause (ii) of such section shall be applied by substituting for any period of the taxable year beginning after December 31, 2026 for which the credit is claimed under this section with respect to production of transportation fuel, the alteration or repair of such facility for for the period of the taxable year which is within the 10-year period beginning on the date the facility was originally placed in service, the alteration or repair of such facility . (7) Apprenticeship requirements Rules similar to the rules of section 45(b)(8) shall apply. . (b) Elective payment of credit Section 6417(b), as amended by preceding provisions of this Act, is amended by adding at the end the following new paragraph: (14) The clean fuel production credit determined under section 45CC(a). . (c) Conforming amendments (1) Section 38(b), as amended by section 101, is amended— (A) in paragraph (39), by striking plus at the end, (B) in paragraph (40), by striking the period at the end and inserting , plus , and (C) by adding at the end the following new paragraph: (41) the clean fuel production credit determined under section 45CC(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by section 101, is amended by adding at the end the following new item: Sec. 45CC. Clean fuel production credit. . (3) Section 4101(a)(1) is amended by inserting every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45CC), after section 6426(b)(4)(A)), . (d) Effective date The amendments made by this section shall apply to transportation fuel produced after December 31, 2026. 9 Appropriations 136901. Appropriations Immediately upon the enactment of this Act, in addition to amounts otherwise available, there are appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,073,433,000 to remain available until September 30, 2031, for necessary expenses for the Internal Revenue Service to carry out this subtitle (and the amendments made by this subtitle), which shall supplement and not supplant any other appropriations that may be available for this purpose. G Social Safety Net 137001. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 1 Child tax credit 137101. Modifications applicable beginning in 2021 (a) Safe harbor exception for fraud and intentional disregard of rules and regulations Section 24(j)(2)(B) is amended— (1) by striking qualified each place it appears in clause (iv)(II) and inserting qualifying , and (2) by adding at the end the following new clause: (v) Exception for fraud and intentional disregard of rules and regulations (I) In general For purposes of determining the safe harbor amount under clause (iv) with respect to any taxpayer, an individual shall not be treated as taken into account in determining the annual advance amount of such taxpayer if the Secretary determines that such individual was so taken into account due to fraud by the taxpayer or intentional disregard of rules and regulations by the taxpayer. (II) Arrangements to take individual into account more than once For purposes of subclause (I), a taxpayer shall not fail to be treated as intentionally disregarding rules and regulations with respect to any individual taken into account in determining the annual advance amount of such taxpayer if such taxpayer entered into a plan or other arrangement with, or expected, another taxpayer to take such individual into account in determining the credit allowed under this section for the taxable year. . (b) Rules relating to reconciliation of credit and advance credit Section 24(j) is amended by adding at the end the following new paragraphs: (3) Joint returns Except as otherwise provided by the Secretary, in the case of an advance payment made under section 7527A with respect to a joint return, half of such payment shall be treated as having been made to each individual filing such return. (4) Coordination with possessions of the United States For purposes of this subsection, payments made under section 7527A include payments made by any jurisdiction other than the United States under section 7527A of the income tax law of such jurisdiction, and advance payments made by American Samoa pursuant to a plan described in subsection (k)(3)(B). In carrying out this section, the Secretary shall coordinate with each possession of the United States to prevent any application of this paragraph that is inconsistent with the purposes of this subsection. . (c) Annual advance amount Section 7527A(b) is amended— (1) in paragraph (1)— (A) in subparagraph (A), by inserting or based on any other information known to the Secretary after reference taxable year , (B) in subparagraph (C), by inserting unless determined by the Secretary based on any information known to the Secretary, before the only children , and (C) in subparagraph (D), by inserting unless determined by the Secretary based on any information known to the Secretary, before the ages of , and (2) in paragraph (3)(A)(ii), by striking provided by the taxpayer and inserting provided, or known, . (d) Disclosure of information relating to joint filers and advance payment of child tax credit Section 6103(e) is amended by adding at the end the following new paragraph: (12) Disclosure of information relating to joint filers and advance payment of child tax credit In the case of an individual to whom the Secretary makes payments under section 7527A, if the reference taxable year (as defined in section 7527A(b)(2)) that the Secretary uses to calculate such payments is a year for which the individual filed an income tax return jointly with another individual, the Secretary may disclose to such individual any return information of such other individual which is relevant in determining the payment under section 7527A and the individual’s eligibility for such payment, including information regarding any of the following: (A) The number of specified children, including by reason of the birth of a child. (B) The name and TIN of specified children. (C) Marital status. (D) Modified adjusted gross income. (E) Principal place of abode. (F) Any other factor which the Secretary may provide pursuant to section 7527A(c). . (e) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning, and payments made, after December 31, 2020. (2) Disclosure of information relating to joint filers and advance payment of child tax credit The amendment made by subsection (d) shall take effect on the date of the enactment of this Act. 137102. Extensions and modifications applicable beginning in 2022 (a) Extensions (1) Extension of child tax credit Section 24(i) is amended— (A) by striking January 1, 2022 in the matter preceding paragraph (1) and inserting January 1, 2023 , and (B) by inserting and 2022 after 2021 in the heading thereof. (2) Extension of provisions related to possessions of the United States (A) Section 24(k)(2)(B) is amended— (i) by striking December 31, 2021 in the matter preceding clause (i) and inserting December 31, 2022 , and (ii) by striking after 2021 in the heading thereof and inserting after 2022 . (B) Section 24(k)(3)(C)(ii) is amended— (i) in subclause (I), by inserting or 2022 after 2021 , and (ii) in subclause (II), by striking December 31, 2021 and inserting December 31, 2022 . (C) The heading of section 24(k)(2)(A) is amended by inserting and 2022 after 2021 . (b) Extension and modification of advance payment (1) In general Section 7527A is amended— (A) in subsection (b)(1), by striking 50 percent of , (B) in clauses (i) and (ii) of subsection (e)(4)(C), by inserting or 2022 after in 2021 , and (C) in subsection (f), by striking December 31, 2021 and inserting December 31, 2022 . (2) Monthly payments (A) In general Section 7527A(a) is amended to read as follows: (a) In general The Secretary shall establish a program for making monthly payments to taxpayers in amounts equal to 1/12 of the annual advance amount with respect to such taxpayer. . (B) Modifications during calendar year Section 7527A(b)(3), as amended by the preceding provisions of this Act, is amended— (i) by amending subparagraph (A)(ii) to read as follows: (ii) any other information provided, or known, to the Secretary which allows the Secretary to more accurately estimate the amount treated as allowed under subpart C of part IV of subchapter A of chapter 1 by reason of section 24(i)(1) with respect to the taxpayer for the reference taxable year. , and (ii) in subparagraph (B), by striking periodic payment both places it appears and inserting monthly payment . (C) Conforming amendment Section 7527A(c)(2) is amended by striking subsection (b)(3)(B) and inserting subsection (b)(3) . (3) Eligibility for advance payments limited based on modified adjusted gross income Section 7527A(b) is amended by adding at the end the following new paragraph: (6) Limitation based on modified adjusted gross income (A) In general If the modified adjusted gross income of the taxpayer for the reference taxable year exceeds the applicable threshold amount with respect to such taxpayer (as defined in section 24(i)(4)(B)), the annual advance amount with respect to such taxpayer shall be zero. (B) Exception for modifications made during the calendar year Subparagraph (A) shall not apply to a reference taxable year taken into account by reason of paragraph (3)(A)(i) or subsection (c) if the taxpayer received one or more payments under subsection (a) for months in the calendar year which precede the month for which such reference taxable year will be taken into account. . (4) Advance payments to Puerto Rico residents for 2022 Section 7527A(e)(4) is amended— (A) in subparagraph (A), by striking The advance and inserting Except as provided in subparagraph (D), the advance , and (B) by adding at the end the following new subparagraph: (D) Advance payments to Puerto Rico residents for 2022 For the period beginning on July 1, 2022, and ending on December 31, 2022, the Secretary may apply this section without regard to subparagraph (A)(i). . (c) Election to apply income phaseout on basis of income from the preceding taxable year Section 24(i) is amended by adding at the end the following new paragraph: (5) Election to apply income phaseout on basis of income from the preceding taxable year In the case of a taxpayer who elects (at such time and in such manner as the Secretary may provide) the application of this paragraph for any taxable year, paragraph (4) and subsection (b)(1) shall both be applied with respect to the modified adjusted gross income (as defined in subsection (b)) for the taxpayer’s preceding taxable year. . (d) Modification of recapture safe harbor for 2022 Section 24(j)(2)(B)(iv), as amended by the preceding provisions of this Act, is amended to read as follows: (iv) Safe harbor amount For purposes of this subparagraph, the term safe harbor amount means, with respect to any taxpayer for any taxable year, the sum of— (I) an amount equal to the product of $3,600 multiplied by the excess (if any) of the number of qualifying children who have not attained age 6 as of the close of the calendar year in which the taxable year of the taxpayer begins, and who are taken into account in determining the annual advance amount with respect to the taxpayer under section 7527A with respect to months beginning in such taxable year, over the number of such qualifying children taken into account in determining the credit allowed under this section for such taxable year, plus (II) an amount equal to the product of $3,000 multiplied by the excess (if any) of the number of qualifying children not described in clause (I), and who are taken into account in determining the annual advance amount with respect to the taxpayer under section 7527A with respect to months beginning in such taxable year, over the number of such qualifying children taken into account in determining the credit allowed under this section for such taxable year. . (e) Repeal of social security number requirement (1) In general Section 24(h) is amended by striking paragraph (7). (2) Conforming amendments (A) Section 24(h)(1) is amended by striking paragraphs (2) through (7) and inserting paragraphs (2) through (6) . (B) Section 24(h)(4) is amended by striking subparagraph (C). (f) Effective date The amendments made by this section shall apply to taxable years beginning, and payments made, after December 31, 2021. 137103. Refundable child tax credit after 2022 (a) In general Section 24 is amended by adding at the end the following new subsection: (l) Refundable credit after 2022 In the case of any taxable year beginning after December 31, 2022, if the taxpayer (in the case of a joint return, either spouse) has a principal place of abode in the United States (determined as provided in section 32) for more than one-half of the taxable year or is a bona fide resident of Puerto Rico (within the meaning of section 937(a)) for such taxable year— (1) subsection (d) shall not apply, and (2) so much of the credit determined under subsection (a) (after application of paragraph (1)) as does not exceed the amount of such credit which would be so determined without regard to subsection (h)(4) shall be allowed under subpart C (and not allowed under this subpart) . (b) Conforming amendments related to possessions of the United States (1) Puerto Rico Section 24(k)(2)(B), as amended by the preceding provisions of this Act, is amended to read as follows: (B) Application to taxable years after 2022 For application of refundable credit to residents of Puerto Rico for taxable years after 2022, see subsection (l). . (2) American Samoa Section 24(k)(3)(C)(ii)(II), as amended by the preceding provisions of this Act, is amended to read as follows: (II) if such taxable year begins after December 31, 2022, subsection (l) shall be applied by substituting Puerto Rico or American Samoa for Puerto Rico . . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 137104. Appropriations Immediately upon the enactment of this Act, in addition to amounts otherwise available, there are appropriated out of any money in the Treasury not otherwise appropriated: (1) $3,963,300,000 to remain available until September 30, 2026, for necessary expenses for the Internal Revenue Service to administer the Child Tax Credit, and advance payments of the Child Tax Credit, including the costs of disbursing such payments, which shall supplement and not supplant any other appropriations that may be available for this purpose, and (2) $1,000,000,000 is appropriated to the Department of the Treasury, to remain available until September 30, 2026, to support efforts to increase enrollment of eligible families in the Child Tax Credit, for advance payments of the Child Tax Credit, and for other tax benefits, including but not limited to program outreach, costs of data sharing arrangements, systems changes, forms changes, and related efforts, and efforts to support the cross-enrollment of beneficiaries of other programs in the Child Tax Credit, and for advance payments of the Child Tax Credit, including by establishing intergovernmental cooperative agreements with states and local governments, the District of Columbia, tribal governments, and possessions of the United States: Provided, that such amount shall be available in addition to any amounts otherwise available: Provided further, that these funds may be awarded by federal agencies to state and local governments, the District of Columbia, tribal governments, and possessions of the United States, and private entities, including organizations dedicated to free tax return preparation and low income taxpayer clinics funded under section 7526 of the Internal Revenue Code of 1986. 2 Earned Income Tax Credit 137201. Certain improvements to the earned income tax credit extended through 2022 (a) In general Section 32(n) is amended by striking January 1, 2022 and inserting January 1, 2023 . (b) Inflation adjustment Section 32(n)(4)(B) is amended to read as follows: (B) Inflation adjustment In the case of any taxable year beginning after 2021, the $9,820 and $11,610 dollar amounts in subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2020 for calendar year 2016 in subparagraph (A)(ii) thereof. . (c) Election to determine earned income based on prior taxable year Section 32, as amended by subsection (f), is amended by adding at the end the following new subsection: (o) Election to determine earned income based on prior taxable year (1) In general In the case of a taxpayer whose earned income for any taxable year beginning after December 31, 2021, and before January 1, 2023, is less than the earned income of such taxpayer for the preceding taxable year, if such taxpayer elects (at such time and in such manner as the Secretary may provide) the application of this subsection for such taxable year, the earned income of such taxpayer for such taxable year shall be treated for purposes of this section as being equal to the earned income of such taxpayer for such preceding taxable year. (2) Joint returns For purposes of this subsection, in the case of a joint return, the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for the preceding taxable year. (3) Treatment as mathematical or clerical error In the case of a taxpayer described in paragraph (1) who makes the election described in such paragraph, the use on the return for purposes of this section of an amount of earned income for the preceding taxable year which differs from the amount of such earned income as shown in the electronic files of the Internal Revenue Service shall be treated as a mathematical or clerical error for purposes of section 6213. (4) Treatment of references Any provision of this title which defines or determines earned income by reference to this section shall be applied without regard to this subsection unless such provision specifically provides otherwise. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 137202. Funds for administration of earned income tax credits in the territories (a) Puerto Rico Section 7530(a)(1) is amended by striking plus at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , plus , and by adding at the end the following new subparagraph: (C) reasonable administrative costs associated with the provision of the earned income tax credit not in excess of $4,000,000. . (b) Possessions with mirror code tax systems Section 7530(b)(1) is amended by striking plus at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , plus , and by adding at the end the following new subparagraph: (C) reasonable administrative costs associated with the provision of the earned income tax credit not in excess of $200,000. . (c) American Samoa Section 7530(c)(1) is amended by striking plus at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , plus , and by adding at the end the following new subparagraph: (C) reasonable administrative costs associated with the provision of the earned income tax credit not in excess of $200,000. . (d) Effective date The amendments made by this section shall apply to payments made for calendar years beginning after December 31, 2021. 3 Expanding Access to Health Coverage and Lowering Costs 137301. Improve affordability and reduce premium costs of health insurance for consumers (a) In general Section 36B(b)(3)(A)(iii) is amended— (1) by striking all that precedes the table contained therein and inserting the following: (iii) Determining percentages for 2021 through 2026 (I) In general In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026, the following table shall be applied in lieu of the table contained in clause (i): , and (2) by adding at the end the following new subclause: (II) Indexing In the case of a taxable year beginning after December 31, 2020, and before January 1, 2027, clause (ii) shall not apply for purposes of adjusting premium percentages under this subparagraph. . (b) Extension through 2025 of rule to allow credit to taxpayers whose household income exceeds 400 percent of the poverty line Section 36B(c)(1)(E) is amended— (1) by striking in 2021 or 2022 and inserting after December 31, 2020, and before January 1, 2026 , and (2) by striking and 2022 in the heading thereof and inserting through 2025 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 137302. Modification of employer-sponsored coverage affordability test in health insurance premium tax credit (a) In general Section 36B(c)(2)(C)(i)(II) is amended by inserting (8.5 percent in the case of any taxable year beginning after December 31, 2021, and before January 1, 2026) after 9.5 percent . (b) Qualified small employer health reimbursement arrangements Section 36B(c)(4)(C)(ii) is amended by inserting (8.5 percent in the case of any taxable year beginning after December 31, 2021, and before January 1, 2026) after 9.5 percent . (c) Percentages temporarily determined without regard to adjustments (1) Section 36B(c)(2)(C)(iv) is amended by adding at the end the following: The preceding sentence shall not apply in the case of any plan year beginning after December 31, 2021, and before January 1, 2027. . (2) Section 36B(c)(4)(F) is amended by adding at the end the following: The preceding sentence shall not apply in the case of any plan year beginning after December 31, 2021, and before January 1, 2027. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 137303. Treatment of lump-sum social security benefits in determining household income (a) In general Section 36B(d)(2) is amended by adding at the end the following new subparagraph: (C) Exclusion of portion of lump-sum social security benefits (i) In general The term modified adjusted gross income shall not include so much of any lump-sum social security benefit payment as is attributable to months ending before the beginning of the taxable year. (ii) Lump-sum social security benefit payment For purposes of this subparagraph, the term lump-sum social security benefit payment means any payment of social security benefits (as defined in section 86(d)(1)) which constitutes more than 1 month of such benefits. (iii) Election to include excludable amount With respect to any taxable year beginning after December 31, 2025, a taxpayer may elect (at such time and in such manner as the Secretary may provide) to have this subparagraph not apply for such taxable year. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 137304. Temporary expansion of health insurance premium tax credits for certain low-income populations (a) In general Section 36B is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Certain temporary rules beginning in 2022 With respect to any taxable year beginning after December 31, 2021, and before January 1, 2026— (1) Eligibility for credit not limited based on income Section 36B(c)(1)(A) shall be disregarded in determining whether a taxpayer is an applicable taxpayer. (2) Credit allowed to certain low-income employees offered employer-provided coverage Subclause (II) of subsection (c)(2)(C)(i) shall not apply if the taxpayer’s household income does not exceed 138 percent of the poverty line for a family of the size involved. Subclause (II) of subsection (c)(2)(C)(i) shall also not apply to an individual described in the last sentence of such subsection if the taxpayer’s household income does not exceed 138 percent of the poverty line for a family of the size involved. (3) Credit allowed to certain low-income employees offered qualified small employer health reimbursement arrangements A qualified small employer health reimbursement arrangement shall not be treated as constituting affordable coverage for an employee (or any spouse or dependent of such employee) for any months of a taxable year if the employee’s household income for such taxable year does not exceed 138 percent of the poverty line for a family of the size involved. (4) Limitations on recapture (A) In general In the case of a taxpayer whose household income is less than 200 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subsection (f)(2)(A) shall in no event exceed $300 (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year). (B) Limitation on increase for certain non-filers In the case of any taxpayer who would not be required to file a return of tax for the taxable year but for any requirement to reconcile advance credit payments under subsection (f), if an Exchange established under title I of the Patient Protection and Affordable Care Act has determined that— (i) such taxpayer is eligible for advance payments under section 1412 of such Act for any portion of such taxable year, and (ii) such taxpayer’s household income for such taxable year is projected to not exceed 138 percent of the poverty line for a family of the size involved, subsection (f)(2)(A) shall not apply to such taxpayer for such taxable year and such taxpayer shall not be required to file such return of tax. (C) Information provided by Exchange The information required to be provided by an Exchange to the Secretary and to the taxpayer under subsection (f)(3) shall include such information as is necessary to determine whether such Exchange has made the determinations described in clauses (i) and (ii) of subparagraph (B) with respect to such taxpayer. . (b) Employer shared responsibility provision not applicable with respect to certain low-income taxpayers receiving premium assistance Section 4980H(c)(3) is amended to read as follows: (3) Applicable premium tax credit and cost-sharing reduction (A) In general The term applicable premium tax credit and cost-sharing reduction means— (i) any premium tax credit allowed under section 36B, (ii) any cost-sharing reduction under section 1402 of the Patient Protection and Affordable Care Act, and (iii) any advance payment of such credit or reduction under section 1412 of such Act. (B) Exception with respect to certain low-income taxpayers Such term shall not include any premium tax credit, cost-sharing reduction, or advance payment otherwise described in subparagraph (A) if such credit, reduction, or payment is allowed or paid for a taxable year of an employee (beginning after December 31, 2021, and before January 1, 2026) with respect to which— (i) an Exchange established under title I of the Patient Protection and Affordable Care Act has determined that such employee’s household income for such taxable year is projected to not exceed 138 percent of the poverty line for a family of the size involved, or (ii) such employee’s household income for such taxable year does not exceed 138 percent of the poverty line for a family of the size involved. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 137305. Special rule for individuals receiving unemployment compensation (a) Extension Section 36B(g)(1) is amended by striking during 2021, and inserting after December 31, 2020, and before January 1, 2023, . (b) Modification of income not taken into account Section 36B(g)(1)(B) is amended by striking 133 percent and inserting 150 percent (133 percent in the case of any week beginning during 2021) . (c) Conforming amendment Section 36B(g) by inserting through 2022 after 2021 in the heading thereof. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 137306. Permanent credit for health insurance costs (a) In general Subparagraph (B) of section 35(b)(1) of the Internal Revenue Code of 1986 is amended by striking , and before January 1, 2022 and inserting a period. (b) Increase in credit percentage Subsection (a) of section 35 of the Internal Revenue Code of 1986 is amended by striking 72.5 percent and inserting 80 percent . (c) Conforming amendments Subsections (b) and (e)(1) of section 7527 of the Internal Revenue Code of 1986 are each amended by striking 72.5 percent and inserting 80 percent . (d) Effective date The amendments made by this section shall apply to coverage months beginning after December 31, 2021. 137307. Exclusion of certain dependent income for purposes of premium tax credit (a) In general Paragraph (2) of section 36B(d) of the Internal Revenue Code of 1986, as amended by this Act, is further amended by adding at the end the following new subparagraph: (D) Exception for certain dependent income (i) In general Solely for purposes of determining the credit under this section and eligibility for cost sharing reductions under section 1402 of the Patient Protection and Affordable Care Act, and not for any other purpose (including any determination of income for purposes of the programs established under titles XIX and XXI of the Social Security Act and section 1331 of the Patient Protection and Affordable Care Act), there shall not be taken into account under subparagraph (A)(ii) the modified adjusted gross income of any dependent of the taxpayer who has not attained age 24 as of the last day of the calendar year in which the taxable year of the taxpayer begins. (ii) Limitation Clause (i) shall not apply to so much of the aggregate of the modified adjusted gross income of all dependents of the taxpayer who have not attained the age described in such clause as exceeds $3,500. (iii) Election to have subparagraph not apply In the case of any taxable year beginning after December 31, 2025, a taxpayer may elect (at such time and in such manner as the Secretary may provide) to have this subparagraph not apply with respect to the income of any dependent of the taxpayer for such taxable year. (iv) Adjustment for inflation In the case of any taxable year beginning after December 31, 2023, the $3,500 amount in clause (ii) shall be increased by an amount equal to— (I) such amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (v) Termination This subparagraph shall not apply to taxable years beginning after December 31, 2026. . (b) Conforming amendments (1) Clause (ii) of section 36B(d)(2)(A) of the Internal Revenue Code of 1986 is amended by inserting , except as provided in subparagraph (D), after individuals . (2) Paragraph (3) of section 1411(b) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18081 ) is amended by adding at the end the following new subparagraph: (D) Information regarding certain dependents In the case of taxable years beginning before January 1, 2027, information regarding whether section 36B(d)(2)(D) will apply to any individuals taken into account as members of the household of the enrollee, and the amount of income of each such individual for the taxable year described in subparagraph (A). . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 137308. Requirements with respect to cost-sharing for certain insulin products (a) In general Subchapter B of chapter 100 is amended by adding at the end the following new section: 9826. Requirements with respect to cost-sharing for certain insulin products (a) In general For plan years beginning on or after January 1, 2023, a group health plan shall provide coverage of selected insulin products, and with respect to such products, shall not— (1) apply any deductible; or (2) impose any cost-sharing in excess of the lesser of, per 30-day supply— (A) $35; or (B) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan, including price concessions received by or on behalf of third-party entities providing services to the plan, such as pharmacy benefit management services. (b) Definitions In this section: (1) Selected insulin products The term selected insulin products means at least one of each dosage form (such as vial, pump, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed) of insulin (as defined below), when available, as selected by the group health plan. (2) Insulin defined The term insulin means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act ( 42 U.S.C. 262 ) and continues to be marketed under such section, including any insulin product that has been deemed to be licensed under section 351(a) of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 ( Public Law 111–148 ) and continues to be marketed pursuant to such licensure. (c) Out-of-network providers Nothing in this section requires a plan that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of-network provider. (d) Rule of construction Subsection (a) shall not be construed to require coverage of, or prevent a group health plan from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. (e) Application of cost-sharing towards deductibles and out-of-pocket maximums Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan. . (b) Clerical amendment The table of sections for subchapter B of chapter 100 is amended by adding at the end the following new item: Sec. 9826. Requirements with respect to cost-sharing for certain insulin products. . 137309. Oversight of pharmacy benefit manager services (a) In general Subchapter B of chapter 100 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is further amended by adding at the end the following: 9827. Oversight of pharmacy benefit manager services (a) In general For plan years beginning on or after January 1, 2023, a group health plan or an entity or subsidiary providing pharmacy benefits management services on behalf of such a plan shall not enter into a contract with a drug manufacturer, distributor, wholesaler, subcontractor, rebate aggregator, or any associated third party that limits the disclosure of information to plan sponsors in such a manner that prevents the plan, or an entity or subsidiary providing pharmacy benefits management services on behalf of a plan, from making the reports described in subsection (b). (b) Reports (1) In general For plan years beginning on or after January 1, 2023, not less frequently than once every 6 months, an entity providing pharmacy benefits management services on behalf of a group health plan shall submit to the plan sponsor (as defined in section 3(16)(B) of the Employee Retirement Income Security Act of 1974) of such group health plan a report in accordance with this subsection and make such report available to the plan sponsor in a machine-readable format. Each such report shall include, with respect to the applicable group health plan— (A) as applicable, information collected from drug manufacturers by such entity on the total amount of copayment assistance dollars paid, or copayment cards applied, that were funded by the drug manufacturer with respect to the participants and beneficiaries in such plan; (B) a list of each drug covered by such plan or entity providing pharmacy benefit management services that was dispensed during the reporting period, including, with respect to each such drug during the reporting period— (i) the brand name, chemical entity, and National Drug Code; (ii) the number of participants and beneficiaries for whom the drug was filled during the plan year, the total number of prescription fills for the drug (including original prescriptions and refills), and the total number of dosage units of the drug dispensed across the plan year, including whether the dispensing channel was by retail, mail order, or specialty pharmacy; (iii) the wholesale acquisition cost, listed as cost per days supply and cost per pill, or in the case of a drug in another form, per dose; (iv) the total out-of-pocket spending by participants and beneficiaries on such drug, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for any drug for which gross spending of the group health plan exceeded $10,000 during the reporting period— (I) a list of all other drugs in the same therapeutic category or class, including brand name drugs and biological products and generic drugs or biosimilar biological products that are in the same therapeutic category or class as such drug; and (II) the rationale for preferred formulary placement of such drug in that therapeutic category or class; (C) a list of each therapeutic category or class of drugs that were dispensed under the health plan during the reporting period, and, with respect to each such therapeutic category or class of drugs, during the reporting period— (i) total gross spending by the plan, before manufacturer rebates, fees, or other manufacturer remuneration; (ii) the number of participants and beneficiaries who filled a prescription for a drug in that category or class; (iii) if applicable to that category or class, a description of the formulary tiers and utilization mechanisms (such as prior authorization or step therapy) employed for drugs in that category or class; (iv) the total out-of-pocket spending by participants and beneficiaries, including participant and beneficiary spending through copayments, coinsurance, and deductibles; and (v) for each therapeutic category or class under which 3 or more drugs are included on the formulary of such plan— (I) the amount received, or expected to be received, from drug manufacturers in rebates, fees, alternative discounts, or other remuneration— (aa) to be paid by drug manufacturers for claims incurred during the reporting period; or (bb) that is related to utilization of drugs, in such therapeutic category or class; (II) the total net spending, after deducting rebates, price concessions, alternative discounts or other remuneration from drug manufacturers, by the health plan on that category or class of drugs; and (III) the net price per course of treatment or single fill, such as a 30-day supply or 90-day supply, incurred by the health plan and its participants and beneficiaries, after manufacturer rebates, fees, and other remuneration for drugs dispensed within such therapeutic category or class during the reporting period; (D) total gross spending on prescription drugs by the plan during the reporting period, before rebates and other manufacturer fees or remuneration; (E) total amount received, or expected to be received, by the health plan in drug manufacturer rebates, fees, alternative discounts, and all other remuneration received from the manufacturer or any third party, other than the plan sponsor, related to utilization of drug or drug spending under that health plan during the reporting period; (F) the total net spending on prescription drugs by the health plan during the reporting period; and (G) amounts paid directly or indirectly in rebates, fees, or any other type of remuneration to brokers, consultants, advisors, or any other individual or firm who referred the group health plan's business to the pharmacy benefit manager. (2) Privacy requirements Entities providing pharmacy benefits management services on behalf of a group health plan shall provide information under paragraph (1) in a manner consistent with the privacy, security, and breach notification regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996, and shall restrict the use and disclosure of such information according to such privacy regulations. (3) Disclosure and redisclosure (A) Limitation to business associates A group health plan receiving a report under paragraph (1) may disclose such information only to business associates of such plan as defined in section 160.103 of title 45, Code of Federal Regulations (or successor regulations). (B) Clarification regarding public disclosure of information Nothing in this section prevents an entity providing pharmacy benefits management services on behalf of a group health plan from placing reasonable restrictions on the public disclosure of the information contained in a report described in paragraph (1), except that such entity may not restrict disclosure of such report to the Department of Health and Human Services, the Department of Labor, or the Department of the Treasury. (C) Limited form of report The Secretary shall define through rulemaking a limited form of the report under paragraph (1) required of plan sponsors who are drug manufacturers, drug wholesalers, or other direct participants in the drug supply chain, in order to prevent anti-competitive behavior. (4) Report to GAO An entity providing pharmacy benefits management services on behalf of a group health plan shall submit to the Comptroller General of the United States each of the first 4 reports submitted to a plan sponsor under paragraph (1) with respect to such plan, and other such reports as requested, in accordance with the privacy requirements under paragraph (2) and the disclosure and redisclosure standards under paragraph (3), and such other information that the Comptroller General determines necessary to carry out the study under section 30606(b) of an Act to provide for reconciliation pursuant to title II of S. Con. Res. 14. (c) Enforcement (1) In general The Secretary, in consultation with the Secretary of Labor and the Secretary of Health and Human Services, shall enforce this section. (2) Failure to provide timely information An entity providing pharmacy benefit management services that violates subsection (a) or fails to provide information required under subsection (b), or a drug manufacturer that fails to provide information under subsection (b)(1)(A) in a timely manner, shall be subject to a civil monetary penalty in the amount of $10,000 for each day during which such violation continues or such information is not disclosed or reported. (3) False information An entity providing pharmacy benefit management services, or drug manufacturer that knowingly provides false information under this section shall be subject to a civil money penalty in an amount not to exceed $100,000 for each item of false information. Such civil money penalty shall be in addition to other penalties as may be prescribed by law. (4) Procedure The provisions of section 1128A of the Social Security Act, other than subsection (a) and (b) and the first sentence of subsection (c)(1) of such section shall apply to civil monetary penalties under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A of the Social Security Act. (5) Waivers The Secretary may waive penalties under paragraph (2), or extend the period of time for compliance with a requirement of this section, for an entity in violation of this section that has made a good-faith effort to comply with this section. (d) Rule of construction Nothing in this section shall be construed to permit a group health plan or other entity to restrict disclosure to, or otherwise limit the access of, the Department of the Treasury to a report described in subsection (b)(1) or information related to compliance with subsection (a) by such plan or entity. (e) Definition In this section, the term wholesale acquisition cost has the meaning given such term in section 1847A(c)(6)(B) of the Social Security Act. . (b) Clerical amendment The table of sections for subchapter B of chapter 100 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new item: Sec. 9827. Oversight of pharmacy benefit manager services. . 4 Pathway to Practice Training Programs 137401. Administrative funding of the Rural and Underserved Pathway to Practice Training Programs for Post-Baccalaureate Students, Medical Students, and Medical Residents In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $6,000,000 to remain available until September 30, 2031, in addition to amounts otherwise available, to carry out the administration of the Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students under section 1899C of such Act ( 42 U.S.C. 1395mmm ) and the Rural and Underserved Pathway to Practice Training Programs for Medical Residents under section 1886(h)(4)(H)(vii) of such Act ( 42 U.S.C. 1395ww(h)(4)(H)(vii) ). Amounts transferred under the preceding sentence shall remain available until expended. 137402. Establishing Rural and Underserved Pathway to Practice Training Programs for Post-Baccalaureate Students and Medical Students (a) Program (1) In general Title XVIII of the Social Security Act ( 42 U.S.C. 1395 et seq. ) is amended by adding at the end the following new section: 1899C. Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students (a) In general Not later than October 1, 2023, the Secretary shall, subject to the succeeding provisions of this section, carry out the Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students (in this section, referred to as the Program ) under which the Secretary awards Pathway to Practice medical scholarship vouchers to qualifying students described in subsection (b) for the purpose of increasing the number of physicians practicing in rural and underserved communities. (b) Qualifying student described For purposes of this section, a qualifying student described in this subsection is an individual who— (1) attests he or she— (A) is or will be a first-generation student of a 4-year college, graduate school, or professional school; (B) was a Pell Grant recipient; or (C) lived in a medically underserved area, rural area, or health professional shortage area for a period of 4 or more years prior to attending an undergraduate program; (2) has accepted enrollment in— (A) a post-baccalaureate program that is not more than 2 years and intends to enroll in a qualifying medical school within 2 years after completion of such program; or (B) a qualifying medical school; (3) will practice medicine in a health professional shortage area, medically underserved area, public hospital, rural area, or as required under subsection (d)(5); and (4) submits an application and a signed copy of the agreement described under subsection (c). (c) Applications (1) In general To be eligible to receive a Pathway to Practice medical scholarship voucher under this section, a qualifying student described in subsection (b) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (2) Information to be included As a part of the application described in paragraph (1), the Secretary shall include a notice of the items which are required to be agreed to under subsection (d)(5) for the purpose of notifying the qualifying student of the terms of the Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students. (d) Pathway to Practice medical scholarship voucher details (1) Number On an annual basis, the Secretary shall award a Pathway to Practice medical scholarship voucher under the Program to 1,000 qualifying students described in subsection (b). (2) Prioritization criteria In determining whether to award a Pathway to Practice medical scholarship voucher under the Program to qualifying students described in subsection (b), the Secretary shall prioritize applications from any such student who attests that he or she— (A) was a participant in the Health Resources and Services Administration Health Careers Opportunity Program, Centers of Excellence Program, or an Area Health Education Center program; (B) is a disadvantaged student (as defined by the National Health Service Corps of the Health Resources & Services Administration of the Department of Health and Human Services); or (C) attended a historically black college or other minority serving institution (as defined in section 1067q of title 20, United States Code). (3) Duration Each Pathway to Practice medical scholarship voucher awarded to a qualifying student pursuant to paragraph (1) shall be so awarded to such a student on an annual basis for each year of enrollment in a post-baccalaureate program and a qualifying medical school (as appropriate). (4) Amount Subject to paragraph (5), each Pathway to Practice medical scholarship voucher awarded under the Program shall include amounts for— (A) tuition; (B) academic fees (as determined by the qualifying medical school); (C) required textbooks and equipment; (D) a monthly stipend equal to the amount provided for individuals under the health professions scholarship and financial assistance program for active service stipend monthly rate; and (E) any other educational expenses normally incurred by students at the post-baccalaureate program or qualifying medical school (as appropriate). (5) Required agreement No amounts under paragraph (4) may be provided to a qualifying student awarded a Pathway to Practice medical scholarship voucher under the Program unless the qualifying student submits to the Secretary an agreement to— (A) complete a post-baccalaureate program that is not more than 2 years (if applicable pursuant to the option under subsection (b)(2)(A)); (B) graduate from a qualifying medical school; (C) complete a residency program in an approved residency training program (as defined in section 1886(h)(5)(A)); (D) complete an initial residency period or the period of board eligibility; (E) practice medicine for at least the number of years of the Pathway to Practice medical scholarship voucher awarded under paragraph (2) after a residency program in a health professional shortage area, a medically underserved area, a public hospital, or a rural area, and during such period annually submit documentation with respect to whether the qualifying student practices medicine in such an area and where; (F) for the purpose of determining compliance with subparagraph (E), not later than 180 days after the date on which qualifying student completes a residency program, provide to the Secretary information with respect to where the qualifying student is practicing medicine following the period described in such subparagraph; (G) except in the case of a waiver for hardship pursuant to section 1892(f)(3), be liable to the United States pursuant to section 1892 for any amounts received under this Program that is determined a past-due obligation under subsection (b)(3) of such section in the case qualifying student fails to complete all of the requirements of this agreement under this subsection; and (H) for the purpose of determining the amount of Pathway to Practice medical scholarship vouchers paid or incurred by a qualifying medical school or any provider of a post-baccalaureate program referred to in subsection (b)(2)(A) for the costs of each item specified under paragraph (4), consent to any personally identifying information being shared with the Secretary of the Treasury. (6) Responsibilities of participating educational institutions Each annual award of an amount of Pathway to Practice medical scholarship voucher under paragraph (2) shall be made with respect to a specific qualifying medical school or to a post-baccalaureate program that is not more than 2 years and such school or program shall (as a condition of, and prior to, such award being made with respect to such school or program)— (A) submit to the Secretary such information as the Secretary may require to determine the amount of such award on the basis of the costs of the items specified under paragraph (4) (except for subparagraph (D)) with respect to such school or program, and (B) enter into an agreement with the Secretary under which such school or program will verify (in such manner as the Secretary may provide) that amounts paid by such school or program to the qualifying student are used for such costs. (e) Definitions In this section: (1) Health professional shortage area The team health professional shortage area has the meaning given such term in subparagraphs (A) or (B) of section 332(a)(1) of the Public Health Service Act. (2) Initial residency period The term initial residency period has the meaning given such term in section 1886(h)(5)(F). (3) Medically underserved area The term medically underserved area means an area designated pursuant to section 330(b)(3)(A) of the Public Health Service Act. (4) Pell Grant recipient The term Pell Grant recipient has the meaning given such term in section 322(3) of the Higher Education Act of 1965. (5) Period of board eligibility The term period of board eligibility has the meaning given such term in section 1886(h)(5)(G). (6) Qualifying medical school The term qualifying medical school means a school of medicine accredited by the Liaison Committee on Medical Education of the American Medical Association and the Association of American Medical Colleges (or approved by such Committee as meeting the standards necessary for such accreditation) or a school of osteopathy accredited by the American Osteopathic Association, or approved by such Association as meeting the standards necessary for such accreditation which— (A) for each academic year, enrolls at least 10 qualifying students who are in enrolled in such a school; (B) requires qualifying students to enroll in didactic coursework and clinical experience applicable to practicing medicine in health professional shortage areas, medically underserved areas, or rural areas, including— (i) clinical rotations in such areas in applicable specialties (as applicable and as available); (ii) coursework or training experiences focused on medical issues prevalent in such areas and cultural or structural competency; and (C) is located in a State (as defined in section 210(h)). (7) Rural area The term rural area has the meaning given such term in section 1886(d)(2)(D). (f) Penalty for false information Any person who knowingly and willfully obtains by fraud, false statement, or forgery, or fails to refund any funds, assets, or property provided under this section or attempts to so obtain by fraud, false statement or forgery, or fail to refund any funds, assets, or property, received pursuant to this section shall be fined not more than $20,000 or imprisoned for not more than 5 years, or both. . (2) Agreements Section 1892 of the Social Security Act ( 42 U.S.C. 1395ccc ) is amended— (A) in subsection (a)(1)(A)— (i) by striking , or the and inserting , the ; and (ii) by inserting or the Rural and Underserved Pathway to Practice Training Program for Post- Baccalaureate and Medical Students under section 1899C before , owes a past-due obligation ; (B) in subsection (b)— (i) in paragraph (1), by striking at the end or ; (ii) in paragraph (2), by striking the period at the end and inserting ; or ; and (iii) by adding the end the following new paragraph: (3) subject to subsection (f), owed by an individual to the United States by breach of an agreement under section 1899C(c) and which payment has not been paid by the individual for any amounts received under the Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students (and accrued interest determined in accordance with subsection (f)(4)) in the case such individual fails to complete the requirements of such agreement. ; and (C) by adding at the end the following new subsection: (f) Authorities with respect to the collection under the Pathway to Practice Training Program The Secretary— (1) shall require payment to the United States for any amount of damages that the United States is entitled to recover under subsection (b)(3), within the 5-year period beginning on the date an eligible individual fails to complete the requirements of such agreement under section 1899C(d)(5) (or such longer period beginning on such date as specified by the Secretary), and any such amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to subsection (e); (2) shall allow payments described in paragraph (1) to be paid in installments over such 5-year period, which shall accrue interest in an amount determined pursuant to paragraph (5); (3) shall waive the requirement for an individual to pay a past-due obligation under subsection (b)(3) in the case of hardship (as determined by the Secretary); (4) shall not disclose any past-due obligation under subsection (b)(3) that is owed to the United States to any credit reporting agency that the United States entitled to be recovered the United States under this section; and (5) shall make a final determination of whether the amount of payment under section 1899C made to a qualifying student (as described in subsection (b) of such section) was in excess of or less than the amount of payment that is due, and payment of such excess or deficit is not made (or effected by offset) within 90 days of the date of the determination, and interest shall accrue on the balance of such excess or deficit not paid or offset (to the extent that the balance is owed by or owing to the provider) at a rate determined in accordance with the regulations of the Secretary of the Treasury applicable to charges for late payments. . 137403. Funding for the rural and underserved pathway to practice training programs for post-baccalaureate students and medical students (a) In general Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by inserting after section 36F the following new section: 36G. Pathway to Practice medical scholarship voucher credit (a) In general In the case of a qualified educational institution, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the aggregate amount paid or incurred by such institution during such taxable year pursuant to any Pathway to Practice medical scholarship voucher awarded to a qualifying student with respect to such institution. (b) Determination of amounts paid pursuant to qualified scholarship vouchers, etc For purposes of this section— (1) an amount shall be treated as paid or incurred pursuant to an annual award of a Pathway to Practice medical scholarship voucher only if such amount is paid or incurred in reimbursement, or anticipation of, an expense described in subparagraphs (A) through (E) of paragraph (4) of section 1899C(d) of the Social Security Act and is subject to verification in such manner as the Secretary of Health and Human Services may provide under paragraph (6) of such section, and (2) in the case of any amount credited by a qualified educational institution against a liability owed by the qualifying student to such institution, such amount shall be treated as paid by such institution to such student as of the date that such liability would otherwise be due. (c) Definitions For purposes of this section— (1) Qualified educational institution The term qualified educational institution means, with respect to any annual award of a Pathway to Practice medical scholarship voucher— (A) any qualifying medical school (as defined in subsection (e)(6) of section 1899C of the Social Security Act), and (B) any provider of a post-baccalaureate program referred to in subsection (b)(2)(A) of such section, which meets the requirements of subsection (d)(6) of such section. (2) Qualifying student The term qualifying student means any student to whom the Secretary of Health and Human Services has made an annual award of a Pathway to Practice medical scholarship voucher under section 1899C of the Social Security Act. (3) Annual award of a Pathway to Practice medical scholarship voucher The term annual award of a Pathway to Practice medical scholarship voucher means the annual award of a Pathway to Practice medical scholarship voucher referred to in section 1899C(d)(3) of the Social Security Act. (d) Coordination of academic and taxable years The credit allowed under subsection (a) with respect to any Pathway to Practice medical scholarship voucher shall not exceed the amount of such voucher which is for expenses described in subparagraphs (A) through (E) of section 1899C(d)(4) of the Social Security Act, reduced by any amount of such voucher with respect to which credit was allowed under this section for any prior taxable year. (e) Regulations The Secretary shall issue such regulations or other guidance as are necessary or appropriate to carry out the purposes of this section. . (b) Conforming amendments (1) Section 6211(b)(4)(A), as amended by the preceding provisions of this Act, is amended by inserting 36G, after 36F, . (2) Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by the preceding provisions of this Act, is amended by inserting 36G, after 36F, . (3) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, and amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 36F the following new item: Sec. 36G. Pathway to Practice medical scholarship voucher credit. . (c) Information sharing The Secretary of Health and Human Services shall annually provide the Secretary of the Treasury such information regarding the program under section 1899C of the Social Security Act as the Secretary of the Treasury may require to administer the tax credits determined under section 36G of the Internal Revenue Code of 1986, including information to identify qualifying students and the qualified educational institutions at which such students are enrolled and the amount of the annual award of the Pathway to Practice medical scholarship voucher awarded to each such student with respect to such institution. Terms used in this subparagraph shall have the same meaning as when used in such section 36G. (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 137404. Establishing Rural and Underserved Pathway to Practice Program for Medical Residents Section 1886 of the Social Security Act ( 42 U.S.C. 1395ww ) is amended— (1) in subsection (d)(5)(B)(v), by inserting (h)(4)(H)(vii), after The provisions of subsections (h)(4)(H)(vi), ; and (2) in subsection (h)(4)(H), by adding at the end the following new clause: (vii) Exclusion from Full-Time Equivalent limitation for hospitals implementing Rural and Underserved Pathway to Practice Program (I) In general For cost reporting periods beginning on or after October 1, 2026, during which a qualifying resident (as defined in subclause (II)) trains in an applicable hospital (as defined in subclause (III)), the Secretary shall, for such cost reporting period by the number of full-time equivalent residents so trained within the applicable hospital during such period, exclude from the limitation under subparagraph (F). (II) Qualifying resident For purposes of this clause, the term qualifying resident means a full-time equivalent resident who— (aa) was a qualifying student awarded a Pathway to Practice medical scholarship voucher under section 1899C; and (bb) graduated from a qualifying medical school. (III) Applicable hospital (aa) In general For purposes of this clause, the term ‘applicable hospital’ means any hospital that— (AA) meets the requirements of item (bb); (BB) agrees to provide data to the Secretary with respect to where qualifying residents (as defined in subclause (II)) practice medicine or participate in fellowships immediately following their residencies; and (CC) agrees to promote community-based training of qualifying residents (as defined in subclause (II)), as appropriate. (bb) Other requirements For the purpose of item (aa)(AA), an applicable hospital shall also be a subsection (d) hospital that has been recognized by the Accreditation Council for Graduate Medical Education as meeting the following requirements: (AA) Such hospital provides mentorships for residents. (BB) Such hospital includes cultural or structural competency as part of the training of residents. (CC) The hospital has a demonstrated record of training medical residents in health professional shortage areas, medically underserved areas, public hospitals, or rural areas. (IV) Other definitions (aa) Health professional shortage area The team health professional shortage area has the meaning given such term in subparagraphs (A) or (B) of section 332(a)(1) of the Public Health Service Act. (bb) Medically underserved area The term medically underserved area means an area designated pursuant to section 330(b)(3)(A) of the Public Health Service Act. (cc) Qualifying medical school The term qualifying medical school has the meaning given such term in section 1899C(e)(6). (dd) Qualifying medical student The term qualifying medical student has the meaning given such term in section 1899C(b). (ee) Rural Area The term rural area has the meaning given such term in section 1886(d)(2)(D). . 137405. Distribution of additional residency positions (a) In general Section 1886(h) of the Social Security Act ( 42 U.S.C. 1395ww(h) ) is amended— (1) in paragraph (4)(F)(i), by striking and (9) and inserting (9), and (10) ; (2) in paragraph (4)(H)(i), by striking and (9) and inserting (9), and (10) ; and (3) by adding at the end the following new paragraph: (10) Distribution of additional residency positions (A) Additional residency positions (i) In general For fiscal years 2025 and 2026, and for each succeeding fiscal year until the aggregate number of full-time equivalent residency positions distributed under this paragraph is equal to the aggregate number of such positions made available (as specified in clause (ii)), the Secretary shall, subject to the succeeding provisions of this paragraph, increase the otherwise applicable resident limit for each qualifying hospital (as defined in subparagraph (F)) that submits a timely application under this subparagraph by such number as the Secretary may approve effective beginning July 1 of the fiscal year of the increase. (ii) Number available for distribution (I) Total number available The aggregate number of such positions made available under this paragraph shall be equal to 4,000. (II) Annual limit The aggregate number of such positions so made available shall not exceed 2,000 for a fiscal year. (iii) Rounds of applications The Secretary shall initiate a separate round of applications for an increase under clause (i) for each fiscal year for which such an increase is to be provided. (iv) Distribution for primary care, psychiatry, and other residencies (I) In general Except as provided under subclause (II), of the positions made available under this paragraph— (aa) not less than 25 percent shall be in a primary care residency (as defined in subparagraph (F)) or obstetrics and gynecology residency; and (bb) not less than 15 percent shall be in a psychiatry residency (as defined in such subparagraph). (II) Distribution for other residencies The requirement under subclause (I) shall not apply with respect to any positions made available under this paragraph that are not distributed to a qualifying hospital by July 1, 2027, and such positions shall be distributed to hospitals in accordance with subparagraph (B), without regard to specialty. (v) Clarification regarding availability of other increase A qualifying hospital may apply for, and receive, an increase under this paragraph and paragraph (9) for a fiscal year. (B) Distribution For purposes of providing an increase in the otherwise applicable resident limit under subparagraph (A), the following shall apply: (i) Eligible hospitals With respect to the aggregate number of such positions available for distribution under this paragraph, the Secretary shall distribute 30 percent of such aggregate number to the category of hospitals described in subclause (II) of clause (ii), 20 percent of such aggregate number to each of the categories of hospitals described in subclauses (I), (III), and (IV) of such clause, and 10 percent of such aggregate number to the category of hospitals described in subclause (V) of such clause, subject to clauses (iii) and (iv). (ii) Categories of hospitals described The following categories of hospitals are described in this clause: (I) Hospitals that are located in a rural area (as defined in subsection (d)(2)(D)) or are treated as being located in a rural area pursuant to subsection (d)(8)(E), hospitals that are located in a census tract assigned a rural-urban commuting area code of 4 or greater, and hospitals that are a sole community hospital (as defined in subsection (d)(5)(D)(iii)). (II) Hospitals in which the reference resident level of the hospital (as specified in subparagraph (F)(v)) is greater than the otherwise applicable resident limit. (III) Hospitals in States with— (aa) a new medical school that received Candidate School status from the Liaison Committee on Medical Education or Pre-Accreditation status from the American Osteopathic Association Commission on Osteopathic College Accreditation on or after January 1, 2000, and achieved or continued to progress toward Full Accreditation status (as such term is defined by the Liaison Committee on Medical Education) or toward Accreditation status (as such term is defined by the American Osteopathic Association Commission on Osteopathic College Accreditation); or (bb) an additional location or branch campus established on or after January 1, 2000, by a medical school with Full Accreditation status (as such term is defined by the Liaison Committee on Medical Education) or Accreditation status (as such term is defined by the American Osteopathic Association Commission on Osteopathic College Accreditation). (IV) Hospitals that are located in or serve an area designated as a health professional shortage area under section 332(a)(1)(A) of the Public Health Service Act or serve a population group designated under section 332(a)(1)(B) of such Act, as determined by the Secretary. (V) Hospitals located in States in the lowest quartile for resident-to-population ratios, as defined by the Secretary. (iii) Distribution to other hospitals Any positions made available under this paragraph that are not distributed to a qualifying hospital in accordance with clause (i) by July 1, 2027, shall be distributed to other hospitals, subject to the requirement under clause (iv). In carrying out the preceding sentence, the Secretary shall ensure that such positions are first offered to qualifying hospitals in categories described in clause (ii) before being distributed to other hospitals. (iv) Requirement A hospital shall only be eligible to receive positions made available under this paragraph if the hospital demonstrates to the Secretary that the hospital is likely to— (I) fill such positions within the first 5 training years beginning after the date the increase would be effective, as determined by the Secretary; and (II) use some portion (as specified by the Secretary) of such positions for the residencies described in (A)(iv). (C) Conditions of distribution (i) In general Subject to clause (iv), a hospital that receives an increase in the otherwise applicable resident limit under this paragraph shall ensure, during the 5-year period beginning on the date of such increase, that the numbers of full-time equivalent residents in a primary care or psychiatry residency (as those terms are defined in subparagraph (F)), excluding any additional positions attributable to an increase under this paragraph, are not less than the average numbers of full-time equivalent residents in a primary care or psychiatry residency (as so defined) during the 3 most recent cost reporting periods ending prior to the date of enactment of this paragraph. (ii) Reporting requirements Subject to clause (iv), a hospital that receives an increase in the otherwise applicable resident limit under this paragraph shall, after making a good faith attempt to collect information from former residents, report to the Secretary in a time and manner specified by the Secretary the following information for each year (beginning with the first year for which the hospital receives an increase in the otherwise applicable resident limit under this paragraph), as applicable: (I) Race and ethnicity of residents. (II) The practice patterns of residents one and two years after completion of their residency, including the number and percent of residents who— (aa) practice in a primary care, psychiatry, or other specialty; (bb) primarily serve or are located in a health professional shortage area with a designation in effect under section 332 of the Public Health Service Act; or (cc) primarily serve or are located in a rural area (as defined in subsection (d)(2)(D)). (iii) Requirement for rural hospitals to expand existing programs Subject to clause (iv), if a hospital that receives an increase in the otherwise applicable resident limit under this paragraph would be eligible for an adjustment to the otherwise applicable resident limit for participation in a new medical residency training program under section 413.79(e)(3) of title 42, Code of Federal Regulations (or any successor regulation), the hospital shall ensure that any positions made available under this paragraph are used to expand an existing program of the hospital, and not for participation in a new medical residency training program. (iv) Redistribution of positions if hospital no longer meets certain requirements In the case where the Secretary determines that a hospital that receives an increase in the otherwise applicable resident limit under this paragraph does not meet either of the requirements under clause (i), the reporting requirements under clause (ii), or, if applicable, the requirement under clause (iii), the Secretary shall— (I) reduce the otherwise applicable resident limit of the hospital by the amount by which such limit was increased under this paragraph; and (II) provide for the distribution of positions attributable to such reduction to other qualifying hospitals in accordance with the requirements of this paragraph. (v) Limitation A hospital may not receive more than 25 additional full-time equivalent residency positions under this paragraph. (D) Application of per resident amounts for primary care and nonprimary care With respect to additional residency positions in a hospital attributable to the increase provided under this paragraph, the approved FTE per resident amounts are deemed to be equal to the hospital per resident amounts for primary care and nonprimary care computed under paragraph (2)(D) for that hospital. (E) Permitting facilities to apply aggregation rules The Secretary shall permit hospitals receiving additional residency positions attributable to the increase provided under this paragraph to, beginning in the fifth year after the effective date of such increase, apply such positions to the limitation amount under paragraph (4)(F) that may be aggregated pursuant to paragraph (4)(H) among members of the same affiliated group. (F) Definitions In this paragraph: (i) Otherwise applicable resident limit The term otherwise applicable resident limit means, with respect to a hospital, the limit otherwise applicable under subparagraphs (F)(i) and (H) of paragraph (4) on the resident level for the hospital determined without regard to this paragraph but taking into account paragraphs (7)(A), (7)(B), (8)(A), (8)(B), or (9)(A). (ii) Primary care residency The term primary care residency means a residency training program described in paragraph (5)(H). (iii) Psychiatry residency The term psychiatry residency means a residency in psychiatry, addiction medicine, addiction psychiatry, pain medicine, child and adolescent psychiatry, consultation-liaison psychiatry, geriatric psychiatry, brain injury medicine, forensic psychiatry, hospice and palliative medicine, and sleep medicine. Such term includes a residency in a program that is a prerequisite (as determined by the Secretary) for a residency described in the preceding sentence. (iv) Qualifying hospital The term qualifying hospital means a hospital described in any of subclauses (I) through (V) of subparagraph (B)(ii). (v) Reference resident level The term reference resident level means, with respect to a hospital, the resident level for the most recent cost reporting period of the hospital ending on or before the date of enactment of this paragraph, for which a cost report has been settled (or, if not, submitted (subject to audit)), as determined by the Secretary. (vi) Resident level The term resident level has the meaning given such term in paragraph (7)(C)(i). (G) Funding There is appropriated to the Secretary, out of any amounts in the Treasury not otherwise appropriated, $10,000,000, to remain available until expended, for purposes of carrying out this paragraph and subsection (d)(5)(B)(xiii). . (b) IME Section 1886(d)(5)(B) of the Social Security Act ( 42 U.S.C. 1395ww(d)(5)(B) ) is amended— (1) in clause (v), in the third sentence, by striking and (h)(9) and inserting (h)(9), and (h)(10) ; (2) by adding at the end the following new clause: (xiii) For discharges occurring on or after July 1, 2024, insofar as an additional payment amount under this subparagraph is attributable to resident positions distributed to a hospital under subsection (h)(10), the indirect teaching adjustment factor shall be computed in the same manner as provided under clause (ii) with respect to such resident positions. . 5 Higher education 137501. Credit for public university research infrastructure (a) In general Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 45AA. Public university research infrastructure credit (a) Allowance of credit For purposes of section 38, the public university research infrastructure credit determined under this section for a taxable year is an amount equal to 40 percent of the qualified cash contributions made by a taxpayer during such taxable year. (b) Qualified cash contribution (1) In general (A) Defined For purposes of subsection (a), the qualified cash contribution for any taxable year is the aggregate amount contributed in cash by a taxpayer during such taxable year to a certified educational institution in connection with a qualifying project that, but for this section, would be treated as a charitable contribution for purposes of section 170(c). (B) Qualified cash contributions taken into account for purposes of charitable contribution limitations Any qualified cash contributions made by a taxpayer under this section shall be taken into account for purposes of determining the percentage limitations under section 170(b). (2) Designation required A contribution shall only be treated as a qualified cash contribution to the extent that it is designated as such by a certified educational institution under subsection (d). (c) Definitions For purposes of this section— (1) Qualifying project The term qualifying project means a project to purchase, construct, or improve research infrastructure property. (2) Research infrastructure property The term research infrastructure property means any portion of a property, building, or structure of an eligible educational institution, or any land associated with such property, building, or structure, that is used for research. (3) Eligible educational institution The term eligible educational institution means— (A) an institution of higher education (as such term is defined in section 101 or 102(c) of the Higher Education Act of 1965) that is a college or university described in section 511(a)(2)(B), or (B) an organization described in section 170(b)(1)(A)(iv), section 170(b)(1)(A)(vi), or section 509(a)(3) to which authority has been delegated by an institution described in subparagraph (A) for purposes of applying for or administering credit amounts on behalf of such institution. (4) Certified educational institution The term certified educational institution means an eligible educational institution which has been allocated a credit amount for a qualifying project and— (A) has received a certification for such project by submitting an application as required under subsection (d)(2), and (B) designates credit amounts to taxpayers for qualifying cash contributions toward such project under subsection (d)(4). (d) Qualifying university research infrastructure program (1) Establishment (A) In general Not later than 180 days after the date of the enactment of this section, the Secretary, after consultation with the Secretary of Education, shall establish a program to— (i) certify and allocate credit amounts for qualifying projects to eligible educational institutions, and (ii) allow certified educational institutions to designate cash contributions for qualifying projects of such certified educational institutions as qualified cash contributions. (B) Limitations (i) Allocation limitation per institution The credit amounts allocated to a certified educational institution under subparagraph (A)(i) for all projects shall not exceed $50,000,000 per calendar year. (ii) Overall allocation limitation (I) In general The total amount of qualifying project credit amounts that may be allocated under subparagraph (A)(i) shall not exceed— (aa) $500,000,000 for each of calendar years 2022, 2023, 2024, 2025, and 2026, and (bb) $0 for each subsequent year. (II) Rollover of unallocated credit amounts Any credit amounts described in subclause (I) that are unallocated during a calendar year shall be carried to the succeeding calendar year and added to the limitation allowable under such subclause for such succeeding calendar year. (iii) Designation limitation The aggregate amount of cash contributions which are designated by a certified educational institution as qualifying cash contributions with respect to any qualifying project shall not exceed 250 percent of the credit amount allocated to such certified educational institution for a qualifying project under subparagraph (A)(i). (2) Certification application Each eligible educational institution which applies for certification of a project under this paragraph shall submit an application in such time, form, and manner as the Secretary may require. (3) Selection criteria for allocations to eligible educational institutions The Secretary, after consultation with the Secretary of Education, shall select applications from eligible educational institutions— (A) based on the extent of the expected expansion of an eligible educational institution’s targeted research within disciplines in science, mathematics, engineering, and technology, and (B) in a manner that ensures consideration is given to eligible educational institutions with full-time student populations of less than 12,000. (4) Designation of qualified cash contributions to taxpayers The Secretary, after consultation with the Secretary of Education, shall establish a process by which certified educational institutions shall designate cash contributions to such institutions as qualified cash contributions. (5) Disclosure of allocations and designations (A) Allocations The Secretary shall, upon allocating credit amounts to an applicant under this subsection, publicly disclose the identity of the applicant and the credit amount allocated to such applicant. (B) Designations Each certified educational institution shall, upon designating contributions of a taxpayer as qualified cash contributions under this subsection, publicly disclose the identity of the taxpayer and the amount of contributions designated in such time, form, and manner as the Secretary may require. (e) Regulations and guidance The Secretary, after consultation with the Secretary of Education when applicable, shall prescribe such regulations and guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance for— (1) prevention of abuse, (2) establishment of reporting requirements, (3) establishment of selection criteria for applications, and (4) disclosure of allocations. (f) Penalty for noncompliance (1) In general If at any time during the 5-year period beginning on the date of the allocation of credit amounts to a certified educational institution under subsection (d)(1)(A)(i) there is a noncompliance event with respect to such credit amounts, then the following rules shall apply: (A) General rule Any cash contribution designated as a qualifying cash contribution with respect to a qualifying project for which such credit amounts were allocated under subsection (d)(1)(A)(ii) shall be treated as unrelated business taxable income (as defined in section 512) of such certified educational institution. (B) Rule for unused credit amounts In the case of credit amounts described under paragraph (2)(A) which are unused and identified pursuant to subsection (g), the Secretary shall reallocate any portion of such credit amounts that are unused to certified educational institutions in lieu of imposing the general rule under subparagraph (A). (2) Noncompliance event For purposes of this subsection, the term noncompliance event means, with respect to a credit amount allocated to a certified educational institution— (A) cash contributions equaling the amount of such credit amount are not designated as qualifying cash contributions within 2 years after December 31 of the year such credit amount is allocated, (B) a qualifying project with respect to which such credit amount was allocated is not placed in service within either— (i) 4 years after December 31 of the year such credit amount is allocated, or (ii) a period of time that the Secretary determines is appropriate, or (C) the research infrastructure property placed in service as part of a qualifying project with respect to which such credit amount was allocated ceases to be used for research within five years after such property is placed in service. (g) Review and reallocation of credit amounts (1) Review Not later than 5 years after the date of enactment of this section, the Secretary shall review the credit amounts allocated under this section as of such date. (2) Reallocation (A) In general The Secretary may reallocate credit amounts allocated under this section if the Secretary determines, as of the date of the review in paragraph (1), that such credit amounts are subject to a noncompliance event. (B) Additional program If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in subparagraph (A), the Secretary is authorized to conduct an additional program for applications for certification. (C) Deadline for reallocation The Secretary shall not certify any project, or reallocate any credit amount, pursuant to this paragraph after December 31, 2031. (h) Denial of double benefit No credit or deduction shall be allowed under any other provision of this chapter for any qualified cash contribution for which a credit is allowed under this section. (i) Rule for trusts and estates For purposes of this section, rules similar to the rules of subsection (d) of section 52 shall apply. (j) Termination This section shall not apply to qualified cash contributions made after December 31, 2033. . (b) Credit made part of general business credit Subsection (b) of section 38 , as amended by the preceding provisions of this Act, is amended by striking plus at the end of paragraph (41), by striking the period at the end of paragraph (42) and inserting , plus , and by adding at the end the following new paragraph: (43) the public university research infrastructure credit determined under section 45AA. . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 45AA. Public university research infrastructure credit. . (d) Effective date The amendments made by this section shall apply to qualified cash contributions made after December 31, 2021. 137502. Treatment of Federal Pell Grants for income tax purposes (a) Exclusion from gross income Section 117(b)(1) is amended by striking means any amount and all that follows and inserting means— (A) any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses, and (B) any amount received by an individual after December 31, 2021, and before January 1, 2026, as a Federal Pell Grant under section 401 of the Higher Education Act of 1965. . (b) Treatment for purposes of American Opportunity Tax Credit and Lifetime Learning Credit Section 25A(g)(2) is amended— (1) in subparagraph (A), by inserting described in section 117(b)(1)(A) after a qualified scholarship , and (2) in subparagraph (C), by inserting or amount described in section 117(b)(1)(B) after within the meaning of section 102(a) . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 137503. Repeal of denial of American Opportunity Tax Credit on basis of felony drug conviction (a) In general Section 25A(b)(2) is amended by striking subparagraph (D). (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 6 Deduction for State and local taxes, etc. 137601. Modification of limitation on deduction for State and local taxes, etc (a) In general Paragraph (6) of section 164(b) is amended— (1) by striking 2025 in the heading and inserting 2031 , (2) by striking January 1, 2026 and inserting January 1, 2032 , (3) in subparagraph (A), by inserting or section 216(a)(1) after subsection (a)(1) , (4) in subparagraph (B)— (A) by inserting (and any tax described in any such paragraph taken into account under section 216(a)(1)) after paragraph (5) of this subsection , and (B) by striking shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return). and inserting shall not exceed— (i) in the case of any taxable year beginning after December 31, 2020, and before January 1, 2031, $80,000 ($40,000 in the case of an estate, trust, or married individual filing a separate return), and (ii) in the case of any taxable year beginning after December 31, 2030, and before January 1, 2032, $10,000 ($5,000 in the case of an estate, trust, or married individual filing a separate return). , and (5) by striking the last sentence and inserting the following: In the case of taxes paid during a taxable year beginning before January 1, 2031, the Secretary shall prescribe regulations or other guidance which treat all or a portion of such taxes as paid in a taxable year or years other than the taxable year in which actually paid as necessary or appropriate to prevent the avoidance of the limitations of this paragraph. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. (c) No inference The amendments made by paragraphs (3), (4)(A), and (5) shall not be construed to create any inference with respect to the proper application of section 164(b)(6) or section 216(a) with respect to any taxable year beginning before January 1, 2021. H Responsibly Funding Our Priorities 138001. Amendment of 1986 Code Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. 1 Corporate and International Tax Reforms A Corporate provisions 138101. Corporate alternative minimum tax (a) Imposition of tax (1) In general Paragraph (2) of section 55(b) is amended to read as follows: (2) Corporations (A) Applicable corporations In the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of— (i) 15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over (ii) the corporate AMT foreign tax credit for the taxable year. (B) Other corporations In the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero. . (2) Applicable corporation Section 59 is amended by adding at the end the following new subsection: (k) Applicable corporation For purposes of this part— (1) Applicable corporation defined (A) In general The term applicable corporation means, with respect to any taxable year, any corporation (other than an S corporation, a regulated investment company, or a real estate investment trust) which meets the average annual adjusted financial statement income test of subparagraph (B) for one or more taxable years which— (i) are prior to such taxable year, and (ii) end after December 31, 2021. (B) Average annual adjusted financial statement income test For purposes of this subsection— (i) a corporation meets the average annual adjusted financial statement income test for any taxable year if the average annual adjusted financial statement income of such corporation for the 3-taxable-year period ending with such taxable year exceeds $1,000,000,000, and (ii) in the case of a corporation described in paragraph (2), such corporation meets the average annual adjusted financial statement income test if— (I) the corporation meets the requirements of clause (i) (determined after the application of paragraph (2)), and (II) the average annual adjusted financial statement income of such corporation (determined without regard to the application of paragraph (2)) for the 3-taxable-year-period ending with such taxable year is $100,000,000 or more. (C) Exception Notwithstanding subparagraph (A), the term applicable corporation shall not include any corporation which otherwise meets the requirements of subparagraph (A) if— (i) such corporation— (I) has a change in ownership, or (II) has a specified number (to be determined by the Secretary and which shall, as appropriate, take into account the facts and circumstances of the taxpayer) of consecutive taxable years, including the most recent taxable year, in which the corporation does not meet the average annual adjusted financial statement income test of subparagraph (B), and (ii) the Secretary determines that it would not be appropriate to continue to treat such corporation as an applicable corporation. The preceding sentence shall not apply to any corporation if, after the Secretary makes the determination described in clause (ii), such corporation meets the average annual adjusted financial statement income test for any taxable year beginning after the first taxable year for which the determination applies. (D) Special rules for determining average annual adjusted financial statement income Solely for purposes of determining whether a corporation is an applicable corporation under paragraph (1)— (i) all persons treated as a single employer under subsection (a) or (b) of section 52 shall be treated as 1 person, and (ii) in the case of a foreign corporation, only income described in paragraph (3) or (4) of section 56A(c) shall be taken into account. (E) Other special rules (i) Corporations in existence for less than 3 years If the corporation was in existence for less than 3-taxable years, subparagraph (B) shall be applied on the basis of the period during which such corporation was in existence. (ii) Short taxable years Adjusted financial statement income for any taxable year of less than 12 months shall be annualized by multiplying the adjusted financial statement income for the short period by 12 and dividing the result by the number of months in the short period. (iii) Treatment of predecessors Any reference in this subparagraph to a corporation shall include a reference to any predecessor of such corporation. (2) Special rule for foreign-parented corporations (A) In general Solely for purposes of determining whether a corporation meets the average annual adjusted financial statement income test under paragraph (1)(B)(i), notwithstanding paragraph (1)(D)(ii), any corporation which for any taxable year is a member of an international financial reporting group the common parent of which is a foreign corporation shall include in the adjusted financial statement income of such corporation for such taxable year the adjusted financial statement income of all foreign members of such group. (B) International financial reporting group For purposes of subparagraph (A), the term international financial reporting group shall have the meaning given such term by section 163(n)(3). (3) Regulations or other guidance The Secretary shall provide regulations or other guidance for the purposes of carrying out this subsection, including regulations or other guidance— (A) providing a simplified method for determining whether a corporation meets the requirements of paragraph (1), and '(B) addressing the application of this subsection to a corporation that experiences a change in ownership. . (3) Reduction for base erosion and anti-abuse tax Section 55(a)(2) is amended by inserting plus, in the case of an applicable corporation (as defined in subsection (b)(2)), the tax imposed by section 59A before the period at the end. (4) Conforming amendments (A) Section 55(a) is amended by striking In the case of a taxpayer other than a corporation, there and inserting There . (B) (i) Section 55(b)(1) is amended— (I) by striking so much as precedes subparagraph (A) and inserting the following: (1) Noncorporate taxpayers In the case of a taxpayer other than a corporation— , and (II) by adding at the end the following new subparagraph: (D) Alternative minimum taxable income The term alternative minimum taxable income means the taxable income of the taxpayer for the taxable year— (i) determined with the adjustments provided in section 56 and section 58, and (ii) increased by the amount of the items of tax preference described in section 57. If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence). . (ii) Section 860E(a)(4) is amended by striking 55(b)(2) and inserting 55(b)(1)(D) . (iii) Section 897(a)(2)(A)(i) is amended by striking 55(b)(2) and inserting 55(b)(1)(D) . (C) Section 11(d) is amended by striking the tax imposed by subsection (a) and inserting the taxes imposed by subsection (a) and section 55 . (D) Section 12 is amended by adding at the end the following new paragraph: (5) For alternative minimum tax, see section 55. . (E) Section 882(a)(1) is amended by inserting , 55, after section 11 . (F) Section 6425(c)(1)(A) is amended to read as follows: (A) the sum of— (i) the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, plus (ii) the tax imposed by section 55, plus (iii) the tax imposed by section 59A, over . (G) Section 6655(e)(2) is amended by inserting , adjusted financial statement income (as defined in section 56A), before and modified taxable income each place it appears in subparagraphs (A)(i) and (B)(i). (H) Section 6655(g)(1)(A) is amended by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively, and by inserting after clause (i) the following new clause: (ii) the tax imposed by section 55, . (b) Adjusted financial statement income (1) In general Part VI of subchapter A of chapter 1 is amended by inserting after section 56 the following new section: 56A. Adjusted financial statement income (a) In general For purposes of this part, the term adjusted financial statement income means, with respect to any corporation for any taxable year, the net income or loss of the taxpayer set forth on the taxpayer’s applicable financial statement for such taxable year, adjusted as provided in this section. (b) Applicable financial statement For purposes of this section, the term applicable financial statement means, with respect to any taxable year, an applicable financial statement (as defined in section 451(b)(3) or as specified by the Secretary in regulations or other guidance) which covers such taxable year. (c) General adjustments (1) Statements covering different taxable years Appropriate adjustments shall be made in adjusted financial statement income in any case in which an applicable financial statement covers a period other than the taxable year. (2) Special rules for related entities (A) Consolidated financial statements If the financial results of a taxpayer are reported on the applicable financial statement for a group of entities, rules similar to the rules of section 451(b)(5) shall apply. (B) Consolidated returns Except as provided in regulations prescribed by the Secretary, if the taxpayer files a consolidated return for any taxable year, adjusted financial statement income of the taxpayer for such taxable year shall take into account items on the taxpayer's applicable financial statement which are properly allocable to members of such group included on such return. (C) Treatment of dividends and other amounts In the case of any corporation which is not included on a consolidated return with the taxpayer, adjusted financial statement income of the taxpayer shall take into account the earnings of such other corporation only to the extent of the sum of the dividends received from such other corporation (reduced to the extent provided by the Secretary in regulations or other guidance) and other amounts required to be included in gross income under this chapter (other than amounts required to be included under sections 951 and 951A) in respect of the earnings of such other corporation. (D) Group including one or more partnerships Under rules prescribed by the Secretary, if the financial results of a taxpayer are reported on the applicable financial statement for a group of entities that includes one or more partnerships, adjusted financial statement income shall take into account the earnings of such partnerships in the same proportion as the taxpayer’s distributive share of items from the partnerships required to be included in gross income under this chapter. (3) Adjustments to take into account certain items of foreign income (A) In general If, for any taxable year, a taxpayer is a United States shareholder of one or more controlled foreign corporations, the adjusted financial statement income of such taxpayer shall be adjusted to take into account such taxpayer’s pro rata share (determined under rules similar to the rules under section 951(a)(2)) of items taken into account in computing the net income or loss set forth on the applicable financial statement of each such controlled foreign corporation with respect to which such taxpayer is a United States shareholder. (B) Negative adjustments In any case in which the adjustment determined under subparagraph (A) would result in a negative adjustment for such taxable year— (i) no adjustment shall be made under this paragraph for such taxable year, and (ii) the amount of the adjustment determined under this paragraph for the succeeding taxable year (determined without regard to this paragraph) shall be reduced by an amount equal to the negative adjustment for such taxable year. (4) Effectively connected income In the case of a foreign corporation, to determine adjusted financial statement income, the principles of section 882 shall apply. (5) Adjustments for certain taxes Adjusted financial statement income shall be appropriately adjusted to disregard any Federal income taxes, or income, war profits, or excess profits taxes (within the meaning of section 901) with respect to a foreign country or possession of the United States, which are taken into account on the taxpayer’s applicable financial statement. To the extent provided by the Secretary, the preceding sentence shall not apply to income, war profits, or excess profits taxes (within the meaning of section 901) that are imposed by a foreign country or possession of the United States and taken into account on the taxpayer’s applicable financial statement if the taxpayer does not choose to take the benefits of section 901. The Secretary shall prescribe such regulations or other guidance as may be necessary and appropriate to provide for the proper treatment of current and deferred taxes for purposes of this paragraph, including the time at which such taxes are properly taken into account. (6) Adjustment with respect to disregarded entities Adjusted financial statement income shall be adjusted to take into account any adjusted financial statement income of a disregarded entity owned by the taxpayer. (7) Special rule for cooperatives In the case of a cooperative to which section 1381 applies, the adjusted financial statement income (determined without regard to this paragraph) shall be reduced by the amounts referred to in section 1382(b) (relating to patronage dividends and per-unit retain allocations) to the extent such amounts were not otherwise taken into account in determining adjusted financial statement income. (8) Rules for Alaska Native Corporations Adjusted financial statement income shall be appropriately adjusted to allow— (A) cost recovery and depletion attributable to property the basis of which is determined under section 21(c) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1620(c) ), and (B) deductions for amounts payable made pursuant to section 7(i) or section 7(j) of such Act ( 43 U.S.C. 1606(i) and 1606(j)) only at such time as the deductions are allowed for tax purposes. (9) Amounts attributable to elections for direct payment of certain credits Adjusted financial statement income shall be appropriately adjusted to disregard any amount received as a refund of taxes which is attributable to an election under section 6417. (10) Consistent treatment of mortgage servicing income of taxpayer other than a regulated investment company (A) In general Adjusted financial statement income shall be adjusted so as not to include any item of income in connection with a mortgage servicing contract any earlier than when such income is included in gross income under any other provision of this chapter. (B) Rules for amounts not representing reasonable compensation The Secretary shall provide regulations to prevent the avoidance of taxes imposed by this chapter with respect to amounts not representing reasonable compensation (as determined by the Secretary) with respect to a mortgage servicing contract. (11) Secretarial authority to adjust items The Secretary shall issue regulations or other guidance to provide for such adjustments to adjusted financial statement income as the Secretary determines necessary to carry out the purposes of this section, including adjustments— (A) to prevent the omission or duplication of any item, (B) to take into account the ownership of a member of a group by a corporation or partnership which is not a member of such group, and (C) to carry out the principles of part II of subchapter C of this chapter (relating to corporate liquidations), part III of subchapter C of this chapter (relating to corporate organizations and reorganizations), and part II of subchapter K of this chapter (relating to partnership contributions and distributions). (d) Deduction for financial statement net operating loss (1) In general Adjusted financial statement income (determined after application of subsection (c) and without regard to this subsection) shall be reduced by an amount equal to the lesser of— (A) the aggregate amount of financial statement net operating loss carryovers to the taxable year, or (B) 80 percent of adjusted financial statement income computed without regard to the deduction allowable under this subsection. (2) Financial statement net operating loss carryover A financial statement net operating loss for any taxable year shall be a financial statement net operating loss carryover to each taxable year following the taxable year of the loss. The portion of such loss which shall be carried to subsequent taxable years shall be the amount of such loss remaining (if any) after the application of paragraph (1). (3) Financial statement net operating loss defined For purposes of this subsection, the term financial statement net operating loss means the amount of the net loss (if any) set forth on the corporation’s applicable financial statement (determined after application of subsection (c) and without regard to this subsection) for taxable years ending after December 31, 2019. (e) Regulations and other guidance The Secretary shall provide for such regulations and other guidance as necessary to carry out the purposes of this section, including regulations and other guidance relating to the effect of the rules of this section on partnerships with income taken into account by an applicable corporation. . (2) Clerical amendment The table of sections for part VI of subchapter A of chapter 1 is amended by inserting after the item relating to section 56 the following new item: Sec. 56A. Adjusted financial statement income. . (c) Corporate AMT foreign tax credit Section 59 , as amended by this section, is amended by adding at the end the following new subsection: (l) Corporate AMT foreign tax credit (1) In general For purposes of this part, if an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N for any taxable year, the corporate AMT foreign tax credit for the taxable year of the applicable corporation is an amount equal to sum of— (A) the lesser of— (i) the aggregate of the applicable corporation’s pro rata share (as determined under section 56A(c)(3)) of the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States which are— (I) taken into account on the applicable financial statement of each controlled foreign corporation with respect to which the applicable corporation is a United States shareholder, and (II) paid or accrued (for Federal income tax purposes) by each such controlled foreign corporation, or (ii) the product of the amount of the adjustment under section 56A(c)(3) and the percentage specified in section 55(b)(2)(A)(i), and (B) the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States to the extent such taxes are— (i) taken into account on the applicable corporation’s applicable financial statement, and (ii) paid or accrued (for Federal income tax purposes) by the applicable corporation. (2) Carryover of excess tax paid For any taxable year for which an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N, the excess of the amount described in paragraph (1)(A)(i) over the amount described in paragraph (1)(A)(ii) shall increase the amount described in paragraph (1)(A)(i) in any of the first 5 succeeding taxable years to the extent not taken into account in a prior taxable year. (3) Regulations or other guidance The Secretary shall provide for such regulations or other guidance as is necessary to carry out the purposes of this subsection. . (d) Treatment of general business credit Section 38(c)(6)(E) is amended to read as follows: (E) Corporations In the case of a corporation— (i) the first sentence of paragraph (1) shall be applied by substituting 25 percent of the taxpayer's net income tax as exceeds $25,000 for the greater of and all that follows, (ii) paragraph (2)(A) shall be applied without regard to clause (ii)(I) thereof, and (iii) paragraph (4)(A) shall be applied without regard to clause (ii)(I) thereof. . (e) Credit for prior year minimum tax liability (1) In general Section 53(e) is amended to read as follows: (e) Application to applicable corporations In the case of a corporation— (1) subsection (b)(1) shall be applied by substituting the net minimum tax for all prior taxable years beginning after 2022 for the adjusted net minimum tax imposed for all prior taxable years beginning after 1986 , and (2) the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year. . (2) Conforming amendments Section 53(d) is amended— (A) in paragraph (2), by striking , except that in the case and all that follows through treated as zero , and (B) by striking paragraph (3). (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 138102. Excise tax on repurchase of corporate stock (a) In general Subtitle D is amended by inserting after chapter 36 the following new chapter: 37 Repurchase of corporate stock Sec. 4501. Repurchase of corporate stock. 4501. Repurchase of corporate stock (a) General rule There is hereby imposed on each covered corporation a tax equal to 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year. (b) Covered corporation For purposes of this section, the term covered corporation means any domestic corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). (c) Repurchase For purposes of this section— (1) In general The term repurchase means— (A) a redemption within the meaning of section 317(b) with regard to the stock of a covered corporation, and (B) any transaction determined by the Secretary to be economically similar to a transaction described in subparagraph (A). (2) Treatment of purchases by specified affiliates (A) In general The acquisition of stock of a covered corporation by a specified affiliate of such covered corporation, from a person who is not the covered corporation or a specified affiliate of such covered corporation, shall be treated as a repurchase of the stock of the covered corporation by such covered corporation. (B) Specified affiliate For purposes of this section, the term specified affiliate means, with respect to any corporation— (i) any corporation more than 50 percent of the stock of which is owned (by vote or by value), directly or indirectly, by such corporation, and (ii) any partnership more than 50 percent of the capital interests or profits interests of which is held, directly or indirectly, by such corporation. (3) Adjustment The amount taken into account under subsection (a) with respect to any stock repurchased by a covered corporation shall be reduced by the fair market value of any stock issued by the covered corporation during the taxable year, including the fair market value of any stock issued to employees of such covered corporation or a specified affiliate of such covered corporation during the taxable year, whether or not such stock is issued in response to the exercise of an option to purchase such stock. (d) Special rules for acquisition of stock of certain foreign corporations (1) In general In the case of an acquisition of stock of an applicable foreign corporation by a specified affiliate of such corporation (other than a foreign corporation or a foreign partnership (unless such partnership has a domestic entity as a direct or indirect partner)) from a person who is not the applicable foreign corporation or a specified affiliate of such applicable foreign corporation, for purposes of this section— (A) such specified affiliate shall be treated as a covered corporation with respect to such acquisition, (B) such acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and (C) the adjustment under subsection (c)(3) shall be determined only with respect to stock issued by such specified affiliate to employees of the specified affiliate. (2) Surrogate foreign corporations In the case of a repurchase of stock of a covered surrogate foreign corporation by such covered surrogate foreign corporation, or an acquisition of stock of a covered surrogate foreign corporation by a specified affiliate of such corporation, for purposes of this section— (A) the expatriated entity with respect to such covered surrogate foreign corporation shall be treated as a covered corporation with respect to such repurchase or acquisition, (B) such repurchase or acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and (C) the adjustment under subsection (c)(3) shall be determined only with respect to stock issued by such expatriated entity to employees of the expatriated entity. (3) Definitions For purposes of this subsection— (A) Applicable foreign corporation The term applicable foreign corporation means any foreign corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). (B) Covered surrogate foreign corporation The term covered surrogate foreign corporation means any surrogate foreign corporation (as determined under section 7874(a)(2)(B) by substituting September 20, 2021 for March 4, 2003 each place it appears) the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)), but only with respect to taxable years which include any portion of the applicable period with respect to such corporation under section 7874(d)(1). (C) Expatriated entity The term expatriated entity has the meaning given such term by section 7874(a)(2)(A). (e) Exceptions Subsection (a) shall not apply— (1) to the extent that the repurchase is part of a reorganization (within the meaning of section 368(a)) and no gain or loss is recognized on such repurchase by the shareholder under chapter 1 by reason of such reorganization, (2) in any case in which the stock repurchased is, or an amount of stock equal to the value of the stock repurchased is, contributed to an employer-sponsored retirement plan, employee stock ownership plan, or similar plan, (3) in any case in which the total value of the stock repurchased during the taxable year does not exceed $1,000,000, (4) under regulations prescribed by the Secretary, in cases in which the repurchase is by a dealer in securities in the ordinary course of business, (5) to repurchases by a regulated investment company (as defined in section 851) or a real estate investment trust, or (6) to the extent that the repurchase is treated as a dividend for purposes of this title. (f) Regulations and guidance The Secretary shall prescribe such regulations and other guidance as are necessary or appropriate to administer and to prevent the avoidance of the purposes of this section, including regulations and other guidance— (1) to prevent the abuse of the exceptions provided by subsection (e), (2) to address special classes of stock and preferred stock, and (3) for the application of the rules under subsection (d). . (b) Tax not deductible Paragraph (6) of section 275(a) is amended by inserting 37, before 41 . (c) Clerical amendment The table of chapters for subtitle D is amended by inserting after the item relating to chapter 36 the following new item: Chapter 37—Repurchase of corporate stock . (d) Effective date The amendments made by this section shall apply to repurchases (within the meaning of section 4501(c) of the Internal Revenue Code of 1986, as added by this section) of stock after December 31, 2021. B Limitations on deduction for interest expense 138111. Limitations on deduction for interest expense (a) Interest expense of certain members of international financial reporting groups Section 163 is amended by redesignating subsection (n) as subsection (p) and by inserting after subsection (m) the following new subsection: (n) Limitation on deduction of interest by certain members of international financial reporting groups (1) In general In the case of any specified domestic corporation which is a member of any international financial reporting group, the deduction under this chapter for interest paid or accrued during the taxable year in excess of the amount of interest includible in the gross income of such corporation shall not exceed the allowable percentage of 110 percent of such excess. (2) Specified domestic corporation For purposes of this subsection— (A) In general The term specified domestic corporation means any domestic corporation other than— (i) any corporation if the excess of— (I) the average amount of interest paid or accrued by such corporation during the 3-taxable-year period ending with the taxable year to which paragraph (1) applies, over (II) the average amount of interest includible in the gross income of such corporation for such 3-taxable-year period, does not exceed $12,000,000, (ii) any corporation to which paragraph (1) of section 163(j) does not apply by reason of paragraph (3) of such section (determined without regard to paragraph (4)(B) of such section), and (iii) any S corporation, real estate investment trust, or regulated investment company. (B) Aggregation rule For purposes of clauses (i) and (ii) of subparagraph (A), all domestic corporations which are members of the same international financial reporting group shall be treated as a single corporation. (C) Foreign corporations engaged in trade or business within the United States If a foreign corporation is engaged in a trade or business within the United States, such foreign corporation shall be treated as a domestic corporation with respect to the items that are effectively connected with such trade or business. (3) International financial reporting group For purposes of this subsection— (A) In general The term international financial reporting group means, with respect to any reporting year, two or more entities if— (i) either— (I) at least one entity is a foreign corporation engaged in a trade or business within the United States, or (II) at least one entity is a domestic corporation and another entity is a foreign corporation, and (ii) such entities are included in the same applicable financial statement with respect to such year. (B) Election to include eligible corporations in group (i) In general To the extent provided by the Secretary in regulations or other guidance, an international financial reporting group may elect (at such time and in such manner as the Secretary may provide) to treat all eligible corporations with respect to such group as members of such group for purposes of this subsection. As a condition of such election, all such eligible corporations must maintain (and provide access to) such books and records as the Secretary determines are satisfactory to allow for the application of this subsection with respect to such eligible corporations. Such election may be revoked only with the consent of the Secretary. (ii) Eligible corporation The term eligible corporation means, with respect to any international financial reporting group, any corporation if at least 20 percent of the stock of such corporation (determined by vote and value) is held (directly or indirectly) by members of such international financial reporting group (determined without regard to this subparagraph). (4) Allowable percentage For purposes of this subsection— (A) In general The term allowable percentage means, with respect to any specified domestic corporation for any taxable year, the ratio (expressed as a percentage and not greater than 100 percent) of— (i) such corporation’s allocable share of the international financial reporting group’s reported net interest expense for the reporting year of such group which ends in or with such taxable year of such corporation, over (ii) such corporation’s reported net interest expense for such reporting year of such group. (B) Reported net interest expense The term reported net interest expense means— (i) with respect to any international financial reporting group for any reporting year, the excess of— (I) the aggregate amount of interest expense reported in such group’s applicable financial statements for such taxable year, over (II) the aggregate amount of interest income reported in such group’s applicable financial statements for such taxable year, and (ii) with respect to any specified domestic corporation for any reporting year, the excess of— (I) the amount of interest expense of such corporation reported in the books and records of the international financial reporting group which are used in preparing such group’s applicable financial statements for such taxable year, over (II) the amount of interest income of such corporation reported in such books and records. (C) Allocable share of reported net interest expense With respect to any specified domestic corporation which is a member of any international financial reporting group, such corporation’s allocable share of such group’s reported net interest expense for any reporting year is the portion of such expense which bears the same ratio to such expense as— (i) the EBITDA of such corporation for such reporting year, bears to (ii) the EBITDA of such group for such reporting year. (D) EBITDA (i) In general The term EBITDA means, with respect to any reporting year, earnings before interest income and interest expense, taxes, depreciation, depletion, and amortization— (I) as determined in the international financial reporting group’s applicable financial statements for such year, or (II) as determined in the books and records of the international financial reporting group which are used in preparing such statements if not determined in such statements. (ii) Determination of EBITDA of a specified domestic corporation The EBITDA of any specified domestic corporation shall be determined on a stand-alone basis and without regard to any distribution received by such corporation from any other member of the international financial reporting group. (E) Special rules for non-positive EBITDA (i) Non-positive group EBITDA In the case of any international financial reporting group the EBITDA of which is zero or less, paragraph (1) shall not apply to any specified domestic corporation which is a member of such group. (ii) Non-positive entity EBITDA In the case of any specified domestic corporation the EBITDA of which is zero or less, the allowable percentage shall be 0 percent. (5) Applicable financial statement For purposes of this subsection, the term applicable financial statement has the meaning given such term in section 451(b)(3). (6) Reporting year For purposes of this subsection, the term reporting year means any year for which an applicable financial statement is prepared or required to be prepared. (7) Regulations The Secretary may issue such regulations or other guidance as are necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which— (A) allows or requires the adjustment of amounts reported on applicable financial statements, (B) allows or requires any corporation to be included or excluded as a member of any international financial reporting group for purposes of any determination or calculation under this subsection, (C) treats interest income of a controlled foreign corporation which is subpart F income, and any interest expense of such corporation which is related to subpart F income, as income and interest expense, respectively, of a specified domestic corporation for purposes of this subsection, (D) prevents the omission, inclusion, or duplication of any item or amount of interest income or interest expense, and (E) provides rules for the application of this subsection with respect to— (i) a domestic corporation that is a partner (directly or indirectly) in a partnership, (ii) a domestic corporation that owns (directly or indirectly) an interest in an entity that is fiscally transparent in one or more jurisdictions, and (iii) a foreign corporation to which this subsection applies by reason of paragraph (2)(C). . (b) Modification of application of limitation on business interest to partnerships and S corporations (1) In general Section 163(j)(4) is amended to read as follows: (4) Application to partnerships and S corporations (A) In general In the case of any partnership or S corporation, this subsection shall be applied at the partner or shareholder level, respectively. (B) Application of exemption for certain small businesses In the case of any partnership or S corporation which does not meet the gross receipts test of section 448(c) for any taxable year, paragraph (3) shall not apply with respect to any distributive, or pro rata, share of business interest and other items under this subsection of such partnership or S corporation. (C) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance— (i) for requiring or restricting the allocation of business interest and other items under this subsection, (ii) to provide for such reporting requirements as the Secretary determines appropriate, and (iii) for the application of this subsection in the case of tiered structures or trades or businesses described in paragraph (7). . (2) Conforming amendment Section 163(j)(3) is amended by inserting except to the extent provided in paragraph (4)(B) after to such taxpayer for such taxable year . (c) Carryforward of disallowed interest (1) In general Section 163 is amended by inserting after subsection (n), as added by subsection (a), the following new subsection: (o) Carryforward of certain disallowed interest The amount of any interest not allowed as a deduction for any taxable year by reason of subsection (j) or (n)(1) (whichever imposes the lower limitation with respect to such taxable year) shall be treated as interest (and as business interest for purposes of subsection (j) to the extent such amount is properly attributable to a trade or business as defined in subsection (j)(7)) paid or accrued in the succeeding taxable year. . (2) Conforming amendments (A) Section 163(j)(2) is amended to read as follows: (2) Carryforward cross-reference For carryforward treatment, see subsection (o). . (B) Section 381(c)(20) is amended to read as follows: (20) Carryforward of disallowed interest The carryover of disallowed interest described in section 163(o) to taxable years ending after the date of distribution or transfer. . (C) Section 382(d)(3) is amended to read as follows: (3) Application to carryforward of disallowed interest The term pre-change loss shall include any carryover of disallowed interest described in section 163(o) under rules similar to the rules of paragraph (1). . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. (e) Transition rule In the case of a partner’s first succeeding taxable year described in subclause (II) of section 163(j)(4)(B)(ii) of the Internal Revenue Code of 1986 (as in effect before the amendment made by subsection (b)) which begins after December 31, 2022, the amount of excess business interest which would (but for such amendment) be carried to such taxable year under such subclause shall be treated as interest (and as business interest for purposes of section 163(j) of such Code, as amended by this section) paid or accrued in such taxable year. A rule similar to the rule in the preceding sentence shall apply in the case of an S corporation and its shareholders. For carryover of any such interest disallowed for such taxable year, see section 163(o) of such Code, as amended by this section. C Outbound international provisions 138121. Modifications to deduction for foreign-derived intangible income and global intangible low-taxed income (a) In general Section 250(a) is amended to read as follows: (a) In general In the case of a domestic corporation for any taxable year, there shall be allowed as a deduction an amount equal to the sum of— (1) 24.8 percent of the foreign-derived intangible income of such domestic corporation for such taxable year, plus (2) 28.5 percent of— (A) the global intangible low-taxed income (if any) which is included in the gross income of such domestic corporation under section 951A for such taxable year, and (B) the amount treated as a dividend received by such corporation under section 78 which is attributable to the amount described in subparagraph (A). . (b) Deduction taken into account in determining net operating loss deduction Section 172(d) is amended by striking paragraph (9). (c) Certain other modifications (1) Section 250(b)(3) is amended— (A) in subparagraph (A)(i)— (i) by striking and at the end of subclause (V), (ii) by striking over at the end of subclause (VI), and (iii) by adding at the end the following new subclauses: (VII) any income described in clause (i) or (ii) of section 904(d)(2)(B), determined without regard to clause (iii)(II) thereof, (VIII) except as otherwise provided by the Secretary, any income and gain from the sale or other disposition (including the deemed sale or other deemed disposition) of property giving rise to rents or royalties derived in the active conduct of a trade or business, and (IX) any disqualified extraterritorial income, over , and (B) by adding at the end the following new subparagraph: (C) Disqualified extraterritorial income (i) In general For purposes of subparagraph (A)(i)(IX), the term disqualified extraterritorial income means any amount included in the gross income of the corporation with respect to any transaction for any taxable year if any amount could (determined after application of clause (ii) but without regard to any election under section 942(a)(3) as in effect before its repeal) be excluded from the gross income of the corporation with respect to such transaction for such taxable year by reason of section 114 pursuant to the application of subsection (d) or (f) of section 101 of the American Jobs Creation Act of 2004. (ii) Election out of extraterritorial income benefits (I) In general Except as provided in subclause (II), the corporation referred to in clause (i) may make an irrevocable election (at such time and in such form and manner as the Secretary may provide) to have subsections (d) and (f) of section 101 of the American Jobs Creation Act of 2004 not apply with respect to such corporation for the taxable year for which such election is made and all succeeding taxable years (applicable with respect to all transactions, including transactions occurring before such taxable year). (II) Expanded affiliated groups In the case of any corporation which is a member of an expanded affiliated group, the election described in subclause (I) may be made only by the common parent of such group (or, in the case of a common parent which is not required to file a return of tax under this chapter, the delegate of such common parent) and shall apply with respect to all members of such group. For purposes of the preceding sentence, the term expanded affiliated group means an affiliated group as defined in section 1504(a), determined without regard to section 1504(b)(3) and by substituting more than 50 percent for at least 80 percent each place it appears. . (C) Section 250(b)(5)(E) is amended by inserting (other than paragraph (3)(A)(i)(VIII)) after For purposes of this subsection . (2) Section 613A(d)(1) is amended by striking and at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting , and , and by inserting after subparagraph (E) the following new subparagraph: (F) any deduction allowable under section 250. . (d) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2022. (2) Certain modifications The amendments made by subsection (c) shall apply to taxable years beginning after the date of the enactment of this Act. (e) No inference regarding certain modifications The amendments made by subsection (c) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the taxable years to which such amendments apply. (f) Transition rule for accelerated percentage reduction (1) In general In the case of any taxable year which includes December 31, 2022 (other than a taxable year with respect to which such date is the last day of such taxable year)— (A) the percentage in effect under section 250(a)(1)(A) of the Internal Revenue Code of 1986 shall be treated as being equal to the sum of— (i) the pre-effective date percentage of 37.5 percent, plus (ii) the post-effective date percentage of 24.8 percent, and (B) the percentage in effect under section 250(a)(1)(B) of such Code shall be treated as being equal to the sum of— (i) the pre-effective date percentage of 50 percent, plus (ii) the post-effective date percentage of 28.5 percent. (2) Pre- and post-effective date percentages For purposes of this subsection, with respect to any taxable year— (A) the term pre-effective date percentage means the ratio that the number of days in such taxable year which are before January 1, 2023, bears to the number of days in such taxable year, and (B) the term post-effective date percentage means the ratio that the number of days in such taxable year which are after December 31, 2022, bears to the number of days in such taxable year. 138122. Repeal of election for 1-month deferral in determination of taxable year of specified foreign corporations (a) In general Section 898(c) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (b) Effective date The amendments made by this section shall apply to taxable years of specified foreign corporations beginning after November 30, 2022. (c) Transition rule In the case of a corporation that is a specified foreign corporation as of November 30, 2022, such corporation’s first taxable year beginning after such date shall end at the same time as the first required year (within the meaning of section 898(c)(1) of the Internal Revenue Code of 1986) ending after such date. If any specified foreign corporation is required by this section (or the amendments made by this section) to change its taxable year for its first taxable year beginning after November 30, 2022— (1) such change shall be treated as initiated by such corporation, (2) such change shall be treated as having been made with the consent of the Secretary, and (3) the Secretary (including the Secretary’s delegate in the case of any reference to the Secretary in this paragraph) shall issue regulations or other guidance for allocating foreign taxes that accrue in such first taxable year between such taxable year and the prior taxable year, including such adjustments as the Secretary determines are necessary or appropriate to carry out the purposes of this section. 138123. Modifications of foreign tax credit rules applicable to certain taxpayers receiving specific economic benefits (a) In general Section 901 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n) Special rules relating to dual capacity taxpayers (1) General rule Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer to a foreign country or possession of the United States for any period shall not be considered a tax— (A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or (B) to the extent such amount exceeds the amount which would be paid or accrued by such dual capacity taxpayer under the generally applicable income tax imposed by such country or possession if such taxpayer were not a dual capacity taxpayer. Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B). (2) Dual capacity taxpayer For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who— (A) is subject to a levy of such country or possession, and (B) receives (or will receive) directly or indirectly a specific economic benefit from such country or possession (or any political subdivision, agency, or instrumentality thereof). (3) Generally applicable income tax For purposes of this subsection, the term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession of the United States on residents of such foreign country or possession that are not dual capacity taxpayers. . (b) Effective date The amendments made by this section shall apply to amounts paid or accrued after December 31, 2021. 138124. Modifications to foreign tax credit limitations (a) Country-by-country application of limitation on foreign tax credit based on taxable units (1) In general Section 904 is amended by inserting after subsection (d) the following new subsection: (e) Country-by-country application based on taxable units (1) In general Subsection (d) (and the provisions of this title referred to in paragraph (1) of such subsection) shall be applied separately with respect to each country by taking into account the aggregate income properly attributable or otherwise allocable to a taxable unit of the taxpayer which is a tax resident of (or, in the case of a branch, is located in) such country. (2) Taxable units (A) In general Except as otherwise provided by the Secretary, each item shall be attributable or otherwise allocable to exactly one taxable unit of the taxpayer. (B) Determination of taxable units Except as otherwise provided by the Secretary, the taxable units of a taxpayer are as follows: (i) General taxable unit The person that is the taxpayer and that is not otherwise described in a separate clause of this subparagraph. (ii) Certain foreign corporations Each foreign corporation with respect to which the taxpayer is a United States shareholder. (iii) Interests in pass-through entities Each interest held (directly or indirectly) by the taxpayer or any controlled foreign corporation referred to in clause (ii) in a pass-through entity if such pass-through entity is a tax resident of a country other than the country with respect to which such taxpayer or controlled foreign corporation (as the case may be) is a tax resident. (iv) Branches Each branch (or portion thereof) the activities of which are directly or indirectly carried on by the taxpayer or any controlled foreign corporation referred to in clause (ii) and which give rise to a taxable presence in a country other than the country with respect to which such taxpayer or controlled foreign corporation (as the case may be) is a tax resident. (3) Definitions and special rules For purposes of this subsection— (A) Tax resident Except as otherwise provided by the Secretary, the term tax resident means a person or entity subject to tax under the tax law of a country as a resident. If an entity is organized under the law of a country, or resident in a country, that does not impose an income tax with respect to such entities, such entity shall, except as provided by the Secretary, be treated as subject to tax under the tax law of such country for the purposes of the preceding sentence. (B) Pass-through entity Except as otherwise provided by the Secretary, the term pass-through entity includes any partnership or other entity to the extent that income, gain, deduction, or loss of the entity is taken into account in determining the income or loss of a person that owns (directly or indirectly) an interest in such entity. (C) Branch Except as otherwise provided by the Secretary, the term branch means a taxable presence of a tax resident in a country other than its country of residence as determined under such other country’s tax law. The Secretary shall provide regulations or other guidance applying such term to activities in a country that do not give rise to a taxable presence. (D) Treatment of fiscally autonomous jurisdictions Any fiscally autonomous jurisdiction shall be treated as a separate country. Any possession of the United States shall also be treated as a separate country. (E) Possession of the United States The term possession of the United States means each of American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands. (4) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out, or prevent avoidance of, the purposes of this subsection, including regulations or other guidance— (A) providing for the application of this subsection to an entity or arrangement that is considered a tax resident of more than one country or of no country, (B) providing for the application of this subsection to hybrid entities or hybrid transactions (as such terms are used for purposes of section 267A), pass-through entities, passive foreign investment companies, trusts, and other entities or arrangements not otherwise described in this subsection, and (C) providing for the assignment of any item (including foreign taxes and deductions) to taxable units, including in the case of amounts not otherwise taken into account in determining taxable income under this chapter. . (2) Application of separate limitation losses with respect to global intangible low-taxed income (A) In general Section 904(f)(5)(B) is amended to read as follows: (B) Allocation of losses Except as otherwise provided in this subparagraph, the separate limitation losses for any taxable year (to the extent such losses do not exceed the separate limitation incomes for such year) shall be allocated among (and operate to reduce) such incomes on a proportionate basis. In the case of a separate limitation loss for any taxable year in any category other than subparagraph (d)(1)(A), the amount of such separate limitation loss shall be allocated among (and operate to reduce) separate limitation income in any category other than income described in subparagraph (d)(1)(A) on a proportionate basis (without regard to income described in subparagraph (d)(1)(A)). The remaining separate limitation losses may reduce separate limitation income described in subparagraph (d)(1)(A) only to the extent that the aggregate amount of such losses exceeds the aggregate amount of separate limitation incomes (other than income described in subparagraph (d)(1)(A)) for such taxable year. . (B) Income category Section 904(f)(5)(E)(i) is amended to read as follows: (i) Income category The term income category means each category of income with respect to which this section is required to be applied separately by reason of any provision of this title. . (C) Separate limitation loss Section 904(f)(5)(E)(iii) is amended to read as follows: (iii) Separate limitation loss The term separate limitation loss means, with respect to any income category, the amount by which the gross income from sources outside the United States is exceeded by the sum of the deductions properly allocated and apportioned thereto. . (b) Repeal of separate application to foreign branch income (1) In general Section 904(d)(1) is amended by striking subparagraph (B) and redesignating subparagraphs (C) and (D) as subparagraph (B) and (C). (2) Coordination with deduction for foreign-derived intangible income Section 250(b)(3)(A) is amended— (A) by striking subclause (VI) of clause (i) and inserting the following new subclause: (VI) the income which is attributable to 1 or more branches (within the meaning of section 904(e)(3)(C)) or pass-through entities (within the meaning of section 904(e)(3)(B)) in 1 or more foreign countries, over , and (B) by adding at the end the following flush sentence: For purposes of clause (i)(VI), the amount of income attributable to a branch or pass-through entity shall be determined under rules established by the Secretary. . (3) Amendments (A) Section 904(d)(2)(A)(ii) is amended by striking , foreign branch income, . (B) Section 904(d)(2)(H) is amended to read as follows: (H) Treatment of income tax base differences The Secretary shall issue regulations or other guidance assigning to the proper category of income any tax imposed under the law of a foreign country or possession of the United States on an amount which does not constitute income under United States tax principles. . (C) Section 904(d)(2) is amended by striking subparagraph (J). (c) Modification of foreign tax credit carryback and carryforward (1) Repeal of carryback Section 904(c) is amended— (A) by striking in the first preceding taxable year, and , (B) by striking preceding or each place it appears, and (C) by striking Carryback and in the heading thereof. (2) Application to limitation on foreign oil and gas taxes Section 907(f)(1) is amended by striking in the first preceding taxable year and . (3) Application of carryforward to taxes on global intangible low-taxed income (A) In general Section 904(c) is amended by striking the last sentence. (B) Temporary limitation of carryforward to 5 taxable years Section 904(c), as amended by the preceding provisions of this Act, is amended— (i) by striking Any amount by which all taxes and all that precedes it and inserting the following: (c) Carryback and carryover of excess tax paid (1) In general Any amount by which all taxes , and (ii) by adding at the end the following new paragraph: (2) Temporary limitation on carryforward of taxes on global intangible low-taxed income (A) In general In the case of taxes paid or accrued with respect to amounts described in subsection (d)(1)(A), paragraph (1) shall be applied by substituting 5 succeeding taxable years for 10 succeeding taxable years . (B) Termination Subparagraph (A) shall not apply to any tax paid or accrued in a taxable year beginning after December 31, 2030. . (d) Treatment of certain tax-exempt dividends (1) Certain tax-exempt dividends taken into account in applying limitations on foreign tax credits Section 904(b) is amended by striking paragraph (4). (2) Certain tax-exempt dividends not taken into account in allocating interest expense Section 864(e)(3) is amended by striking or 245(a) and inserting , 245(a), or 245A . (e) Rules for allocation of certain deductions to foreign source global intangible low-taxed income for purposes of foreign tax credit limitation Section 904(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (4) Deductions treated as allocable to foreign source global intangible low-taxed income In the case of a domestic corporation and solely for purposes of the application of subsection (a) with respect to amounts described in subsection (d)(1)(A), the taxpayer’s taxable income from sources without the United States shall be determined— (A) by allocating and apportioning any deduction allowed under section 250(a)(2) (and any deduction allowed under section 164(a)(3) for taxes imposed on amounts described in section 250(a)(2)) to such income, and (B) by allocating and apportioning any other deduction to such income only if the Secretary determines that such deduction is directly allocable to such income. Any deduction which would (but for subparagraph (B)) have been allocated or apportioned to such income shall only be allocated or apportioned to income which is from sources within the United States. . (f) Treatment of certain asset dispositions Section 904(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (5) Treatment of certain asset dispositions (A) In general Except as otherwise provided by the Secretary, in the case of any covered asset disposition, the principles of section 338(h)(16) shall apply in determining the source and character of any item for purposes of this part. (B) Covered asset disposition For purposes of this paragraph, the term covered asset disposition means any transaction which— (i) is treated as a disposition of assets under subchapter N of this chapter, and (ii) is treated as a disposition of stock of a corporation (or is disregarded) for purposes of the tax laws of a relevant foreign country or possession of the United States. (C) Regulations The Secretary shall issue such regulations or other guidance as is necessary or appropriate to carry out, or to prevent the avoidance of, the purposes of this paragraph. . (g) Redetermination of foreign taxes and related claims (1) In general Section 905(c) is amended— (A) in paragraph (1), by striking or at the end of subparagraph (B) and by inserting after subparagraph (C) the following new subparagraphs: (D) the taxpayer makes a timely change in its choice to claim a credit or deduction for taxes paid or accrued, or (E) there is any other change in the amount, or treatment, of taxes, which affects the taxpayer’s tax liability under this chapter, , (B) in paragraph (2)(B), by striking Any such taxes and inserting Except as otherwise provided by the Secretary, any such taxes , and (C) by striking accrued in the heading thereof. (2) Modification to time for claiming credit or deduction Section 901(a) is amended by striking the second sentence and inserting the following: Such choice for any taxable year may be made or changed at any time before the expiration of the applicable period prescribed by section 6511 for making a claim for credit or refund of an overpayment of the tax imposed by this chapter for such taxable year that is attributable to such amounts. . (3) Modification to special period of limitation Section 6511(d)(3) is amended— (A) in subparagraph (A)— (i) by inserting a change in the liability for before any taxes paid or accrued , (ii) by striking actually paid and inserting paid (or deemed paid under section 960) , and (iii) by inserting change in the liability for before foreign taxes in the heading thereof, and (B) in subparagraph (B), by striking the allowance of a credit for the taxes and inserting the allowance of an additional credit by reason of the change in liability for the taxes . (h) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2022. (2) Modification of foreign tax credit carryback and carryforward The amendments made by subsection (c) shall apply to taxes paid or accrued in taxable years beginning after December 31, 2022. (3) Treatment of certain asset dispositions (A) In general The amendment made by subsection (f) shall apply to transactions after the date of the enactment of this Act. (B) Binding contract exception The amendment made by subsection (f) shall not apply to any transaction which is made pursuant to a written binding contract which was in effect on September 13, 2021, and is not modified in any material respect thereafter. (4) Redetermination of foreign taxes and related claims (A) In general Except as otherwise provided in this paragraph, the amendments made by subsection (g) shall apply to taxes paid or accrued in taxable years beginning after December 31, 2021. (B) Certain changes The amendments made by subparagraphs (A) and (C) of subsection (g)(1) shall apply to changes that occur on or after the date which is 60 days after the date of the enactment of this Act. (C) Modification to special period of limitation The amendments made by subsection (g)(3) shall apply to taxes paid, accrued, or deemed paid in taxable years beginning after December 31, 2021. (i) Regulations The Secretary shall issue regulations or other guidance providing for the application of subsections (d), (e), (f), and (g) of section 904 of the Internal Revenue Code of 1986 (as amended by this section) with respect to amounts carried over under subsections (c), (f), or (g) from a taxable year with respect to which subsection (e) of such section does not apply to a taxable year with respect to which such subsection (e) does apply and from a taxable year with respect to which subsection (d)(1)(B) of such section (determined without regard to the amendments made by this section) applies to a taxable year with respect to which such section does not apply. 138125. Foreign oil and gas extraction income and foreign oil related income to include oil shale and tar sands (a) In general Paragraphs (1)(A) and (2)(A) of section 907(c) are each amended by inserting (or oil shale or tar sands) after oil or gas wells . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138126. Modifications to inclusion of global intangible low-taxed income (a) Country-by-country application of section based on CFC taxable units Section 951A is amended by adding at the end the following new subsection: (g) Country-by-country application of section based on CFC taxable units (1) In general If any CFC taxable unit of a United States shareholder is a tax resident of (or, in the case of a branch, is located in) a country which is different from the country with respect to which any other CFC taxable unit of such United States shareholder is a tax resident (or, in the case of a branch, is located in)— (A) such shareholder’s global intangible low-taxed income for purposes of subsection (a) shall be the sum of the amounts of global intangible low-taxed income determined separately with respect to each such country, and (B) for purposes of determining such separate amounts of global intangible low-taxed income— (i) except as otherwise provided by the Secretary, any reference in subsection (b), (c), or (d) to a controlled foreign corporation of such shareholder shall be treated as reference to a CFC taxable unit of such shareholder, and (ii) net CFC tested income, net deemed tangible income return, qualified business asset investment, interest expense described in subsection (b)(2)(B), and such other items and amounts as the Secretary may provide, shall be determined separately with respect to each such country by determining such amounts with respect to the CFC taxable units of such shareholder which are a tax resident of such country. (2) Definitions For purposes of this subsection— (A) CFC taxable unit The term CFC taxable unit means any taxable unit described in clause (ii), (iii), or (iv) of section 904(e)(2)(B), determined— (i) by substituting Each controlled foreign corporation for Each foreign corporation in clause (ii) of such section, and (ii) without regard to the references to the taxpayer in clauses (iii) and (iv) of such section. (B) Application of other definitions Terms used in this subsection which are also used in section 904(e) shall have the same meaning as when used in section 904(e). (3) Special rules For purposes of this subsection— (A) Application of certain rules Except as otherwise provided by the Secretary, rules similar to the rules of section 904(e) shall apply. (B) Allocation of global intangible low-taxed income to controlled foreign corporations Except as otherwise provided by the Secretary, subsection (f)(2) shall be applied separately with respect to each CFC taxable unit. . (b) Regulatory authority (1) In general Section 951A , as amended by subsection (a), is amended by adding at the end the following new subsection: (h) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out, or prevent the avoidance of, the purposes of this section, including regulations or guidance which provide for— (1) the treatment of property if such property is transferred, or held, temporarily, (2) the treatment of property if the avoidance of the purposes of this section is a factor in the transfer or holding of such property, (3) appropriate adjustments to the basis of stock and other ownership interests, and to earnings and profits, to reflect tested losses (whether or not taken into account in determining global intangible low-taxed income), (4) rules similar to the rules provided under the regulations or guidance issued under section 904(e)(4), (5) other appropriate basis adjustments, (6) appropriate adjustments to be made, and appropriate tax attributes and records to be maintained, separately with respect to CFC taxable units, and (7) appropriate adjustments in determining tested income or tested loss if property is transferred between related parties or amounts are paid or accrued between related parties. . (2) Conforming amendment Section 951A(d) is amended— (A) by striking paragraph (4), and (B) by redesignating the second paragraph (3) (relating to partnership property) as paragraph (4). (c) Carryover of net CFC tested loss (1) In general Section 951A(c) is amended by adding at the end the following new paragraph: (3) Carryover of net CFC tested loss (A) In general If the amount described in paragraph (1)(B) with respect to any United States shareholder for any taxable year of such United States shareholder (determined after the application of this paragraph with respect to amounts arising in preceding taxable years) exceeds the amount described in paragraph (1)(A) with respect to such shareholder of such taxable year, the amount otherwise described in paragraph (1)(B) with respect to such shareholder for the succeeding taxable year shall be increased by the amount of such excess. (B) Proper adjustment in allocations of global intangible low-taxed income to controlled foreign corporations Proper adjustments shall be made in the application of subsection (f)(2)(B) to take into account any decrease in global intangible low-taxed income by reason of the application of subparagraph (A). . (2) Coordination with country-by-country application Section 951A(g)(1)(B)(ii), as added by subsection (a), is amended by inserting any increase determined under subsection (c)(3)(A), after interest expense described in subsection (b)(2)(B), . (3) Application of rules with respect to ownership changes Section 382(d) is amended by adding at the end the following new paragraph: (4) Application to carryover of net CFC tested loss The term pre-change loss shall include any excess carried over under section 951A(c)(3) under rules similar to the rules of paragraph (1). . (d) Reduction in net deemed tangible income return for purposes of determining global intangible low-taxed income (1) In general Section 951A(b)(2)(A) is amended by striking 10 percent and inserting 5 percent . (2) Application to assets located in possessions of the United States Section 951A(b) is amended by adding at the end the following new paragraph: (3) Application to assets located in possessions of the United States In the case of any specified tangible property located in a possession of the United States, paragraph (2)(A) and subsection (d) shall be applied by substituting 10 percent for 5 percent in paragraph (2)(A). . (e) Inclusion of foreign oil and gas extraction income in determining tested income and loss Section 951A(c)(2)(A)(i) is amended by inserting and at the end of subclause (III), by striking and at the end of subclause (IV) and inserting over , and by striking subclause (V). (f) Coordination with other provisions Section 951A(f)(1) is amended by adding at the end the following new subparagraph: (C) Treatment of certain references Except as otherwise provided by the Secretary, references to section 951 or section 951(a) in sections 959, 961, 962, and such other provisions as the Secretary may identify shall include references to section 951A or section 951A(a), respectively. . (g) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2022, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (2) Regulatory authority and coordination with other provisions The amendments made by subsections (b) and (f) shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (h) No inference regarding certain modifications The amendments made by subsections (b) and (f) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the taxable years to which such amendments apply. 138127. Modifications to determination of deemed paid credit for taxes properly attributable to tested income (a) Increase in deemed paid credit Section 960(d)(1) is amended by striking 80 percent and inserting 95 percent (100 percent in the case of tested foreign income taxes paid or accrued to a possession of the United States) . (b) Inclusion of taxes properly attributable to tested loss (1) In general Section 960(d)(3) is amended to read as follows: (3) Tested foreign income taxes For purposes of paragraph (1), the term tested foreign income taxes means, with respect to any domestic corporation which is a United States shareholder of a controlled foreign corporation— (A) the foreign income taxes paid or accrued by such foreign corporation which are properly attributable to the tested income or tested loss of such foreign corporation taken into account by such domestic corporation under section 951A, and (B) solely to the extent provided in regulations prescribed by the Secretary, the foreign income taxes (as so defined) paid or accrued by a foreign corporation (other than a controlled foreign corporation) which owns, directly or indirectly, 80 percent or more (by vote or value) of the stock in such domestic corporation but only if— (i) such foreign income taxes are properly attributable to amounts of such controlled foreign corporation taken into account in determining tested income or tested loss under section 951A(c)(2), and (ii) no credit is allowed, in whole or in part, for such foreign taxes in any foreign jurisdiction. . (2) Conforming amendment Section 960(d)(2)(B) is amended by striking the aggregate amount described in section 951A(c)(1)(A) and inserting the net CFC tested income (as defined in section 951A(c)(1)) . (c) Application of foreign tax credit limitation to amounts included under section 78 (1) Section 904(d)(2) is amended by redesignating subparagraph (K) as subparagraph (L) and by inserting after subparagraph (J) the following new subparagraph: (K) Amounts includible under section 78 Any amount includible in gross income under section 78 shall be treated as income in the same separate category as the related foreign taxes deemed paid. . (2) Section 904(d)(3)(G) is amended by striking the second sentence and inserting the following: Any amount included in gross income under section 78 shall not be treated as a dividend. . (d) Disallowance of foreign tax credit with respect to distributions of previously taxed global intangible low-taxed income Section 960(d) is amended by adding at the end the following new paragraph: (4) Disallowance of foreign tax credit with respect to distributions of previously taxed global intangible low-taxed income No credit shall be allowed under section 901 for 20 percent of any foreign income taxes paid or accrued (or deemed paid under section 960(b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a). . (e) Modification of disallowance of foreign tax credit respect to distributions of previously taxed global intangible low-taxed income Section 960(d)(4), as added by subsection (d), is amended by striking 20 percent and inserting 5 percent . (f) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2022, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (2) Subsections ( c ) and ( d ) The amendments made by subsections (c) and (d) shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (g) No inference regarding certain modifications The amendments made by subsections (c) and (d) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the taxable years to which such amendments apply. 138128. Deduction for foreign source portion of dividends limited to controlled foreign corporations, etc (a) In general Section 245A is amended— (1) in subsections (a), (c)(1), and (c)(2), by striking specified 10-percent owned foreign corporation each place it appears and inserting controlled foreign corporation , and (2) by striking subsection (b). (b) Modifications related to determination of status as a controlled foreign corporation (1) Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951A the following new section: 951B. Amounts included in gross income of foreign controlled United States shareholders (a) In general In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation— (1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)— (A) by substituting foreign controlled United States shareholder for United States shareholder each place it appears therein, and (B) by substituting foreign controlled foreign corporation for controlled foreign corporation each place it appears therein, and (2) section 951A shall be applied with respect to such shareholder — (A) by treating each reference to United States shareholder in such sections as including a reference to such shareholder, and (B) by treating each reference to controlled foreign corporation in such sections as including a reference to such foreign controlled foreign corporation. (b) Foreign controlled United States shareholder For purposes of this section, the term foreign controlled United States shareholder means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if— (1) section 951(b) were applied by substituting more than 50 percent for 10 percent or more , and (2) section 958(b) were applied without regard to paragraph (4) thereof. (c) Foreign controlled foreign corporation For purposes of this section, the term foreign controlled foreign corporation means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a)(1) were applied— (1) by substituting foreign controlled United States shareholders for United States shareholders , and (2) by substituting section 958(b) (other than paragraph (4) thereof) for section 958(b) . (d) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance— (1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart, and (2) to prevent the avoidance of the purposes of this section. . (2) Section 957(a) is amended to read as follows: (a) Controlled foreign corporation For purposes of this title— (1) In general The term controlled foreign corporation means any foreign corporation if more than 50 percent of— (A) the total combined voting power of all classes of stock of such corporation entitled to vote, or (B) the total value of the stock of such corporation, is owned (within the meaning of section 958(a)), or is considered as owned by applying the rules of ownership of section 958(b), by United States shareholders on any day during the taxable year of such foreign corporation. (2) Election to treat a foreign corporation as a controlled foreign corporation for certain purposes (A) In general In the case of a foreign corporation with respect to which an election is in effect under this paragraph, such foreign corporation shall be treated as a controlled foreign corporation for purposes of this title. (B) Exceptions Notwithstanding any other provision of this paragraph, a foreign corporation shall not be treated as a controlled foreign corporation by reason of this paragraph for purposes of any provision of this title if the Secretary determines that treatment of such foreign corporation as a controlled foreign corporation for purposes of such provision would be inconsistent with the purposes of this subchapter. (C) Election (i) By whom An election under subparagraph (A) shall be effective only if made by the foreign corporation and by all United States shareholders of such foreign corporation (determined as of the time of such election by such foreign corporation). (ii) With respect to whom Any election under this paragraph, once effective, shall apply to such foreign corporation and to all United States shareholders of such foreign corporation (including any person who becomes a United States shareholder of such foreign corporation after such election takes effect). (iii) Time, manner, etc The election under this paragraph shall be made at such time and in such manner as the Secretary may provide and, once effective, may be revoked only with the consent of the Secretary. (D) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this paragraph, including regulations or other guidance for the application of this paragraph to an acquisition described in section 381(a) with respect to any corporation to which an election under this paragraph applies. . (3) Section 958(b) is amended— (A) by inserting after paragraph (3) the following: (4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person. , and (B) by striking Paragraph (1) in the last sentence and inserting Paragraphs (1) and (4) . (4) Section 959(b) is amended— (A) by striking the earnings and profits of a controlled foreign corporation and inserting the earnings and profits of a foreign corporation , (B) by striking another controlled foreign corporation and inserting a controlled foreign corporation , (C) by striking such other controlled foreign corporation and inserting such controlled foreign corporation , and (D) by striking of such United States shareholder in the controlled foreign corporation and inserting of such United States shareholder in the foreign corporation . (5) The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item: Sec. 951B. Amounts included in gross income of foreign controlled United States shareholders. . (c) Certain other modifications (1) Section 245A(e)(4) is amended by striking an amount received and all that follows through for which the controlled foreign corporation received a deduction and inserting any dividend received from a controlled foreign corporation for which such controlled foreign corporation received a deduction . (2) Section 245A(g) is amended to read as follows: (g) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance for— (1) the treatment of United States shareholders owning stock of a controlled foreign corporation through a partnership, and (2) the denial of all or a portion of the deduction under this section with respect to dividends received from foreign corporations in situations in which— (A) any portion of the dividend is out of earnings and profits arising from transactions with related parties which— (i) do not occur in the ordinary course of a trade or business, and (ii) occur on or after January 1, 2018, and during a taxable year to which section 951A did not apply, or (B) a transfer or issuance of stock on or after January 1, 2018, results in a reduction in a United States shareholder’s pro rata share of a controlled foreign corporation’s subpart F income or tested income (as defined in section 951A). . (d) Conforming amendments (1) Section 91 is amended— (A) in subsection (a), by striking specified 10-percent owned foreign corporation (as defined in section 245A) and inserting controlled foreign corporation , and (B) in subsection (e), by striking specified 10-percent owned foreign corporation and inserting controlled foreign corporation . (2) (A) The heading of section 245A is amended by striking specified 10-percent owned foreign corporations and inserting controlled foreign corporations . (B) The item relating to section 245A in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking specified 10-percent owned foreign corporations and inserting controlled foreign corporations . (3) Section 246(c)(5) is amended— (A) in subparagraph (B), by striking specified 10-percent owned foreign corporation each place it appears and inserting controlled foreign corporation , and (B) by striking specified 10-percent owned foreign corporation in the heading and inserting controlled foreign corporation . (4) Section 904 is amended— (A) in subsection (b)(4), by striking specified 10-percent owned foreign corporation both places it appears and inserting controlled foreign corporation , and (B) in subsection (d)(2)(E)— (i) in clause (i)(I), by striking (as defined in section 245A(b)) , and (ii) by redesignating clause (ii) as clause (iii) and by inserting after clause (i) the following new clause: (ii) Specified 10-percent owned foreign corporation For purposes of this subparagraph— (I) In general The term specified 10-percent owned foreign corporation means any foreign corporation with respect to which any domestic corporation is a United States shareholder with respect to such corporation. (II) Exclusion of passive foreign investment companies Such term shall not include any corporation which is a passive foreign investment company (as defined in section 1297) with respect to the shareholder and which is not a controlled foreign corporation. . (5) Section 909(b) is amended by striking (as defined in section 245A(b) without regard to paragraph (2) thereof) and inserting (as defined in section 904(d)(2)(E)(ii) without regard to subclause (II) thereof) . (6) Section 961(d) is amended— (A) by striking specified 10-percent owned foreign corporation (as defined in section 245A) and inserting controlled foreign corporation , and (B) by striking specified 10-percent owned foreign corporation in the heading and inserting controlled foreign corporation . (e) Effective dates (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to distributions made after the date of the enactment of this Act. (2) Modifications related to determination of status as a controlled foreign corporation The amendments made by subsection (b) shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and taxable years of United States persons in which or with which such taxable years of foreign corporations end. (f) No inference regarding certain modifications The amendments made by subsections (b)(1), (b)(3), (b)(5), and (c) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to distributions made, or taxable years beginning, respectively, before the distributions or taxable years, respectively, to which such amendments apply. 138129. Limitation on foreign base company sales and services income (a) Foreign base company sales income (1) In general Section 954(d)(2) is amended to read as follows: (2) Limitation and regulatory authority (A) In general For purposes of this subsection, the term related person shall not include any person unless such person is— (i) a taxable unit which is a tax resident of (or, in the case of a branch, is located in) the United States, or (ii) is subject to tax under this chapter by reason of such person’s activities in the United States. (B) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection (and subsection (e)), including— (i) regulations or other guidance providing for the proper application of subparagraph (A) in the case of a transaction (or series of transactions) in which a person described in subparagraph (A) is a party, and (ii) regulations or other guidance providing that a pass-through entity or branch held directly or indirectly by a controlled foreign corporation (whether tax resident or located inside or outside the country in which the controlled foreign corporation is a tax resident) shall be treated as a wholly owned subsidiary of the controlled foreign corporation. (C) Certain terms Any term used in this subsection or subsection (e) which is also used in section 904(e) shall have the same meaning as when used in such section. . (2) Conforming amendment Section 954(d)(1)(A) is amended by striking under the laws of which the controlled foreign corporation is created or organized and inserting in which the controlled foreign corporation is a tax resident . (b) Foreign base company services income (1) In general Section 954(e)(1)(A) is amended by striking subsection (d)(3) and inserting subsection (d) . (2) Conforming amendment Section 954(e)(1)(B) is amended by striking under the laws of which the controlled foreign corporation is created or organized and inserting in which the controlled foreign corporation is a tax resident . (c) Certain other modifications (1) Section 78 is amended by striking , (b), . (2) (A) Section 951(a) is amended to read as follows: (a) Amounts included (1) In general If a foreign corporation is a controlled foreign corporation on any day during a taxable year, every person who is a United States shareholder of such corporation, and who owns (within the meaning of section 958(a)) stock in such corporation on any such day, shall include in such shareholder’s gross income for such shareholder’s taxable year in which or with which such taxable year of such corporation ends— (A) his pro rata share (determined under paragraph (2)) of the corporation’s subpart F income for such year, and (B) if such shareholder owns (within the meaning of section 958(a)) stock of such foreign corporation as of the close of the last relevant day of such foreign corporation’s taxable year, the amount determined under section 956 with respect to such shareholder for such year (but only to the extent not excluded from gross income under section 959(a)(2)). (2) Pro rata share of subpart F income In the case of any United States shareholder with respect to a foreign corporation, the pro rata share referred to in paragraph (1)(A) is the sum of— (A) if such shareholder owns (within the meaning of section 958(a)) stock of such foreign corporation as of the close of the last relevant day of such foreign corporation’s taxable year, such shareholder’s general pro rata share determined under paragraph (3), plus (B) if such shareholder owns (within the meaning of section 958(a)) stock of such foreign corporation during such taxable year but does not own (within the meaning of section 958(a)) such stock as of the close of such last relevant day, such shareholder’s nontaxed current dividend share determined under paragraph (4). (3) General pro rata share (A) In general In the case of any United States shareholder with respect to a foreign corporation, the general pro rata share determined under this paragraph is the excess (if any) of— (i) the pro rata current earnings percentage of the amount which bears the same ratio to such corporation’s subpart F income for the taxable year (reduced by the aggregate nontaxed current dividend shares determined under paragraph (4) with respect to such shareholder or any other United States shareholder) as the part of such year during which such corporation is a controlled foreign corporation bears to the entire year, over (ii) the lesser of— (I) the amount of any pre-holding period dividends with respect to stock of such foreign corporation which such shareholder owns (within the meaning of section 958(a)) as of the close of the last relevant day of such foreign corporation’s taxable year, or (II) the amount which bears the same ratio to the subpart F income of such corporation for the taxable year (reduced by the aggregate nontaxed current dividend shares determined under paragraph (4) with respect to such shareholder or any other United States shareholder) as the part of such year during which such shareholder did not own (within the meaning of section 958(a)) such stock bears to the entire year. (B) Pro rata current earnings percentage For purposes of subparagraph (A)(i), the term pro rata current earnings percentage means, in the case of any United States shareholder with respect to a foreign corporation for any taxable year of such foreign corporation, the ratio (expressed as a percentage) of— (i) the amount which would have been distributed with respect to the stock which such shareholder owns (within the meaning of section 958(a)) in such corporation if on the last relevant day of such taxable year it had distributed its earnings and profits for such taxable year (computed as of the close of such taxable year without diminution by reason of any distributions made during such taxable year), divided by (ii) such corporation’s earnings and profits for such taxable year (as so computed). (C) Pre-holding period dividends For purposes of subparagraph (A)(ii)(I), the term pre-holding period dividends means, in the case of any United States shareholder with respect to a foreign corporation for any taxable year of such foreign corporation, dividends which are— (i) made out of such corporation’s earnings and profits for the taxable year (other than nontaxed current dividends as defined in paragraph (4)(C)), and (ii) received— (I) by any other United States person with respect to stock of such foreign corporation which such shareholder owns (within the meaning of section 958(a)) as of the close of the last relevant day of such foreign corporation’s taxable year, and (II) while such foreign corporation was a controlled foreign corporation and before such shareholder owned (within the meaning of section 958(a)) such stock. (4) Nontaxed current dividend share (A) In general In the case of any United States shareholder with respect to a foreign corporation, the nontaxed current dividend share determined under this paragraph is the nontaxed current dividend percentage of the subpart F income of such foreign corporation for the taxable year. (B) Nontaxed current dividend percentage For purposes of this paragraph, the term nontaxed current dividend percentage means, in the case of any United States shareholder with respect to a foreign corporation for any taxable year of such foreign corporation, the ratio (expressed as a percentage) of— (i) the amount of nontaxed current dividends with respect to such taxable year received with respect to the stock of such foreign corporation which such shareholder owns (within the meaning of section 958(a)) at the time of the dividend on a day in which such corporation is a controlled foreign corporation, divided by (ii) such foreign corporation’s earnings and profits for such taxable year (computed as of the close of such taxable year without diminution by reason of any distributions made during such taxable year). (C) Nontaxed current dividends For purposes of this paragraph, the term nontaxed current dividends means the portion of any amount received with respect to stock to the extent such amount (without regard to amounts included in the gross income of a United States shareholder for the taxable year by reason of this subpart)— (i) would result in a dividend out of the corporation’s earnings and profits for the taxable year (including a dividend under section 1248 attributable to earnings and profits for the taxable year), and (ii) either— (I) would give rise to a deduction under section 245A(a), or (II) in the case of a dividend paid directly or indirectly to a controlled foreign corporation with respect to stock owned by the shareholder within the meaning of section 958(a)(2), would not result in subpart F income with respect to such controlled foreign corporation by reason of subsection (b)(4), (c)(3), or (c)(6) of section 954. (5) Last relevant day of taxable year of a controlled foreign corporation For purposes of this subsection, the term last relevant day means, with respect to any taxable year of a foreign corporation, the last day of such taxable year on which such corporation is a controlled foreign corporation. (6) Regulations The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance— (A) to treat a partnership as an aggregate of its partners, (B) to provide rules allowing a foreign corporation to close its taxable year upon a change in ownership, and (C) to treat a distribution followed by an issuance of stock to a shareholder not subject to tax under this chapter in the same manner as an acquisition of stock. . (B) Section 951A(a) is amended to read as follows: (a) In general If a foreign corporation is a controlled foreign corporation on any day during a taxable year, every person who is a United States shareholder of such corporation, and who owns (within the meaning of section 958(a)) stock in such corporation on any such day, shall include in such shareholder’s gross income for such shareholder’s taxable year in which or with which such taxable year of such corporation ends, such shareholder’s global intangible low-taxed income for such taxable year. . (C) Section 951A(e) is amended to read as follows: (e) Determination of pro rata shares For purposes of this section, the pro rata shares referred to in subsections (b), (c)(1)(A), and (c)(1)(B), respectively, shall be determined under rules similar to the rules of section 951(a)(2) and shall be taken into account in the taxable year of the United States shareholder in which or with which the taxable year of the controlled foreign corporation ends. . (D) Section 953(c)(5)(A)(i) is amended— (i) in subclause (I), by adding and at the end, (ii) in subclause (II)— (I) by striking on the last day of the taxable year and inserting during the taxable year , and (II) by striking and at the end and inserting or , and (iii) by striking subclause (III). (3) Section 959 is amended by adding at the end the following: (g) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section. . (4) Section 961(b)(1) is amended by inserting after the first sentence the following: The Secretary shall prescribe such other reductions to basis as are necessary or appropriate to carry out the purposes of this section. . (5) Section 961(c) is amended— (A) by striking Basis adjustments in in the heading of such subsection and inserting Application of rules to , and (B) by striking then adjustments similar to and all that follows in such subsection and inserting then rules similar to the rules of subsections (a) and (b) shall apply to— (1) such stock, (2) stock in any other controlled foreign corporation by reason of which the United States shareholder is considered under section 958(a)(2) as owning the stock described in paragraph (1), and (3) property by reason of which the United States shareholder is considered as owning stock described in paragraph (1) or (2), but only for purposes of determining the amount included under section 951 in the gross income of such United States shareholder (or any other United States shareholder who acquires from any person any portion of the interest of such United States shareholder by reason of which such shareholder was treated as owning such stock, but only to the extent of such portion, and subject to such proof of identity of such interest as the Secretary may prescribe by regulations). The preceding sentence shall not apply with respect to any stock or property to which subsection (a) or (b) applies. . (d) Effective dates The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2021, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. (e) No inference regarding certain modifications The amendments made by paragraphs (1) and (2) of subsection (c) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to any taxable year beginning before the taxable years to which such amendments apply. D Inbound international provisions 138131. Modifications to base erosion and anti-abuse tax (a) Modifications to base erosion minimum tax amount (1) Modification of rates Section 59A(b)(1)(A) is amended by striking 10 percent (5 percent in the case of taxable years beginning in calendar year 2018) and inserting the applicable percentage . (2) Base erosion minimum tax amount determined without regard to credits Section 59A(b)(1)(B) is amended to read as follows: (B) an amount equal to the regular tax liability (as defined in section 26(b)) of the taxpayer for the taxable year. . (3) Applicable percentage Section 59A(b)(2) is amended to read as follows: (2) Applicable percentage For purposes of this section, the term applicable percentage means— (A) in the case of any taxable year beginning after December 31, 2021, and before January 1, 2023, 10 percent, (B) in the case of any taxable year beginning after December 31, 2022, and before January 1, 2024, 12.5 percent, (C) in the case of any taxable year beginning after December 31, 2023, and before January 1, 2025, 15 percent, and (D) in the case of any taxable year beginning after December 31, 2024, 18 percent. . (4) Taxpayers subject to rules for banks and securities dealers Section 59A(b)(3)(B) is amended to read as follows: (B) Taxpayer described A taxpayer is described in this subparagraph if such taxpayer is— (i) a bank (as defined in section 585(a)(2)), (ii) a securities dealer registered under section 15(a) of the Securities Exchange Act of 1934, or (iii) a member of an affiliated group (as defined in section 1504(a)(1), determined without regard to section 1504(b)(3)) which includes any person described in clause (i) or (ii). . (5) Termination of increased rate for banks and securities dealers Section 59A(b)(3) is amended by adding at the end the following new subparagraph: (C) Termination Subparagraph (A) shall not apply to any taxable year beginning after December 31, 2024. . (6) General business credit allowed against base erosion and anti-abuse tax Section 38(c)(1) is amended by striking the tax imposed by section 55 and inserting the taxes imposed by sections 55 and 59A . (7) Conforming amendments (A) Section 59A(b)(3)(A) is amended by striking paragraphs (1)(A) and (2)(A) shall each and inserting paragraph (2) shall . (B) Section 59A(b) is amended by striking paragraph (4). (b) Modification of rules for determining modified taxable income (1) In general Section 59A(c) is amended to read as follows: (c) Modified taxable income For purposes of this section— (1) In general The term modified taxable income means the taxable income of the taxpayer computed under this chapter for the taxable year with the following adjustments: (A) Base erosion payments Taxable income shall be determined without regard to any base erosion tax benefit, including for purposes of determining the adjusted basis of property described in subsection (d)(2). (B) Adjustments with respect to cost of goods sold Cost of goods sold shall be determined without regard to any base erosion payment described in subparagraph (A) or (B) of subsection (d)(5). (C) Net operating losses The net operating loss deduction for the taxable year under section 172 shall be determined— (i) by substituting modified taxable income (as determined under section 59A(c)(1) without regard to subparagraph (C) thereof) for taxable income in section 172(a)(2)(B)(ii)(I), (ii) by determining any net operating loss arising in any taxable year beginning after December 31, 2021, without regard to any base erosion tax benefit (determined with respect to each such taxable year), and (iii) by making appropriate adjustments in the application of section 172(b)(2) to take into account clauses (i) and (ii) of this subparagraph. (D) Application of certain other adjustments Except as otherwise provided by the Secretary, rules similar to the rules of subsections (g) and (h) of section 59 shall apply. (2) Base erosion tax benefit The term base erosion tax benefit means— (A) any deduction allowed under this chapter for the taxable year with respect to any base erosion payment described in subsection (d)(1), (B) in the case of a base erosion payment described in subsection (d)(2), any deduction allowed under this chapter for the taxable year for depreciation (or amortization in lieu of depreciation) with respect to property referred to in subparagraph (A) or (B) of such subsection to the extent of the amounts described in such subsection with respect to such property, (C) in the case of a base erosion payment described in subsection (d)(3)— (i) any reduction under section 803(a)(1)(B) in the gross amount of premiums and other consideration on insurance and annuity contracts for premiums and other consideration arising out of indemnity insurance, and (ii) any deduction under section 832(b)(4)(A) from the amount of gross premiums written on insurance contracts during the taxable year for premiums paid for reinsurance, and (D) in the case of a base erosion payment described in subsection (d)(4), any reduction in gross receipts with respect to such payment in computing gross income of the taxpayer for the taxable year for purposes of this chapter. . (2) Certain payments with respect to property produced by the taxpayer Section 59A(d)(2) is amended to read as follows: (2) Treatment of certain related-party payments with respect to depreciable property Such term shall also include any amount paid or accrued by the taxpayer to a foreign person which is a related party of the taxpayer in connection with— (A) the acquisition by the taxpayer from such person of property of a character subject to the allowance for depreciation (or amortization in lieu of depreciation), or (B) property produced by the taxpayer that is of a character subject to the allowance for depreciation (or amortization in lieu of depreciation) if such amount is required to be capitalized under section 263A, including payments in respect of indebtedness or services. . (3) Certain payments with respect to inventory treated as base erosion payments Section 59A(d) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: (5) Certain payments with respect to inventory (A) Indirect costs included in inventory under section 263A Such term shall also include any amount paid or incurred by the taxpayer to a foreign person which is a related party of the taxpayer if such amount is described in paragraph (2)(B) of section 263A(a) and required to be included in inventory costs of the taxpayer under paragraph (1)(A) of such section. Such term shall also include any amount paid or incurred by the taxpayer to a foreign person which is a related party of the taxpayer if such amount is capitalized to the basis of property that is of a character subject to the allowance for depreciation (or amortization in lieu of depreciation), and the depreciation (or amortization in lieu of depreciation) is required to be included in inventory costs of the taxpayer under section 263A(a)(1)(A). (B) Certain costs of foreign related parties Such term shall also include so much of any amount which is paid or incurred by the taxpayer to a foreign person which is a related party of the taxpayer, is described in paragraph (2)(A) of section 263A(a), and is required to be included in inventory costs of the taxpayer under paragraph (1)(A) of such section, as exceeds the sum of— (i) the direct costs of such property in the hands of such foreign person, plus (ii) so much of the costs described in section 263A(a)(2)(B) with respect to such property in the hands of such foreign person as the taxpayer demonstrates to the satisfaction of the Secretary are attributable to amounts— (I) paid or incurred by such foreign person to a United States person or a person which is not a related party of the taxpayer, or (II) otherwise subject to the tax imposed by this chapter. (C) Application to related-party transactions In the case of direct costs otherwise described in clause (i) of subparagraph (B) which are paid or incurred by the foreign person referred to in such clause to another foreign person which is a related party of the taxpayer, such costs shall be taken into account under such clause only to the extent that the taxpayer demonstrates to the satisfaction of the Secretary that such costs are attributable to amounts— (i) paid or incurred (directly or indirectly) to a United States person or a person which is not a related party of the taxpayer, or (ii) otherwise subject to the tax imposed by this chapter. (D) Safe harbor with respect to indirect costs of foreign related parties In the case of a taxpayer which elects the application of this subparagraph (at such time, in such manner, and with respect to such inventory property, as the Secretary may provide), the amount described in subparagraph (B)(ii) with respect to such property shall be treated for purposes of this section as being equal to 20 percent of the amount paid or incurred by the taxpayer to the related party of the taxpayer in connection with the acquisition of such property. (E) Application of certain rules Rules similar to the rules of subparagraphs (B) and (C) of subsection (i)(1) shall apply for purposes of determining whether any amount is treated as subject to the tax imposed by this chapter for purposes of subparagraph (B) or (C) of this paragraph. . (4) Expansion and consolidation of rules to exempt certain payments from treatment as base erosion payments (A) In general Section 59A is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i) Certain payment not treated as base erosion payments (1) Exception for payments on which tax is imposed (A) In general An amount shall not be treated as a base erosion payment if tax is (or was at the time of payment or accrual) imposed by this chapter with respect to such amount (other than by this section). (B) Treatment of certain deductions For purposes of subparagraph (A), tax shall be treated as imposed by this chapter without regard to any deduction allowed under part VIII of subchapter B. (C) Application of certain rules The amount not treated as a base erosion payment by reason of this paragraph shall be determined under rules similar to the rules of section 163(j)(5) (as in effect before the date of the enactment of Public Law 115–97 ). (2) Exception for certain payments subject to sufficient foreign tax (A) In general An amount shall not be treated as a base erosion payment if the taxpayer establishes to the satisfaction of the Secretary that such amount was made to a foreign person which is a related party of the taxpayer that is subject to an effective rate of foreign income tax (as defined in section 904(d)(2)(F)) which is not less than the lesser of— (i) 15 percent, or (ii) the applicable percentage in effect under subsection (b)(2) (determined without regard to subsection (b)(3)) for the taxable year in which such amount is paid or accrued. (B) Certain payments to related parties To the extent provided by the Secretary in regulations, an amount paid to a foreign person which is a related party of the taxpayer shall be treated as paid to another foreign person which is a related party of the taxpayer if such second foreign person is subject to an effective rate of foreign income tax (as defined in section 904(d)(2)(F)) which is less than the lesser of 15 percent or the percentage described in subparagraph (A)(ii), to the extent the amount so paid directly or indirectly funds a payment to such second foreign person. (C) Determination on basis of applicable financial statements Except as otherwise provided by the Secretary under subparagraph (D), the effective rate of foreign income tax with respect to any amount may be established on the basis of applicable financial statements (as defined in section 451(b)(3)). (D) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this paragraph, including regulations or other guidance providing procedures for determining the effective rate of foreign income tax to which any amount is subject. Such procedures may require that any transaction or series of transactions among multiple parties be recharacterized as one or more transactions directly among any 2 or more of such parties where the Secretary determines that such recharacterization is appropriate to carry out, or prevent avoidance of, the purposes of this section. (3) Exception for certain amounts with respect to services Subsections (d)(1) and (d)(5)(A) shall not apply to so much of any amount paid or accrued by a taxpayer for services as does not exceed the total services cost of such services. The preceding sentence shall not apply unless such services meet the requirements for eligibility for use of the services cost method under section 482 (determined without regard to the requirement that the services not contribute significantly to fundamental risks of business success or failure). . (B) Conforming amendment Section 59A(d), as amended by paragraph (2), is amended by striking paragraph (6). (c) Termination of exemption from base erosion and anti-abuse tax for taxpayers with low base erosion percentage Section 59A(e)(1)(C) is amended by striking the base erosion percentage (as determined under subsection (c)(4)) and inserting in the case of any taxable year beginning before January 1, 2024, the base erosion percentage (as determined under subsection (c)(4) as in effect before the date of the enactment of the Act enacted during the 117th Congress which is entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14. ) . (d) Treatment of applicable taxpayers Section 59A(e) is amended by adding at the end the following new paragraph: (4) Continuation of treatment as applicable taxpayer If a taxpayer is an applicable taxpayer with respect to any taxable year beginning after December 31, 2021 (other than by reason of this paragraph), such taxpayer (and any successor of such taxpayer) shall be an applicable taxpayer with respect to each of the 10 succeeding taxable years. . (e) Other modifications (1) Section 59A(b)(1) is amended by striking Except as provided in paragraphs (2) and (3), the and inserting The . (2) Section 59A(h)(2)(B) is amended by striking section 6038B(b)(2) and inserting section 6038A(b)(2) . (3) Section 59A(j)(2), as redesignated by subsection (b), is amended by striking subsection (g)(3) and inserting subsection (h)(3) . (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. E Other Business Tax Provisions 138141. Credit for clinical testing of orphan drugs limited to first use or indication (a) In general Section 45C(b)(2)(B) is amended to read as follows: (B) Testing must be related to first use or indication for rare disease or condition Human clinical testing may be taken into account under subparagraph (A) only to the extent such testing is related to the first use or indication with respect to which a drug for a rare disease or condition is designated under section 526 of the Federal Food, Drug, and Cosmetic Act. . (b) Eligible testing must be conducted before approval for any use or indication Section 45C(b)(2)(A)(ii)(II) is amended to read as follows: (II) before the first date on which an application (with respect to any use or indication with respect to any disease or condition) with respect to such drug is approved under section 505(c) of such Act or, if the drug is a biological product, before the first date on which a license (with respect to any use or indication with respect to any disease or condition) for such drug is issued under section 351(a) of the Public Health Service Act, and . (c) Eligibility of biological products (1) In general Section 45C(b)(2)(A)(i) is amended by inserting or, if the drug is a biological product, section 351(a)(3) of the Public Health Service Act before the comma at the end. (2) Conforming amendment Section 45C(b)(2)(A)(ii)(I) is amended by striking such Act and inserting the Federal Food, Drug, and Cosmetic Act . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138142. Modifications to treatment of certain losses (a) Losses from certain capital assets which become worthless (1) When treated as loss Section 165(g)(1) is amended by striking on the last day of the taxable year and inserting at the time of the identifiable event establishing worthlessness . (2) Treatment of partnership indebtedness Section 165(g)(2)(C) is amended by inserting , by a partnership, after by a corporation . (3) Treatment of abandonment Section 165(g) is amended by adding at the end the following new paragraph: (4) Treatment of abandonment For purposes of this subsection and subsection (m), abandonment shall be treated as an identifiable event establishing worthlessness. . (4) Treatment of partnership interest Section 165 is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection: (m) Worthless partnership interest If any interest in a partnership becomes worthless during the taxable year, the loss resulting therefrom shall, for purposes of this subtitle, be treated as a loss from the sale or exchange of the interest in the partnership at the time of the identifiable event establishing worthlessness. . (b) Deferral of losses in certain controlled group corporate liquidations Section 267 is amended by adding at the end the following new subsection: (h) Deferral of losses in certain controlled group liquidations (1) In general In the case of any specified controlled group liquidation, no loss shall be recognized by any member of the controlled group on any stock or security of the liquidating corporation until all property received by members of the controlled group in connection with such liquidation has been transferred to one or more persons who are not related (within the meaning of subsection (b)(3) or section 707(b)(1)) to the member which received such property. (2) Specified controlled group liquidation For purposes of this subsection, the term specified controlled group liquidation means, with respect to any corporation which is a member of a controlled group— (A) one or more distributions in complete liquidation (within the meaning of section 346) of such corporation, (B) any other transfer (including any series of transfers) of property of such corporation if any stock or security of such corporation becomes worthless in connection with such transfer, and (C) any issuance of debt by such corporation to one or more persons who are related (within the meaning of subsection (b)(3) or section 707(b)(1)) to such corporation if any stock or security of such corporation becomes worthless in connection with such issuance. (3) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including to apply the principles of this subsection to liquidating corporation stock or securities owned by a corporation indirectly through 1 or more partnerships. . (c) Cross reference Section 331(c) is amended— (1) by striking Cross reference and all that follows through For general rule and inserting the following: Cross reference.— (1) For general rule , and (2) by adding at the end the following new paragraph: (2) For losses in controlled group liquidations, see section 267(h). . (d) Effective date (1) Subsection (a) The amendments made by this section shall apply to losses arising in taxable years beginning after December 31, 2021. (2) Subsection (b) The amendment made by subsection (b) shall apply to liquidations on or after the date of the enactment of this Act. 138143. Adjusted basis limitation for divisive reorganization (a) In general Section 361 is amended by adding at the end the following new subsections: (d) Adjusted basis limitation for divisive reorganizations (1) In general Except as provided in paragraph (2), in the case of a reorganization described in section 368(a)(1)(D) with respect to which stock or securities of the controlled corporation (within the meaning of section 355) are distributed by the distributing corporation (within the meaning of such section) in a transaction which qualifies under such section, subsections (b)(3) and (c)(3) shall not apply to so much of the amount described in clauses (ii) and (iii) of subparagraph (A) as does not exceed the excess (if any) of— (A) the sum of— (i) the total amount of the liabilities assumed (within the meaning of section 357(c)) by the controlled corporation, and (ii) the total amount of money and the fair market value of other property transferred to the creditors, (iii) the fair market value of the stock described in section 354(a)(2)(C) and the total principal amount of obligations of the controlled corporation described in subsection (c)(2)(B) which are qualified property (as defined in subsection (c)(2)(B)) transferred to the creditors, over (B) the total adjusted bases of the assets transferred by the distributing corporation to the controlled corporation. (2) Exception regarding certain stock or rights to acquire stock Paragraph (1) shall not apply to any stock (or right to acquire stock) described in subsection (c)(2)(B). (3) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection and to prevent avoidance of tax through abuse or circumvention of subsection (b)(3), subsection (c)(3), or this subsection, including to determine whether a disposition of property or any other transaction is in connection with the reorganization or pursuant to the plan of reorganization. (e) Cross-references For provisions providing for the inclusion of income or recognition of gain in certain distributions, see subsections (d), (e), (f), (g), and (h) of section 355. . (b) Conforming amendments (1) Section 361(b)(3) is amended— (A) in the first sentence, by inserting , and except as provided in subsection (d) after paragraph (1) , and (B) by striking the second and third sentences. (2) Section 361(c) is amended— (A) in paragraph (3), by inserting , and except as provided in subsection (d) after this subsection , and (B) by striking paragraph (5). (c) Effective date The amendments made by this section shall apply to reorganizations occurring on or after the date of the enactment of this Act. (d) Transition rule The amendments made by this section shall not apply to any exchange pursuant to a transaction which is— (1) made pursuant to a written agreement which was binding on the date of the enactment of this Act, and at all times thereafter, (2) described in a ruling request submitted to the Internal Revenue Service on or before such date, or (3) described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission. 138144. Rents from prison facilities not treated as qualified income for purposes of REIT income tests (a) In general Section 856(d)(2) is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , and , and by adding at the end the following new subparagraph: (D) any amount received or accrued, directly or indirectly, with respect to any real or personal property which is primarily used in connection with any correctional, detention, or penal facility. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138145. Modifications to exemption for portfolio interest (a) In general Section 871(h)(3)(B)(i) is amended to read as follows: (i) in the case of an obligation issued by a corporation— (I) any person who owns 10 percent or more of the total combined voting power of all classes of stock of such corporation entitled to vote, or (II) any person who owns 10 percent or more of the total value of the stock of such corporation, and . (b) Effective date The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act. 138146. Certain partnership interest derivatives (a) In general Section 871(m) is amended by adding at the end the following new paragraph: (8) Specified partnership interest income equivalent payments (A) In general For purposes of this subsection, any payment made pursuant to a specified notional principal contract that (directly or indirectly) is contingent upon, or is determined by reference to, any income or gain in respect of an interest in a specified partnership (or any other payment the Secretary determines to be substantially similar) shall be treated as a dividend equivalent. For purposes of the preceding sentence, income or gain includes any income or gain from the deemed disposition of such interest as a result of the termination of, or payment with respect to, such contract (determined in the same manner as under section 864(c)(8) but without regard to subparagraph (C) thereof) and any income or gain described in subsection (a)(1) or section 881(a). (B) Specified partnership For purposes of this paragraph, the term specified partnership means— (i) any publicly traded partnership (as defined in section 7704(b)) which is not treated as a corporation under such section, or (ii) any other partnership as the Secretary may by regulation prescribe. (C) Exceptions (i) Certain payments Subparagraph (A) shall not apply to any payment the Secretary determines does not have the potential for tax avoidance. (ii) Certain income Under such regulations as the Secretary shall prescribe, there shall not be taken into account under subparagraph (A) any payment to the extent determined by reference to income or gain in respect of an interest in a specified partnership which would be, if earned by a nonresident alien individual or a foreign corporation— (I) exempt from tax under this chapter, or (II) from sources without the United States and not effectively connected with the conduct of a trade or business within the United States. (D) Treatment of definitions and special rules with respect to partnerships For purposes of this paragraph, rules similar to the rules and definitions in paragraphs (3), (4), (5), (6), and (7) shall apply to an interest in a specified partnership in a manner similar to an underlying security, and to income or gain in respect of an interest in a specified partnership in a manner similar to a dividend. (E) Regulations The Secretary shall issue such regulations or other guidance as the Secretary determines is necessary or appropriate to carry out the purposes of this paragraph, including to apply this paragraph to payments determined under sale-repurchase agreements or securities lending transactions with respect to interests in specified partnerships, to determine the amount of a distribution by a specified partnership that is income or gain of the partnership (including the portion thereof that is excepted under subparagraph (C)) in a manner consistent with section 1441(g), and to require the provision of information by specified partnerships necessary to determine such amount. . (b) Withholding of tax on nonresident aliens Section 1441 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Dividend equivalents in case of certain specified partnerships The Secretary may prescribe regulations, under rules similar to the rules of section 1446, to determine the amount of a payment in respect of income and gain of a specified partnership (as defined in 871(m)(8)) which is a dividend equivalent. . (c) Effective date The amendments made by this section shall apply to payments made after December 31, 2022. 138147. Adjustments to earnings and profits of controlled foreign corporations (a) In general Section 312(n) is amended by adding at the end the following new paragraph: (9) Special rules for controlled foreign corporations Earnings and profits of any controlled foreign corporation shall be determined without regard to paragraphs (4), (5), and (6). . (b) Conforming amendment Section 952(c) is amended by striking paragraph (3). (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations ending after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. 138148. Certain dividends of controlled foreign corporations treated as extraordinary dividends (a) In general Section 1059 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Treatment of certain dividends of controlled foreign corporations (1) In general Except as otherwise provided by the Secretary, any disqualified CFC dividend shall be treated as an extraordinary dividend to which paragraphs (1) and (2) of subsection (a) apply without regard to the period the taxpayer held the stock with respect to which such dividend is paid. (2) Disqualified CFC dividend For purposes of this subsection— (A) In general The term disqualified CFC dividend means any dividend paid by a controlled foreign corporation to the extent such dividend is attributable to earnings and profits which— (i) were earned during any period that such corporation was not a controlled foreign corporation, or (ii) are attributable to disqualified CFC dividends received by such controlled foreign corporation from another controlled foreign corporation. (B) Application to corporations not wholly owned by United States shareholders If not all of the stock of any controlled foreign corporation is owned (within the meaning of section 958(a)) by one or more United States shareholders at the time that any earnings and profits are earned, the portion of such earnings and profits which is properly attributable to stock not so owned by United States shareholders shall be treated for purposes of subparagraph (A) as earned during a period that such corporation was not a controlled foreign corporation. (C) Treatment of domestic partnerships and certain trusts For purposes of subparagraph (B)— (i) a domestic partnership shall not be treated as a United States shareholder, and (ii) to the extent provided by the Secretary in regulations or other guidance, a trust described in section 7701(a)(30)(E) shall not be treated as a United States shareholder. (D) Special rule related to constructive ownership In the case of the last taxable year of a foreign corporation beginning before January 1, 2018, and each subsequent taxable year of such foreign corporation which begins before the date of the enactment of this subsection, if such foreign corporation would not have been a controlled foreign corporation for any such taxable year if section 958(b)(4) (as applicable to taxable years beginning after the date of the enactment of this subsection) had applied to such taxable year, such corporation shall not be treated as a controlled foreign corporation for such taxable year for purposes of this subsection. . (b) Regulations Section 1059(h), as redesignated by subsection (a), is amended— (1) by striking regulations both places it appears and inserting regulations or other guidance , and (2) by striking and at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , and , and by adding at the end the following new paragraph: (3) providing for the coordination of subsection (g) with the other provisions of this chapter, including section 1248. . (c) Effective date The amendments made by this section shall apply to dividends paid (or amounts treated as dividends) after the date of the enactment of this Act. 138149. Limitation on certain special rules for section 1202 gains (a) In general Section 1202(a) is amended by adding at the end the following new paragraph: (5) Limitation on certain special rules In the case of the sale or exchange of qualified small business stock after September 13, 2021, paragraphs (3) and (4) shall not apply to any taxpayer if— (A) the adjusted gross income of such taxpayer (determined without regard to this section and sections 911, 931, and 933) equals or exceeds $400,000, or (B) such taxpayer is a trust or estate. . (b) Effective date Except as provided in subsection (c), the amendment made by this section shall apply to sales and exchanges after September 13, 2021. (c) Binding contract exception The amendment made by this section shall not apply to any sale or exchange which is made pursuant to a written binding contract which was in effect on September 13, 2021, and is not modified in any material respect thereafter. 138150. Constructive sales (a) Application to appreciated digital assets (1) In general Section 1259(b)(1) is amended by inserting digital asset, after debt instrument, . (2) Exception for sales of nonpublicly traded property Section 1259(c)(2) is amended by adding at the end the following: A similar rule shall apply in the case of a contract for sale of any digital asset. . (3) Digital asset Section 1259(d) is amended by adding at the end the following new paragraph: (3) Digital asset Except as otherwise provided by the Secretary, the term digital asset means any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary. . (b) Treatment of certain contracts Section 1259(c)(1)(D) is amended by inserting or enters into a contract to acquire after acquires . (c) Effective date (1) In general The amendments made by subsection (a) shall apply to constructive sales (determined after the application of the amendment made by subsection (b)) after the date of the enactment of this Act. (2) Treatment of certain contracts The amendment made by subsection (b) shall apply to contracts entered into after the date of the enactment of this Act. 138151. Rules relating to common control (a) In general Section 52 is amended by striking subsections (a) and (b) and inserting the following new subsections: (a) Treatment of controlled groups of corporations (1) In general For purposes of this subpart, all employees of all corporations which are component members of the same controlled group of corporations shall be treated as employed by a single employer. In any such case, the credit (if any) determined under section 51(a) with respect to each such member shall be its proportionate share of the wages giving rise to such credit. (2) Controlled group of corporations For purposes of this subsection, the term controlled group of corporations has the meaning given to such term by section 1563(a), except that— (A) more than 50 percent shall be substituted for at least 80 percent each place it appears in section 1563(a)(1), and (B) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. (3) Component member For purposes of this subsection, the term component member has the meaning given such term by section 1563(b), except that the determination shall be made without regard to whether such member is an excluded member (within the meaning of section 1563(b)(2)). (b) Employees of partnerships, proprietorships, etc., which are under common control For purposes of this subpart, under regulations prescribed by the Secretary— (1) all employees of trades or business (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and (2) the credit (if any) determined under section 51(a) with respect to each trade or business shall be its proportionate share of the wages giving rise to such credit. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (a). For purposes of this subsection, the term trade or business includes any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase To the extent provided in regulations in such paragraph (6)). . (b) Conforming amendment Section 1563(b)(2)(C) is amended to read as follows: (C) is a foreign corporation not engaged in a trade or business within the United States, . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 138152. Modification of wash sale rules (a) In general Section 1091 is amended to read as follows: 1091. Loss from wash sales of specified assets (a) Disallowance of loss deduction In the case of any loss claimed to have been sustained from any sale or disposition (including any termination) of specified assets where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer (or related party) has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into, or has entered into a contract or option so to acquire or a long notional principal contract in respect of, substantially identical specified assets, then no deduction shall be allowed under section 165 unless the taxpayer is a dealer in specified assets and the loss is sustained in a transaction made in the ordinary course of such business. (b) Amount of specified assets different from amount of specified assets sold If the amount of specified assets acquired (or covered by the contract or option to acquire or long notional principal contract in respect of) is different from the amount of specified assets sold or otherwise disposed of, then the particular specified assets the acquisition of which (or the contract or option to acquire or long notional principal contract which) resulted in the nondeductibility of the loss shall be determined under regulations prescribed by the Secretary. (c) Adjustment to basis in case of wash sale If the taxpayer (or the taxpayer’s spouse) acquires or enters into substantially identical specified assets during the period which— (1) begins 30 days before the disposition with respect to which a deduction was disallowed under subsection (a), and (2) ends with the close of the taxpayer’s first taxable year which begins after such disposition, the basis of such specified assets shall be increased by the amount of the deduction so disallowed (reduced by any amount of such deduction taken into account under this subsection to increase the basis of specified assets previously acquired). (d) Certain short sales of specified assets and contracts to sell Rules similar to the rules of subsection (a) shall apply to any loss realized on the closing of a short sale of (or the sale, exchange, or termination of a contract or option to sell or a short notional principal contract in respect of) specified assets if, within a period beginning 30 days before the date of such closing and ending 30 days after such date— (1) substantially identical specified assets were sold or terminated by the taxpayer (or a related party), or (2) another short sale of (or contract or option to sell or short notional principal contract in respect of) substantially identical specified assets was entered into by the taxpayer (or related party). (e) Cash settlement This section shall not fail to apply to a contract or option to acquire or sell specified assets solely by reason of the fact that the contract or option settles in (or could be settled in) cash or property other than such specified assets. (f) Related party For purposes of this section— (1) In general The term related party means— (A) the taxpayer’s spouse, (B) any dependent of the taxpayer and any other taxpayer with respect to whom the taxpayer is a dependent, (C) any individual, corporation, partnership, trust, or estate which controls, or is controlled by, (within the meaning of section 954(d)(3)) the taxpayer or any individual described in subparagraph (A) or (B) with respect to the taxpayer (or any combination thereof), (D) to the extent provided by the Secretary in regulations or other guidance, any individual who bears a relationship to the taxpayer described in section 267(b) if such taxpayer is an individual, (E) any individual retirement plan, Archer MSA (as defined in section 220(d)), or health savings account (as defined in section 223(d)), of the taxpayer or of any individual described in subparagraph (A) or (B) with respect to the taxpayer, (F) any account under a qualified tuition program described in section 529 or a Coverdell education savings account (as defined in section 530(b)) if the taxpayer, or any individual described in subparagraph (A) or (B) with respect to the taxpayer, is the designated beneficiary of such account or has the right to make any decision with respect to the investment of any amount in such account, and (G) any account under— (i) a plan described in section 401(a), (ii) an annuity plan described in section 403(a), (iii) an annuity contract described in section 403(b), or (iv) an eligible deferred compensation plan described in section 457(b) and maintained by an employer described in section 457(e)(1)(A), if the taxpayer or any individual described in subparagraph (A) or (B) with respect to the taxpayer has the right to make any decision with respect to the investment of any amount in such account. (2) Rules for determining status (A) Relationships determined at time of acquisition Determinations under paragraph (1) shall be made as of the time of the purchase or exchange (or entering into a contract, option, or notional principal contract) referred to in subsection (a) except that determinations under subparagraphs (A) and (B) of paragraph (1) shall be made for the taxable year which includes such purchase or exchange (or entering into). (B) Determination of marital status (i) In general Except as provided in clause (ii), marital status shall be determined under section 7703. (ii) Special rule for married individuals filing separately and living apart A husband and wife who— (I) file separate returns for any taxable year, and (II) live apart at all times during such taxable year, shall not be treated as married individuals. (3) Regulations The Secretary shall issue such regulations or other guidance as may be necessary to prevent the avoidance of the purposes of this subsection, including regulations which treat persons as related parties if such persons are formed or availed of to avoid the purposes of this subsection. (g) Specified asset For purposes of this section, the term specified asset means any of the following: (1) Any security described in subparagraph (A), (B), (C), (D), or (E) of section 475(c)(2). (2) Any foreign currency. (3) Any commodity described in subparagraph (A), (B), or (C) of section 475(e)(2). (4) Except as otherwise provided by the Secretary, any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary. Such term shall, except as provided in regulations, include contracts or options to acquire or sell, or notional principal contracts in respect of, any specified assets. (h) Exception for business needs and hedging transactions Except as provided in regulations prescribed by the Secretary, subsection (a) shall not apply in the case of any sale or other disposition— (1) of a foreign currency or commodity described in subsection (h), and (2) which— (A) is directly related to the business needs of a trade or business of the taxpayer (other than the trade or business of trading foreign currencies or commodities described in subsection (h)), or (B) is part of a hedging transaction (as defined in section 1221(b)(2)). . (b) Conforming amendments (1) Section 6045(g)(2)(B) is amended— (A) in clause (i)(I)— (i) by striking security (other than stock and inserting covered security (other than stock , and (ii) by striking stock sold or transferred and inserting covered security sold or transferred , and (B) in clause (ii)— (i) by striking stock or securities and inserting specified assets , and (ii) by striking identical securities and inserting identical specified assets (as defined in section 1091(g)) . (2) The table of sections for part VII of subchapter O of chapter 1 is amended by striking the item relation to section 1091 and inserting the following new item: Sec. 1091. Loss from wash sales of specified assets. . (c) Effective date The amendments made by this section shall apply to sales, dispositions, and terminations after December 31, 2021. (d) No inference Nothing in this section or the amendments made by this section shall be construed to create any inference with respect to the proper treatment of related parties under section 1091 of the Internal Revenue Code of 1986 with respect to sales, dispositions, and terminations before January 1, 2022. 138153. Research and experimental expenditures (a) In general Section 13206 of Public Law 115–97 is amended— (1) in subsection (b)(3), by striking 2021 and inserting 2025 , and (2) in subsection (e), by striking 2021 and inserting 2025 . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 2 Tax increases for high-income individuals 138201. Application of net investment income tax to trade or business income of certain high income individuals (a) In general Section 1411 is amended by adding at the end the following new subsection: (f) Application to certain high income individuals (1) In general In the case of any individual whose modified adjusted gross income for the taxable year exceeds the high income threshold amount, subsection (a)(1) shall be applied by substituting the greater of specified net income or net investment income for net investment income in subparagraph (A) thereof. (2) Phase-in of increase The increase in the tax imposed under subsection (a)(1) by reason of the application of paragraph (1) of this subsection shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this paragraph) as— (A) the excess described in paragraph (1), bears to (B) $100,000 ( 1/2 such amount in the case of a married taxpayer (as defined in section 7703) filing a separate return). (3) High income threshold amount For purposes of this subsection, the term high income threshold amount means— (A) except as provided in subparagraph (B) or (C), $400,000, (B) in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $500,000, and (C) in the case of a married taxpayer (as defined in section 7703) filing a separate return, 1/2 of the dollar amount determined under subparagraph (B). (4) Specified net income For purposes of this section, the term specified net income means net investment income determined— (A) without regard to the phrase other than such income which is derived in the ordinary course of a trade or business not described in paragraph (2), in subsection (c)(1)(A)(i), (B) without regard to the phrase described in paragraph (2) in subsection (c)(1)(A)(ii), (C) without regard to the phrase other than property held in a trade or business not described in paragraph (2) in subsection (c)(1)(A)(iii), (D) without regard to paragraphs (2), (3), and (4) of subsection (c), and (E) by treating paragraphs (5) and (6) of section 469(c) (determined without regard to the phrase To the extent provided in regulations, in such paragraph (6)) as applying for purposes of subsection (c) of this section. . (b) Application to trusts and estates Section 1411(a)(2)(A) is amended by striking undistributed net investment income and inserting the greater of undistributed specified net income or undistributed net investment income . (c) Clarifications with respect to determination of net investment income (1) Certain exceptions Section 1411(c)(6) is amended to read as follows: (6) Special rules Net investment income shall not include— (A) any item taken into account in determining self-employment income for such taxable year on which a tax is imposed by section 1401(b), (B) wages received with respect to employment on which a tax is imposed under section 3101(b) or 3201(a) (including amounts taken into account under section 3121(v)(2)), and (C) wages received from the performance of services earned outside the United States for a foreign employer. . (2) Net operating losses not taken into account Section 1411(c)(1)(B) is amended by inserting (other than section 172) after this subtitle . (3) Inclusion of certain foreign income (A) In general Section 1411(c)(1)(A) is amended by striking and at the end of clause (ii), by striking over at the end of clause (iii) and inserting and , and by adding at the end the following new clause: (iv) any amount includible in gross income under section 951, 951A, 1293, or 1296, over . (B) Proper treatment of certain previously taxed income Section 1411(c) is amended by adding at the end the following new paragraph: (7) Certain previously taxed income The Secretary shall issue regulations or other guidance providing for the treatment of— (A) distributions of amounts previously included in gross income for purposes of chapter 1 but not previously subject to tax under this section, and (B) distributions described in section 962(d). . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. (e) Transition rule The regulations or other guidance issued by the Secretary under section 1411(c)(7) of the Internal Revenue Code of 1986 (as added by this section) shall include provisions which provide for the proper coordination and application of clauses (i) and (iv) of section 1411(c)(1)(A) with respect to— (1) taxable years beginning on or before December 31, 2021, and (2) taxable years beginning after such date. 138202. Limitations on excess business losses of noncorporate taxpayers (a) Limitation made permanent (1) In general Section 461(l)(1) is amended to read as follows: (1) Limitation In the case of any taxpayer other than a corporation, any excess business loss of the taxpayer for the taxable year shall not be allowed. . (2) Conforming amendment Section 461 is amended by striking subsection (j). (b) Modification of carryover of disallowed losses Section 461(l)(2) is amended to read as follows: (2) Disallowed loss carryover Any loss which is disallowed under paragraph (1) for any taxable year shall be treated (solely for purposes of this chapter) as a deduction described in paragraph (3)(A)(i) for the next taxable year. . (c) Treatment of unused excess business loss carryovers on termination of estate or trust Section 461(l) is amended by adding at the end the following new paragraph: (7) Special rule for termination of estate or trust If, on the termination of an estate or trust, the estate or trust has an excess business loss carryover, then such carryover or such excess shall be allowed as a deduction, in accordance with regulations prescribed by the Secretary, to the beneficiaries succeeding to the property of the estate or trust. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2020. 138203. Surcharge on high income individuals, estates, and trusts (a) In general Part I of subchapter A of chapter 1 is amended by inserting after section 1 the following new section: 1A. Surcharge on high income individuals, estates, and trusts (a) General rule In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the sum of— (1) 5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds— (A) $10,000,000, in the case of any taxpayer not described in subparagraph (B) or (C), (B) $5,000,000, in the case of a married individual filing a separate return, and (C) $200,000, in the case of an estate or trust, plus (2) 3 percent of so much of the modified adjusted gross income of the taxpayer as exceeds— (A) $25,000,000, in the case of any taxpayer not described in subparagraph (B) or (C), (B) $12,500,000, in the case of a married individual filing a separate return, and (C) $500,000, in the case of an estate or trust. (b) Modified adjusted gross income For purposes of this section, the term modified adjusted gross income means adjusted gross income reduced by any deduction (not taken into account in determining adjusted gross income) allowed for investment interest (as defined in section 163(d)) or business interest (as defined in section 163(j)). In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e), and reduced by the amount allowed as a deduction under section 642(c). (c) Special rules (1) Nonresident alien In the case of a nonresident alien individual (other than an individual described in section 876(a) or 877(a)), only amounts taken into account in connection with the tax imposed under section 871(b) shall be taken into account under this section. (2) Citizens and residents living abroad Each dollar amount which is applicable to any taxpayer under subsection (a) shall be decreased (but not below zero) by the excess (if any) of— (A) the amounts excluded from the taxpayer’s gross income under section 911, over (B) the amounts of any deductions or exclusions disallowed under section 911(d)(6) with respect to the amounts described in subparagraph (A). (3) Charitable trusts Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B). (4) Not treated as tax imposed by this chapter for certain purposes The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter (other than sections 27 and 901) or for purposes of section 55. (5) Electing small business trusts For purposes of the determination of adjusted gross income, section 641(c)(1)(A) shall not apply and all portions of any electing small business trust shall be treated as a single trust. (d) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the avoidance of the purposes of this section. . (b) Coordination with certain provisions (1) Interest on certain deferred tax liability Section 453A(c) is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: (6) Surcharge on high income individuals taken into account in determining maximum rate of tax For purposes of paragraph (3)(B), the maximum rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a). . (2) Alien residents of Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands Section 876(a) is amended by striking section 1 and inserting sections 1 and 1A . (3) Expatriation to avoid tax Section 877(b) is amended by inserting and section 1A after section 1 or 55 . (4) Limitation on foreign tax credit (A) Section 904(b)(3)(E)(i)(I) is amended by inserting increased by the sum of the rates set forth in paragraphs (1) and (2) of section 1A(a) after (whichever applies) . (B) Section 904(d)(2)(F) is amended by adding at the end the following: For purposes of the first sentence of this subparagraph, the highest rate of tax specified in section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a). . (5) Election by individuals to be subject to tax at corporate rates Section 962(a)(1) is amended by inserting , 1A, after sections 1 . (6) Interest on certain tax deferral Section 1291(c)(2) is amended by adding at the end the following: For purposes of the preceding sentence, the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a). . (7) Averaging of farm income Section 1301(a) is amended by striking section 1 both places it appears and inserting sections 1 and 1A . (8) Title 11 cases Section 1398(c)(2) is amended by inserting and tax shall be imposed under section 1A by treating the estate as a married individual filing a separate return before the period at the end. (9) Withholding of tax on foreign partners’ share of effectively connected income Section 1446(b)(2) is amended by adding at the end the following flush sentence: For purposes of subparagraph (A), the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a). . (10) Relief from joint and several liability on joint return Section 6015(d)(2)(B) is amended by inserting , 1A, after section 1 . (11) Partnership adjustments (A) Section 6225(b)(1) is amended by adding at the end the following flush sentence: For purposes of subparagraph (B), the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a). . (B) Section 6225(c)(4)(A) is amended— (i) by striking subsection (b)(1)(A) and inserting subsection (b)(1)(B) , and (ii) by striking or at the end of clause (i), by adding or at the end of clause (ii), and by inserting after clause (ii) the following new clause: (iii) is not an individual subject to one or both of the rates of tax in effect under paragraphs (1) and (2) of section 1A(a), . (12) Required payments for entities electing not to have required taxable year Section 7519(b) is amended by inserting and increased by the sum of the rates in effect under paragraphs (1) and (2) of section 1A(a) before the period at the end. (c) Clerical amendment The table of sections for part I of subchapter A of chapter 1 is amended by inserting after the item relating to section 1 the following new item: Sec. 1A. Surcharge on high income individuals. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 3 Modifications of rules relating to retirement plans A Limitations on high-income taxpayers with large retirement account balances 138301. Contribution limit for individual retirement plans of high-income taxpayers with large account balances (a) Contribution limit (1) In general Subpart A of part I of subchapter D of chapter 1 is amended by adding at the end the following: 409B. Contribution limit on individual retirement plans of high-income taxpayers with large account balances (a) General rule Notwithstanding any other provision of this title, in the case of an individual who is an applicable taxpayer for any taxable year, no annual additions for such taxable year shall be made by, or on behalf of, such individual to any individual retirement plan to the extent such annual additions exceed the excess (if any) of— (1) the applicable dollar amount for such taxable year, over (2) the aggregate vested balances to the credit of the individual (whether as a participant, owner, or beneficiary) in all applicable retirement plans (determined as of the close of the calendar year preceding the calendar year in which such taxable year begins). (b) Definitions and special rules For purposes of this section— (1) Annual addition (A) In general Except as provided in this paragraph, the term annual addition means any contribution to an individual retirement plan. (B) Contributions to SEP and Simple plans In the case of any employer or employee contributions by, or on behalf of, an individual to a simplified employee pension under section 408(k) or a simple retirement account under section 408(p)— (i) such contributions shall not be treated as annual additions for purposes of applying the limitation under subsection (a), but (ii) the excess described in subsection (a) shall be reduced by the amount of such contributions in applying such limitation to other annual additions with respect to such individual. (C) Rollover contributions disregarded A rollover contribution under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) shall not be treated as an annual addition. (D) Accounts acquired by death or divorce or separation The acquisition of an individual retirement plan (or the transfer to or contribution of amounts to an individual retirement plan) by reason of— (i) the death of another individual, or (ii) divorce or separation (pursuant to section 408(d)(6)), shall not be treated as an annual addition. (2) Applicable dollar amount The term applicable dollar amount means $10,000,000. (3) Applicable retirement plan The term applicable retirement plan means— (A) a defined contribution plan to which section 401(a) or 403(a) applies, (B) an annuity contract under section 403(b), (C) an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A), or (D) an individual retirement plan. (4) Applicable taxpayer (A) In general The term applicable taxpayer means, with respect to any taxable year, a taxpayer whose modified adjusted gross income for such taxable year exceeds the amount determined under subparagraph (B). (B) Dollar limit The amount determined under this subparagraph for any taxable year is— (i) $400,000 for an individual who is a taxpayer not described in clause (ii) or (iii), (ii) $425,000 in the case of an individual who is a head of household (as defined in section 2(b)), and (iii) $450,000 in the case of an individual who is a married individual filing a joint return or a surviving spouse (as defined in section 2(a)). (C) Modified adjusted gross income For purposes of this paragraph, the term modified adjusted gross income means adjusted gross income determined without regard to sections 911, 931, and 933, without regard to any deduction for annual additions to individual retirement plans to which subsection (a) applies, and without regard to any increase in minimum required distributions by reason of section 4974(e). (5) Adjustments for inflation (A) In general In the case of any taxable year beginning after 2029, the dollar amounts in paragraphs (2) and (4)(B) shall be increased by an amount equal to the product of— (i) such dollar amount, and (ii) the cost-of-living adjustment under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2028 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any amount as adjusted under subparagraph (A) is not— (i) in the case of the dollar amount under paragraph (2), a multiple of $250,000, such amount shall be rounded to the next lowest multiple of $250,000. (ii) in the case of a dollar amount under paragraph (4)(B), a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. (c) Regulations The Secretary shall prescribe such regulations and guidance as are necessary or appropriate to carry out the purposes of this section, including regulations or guidance that provide for the application of this section and section 4974(e) in the case of plans with a valuation date other than the last day of a calendar year. . (2) Conforming amendments (A) The table of contents for subpart A of part I of subchapter D of chapter 1 is amended by adding after the item relating to section 409A the following new item: Sec. 409B. Contribution limit on individual retirement plans of high-income taxpayers with large account balances. . (B) Section 408(r) is amended by adding at the end the following new paragraph: (3) For additional limitations on contributions to individual retirement plans with large account balances, see sections 408A(e)(3) and 409B. . (b) Excise tax on excess annual additions (1) In general Section 4973 is amended by adding at the end the following new subsection: (i) Special rule for individual retirement plans with excess annual additions For purposes of this section, in the case of individual retirement plans, the term excess contributions , with respect to any taxable year, is increased by the sum of— (1) the excess of the annual additions (within the meaning of section 409B(b)(1)) to such plans over the limitation under section 409B(a) for such taxable year, reduced by the amount of any excess contributions determined under subsections (b) and (f), and (2) the lesser of— (A) the amount determined under this subsection for the preceding taxable year with respect to such plans, reduced by the aggregate distributions from such plans for the taxable year (including distributions required under section 4974(e)) to the extent not contributed in a rollover contribution to another eligible retirement plan in accordance with section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16), or (B) the amount (if any) by which the amount determined under section 409B(a)(2) for the taxable year exceeds the applicable dollar amount under section 409B(b)(2) for the taxable year. . (2) Conforming amendments Subsections (b) and (f) of section 4973 are each amended by inserting , except as further provided in subsection (i) after For purposes of this section . (c) Reporting requirements Section 6057(a) is amended by adding at the end the following: (3) Additional information regarding high account balances (A) In general If, as of the close of any plan year, 1 or more participants or beneficiaries in an applicable retirement plan (as defined in section 409B(b)(3) without regard to subparagraph (D) thereof) have a vested account balance of at least $2,500,000, the plan administrator shall file a statement with the Secretary, within the period described in paragraph (1), which includes— (i) the name and identifying number of each such participant (without regard to whether such participant has separated from employment) or beneficiaries, (ii) the amount of the vested account balance of each such participant or beneficiary, and (iii) a separate accounting of such vested account balances in designated Roth accounts (within the meaning of section 402A) and all other vested account balances. (B) Inclusion in registration statement If both subparagraph (A) and paragraph (1) apply to a plan, the plan administrator shall include the information required under subparagraph (A) in the registration statement under paragraph (1) rather than file a statement under subparagraph (A). (C) Adjustments for inflation In the case of any plan year beginning after 2029, the $2,500,000 amount under subparagraph (A) shall be increased by an amount equal to the product of— (i) such dollar amount, and (ii) the cost-of-living adjustment under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2028 for calendar year 2016 in subparagraph (A)(ii) thereof. If the amount as adjusted under the preceding sentence is not a multiple of $250,000, such amount shall be rounded to the next lowest multiple of $250,000. . (d) Effective dates (1) In general The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 2028. (2) Plan requirements The amendments made by subsection (c) shall apply to plan years beginning after December 31, 2028. 138302. Increase in minimum required distributions for high-income taxpayers with large retirement account balances (a) In general Section 4974 is amended by adding at the end the following: (e) Increase in minimum required distributions for high-income taxpayers with large aggregate account balances (1) In general If this subsection applies to a payee who is an applicable taxpayer (as defined in section 409B(b)(4)) for a taxable year— (A) all qualified retirement plans and eligible deferred compensation plans of the payee which are applicable retirement plans taken into account in computing the excess described in paragraph (3)(A) shall be treated as 1 plan solely for purposes of applying this section to the increase in minimum required distributions for such taxable year determined under subparagraph (B), and (B) the minimum required distributions under this section for all plans treated as 1 plan under subparagraph (A) with respect to such payee for such taxable year shall be increased by the excess (if any) of— (i) the sum of— (I) if paragraph (2) applies to such taxable year, the applicable Roth excess amount, plus (II) 50 percent of the excess determined under paragraph (3)(A), reduced by the applicable Roth excess amount, over (ii) the sum of the minimum required distributions (determined without regard to this subsection) for all such plans. (2) Applicable Roth excess amount (A) Application For purposes of paragraph (1)(B)(i), this paragraph applies to a taxable year of a payee if the aggregate vested balances to the credit of the payee (whether as a participant, owner, or beneficiary) in all applicable retirement plans (determined as of the close of the calendar year preceding the calendar year in which the taxable year begins) exceed 200 percent of the applicable dollar amount for the calendar year in which the taxable year begins. (B) Applicable Roth excess amount The applicable Roth excess amount for any taxable year to which this paragraph applies is an amount equal to the lesser of— (i) the excess determined under subparagraph (A), or (ii) the aggregate balances to the credit of the payee (whether as a participant, owner, or beneficiary) in all Roth IRAs and designated Roth accounts (within the meaning of section 402A) as of the time described in subparagraph (A). (3) Application This subsection shall apply to a payee for a taxable year— (A) if the aggregate vested balances to the credit of the payee (whether as a participant, owner, or beneficiary) in all applicable retirement plans (determined as of the close of the calendar year preceding the calendar year in which the taxable year begins) exceed the applicable dollar amount for the calendar year in which the taxable year begins, and (B) without regard to whether amounts with respect to the payee are otherwise required to be distributed under section 401(a)(9), 403(b)(10), 408(a)(6), 408(b)(3), or 457(d)(2). (4) Coordination and allocation (A) Minimum distribution requirements If this subsection applies to a payee for any taxable year— (i) this section shall apply first to minimum required distributions determined without regard to this subsection and then to any increase in minimum required distributions by reason of this subsection, and (ii) nothing in this subsection shall be construed to affect the amount of any minimum required distribution determined without regard to this subsection or the plan or plans from which it is required to be distributed. (B) Allocation of increase in minimum required distributions (i) In general Except as provided in clauses (ii) and (iii), the taxpayer may, in such form and manner as the Secretary may prescribe, allocate any increase in minimum required distributions by reason of this subsection to applicable retirement plans treated as 1 plan under subparagraph (A) in such manner as the taxpayer chooses. (ii) Allocation to Roth IRAs and accounts In the case of a taxable year to which paragraph (2) applies, the portion of any increase in minimum required distributions by reason of this subsection equal to the applicable Roth excess amount shall be allocated first to Roth IRAs and then to designated Roth accounts (within the meaning of section 402A) of the payee. (iii) Special rules for employee stock ownership plans (I) In general In the case of a payee to which this subsection applies for any taxable year who has account balances in 1 or more employee stock ownership plans (as defined in section 4975(e)(7)) any portion of which is invested in employer securities which are not readily tradable on an established securities market, the increase in minimum required distributions by reason of this subsection shall not be allocated to any such portion. (II) Exception for amounts attributable to rollover Subclause (I) shall not apply to so much of any account balance as is attributable to a rollover contribution after the date of the enactment of this subsection to the account in accordance with section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16). (5) Distributions not eligible for rollovers For purposes of determining whether a distribution is an eligible rollover distribution, any distribution from an applicable retirement plan which is attributable to any increase in minimum required distributions by reason of this subsection shall be treated as a distribution required under section 401(a)(9), 403(b)(10), 408(a)(6), 408(b)(3), or 457(d)(2), whichever is applicable. (6) Roth distributions treated as qualified distributions In the case of any distribution from a Roth IRA, or designated Roth account (within the meaning of section 402A), of the payee by reason of the allocation of an increase in minimum required distributions under this subsection, such distribution shall be treated as a qualified distribution under section 408A(d)(2) or 402A(d)(2), as the case may be. (7) Definitions For purposes of this subsection, any term used in this subsection which is also used in section 409B shall have the same meaning as when such term is used in such section. . (b) Special rules (1) Distribution rights (A) Qualified trusts (i) In general Section 401(a) is amended by inserting after paragraph (38) the following new paragraph: (39) Immediate distribution right A trust forming part of a defined contribution plan shall not constitute a qualified trust under this section unless an employee who certifies to the plan that the employee is a taxpayer who is subject to the distribution requirements of section 4974(e) may elect to receive a distribution from the employee’s account balance under the plan in such amount as the employee may elect, including any amounts attributable to a qualified cash or deferred arrangement (as defined in subsection (k)(2)). The preceding sentence shall not apply in the case of any portion of an account balance to which section 4974(e)(4)(B)(iii)(I) applies. . (ii) Application to employee’s annuities Section 404(a)(2) is amended by striking and (37) and inserting (37), and (39) . (B) Annuity contracts (i) Custodial accounts Section 403(b)(7)(A) is amended by adding at the end the following new flush sentence: Notwithstanding clause (i), the custodial account shall permit an employee who certifies that the employee is a taxpayer who is subject to the distribution requirements of section 4974(e) to elect to receive a distribution from the employee's custodial account in such amount as the employee may elect. . (ii) Annuity contracts Section 403(b)(11) is amended by adding at the end the following new sentence: Notwithstanding subparagraphs (A), (B), (C), and (D), the annuity contract shall permit an employee who certifies that the employee is a taxpayer who is subject to the distribution requirements of section 4974(e) to elect to receive a distribution of contributions made pursuant to a salary reduction agreement (within the meaning of section 402(g)(3)) from the employee's annuity contract in such amount as the employee may elect. (C) Governmental plans Section 457(d)(1) is amended by adding at the end the following new flush sentence: Notwithstanding subparagraph (A), an eligible deferred compensation plan of an employer described in subsection (e)(1)(A) shall permit a participant or beneficiary who certifies that the participant or beneficiary is a taxpayer who is subject to the distribution requirements of section 4974(e) to elect to receive a distribution from the plan in such amount as the participant or beneficiary may elect. . (2) Exception from 10 percent additional tax on early distributions Section 72(t)(2) is amended by adding at the end the following new subparagraph: (I) Distributions of excess balances Distributions from an applicable retirement plan (within the meaning of section 409B)) to the extent such distributions for the taxable year do not exceed the amount required to be distributed from such plan under section 4974(e). . (3) Withholding Section 3405(b) is amended by adding at the end the following new paragraph: (3) Additional withholding for required distributions from high balance retirement accounts (A) In general For purposes of this section, a distribution pursuant to section 401(a)(39), the last sentence of section 403(b)(7)(A), the last sentence of section 403(b)(11), and the last sentence of section 457(d)(1) shall be treated as a nonperiodic distribution, except that in applying this subsection to such distribution— (i) paragraph (1) shall be applied by substituting 35 percent for 10 percent , and (ii) no election may be made under paragraph (2) with respect to such distribution. (B) Exception Subparagraph (A) shall not apply to any qualified distribution from a designated Roth account (within the meaning of section 402A). . (c) Effective dates (1) In general The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2028. (2) Plan requirements The amendments made by subsection (b) shall apply to plan years beginning after December 31, 2028. B Other provisions relating to individual retirement plans 138311. Tax treatment of rollovers to Roth IRAs and accounts (a) Rollovers and conversions limited to taxable amounts (1) Roth IRAs (A) In general Paragraph (1) of section 408A(e) is amended by adding at the end the following new sentence: A qualified rollover contribution shall not include any rollover contribution from any eligible retirement plan described in subparagraph (B) (other than from a designated Roth account (within the meaning of section 402A)) if any portion of the distribution from which such contribution is made would (without regard to such contribution) be treated as not includible in gross income. (B) Conversions Subparagraph (C) of section 408A(d)(3) is amended by adding at the end the following new sentence: This subparagraph shall not apply if any portion of the plan being converted would be treated as not includible in gross income if distributed at the time of the conversion. (2) Designated Roth accounts Section 402A(c)(4)(B) is amended by inserting , determined after the application of the last sentence of paragraph (1) thereof after section 408A(e) . (3) Effective date The amendments made by this subsection shall apply to distributions, transfers, and contributions made after December 31, 2021. (b) No rollovers or conversions for high-income taxpayers (1) Roth IRAs (A) Qualified rollover contribution Section 408A(e), as amended by subsection (a), is amended by adding at the end the following: (3) High-income taxpayers may only rollover from Roth IRAs and accounts If— (A) a taxpayer is an applicable taxpayer (as defined in section 409B(b)(4)) for the taxable year in which a distribution is made, and (B) such distribution is contributed to a Roth IRA in a rollover contribution, such contribution shall be treated as a qualified rollover contribution under paragraph (1) only if it is made from another Roth IRA or from a designated Roth account (within the meaning of section 402A). . (B) Elimination of conversions Paragraph (3) of section 408A(d), as amended by subsection (a), is amended by adding at the end the following: (G) Paragraph not to apply to high-income taxpayers If a taxpayer is an applicable taxpayer (as defined in section 409B(b)(4)) for any taxable year, this paragraph shall not apply to any distribution to which this paragraph otherwise applies (or to any conversion described in subparagraph (C)) which is made during such taxable year. . (2) Designated Roth accounts Paragraph (4) of section 402A(c) is amended by adding at the end the following: (F) Paragraph not to apply to high-income taxpayers If a taxpayer is an applicable taxpayer (as defined in section 409B(b)(4)) for any taxable year, this paragraph shall not apply to any distribution to which this paragraph otherwise applies and which is made during such taxable year. . (3) Conforming amendment Section 409B(b)(4)(C), as added by this Act, is amended— (A) by striking and without regard to and inserting without regard to , and (B) by inserting before the period at the end the following: , and without regard to the inclusion in gross income of any converted or contributed amount described in section 408A(e)(3), 408A(d)(3)(G), or 402A(c)(4)(F). . (4) Effective date The amendments made by this subsection shall apply to distributions, transfers, and contributions made in taxable years beginning after December 31, 2031. 138312. Statute of limitations with respect to IRA noncompliance (a) In general Subsection (c) of section 6501 is amended by adding at the end the following new paragraph: (13) Noncompliance relating to an individual retirement plan (A) Misreporting In the case of any substantial error (willful or otherwise) in the reporting on a return of any information relating to the valuation of investment assets with respect to an individual retirement plan, the time for assessment of any tax imposed by this title with respect to such plan shall not expire before the date which is 6 years after the return containing such error was filed (whether or not such return was filed on or after the date prescribed). (B) Prohibited transactions The time for assessment of any tax imposed by section 4975 shall not expire before the date which is 6 years after the return was filed (whether or not such return was filed on or after the date prescribed). . (b) Effective date The amendment made by this section shall apply to taxes with respect to which the 3-year period under section 6501(a) of the Internal Revenue Code of 1986 (without regard to the amendment made by this section) ends after December 31, 2021. 138313. IRA owners treated as disqualified persons for purposes of prohibited transaction rules (a) In general Paragraph (2) of section 4975(e) is amended— (1) by striking or at the end of subparagraph (H), (2) by striking the period at the end of subparagraph (I) and inserting ; or , (3) by inserting after subparagraph (I) the following new subparagraph: (J) the individual for whose benefit a plan described in subparagraph (B) or (C) of paragraph (1) is maintained. , (4) by striking or (E) both places it appears in subparagraphs (F) and (G) and inserting (E), or (J) (in the case of a plan described in subparagraph (B) or (C) of paragraph (1)) , (5) by striking or (G) in subparagraph (I) and inserting (G), or (J) (in the case of a plan described in subparagraph (B) or (C) of paragraph (1)) , and (6) by adding at the end the following: For purposes of subparagraphs (G) and (I), any asset or interest held by a plan described in subparagraph (B) or (C) of paragraph (1) shall be treated as owned by the individual described in subparagraph (J) with respect to such plan. . (b) Conforming amendment Subparagraph (A) of section 408(e)(2) is amended to read as follows: (A) Employee engaging in prohibited transaction If, during any taxable year of the individual for whose benefit any individual retirement account is maintained, that individual engages in any transaction prohibited by section 4975 with respect to such account, such account ceases to be an individual retirement account as of the first day of such taxable year. For purposes of this paragraph, the separate account for the benefit of any individual within an individual retirement account maintained by an employer or association of employees is treated as a separate individual retirement account. . (c) Effective date The amendments made by this section shall apply to transactions occurring after December 31, 2021. 4 Funding the Internal Revenue Service and Improving Taxpayer Compliance 138401. Enhancement of Internal Revenue Service resources (a) Appropriations (1) In general The following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2022: (A) Internal Revenue Service (i) In general (I) Taxpayer services For necessary expenses of the Internal Revenue Service to provide taxpayer services, including pre-filing assistance and education, filing and account services, taxpayer advocacy services, and other services as authorized by 5 U.S.C. 3109 , at such rates as may be determined by the Commissioner, $1,931,500,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (II) Enforcement For necessary expenses for tax enforcement activities of the Internal Revenue Service to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities, to enforce criminal statutes related to violations of internal revenue laws and other financial crimes, to purchase and hire passenger motor vehicles ( 31 U.S.C. 1343(b) ), and to provide other services as authorized by 5 U.S.C. 3109 , at such rates as may be determined by the Commissioner, $44,887,500,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (III) Operations support For necessary expenses of the Internal Revenue Service to support taxpayer services and enforcement programs, including rent payments; facilities services; printing; postage; physical security; headquarters and other IRS-wide administration activities; research and statistics of income; telecommunications; information technology development, enhancement, operations, maintenance, and security; the hire of passenger motor vehicles ( 31 U.S.C. 1343(b) ); the operations of the Internal Revenue Service Oversight Board; and other services as authorized by 5 U.S.C. 3109 , at such rates as may be determined by the Commissioner, $27,376,300,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (IV) Business systems modernization For necessary expenses of the Internal Revenue Service's business systems modernization program, including development of callback technology and other technology to provide a more personalized customer service but not including the operation and maintenance of legacy systems, $4,750,700,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (ii) Task Force to design an IRS-run free Direct eFile tax return system For necessary expenses of the Internal Revenue Service to deliver to Congress, within nine months following the date of the enactment of this Act, a report on (I) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct efile tax return system, including costs to build and administer each release, with a focus on multi-lingual and mobile-friendly features and safeguards for taxpayer data; (II) taxpayer opinions, expectations, and level of trust, based on surveys, for such a free direct efile system; and (III) the opinions of an independent third-party on the overall feasibility, approach, schedule, cost, organizational design, and Internal Revenue Service capacity to deliver such a direct efile tax return system, $15,000,000, to remain available until September 30, 2022: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (B) Treasury Inspector General for Tax Administration For necessary expenses of the Treasury Inspector General for Tax Administration in carrying out the Inspector General Act of 1978, as amended, including purchase and hire of passenger motor vehicles ( 31 U.S.C. 1343(b) ); and services authorized by 5 U.S.C. 3109 , at such rates as may be determined by the Inspector General for Tax Administration, $403,000,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (C) Office of Tax Policy For necessary expenses of the Office of Tax Policy of the Department of the Treasury to carry out functions related to promulgating regulations under the Internal Revenue Code of 1986, $104,533,803, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (D) United States Tax Court For necessary expenses of the United States Tax Court, including contract reporting and other services as authorized by 5 U.S.C. 3109 ; $153,000,000, to remain available until September 30, 2031: Provided, That these amounts shall be in addition to amounts otherwise available for such purposes. (2) Multi-year operational plan (A) In general Not later than 6 months after the date of the enactment of this Act, the Commissioner of Internal Revenue shall submit to Congress a plan detailing how the funds appropriated under paragraph (1)(A)(i) will be spent over the ten-year period ending with fiscal year 2031. (B) Quarterly updates (i) In general Not later than the last day of each calendar quarter beginning during the applicable period, the Commissioner of Internal Revenue shall submit to Congress a report on the plan established under subparagraph (A), including— (I) any updates to the plan; (II) progress made in implementing the plan; and (III) any changes in circumstances or challenges in implementing the plan. (ii) Applicable period For purposes of clause (i), the applicable period is the period beginning 1 year after the date the report under subparagraph (A) is due and ending on September 30, 2031. (C) Reduction in appropriation (i) In general In the case of any failure to submit a plan required under subparagraph (A) or a report required under subparagraph (B) by the required date, the amounts made available under paragraph (1)(A)(i) shall be reduced by $100,000 for each day after such required date that report has not been submitted to Congress. (ii) Required date For purposes of clause (i), the required date is the date that is 60 days after the date the plan or report is required to be submitted under subparagraph (A) or (B), as the case may be. (3) No tax increases on certain taxpayers Nothing in this subsection is intended to increase taxes on any taxpayer with a taxable income below $400,000. (b) Personnel flexibilities The Secretary of the Treasury (or the Secretary's delegate) may use the funds made available under subsection (a)(1)(A), subject to such policies as the Secretary (or the Secretary's delegate) may establish, to take such personnel actions as the Secretary (or the Secretary's delegate) determines necessary to administer the Internal Revenue Code of 1986, including— (1) utilizing direct hire authority to recruit and appoint qualified applicants, without regard to any notice or preference requirements, directly to positions in the competitive service; (2) in addition to the authority under section 7812(1) of the Internal Revenue Code of 1986, appointing not more than 200 individuals to positions in the Internal Revenue Service under streamlined critical pay authority, except that— (A) the authority to offer streamlined critical pay under this paragraph shall expire on September 30, 2031; and (B) the positions for which streamlined critical pay is authorized under this paragraph may include positions critical to the purposes described in subclauses (I), (II), and (III) of subsection (a)(1)(A)(i); and (3) appointing, without approval of the Office of Personnel Management, not more than 300 individuals to critical pay positions in the Internal Revenue Service for which— (A) the rate of basic pay may not exceed the salary set in accordance with section 104 of title 3, United States Code; and (B) the total annual compensation paid to an employee in such a position, including allowances, differentials, bonuses, awards, and similar cash payments, may not exceed the maximum amount of total annual compensation payable at the salary set in accordance with section 104 of title 3, United States Code. 138402. Application of backup withholding with respect to third party network transactions (a) In general Section 3406(b) is amended by adding at the end the following new paragraph: (8) Other reportable payments include payments in settlement of third party network transactions only where aggregate for calendar year is $600 or more Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if— (A) the aggregate amount of such payment and all previous such payments made by the third party settlement organization to the participating payee during such calendar year equals or exceeds $600, or (B) the third party settlement organization was required under section 6050W to file a return for the preceding calendar year with respect to payments to the participating payee. . (b) Conforming amendment Section 6050W(e) is amended by inserting equal or before exceed $600 . (c) Effective date The amendments made by this section shall apply to calendar years beginning after December 31, 2021. (d) Transitional rule for 2022 In the case of payments made during calendar year 2022, section 3406(b)(8)(A) of the Internal Revenue Code of 1986 (as added by this section) shall be applied by inserting and the aggregate number of third party network transactions settled by the third party settlement organization with respect to the participating payee during such calendar year exceeds 200 before the comma at the end. 138403. Modification of procedural requirements relating to assessment of penalties (a) Repeal of approval requirement Section 6751 is amended by striking subsection (b). (b) Quarterly certifications of compliance with procedural requirements Section 6751 , as amended by subsection (a) of this section, is amended by inserting after subsection (a) the following new subsection: (b) Quarterly certifications of compliance Each appropriate supervisor of employees of the Internal Revenue Service shall certify quarterly by letter to the Commissioner of Internal Revenue whether or not the requirements of subsection (a) and administrative policies intended to ensure voluntary compliance have been met with respect to notices of penalty issued by such employees. . (c) Effective dates (1) Repeal of approval requirement The amendment made by subsection (a) shall take effect as if included in section 3306 of the Internal Revenue Service Restructuring and Reform Act of 1998. (2) Quarterly certifications of compliance with procedural requirements The amendment made by subsection (b) shall apply to notices of penalty issued after the date of the enactment of this Act. 5 Other provisions 138501. Modifications to limitation on deduction of excessive employee remuneration (a) In general Section 162(m) is amended by adding at the end the following new paragraph: (7) Special rules related to limitation on deduction of excessive employee remuneration (A) Aggregation rule A rule similar to the rule of paragraph (6)(C)(ii) shall apply for purposes of paragraph (1). (B) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of paragraph (1), including regulations or other guidance to prevent the avoidance of such purposes, including through the performance of services other than as an employee or by providing compensation through a pass-through or other entity. . (b) Applicable employee remuneration Section 162(m)(4)(A) is amended— (1) by inserting (including performance-based compensation, commissions, post-termination compensation, and beneficiary payments) after remuneration for services , and (2) by inserting and whether or not such remuneration is paid directly by the publicly held corporation after whether or not during the taxable year . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138502. Extension of tax to fund Black Lung Disability Trust Fund (a) In general Section 4121(e)(2)(A) is amended by striking December 31, 2021 and inserting December 31, 2025 . (b) Effective date The amendment made by this section shall apply to sales after December 31, 2021. 138503. Prohibited transactions relating to holding DISC or FSC in individual retirement account (a) In general Section 4975(c)(1) is amended by striking or at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ; or , and by adding at the end the following new subparagraph: (G) investment, at the direction of a disqualified person, by an individual retirement account in an interest in a DISC or FSC that receives any commission, or other payment, from an entity any stock or interest in which is owned by the individual for whose benefit the account is maintained. . (b) Special rules of application Section 4975(c) is amended by adding at the end the following new paragraph: (8) Special rules of application for DISC and FSC investments (A) Indirect holding of DISC or FSC For purposes of paragraph (1)(G), investment by an individual retirement account in an interest in an entity that owns (directly or indirectly) an interest in a DISC or FSC shall be treated as investment by such account in an interest in such DISC or FSC. (B) Constructive ownership For purposes of determining ownership of stock (or any other interest) in an entity under paragraph (1)(G) and ownership of an interest in a DISC or FSC under subparagraph (A), the rules prescribed by section 318 for determining ownership shall apply, except that such section shall be applied by substituting 10 percent for 50 percent each place it appears. (C) DISC and FSC For purposes of this subsection, the terms DISC and FSC shall have the respective meanings given such terms by section 992(a)(1)) and section 922(a) (as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000). . (c) Application of tax to terminated individual retirement accounts Section 4975(c)(3) is amended by adding at the end the following: The preceding sentence shall not apply in the case of a prohibited transaction described in paragraph (1)(G). . (d) Related rules for individual retirement accounts (1) In general Section 408(a) is amended by inserting after paragraph (6) the following new paragraph: (7) No part of the trust funds will be invested in any interest in a DISC or a FSC that receives any commission, or other payment, from an entity any stock or interest in which is owned by the individual for whose benefit the trust is maintained. For purposes of the preceding sentence, the definitions and rules of section 4975(c)(8) shall apply. . (e) Loss of exemption of account Section 408(e)(2), as amended by the preceding provisions of this Act, is amended— (1) by redesignating subparagraph (B) as subparagraph (C), (2) by inserting after subparagraph (A) the following new subparagraph: (B) Prohibited investment If, during any taxable year of the individual for whose benefit any individual retirement account is maintained, the investment of any part of the funds of such individual retirement account does not comply with subsection (a)(7), such account ceases to be an individual retirement account as of the first day of such taxable year. For purposes of this subparagraph, the separate account for the benefit of any individual within an individual retirement account maintained by an employer or association of employees is treated as a separate individual retirement account. , (3) by striking where employee engages in prohibited transaction in the heading and inserting in case of certain prohibited transactions and investments , (4) by striking (A) in subparagraph (C), as so redesignated, and inserting (A) or (B) . (f) Conforming amendments (1) Section 408(c)(1) is amended by striking (1) through (6) and inserting (1) through (7) . (2) Section 4975(c)(3) is amended— (A) striking established and inserting maintained , (B) by striking transaction both places it appears and inserting transaction or investment , and (C) by striking section 408(e)(2)(A) and inserting subparagraph (A) or (B) of section 408(e)(2) . (g) Effective date The amendments made by this section shall apply to stock and other interests acquired or held on or after December 31, 2021. 138504. Clarification of treatment of DISC gains and distributions of certain foreign shareholders (a) In general Section 996(g) is amended by striking of such shareholder and inserting deemed to be had by such shareholder . (b) Effective date The amendments made by subsection (a) shall apply to gains and distributions after December 31, 2021. (c) Application to foreign sales corporations In the case of any distribution after December 31, 2021, section 926(b)(1) of the Internal Revenue Code of 1986 (prior to its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000) shall be applied by substituting deemed to be had by such shareholder for of such shareholder . (d) No inference This section (and the amendments made by this section) shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to gains and distributions before January 1, 2022. 138505. Treatment of certain qualified sound recording productions (a) Election To treat costs as expenses Section 181(a)(1) is amended by striking qualified film or television production, and any qualified live theatrical production, and inserting qualified film or television production, any qualified live theatrical production, and any qualified sound recording production . (b) Dollar limitation Section 181(a)(2) is amended by adding at the end the following new subparagraph: (C) Qualified sound recording production Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000. . (c) No other deduction or amortization deduction allowable Section 181(b) is amended by striking qualified film or television production or any qualified live theatrical production and inserting qualified film or television production, any qualified live theatrical production, or any qualified sound recording production . (d) Election Section 181(c)(1) is amended by striking qualified film or television production or any qualified live theatrical production and inserting qualified film or television production, any qualified live theatrical production, or any qualified sound recording production . (e) Qualified sound recording production defined Section 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: (f) Qualified sound recording production For purposes of this section, the term qualified sound recording production means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States. . (f) Termination Section 181(h) (as redesignated by subsection (e)) is amended by striking or qualified live theatrical productions and inserting , qualified live theatrical productions, or qualified sound recording productions . (g) Bonus depreciation (1) Qualified sound recording production as qualified property Section 168(k)(2)(A)(i) is amended— (A) by striking or at the end of subclause (IV), by adding or at the end of subclause (V), and by inserting after subclause (V) the following: (VI) which is a qualified sound recording production (as defined in subsection (f) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, , and (B) in subclauses (IV) and (V) (as amended) by striking without regard to subsections (a)(2) and (g) both places it appears and inserting without regard to subsections (a)(2) and (h) . (2) Production placed in service Section 168(k)(2)(H) is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting , and , and by adding after clause (ii) the following: (iii) a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast. . (h) Conforming amendments (1) The heading for section 181 is amended to read as follows: Treatment of certain qualified productions . . (2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 181 and inserting the following new item: Sec. 181. Treatment of certain qualified productions. . (i) Effective date The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act. 138506. Payment to certain individuals who dye fuel (a) In general Subchapter B of chapter 65 is amended by adding at the end the following new subsection: 6433. Dyed fuel (a) In general If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene. (b) Requirements (1) In general A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene. (2) Eligible indelibly dyed diesel fuel or kerosene defined The term eligible indelibly dyed diesel fuel or kerosene means diesel fuel or kerosene— (A) with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and (B) which is exempt from taxation under section 4082(a). (c) Cross reference For civil penalty for excessive claims under this section, see section 6675. . (b) Conforming amendments (1) Section 6206 is amended— (A) by striking or 6427 each place it appears and inserting 6427, or 6433 , and (B) by striking 6420 and 6421 and inserting 6420, 6421, and 6433 . (2) Section 6430 is amended— (A) by striking or at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting or , and by adding at the end the following new paragraph: (4) which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6433. . (3) Section 6675 is amended— (A) in subsection (a), by striking or 6427 (relating to fuels not used for taxable purposes) and inserting 6427 (relating to fuels not used for taxable purposes), or 6433 (relating to eligible indelibly dyed fuel) , and (B) in subsection (b)(1), by striking 6421, or 6427, and inserting 6421, 6427, or 6433 . (4) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: Sec. 6433. Dyed fuel. . (c) Effective date The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. 138507. Treatment of financial guaranty insurance companies as qualifying insurance corporations under passive foreign investment company rules (a) In general Section 1297(f)(3) is amended by adding at the end the following new subparagraph: (C) Special rules for financial guaranty insurance companies (i) In general Notwithstanding subparagraphs (A)(ii) and (B), the applicable insurance liabilities of a financial guaranty insurance company shall include its unearned premium reserves if— (I) such company is prohibited under generally accepted accounting principles from reporting on its applicable financial statements reserves for losses and loss adjustment expenses with respect to a financial guaranty insurance or reinsurance contract except to the extent that losses and loss adjustment expenses are expected to exceed the unearned premium reserves on the contract, (II) the applicable financial statement of such company reports financial guaranty exposure of at least 15-to-1 or State or local bond exposure of at least 9-to-1 (8-to-1 in the case of a taxable year of such company which ends on or before December 31, 2018), and (III) such company includes in its insurance liabilities only its unearned premium reserves relating to insurance written or assumed that is within the single risk limits set forth in subsection (D) of section 4 of the Financial Guaranty Insurance Guideline (modified by using total shareholder’s equity as reported on the applicable financial statement of the company rather than aggregate of the surplus to policyholders and contingency reserves). (ii) Application of alternative facts and circumstances test A financial guaranty insurance company shall be treated as satisfying the requirements of paragraph (2)(B)(ii). (iii) Financial guaranty insurance company For purposes of this subparagraph, the term financial guaranty insurance company means any insurance company the sole business of which is writing or reinsuring financial guaranty insurance (as defined in subsection (A) of section 1 of the Financial Guaranty Insurance Guideline) which is permitted under subsection (B) of section 4 of such Guideline. (iv) Financial guaranty exposure For purposes of this subparagraph, the term financial guaranty exposure means the ratio of— (I) the net debt service outstanding insured or reinsured by the company that is within the single risk limits set forth in the Financial Guaranty Insurance Guideline (as reported on such company’s applicable financial statement), to (II) the company’s total assets (as so reported). (v) State or local bond exposure For purposes of this subparagraph, the term State or local bond exposure means the ratio of— (I) the net unpaid principal of State or local bonds (as defined in section 103(c)(1)) insured or reinsured by the company that is within the single risk limits set forth in the Financial Guaranty Insurance Guideline (as reported on such company’s applicable financial statement), to (II) the company’s total assets (as so reported).” (vi) Financial Guaranty Insurance Guideline For purposes of this subparagraph— (I) In general The term Financial Guaranty Insurance Guideline means the October 2008 model regulation that was adopted by the National Association of Insurance Commissioners on December 4, 2007. (II) Determinations made by Secretary The determination of whether any provision of the Financial Guaranty Insurance Guideline has been satisfied shall be made by the Secretary. . (b) Reporting of certain items Section 1297(f)(4) is amended by adding at the end the following new subparagraph: (C) Clarification that certain items on applicable financial statement be separately reported with respect to corporation An amount described in paragraph (1)(B) or clause (i)(II), (i)(III), (iv)(I), (iv)(II), (v)(I), or (v)(II) of paragraph (3)(C) shall be treated as reported on an applicable financial statement for purposes of this section if— (i) such amount is separately reported on such statement with respect to the corporation referred to in paragraph (1), or (ii) such amount is separately determined for purposes of calculating an amount which is reported on such statement. (D) Authority of Secretary to require reporting (i) In general Each United States person who owns an interest in a specified non-publicly traded foreign corporation and who takes the position that such corporation is not a passive foreign investment company shall report to the Secretary such information with respect to such corporation as the Secretary may require. (ii) Specified non-publicly traded foreign corporation For purposes of this subparagraph, the term specified non-publicly traded foreign corporation means any foreign corporation— (I) which would be a passive foreign investment company if subsection (b)(2)(B) did not apply, and (II) no interest in which is traded on an established securities market. . (c) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall take effect as if included in section 14501 of Public Law 115–97 . (2) Reporting The amendment made by subsection (b) shall apply to reports made after the date of the enactment of this Act. 138508. Extension of period of limitation for certain legally married couples (a) In general In the case of an individual first treated as married for purposes of the Internal Revenue Code of 1986 by the application of the holdings of Revenue Ruling 2013–17— (1) if such individual filed a return (other than a joint return) for a taxable year ending before September 16, 2013, for which a joint return could have been made by the individual and the individual's spouse but for the fact that such holdings were not effective at the time of filing, such return shall be treated as a separate return within the meaning of section 6013(b) of such Code and the time prescribed by section 6013(b)(2)(A) of such Code for filing a joint return after filing a separate return shall not expire before the date prescribed by law (including extensions) for filing the return of tax for the taxable year that includes the date of the enactment of this Act, and (2) in the case of a joint return filed pursuant to paragraph (1)— (A) the period of limitation prescribed by section 6511(a) of such Code for any such taxable year shall be extended until the date prescribed by law (including extensions) for filing the return of tax for the taxable year that includes the date of the enactment of this Act, and (B) section 6511(b)(2) of such Code shall not apply to any claim of credit or refund with respect to such return. (b) Amendments, etc. restricted to change in marital status Subsection (a) shall apply only with respect to amendments to the return of tax, and claims for credit or refund, relating to a change in the marital status for purposes of the Internal Revenue Code of 1986 of the individual. 138514. Allowance of deduction for certain expenses of the trade or business of being an employee (a) Above-the-Line deduction for union dues Section 62(a)(2) is amended by adding at the end the following new subparagraph: (F) Union dues In the case of any taxable year beginning after December 31, 2021, and before January 1, 2026, the deductions allowed by section 162 which are both— (A) not in excess of $250, and (B) attributable to a trade or business consisting of the performance of services by the taxpayer as an employee if such deductions are for dues paid to a labor organization described in section 501(c)(5) and with respect to which such taxpayer remained a member through the end of the taxable year. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138515. Temporary increase in employer-provided child care credit (a) In general Section 45F is amended by adding at the end the following new subsection: (g) Temporary increase In the case of any taxable year beginning after December 31, 2021, and before January 1, 2026— (1) Increase in percentage of credit for qualified child care expenditures Subsection (a)(1) shall be applied by substituting 50 percent for 25 percent . (2) Increase in dollar limitation Subsection (b) shall be applied by substituting $500,000 for $150,000 . (3) Preservation of dollar limitation on qualified child care resource and referral expenditures The aggregate amount of qualified child care resource and referral expenditures which may be taken into account under subsection (a)(2) for any taxable year shall not exceed $1,500,000. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 138516. Payroll credit for compensation of local news journalists (a) In general Subchapter D of chapter 21 is amended by adding at the end the following new section: 3135. Local news journalist compensation credit (a) In general In the case of an eligible local news journalist employer, there shall be allowed as a credit against the taxes imposed by section 3111(b) for each calendar quarter an amount equal to the applicable percentage of wages paid by such employer to local news journalists for such calendar quarter. (b) Limitations and refundability (1) Number of local news journalists taken into account The number of local news journalists which may be taken into account under subsection (a) with respect to any eligible local news journalist employer for any calendar quarter shall not exceed 1,500. (2) Wages taken into account The amount of wages paid with respect to any individual which may be taken into account under subsection (a) during any calendar quarter by the eligible local news journalist employer shall not exceed $12,500. (3) Credit limited to employment taxes The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the taxes imposed by section 3111(b) on the wages paid with respect to the employment of all the employees of the eligible local news journalist employer for such calendar quarter. (4) Refundability of excess credit If the amount of the credit under subsection (a) exceeds the limitation of paragraph (3) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b). (c) Eligible local news journalist employer For purposes of this section— (1) In general The term eligible local news journalist employer means, with respect to any calendar quarter, any employer which— (A) is— (i) an eligible local news organization, or (ii) a qualifying broadcast station, and (B) employs local news journalists. (2) Eligible local news organization The term eligible local news organization means, with respect to any calendar quarter, any employer— (A) which publishes one or more qualifying publications during the calendar quarter, (B) which is not a disqualified organization, and (C) which did not derive more than 50 percent of its gross receipts for such calendar quarter from disqualified organizations. (3) Qualifying broadcast station The term qualifying broadcast station means, with respect to any calendar quarter, any employer— (A) which owns or operates a broadcast station (as defined in section 3 of the Communications Act of 1934), (B) which is not a disqualified organization, (C) which did not derive more than 50 percent of its gross receipts for such calendar quarter from disqualified organizations, and (D) which discloses its ownership to the public at such times and in such manner as identified by the Secretary. (d) Other definitions For purposes of this section— (1) Applicable percentage The term applicable percentage means— (A) in the case of each of the first 4 calendar quarters to which this section applies, 50 percent, and (B) in the case of each calendar quarter thereafter, 30 percent. (2) Local news journalist (A) In general The term local news journalist means, with respect to any eligible local news journalist employer for any calendar quarter, any full-time employee (as defined in section 4980H(c)(4)) who— (i) provides qualified services for an average of not less than 30 hours per week for each week during which such employee is employed by the eligible local news journalist employer during the calendar quarter, and (ii) resides within 50 miles of the local community with respect to the qualifying publication or qualifying broadcast station with respect to which the qualified services are provided. (B) Qualified services For purposes of subparagraph (A)(ii), the term qualified services means services— (i) which consist of gathering, preparing, directing the recording of, producing, collecting, photographing, recording, writing, editing, reporting, presenting, or publishing original local community news for dissemination to the local community, and (ii) which are provided with respect to— (I) a qualifying publication of an eligible local news organization, or (II) the local community of a qualifying broadcast station. (3) Qualifying publication The term qualifying publication means, with respect to any calendar quarter, any print or digital publication— (A) the primary purpose of which is to serve a local community by providing local news, (B) which— (i) is published during the calendar quarter, and (ii) has been published during each of the 4 calendar quarters preceding such calendar quarter, (C) which is covered by media liability insurance for such calendar quarter, (D) which discloses its ownership to the public at such times and in such manner as identified by the Secretary, and (E) which receives services from not more than 1,500 persons during such calendar quarter. (4) Local community The term local community means, with respect to any qualifying broadcast station or qualifying publication, a geographically contiguous area that does not exceed the boundaries of— (A) in the case of a qualifying broadcast station, the area for which the qualifying broadcast station is licensed to serve by the Federal Communications Commission under section 307 of the Communications Act of 1934, and (B) in the case of a qualifying publication— (i) the metropolitan or micropolitan statistical area, as defined by the Office of Management and Budget, in which the qualifying publication is primarily distributed, (ii) if such qualifying publication is not primarily distributed in a metropolitan or micropolitan statistical area, political subdivision of the State in which such qualifying publication is primarily distributed, or (iii) if such qualifying publication is not primarily distributed in a metropolitan or micropolitan statistical area or a political subdivision of a State, the State in which such qualifying publication is primarily distributed. For purposes of subparagraph (B), in the case of a qualifying publication which is a digital publication, such qualifying publication shall be considered to be primarily distributed in the area where such publication is primarily consumed. (5) Disqualified organization The term disqualified organization means— (A) any organization described in section 501(c)(4) and exempt from tax under section 501(a), (B) any organization described in section 527, and (C) any organization that is owned or controlled (directly or indirectly) by one or more organizations described in subparagraph (A) or (B). (6) Gross receipts (A) In general Except as provided in subparagraph (B), the term gross receipts has the meaning given such term as used in section 448(c). (B) Tax-exempt organizations In the case of an organization which is described in section 501(c) and exempt from tax under section 501(a), any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section 6033. (7) Other terms Any term used in this section which is also used in this chapter shall have the same meaning as when used in such chapter. (e) Aggregation rule All persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one employer for purposes of this section. (f) Certain rules to apply (1) In general For purposes of this section— (A) except as provided in paragraph (2), rules similar to the rules of section 51(i)(1) shall apply, and (B) rules similar to the rules of section 280C(a) shall apply. (2) Exception Paragraph (1)(A) shall not apply with respect to any local news journalist of an eligible local news journalist employer which employs fewer than 15 local news journalists during the calendar quarter. (g) Certain governmental employers (1) In general This credit shall not apply to the Government of the United States, the government of any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing. (2) Exception Paragraph (1) shall not apply to any public broadcasting entity (as defined in section 397(11) of the Communications Act of 1934 ( 47 U.S.C. 397(11) )). (h) Election To have section not apply This section shall not apply with respect to any eligible local news journalist employer for any calendar quarter if such employer elects (at such time and in such manner as the Secretary may prescribe) not to have this section apply. (i) Special rules (1) Employee not taken into account more than once An employee shall not be included for purposes of this section for any period with respect to any employer if such employer is allowed a credit under section 51 with respect to such employee for such period. (2) Denial of double benefit Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credit allowed under section 41, 45A, 45P, 45S, or 1396. (3) Third-party payors Any credit allowed under this section shall be treated as a credit described in section 3511(d)(2) of such Code. (j) Treatment of deposits The Secretary shall waive any penalty under section 6656 for any failure to make a deposit of any taxes imposed under section 3111(b) if the Secretary determines that such failure was due to the reasonable anticipation of the credit allowed under this section. (k) 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). (l) Regulations and guidance The Secretary shall issue such forms, instructions, regulations, and guidance as are necessary— (1) with respect to the application of the credit under subsection (a) to third-party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504), including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors, and (2) to prevent the avoidance of the purposes of the limitations under this section. Any forms, instructions, regulations, or other guidance described in paragraph (1) shall require the customer to be responsible for the accounting of the credit and for any liability 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. (m) Application This section shall only apply to wages paid in calendar quarters beginning after the date of the enactment of this section and beginning before the date that is 5 years after the first day of the first calendar quarter to which this section applies. . (b) Refunds Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 3135, after 3134, . (c) Clerical amendment The table of sections for subchapter D of chapter 21 is amended by adding at the end the following: Sec. 3135. Local news journalist compensation credit. . (d) Effective date The amendments made by this section shall apply to calendar quarters beginning after the date of the enactment of this Act. 138517. Above-the-line deduction for employee uniforms (a) In general Section 62(a)(2), as amended by the preceding provision of this Act, is amended by adding at the end the following new subparagraph: (G) Work clothes and uniforms In the case of any taxable year beginning after December 31, 2021, and before January 1, 2025, the deductions allowed by section 162, not in excess of $250, which are attributable to a trade or business consisting of the performance of services by the taxpayer as an employee if such deductions are for uniforms or work clothing which are— (i) required to be worn as a condition of employment, and (ii) not suitable for everyday wear. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021. 138518. Expenses in contingency fee cases (a) In general Section 162 is amended by redesignating subsection (s) as subsection (t) and by inserting after subsection (r) the following new subsection: (s) Expenses in contingency fee cases In the case of any amount paid or incurred in the ordinary course of the trade or business of practicing law the repayment of which is contingent on a recovery by judgment or settlement in the action to which such amount relates— (1) the deduction under subsection (a) shall be determined by disregarding the possibility that such amount will be repaid, and (2) income attributable to any related recovery shall not be reduced by such amount. . (b) Effective date The amendments made by this section shall apply to amounts paid, incurred, or received in taxable years beginning after the date of the enactment of this Act. 138519. Increase in research credit against payroll tax for small businesses (a) In general Clause (i) of section 41(h)(4)(B) is amended— (1) by striking Amount .—The amount and inserting “ Amount .— (I) In general The amount , and (2) by adding at the end the following new subclause: (II) Increase In the case of taxable years beginning after December 31, 2021, the amount in subclause (I) shall be increased by $250,000. . (b) Allowance of credit (1) In general Paragraph (1) of section 3111(f) is amended— (A) by striking for a taxable year, there shall be allowed and inserting “for a taxable year— (A) there shall be allowed , (B) by striking equal to the and inserting equal to so much of the , (C) by striking the period at the end and inserting as does not exceed the limitation of subclause (I) of section 41(h)(4)(B)(i) (applied without regard to subclause (II) thereof), and , and (D) by adding at the end the following new subparagraph: (B) there shall be allowed as a credit against the tax imposed by subsection (b) for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section 41(h)(4)(A)(ii) an amount equal to so much of the payroll tax credit portion determined under section 41(h)(2) as is not allowed as a credit under subparagraph (A). . (2) Limitation Paragraph (2) of section 3111(f) is amended— (A) by striking paragraph (1) and inserting paragraph (1)(A) , and (B) by inserting , and the credit allowed by paragraph (1)(B) shall not exceed the tax imposed by subsection (b) for any calendar quarter, after calendar quarter . (3) Carryover Paragraph (3) of section 3111(f) is amended by striking the credit and inserting any credit . (4) Deduction allowed Paragraph (4) of section 3111(f) is amended— (A) by striking credit and inserting credits , and (B) by striking subsection (a) and inserting subsection (a) or (b) . (c) Aggregation rules Clause (ii) of section 41(h)(5)(B) is amended by striking the $250,000 amount and inserting each of the $250,000 amounts . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 138520. Imposition of tax on nicotine (a) In general Section 5701 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Nicotine On taxable nicotine, manufactured in or imported into the United States, there shall be imposed a tax equal to the dollar amount specified in section 5701(b)(1) (or, if greater, $50.33) per 1,810 milligrams of nicotine (and a proportionate tax at the like rate on any fractional part thereof). . (b) Taxable nicotine Section 5702 is amended by adding at the end the following new subsection: (q) Taxable nicotine (1) In general Except as otherwise provided in this subsection, the term taxable nicotine means any nicotine which has been extracted, concentrated, or synthesized. (2) Exception for products approved by Food and Drug Administration Such term shall not include any nicotine if the manufacturer or importer thereof demonstrates to the satisfaction of the Secretary of Health and Human Services that such nicotine will be used in— (A) a drug— (i) that is approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act; or (ii) for which an investigational use exemption has been authorized under section 505(i) of the Federal Food, Drug, and Cosmetic Act or under section 351(a) of the Public Health Service Act; or (B) a combination product (as described in section 503(g) of the Federal Food, Drug, and Cosmetic Act), the constituent parts of which were approved or cleared under section 505, 510(k), or 515 of such Act. (3) Coordination with taxation of other tobacco products Tobacco products meeting the definition of cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco in this section shall be classified and taxed as such despite any concentration of the nicotine inherent in those products or any addition of nicotine to those products during the manufacturing process. (4) Regulations The Secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance for coordinating the taxation of tobacco products and taxable nicotine to protect revenue and prevent double taxation. . (c) Taxable nicotine treated as a tobacco product Section 5702(c) is amended by striking and roll-your-own tobacco and inserting roll-your-own tobacco, and taxable nicotine . (d) Manufacturer of taxable nicotine Section 5702 , as amended by subsection (b), is amended by adding at the end the following new subsection: (r) Manufacturer of taxable nicotine (1) In general Any person who extracts, concentrates, or synthesizes nicotine shall be treated as a manufacturer of taxable nicotine (and as manufacturing such taxable nicotine). (2) Application of rules related to manufacturers of tobacco products Any reference to a manufacturer of tobacco products, or to manufacturing tobacco products, shall be treated as including a reference to a manufacturer of taxable nicotine, or to manufacturing taxable nicotine, respectively. . (e) Effective date (1) In general The amendments made by this section shall apply to articles removed in calendar quarters beginning after the date which is 180 days after the date of the enactment of this Act. (2) Transition rule for permit and bond requirements A person which is lawfully engaged in business as a manufacturer or importer of taxable nicotine (within the meaning of subchapter A of chapter 52 of the Internal Revenue Code of 1986, as amended by this section) on the date of the enactment of this Act, first becomes subject to the requirements of subchapter B of chapter 52 of such Code by reason of the amendments made by this section, and submits an application under such subchapter B to engage in such business not later than 90 days after the date of the enactment of this Act, shall not be denied the right to carry on such business by reason of such requirements before final action on such application. 138521. Termination of employer credit for paid family and medical leave Section 45S(i) is amended by striking December 31, 2025 and inserting December 31, 2023 . I Drug Pricing 1 Lowering Prices Through Drug Price Negotiation 139001. Providing for lower prices for certain high-priced single source drugs (a) Program To lower prices for certain high-Priced single source drugs Title XI of the Social Security Act is amended by adding after section 1184 ( 42 U.S.C. 1320e–3 ) the following new part: E Price Negotiation Program to Lower Prices for Certain High-Priced Single Source Drugs 1191. Establishment of program (a) In general The Secretary shall establish a Drug Price Negotiation Program (in this part referred to as the program ). Under the program, with respect to each price applicability period, the Secretary shall— (1) publish a list of negotiation-eligible drugs and selected drugs in accordance with section 1192; (2) enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193; (3) negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; and (4) carry out the administrative duties described in section 1196. (b) Definitions relating to timing For purposes of this part: (1) Initial price applicability year The term initial price applicability year means a year (beginning with 2025). (2) Price applicability period The term price applicability period means, with respect to a qualifying single source drug, the period beginning with the first initial price applicability year with respect to which such drug is a selected drug and ending with the last year during which the drug is a selected drug. (3) Selected drug publication date The term selected drug publication date means, with respect to each initial price applicability year, February 1 of the year that begins 2 years prior to such year. (4) Negotiation period The term negotiation period means, with respect to an initial price applicability year with respect to a selected drug, the period— (A) beginning on the sooner of— (i) the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or (ii) February 28 following the selected drug publication date with respect to such selected drug; and (B) ending on November 1 of the year that begins 2 years prior to the initial price applicability year. (c) Other definitions For purposes of this part: (1) Maximum fair price eligible individual The term maximum fair price eligible individual means, with respect to a selected drug— (A) in the case such drug is dispensed to the individual at a pharmacy, by a mail order service, or by another dispenser, an individual who is enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title if coverage is provided under such plan for such selected drug; and (B) in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier, an individual who is enrolled under part B of title XVIII, including an individual who is enrolled under an MA plan under part C of such title, if such selected drug is covered under such part. (2) Maximum fair price The term maximum fair price means, with respect to a year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price published pursuant to section 1195 in the Federal Register for such drug and year. (3) Unit The term unit means, with respect to a drug or biological, the lowest identifiable amount (such as a capsule or tablet, milligram of molecules, or grams) of the drug or biological that is dispensed or furnished. The determination of a unit, with respect to a drug or biological, pursuant to this paragraph shall not be subject to administrative or judicial review. (4) Total expenditures The term total expenditures includes, in the case of expenditures with respect to part D of title XVIII, ingredient costs, dispensing fees, sales tax, and if applicable, vaccine administration fees. The term total expenditures excludes, in the case of expenditures with respect to part B of such title, expenditures for a drug or biological that are bundled or packaged into the payment for another service. 1192. Selection of negotiation-eligible drugs as selected drugs (a) In general Not later than the selected drug publication date with respect to an initial price applicability year, in accordance with subsection (b), the Secretary shall select and publish in the Federal Register a list of— (1) (A) with respect to the initial price applicability year 2025, not more than 10 negotiation-eligible drugs described in subparagraph (A)(i) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year; (B) with respect to the initial price applicability year 2026, not more than 15 negotiation-eligible drugs described in subparagraph (A)(i) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year; (C) with respect to the initial price applicability year 2027, not more than 15 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year; and (D) with respect to the initial price applicability year 2028 or a subsequent year, not more than 20 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year; and (2) all negotiation-eligible drugs described in subparagraph (B) of such subsection with respect to such year. Subject to subsection (c)(2) and section 1194(f)(5), each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). (b) Selection of drugs (1) In general In carrying out subsection (a)(1), subject to paragraph (2), the Secretary shall, with respect to an initial price applicability year— (A) rank a combined list of negotiation-eligible drugs described in subsection (d)(1)(A) according to the total expenditures for such drugs under parts B and D of title XVIII, as determined by the Secretary, during the most recent period of 12 months prior to the selected drug publication date (but ending not later than October 31 of the year prior to the year of such drug publication date), with respect to such year, for which data are available, with the negotiation-eligible drugs with the highest total expenditures being ranked the highest; and (B) select from such ranked combined list for inclusion on the published list described in subsection (a) with respect to such year the negotiation-eligible drugs with the highest such rankings. (2) High spend part D drugs for 2025 and 2026 With respect to the initial price applicability year 2025 and with respect to the initial price applicability year 2026, the Secretary shall apply paragraph (1) as if the reference to negotiation-eligible drugs described in subsection (d)(1)(A) were a reference to negotiation-eligible drugs described in subsection (d)(1)(A)(i) and as if the reference to total expenditures for such drugs under parts B and D of title XVIII were a reference to total expenditures for such drugs under part D of title XVIII . (c) Selected drug (1) In general For purposes of this part, consistent with subsection (e)(2) and subject to paragraph (2), each negotiation-eligible drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a selected drug with respect to such year and each subsequent year beginning before the first year that begins after the date on which the Secretary determines at least one drug or biological product— (A) is approved or licensed (as applicable)— (i) under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or (ii) under section 351(k) of the Public Health Service Act using such drug as the reference product; and (B) is marketed pursuant to such approval or licensure. (2) Clarification A negotiation-eligible drug— (A) that is included on the list published under subsection (a) with respect to an initial price applicability year; and (B) for which the Secretary makes a determination described in paragraph (1) before or during the negotiation period with respect to such initial price applicability year, shall not be subject to the negotiation process under section 1194 with respect to such negotiation period and shall continue to be considered a selected drug under this part with respect to the number of negotiation-eligible drugs published on the list under subsection (a) with respect to such initial price applicability year. (d) Negotiation-Eligible drug (1) In general For purposes of this part, subject to paragraph (2), the term negotiation-eligible drug means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that is described in either of the following subparagraphs (or, with respect to the initial price applicability year 2025 or 2026, that is described in subparagraph (A)(i) or (B)): (A) High spend drugs The qualifying single source drug is, determined in accordance with subsection (e)(2)— (i) among the 50 qualifying single source drugs with the highest total expenditures under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3), during the most recent period for which data are available of at least 12 months prior to the selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date), with respect to such year; or (ii) among the 50 qualifying single source drugs with the highest total expenditures under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3), during such most recent period, as described in clause (i). (B) Insulin The qualifying single source drug is described in subsection (e)(1)(C). (2) Exception for small biotech drugs (A) In general Subject to subparagraph (C), the term negotiation-eligible drug shall not include, with respect to the initial price applicability years 2025, 2026, and 2027, a qualifying single source drug that meets either of the following: (i) Part D drugs The total expenditures for the qualifying single source drug under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3), during 2021— (I) are equal to or less than 1 percent of the total expenditures under such part D, as so determined, for all covered part D drugs during such year; and (II) are equal to at least 80 percent of the total expenditures under such part D, as so determined, for all covered part D drugs for which the manufacturer of the drug has an agreement in effect under section 1860D–14A during such year. (ii) Part B drugs The total expenditures for the qualifying single source drug under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3), during 2021— (I) are equal to or less than 1 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs covered under such part B during such year; and (II) are equal to at least 80 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs of the manufacturer that are covered under such part B during such year. (B) Clarifications relating to manufacturers (i) Aggregation rule All persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this paragraph. (ii) Limitation A qualifying single source drug described in subparagraph (A) shall not include a qualifying single source drug of a manufacturer if such manufacturer is acquired after 2021 by another manufacturer that does not meet the definition of a specified manufacturer under section 1860D–14C(g)(4)(B)(ii)), effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2024, effective January 1, 2024. (C) Drugs not included as small biotech drugs The following shall not be considered a qualifying single source drug described in subparagraph (A): (i) A vaccine that is licensed under section 351 of the Public Health Service Act and is marketed pursuant to such section. (ii) A new formulation, such as an extended release formulation, of a qualifying single source drug. (iii) A qualifying single source drug described in subsection (e)(1)(C). (3) Clarifications and determinations (A) Previously selected drugs and small biotech drugs excluded In applying clauses (i) and (ii) of paragraph (1)(A), the Secretary shall not consider or count— (i) drugs that are already selected drugs; and (ii) for initial price applicability years 2025, 2026, and 2027, qualifying single source drugs described in paragraph (2)(A). (B) Use of data In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1) or (2), the Secretary shall use data that is aggregated across dosage forms and strengths of the drug, including new formulations of the drug, such as an extended release formulation, and not based on the specific formulation or package size or package type of the drug. (4) Publication Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall publish in the Federal Register a list of negotiation-eligible drugs with respect to such selected drug publication date. (e) Qualifying single source drug (1) In general For purposes of this part, the term qualifying single source drug means, with respect to an initial price applicability year, subject to paragraphs (2) and (3), a covered part D drug (as defined in section 1860D–2(e)) that is described in any of the following or a drug or biological product covered under part B of title XVIII that is described in any of the following: (A) Drug products A drug— (i) that is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and is marketed pursuant to such approval; (ii) for which, as of the selected drug publication date with respect to such initial price applicability year, at least 7 years will have elapsed since the date of such approval; and (iii) that is not the listed drug for any drug that is approved and marketed under section 505(j) of such Act. (B) Biological products A biological product— (i) that is licensed under section 351(a) of the Public Health Service Act and is marketed under section 351 of such Act; (ii) for which, as of the selected drug publication date with respect to such initial price applicability year, at least 11 years will have elapsed since the date of such licensure; and (iii) that is not the reference product for any biological product that is licensed and marketed under section 351(k) of such Act. (C) Insulin product Any insulin product that is approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act and marketed pursuant to such approval or licensure, including any insulin product that has been deemed to be licensed under section 351 of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and is marketed pursuant to such section, regardless of whether such insulin product would be described in subparagraph (A) or (B). (2) Treatment of authorized generic drugs (A) In general In the case of a qualifying single source drug described in subparagraph (A) or (B) of paragraph (1) that is the listed drug (as such term is used in section 505(j) of the Federal Food, Drug, and Cosmetic Act) or the reference product (as defined in section 351(i) of the Public Health Service Act), with respect to an authorized generic drug, in applying the provisions of this part, such authorized generic drug and such listed drug or reference product shall be treated as the same qualifying single source drug. (B) Authorized generic drug defined For purposes of this paragraph, the term authorized generic drug means— (i) in the case of a drug, an authorized generic drug (as such term is defined in section 505(t)(3) of the Federal Food, Drug, and Cosmetic Act); and (ii) in the case of a biological product, a reference product (as such term is defined in section 351(i) of the Public Health Service Act) that— (I) has been licensed under section 351(a) of such Act; and (II) is marketed, sold, or distributed directly or indirectly to retail class of trade under a different labeling, packaging (other than repackaging as the reference product in blister packs, unit doses, or similar packaging for use in institutions), product code, labeler code, trade name, or trade mark than the reference product. (3) Exclusions In this part, the term qualifying single source drug does not include any of the following: (A) Certain orphan drugs A drug that is designated as a drug for only one rare disease or condition under section 526 of the Federal Food, Drug, and Cosmetic Act and for which the only approved indication (or indications) is for such disease or condition. (B) Low spend Medicare drugs A drug or biological product (other than an insulin product described in paragraph (1)(C)) with respect to which the total expenditures under parts B and D of title XVIII, as determined by the Secretary, during the most recent period for which data are available of at least 12 months prior to the selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date), with respect to such year is less than— (i) with respect to 2021, $200,000,000; or (ii) with respect to a subsequent year, the dollar amount specified in this subparagraph for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of December of such previous year. (f) No administrative or judicial review of determinations and selections The determination of negotiation-eligible drugs under subsection (d) and the selection of drugs under this section are not subject to administrative or judicial review. 1193. Manufacturer agreements (a) In general For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than February 28 following the selected drug publication date with respect to such selected drug, under which— (1) during the negotiation period for the initial price applicability year for the selected drug, the Secretary and manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period, agree to) a maximum fair price for such selected drug of the manufacturer in order for the manufacturer to provide access to such price— (A) to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during, subject to subparagraph (2), the price applicability period; and (B) to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to subparagraph (2), the price applicability period; (2) the Secretary and the manufacturer shall, in accordance with section 1194, renegotiate (and, by not later than the last date of such period, agree to) the maximum fair price for such drug, in order for the manufacturer to provide access to such maximum fair price (as so renegotiated)— (A) to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and (B) to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A); (3) access to the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided by the manufacturer to— (A) maximum fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at the pharmacy, mail order service, or other dispenser at the point-of-sale of such drug (and shall be provided by the manufacturer to the pharmacy, mail order service, or other dispenser, with respect to such maximum fair price eligible individuals who are dispensed such drugs), as described in paragraph (1)(A) or (2)(A), as applicable; and (B) hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug, as described in paragraph (1)(B) or (2)(B), as applicable; (4) the manufacturer, subject to subsection (d), submits to the Secretary, through an online portal established by the Secretary or other form and manner specified by the Secretary, for the negotiation period for the price applicability period (and, if applicable, before any period of renegotiation pursuant to section 1194(f)) with respect to such drug— (A) information on the non-Federal average manufacturer price for the drug for the applicable year or period; and (B) all other information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part, including information described in section 1194(e)(1); and (5) the manufacturer complies with requirements imposed by the Secretary for purposes of administering the program, including with respect to the duties described in section 1196. (b) Agreement in effect until drug is no longer a selected drug An agreement entered into under this section shall be effective, with respect to a selected drug, until such drug is no longer considered a selected drug under section 1192(c). (c) Confidentiality of information Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) shall be used only by the Secretary or disclosed to and used by the Comptroller General of the United States or the Medicare Payment Advisory Commission for purposes of carrying out this part. (d) Implementation for 2025 and 2026 Notwithstanding any other provision of this part, the Secretary shall implement this section for 2025 and 2026 by program instruction or otherwise. 1194. Negotiation and renegotiation process (a) In general For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug, with respect to the period for which such agreement is in effect and in accordance with subsections (b), (c), and (d), the Secretary and the manufacturer— (1) shall during the negotiation period with respect to such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and (2) renegotiate, in accordance with the process specified pursuant to subsection (f), such maximum fair price for such drug if such drug is a renegotiation-eligible drug under such subsection. (b) Negotiation process requirements (1) Methodology and process The Secretary shall develop and use a consistent methodology and process, in accordance with paragraph (2), for negotiations under subsection (a) that aims to achieve the lowest maximum fair price for each selected drug. (2) Specific elements of negotiation process As part of the negotiation process under this section, with respect to a selected drug and the negotiation period with respect to the initial price applicability year with respect to such drug, the following shall apply: (A) Submission of information Not later than March 1 of the year of the selected drug publication date, with respect to the selected drug, the manufacturer of the drug shall submit to the Secretary, in accordance with section 1193(a)(4), the information described in such section. (B) Initial offer by Secretary Not later than the June 1 following the selected drug publication date, the Secretary shall provide the manufacturer of a selected drug with a written initial offer that contains the Secretary’s proposal for the maximum fair price of the drug and a list of the considerations described in section 1194(e) that were used in developing such offer. (C) Response to initial offer (i) In general Not later than 30 days after the date of receipt of an initial offer under subparagraph (B), the manufacturer shall either accept such offer or propose a counteroffer to such offer. (ii) Counteroffer requirements If a manufacturer proposes a counteroffer, such counteroffer— (I) shall be in writing; and (II) shall be justified based on the factors described in subsection (e). (D) Response to counteroffer After receiving a counteroffer under subparagraph (C), the Secretary shall respond in writing to such counteroffer. (E) Deadline All negotiations shall end prior to the first day of November following the selected drug publication date, with respect to the initial price applicability year. (F) Limitations on offer amount In negotiating the maximum fair price of a selected drug, with respect to an initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, the Secretary shall not offer (or agree to a counteroffer for) a maximum fair price for the selected drug that— (i) exceeds the ceiling determined under subsection (c) for the selected drug and year; or (ii) as applicable, is less than the floor determined under subsection (d) for the selected drug and year. (G) Treatment of determination The establishment of a maximum fair price under this section is not subject to administrative or judicial review. (c) Ceiling for maximum fair price (1) In general The maximum fair price negotiated under this section for a selected drug, with respect to the first year of the price applicability period with respect to such drug, shall not exceed the applicable percent described in paragraph (2), with respect to such drug, of the following: (A) Initial price applicability year 2025 In the case of a selected drug with respect to which such initial price applicability year is 2025, the average of the non-Federal average manufacturer price for such drug for the first 3 calendar quarters of 2021 (or, in the case that there is not a non-Federal average manufacturer price available for such drug for any of such first 3 calendar quarters of 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or such first full year following the market entry), as applicable, to the year prior to the selected drug publication date with respect to such initial price applicability year. (B) Initial price applicability year 2026 and subsequent years In the case of a selected drug with respect to which such initial price applicability year is 2026 or a subsequent year, the lower of— (i) the average of the non-Federal average manufacturer price for such drug for the first 3 calendar quarters of 2021 (or, in the case that there is not a non-Federal average manufacturer price available for such drug for any of such first 3 calendar quarters of 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or such first full year following the market entry), as applicable, to the year prior to the selected drug publication date with respect to such initial price applicability year; or (ii) the non-Federal average manufacturer price for such drug for the year prior to the selected drug publication date with respect to such initial price applicability year. (2) Applicable percent described For purposes of paragraph (1), the applicable percent described in this paragraph is the following: (A) Short-monopoly drugs With respect to a selected drug (other than a post-exclusivity drug and a long-monopoly drug), 75 percent. (B) Post-exclusivity drugs With respect to a post-exclusivity drug, 65 percent. (C) Long-monopoly drugs With respect to a long-monopoly drug, 40 percent. (3) Post-exclusivity drug defined (A) In general In this part, subject to subparagraph (B), the term post-exclusivity drug means, with respect to an initial price applicability year, a selected drug for which at least 12 years, but fewer than 16 years, have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable. (B) Exclusions The term post-exclusivity drug shall not include any of the following: (i) A vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section. (ii) A selected drug that had an agreement under this part with the Secretary prior to the initial price applicability year 2030. (C) Clarification Nothing in subparagraph (B)(ii) shall limit the transition of a selected drug described in paragraph (2)(A) to a long-monopoly drug if the selected drug meets the definition of a long-monopoly drug. (4) Long-monopoly drug defined (A) In general In this part, subject to subparagraph (B), the term long-monopoly drug means, with respect to an initial price applicability year, a selected drug for which at least 16 years have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable. (B) Exclusion The term long-monopoly drug shall not include a vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section. (5) Non-Federal average manufacturer price In this part, the term non-Federal average manufacturer price has the meaning given such term in section 8126(h)(5) of title 38, United States Code. (d) Temporary floor for small biotech drugs In the case of a selected drug that is a qualifying single source drug described in section 1192(d)(2) and with respect to which the first initial price applicability year of the price applicability period with respect to such drug is 2028 or 2029, the maximum fair price negotiated under this section for such drug for such initial price applicability year may not be less than 66 percent of the average of the non-Federal average manufacturer price for such drug (as defined and applied in subsection (c)(4)) for the first 3 calendar quarters of 2021 (or, in the case that there is not a non-Federal average manufacturer price available for such drug for any of such first 3 calendar quarters of 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or such first full year following the market entry), as applicable, to the year prior to the selected drug publication date with respect to the initial price applicability year. (e) Considerations For purposes of negotiating the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall consider the following factors (and, with respect to post-exclusivity drugs and long-monopoly drugs, shall not consider factors other than those described in subparagraphs (B) and (C) of paragraph (1)): (1) Manufacturer-specific information The following information, with respect to such selected drug, including as submitted by the manufacturer: (A) Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs. (B) Market data for the drug, including the distribution of sales across different programs and purchasers and projected future revenues for the drug. (C) Unit costs of production and distribution of the drug. (D) Prior Federal financial support for novel therapeutic discovery and development with respect to the drug. (E) Data on patents and on existing and pending exclusivity for the drug. (F) National sales data for the drug. (G) Information on clinical trials for the drug. (2) Information on unmet medical needs and alternative treatments The following information, with respect to such selected drug: (A) The extent to which the drug represents a therapeutic advance as compared to existing therapeutic alternatives and, to the extent such information is available, the costs of such existing therapeutic alternatives. (B) Information on approval by the Food and Drug Administration of alternative drug products or biological products. (C) Information on comparative effectiveness analysis for such products, taking into consideration the effects of such products on specific populations, such as individuals with disabilities, the elderly, the terminally ill, children, and other patient populations. (D) The extent to which the drug addresses unmet medical needs for a condition for which treatment or diagnosis is not addressed adequately by available therapy. In considering information described in subparagraph (C), the Secretary shall not use evidence or findings from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. (3) Additional information Information submitted to the Secretary, in accordance with a process specified by the Secretary, by other parties that are affected by the establishment of a maximum fair price for the selected drug. (f) Renegotiation process (1) In general In the case of a renegotiation-eligible drug (as defined in paragraph (2)) that is selected under paragraph (3), the Secretary shall provide for a process of renegotiation (for years (beginning with 2027) during the price applicability period, with respect to such drug) of the maximum fair price for such drug consistent with paragraph (4). (2) Renegotiation-eligible drug defined In this section, the term renegotiation-eligible drug means a selected drug that is any of the following: (A) Addition of new indication A selected drug for which a new indication is added to the drug. (B) Change of status to a post-exclusivity drug A selected drug that is described in section 1192(d)(1)(A) that— (i) is not a post-exclusivity drug or a long-monopoly drug; and (ii) for which there is a change in status to that of a post-exclusivity drug. (C) Change of status to a long-monopoly drug A selected drug that is described in section 1192(d)(1)(A) that— (i) is not a long-monopoly drug; and (ii) for which there is a change in status to that of a long-monopoly drug. (D) Material changes A selected drug for which the Secretary determines there has been a material change of factors described in paragraph (1) or (2) of subsection (e). (3) Selection of drugs for renegotiation Each year the Secretary shall select among renegotiation-eligible drugs for renegotiation as follows: (A) All post-exclusivity negotiation-eligible drugs The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(B). (B) All long-monopoly negotiation-eligible drugs The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(C). (C) Remaining drugs Among the remaining renegotiation-eligible drugs described in subparagraphs (A) and (D) of paragraph (2), the Secretary shall select renegotiation-eligible drugs for which the Secretary expects renegotiation is likely to result in a significant change in the maximum fair price otherwise negotiated. (4) Renegotiation process The Secretary shall specify the process for renegotiation of maximum fair prices with the manufacturer of a renegotiation-eligible drug selected for renegotiation under this subsection. Such process shall, to the extent practicable, be consistent with the methodology and process established under subsection (b) and in accordance with subsections (c) and (d), and for purposes of applying subsections (c) and (d), the reference to the first initial price applicability year of the price applicability period with respect to such drug shall be treated as the first initial price applicability year of such period for which the maximum fair price established pursuant to such renegotiation applies, including for applying subsection (c)(2)(B) in the case of renegotiation-eligible drugs described in paragraph (3)(A) of this subsection and subsection (c)(2)(C) in the case of renegotiation-eligible drugs described in paragraph (3)(B) of this subsection. (5) Clarification A renegotiation-eligible drug for which the Secretary makes a determination described in section 1192(c)(1) before or during the period of renegotiation shall not be subject to the renegotiation process under this section. (6) No administrative or judicial review The determination of renegotiation-eligible drugs under paragraph (2) and the selection of renegotiation-eligible drugs under paragraph (3) are not subject to administrative or judicial review. (g) Request for information For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, with respect to a price applicability period, and other relevant data for purposes of this section— (1) the Secretary shall, not later than the selected drug publication date with respect to the initial price applicability year of such period, request drug pricing information from the manufacturer of such selected drug, including information described in subsection (e)(1); and (2) by not later than March 1 following the selected drug publication date, the manufacturer of such selected drug shall submit to the Secretary such requested information in such form and manner as the Secretary requires. The Secretary shall request, from the manufacturer or others, all additional information needed to carry out the negotiation and renegotiation process under this section. (h) Clarification In no case shall the maximum fair price negotiated under this section for a selected drug that is a qualifying single source drug described in subparagraph (A) or (B) of section 1192(e)(1) apply before— (1) in the case the selected drug is a qualifying single source drug described in such subparagraph (A), the date that is 9 years after the date on which the drug was approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act; and (2) in the case the selected drug is a qualifying single source drug described in such subparagraph (B), the date that is 13 years after the date on which the drug was licensed under section 351(a) of the Public Health Service Act. (i) Implementation for 2025 and 2026 Notwithstanding any other provision of this part, the Secretary shall implement this section for 2025 and 2026 by program instruction or otherwise. 1195. Publication of maximum fair prices (a) In general With respect to an initial price applicability year and a selected drug with respect to such year— (1) not later than November 15 of the year that is 2 years prior to such initial price applicability year, the Secretary shall publish on CMS.gov the maximum fair price for such drug negotiated under this part with the manufacturer of such drug; (2) not later than November 30 of the year that is 2 years prior to such initial price applicability year, the Secretary shall publish in the Federal Register the maximum fair price for such drug described in paragraph (1); and (3) not later than March 1 of the year prior to such initial price applicability year, the Secretary shall publish in the Federal Register, subject to section 1193(c) and based on the considerations as described in section 1194(e), the explanation for the maximum fair price for such drug described in paragraphs (1) and (2). (b) Updates (1) Subsequent year maximum fair prices For a selected drug, for each year subsequent to first initial price applicability year of the price applicability period with respect to such drug, with respect to which an agreement for such drug is in effect under section 1193, not later than November 30 of the year that is 2 years prior to such subsequent year, the Secretary shall publish in the Federal Register the maximum fair price applicable to such drug and year, which shall be— (A) subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) as of September of such previous year; or (B) in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price. (2) Prices negotiated after deadline In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price in the Federal Register by not later than 30 days after the date such maximum price is so determined. 1196. Administrative duties; coordination provisions (a) Administrative duties (1) In general For purposes of section 1191, the administrative duties described in this section are the following: (A) The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before— (i) any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of maximum fair price eligible individuals; and (ii) any other discounts. (B) The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of the drug. (C) The establishment of procedures to carry out the provisions of this part, as applicable, with respect to— (i) maximum fair price eligible individuals who are enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title; and (ii) maximum fair price eligible individuals who are enrolled under part B of such title, including who are enrolled under an MA plan under part C of such title. (D) The establishment of a negotiation process and renegotiation process in accordance with section 1194, including a process for acquiring information described in subsection (e) of such section. (E) The establishment of an online portal which manufacturers shall be required to use to submit information described in section 1194(b)(2)(A). (F) The sharing with the Secretary of the Treasury of such information as is necessary to determine the tax imposed by section 4192 of the Internal Revenue Code of 1986 (relating to enforcement of this part). (G) The establishment of an attestation and verification process for purposes of applying section 1192(d)(2)(B). (2) Monitoring compliance The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193, including by establishing a mechanism through which violations of such terms shall be reported. (b) Implementation for 2025 and 2026 Notwithstanding any other provision of this part, the Secretary shall implement this section for 2025 and 2026 by program instruction or otherwise. 1197. Civil monetary penalty (a) Violations relating to offering of maximum fair price Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that does not provide access to a price that is not more than the maximum fair price (or a lesser price) for such drug for such year— (1) to a maximum fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(1) and who is dispensed such drug during such year (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs); or (2) to a hospital, physician, or other provider of services or supplier with respect to maximum fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year; shall be subject to a civil monetary penalty equal to ten times the amount equal to the product of the number of units of such drug so furnished, dispensed, or administered during such year and the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider of services, or supplier and the maximum fair price for such drug for such year. (b) Violations of certain terms of agreement Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(5), including the requirement to submit information pursuant to section 1193(a)(4), shall be subject to a civil monetary penalty equal to $1,000,000 for each day of such violation. (c) False information Any manufacturer that knowingly provides false information for the attestation process or verification process established pursuant to section 1196(a)(1)(H), shall be subject to a civil monetary penalty equal to $100,000,000 for each item of such false information. (d) Application The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). . (b) Application of maximum fair prices and conforming amendments (1) Under Medicare (A) Application to payments under part B Section 1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w–3a(b)(1)(B)) is amended by inserting or in the case of such a drug or biological that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), 106 percent of the maximum fair price (as defined in section 1191(c)(2)) applicable for such drug and a year during such period after paragraph (4) . (B) Application under MA of cost-sharing for part B drugs based off of negotiated price Section 1852(a)(1)(B)(iv) of the Social Security Act ( 42 U.S.C. 1395w–22(a)(1)(B)(iv) ) is amended— (i) by redesignating subclause (VII) as subclause (VIII); and (ii) by inserting after subclause (VI) the following subclause: (VII) A drug or biological that is a selected drug (as referred to in section 1192(c)). . (C) Exception to part D non-interference Section 1860D–11(i) of the Social Security Act ( 42 U.S.C. 1395w–111(i) ) is amended— (i) in paragraph (1), by striking and at the end; (ii) in paragraph (2), by striking or institute a price structure for the reimbursement of covered part D drugs and inserting for covered part D drugs; and ; and (iii) by adding at the end the following: (3) may not institute a price structure for the reimbursement of covered part D drugs, except as provided under part E of title XI. . (D) Application as negotiated price under part D Section 1860D–2(d)(1) of the Social Security Act ( 42 U.S.C. 1395w–102(d)(1) ) is amended— (i) in subparagraph (B), by inserting , subject to subparagraph (D), after negotiated prices ; and (ii) by adding at the end the following new subparagraph: (D) Application of maximum fair price for selected drugs In applying this section, in the case of a covered part D drug that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated prices used for payment (as described in this subsection) shall be no greater than the maximum fair price (as defined in section 1191(c)(2)) for such drug and for each year during such period plus any dispensing fees for such drug. . (E) Coverage of selected drugs Section 1860D–4(b)(3) of the Social Security Act ( 42 U.S.C. 1395w–104(b)(3) ) is amended by adding at the end the following new subparagraph: (I) Required inclusion of selected drugs For 2025 and each subsequent year, the PDP sponsor offering a prescription drug plan shall include each covered part D drug that is a selected drug under section 1192 for which an agreement for such drug is in effect under section 1193 with respect to the year. . (F) Information from prescription drug plans and MA–PD plans required (i) Prescription drug plans Section 1860D–12(b) of the Social Security Act ( 42 U.S.C. 1395w–112(b) ) is amended by adding at the end the following new paragraph: (8) Provision of information related to maximum fair prices Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary in accordance with section 1194(g). . (ii) MA–PD plans Section 1857(f)(3) of the Social Security Act ( 42 U.S.C. 1395w–27(f)(3) ) is amended by adding at the end the following new subparagraph: (E) Provision of information related to maximum fair prices Section 1860D–12(b)(8). . (2) Drug price negotiation program prices included in best price Section 1927(c)(1)(C) of the Social Security Act ( 42 U.S.C. 1396r–8(c)(1)(C) ) is amended— (A) in clause (i)(VI), by striking any prices charged and inserting subject to clause (ii)(V), any prices charged ; and (B) in clause (ii)— (i) in subclause (III), by striking at the end ; and ; (ii) in subclause (IV), by striking at the end the period and inserting ; and ; and (iii) by adding at the end the following new subclause: (V) in the case of a rebate period and a covered outpatient drug that is a selected drug (as referred to in section 1192(c)) during such rebate period, shall be inclusive of the maximum fair price (as defined in section 1191(c)(2)) for such drug with respect to such period. . 139002. Selected drug manufacturer excise tax imposed during noncompliance periods (a) In general Chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: E Other items Sec. 4192. Selected drugs during noncompliance periods. 4192. Selected drugs during noncompliance periods (a) In general There is hereby imposed on the sale by the manufacturer, producer, or importer of any selected drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of— (1) such tax, divided by (2) the sum of such tax and the price for which so sold. (b) Noncompliance periods A day is described in this subsection with respect to a selected drug if it is a day during one of the following periods: (1) The period beginning on the March 1st immediately following the selected drug publication date and ending on the first date during which the manufacturer of the drug has in place an agreement described in subsection (a) of section 1193 of the Social Security Act with respect to such drug. (2) The period beginning on the November 2nd immediately following the March 1st described in paragraph (1) and ending on the first date during which the manufacturer of the drug and the Secretary have agreed to a maximum fair price under such agreement. (3) In the case of a selected drug with respect to which the Secretary of Health and Human Services has specified a renegotiation period under such agreement, the period beginning on the first date after the last date of such renegotiation period and ending on the first date during which the manufacturer of the drug has agreed to a renegotiated maximum fair price under such agreement. (4) With respect to information that is required to be submitted to the Secretary of Health and Human Services under such agreement, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted. (c) Applicable percentage For purposes of this section, the term applicable percentage means— (1) in the case of sales of a selected drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent, (2) in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent, (3) in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and (4) in the case of sales of such drug during any subsequent day, 95 percent. (d) Selected drug For purposes of this section— (1) In general The term selected drug means any selected drug (within the meaning of section 1192 of the Social Security Act) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing. (2) United States The term United States has the meaning given such term by section 4612(a)(4). (3) Coordination with rules for possessions of the United States Rules similar to the rules of paragraphs (2) and (4) of section 4132(c) shall apply for purposes of this section. (e) Other definitions For purposes of this section, the terms selected drug publication date and maximum fair price have the meaning given such terms in section 1191 of the Social Security Act. (f) Anti-Abuse rule In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b). . (b) No deduction for excise tax payments Section 275(a)(6) of the Internal Revenue Code of 1986 is amended by inserting or by section 4192 before the period at the end. (c) Certain exemptions from tax not applicable (1) Section 4221(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of the tax imposed by section 4192, paragraphs (3), (4), (5), and (6) shall not apply. . (2) Section 6416(b)(2) of such Code is amended by adding at the end the following: In the case of the tax imposed by section 4192, subparagraphs (B), (C), (D), and (E) shall not apply. . (d) Clerical amendment The table of subchapters for chapter 32 of such Code is amended by adding at the end the following new item: Subchapter E. Other items . (e) Effective date The amendments made by this section shall apply to sales after the date of the enactment of this Act. 139003. Funding In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended— (1) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2022; (2) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2023; (3) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2024; (4) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2025; (5) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2026; (6) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2027; (7) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2028; (8) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2029; (9) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2030; and (10) $300,000,000 to carry out the provisions of, including the amendments made by, this part in fiscal year 2031. 2 Prescription Drug Inflation Rebates 139101. Medicare part B rebate by manufacturers (a) In general Section 1847A of the Social Security Act ( 42 U.S.C. 1395w–3a ) is amended— (1) by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following subsection: (h) Rebate by manufacturers for single source drugs and biologicals with prices increasing faster than inflation (1) Requirements (A) Secretarial provision of information Not later than 6 months after the end of each calendar quarter beginning on or after July 1, 2023, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter: (i) Information on the total number of billing units of the billing and payment code described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter. (ii) Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter. (iii) The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter. (B) Manufacturer requirement For each calendar quarter beginning on or after July 1, 2023, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter. (2) Part B rebatable drug defined (A) In general In this subsection, the term part B rebatable drug means a single source drug or biological (as defined in subparagraph (D) of subsection (c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such subsection) but excluding a qualifying biosimilar biological product (as defined in subsection (b)(8)(B)(iii)), that would be payable under this part if such drug were furnished to an individual enrolled under this part, except such term shall not include such a drug or biological— (i) if, as determined by the Secretary, the average total allowed charges for such drug or biological under this part for a year per individual that uses such a drug or biological are less than, subject to subparagraph (B), $100; or (ii) that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10). (B) Increase The dollar amount applied under subparagraph (A)(i)— (i) for 2024, shall be the dollar amount specified under such subparagraph for 2023, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year; and (ii) for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year (without application of subparagraph (C)), increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year. (C) Rounding Any dollar amount determined under subparagraph (B) that is not a multiple of $10 shall be rounded to the nearest multiple of $10. (3) Rebate amount (A) In general For purposes of paragraph (1), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to subparagraphs (B) and (G) and paragraph (4), the amount equal to the product of— (i) the total number of billing units determined under subparagraph (B) for the billing and payment code of such drug; and (ii) the amount (if any) by which— (I) the amount equal to— (aa) in the case of a part B rebatable drug described in paragraph (1)(B) of section 1847A(b), 106 percent of the amount determined under paragraph (4) of such section for such drug during the calendar quarter; or (bb) in the case of a part B rebatable drug described in paragraph (1)(C) of such section, the payment amount under such paragraph for such drug during the calendar quarter; exceeds (II) the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter. (B) Total number of billing units For purposes of subparagraph (A)(i), the total number of billing units with respect to a part B rebatable drug is determined as follows: (i) Determine the total number of units equal to— (I) the total number of units, as reported under subsection (c)(1)(B) for each National Drug Code of such drug during the calendar quarter that is two calendar quarters prior to the calendar quarter as described in subparagraph (A), minus (II) the total number of units with respect to each National Drug Code of such drug for which payment was made under a State plan under title XIX (or waiver of such plan), as reported by States under section 1927(b)(2)(A) for the rebate period that is the same calendar quarter as described in subclause (I). (ii) Convert the units determined under clause (i) to billing units for the billing and payment code of such drug, using a methodology similar to the methodology used under this section, by dividing the units determined under clause (i) for each National Drug Code of such drug by the billing unit for the billing and payment code of such drug. (iii) Compute the sum of the billing units for each National Drug Code of such drug in clause (ii). (C) Determination of inflation-adjusted payment amount The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is— (i) the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by (ii) the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)). (D) Payment amount benchmark quarter The term payment amount benchmark quarter means the calendar quarter immediately prior to the calendar quarter beginning October 1, 2021. (E) Benchmark period CPI–U The term benchmark period CPI–U means the consumer price index for all urban consumers (United States city average) for the last month of the calendar quarter beginning October 1, 2021. (F) Rebate period CPI–U The term rebate period CPI–U means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter. (G) Exemption for shortages and severe supply chain disruptions The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part B rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of a biosimilar biological product, when the Secretary determines there are severe supply chain disruptions. (4) Special treatment of certain drugs and exemption (A) Subsequently approved drugs In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after March 1, 2021, clause (i) of paragraph (3)(C) shall be applied as if the term payment amount benchmark quarter were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term benchmark period CPI–U were defined under paragraph (3)(E) as if the reference to the last month of the calendar quarter immediately prior to the calendar quarter beginning October 1, 2021 under such paragraph were a reference to the first month of the first full calendar quarter after the day on which the drug was first marketed . (B) Timeline for provision of rebates for subsequently approved drugs In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after March 1, 2021, paragraph (1)(B) shall be applied as if the reference to July 1, 2023 under such paragraph were a reference to the later of the 6th full calendar quarter after the day on which the drug was first marketed or July 1, 2023. (D) Selected drugs In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)), in the case such drug is determined (pursuant to such section 1192(c)) to no longer be a selected drug, beginning the first calendar quarter after the price applicability period with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term payment amount benchmark quarter were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year beginning during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term benchmark period CPI–U were defined under paragraph (3)(E) as if the reference to the last month of the calendar quarter immediately prior to the calendar quarter beginning October 1, 2021 under such paragraph were a reference to the March of the year preceding such last year. (5) Application to beneficiary coinsurance In the case of a part B rebatable drug, if the payment amount described in paragraph (3)(A)(ii)(I) (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c), the payment amount described in subsection (b)(1)(B) for such drug) for a calendar quarter exceeds the inflation adjusted payment for such quarter— (A) in computing the amount of any coinsurance applicable under this part to an individual to whom such drug is furnished, the computation of such coinsurance shall be equal to 20 percent of the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and (B) the amount of such coinsurance for such calendar quarter, as computed under subparagraph (A), shall be applied as a percent, as determined by the Secretary, to the payment amount that would otherwise apply under subparagraphs (B) or (C) of subsection (b)(1). (6) Rebate deposits Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841. (7) Civil money penalty If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). ; and (2) in subsection (i), as redesignated by paragraph (1)— (A) in paragraph (4), by striking at the end and ; (B) in paragraph (5), by striking at the end the period and inserting a semicolon; and (C) by adding at the end the following new paragraphs: (6) the determination of units under subsection (h); (7) the determination of whether a drug is a part B rebatable drug under subsection (h); (8) the calculation of the rebate amount under subsection (h); and (9) the computation of coinsurance under subsection (h)(5); and (10) the computation of amounts paid under section 1833(a)(1)(EE). . (b) Amounts payable; cost-Sharing Section 1833 of the Social Security Act ( 42 U.S.C. 1395l ) is amended— (1) in subsection (a)(1)— (A) in subparagraph (G), by inserting , subject to subsection (i)(9), after the amounts paid ; (B) in subparagraph (S), by striking with respect to and inserting subject to subparagraph (EE), with respect to ; (C) by striking and (DD) and inserting (DD) ; and (D) by inserting before the semicolon at the end the following: , and (EE) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1847A(h)) for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c) for which, the payment amount described in section 1847A(b)(1)(B)) for such drug for such quarter exceeds the inflation-adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter, the amounts paid shall be equal to the percent of the payment amount under paragraph (3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as applicable, that equals the difference between (i) 100 percent, and (ii) the percent applied under section 1847A(h)(5)(B) ; (2) in subsection (i), by adding at the end the following new paragraph: (9) In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(h)) for which payment under this subsection is not packaged into a payment for a service furnished on or after July 1, 2023, under the revised payment system under this subsection, in lieu of calculation of coinsurance and the amount of payment otherwise applicable under this subsection, the provisions of section 1847A(h)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(h)(5) and subsection (a) apply under such section and subsection. ; and (3) in subsection (t)(8), by adding at the end the following new subparagraph: (F) Part B rebatable drugs In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(h), except if such drug does not have a copayment amount as a result of application of subparagraph (E)) for which payment under this part is not packaged into a payment for a covered OPD service (or group of services) furnished on or after July 1, 2023, and the payment for such drug under this subsection is the same as the amount for a calendar quarter under paragraph (3)(A)(ii)(I) of section 1847A(h), under the system under this subsection, in lieu of calculation of the copayment amount and the amount of payment otherwise applicable under this subsection (other than the application of the limitation described in subparagraph (C)), the provisions of section 1847A(h)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(h)(5) and subsection (a) apply under such section and subsection. . (c) Conforming amendments (1) To part B ASP calculation Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)) is amended by inserting subsection (h) or before section 1927 . (2) Excluding part B drug inflation rebate from best price Section 1927(c)(1)(C)(ii)(I) of the Social Security Act ( 42 U.S.C. 1396r–8(c)(1)(C)(ii)(I) ) is amended by inserting or section 1847A(h) after this section . (3) Coordination with Medicaid rebate information disclosure Section 1927(b)(3)(D)(i) of the Social Security Act ( 42 U.S.C. 1396r–8(b)(3)(D)(i) ) is amended by inserting and the rebate after the payment amount . (4) Excluding part B drug inflation rebates from average manufacturer price Section 1927(k)(1)(B)(i) of the Social Security Act ( 42 U.S.C. 1396r–8(k)(1)(B)(i) ), as previously amended, is further amended— (A) in subclause (IV), by striking and ; (B) in subclause (V), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following new subclause: (VI) rebates paid by manufacturers under section 1847A(h); and . (d) Funding In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $12,500,000 for fiscal year 2022 and $7,500,000 for each of fiscal years 2023 through 2031, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. 139102. Medicare part D rebate by manufacturers (a) In general Part D of title XVIII of the Social Security Act is amended by inserting after section 1860D–14A ( 42 U.S.C. 1395w–114a ) the following new section: 1860D–14B. Manufacturer rebate for certain drugs with prices increasing faster than inflation (a) Requirements (1) Secretarial provision of information Not later than 9 months after the end of each applicable year (as defined in subsection (g)(7)), subject to paragraph (3), the Secretary shall, for each part D rebatable drug, report to each manufacturer of such part D rebatable drug the following for such year: (A) The amount (if any) of the excess annual manufacturer price increase described in subsection (b)(1)(A)(ii) for each dosage form and strength with respect to such drug and year. (B) The rebate amount specified under subsection (b) for each dosage form and strength with respect to such drug and year. (2) Manufacturer requirements For each applicable year, the manufacturer of a part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in paragraph (1) for such year, shall provide to the Secretary a rebate that is equal to the amount specified in subsection (b) for such dosage form and strength with respect to such drug for such year. (3) Transition rule for reporting The Secretary may, for each rebatable covered part D drug, delay the timeframe for reporting the information and rebate amount described in subparagraphs (A) and (B) of such paragraph for the applicable year of 2023 until not later than September 30, 2025. (b) Rebate amount (1) In general (A) Calculation For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable year is, subject to subparagraph (C), paragraph (5)(B), and paragraph (6), the amount equal to the product of— (i) subject to subparagraph (B) of this paragraph, the total number of units that are used to calculate the average manufacturer price of such dosage form and strength with respect to such part D rebatable drug, as reported by the manufacturer of such drug under section 1927 for each month, with respect to such year; and (ii) the amount (if any) by which— (I) the annual manufacturer price (as determined in paragraph (2)) paid for such dosage form and strength with respect to such part D rebatable drug for the year; exceeds (II) the inflation-adjusted payment amount determined under paragraph (3) for such dosage form and strength with respect to such part D rebatable drug for the year. (B) Excluded units For purposes of subparagraph (A)(i), the Secretary shall exclude from the total number of units for a dosage form and strength with respect to a part D rebatable drug, with respect to an applicable year, the following: (i) Units of each dosage form and strength of such part D rebatable drug for which payment was made under a State plan under title XIX (or waiver of such plan), as reported by States under section 1927(b)(2)(A). (ii) Units of each dosage form and strength of such part D rebatable drug for which a rebate is paid under section 1847A(h). (C) Exemption for shortages and severe supply chain disruptions The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part D rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of a generic drug, when the Secretary determines there are severe supply chain disruptions. (2) Determination of annual manufacturer price The annual manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of— (A) the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of such year; and (B) the ratio of— (i) the total number of units of such dosage form and strength reported under section 1927 with respect to each such calendar quarter of such year; to (ii) the total number of units of such dosage form and strength reported under section 1927 with respect to such year, as determined by the Secretary. (3) Determination of inflation-adjusted payment amount The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable year, subject to paragraph (5), is— (A) the benchmark year manufacturer price determined under paragraph (4) for such dosage form and strength with respect to such drug and year; increased by (B) the percentage by which the applicable year CPI–U (as defined in subsection (g)(5)) for the year exceeds the benchmark period CPI–U (as defined in subsection (g)(4)). (4) Determination of benchmark year manufacturer price The benchmark year manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of— (A) the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of the payment amount benchmark year (as defined in subsection (g)(3)); and (B) the ratio of— (i) the total number of units reported under section 1927 of such dosage form and strength with respect to each such calendar quarter of such payment amount benchmark year; to (ii) the total number of units reported under section 1927 of such dosage form and strength with respect to such payment amount benchmark year. (5) Special treatment of certain drugs and exemption (A) Subsequently approved drugs In the case of a part D rebatable drug first approved or licensed by the Food and Drug Administration after October 1, 2021, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term payment amount benchmark year were defined under subsection (g)(3) as the first calendar year beginning after the day on which the drug was first marketed by any manufacturer and subparagraph (B) of paragraph (3) shall be applied as if the term benchmark period CPI–U were defined under subsection (g)(4) as if the reference to the month immediately prior to October 2021 under such subsection were a reference to January of the first year beginning after the date on which the drug was first marketed by any manufacturer . (B) Treatment of new formulations (i) In general In the case of a part D rebatable drug that is a line extension of a part D rebatable drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the rebate amount under paragraph (1) and the inflation adjusted payment amount under paragraph (3) with respect to such part D rebatable drug and an applicable year, consistent with the formula applied under subsection (c)(2)(C) of section 1927 for determining a rebate obligation for a rebate period under such section. (ii) Line extension defined In this subparagraph, the term line extension means, with respect to a part D rebatable drug, a new formulation of the drug, such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation. (C) Selected drugs In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)), in the case such drug is determined (pursuant to such section 1192(c)) to no longer be a selected drug, for each applicable year beginning after the price applicability period with respect to such drug, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term payment amount benchmark year were defined under subsection (g)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (3) shall be applied as if the term benchmark period CPI–U were defined under subsection (g)(4) as if the reference to the month immediately prior to October 1, 2021 under such subsection were a reference to January of the last year beginning during such price applicability period with respect to such drug. (6) Reconciliation in case of revised AMP reports The Secretary shall provide for a method and process under which, in the case of a manufacturer of a part D rebatable drug that submits revisions to information submitted under section 1927 by the manufacturer with respect to such drug, the Secretary determines, pursuant to such revisions, adjustments, if any, to the calculation of the amount specified in this subsection for a dosage form and strength with respect to such part D rebatable drug and an applicable year and reconciles any overpayments or underpayments in amounts paid as rebates under this subsection. Any identified underpayment shall be rectified by the manufacturer not later than 30 days after the date of receipt from the Secretary of information on such underpayment. (c) Rebate deposits Amounts paid as rebates under subsection (b) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841. (d) Information For purposes of carrying out this section, the Secretary shall use information submitted by manufacturers under section 1927(b)(3) and information submitted by States under section 1927(b)(2)(A). (e) Civil money penalty If a manufacturer of a part D rebatable drug has failed to comply with the requirement under subsection (a)(2) with respect to such drug for an applicable year, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to 125 percent of the amount specified in subsection (b) for such drug for such year. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). (f) No administrative or judicial review There shall be no administrative or judicial review of the following: (1) The determination of units under this section. (2) The determination of whether a drug is a part D rebatable drug under this section. (3) The calculation of the rebate amount under this section. (g) Definitions In this section: (1) Part D rebatable drug (A) In general The term part D rebatable drug means a drug or biological that would (without application of this section) be a covered part D drug, except such term shall, with respect to an applicable year, not include such a drug or biological if the average annual total cost under this part for such year per individual who uses such a drug or biological, as determined by the Secretary, is less than, subject to subparagraph (B), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary. (B) Increase The dollar amount applied under subparagraph (A)— (i) for 2024, shall be the dollar amount specified under such subparagraph for 2023, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of 2023; and (ii) for a subsequent year, shall be the dollar amount specified in this subparagraph for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of the previous year. Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10. (2) Unit The term unit means, with respect to a part D rebatable drug, the lowest dispensable amount (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug, as reported under section 1927. (3) Payment amount benchmark year The term payment amount benchmark year means the year ending in the month immediately prior to October 1, 2021. (4) Benchmark period CPI–U The term benchmark period CPI–U means the consumer price index for all urban consumers (United States city average) for the month immediately prior to October 2021. (5) Applicable year CPI–U The term applicable year CPI–U means, with respect to an applicable year, the consumer price index for all urban consumers (United States city average) for January of such year. (6) Average manufacturer price The term average manufacturer price has the meaning, with respect to a part D rebatable drug of a manufacturer, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927. (7) Applicable year The term applicable year means a calendar year beginning with 2023. (h) Implementation for 2023 and 2024 Notwithstanding any other provision of this section, the Secretary shall implement this section for 2023 and 2024 by program instruction or otherwise. . (b) Conforming amendments (1) To part B ASP calculation Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)), as amended by section 139101(c)(1), is further amended by striking subsection (h) or section 1927 and inserting subsection (h), section 1927, or section 1860D–14B . (2) Excluding part D drug inflation rebate from best price Section 1927(c)(1)(C)(ii)(I) of the Social Security Act ( 42 U.S.C. 1396r–8(c)(1)(C)(ii)(I) ), as amended by section 139101(c)(2), is further amended by striking or section 1847A(h) and inserting , section 1847A(h), or section 1860D–14B . (3) Coordination with Medicaid rebate information disclosure Section 1927(b)(3)(D)(i) of the Social Security Act ( 42 U.S.C. 1396r–8(b)(3)(D)(i) ), as amended by section 139101(c)(3), is further amended by striking or to carry out section 1847B and inserting or to carry out section 1847B or section 1860D–14B . (4) Excluding part D drug inflation rebates from average manufacturer price Section 1927(k)(1)(B)(i) of the Social Security Act ( 42 U.S.C. 1396r–8(k)(1)(B)(i) ), as previously amended, is further amended by adding at the end the following new subclause: (VII) rebates paid by manufacturers under section 1860D-14B. . (c) Funding In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $12,500,000 for fiscal year 2022 and $7,500,000 for each of fiscal years 2023 through 2031, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. 3 Part D Improvements and Maximum Out-of-Pocket Cap for Medicare Beneficiaries 139201. Medicare part D benefit redesign (a) Benefit structure redesign Section 1860D–2(b) of the Social Security Act ( 42 U.S.C. 1395w–102(b) ) is amended— (1) in paragraph (2)— (A) in subparagraph (A), in the matter preceding clause (i), by inserting for a year preceding 2024 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2024 and each subsequent year after paragraph (3) ; (B) in subparagraph (C)— (i) in clause (i), in the matter preceding subclause (I), by inserting for a year preceding 2024, after paragraph (4), ; and (ii) in clause (ii)(III), by striking and each subsequent year and inserting through 2023 ; and (C) in subparagraph (D)— (i) in clause (i)— (I) in the matter preceding subclause (I), by inserting for a year preceding 2024, after paragraph (4), ; and (II) in subclause (I)(bb), by striking a year after 2018 and inserting each of years 2019 through 2023 ; and (ii) in clause (ii)(V), by striking 2019 and each subsequent year and inserting each of years 2019 through 2023 ; (2) in paragraph (3)(A)— (A) in the matter preceding clause (i), by inserting for a year preceding 2024, after and (4), ; and (B) in clause (ii), by striking for a subsequent year and inserting for each of years 2007 through 2023 ; and (3) in paragraph (4)— (A) in subparagraph (A)— (i) in clause (i)— (I) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right; (II) in the matter preceding item (aa), as redesignated by subclause (I), by striking is equal to the greater of— and inserting “is equal to— (I) for a year preceding 2024, the greater of— ; (III) by striking the period at the end of item (bb), as redesignated by subclause (I), and inserting ; and ; and (IV) by adding at the end the following: (II) for 2024 and each succeeding year, $0. ; and (ii) in clause (ii)— (I) by striking clause (i)(I) and inserting clause (i)(I)(aa) ; and (II) by adding at the end the following new sentence: The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2023 for purposes of section 1860D–14(a)(1)(D)(iii). ; (B) in subparagraph (B)— (i) in clause (i)— (I) in subclause (V), by striking or at the end; (II) in subclause (VI)— (aa) by striking for a subsequent year and inserting for each of years 2021 through 2023 ; and (bb) by striking the period at the end and inserting a semicolon; and (III) by adding at the end the following new subclauses: (VII) for 2024, is equal to $2,000; or (VIII) for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved. ; and (ii) in clause (ii), by striking clause (i)(II) and inserting clause (i) ; (C) in subparagraph (C)(i), by striking and for amounts and inserting and, for a year preceding 2024, for amounts ; and (D) in subparagraph (E), by striking In applying and inserting For each of years 2011 through 2023, in applying . (b) Reinsurance payment amount Section 1860D–15(b) of the Social Security Act ( 42 U.S.C. 1395w–115(b) ) is amended— (1) in paragraph (1)— (A) by striking equal to 80 percent and inserting “equal to— (A) for a year preceding 2024, 80 percent ; (B) in subparagraph (A), as added by subparagraph (A), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new subparagraph: (B) for 2024 and each subsequent year, the sum of— (i) an amount equal to 20 percent of such allowable reinsurance costs attributable to that portion of gross prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B) with respect to applicable drugs (as defined in section 1860D–14C(g)(2)); and (ii) an amount equal to 40 percent of such allowable reinsurance costs attributable to that portion of gross prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B) with respect to covered part D drugs that are not applicable drugs (as so defined). ; (2) in paragraph (2)— (A) by striking COSTS .—For purposes and inserting Costs.— (A) In general Subject to subparagraph (B), for purposes ; and (B) by adding at the end the following new subparagraph: (B) Inclusion of manufacturer discounts on applicable drugs For purposes of applying subparagraph (A), the term ‘allowable reinsurance costs’ shall include the portion of the negotiated price (as defined in section 1860D–14C(g)(6)) of an applicable drug (as defined in section 1860D–14C(g)(2)) that was paid by a manufacturer under the manufacturer discount program under section 1860D–14C. ; and (3) in paragraph (3)— (A) in the first sentence, by striking For purposes and inserting Subject to paragraph (2)(B), for purposes ; and (B) in the second sentence, by inserting (or, with respect to 2024 and subsequent years, in the case of an applicable drug, as defined in section 1860D-14C(g)(2), by a manufacturer) after by the individual or under the plan . (c) Reduced cost-sharing; beneficiary premium percentage (1) Cost-sharing (A) In general Section 1860D–2(b)(2)(A) of the Social Security Act ( 42 U.S.C. 1395w–102(b)(2)(A) ) is amended— (i) in the subparagraph header, by striking 25 percent coinsurance and inserting Coinsurance ; (ii) in clause (i), by inserting (or, for 2024 and each subsequent year, 23 percent) after 25 percent ; and (iii) in clause (ii), by inserting (or, for 2024 and each subsequent year, 23 percent) after 25 percent . (B) Conforming amendment Section 1860D–14(a)(2)(D) of the Social Security Act ( 42 U.S.C. 1395w–114(a)(2)(D) ) is amended by inserting (or, for 2024 and each subsequent year, instead of coinsurance of 23 percent ) after instead of coinsurance of 25 percent . (2) Beneficiary premium percentage (A) In general Section 1860D–13(a)(3)(A) of the Social Security Act ( 42 U.S.C. 1395w–113(a)(3)(A) ) is amended by inserting (or, for 2024 and each subsequent year, 23.5 percent) after 25.5 percent . (B) Conforming amendments (i) Section 1860D–11(g)(6) of the Social Security Act ( 42 U.S.C. 1395w–111(g)(6) ) is amended by inserting (or, for 2024 and each subsequent year, 23.5 percent) after 25.5 percent . (ii) Section 1860D–13(a)(7)(B)(i) of the Social Security Act ( 42 U.S.C. 1395w–113(a)(7)(B)(i) ) is amended— (I) in subclause (I), by inserting (or, for 2024 and each subsequent year, 23.5 percent) after 25.5 percent ; and (II) in subclause (II), by inserting (or, for 2024 and each subsequent year, 23.5 percent) after 25.5 percent . (iii) Section 1860D–15(a) of the Social Security Act ( 42 U.S.C. 1395w–115(a) ) is amended by inserting (or, for 2024 and each subsequent year, 76.5 percent) after 74.5 percent . (d) Manufacturer discount program (1) In general Part D of title XVIII of the Social Security Act (42 U.S.C. 1395w–101 through 42 U.S.C. 1395w–153 ), as amended by section 139102, is further amended by inserting after section 1860D–14B the following new sections: 1860D–14C. Manufacturer discount program (a) Establishment The Secretary shall establish a manufacturer discount program (in this section referred to as the program ). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c). The Secretary shall establish a model agreement for use under the program by not later than January 1, 2023, in consultation with manufacturers, and allow for comment on such model agreement. (b) Terms of agreement (1) In general (A) Agreement An agreement under this section shall require the manufacturer to provide, in accordance with this section, discounted prices for applicable drugs of the manufacturer that are dispensed to applicable beneficiaries on or after January 1, 2024. (B) Clarification Nothing in this section shall be construed as affecting— (i) the application of a coinsurance of 23 percent of the negotiated price, as applied under paragraph (2)(A) of section 1860D–2(b), for costs described in such paragraph; or (ii) the application of the copayment amount described in paragraph (4)(A) of such section, with respect to costs described in such paragraph. (C) Timing of agreement (i) Special rule for 2024 In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2024, and ending on December 31, 2024, the manufacturer shall enter into such agreement not later than 30 days after the date of the establishment of a model agreement under subsection (a). (ii) 2025 and subsequent years In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2025 or a subsequent plan year, the manufacturer shall enter into such agreement not later than a calendar quarter or semi-annual deadline established by the Secretary. (2) Provision of appropriate data Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program. (3) Compliance with requirements for administration of program Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under subsection (d)(3), as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1). (4) Length of agreement (A) In general An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B). (B) Termination (i) By the Secretary The Secretary shall provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate. (ii) By a manufacturer A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year— (I) if the termination occurs before January 31 of a plan year, as of the day after the end of the plan year; and (II) if the termination occurs on or after January 31 of a plan year, as of the day after the end of the succeeding plan year. (iii) Effectiveness of termination Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination. (iv) Notice to third party The Secretary shall provide notice of such termination to a third party with a contract under subsection (d)(3) within not less than 30 days before the effective date of such termination. (c) Duties described The duties described in this subsection are the following: (1) Administration of program Administering the program, including— (A) the determination of the amount of the discounted price of an applicable drug of a manufacturer; (B) the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between— (i) the negotiated price of the applicable drug; and (ii) the discounted price of the applicable drug; (C) the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as specified by the Secretary; and (D) providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, applicable beneficiaries, and the third party with a contract under subsection (d)(3). (2) Monitoring compliance (A) In general The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section. (B) Notification If a third party with a contract under subsection (d)(3) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under subsection (e). (3) Collection of data from prescription drug plans and MA–PD plans The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section. (d) Administration (1) In general Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c). (2) Limitation In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program. (3) Contract with third parties The Secretary shall enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this section. At a minimum, the contract with a third party under the preceding sentence shall require that the third party— (A) receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate; (B) receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this section; (C) provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this section, as necessary for the manufacturer to fulfill its obligations under this section; and (D) permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program. (4) Performance requirements The Secretary shall establish performance requirements for a third party with a contract under paragraph (3) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this section. (5) Implementation The Secretary shall implement the program under this section for 2024 and 2025 by program instruction or otherwise. (e) Enforcement (1) Audits Each manufacturer with an agreement in effect under this section shall be subject to periodic audit by the Secretary. (2) Civil money penalty (A) In general A manufacturer that fails to provide discounted prices for applicable drugs of the manufacturer dispensed to applicable beneficiaries in accordance with such agreement shall be subject to a civil money penalty for each such failure in an amount the Secretary determines is equal to the sum of— (i) the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and (ii) 25 percent of such amount. (B) Application The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). (f) Clarification regarding availability of other covered part D drugs Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in). (g) Definitions In this section: (1) Applicable beneficiary The term applicable beneficiary means an individual who, on the date of dispensing a covered part D drug— (A) is enrolled in a prescription drug plan or an MA–PD plan; (B) is not enrolled in a qualified retiree prescription drug plan; and (C) has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C) as if clause (iii) of such section included a reference to costs reimbursed through insurance, a group health plan, or certain other third-party payment arrangements, for covered part D drugs in the year that exceed— (i) in the case of an individual not described in clause (ii) or (iii), the annual deductible for such year, as specified in section 1860D-2(b)(1); (ii) in the case of a subsidy eligible individual described in section 1860D-14(a)(1), the annual deductible for such year, as specified in subparagraph (B) of such section; and (iii) in the case of a subsidy eligible individual described in section 1860D–14(a)(2), the annual deductible for such year, as specified in subparagraph (B) of such section. (2) Applicable drug The term applicable drug , with respect to an applicable beneficiary— (A) means a covered part D drug— (i) approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and (ii) (I) if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; (II) if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or (III) is provided through an exception or appeal; and (B) does not include a selected drug (as referred to under section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug. (3) Applicable number of calendar days The term applicable number of calendar days means— (A) with respect to claims for reimbursement submitted electronically, 14 days; and (B) with respect to claims for reimbursement submitted otherwise, 30 days. (4) Discounted price (A) In general The term discounted price means, subject to subparagraphs (B) and (C), with respect to an applicable drug of a manufacturer dispensed during a year to an applicable beneficiary— (i) who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and (ii) who has incurred such costs, as so determined, in the year that are equal to or exceed such threshold for the year, 80 percent of the negotiated price of such drug. (B) Phase-in for certain drugs dispensed to LIS beneficiaries (i) In general In the case of an applicable drug of a specified manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary who is a subsidy eligible individual (as defined in section 1860D–14(a)(3)), the term discounted price means the specified LIS percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer. (ii) Specified manufacturer (I) In general In this subparagraph, subject to subclause (II), the term specified manufacturer means a manufacturer of an applicable drug for which, in 2021— (aa) the manufacturer had a coverage gap discount agreement under section 1860D-14A; (bb) the total expenditures for all of the specified drugs of the manufacturer covered by such agreement or agreements for such year and covered under this part during such year represented less than 1.0 percent of the total expenditures under this part for all covered Part D drugs during such year; and (cc) the total expenditures for all of the specified drugs of the manufacturer that are single source drugs and biological products covered under part B during such year represented less than 1.0 percent of the total expenditures under part B for all drugs or biological products covered under such part during such year. (II) Specified drugs (aa) In general For purposes of this clause, the term specified drug means, with respect to a specified manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer. (bb) Aggregation rule All persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary. (III) Limitation The term specified manufacturer shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2024, effective January 1, 2024. (iii) Specified LIS percent In this subparagraph, the specified LIS percent means, with respect to a year— (I) for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year— (aa) for 2024, 99 percent; (bb) for 2025, 98 percent; (cc) for 2026, 95 percent; (dd) for 2027, 92 percent; and (ee) for 2028 and each subsequent year, 90 percent; and (II) for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year— (aa) for 2024, 99 percent; (bb) for 2025, 98 percent; (cc) for 2026, 95 percent; (dd) for 2027, 92 percent; (ee) for 2028, 90 percent; (ff) for 2029, 85 percent; and (gg) for 2030 and each subsequent year, 80 percent. (C) Phase-in for specified small manufacturers (i) In general In the case of an applicable drug of a specified small manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary, the term discounted price means the specified small manufacturer percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer. (ii) Specified small manufacturer (I) In general In this subparagraph, subject to subclause (III), the term ‘specified small manufacturer’ means a manufacturer of an applicable drug for which, in 2021— (aa) the manufacturer is a specified manufacturer (as defined in subparagraph (B)(ii)); and (bb) the total expenditures under part D for any one of the specified small manufacturer drugs of the manufacturer that are covered by the agreement or agreements under section 1860D–14A of such manufacturer for such year and covered under this part during such year are equal to or more than 80 percent of the total expenditures under this part for all specified small manufacturer drugs of the manufacturer that are covered by such agreement or agreements for such year and covered under this part during such year. (II) Specified small manufacturer drugs (aa) In general For purposes of this clause, the term specified small manufacturer drugs means, with respect to a specified small manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer. (bb) Aggregation rule All persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary. (III) Limitation The term specified small manufacturer shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified small manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2024, effective January 1, 2024. (iii) Specified small manufacturer percent In this subparagraph, the term specified small manufacturer percent means, with respect to a year— (I) for an applicable drug dispensed for an applicable beneficiary who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year— (aa) for 2024, 99 percent; (bb) for 2025, 98 percent; (cc) for 2026, 95 percent; (dd) for 2027, 92 percent; and (ee) for 2028 and each subsequent year, 90 percent; and (II) for an applicable drug dispensed for an applicable beneficiary who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year— (aa) for 2024, 99 percent; (bb) for 2025, 98 percent; (cc) for 2026, 95 percent; (dd) for 2027, 92 percent; (ee) for 2028, 90 percent; (ff) for 2029, 85 percent; and (gg) for 2030 and each subsequent year, 80 percent. (D) Total expenditures For purposes of this paragraph, the term total expenditures includes, in the case of expenditures with respect to part D, ingredient costs, dispensing fees, sales tax, and, if applicable, vaccine administration fees. The term total expenditures excludes, in the case of expenditures with respect to part B, expenditures for a drug or biological that are bundled or packaged into the payment for another service. (E) Special case for certain claims (i) Claims spanning deductible In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls above such annual deductible. (ii) Claims spanning out-of-pocket threshold In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price— (I) in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and (II) in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold. (5) Manufacturer The term manufacturer means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law. (6) Negotiated price The term negotiated price has the meaning given such term in section 423.100 of title 42, Code of Federal Regulations (or any successor regulation) and, with respect to an applicable drug, such negotiated price shall include any dispensing fee and, if applicable, any vaccine administration fee for the applicable drug. (7) Qualified retiree prescription drug plan The term qualified retiree prescription drug plan has the meaning given such term in section 1860D–22(a)(2). 1860D–14D. Selected drug subsidy program With respect to covered part D drugs that would be applicable drugs (as defined in section 1860D–14C(g)(2) but for the application of subparagraph (B) of such section, the Secretary shall provide a process whereby, in the case of an applicable beneficiary (as defined in section 1860D–14C(g)(1)) who, with respect to a year, is enrolled in a prescription drug plan or is enrolled in an MA–PD plan, has not incurred costs that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i), and is dispensed such a drug the Secretary (periodically and on a timely basis) provides the PDP sponsor or the MA organization offering the plan, a subsidy with respect to such drug that is equal to 10 percent of the negotiated price (as defined in section 1860D–14C(g)(6)) of such drug. . (2) Sunset of Medicare coverage gap discount program Section 1860D–14A of the Social Security Act ( 42 U.S.C. 1395–114a ) is amended— (A) in subsection (a), in the first sentence, by striking The Secretary and inserting Subject to subsection (h), the Secretary ; and (B) by adding at the end the following new subsection: (h) Sunset of program (1) In general The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2024, and, subject to paragraph (2), agreements under this section shall be terminated as of such date. (2) Continued application for applicable drugs dispensed prior to sunset The provisions of this section (including all responsibilities and duties) shall continue to apply on and after January 1, 2024, with respect to applicable drugs dispensed prior to such date. . (3) Inclusion of actuarial value of manufacturer discounts in bids Section 1860D–11 of the Social Security Act ( 42 U.S.C. 1395w–111 ) is amended— (A) in subsection (b)(2)(C)(iii)— (i) by striking assumptions regarding the reinsurance and inserting “assumptions regarding— (I) the reinsurance ; and (ii) by adding at the end the following: (II) for 2024 and each subsequent year, the manufacturer discounts provided under section 1860D–14C subtracted from the actuarial value to produce such bid; and ; and (B) in subsection (c)(1)(C)— (i) by striking an actuarial valuation of the reinsurance and inserting “an actuarial valuation of— (i) the reinsurance ; (ii) in clause (i), as inserted by clause (i) of this subparagraph, by adding and at the end; and (iii) by adding at the end the following: (ii) for 2024 and each subsequent year, the manufacturer discounts provided under section 1860D–14C; . (e) Conforming amendments (1) Section 1860D–2 of the Social Security Act ( 42 U.S.C. 1395w–102 ) is amended— (A) in subsection (a)(2)(A)(i)(I), by striking , or an increase in the initial and inserting or, for a year preceding 2024, an increase in the initial ; (B) in subsection (c)(1)(C)— (i) in the subparagraph heading, by striking at initial coverage limit ; and (ii) by inserting for a year preceding 2024 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2024 and each subsequent year after subsection (b)(3) for the year each place it appears; and (C) in subsection (d)(1)(A), by striking or an initial and inserting or, for a year preceding 2024, an initial . (2) Section 1860D–4(a)(4)(B)(i) of the Social Security Act ( 42 U.S.C. 1395w–104(a)(4)(B)(i) ) is amended by striking the initial and inserting for a year preceding 2024, the initial . (3) Section 1860D–14(a) of the Social Security Act ( 42 U.S.C. 1395w–114(a) ) is amended— (A) in paragraph (1)— (i) in subparagraph (C), by striking The continuation and inserting For a year preceding 2024, the continuation ; (ii) in subparagraph (D)(iii), by striking 1860D–2(b)(4)(A)(i)(I) and inserting 1860D–2(b)(4)(A)(i)(I)(aa) ; and (iii) in subparagraph (E), by striking The elimination and inserting For a year preceding 2024, the elimination ; and (B) in paragraph (2)— (i) in subparagraph (C), by striking The continuation and inserting For a year preceding 2024, the continuation ; and (ii) in subparagraph (E), by striking 1860D–2(b)(4)(A)(i)(I) and inserting 1860D–2(b)(4)(A)(i)(I)(aa) . (4) Section 1860D–21(d)(7) of the Social Security Act ( 42 U.S.C. 1395w–131(d)(7) ) is amended by striking section 1860D–2(b)(4)(B)(i) and inserting section 1860D–2(b)(4)(C)(i) . (5) Section 1860D–22(a)(2)(A) of the Social Security Act ( 42 U.S.C. 1395w–132(a)(2)(A) ) is amended— (A) by striking the value of any discount and inserting the following: the value of— (i) for years prior to 2024, any discount ; (B) in clause (i), as inserted by subparagraph (A) of this paragraph, by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new clause: (ii) for 2024 and each subsequent year, any discount provided pursuant to section 1860D–14C. . (6) Section 1860D–41(a)(6) of the Social Security Act ( 42 U.S.C. 1395w–151(a)(6) ) is amended— (A) by inserting for a year before 2024 after 1860D–2(b)(3) ; and (B) by inserting for such year before the period. (7) Section 1860D–43 of the Social Security Act ( 42 U.S.C. 1395w–153 ) is amended— (A) in subsection (a)— (i) by striking paragraph (1) and inserting the following: (1) participate in— (A) for 2011 through 2023, the Medicare coverage gap discount program under section 1860D–14A; and (B) for 2024 and each subsequent year, the manufacturer discount program under section 1860D–14C; ; (ii) by striking paragraph (2) and inserting the following: (2) have entered into and have in effect— (A) for 2011 through 2023, an agreement described in subsection (b) of section 1860D–14A with the Secretary; and (B) for 2024 and each subsequent year, an agreement described in subsection (b) of section 1860D–14C with the Secretary; and ; and (iii) by striking paragraph (3) and inserting the following: (3) have entered into and have in effect, under terms and conditions specified by the Secretary— (A) for 2011 through 2023, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14A; and (B) for 2024 and each subsequent year, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14C. ; and (B) by striking subsection (b) and inserting the following: (b) Effective date Paragraphs (1)(A), (2)(A), and (3)(A) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2024, and paragraphs (1)(B), (2)(B), and (3)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2024. . (8) Section 1927 of the Social Security Act ( 42 U.S.C. 1396r–8 ) is amended— (A) in subsection (c)(1)(C)(i)(VI), by inserting before the period at the end the following: or under the manufacturer discount program under section 1860D–14C ; and (B) in subsection (k)(1)(B)(i)(V), by inserting before the period at the end the following: or under section 1860D–14C . (f) Implementation for 2024 and 2025 Notwithstanding any other provision of this section, the Secretary shall implement this section, including the amendments made by this section, for 2024 and 2025 by program instruction or otherwise. (g) Funding In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $44,000,000 for fiscal year 2022, $38,000,000 for fiscal year 2023, and $32,000,000 for each of fiscal years 2024 through 2031, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. 139202. Maximum monthly cap on cost sharing payments under prescription drug plans and ma–pd plans (a) In general Section 1860D–2(b) of the Social Security Act ( 42 U.S.C. 1395w–102(b) ), as amended by section 139201, is amended— (1) in paragraph (2)— (A) in subparagraph (A), by striking and (D) and inserting , (D), and (E) ; and (B) by adding at the end the following new subparagraph: (E) Maximum monthly cap on cost sharing payments (i) In general For plan years beginning on or after January 1, 2025, each PDP sponsor offering a prescription drug plan and each MA organization offering an MA–PD plan shall provide to any enrollee of such plan, including an enrollee who is a subsidy eligible individual (as defined in paragraph (3) of section 1860D-14(a)), the option to elect with respect to a plan year to pay cost sharing under the plan in monthly amounts that are capped in accordance with this subparagraph. (ii) Determination of maximum monthly cap For each month in the plan year for which an enrollee in a prescription drug plan or an MA–PD plan has made an election pursuant to clause (i), the PDP sponsor or MA organization shall determine a maximum monthly cap (as defined in clause (iv)) for such enrollee. (iii) Beneficiary monthly payments With respect to an enrollee who has made an election pursuant to clause (i), for each month described in clause (ii), the PDP sponsor or MA organization shall bill such enrollee an amount (not to exceed the maximum monthly cap) for the out-of-pocket costs of such enrollee in such month. (iv) Maximum monthly cap defined In this subparagraph, the term maximum monthly cap means, with respect to an enrollee— (I) for the first month for which the enrollee has made an election pursuant to clause (i), an amount determined by calculating— (aa) the annual out-of-pocket threshold specified in paragraph (4)(B) minus the incurred costs of the enrollee as described in paragraph (4)(C); divided by (bb) the number of months remaining in the plan year; and (II) for a subsequent month, an amount determined by calculating— (aa) the sum of any remaining out-of-pocket costs owed by the enrollee from a previous month that have not yet been billed to the enrollee and any additional out-of-pocket costs incurred by the enrollee; divided by (bb) the number of months remaining in the plan year. (v) Additional requirements The following requirements shall apply with respect to the option to make an election pursuant to clause (i) under this subparagraph: (I) Secretarial responsibilities The Secretary shall provide information to part D eligible individuals on the option to make such election through educational materials, including through the notices provided under section 1804(a). (II) Timing of election An enrollee in a prescription drug plan or an MA–PD plan may make such an election— (aa) prior to the beginning of the plan year; or (bb) in any month during the plan year. (III) Pdp sponsor and ma organization responsibilities Each PDP sponsor offering a prescription drug plan or MA organization offering an MA–PD plan— (aa) may not limit the option for an enrollee to make such an election to certain covered part D drugs; (bb) shall, prior to the plan year, notify prospective enrollees of the option to make such an election in promotional materials; (cc) shall include information on such option in enrollee educational materials; (dd) shall have in place a mechanism to notify a pharmacy during the plan year when an enrollee incurs out-of-pocket costs with respect to covered part D drugs that make it likely the enrollee may benefit from making such an election; (ee) shall provide that a pharmacy, after receiving a notification described in item (dd) with respect to an enrollee, informs the enrollee of such notification; (ff) shall ensure that such an election by an enrollee has no effect on the amount paid to pharmacies (or the timing of such payments) with respect to covered part D drugs dispensed to the enrollee; and (gg) shall have in place a financial reconciliation process to correct inaccuracies in payments made by an enrollee under this subparagraph with respect to covered part D drugs during the plan year. (IV) Failure to pay amount billed If an enrollee fails to pay the amount billed for a month as required under this subparagraph, the election of the enrollee pursuant to clause (i) shall be terminated and the enrollee shall pay the cost sharing otherwise applicable for any covered part D drugs subsequently dispensed to the enrollee up to the annual out-of-pocket threshold specified in paragraph (4)(B). (V) Clarification regarding past due amounts Nothing in this subparagraph shall be construed as prohibiting a PDP sponsor or an MA organization from billing an enrollee for an amount owed under this subparagraph. (VI) Treatment of unsettled balances Any unsettled balances with respect to amounts owed under this subparagraph shall be treated as plan losses and the Secretary shall not be liable for any such balances outside of those assumed as losses estimated in plan bids. ; and (2) in paragraph (4)— (A) in subparagraph (C), by striking in subparagraph (E) and inserting in subparagraph (E) and subject to subparagraph (F) ; and (B) by adding at the end the following new subparagraph: (F) Inclusion of costs paid under maximum monthly cap option In applying subparagraph (A), with respect to an enrollee who has made an election pursuant to clause (i) of paragraph (2)(E), costs shall be treated as incurred if such costs are paid by a PDP sponsor or an MA organization under the option provided under such paragraph. . (b) Application to alternative prescription drug coverage Section 1860D–2(c) of the Social Security Act ( 42 U.S.C. 1395w–102(c) ) is amended by adding at the end the following new paragraph: (4) Same maximum monthly cap on cost sharing For plan years beginning on or after January 1, 2025, the maximum monthly cap on cost sharing payments under the option provided under subsection (b)(2)(E) shall apply to such coverage. . (c) Implementation for 2025 The Secretary shall implement this section, including the amendments made by this section, for 2025 by program instruction or otherwise. (d) Funding In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $1,000,000 for each of fiscal years 2022 through 2031, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. 4 Repeal of Certain Prescription Drug Rebate Rule 139301. Prohibiting implementation of rule relating to eliminating the anti-kickback statute safe harbor protection for prescription drug rebates Beginning January 1, 2026, the Secretary of Health and Human Services shall not implement, administer, or enforce the provisions of the final rule published by the Office of the Inspector General of the Department of Health and Human Services on November 30, 2020, and titled Fraud and Abuse; Removal of Safe Harbor Protection for Rebates Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection for Certain Point-of-Sale Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager Service Fees (85 Fed. Reg. 76666). 5 Miscellaneous 139401. Appropriate cost-sharing for certain insulin products under Medicare part D (a) In general Section 1860D–2 of the Social Security Act ( 42 U.S.C. 1395w–102 ) is amended— (1) in subsection (b)— (A) in paragraph (1)(A), by striking The coverage and inserting Subject to paragraph (8), the coverage ; (B) in paragraph (2)(A), by striking and (D) and inserting and (D) and paragraph (8) ; (C) in paragraph (3)(A), by striking and (4) and inserting (4), and (8) ; (D) in paragraph (4)(A)(i), by striking The coverage and inserting Subject to paragraph (8), the coverage ; and (E) by adding at the end the following new paragraph: (8) Treatment of cost-sharing for certain insulin products (A) In general For plan years beginning on or after January 1, 2023, the following shall apply with respect to insulin products (as defined in subparagraph (B)): (i) No application of deductible The deductible under paragraph (1) shall not apply with respect to such insulin products. (ii) Application of cost-sharing (I) Plan year 2023 For plan year 2023, the coverage provides benefits for such insulin products, regardless of whether an individual has reached the initial coverage limit under paragraph (3) or the out-of-pocket threshold under paragraph (4), with cost-sharing that is equal to the applicable copayment amount. (II) Plan year 2024 and subsequent plan years For plan year 2024 and subsequent plan years, the coverage provides benefits for such insulin products, prior to an individual reaching the out-of-pocket threshold under paragraph (4), with cost-sharing that is equal to the applicable copayment amount. (III) Applicable copayment amount For purposes of this clause, the term applicable copayment amount means, with respect to an insulin product under a prescription drug plan or an MA–PD plan, an amount that is not more than $35. (B) Insulin product For purposes of this paragraph, the term insulin product means an insulin product that is approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act and marketed pursuant to such approval or licensure, including any insulin product that has been deemed to be licensed under section 351 of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and marketed pursuant to such section. ; and (2) in subsection (c), by adding at the end the following new paragraph: (4) Treatment of cost-sharing for insulin products The coverage is provided in accordance with subsection (b)(8). . (b) Conforming amendments to cost-sharing for low-income individuals Section 1860D–14(a) of the Social Security Act ( 42 U.S.C. 1395w–114(a) ) is amended— (1) in paragraph (1)— (A) in subparagraph (D)(iii), by adding at the end the following new sentence: For plan year 2023 and subsequent plan years, the copayment amount applicable under the preceding sentence to an insulin product (as defined in section 1860D–2(b)(8)(B)) furnished to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled. ; and (B) in subparagraph (E), by inserting the following before the period at the end or under section 1860D–2(b)(8) in the case of an insulin product (as defined in subparagraph (B) of such section) ; and (2) in paragraph (2)— (A) in subparagraph (D), by adding at the end the following new sentence: For plan year 2023 and subsequent plan years, the amount of the coinsurance applicable under the preceding sentence to an insulin product (as defined in section 1860D–2(b)(8)(B)) furnished to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled. ; and (B) in subparagraph (E), by adding at the end the following new sentence: For plan year 2023, the amount of the copayment or coinsurance applicable under the preceding sentence to an insulin product (as defined in section 1860D–2(b)(8)(B)) furnished to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled. (c) Implementation The Secretary shall implement this section for plan years 2023 and 2024 by program instruction or otherwise. 139402. Coverage of adult vaccines recommended by the Advisory Committee on Immunization Practices under Medicare part D (a) Ensuring treatment of cost sharing is consistent with treatment of vaccines under medicare part b Section 1860D–2 of the Social Security Act ( 42 U.S.C. 1395w–102 ), as amended by section 139401, is further amended— (1) in subsection (b)— (A) in paragraph (1)(A), by striking paragraph (8) and inserting paragraphs (8) and (9) ; (B) in paragraph (2)(A), by striking paragraph (8) and inserting paragraphs (8) and (9) ; (C) in paragraph (3)(A), by striking and (8) and inserting (8), and (9) ; (D) in paragraph (4)(A)(i), by striking paragraph (8) and inserting paragraphs (8) and (9) ; and (E) by adding at the end the following new paragraph: (9) Treatment of cost sharing for adult vaccines recommended by the advisory committee on immunization practices consistent with treatment of vaccines under part b (A) In general For plan years beginning on or after January 1, 2024 , the following shall apply with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in subparagraph (B)): (i) No application of deductible The deductible under paragraph (1) shall not apply with respect to such vaccine. (ii) No application of coinsurance or any other cost-sharing There shall be no coinsurance or other cost-sharing under this part with respect to such vaccine, regardless of whether for costs below, at, or above the initial coverage limit under paragraph (3) or the out-of-pocket threshold under paragraph (4). (B) Adult vaccines recommended by the advisory committee on immunization practices For purposes of this paragraph, the term adult vaccine recommended by the Advisory Committee on Immunization Practices means a covered part D drug that is a vaccine licensed under section 351 of the Public Health Service Act for use by adult populations and administered in accordance with recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention. ; and (2) in subsection (c), by adding at the end the following new paragraph: (5) Treatment of cost sharing for adult vaccines recommended by the advisory committee on immunization practices The coverage is in accordance with subsection (b)(9). . (b) Conforming amendments to cost sharing for low-income individuals Section 1860D–14(a) of the Social Security Act ( 42 U.S.C. 1395w–114(a) ), as amended by section 139401, is further amended— (1) in paragraph (1)(D), in each of clauses (ii) and (iii), by striking In the case and inserting Subject to paragraph (6), in the case ; (2) in paragraph (2)— (A) in subparagraph (B), by striking A reduction and inserting Subject to paragraph (6), a reduction (B) in subparagraph (D), by striking The substitution and inserting Subject to paragraph (6), the substitution ; and (C) in subparagraph (E), by striking subsection (c) and inserting paragraph (6) and subsection (c) ; and (3) by adding at the end the following new paragraph: (6) No application of cost sharing for adult vaccines recommended by the advisory committee on immunization practices For plan years beginning on or after January 1, 2024, there shall be no cost sharing under this section, including no annual deductible applicable under this section, with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in subparagraph (B) of such section). . (c) Rule of construction Nothing in this section shall be construed as limiting coverage under part D of title XVIII of the Social Security Act for vaccines that are not recommended by the Advisory Committee on Immunization Practices. (d) Implementation for 2024 The Secretary shall implement this section, including the amendments made by this section, for 2024 by program instruction or otherwise. 139403. Payment for biosimilar biological products during initial period Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w–3a(c)(4)) is amended— (1) in each of subparagraphs (A) and (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and moving such subclauses 2 ems to the right; (2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and moving such clauses 2 ems to the right; (3) by striking unavailable .—In the case and inserting “ unavailable .— (A) In general Subject to subparagraph (B), in the case ; and (4) by adding at the end the following new subparagraph: (B) Limitation on payment amount for biosimilar biological products during initial period In the case of a biosimilar biological product furnished on or after July 1, 2023, during the initial period described in subparagraph (A) with respect to the biosimilar biological product, the amount payable under this section for the biosimilar biological product is the lesser of the following: (i) The amount determined under clause (ii) of such subparagraph for the biosimilar biological product. (ii) The amount determined under subsection (b)(1)(B) for the reference biological product. . 139404. Temporary increase in Medicare part B payment for certain biosimilar biological products Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w–3a(b)(8)) is amended— (1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving the margin of each such redesignated clause 2 ems to the right; (2) by striking product .—The amount and inserting the following: “ product .— (A) In general Subject to subparagraph (B), the amount ; and (3) by adding at the end the following new subparagraph: (B) Temporary payment increase (i) In general In the case of a qualifying biosimilar biological product that is furnished during the applicable 5-year period for such product, the amount specified in this paragraph for such product with respect to such period is the sum determined under subparagraph (A), except that clause (ii) of such subparagraph shall be applied by substituting 8 percent for 6 percent . (ii) Applicable 5-year period For purposes of clause (i), the applicable 5-year period for a qualifying biosimilar biological product is— (I) in the case of such a product for which payment was made under this paragraph as of March 31, 2022, the 5-year period beginning on April 1, 2022; and (II) in the case of such a product for which payment is first made under this paragraph during a calendar quarter during the period beginning April 1, 2022, and ending March 31, 2027, the 5-year period beginning on the first day of such calendar quarter during which such payment is first made. (iii) Qualifying biosimilar biological product defined For purposes of this subparagraph, the term qualifying biosimilar biological product means a biosimilar biological product described in paragraph (1)(C) with respect to which— (I) in the case of a product described in clause (ii)(I), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product; and (II) in the case of a product described in clause (ii)(II), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product. . 139405. Improving access to adult vaccines under Medicaid and CHIP (a) Medicaid (1) Requiring coverage of adult vaccinations (A) In general Section 1902(a)(10)(A) of the Social Security Act ( 42 U.S.C. 1396a(a)(10)(A) ) is amended in the matter preceding clause (i) by inserting (13)(B), after (5), . (B) Medically needy Section 1902(a)(10)(C)(iv) of such Act ( 42 U.S.C. 1396a(a)(10)(C)(iv) ) is amended by inserting , (13)(B), after (5) . (2) No cost sharing for vaccinations (A) General cost-sharing limitations Section 1916 of the Social Security Act ( 42 U.S.C. 1396o ) is amended— (i) in subsection (a)(2)— (I) in subparagraph (G), by inserting a comma after State plan ; (II) in subparagraph (H), by striking ; or and inserting a comma; (III) in subparagraph (I), by striking ; and and inserting , or ; and (IV) by adding at the end the following new subparagraph: (J) vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; and ; and (ii) in subsection (b)(2)— (I) in subparagraph (G), by inserting a comma after State plan ; (II) in subparagraph (H), by striking ; or and inserting a comma; (III) in subparagraph (I), by striking ; and and inserting , or ; and (IV) by adding at the end the following new subparagraph: (J) vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; 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 by adding at the end the following new clause: (xiv) Vaccines described in section 1905(a)(13)(B) and the administration of such vaccines. . (3) Increased FMAP for adult vaccines Section 1905(b) of the Social Security Act ( 42 U.S.C. 1396d(b) ) is amended— (A) by striking and (5) and inserting (5) ; (B) by striking services and vaccines described in subparagraphs (A) and (B) of subsection (a)(13), and prohibits cost-sharing for such services and vaccines and inserting services described in subsection (a)(13)(A), and prohibits cost-sharing for such services ; (C) by striking medical assistance for such services and vaccines and inserting medical assistance for such services ; and (D) by inserting , and (6) during the first 8 fiscal quarters beginning on or after the effective date of this clause, in the case of a State which, as of the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 , provides medical assistance for vaccines described in subsection (a)(13)(B) and their administration and prohibits cost-sharing for such vaccines, the Federal medical assistance percentage, as determined under this subsection and subsection (y), shall be increased by 1 percentage point with respect to medical assistance for such vaccines before the first period. (b) CHIP (1) Requiring coverage of adult vaccinations Section 2103(c) of the Social Security Act ( 42 U.S.C. 1397cc(c) ) is amended by adding at the end the following paragraph: (12) Required coverage of approved, recommended adult vaccines and their administration Regardless of the type of coverage elected by a State under subsection (a), if the State child health plan or a waiver of such plan provides child health assistance or pregnancy-related assistance (as defined in section 2112) to an individual who is 19 years of age or older, such assistance shall include coverage of vaccines described in section 1905(a)(13)(B) and their administration. . (2) No cost-sharing for vaccinations Section 2103(e)(2) of such Act ( 42 U.S.C. 1397cc(e)(2) ) is amended by inserting vaccines described in subsection (c)(12) (and the administration of such vaccines), after in vitro diagnostic products described in subsection (c)(10) (and administration of such products), . (c) Effective date The amendments made by this section take effect on the 1st day of the 1st fiscal quarter that begins on or after the date that is 1 year after the date of enactment of this Act and shall apply to expenditures made under a State plan or waiver of such plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w-6) or under a State child health plan or waiver of such plan under title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or after such effective date. J Supplemental Security Income for the Territories 131001. Extension of the supplemental security income program to Puerto Rico, the United States Virgin Islands, Guam, and American Samoa (a) In general Section 303 of the Social Security Amendments of 1972 (86 Stat. 1484) is amended by striking subsection (b). (b) Conforming amendments (1) Definition of state Section 1101(a)(1) of the Social Security Act ( 42 U.S.C. 1301(a)(1) ) is amended by striking the 5th sentence and inserting the following: Such term when used in title XVI includes Puerto Rico, the United States Virgin Islands, Guam, and American Samoa. . (2) Exemption of SSI payments from limit on total payments to the territories Section 1108(a)(1) of such Act ( 42 U.S.C. 1308(a)(1) ) is amended by striking under titles I, X, XIV, and XVI . (3) United States nationals treated the same as citizens Section 1614(a)(1)(B) of such Act ( 42 U.S.C. 1382c(a)(1)(B) ) is amended— (A) in clause (i)(I), by inserting or national of the United States, after citizen ; (B) in clause (i)(II), by adding ; or at the end; and (C) in clause (ii), by inserting or national after citizen . (4) Territories included in geographic meaning of United States Section 1614(e) of such Act ( 42 U.S.C. 1382c(e) ) is amended by striking and the District of Columbia and inserting , the District of Columbia, Puerto Rico, the United States Virgin Islands, Guam, and American Samoa . (c) Waiver authority The Commissioner of Social Security may waive or modify any statutory requirement relating to the provision of benefits under the Supplemental Security Income Program under title XVI of the Social Security Act in Puerto Rico, the United States Virgin Islands, Guam, or American Samoa, to the extent that the Commissioner deems it necessary in order to adapt the program to the needs of the territory involved. (d) Effective date This section and the amendments made by this section shall take effect on January 1, 2024.

Passed the House of Representatives November 19, 2021. Cheryl L. Johnson, Clerk.

August 3, 2022 Read the second time and placed on the calendar