Balanced Budget Downpayment Act, I
PL 104-99 (H.R.2880), enacted 01/26/1996

110 STAT. 26 
PUBLIC LAW 104-99-JAN. 26, 1996 
Public Law 104-99 
104th Congress 
Jan. 26, 1996 
[H.R. 2880] 
The Balanced 
Budget 
Downpayment 
Act, I. 
An Act 
Making appropriations for fiscal year 1996 to make a downpajmient toward a 
balanced budget, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, That the 
following sums are hereby appropriated, out of any money in the 
Treasury not otherwise appropriated, and out of applicable cor-
porate or other revenues, receipts, and funds, for the several depart-
ments, agencies, corporations, and other organizational units of 
Government for the fiscal year 1996, and for other purposes, namely: 
TITLE I 
SEC. 101. (a) Such amounts as may be necessary under the 
authority and conditions provided in the applicable appropriations 
Act for the fiscal year 1995 including the authority and conditions 
provided in emergency supplemental appropriations Acts for fiscal 
year 1995 for continuing projects or activities, except for those 
E
rojects and activities provided for in Public Law 104-91 and Public 
law 104-92, including the costs of direct loans and loan guarantees 
(not otherwise specifically provided for in this Act) which were 
conducted in the fiscal year 1995 and for which appropriations, 
fiinds, or other authority would be available in the following appro-
priations Act as passed each House, excluding conference reports: 
The Department of the Interior and Related Agencies 
Appropriations Act, 1996; and 
The Departments of Labor, Health and Human Services, 
and Education, and Related Agencies Appropriations Act, 1996: 
Provided, That whenever the amount which would be made avail-
able or the authority which would be granted in these Acts is 
greater than that which would be available or granted under current 
operations, the pertinent project or activity shall be continued at 
a rate for operations not exceeding the current rate. 
(b) Whenever the amount which would be made available or 
the authority which would be granted under an Act listed in this 
section as passed by the House as of the date of enactment of 
this Act, is different from that which would be available or granted 
under such Act as passed by the Senate as of the date of enactment 
of this Act, the pertinent project or activity shall be continued 
at a rate for operations not exceeding the current rate or the 
rate permitted by the action of the House or the Senate, whichever 
is lower, under the authority eind conditions provided in the 
applicable appropriations Act for the fiscal year 1995: Provided, 
That where an item is not included in either version or where 
an item is included in only one version of the Act as passed 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 27 
by both Houses as of the date of enactment of this Act, the pertinent 
project or activity shall not be continued except as provided for 
in section 111 under the appropriation, fund, or authority granted 
by the applicable appropriations Act for the fiscal year 1995 and 
under the authority and conditions provided in the applicable appro-
priations Act for the fiscal year 1995. 
(c) Whenever an Act listed in this section has been passed 
by only the House or only the Senate as of the date of enactment 
of this Act, the pertinent project or activity shall be continued 
under the appropriation, fund, or authority granted by the one 
House at a rate for operations not exceeding the current rate 
or the rate permitted by the action of the one House, whichever 
is lower, and under the authority and conditions provided in the 
applicable appropriations Act for the fiscal year 1995: Provided, 
That where an item is fiinded in the applicable appropriations 
Act for the fiscal year 1995 and not included in the version passed 
by the one House as of the date of enactment of this Act, the 
pertinent project or activity shall not be continued except as pro-
vided for in section 111 under the appropriation, fund, or authority 
granted by the applicable appropriations Act for the fiscal year 
1995 and under the authority and conditions provided in the 
applicable appropriations Act for the fiscal year 1995. 
SEC. 102, Appropriations made by section 101 shall be available 
to the extent and in the manner which would be provided by 
the pertinent appropriations Act. 
SEC. 103. No appropriations or funds made available or author-
ity granted pursuant to section 101 shall be used to initiate or 
resume any project or activity for which appropriations, fiinds, 
or other authority were not available during the fiscal year 1995. 
SEC. 104. No provision which is included in an appropriations 
Act enumerated in section 101 but which was not included in 
the applicable appropriations Act for fiscal year 1995 and which 
by its terms is applicable to more than one appropriation, fund, 
or authority shall be applicable to any appropriation, fund, or 
authority provided in this title of this Act. 
SEC. 105. Appropriations made and authority granted pursuant Coverage. 
to this title of this Act shall cover all obligations or expenditures 
incurred for any program, project, or activity during the period 
for which fimds or authority for such project or activity are available 
under this Act. 
SEC. 106. Unless otherwise provided for in this title of this 
Act or in the applicable appropriations Act, appropriations and 
funds made available and authority granted pursuant to this title 
of this Act shall be available until (a) enactment into law of an 
appropriation for any project or activity provided for in this title 
of this Act, or (b) the enactment into law of the applicable appropria-
tions Act without any provision for such project or activity, or 
(c) March 15, 1996, whichever first occurs. 
SEC. 107. This title of this Act shall be implemented so that 
only the most limited funding action of that permitted in this 
title of this Act shall be tEiken in order to provide for continuation 
of projects and activities. 
SEC. 108. Expenditures made pursuant to this title of this 
Act shall be charged to the applicable appropriation, fimd, or 
authorization whenever a bill in which such applicable appropria-
tion, fund, or authorization is contained is enacted into law. 
Termination 
date. 
110 STAT. 28 
PUBLIC LAW 104-99-^AN. 26, 1996 
Furloughs. 
SEC. 109. No provision in the appropriations Act for the fiscal 
year 1996 referred to in section 101 of this Act that makes the 
availabiUty of any appropriation provided therein dependent upon 
the enactment of additional authorizing or other legislation shall 
be effective before the date set forth in section 106(c) of this Act. 
SEC. 110. Appropriations and funds made available by or 
authority granted pursuant to this title of this Act may be used 
without regard to the time limitations for submission and approval 
of apportionments set forth in section 1513 of title 31, United 
States Code, but nothing herein shall be construed to waive any 
other provision of law governing the apportionment of funds. 
SEC. 111. Notwithstanding any other provision of this title 
of this Act, except section 106, whenever an Act listed in section 
101 as passed by both the House and the Senate as of the date 
of enactment of this Act, does not include funding for an ongoing 
project or activity for which there is a budget request, or whenever 
an Act listed in section 101 has been passed by only the House 
or only the Senate as of the date of enactment of this Act, and 
an item funded in fiscal year 1995 is not included in the version 
passed by the one House, or whenever the rate for operations 
for an ongoing project or activity provided by section 101 for which 
there is a budget request would result in the project or activity 
being significantly reduced, the pertinent project or activity may 
be continued under the authority and conditions provided in the 
applicable appropriations Act for the fiscal year 1995 by increasing 
the rate for operations provided by section 101 to a rate for oper-
ations not to exceed one that provides the minimal level that 
would enable existing activities to continue. No new contracts or 
grants shall be awarded in excess of an amount that bears the 
same ratio to the rate for operations provided by this section as 
the number of days covered by this title of this Act bears to 
366. For the purposes of this title of this Act, the minimal level 
means a rate for operations that is reduced from the current rate 
by 25 percent. 
SEC. 112. Notwithstanding any other provision of this title 
of this Act, except section 106, whenever the rate for operations 
for any continuing project or activity provided by section 101 or 
section 111 for which there is a budget request would result in 
a furlough of Government employees, that rate for operations may 
be increased to the minimum level that would enable the furlough 
to be avoided. No new contracts or grants shall be awarded in 
excess of an amount that bears the same ratio to the rate for 
operations provided by this section as the number of days covered 
by this Act bears to 366: Provided, That the first sentence of 
section 112 shall not apply except to furloughs that exceed one 
workday per pay period for the affected workforce during the period 
of January 26,1996 through March 15,1996. 
SEC. 113. Notwithstanding any other provision of this title 
of this Act, except sections 106 and 111, for those programs that 
had high initial rates of operation or complete distribution of fund-
ing at the beginning of the fiscal year in fiscal year 1995 because 
of distributions of funding to States, foreign countries, grantees, 
or others, similar distributions of funds for fiscal year 1996 shall 
not be made and no grants shall be awarded for such programs 
funded by this title of this Act that would impinge on final funding 
prerogatives. 
PUBLIC LAW 104-99-nJAN. 26, 1996 
110 STAT. 29 
SEC. 114. Notwithstanding any other provision of this title 
of this Act, except section 106, any distribution of funding under 
the Rehabilitation Services and Disability Research account in the 
Department of Education may be made up to an amount that 
bears the same ratio to the rate for operation for this account 
provided by this title of this Act as the number of days covered 
by this title of this Act bears to 366, 
SEC. 115. Notwithstanding any other provision of this Act, 
except section 106, the rate for operations of the following projects 
or activities shall be only the minimum necessary to accomplish 
orderly termination: 
Child Development Associate Scholarships in the Depart-
ment of Health and Human Services; 
Dependent Care Planning and Development in the Depart-
ment of Health and Human Services; 
Law Related Education in the Department of Education; 
Dropout Prevention Demonstrations in the Department of 
Education; 
Aid for Institutional Development—Endowment Grants in 
the Department of Education; 
Aid for Institutional Development—Evaluation in the 
Department of Education; 
Native Hawaiian and Alaska Native Cultural Arts; 
Innovative Projects in Community Service in the Depart-
ment of Education; 
Cooperative Education in the Department of Education; 
and 
Douglas Teacher Scholarships in the Department of Edu-
cation. 
SEC. 116. 
COMPENSATION AND RATIFICATION OF AUTHORITY.— 
(a) Any Federal employees furloughed as a result of a lapse in Furloughs. 
appropriations, if any, after midnight November 13, 1995, until 
the enactment of this Act shall be compensated at their standard 
rate of compensation for the period during which there was a 
lapse in appropriations. 
(b) All obligations incurred in anticipation of the appropriations 
made and the authority granted by this title of this Act for the 
f
)urposes of maintaining the essential level of activity to protect 
ife and property and bring about orderly termination of Govern-
ment functions are hereby ratified and approved if otherwise in 
accord with the provisions of this title of this Act. 
SEC. 117. Notwithstanding any other provision of this title 
of this Act, except section 106, upon enactment of this Act any 
new grants or contracts for the following programs shall be made 
at a level not to exceed a rate of 75 per centum of prior monthly 
awards: 
Department of Health and Human Services: 
Health Resources and Services Administration: 
Health Resources and Services: 
Trauma Care 
Health Care Facilities 
Assistant Secretary for Health: 
Office of the Assistant Secretary for 
Health: 
National Vaccine Program 
Health Care Reform Data Analysis 
National AIDS Program Office 
110 STAT. 30 
PUBLIC LAW 104-99-^AN. 26, 1996 
Health Care Financing Administration: 
Program Management: 
Essential Access Community 
Hospitals 
Administration for Children and Families: 
Children and Families Services Program: 
Youth Gang Substance Abuse 
Advisory Board on Child Abuse and 
Neglect 
Child Welfare Research 
Social Services Resesirch 
Homeless Service Grants 
Community Schools (crime trust fiind) 
Administration on Ag^g: 
Aging Services Programs: 
Pension Counseling 
Federal Council on Aging 
White House Conference on Aging 
Department of Education: 
Education for the Disadvantaged: 
State School Improvement 
School Improvement Programs: 
Safe and Drug Free Schools and 
Communities: National Program 
Women's Educational E(juity 
Bilingual and Immigrant Education: 
Bilingual Education Support Services 
Higher Education: 
Faculty Development Fellowships 
School, College, and University 
Partnerships 
Related Agencies: 
Corporation for National and Community 
Service: 
Domestic Volunteer Service Programs, 
Operating Expenses: 
Senior Demonstration Program 
National Education Stsindards and 
Improvement Council. 
SEC. 118. Notwithstanding any other provision of law or this 
Act, upon enactment of this Act the Secretary of each cabinet 
level department other than State, Defense, Ambassador to the 
United Nations, and Central Intelligence shall not obligate a total 
amount of funds for their individuEil official travel expenses for 
fiscal year 1996 that would be greater than 110 per centum of 
the average total amount of the individual official travel expenses 
of the relevant departmental secretary for the fiscal years 1990 
through 1995. 
Financial aid. 
SEC. 119. Notwithstanding any other provision of law or of 
20 use 1070a 
this title of this Act, the maximum Pell Grant for which a student 
^°^- 
shall be eligible imder the Higher Education Act of 1965, as 
amended, during award year 1996-1997 shall be at least $2,440. 
Effective date. 
SEC. 120. Notwithstanding any other provision of law, the 
40 use 175 note, first proviso under the heading "Education for the disadvantaged" 
in title III of H.R. 2127, as passed by the House of Representatives, 
shall take effect upon enactment of this Act. 
SEC. 121. 501 FIRST STREET SE., DISTRICT OF COLUMBIA. 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 31 
(a) DISPOSAL OF REAL PROPERTY.— 
(1) IN GENERAL.—The Architect of the Capitol shall dispose 
of by sale at fair market value all right, title, and interest 
of the United States in and to the parcel of real property 
described in paragraph (9), including all improvements to such 
real property. Such disposal shall be made by quitclaim deed. 
(2) HOUSE OFFICE BUILDING COMMISSION.—The Architect 
of the Capitol shall carry out this section under the direction 
of the House Office Building Commission. 
(3) PROCEDURES,—Notwithstanding any other provision of 
law, the disposal under paragraph (1) shall be made in accord-
ance with such procedures as the Architect of the Capitol 
determines appropriate. 
(4) SENSE OF CONGRESS,—It is the sense of Congress that 
the child care center of the House of Representatives should 
remain in operation during the implementation of this section. 
(5) TERMS AND CONDITIONS.—The deed of conveyance for 
the property to be disposed of under paragraph (1) shall contain 
such terms and conditions as the Architect of the Capitol deter-
mines are necessary to protect the interests of the United 
States. 
(6) DEPOSIT OF PROCEEDS.—^All proceeds from the disposal 
under paragraph (1) shall be deposited in the account estab-
lished by subsection (b). 
(7) ADVERTISING AND MARKETING.—The Architect of the 
Capitol shall begin advertising and marketing the property 
to be disposed of under paragraph (1) not later than 30 days 
after the date of the enactment of this Act. 
(8) LOCAL ZONING AND OCCUPANCY REQUIREMENTS.—Until 
such date as the purchaser of the property to be disposed 
of under paragraph (1) takes full occupancy of such property, 
such property and the tenants of such property shall be deemed 
to be in compliance with all applicable zoning and occupancy 
requirements of the District of Columbia. 
(9) PROPERTY DESCRIPTION.—The parcel of real property 
referred to in paragraph (1) is the approximately 31,725 square 
feet of land located at 501 First Street, SE., on square 736 
S, Lot 801 (formerly part of Reservation 17) in the District 
of Columbia. Such parcel is bounded by E Street, SE., to the 
north. First Street, SE., to the east, New Jersey Avenue, SE., 
to the west, and Garfield Park to the south. 
(b) SEPARATE ACCOUNT IN THE TREASURY.— 
(1) ESTABLISHMENT.—There is estabhshed in the Treasury 
of the United States a separate account which shall consist 
of amounts deposited into the account by the Architect of the 
Capitol under subsection (a). 
(2) AVAILABILITY OF FUNDS.—Fimds in the account estab-
lished by paragraph (1) shall be available, in such amounts 
as are specified in appropriations Acts, to the Architect of 
the Capitol for— 
(A) pajmient of expenses associated with relocating 
the tenants of the property to be disposed of under sub-
section (a)(1); 
(B) payment of expenses associated with renovating 
facilities under the jurisdiction of the Architect for the 
purpose of accommodating such tenants; and 
110 STAT. 32 
PUBLIC LAW 104-99-JAN. 26, 1996 
(C) reimbursement of expenses incurred for advertising 
and marketing activities related to the disposal under sub-
section (a)(1) in a total amount of not to exceed $75,000. 
Funds made available under this paragraph shall not be subject 
to any fiscal year limitation. 
(3) REPORTING OF TRANSACTIONS.—Receipts, obligations, 
and expenditures of funds in the account established by para-
graph (1) shall be reported in annual estimates submitted 
to Congress by the Architect of the Capitol for the operation 
and maintenance of the Capitol Buildings and Grounds. 
(4) TERMINATION OF ACCOUNT.—Not later than 2 years 
after the date of settlement on the property to be disposed 
of under subsection (a)(1), the Architect of the Capitol shall 
terminate the account established by paragraph (1) and all 
amounts remaining in the account shall be deposited into the 
general fund of the Treasury of the United States and credited 
as miscellaneous receipts. 
(c) AUTHORITY TO FURNISH STEAM AND CHILLED WATER.— 
(1) IN GENERAL.—The Architect of the Capitol is authorized 
to furnish steam and chilled water fi'om the Capitol Power 
Plant to the owner of the property to be disposed of under 
subsection (a)(1) if the owner agrees to pay for such steam 
and chilled water at market rates, as determined by the 
Architect of the Capitol. 
(2) 
AUTHORITY LIMITED TO EXISTING FACILITIES.—The 
Architect of the Capitol may furnish steam and chilled water 
under paragraph (1) only with respect to facilities which, on 
the date of the enactment of this Act, are located on the 
property to be disposed of under subsection (a)(1). 
(3) PROCEEDS.—All proceeds fi*om the sale of steam and 
chilled water under paragraph (1) shall be deposited into the 
general fund of the Treasury of the United States and credited 
as miscellaneous receipts. 
SEC. 122. Notwithstanding any other provision of this title 
of this Act except section 106, such sums as necessary are hereby 
appropriated for aU projects and activities funded under the account 
heading "Office for Civil Rights" under the Office of the Secretary 
in the Department of Health and Human Services at a rate for 
operations not to exceed an annual rate for new obligational author-
ity of $16,153,000 for general funds together with not to exceed 
an annual rate for new obligational authority of $3,314,000 to 
be transferred and expended as authorized by section 201(gXl) 
of the Social Security Act from the Hospital Insurance Trust F\ind 
and the Supplemental Medical Insurance Trust Fund. 
SEC. 123. Activities necessary to effect the following program 
eliminations and transfers of selected functions are funded imder 
the terms and conditions and at a rate of operations, notwithstand-
ing any other provision of this title of this Act, provided for in 
the conference report and joint explanatory statement of the 
Committee of Conference (House Report 104-402) on the Depart-
ment of the Interior and Related Agencies Appropriations Act, 
1996 (H.R. 1977), as passed by the House of Representatives on 
December 13,1995: 
All projects and activities iinder the account heading "Pub-
lic Development" imder the Pennsylvania Avenue Development 
Corporation; 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 33 
All projects and activities under the account heading 
"Mines and Minerals" under the Bureau of Mines in the Depart-
ment of the Interior; 
All activities related to the transfer of functions from the 
Bureau of Mines under the account heading "Management of 
Lands and Resources" under the Bureau of Land Management 
in the Department of the Interior; 
All activities related to the transfers of functions from 
the Bureau of Mines and from the National Biological Service 
under the account heading "Surveys, Investigations, and 
Research" under the United States Geological Survey in the 
Department of the Interior; and 
All activities related to the transfer of functions from the 
Bureau of Mines under the account heading "Fossil Energy 
Research and Development" in the Department of Energy. 
SEC. 124. Notwithstanding any other provision of this title 
of this Act, the appropriations and fimds made available and author-
ity granted pursuant to the preceding section shall be available 
until (a) enactment into law of an appropriation for any project 
or activity provided for in that section, or (b) the enactment into 
law of the applicable appropriations Act without any provision 
for such project or activity, or (c) September 30, 1996, whichever 
first occurs. 
SEC. 125. Notwithstanding any other provision of this title 
of this Act, except section 106, such amounts as may be necessary 
are hereby appropriated to effect the sale of Weeks Island oil 
from the Strategic Petroleum Reserve under the terms and condi-
tions and at a rate of operations provided for in the conference 
report and joint explanatory statement of the Committee of Con-
ference (House Report 104-402) on the Department of the Interior 
and Related Agencies Appropriations Act, 1996 (H.R. 1977), as 
passed by the House of Representatives on December 13, 1995. 
SEC. 126. Notwithstanding any other provision of this title 
of this Act, such amounts as may be necessary are hereby appro-
priated under the authority and conditions provided in the 
applicable appropriations Act for the fiscal year 1995 for continuing, 
at a rate for operations provided for in the conference report and 
joint explanatory statement of the Committee of Conference (House 
Report 104-402) on the Department of the Interior and Related 
Agencies Appropriations Act, 1996 (H.R. 1977), as passed by the 
House of Representatives on December 13, 1995, for the following 
projects or activities including the costs of direct loeuis and loan 
guarantees (not otherwise specifically provided for in this Act) which 
are conducted in the fiscal year 1995: all projects or activities 
of the Indian Health Services, Indian Health Service Facilities, 
Bureau of Indian Affairs, National Park Service, notwithstanding 
any other provision of law, the United States Fish and Wildlife 
Service, notwithstanding any other provision of law, and the Forest 
Service, notwithstanding any other provision of law: Provided, That 
appropriations and funds made available and authority granted 
pursuant to this section shall be available until (a) enactment 
into law of an appropriation for any project or activity provided 
for in this section, or (b) the enactment into law of the applicable 
appropriations Act without any provision for such project or activity, 
or (c) March 15, 1996, whichever first occurs. 
SEC. 127. Notwithstanding any other provision of this title 
of this Act except section 106, projects and activities under the 
Termination 
date. 
Termination 
date. 
110 STAT. 34 
PUBLIC LAW 1 0 4 - 9 9 - J A N . 26, 1996 
Embryos. 
2 use 1611. 
2 use 1611 note. 
Regulations. 
Effective date. 
16 use 620c 
note. 
Floods. 
account heading "Salaries and expenses" under the National Labor 
Relations Board shall be subject to the provisions of section 112 
of Public law 104-56. 
SEC. 128. None of the funds made available by Public Law 
104-91 may be used for— 
(1) the creation of a human embryo or embryos for research 
purposes; or 
(2) research in which a human embryo or embryos Eire 
destroyed, discarded, or knowingly subjected to risk of injury 
or death greater than that allowed for research on fetuses 
in utero under 45 CFR 46.208(a)(2) and 42 U.S.C. 289g(b). 
For purposes of this section, the phrase **human embryo or embryos" 
shall include any organism, not protected as a human subject under 
45 CFR 46 as of the date of enactment of this Act, that is derived 
by fertilization, parthenogenesis, cloning, or any other means from 
one or more human gametes. 
SEC. 129.TECHNICAL AMENDMENT TO PROHIBITION OF GRANTS 
FOR 501(c)(4) ORGANIZATIONS ENGAGING IN LOBBYING ACTIVITIES. 
(a) IN GENERAL.—Section 18 of the Lobbying Disclosure Act 
of 1995 is amended by striking "award, grant, contract, loan, or 
any other form" and inserting "award, grant, or loan". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall take effect as if included in the Lobbying Disclosure Act 
of 1995 on the date of the enactment of such Act. 
SEC. 130. No funds appropriated under this or any other Act 
shall be used to review or modify sourcing areas previously approved 
under section 490(c)(3) of the Forest Resources Conservation and 
Shortage Rehef Act of 1990 (Public Law 101-382) or to enforce 
or implement Federal regulations 36 CFR part 223 promulgated 
on September 8, 1995. The regulations and interim rules in effect 
prior to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36 
CFR 223 Subpart D, 36 CFR 223 Subpart F, and 36 CFR 261.6) 
shall remain in effect. The Secretary of Agriculture or the Secretary 
of the Interior shall not adopt any policies concerning Public Law 
101-382 or existing regulations that would restrain domestic 
transportation or processing of timber from private lands or impose 
additional accountability requirements on any timber. The Secretary 
of Commerce shall extend until September 30, 1996, the order 
issued under section 491(b)(2)(A) of PubUc Law 101-382 and shall 
issue an order imder section 491(b)(2)(B) of such law that will 
be effective October 1,1996. 
SEC. 131. Notwithstanding any other provision of this Act, 
an additional $2,000,000 is hereby appropriated for the National 
Park Service, Park Service Construction for repair of flood damage 
to the Chesapeake and Ohio Canal National Historical Park. 
TITLE II 
DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE 
JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS 
SEC. 201. (a) Such amounts as may be necessary under the 
authority and conditions provided in the applicable appropriations 
Act for the fiscal year 1995 for projects or activities, except for 
those projects and activities provided for in Public Law 104-91 
and Public Law 104-92, including the costs of direct loans and 
loan guarantees (not otherwise specifically provided for in this 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 35 
Act) at a rate for operations provided for in the conference report 
and joint explanatory statement of the Committee of Conference, 
House Report 104-378, on the Departments of Commerce, Justice, 
£md State, the Judiciary, and Related Agencies Appropriations Act, 
1996 (H.R. 2076), as passed the House of Representatives on Decem-
ber 6, 1995, notwithstanding section 15 of the State Department 
Basic Authorities Act of 1956, section 701 of the United States 
Information and Educational Exchange Act of 1948, section 313 
of the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995 (Public Law 103-236), and section 53 of the Arms Control 
and Disarmament Act: Provided, That, notwithstanding any other 
provision of this title of this Act, the rate for operations only 
for program administration and the continuation of grants awarded 
in fiscal year 1995 and prior years of the Advanced Technology 
Program of the National Institute of Standards and Technology^, 
and the rate for operations for the Ounce of Prevention Council, 
Drug Courts, Global Learning and Observations to Benefit the 
Environment, and for the Cops on the Beat Program may be 
increased up to a level of 75 per centum of the final fiscal year 
1995 appropriated amount: Provided further, That, under the pre-
vious proviso, no contracts or grants shall be awarded in excess 
of an amount that bears the same ratio to the rate for operations 
provided by the previous proviso as the number of days covered 
by this Act bears to 366: Provided further. That any costs incurred 
by a Department or agency funded imder this subsection resulting 
from personnel actions taken in response to fimding reductions 
resulting fi*om this Act shall be absorbed within the total budgetary 
resources available to such Department or agency: Provided further, 
That the authority to transfer funds between appropriations 
accounts as may be necessary to carry out the preceding proviso 
is provided in addition to authorities provided elsewhere in this 
subsection: Provided further. That funds to carry out the preceding 
two provisos shall not be available for obligation or expenditure 
except in compliance with established reprogramming procedures: 
Provided further. That, notwithstanding any other provision of this 
title of this Act, the amount of funds obligated or expended by 
the Legal Services Corporation shall not exceed an amount that 
bears the same ratio to the rate for operations available to the 
Legal Services Corporation as the number of days covered by this 
Act bears to 366: Provided further, That, notwithstanding any other 
provision of this title of this Act, funding provided for Violent 
Offender Incarceration and Truth in Sentencing Incentive Grants, 
with the exception of funds available to States for incarceration 
of criminal aliens and the Cooperative Agreement Program, shall 
be withheld, pending enactment of revisions to subtitle A of title 
II of the Violent Crime Control and Law Enforcement Act of 1994, 
so as not to impinge upon final funding prerogatives: Provided 
further. That, notwithstanding any other provision of this title 
of this Act, sufficient fiinds shall be provided to continue the Office 
of Inspector General of the United States Information Agency, to 
be derived fi-om fiinds otherwise available to the Office of Inspector 
General of the Department of State. 
110 STAT. 36 
PUBLIC LAW 104-99-JAN. 26, 1996 
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND 
URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES 
APPROPRIATIONS 
(b) Such amounts as may be necessary under the authority 
and conditions provided in the apphcable appropriations Act for 
the fiscal year 1995 for continuing projects or activities, except 
for those projects and activities provided for in PubUc Law 104-
91 and Public Law 104-92, including the costs of direct loans 
and loan guarantees (not otherwise specifically provided for in 
this Act) at a rate for operations provided for in the conference 
report and joint explanatory statement of the Committee of Con-
ference, House Report 104-384, on the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (H.R. 2099), as passed the House 
of Representatives on December 7, 1995: Provided, That Senate 
amendment 63 shall be disposed of in the manner passed by the 
House on December 7, 1995, as if enacted into law: Provided further, 
That, notwithstanding any other provision of this title of this Act, 
the rate for operations for the Corporation for National and Commu-
nity Service, the Community Development Financial Institutions 
Fimd, and the Office of Consumer Affairs may be increased up 
to a level of 75 per centum of the fiscal year 1995 level: Provided 
further. That, under the previous proviso, no new contracts or 
grants shall be awarded in excess of an amount that bears the 
same ratio to the rate for operations provided by the previous 
proviso as the number of days covered by this Act bears to 366: 
38 use 1920, 
Provided further. That the penultimate proviso under the heading 
1923,1955,1982. "General Operating Expenses" and sections 107 and 109 under 
the heading "Administrative Provisions" in the Department of Vet-
erans Affairs are effective to the extent and in the msinner, notwith-
standing any other provision of this Act, provided for in the con-
ference report and joint explanatory statement of the Committee 
of Conference (House Report 104-384) on the Departments of Veter-
ans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the 
House of Representatives on December 7,1995. 
Termination 
SEC. 202. Unless otherwise provided for in this title of this 
date. 
Act or in the applicable appropriations Act, appropriations and 
funds made available and authority granted pursuant to this title 
of this Act shall be available until (a) the enactment into law 
of an appropriation for any project or activity provided for in this 
title of this Act, or (b) the enactment into law of the applicable 
appropriations Act by both Houses without any provision for such 
project or activity, or (c) March 15, 1996, whichever first occurs. 
Coverage. 
SEC. 203. Appropriations made and authority granted pursuant 
to this title of this Act shall cover all obligations or expenditures 
incurred for any program, project, or activity during the period 
for which funds or authority for such project or activity are available 
under this title of this Act. 
SEC. 204. Expenditures made pursuant to this title of this 
Act shall be charged to the applicable appropriation, fiind, or 
authorization whenever a bill in which such applicable appropria-
tion, fiind, or authorization is contained is enacted into law. 
SEC. 205. Appropriations made by section 201 shall be available 
to the extent and in the manner which would be provided by 
the pertinent appropriations Act. 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 37 
SEC. 206. No provision in the appropriations Act for the fiscal 
year 1996 referred to in section 201 of this Act that makes the 
availabihty of any appropriation provided therein dependent upon 
the enactment of additional authorizing or other legislation shall 
be effective before the date set forth in section 202(c) of this Act. 
SEC. 207, Appropriations and funds made available by or 
authority granted pursuant to this title of this Act may be used 
without regard to the time limitations for submission and approval 
of apportionments set forth in section 1513 of title 31, United 
States Code, but nothing herein shall be construed to waive any 
other provision of law governing the apportionment of funds. 
SEC. 208, Public Law 104-92 is amended by repealing title 
II and by inserting in section 101(a) after the paragraph ending Ante, p. 18. 
with "under the Railroad Retirement Board;" the following para- Ante, p. 17. 
graphs: "All activities, including administrative and beneficiary 
travel expenses of all veterans benefit programs, necessEiry for 
the provision of veterans benefits funded in the Department of 
Veterans Affairs imder the headings 'Compensation and pensions', 
'Readjustment benefits', 'Veterans insurance and indemnities', 
'Guaranty and indemnity program account', 'Loan guaranty program 
account', 'Direct loan program accoimt', 'Education loan fund pro-
gram account', 'Vocational rehabilitation loans program account', 
'Native American veteran housing loan program account', and 
'Administrative provisions, sec. 107' to the extent and in the manner 
and at the rate for operations, notwithstanding any other provision 
of this joint resolution, provided for in the conference report and 
joint explanatory statement of the Committee of Conference (House 
Report 104-384) on the Departments of Veterans Affairs and Hous-
ing and Urbgui Development, and Independent Agencies Appropria-
tions Act, 1996 (H.R. 2099), as passed by the House of Representa-
tives on December 7, 1995; 
"All payments to contractors of the Veterans Health Adminis-
tration of the Department of Veterans Affairs for goods and services 
that directly relate to patient health and safety to the extent 
and in the manner and at the rate for operations, notwithstanding 
any other provision of this joint resolution, provided for in the 
conference report and joint explanatory statement of the Committee 
of Conference (House Report 104-384) on the Departments of Veter-
ans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (H.R, 2099), as passed by the 
House of Representatives on December 7,1995;". 
SEC, 209. Notwithstanding any other provision of this title 
15 USC 77f 
note. 
of this Act, except section 202, the amount made available to 
the Securities and Exchange Commission, under the heading Sala-
ries and Expenses, shall include, in addition to direct appropria-
tions, the amount it collects imder the fee rate and offsetting 
collection authority contained in Public Law 103-352, which fee 
rate and offsetting collection authority shall remain in effect during 
the period of this title of this Act. 
SEC. 210, Notwithstanding any other provision of this title 
of this Act, except section 202, funds for the Environmental Protec-
tion Agency shall be made available in the appropriation accounts 
which are provided in H,R, 2099 as reported on September 13, 
1995. 
SEC. 211, Public Law 104-91 is amended by inserting after 
the words "the protection of the Federal judiciary^' in section 101(a), 18 USC 4043 
the following: "to the extent and in the manner and", and by note; 22 USC 
^ 
' 
-^ 
1644 note; 28 
USC 524, 524 
note, 533 note, 
534 note 589a, 
1930; 31 USC 
1344; 42 USC 
1973gg-2, 
1973gg-2 note. 
110 STAT. 38 
PUBLIC LAW 104-99-^AN. 26, 1996 
Real property. 
Mississippi. 
Furloughs. 
inserting at the end of the paragraph containing those words, 
but before the semicolon, the following: ": Provided, That, with 
the exception of section 114, the General Provisions for the Depart-
ment of Justice included in title I of the aforementioned conference 
report are hereby enacted into law". 
SEC. 212. Notwithstanding any other provision of law or regula-
tion, the National Aeronautics and Space Administration shall con-
vey, without reimbursement, to the State of Mississippi, all rights, 
title and interest of the United States in the property known 
as the Yellow Creek Facility and consisting of approximately 1,200 
acres near the city of luka, Mississippi, including all improvements 
thereon and also including any personal property owned by NASA 
that is currently located on-site £ind which the State of Mississippi 
requires to facilitate the transfer: Provided, That appropriated funds 
shall be used to effect this conveyance: Provided farther. 
That 
$10,000,000 in appropriated funds otherwise available to the 
National Aeronautics and Space Administration shall be transferred 
to the State of Mississippi to be used in the transition of the 
facility: Provided further, That each Federal agency with prior 
contact to the site shall remain responsible for any and all environ-
mentad remediation made necessary as a result of its activities 
on the site: Provided further. That in consideration of this convey-
ance, the National Aeronautics and Space Administration may 
require such other terms and conditions as the Administrator deems 
appropriate to protect the interests of the United States: Provided 
further. That the conveysince of the site and the transfer of the 
funds to the State of Mississippi shall occur not later than thirty 
days from the date of enactment of this Act. 
SEC. 213. Notwithstanding any other provision of this title 
of this Act except section 202, projects and activities under the 
account heading "Council on Environmental Quality and Office 
of Environmental Quality" shall be subject to the provisions of 
section 112 of PubUc Law 104-56. 
SEC. 214. Notwithstanding any other provision of this title 
of this Act except section 202, whenever the rate for operations 
for any continuing project or activity provided by section 201 for 
which there is a budget request would result in a furlough of 
Government employees, that rate for operations may be increased 
to the minimum level that would enable the furlough to be avoided. 
No new contracts or grants shall be awarded in excess of an amount 
that bears the same ratio to the rate for operations provided by 
this section as the number of days covered by this Act bears to 
366: Provided, That the first sentence of section 214 shsdl not 
apply except to furloughs that exceed one workday per pay period 
for the affected workforce during the period of January 26, 1996 
through March 15,1996. 
TITLE III 
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED 
PROGRAMS APPROPRIATIONS 
SEC. 301. Such amounts as may be necessary for programs, 
projects, or activities provided for in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1996 (H.R. 
1868), at a rate for operations and to the extent and in the manner 
provided for in the conference report and joint explanatory state-
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 39 
ment of the Committee of Conference (House Report 104-295) as 
passed by the House of Representatives on October 31, 1995, as 
if enacted into law, notwithstanding any other provision of this 
title of this Act: Provided, That Senate amendment numbered 115 
shall be disposed of as follows, as if enacted into law: 
In lieu of the matter proposed by the Senate in amendment 
numbered 115, insert the following: 
AUTHORIZATION OF POPULATION PLANNING 
"SEC. 518A. Notwithstanding section 526 of this Act, none 
of the funds made available in this Act for population planning 
activities or other population assistance pursuant to section 104(b) 
of the Foreign Assistance Act or any other provision of law, or 
funds made available in title IV of this Act as a contribution 
to the United Nations Population Fimd (UNFPA) may be obligated 
or expended prior to July 1, 1996, unless such funding is expressly 
authorized by law: Provided, That if such funds are not authorized 
by law prior to July 1, 1996, funds appropriated in title II of 
this Act for population planning activities or other population assist-
ance may be made available for obligation and expenditure in 
an amount not to exceed 65 percent of the total amount appropriated 
or otherwise made available by Public Law 103-306 and Public 
Law 104-19 for such activities for fiscal year 1995, and funds 
appropriated in title IV of this Act as a contribution to the United 
Nations Population Fund (UNFPA) may be made available for 
obUgation and expenditure in an amount not to exceed 65 percent 
of the total amount appropriated or otherwise made available by 
Public Law 103-306 and Public Law 104-19 for a contribution 
to UNFPA for fiscal year 1995: Provided further. That, pursuant 
to the previous proviso, such fiinds may be apportioned only on 
a monthly basis, beginning July 1, 1996 and ending September 
30, 1997, and such monthly apportionments may not exceed 6.67 
percent of the total available for such activities: Provided 
further, 
That notwithstanding any other provision of this Act, funds appro-
priated by this Act for the United Nations Population Fund 
(UNFPA) shall remain available for obligation until September 
30, 1997.". 
SEC. 302, Unless otherwise provided for in this title of this 
Act or in the applicable appropriations Act, appropriations and 
fiinds made available and authority granted pursuant to this title 
of this Act shall be available until (a) the enactment into law 
of an appropriation for any project or activity provided for in this 
title of this Act, or (b) the enactment into law of the applicable 
appropriations Act by both Houses without any provision for such 
project or activity, or (c) September 30, 1996, whichever first occurs. 
SEC. 303. Appropriations made and authority granted pursuant Coverage, 
to this title of this Act shall cover all obligations or expenditures 
incurred for any program, project, or activity during the period 
for which funds or authority for such project or activity are available 
under this title of this Act. 
SEC. 304. Expenditures made pursuant to this title of this 
Act shall be charged to the applicable appropriation, fund, or 
authorization whenever a bill in which such applicable appropria-
tion, fimd, or authorization is contained is enacted into law. 
Termination 
date. 
Termination 
date. 
110 STAT. 40 
PUBLIC LAW 104-99-JAN. 26, 1996 
TITLE IV 
HOUSING AND URBAN DEVELOPMENT 
SEC. 401. During fiscal year 1996, the Secretary of Housing 
and Urbsin Development may manage and dispose of multifamily 
properties owned by the Secretary, including the provision for 
grants from the General Insurance Fund (12 U.S.C. 1735c) for 
the necessary costs of rehabilitation and other related development 
costs and multifamily mortgages held by the Secretary without 
regard to any other provision of law. 
Effective date. 
42 use 1437a. 
42 use 1437a 
note. 
PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS, AND 
PREFERENCES 
SEC. 402. (a) MINIMUM RENTS.—Notwithstanding sections 3(a) 
and 8(o)(2) of the United States Housing Act of 1937, as amended, 
effective for fiscal year 1996 and no later than October 30, 1995— 
(1) public housing agencies shall require each family who 
is assisted under the certificate or moderate rehabilitation pro-
gram under section 8 of such Act to pay a minimum monthly 
rent of not less than $25, and may require a minimum monthly 
rentofupto$50; 
(2) public housing agencies shall reduce the monthly assist-
ance payment on behalf of each family who is assisted under 
the voucher program under section 8 of such Act so that the 
family pays a minimum monthly rent of not less than $25, 
and may require a minimum monthly rent of up to $50; 
(3) with respect to housing assisted under other programs 
for rental assistance under section 8 of such Act, the Secretary 
shall require each family who is assisted under such program 
to pay a minimum monthly rent of not less than $25 for 
the unit, and may require a minimum monthly rent of up 
to $50; and 
(4) public housing agencies shall require each family who 
is assisted under the public housing program (including public 
housing for Indian families) of such Act to pay a minimum 
monthly rent of not less than $25, and may require a minimum 
monthly rent of up to $50. 
(b) ESTABLISHMENT OF CEILING RENTS.— 
(1) Section 3(a)(2) of the United States Housing Act of 
1937 is amended to read as follows: 
"(2) Notwithstanding paragraph (1), a public housing 
agency may— 
"(A) adopt ceiling rents that reflect the reasonable 
market value of the housing, but that are not less than 
the monthly costs— 
"(i) to operate the housing of the agency; and 
"(ii) to make a deposit to a replacement reserve 
(in the sole discretion of the public housing agency); 
and 
"(B) allow families to pay ceiling rents referred to 
in subparagraph (A), unless, with respect to any family, 
the ceiling rent established under this paragraph would 
exceed the amount payable as rent by that family under 
paragraph (1).". 
(2) REGULATIONS.— 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 41 
(A) IN GENERAL.—The Secretary shall, by regulation, 
after notice and an opportunity for public comment, estab-
lish such requirements as may be necessary to carry out 
section 3(a)(2)(A) of the United States Housing Act of 1937, 
as amended by paragraph (1). 
(B) TRANSITION RULE.—Prior to the issuance of final 
regulations under paragraph (1), a public housing agency 
may implement ceiling rents, which shall be not less than 
the monthly costs to operate the housing of the agency 
and— 
(i) determined in accordance with section 3(a)(2)(A) 
of the United States Housing Act of 1937, as that 
section existed on the day before enactment of this 
Act; 
(ii) equal to the 96th percentile of the rent paid 
for a unit of comparable size by tenants in the same 
public housing project or a group of comparable projects 
totaling 50 units or more; or 
(iii) equal to the fair market rent for the area 
in which the unit is located. 
(c) DEFINITION OF ADJUSTED INCOME.—Section 3(b)(5) of the 
United States Housing Act of 1937 is amended— 
42 USC 1437a. 
(1) at the end of subparagraph (F), by striking "and"; 
(2) at the end of subparagraph (G), by striking the period 
and inserting "; and"; and 
(3) by inserting after subparagraph (G) the following: 
"(H) for public housing, any other adjustments to 
earned income established by the public housing agency. 
If a public housing agency adopts other adjustments to 
income pursuant to subparagraph (H), the Secretary shall 
not take into account any reduction of or increase in the 
public housing agenc3^s per unit dwelling rental income 
resulting from those adjustments when calculating the con-
tributions under section 9 for the public housing agency 
for the operation of the public housing.". 
(d) REPEAL OF FEDERAL PREFERENCES.— 
(1) PUBLIC HOUSING.—Section 6(c)(4)(A) of the United 
States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is 
amended to read as follows: 
"(A) the establishment, after public notice and an 
opportunity for public comment, of a written system of 
preferences for admission to public housing, if any, that 
is not inconsistent with the comprehensive housing affbrd-
ability strategy under title I of the Cranston-Gonzalez 
National Affordable Housing Act;". 
(2) SECTION 8 EXISTING AND MODERATE REHABILITATION.— 
Section 8(d)(1)(A) of the United States Housing Act of 1937 
(42 U.S.C. 1437frd)(l)(A)) is amended to read as follows: 
"(A) the selection of tenants shall be the function of 
the owner, subject to the provisions of the annual contribu-
tions contract between the Secretary and the agency, except 
that for the certificate and moderate rehabilitation pro-
grams only, for the purpose of selecting families to be 
assisted, the public housing agency may establish, after 
public notice and an opportunity for public comment, a 
written system of preferences tor selection that is not 
inconsistent with the comprehensive housing affordability 
29-194 O - 96 - 3 ; QL 3 Part 1 
110 STAT. 42 
PUBLIC LAW 104-99—JAN. 26, 1996 
42 use 1437d. 
42 use 1437e. 
42 use 1437f. 
42 use 1437n. 
strategy under title I of the Cranston-Gonzalez National 
Affordable Housing Act;". 
(3) SECTION 8 VOUCHER PROGRAM.—Section 8(o)(3)(B) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) 
is amended to read as follows: 
"(B) For the purpose of selecting families to be assisted 
under this subsection, the public housing agency may estab-
lish, after public notice EOid £in opportunity for public com-
ment, a written system of preferences for selection that 
is not inconsistent with the comprehensive housing afford-
ability strate^ under title I of the Cranston-Gonzalez 
National Affordable Housing Act.". 
(4) 
SECTION 8 NEW 
CONSTRUCTION 
AND 
SUBSTANTIAL 
REHABILITATION.— 
(A) REPEAL.—Section 545(c) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 1437f note) 
is amended to read as follows: 
"(c) [Reserved.]". 
(B) PROHIBITION.—Notwithstanding any other provi-
sion of law, no Federal tenant selection preferences under 
the United States Housing Act of 1937 shall apply with 
respect to— 
(i) housing constructed or substantially rehabili-
tated pursuant to assistance provided under section 
8(b)(2) of the United States Housing Act of 1937 (as 
such section existed on the day before October 1, 1983); 
or 
(ii) projects financed under section 202 of the Hous-
ing Act of 1959 (as such section existed on the day 
before the date of enactment of the Cranston-Gonzalez 
National Affordable Housing Act). 
(5) RENT SUPPLEMENTS.—Section lOl(k) of the Housing 
and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is 
amended to read as follows: 
"(k) [Reserved.]". 
(6) CONFORMING AMENDMENTS.— 
(A) UNITED STATES HOUSING ACT OF 1937.—The United 
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is 
amended— 
(i) in section 6(0), by striking "preference rules 
specified in" and inserting "written system of pref-
erences for selection established pursuant to"; 
(ii) in the second sentence of section 7(a)(2), by 
striking "according to the preferences for occupancy 
under" and inserting "in accordance with the written 
system of preferences for selection established pursu-
ant to"; 
(iii) in section 8(d)(2)(A), by striking the last sen-
tence* 
(iv) in section 8(d)(2)(H), by striking "Notwith-
standing subsection (d)(l)(A)(i), an" and inserting "An"; 
(v) in section 16(c), in the second sentence, by 
striking "the system of preferences established by the 
agency pursuant to section 6(c)(4)(A)(ii)" and inserting 
"the written system of preferences for selection estab-
lished by the public housing agency pursuant to section 
6(c)(4)(A)"; and 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 43 
(vi) in section 24(e)— 
(I) by striking "(e) EXCEPTIONS" and all that 
follows through "The Secretary may" and inserting 
the following: 
"(e) EXCEPTION TO GENERAL PROGRAM REQUIREMENTS.—The 
Secretary may"; and 
(II) by striking paragraph (2). 
(B) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUS-
ING ACT.—Section 522(f)(6)(B) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12704 et seq.) 
is amended by striking "any preferences for such assistance 
under section 8(d)(l)(A)(i)" and inserting "the written sys-
tem of preferences for selection established pursuant to 
section 8(d)(1)(A)". 
(C) HOUSING AND COMMUNITY DEVELOPMENT ACT OF 
1992.—Section 655 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 13615) is amended by striking 
"the preferences" and all that follows up to the period 
at the end and inserting "any preferences". 
(D) REFERENCES IN OTHER LAW.—^Any reference in any 
Federal law other than any provision of any law amended 
by paragraphs (1) through (5) of this subsection to the 
preferences for assistance 
under 
section 
6(c)(4)(A)(i), 
8(d)(l)(A)(i), or 8(o)(3)(B) of the United States Housing 
Act of 1937 (as such sections existed on the day before 
the date of enactment of this Act) shall be considered 
to refer to the written system of preferences for selection 
established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 
8(o)(3)(B), respectively, of the United States Housing Act 
of 1937, as amended by this section. 
(e) APPLICABILITY.—In accordance with section 201(b)(2) of the 
United States Housing Act of 1937, the amendments made by 
subsections (a), (b), (c), (d), and (f) of this section shall also apply 
to public housing developed or operated pursuant to a contract 
between the Secretary of Housing and Urban Development and 
an Indian housing authority. 
(f) This section shall be effective upon the enactment of this 
Act and only for fiscal year 1996. 
42 u s e 1437v. 
42 u s e 1437f 
note. 
42 u s e 1437d 
note. 
42 u s e 1437aa 
note. 
Effective date. 
42 u s e 1437a 
note. 
SECTION 8 FAIR MARKET RENTALS, ADMINISTRATIVE FEES, AND DELAY 
IN REISSUANCE 
SEC. 403. (a) FAIR MARICET RENTALS.—The Secretary shall Effective date 
establish fair market rentals for purposes of section 8(c)(1) of the 
United States Housing Act of 1937, as amended, that shall be 
effective for fiscal year 1996 and shall be based on the 40th percent-
ile rent of rental distributions of standard quality rental housing 
units. In establishing such fair market rentals, the Secretary shall 
consider only the rents for dwelling units occupied by recent movers 
and may not consider the rents for public housing dwelling units 
or newly constructed rental dwelling units. 
(b) ADMINISTRATIVE FEES.—Notwithstanding sections 8(q) (1) 
and (4) of the United States Housing Act of 1937, for fiscal year 
1996, the fee for each month for which a dwelling unit is covered 
by an assistance contract under the certificate, voucher, or moderate 
rehabilitation program under section 8 of such Act shall be equal 
to the monthly fee payable for fiscal year 1995: Provided, That Applicability. 
42 u s e 1437f 
note. 
110 STAT. 44 
PUBLIC LAW 104-99-^AN. 26, 1996 
this subsection shall be applicable to all amounts made available 
for such fees during fiscal year 1996, as if in effect on October 
1,1995. 
(c) DELAY REISSUANCE OF VOUCHERS AND CERTIFICATES.—Not-
withstanding any other provision of law, a public housing agency 
administering ceri;ificate or voucher assistance provided under sub-
section (b) or (o) of section 8 of the United States Housing Act 
of 1937, as amended, shall delay for 3 months, the use of any 
amounts of such assistance (or the certificate or voucher represent-
ing assistance amounts) made available by the termination during 
fiscal year 1996 of such assistance on behalf of any family for 
any reason, but not later than October 1, 1996; with the exception 
of any certificates assigned or committed to project-based assistance 
as permitted otherwise by the Act, accomplished prior to the effec-
tive date of this Act. 
42 use 12714. 
Effective date. 
42 use 12714 
note. 
Effective date. 
42 use 1437f 
note. 
42 use 1437f 
note. 
42 use 1437f. 
REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS 
SEC. 
404. 
(a) 
MAXIMUM 
ANNUAL 
LIMITATION 
ON 
RENT 
INCREASES RESULTING FROM EMPLOYMENT.—Section 957 of 
the 
Cranston-Gonzalez National Affordable Housing Act is hereby 
repealed, retroactive to November 28, 1990, and shall be of no 
effect. 
(b) ECONOMIC INDEPENDENCE.—Section 923 of the Housing and 
Community Development Act of 1992 is hereby repealed, retroactive 
to October 28,1992, and shall be of no effect. 
SECTION 8 CONTRACT RENEWALS 
SEC. 405. (a) For fiscal year 1996 and henceforth, the Secretary 
of Housing and Urban Development may use amounts available 
for the renewal of assistance under section 8 of the United States 
Housing Act of 1937, upon termination or expiration of a contract 
for assistance under section 8 of such Act of 1937 (other than 
a contract for tenant-based assistance and notwithstanding section 
8(v) of such Act for loan management assistance), to provide assist-
ance under section 8 of such Act, subject to the Section 8 Existing 
Fair Market Rents, for the eligible families assisted under the 
contracts at expiration or termination, which assistance shall be 
in accordance with terms and conditions prescribed by the Sec-
retary. 
(b) Notwithstanding subsection (a) and except for projects 
assisted under section 8(e)(2) of the United States Housmg Act 
of 1937 (as it existed immediately prior to October 1, 1991), at 
the request of the owner, the Secretary shall renew for a period 
of one year contracts for assistance under section 8 that expire 
or terminate during fiscal year 1996 at the current rent levels. 
(c) Section 8(v) of the United States Housing Act of 1937 is 
amended to read as follows: "The Secretary may extend expiring 
contracts entered into under this section for project-based loan 
management assistance to the extent necessary to prevent displace-
ment of low-income families receiving such assistance as of Septem-
ber 30,1996.". 
(d) Section 236(f) of the National Housing Act (12 U.S.C. 1715z-
1(f)) is amended: 
(1) by striking the second sentence in paragraph (1) and 
inserting in lieu thereof the following: "The rental charge for 
each dwelling unit shall be at the basic rental charge or such 
PUBLIC LAW 1 0 4 - 9 9 - J A N . 26, 1996 
110 STAT. 45 
greater amount, not exceeding the lower of (i) the fair market 
rental charge determined pursuant to this paragraph, or (ii) 
the fair market rental established under section 8(c) of the 
United States Housing Act of 1937 for the market area in 
which the housing is located, as represents 30 per centum 
of the tengint's adjusted income."; and 
(2) by striking paragraph (6). 
EXTENSION OF HOME EQUITY CONVERSION MORTGAGE PROGRAM 
SEC. 406. Section 255(g) of the National Housing Act (12 U.S.C. 
1715z-20(g)) is amended— 
(1) in the first sentence, by striking "September 30, 1995" 
and inserting "September 30,1996"; and 
(2) in the second sentence, by striking "25,000" and insert-
ing "30,000". 
FHA SINGLE-FAMILY ASSIGNMENT PROGRAM REFORM 
SEC. 407. (a) FORECLOSURE AVOIDANCE.—Except as provided 
in subsection (e), the last sentence of section 204(a) of the National 
Housing Act (12 U.S.C. 1710(a)) is amended by inserting before 
the period the following: ": And provided further, That the Secretary 
may pay insurance benefits to the mortgagee to recompense the 
mortgagee for its actions to provide an alternative to the foreclosure 
of a mortgage that is in default, which actions may include special 
foreclosure, loan modification, and deeds in lieu of foreclosure, all 
upon terms and conditions as the mortgagee shall determine in 
the mortgagee's sole discretion, within guidelines provided by the 
Secretary, but which may not include assignment of a mortgage 
to the Secretary: And provided further, That for purposes of the 
preceding proviso, no action authorized by the Secretary and no 
action taken, nor any failure to act, by the Secretary or the mortga-
gee shall be subject to judicial review.". 
(b) AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT.—Except 
as provided in subsection (e), section 230 of the National Housing 
Act (12 U.S.C. 1715u) is amended to read as follows: 
"AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT 
"SEC. 230. (a) PAYMENT OF PARTIAL CLAIM.—The Secretary 
may establish a program for payment of a partial claim to a mortga-
gee that agrees to apply the claim amount to payment of a mortgage 
on a 1- to 4-family residence that is in default. Any such pa3anent 
imder such program to the mortgagee shall be made in the sole 
discretion of the Secretary and on terms and conditions acceptable 
to the Secretary, except that— 
"(1) the amount of the payment shall be in an amount 
determined by the Secretary, not to exceed an amoimt equiva-
lent to 12 of the monthly mortgage payments and any costs 
related to the default that are approved by the Secretary; 
and 
"(2) the mortgagor shall agree to repay the amount of 
the insurance claim to the Secretary upon terms and conditions 
acceptable to the Secretary. 
The Secretap^ may pay the mortgagee, fi'om the appropriate insur-
ance fund, in connection with any activities that the mortgagee 
110 STAT. 46 
PUBLIC LAW 104-99—JAN. 26, 1996 
is required to undertake concerning repayment by the mortgagor 
of the amount owed to the Secretary. 
"(b) ASSIGNMENT.— 
"(1) PROGRAM AUTHORITY.—The Secretary may estabUsh 
a program for assignment to the Secretary, upon request of 
the mortgagee, of a mortgage on a 1- to 4-family residence 
insured under this Act. 
"(2) PROGRAM REQUIREMENTS.—The Secretary may accept 
assignment of a mortgage under a program under this sub-
section only if— 
"(A) the mortgage was in default; 
"(B) the mortgagee has modified the mortgage to cure 
the default and provide for mortgage payments within the 
reasonable ability of the mortgagor to pay, at interest rates 
not exceeding current market interest rates; and 
"(C) the Secretary arranges for servicing of the 
assigned mortgage by a mortgagee (which may include 
the assigning mortgagee) through procedures that the Sec-
retary has determined to be in the best interests of the 
appropriate insurance fund. 
"(3) PAYMENT OF INSURANCE BENEFITS.—Upon accepting 
assignment of a mortgage under a program established under 
this subsection, the Secretary may pay insurance benefits to 
the mortgagee from the appropriate insurance fund, in an 
amount that the Secretary determines to be appropriate, not 
to exceed the amount necessary to compensate the mortgagee 
for the assignment and any losses and expenses resulting firom 
the mortgage modification. 
"(c) PROHIBITION OF JUDICIAL REVIEW.—No decision by the Sec-
retary to exercise or forego exercising any authority under this 
section shall be subject to judicial review. 
"(d) SAVINGS PROVISION.—^Any mortgage for which the mortga-
gor has applied to the Secretary, before the date of enactment 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996, 
for assignment pursuant to subsection (b) of this section as in 
effect before such date of enactment shall continue to be governed 
by the provisions of this section, as in effect immediately before 
such date of enactment. 
"(e) APPLICABILITY OF OTHER LAWS.—No provision of this Act, 
or any other law, shall be construed to require the Secretary to 
provide an alternative to foreclosure for mortgagees with mortgages 
on 1- to 4-family residences insured by the Secretary under this 
Act, or to accept assignments of such mortgages.". 
12 use 1710 
(c) APPLICABILITY OF AMENDMENTS.—Except as provided in sub-
"lote. 
section (e), the amendments made by subsections (a) and (b) shall 
apply only with respect to mortgages insured under the National 
Housing Act that are originated before October 1,1995. 
12 use 1710 
(d) REGULATIONS.—Not later than 60 days after the date of 
note- 
enactment of this Act, the Secretary of Housing and Urban Develop-
ment shall issue interim regulations to implement this section 
and the amendments made by this section. 
(e) EFFECTIVENESS AND APPLICABILITY.—If this Act is enacted 
after the date of enactment of the Bsdanced Budget Act of 1995— 
(1) subsections (a), (b), (c), and (d) of this section shall 
not take effect; and 
PUBLIC LAW 104-99-^AN. 26, 1996 
110 STAT. 47 
(2) section 2052(c) of the Balanced Budget Act of 1995 
is amended by striking "that are originated on or after October 
1, 1995" and inserting in Heu thereof "that are originated 
before, during, and after fiscal year 1996.". 
This Act may be cited as "The Balanced Budget Dovmpayment 
Act, I". 
Approved January 26, 1996. 
LEGISLATIVE HISTORY—H.R. 2880: 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
Jan. 25, considered and passed House. 
Jan. 26, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Jan. 26, Presidential statement.