American Recovery and Reinvestment Act of 2009
PL 111-5 (H.R.1), enacted 02/17/2009

123 STAT. 115 
PUBLIC LAW 111–5—FEB. 17, 2009 
Public Law 111–5 
111th Congress 
An Act 
Making supplemental appropriations for job preservation and creation, infrastructure 
investment, energy efficiency and science, assistance to the unemployed, and 
State and local fiscal stabilization, for the fiscal year ending September 30, 
2009, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Recovery and Reinvest-
ment Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
DIVISION A—APPROPRIATIONS PROVISIONS 
TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMIN-
ISTRATION, AND RELATED AGENCIES 
TITLE II—COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES 
TITLE III—DEPARTMENT OF DEFENSE 
TITLE IV—ENERGY AND WATER DEVELOPMENT 
TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT 
TITLE VI—DEPARTMENT OF HOMELAND SECURITY 
TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES 
TITLE VIII—DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, 
AND EDUCATION, AND RELATED AGENCIES 
TITLE IX—LEGISLATIVE BRANCH 
TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RE-
LATED AGENCIES 
TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS 
TITLE XII—TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND 
RELATED AGENCIES 
TITLE XIII—HEALTH INFORMATION TECHNOLOGY 
TITLE XIV—STATE FISCAL STABILIZATION FUND 
TITLE XV—ACCOUNTABILITY AND TRANSPARENCY 
TITLE XVI—GENERAL PROVISIONS—THIS ACT 
DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND 
OTHER PROVISIONS 
TITLE I—TAX PROVISIONS 
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING 
FAMILIES 
TITLE III—PREMIUM ASSISTANCE FOR COBRA BENEFITS 
TITLE IV—MEDICARE AND MEDICAID HEALTH INFORMATION TECH-
NOLOGY; MISCELLANEOUS MEDICARE PROVISIONS 
TITLE V—STATE FISCAL RELIEF 
TITLE VI—BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM 
TITLE VII—LIMITS ON EXECUTIVE COMPENSATION 
SEC. 3. PURPOSES AND PRINCIPLES. 
(a) STATEMENT OF PURPOSES.—The purposes of this Act include 
the following: 
26 USC 1 note. 
26 USC 1 note. 
American 
Recovery and 
Reinvestment 
Act of 2009. 
Feb. 17, 2009 
[H.R. 1] 
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123 STAT. 116 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) To preserve and create jobs and promote economic 
recovery. 
(2) To assist those most impacted by the recession. 
(3) To provide investments needed to increase economic 
efficiency by spurring technological advances in science and 
health. 
(4) To invest in transportation, environmental protection, 
and other infrastructure that will provide long-term economic 
benefits. 
(5) To stabilize State and local government budgets, in 
order to minimize and avoid reductions in essential services 
and counterproductive state and local tax increases. 
(b) GENERAL PRINCIPLES CONCERNING USE
OF FUNDS.—The 
President and the heads of Federal departments and agencies shall 
manage and expend the funds made available in this Act so as 
to achieve the purposes specified in subsection (a), including com-
mencing expenditures and activities as quickly as possible con-
sistent with prudent management. 
SEC. 4. REFERENCES. 
Except as expressly provided otherwise, any reference to ‘‘this 
Act’’ contained in any division of this Act shall be treated as 
referring only to the provisions of that division. 
SEC. 5. EMERGENCY DESIGNATIONS. 
(a) IN GENERAL.—Each amount in this Act is designated as 
an emergency requirement and necessary to meet emergency needs 
pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) 
and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the 
concurrent resolutions on the budget for fiscal years 2008 and 
2009. 
(b) PAY-AS-YOU-GO.—All applicable provisions in this Act are 
designated as an emergency for purposes of pay-as-you-go principles. 
DIVISION A—APPROPRIATIONS 
PROVISIONS 
That the following sums are appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2009, and for other purposes, namely: 
TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND 
DRUG ADMINISTRATION, AND RELATED AGENCIES 
DEPARTMENT OF AGRICULTURE 
AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS 
For an additional amount for ‘‘Agriculture Buildings and Facili-
ties and Rental Payments’’, $24,000,000, for necessary construction, 
repair, and improvement activities. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$22,500,000, to remain available until September 30, 2013, for 
1 USC 1 note. 
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123 STAT. 117 
PUBLIC LAW 111–5—FEB. 17, 2009 
oversight and audit of programs, grants, and activities funded by 
this Act and administered by the Department of Agriculture. 
AGRICULTURAL RESEARCH SERVICE 
BUILDINGS AND FACILITIES 
For an additional amount for ‘‘Buildings and Facilities’’, 
$176,000,000, for work on deferred maintenance at Agricultural 
Research Service facilities: Provided, That priority in the use of 
such funds shall be given to critical deferred maintenance, to 
projects that can be completed, and to activities that can commence 
promptly following enactment of this Act. 
FARM SERVICE AGENCY 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Farm Service Agency, Salaries 
and Expenses,’’ $50,000,000, for the purpose of maintaining and 
modernizing the information technology system. 
NATURAL RESOURCES CONSERVATION SERVICE 
WATERSHED AND FLOOD PREVENTION OPERATIONS 
For an additional amount for ‘‘Watershed and Flood Prevention 
Operations’’, $290,000,000, of which $145,000,000 is for necessary 
expenses to purchase and restore floodplain easements as author-
ized by section 403 of the Agricultural Credit Act of 1978 (16 
U.S.C. 2203) (except that no more than $30,000,000 of the amount 
provided for the purchase of floodplain easements may be obligated 
for projects in any one State): Provided, That such funds shall 
be allocated to projects that can be fully funded and completed 
with the funds appropriated in this Act, and to activities that 
can commence promptly following enactment of this Act. 
WATERSHED REHABILITATION PROGRAM 
For an additional amount for ‘‘Watershed Rehabilitation Pro-
gram’’, $50,000,000: Provided, That such funds shall be allocated 
to projects that can be fully funded and completed with the funds 
appropriated in this Act, and to activities that can commence 
promptly following enactment of this Act. 
RURAL HOUSING SERVICE 
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT 
For an additional amount for gross obligations for the principal 
amount of direct and guaranteed loans as authorized by title V 
of the Housing Act of 1949, to be available from funds in the 
rural housing insurance fund, as follows: $1,000,000,000 for section 
502 direct loans; and $10,472,000,000 for section 502 unsubsidized 
guaranteed loans. 
For an additional amount for the cost of direct and guaranteed 
loans, including the cost of modifying loans, as defined in section 
502 of the Congressional Budget Act of 1974, as follows: $67,000,000 
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123 STAT. 118 
PUBLIC LAW 111–5—FEB. 17, 2009 
for section 502 direct loans; and $133,000,000 for section 502 unsub-
sidized guaranteed loans. 
RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT 
For an additional amount for the cost of direct loans and 
grants for rural community facilities programs as authorized by 
section 306 and described in section 381E(d)(1) of the Consolidated 
Farm and Rural Development Act, $130,000,000. 
RURAL BUSINESS—COOPERATIVE SERVICE 
RURAL BUSINESS PROGRAM ACCOUNT 
For an additional amount for the cost of guaranteed loans 
and grants as authorized by sections 310B(a)(2)(A) and 310B(c) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932), $150,000,000. 
RURAL UTILITIES SERVICE 
RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT 
For an additional amount for the cost of direct loans and 
grants for the rural water, waste water, and waste disposal pro-
grams authorized by sections 306 and 310B and described in section 
381E(d)(2) of the Consolidated Farm and Rural Development Act, 
$1,380,000,000. 
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM 
For an additional amount for the cost of broadband loans and 
loan guarantees, as authorized by the Rural Electrification Act 
of 1936 (7 U.S.C. 901 et seq.) and for grants (including for technical 
assistance), $2,500,000,000: Provided, That the cost of direct and 
guaranteed loans shall be as defined in section 502 of the Congres-
sional Budget Act of 1974: Provided further, That, notwithstanding 
title VI of the Rural Electrification Act of 1936, this amount is 
available for grants, loans and loan guarantees for broadband infra-
structure in any area of the United States: Provided further, That 
at least 75 percent of the area to be served by a project receiving 
funds from such grants, loans or loan guarantees shall be in a 
rural area without sufficient access to high speed broadband service 
to facilitate rural economic development, as determined by the 
Secretary of Agriculture: Provided further, That priority for 
awarding such funds shall be given to project applications for 
broadband systems that will deliver end users a choice of more 
than one service provider: Provided further, That priority for 
awarding funds made available under this paragraph shall be given 
to projects that provide service to the highest proportion of rural 
residents that do not have access to broadband service: Provided 
further, That priority shall be given for project applications from 
borrowers or former borrowers under title II of the Rural Electrifica-
tion Act of 1936 and for project applications that include such 
borrowers or former borrowers: Provided further, That priority for 
awarding such funds shall be given to project applications that 
demonstrate that, if the application is approved, all project elements 
will be fully funded: Provided further, That priority for awarding 
Grants. 
Loans. 
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123 STAT. 119 
PUBLIC LAW 111–5—FEB. 17, 2009 
such funds shall be given to project applications for activities that 
can be completed if the requested funds are provided: Provided 
further, That priority for awarding such funds shall be given to 
activities that can commence promptly following approval: Provided 
further, That no area of a project funded with amounts made 
available under this paragraph may receive funding to provide 
broadband service under the Broadband Technology Opportunities 
Program: Provided further, That the Secretary shall submit a report 
on planned spending and actual obligations describing the use 
of these funds not later than 90 days after the date of enactment 
of this Act, and quarterly thereafter until all funds are obligated, 
to the Committees on Appropriations of the House of Representa-
tives and the Senate. 
FOOD AND NUTRITION SERVICE CHILD NUTRITION 
PROGRAMS 
For an additional amount for the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, 
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), 
except sections 17 and 21, $100,000,000, to carry out a grant pro-
gram for National School Lunch Program equipment assistance: 
Provided, That such funds shall be provided to States administering 
a school lunch program in a manner proportional with each States’ 
administrative expense allocation: Provided further, That the States 
shall provide competitive grants to school food authorities based 
upon the need for equipment assistance in participating schools 
with priority given to school in which not less than 50 percent 
of the students are eligible for free or reduced price meals under 
the Richard B. Russell National School Lunch Act. 
SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
AND CHILDREN (WIC) 
For an additional amount for the special supplemental nutrition 
program as authorized by section 17 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall 
be placed in reserve to be allocated as the Secretary deems nec-
essary, notwithstanding section 17(i) of such Act, to support partici-
pation should cost or participation exceed budget estimates, and 
of which $100,000,000 shall be for the purposes specified in section 
17(h)(10)(B)(ii): Provided, That up to one percent of the funding 
provided for the purposes specified in section 17(h)(10)(B)(ii) may 
be reserved by the Secretary for Federal administrative activities 
in support of those purposes. 
COMMODITY ASSISTANCE PROGRAM 
For an additional amount for the emergency food assistance 
program as authorized by section 27(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2036(a)) and section 204(a)(1) of the Emer-
gency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)), 
$150,000,000: Provided, That of the funds made available, the Sec-
retary may use up to $50,000,000 for costs associated with the 
distribution of commodities, of which up to $25,000,000 shall be 
made available in fiscal year 2009. 
Grants. 
Reports. 
Deadlines. 
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123 STAT. 120 
PUBLIC LAW 111–5—FEB. 17, 2009 
GENERAL PROVISIONS—THIS TITLE 
SEC. 101. TEMPORARY INCREASE
IN BENEFITS UNDER
THE 
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM. (a) MAXIMUM 
BENEFIT INCREASE.— 
(1) IN GENERAL.—Beginning the first month that begins 
not less than 25 days after the date of enactment of this 
Act, the value of benefits determined under section 8(a) of 
the Food and Nutrition Act of 2008 and consolidated block 
grants for Puerto Rico and American Samoa determined under 
section 19(a) of such Act shall be calculated using 113.6 percent 
of the June 2008 value of the thrifty food plan as specified 
under section 3(o) of such Act. 
(2) TERMINATION.— 
(A) The authority provided by this subsection shall 
terminate after September 30, 2009. 
(B) Notwithstanding subparagraph (A), the Secretary 
of Agriculture may not reduce the value of the maximum 
allotments, minimum allotments or consolidated block 
grants for Puerto Rico and American Samoa below the 
level in effect for fiscal year 2009 as a result of paragraph 
(1). 
(b) REQUIREMENTS FOR THE SECRETARY.—In carrying out this 
section, the Secretary shall— 
(1) consider the benefit increases described in subsection 
(a) to be a ‘‘mass change’’; 
(2) require a simple process for States to notify households 
of the increase in benefits; 
(3) consider section 16(c)(3)(A) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors 
in the implementation of this section, without regard to the 
120-day limit described in that section; 
(4) disregard the additional amount of benefits that a 
household receives as a result of this section in determining 
the amount of overissuances under section 13 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2022); and 
(5) set the tolerance level for excluding small errors for 
the purposes of section 16(c) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2025(c)) at $50 through September 30, 2009. 
(c) ADMINISTRATIVE EXPENSES.— 
(1) IN
GENERAL.—For the costs of State administrative 
expenses associated with carrying out this section and admin-
istering the supplemental nutrition assistance program estab-
lished under the Food and Nutrition Act of 2008 (7 U.S.C. 
2011 et seq.), the Secretary shall make available $145,000,000 
in fiscal year 2009 and $150,000,000 in fiscal year 2010, of 
which $4,500,000 is for necessary expenses of the Food and 
Nutrition Service for management and oversight of the program 
and for monitoring the integrity and evaluating the effects 
of the payments made under this section. 
(2) TIMING FOR FISCAL YEAR 2009.—Not later than 60 days 
after the date of enactment of this Act, the Secretary shall 
make available to States amounts for fiscal year 2009 under 
paragraph (1). 
(3) ALLOCATION OF FUNDS.—Except as provided for manage-
ment and oversight, funds described in paragraph (1) shall 
Grants. 
Deadline. 
Effective date. 
Puerto Rico. 
American Samoa. 
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123 STAT. 121 
PUBLIC LAW 111–5—FEB. 17, 2009 
be made available as grants to State agencies for each fiscal 
year as follows: 
(A) 75 percent of the amounts available for each fiscal 
year shall be allocated to States based on the share of 
each State of households that participate in the supple-
mental nutrition assistance program as reported to the 
Department of Agriculture for the most recent 12-month 
period for which data are available, adjusted by the Sec-
retary (as of the date of enactment) for participation in 
disaster programs under section 5(h) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2014(h)); and 
(B) 25 percent of the amounts available for each fiscal 
year shall be allocated to States based on the increase 
in the number of households that participate in the supple-
mental nutrition assistance program as reported to the 
Department of Agriculture over the most recent 12-month 
period for which data are available, adjusted by the Sec-
retary (as of the date of enactment) for participation in 
disaster programs under section 5(h) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2014(h)). 
(d) FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.— 
For the costs relating to facility improvements and equipment 
upgrades associated with the Food Distribution Program on Indian 
Reservations, as established under section 4(b) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(b)), the Secretary shall make 
available $5,000,000: Provided, That administrative cost-sharing 
requirements are not applicable to funds provided in accordance 
with this provision. 
(e) TREATMENT OF JOBLESS WORKERS.— 
(1) REMAINDER OF FISCAL YEAR 2009 THROUGH FISCAL YEAR 
2010.—Beginning with the first month that begins not less than 
25 days after the date of enactment of this Act and for each 
subsequent month through September 30, 2010, eligibility for 
supplemental nutrition assistance program benefits shall not 
be limited under section 6(o)(2) of the Food and Nutrition 
Act of 2008 unless an individual does not comply with the 
requirements of a program offered by the State agency that 
meets the standards of subparagraphs (B) or (C) of that para-
graph. 
(2) FISCAL
YEAR
2011
AND
THEREAFTER.—Beginning on 
October 1, 2010, for the purposes of section 6(o) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency 
shall disregard any period during which an individual received 
benefits under the supplemental nutrition assistance program 
prior to October 1, 2010. 
(f) FUNDING.—There are appropriated to the Secretary out of 
funds of the Treasury not otherwise appropriated such sums as 
are necessary to carry out this section. 
SEC. 102. AGRICULTURAL DISASTER ASSISTANCE TRANSITION. (a) 
FEDERAL CROP INSURANCE ACT. Section 531(g) of the Federal Crop 
Insurance Act (7 U.S.C. 1531(g)) is amended by adding at the 
end the following: 
‘‘(7) 2008 TRANSITION ASSISTANCE.— 
‘‘(A) IN
GENERAL.—Eligible producers on a farm 
described in subparagraph (A) of paragraph (4) that failed 
to timely pay the appropriate fee described in that subpara-
graph shall be eligible for assistance under this section 
Effective dates. 
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123 STAT. 122 
PUBLIC LAW 111–5—FEB. 17, 2009 
in accordance with subparagraph (B) if the eligible pro-
ducers on the farm— 
‘‘(i) pay the appropriate fee described in paragraph 
(4)(A) not later than 90 days after the date of enact-
ment of this paragraph; and 
‘‘(ii)(I) in the case of each insurable commodity 
of the eligible producers on the farm, excluding grazing 
land, agree to obtain a policy or plan of insurance 
under subtitle A (excluding a crop insurance pilot pro-
gram under that subtitle) for the next insurance year 
for which crop insurance is available to the eligible 
producers on the farm at a level of coverage equal 
to 70 percent or more of the recorded or appraised 
average yield indemnified at 100 percent of the 
expected market price, or an equivalent coverage; and 
‘‘(II) in the case of each noninsurable commodity 
of the eligible producers on the farm, agree to file 
the required paperwork, and pay the administrative 
fee by the applicable State filing deadline, for the non-
insured crop assistance program for the next year for 
which a policy is available. 
‘‘(B) AMOUNT OF ASSISTANCE.—Eligible producers on 
a farm that meet the requirements of subparagraph (A) 
shall be eligible to receive assistance under this section 
as if the eligible producers on the farm— 
‘‘(i) in the case of each insurable commodity of 
the eligible producers on the farm, had obtained a 
policy or plan of insurance for the 2008 crop year 
at a level of coverage not to exceed 70 percent or 
more of the recorded or appraised average yield indem-
nified at 100 percent of the expected market price, 
or an equivalent coverage; and 
‘‘(ii) in the case of each noninsurable commodity 
of the eligible producers on the farm, had filed the 
required paperwork, and paid the administrative fee 
by the applicable State filing deadline, for the non-
insured crop assistance program for the 2008 crop year, 
except that in determining the level of coverage, the 
Secretary shall use 70 percent of the applicable yield. 
‘‘(C) EQUITABLE
RELIEF.—Except as provided in 
subparagraph (D), eligible producers on a farm that met 
the requirements of paragraph (1) before the deadline 
described in paragraph (4)(A) and are eligible to receive, 
a disaster assistance payment under this section for a 
production loss during the 2008 crop year shall be eligible 
to receive an amount equal to the greater of— 
‘‘(i) the amount that would have been calculated 
under subparagraph (B) if the eligible producers on 
the farm had paid the appropriate fee under that 
subparagraph; or 
‘‘(ii) the amount that would have been calculated 
under subparagraph (A) of subsection (b)(3) if— 
‘‘(I) in clause (i) of that subparagraph, ‘120 
percent’ is substituted for ‘115 percent’; and 
‘‘(II) in clause (ii) of that subparagraph, ‘125’ 
is substituted for ‘120 percent’. 
Deadline. 
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123 STAT. 123 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(D) LIMITATION.—For amounts made available under 
this paragraph, the Secretary may make such adjustments 
as are necessary to ensure that no producer receives a 
payment under this paragraph for an amount in excess 
of the assistance received by a similarly situated producer 
that had purchased the same or higher level of crop insur-
ance prior to the date of enactment of this paragraph. 
‘‘(E) AUTHORITY
OF
THE
SECRETARY.—The Secretary 
may provide such additional assistance as the Secretary 
considers appropriate to provide equitable treatment for 
eligible producers on a farm that suffered production losses 
in the 2008 crop year that result in multiyear production 
losses, as determined by the Secretary. 
‘‘(F) LACK
OF
ACCESS.—Notwithstanding any other 
provision of this section, the Secretary may provide assist-
ance under this section to eligible producers on a farm 
that— 
‘‘(i) suffered a production loss due to a natural 
cause during the 2008 crop year; and 
‘‘(ii) as determined by the Secretary— 
‘‘(I)(aa) except as provided in item (bb), lack 
access to a policy or plan of insurance under sub-
title A; or 
‘‘(bb) do not qualify for a written agreement 
because 1 or more farming practices, which the 
Secretary has determined are good farming prac-
tices, of the eligible producers on the farm differ 
significantly from the farming practices used by 
producers of the same crop in other regions of 
the United States; and 
‘‘(II) are not eligible for the noninsured crop 
disaster assistance program established by section 
196 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333).’’. 
(b) TRADE ACT OF 1974.—Section 901(g) of the Trade Act of 
1974 (19 U.S.C. 2497(g)) is amended by adding at the end the 
following: 
‘‘(7) 2008 TRANSITION ASSISTANCE.— 
‘‘(A) IN
GENERAL.—Eligible producers on a farm 
described in subparagraph (A) of paragraph (4) that failed 
to timely pay the appropriate fee described in that subpara-
graph shall be eligible for assistance under this section 
in accordance with subparagraph (B) if the eligible pro-
ducers on the farm— 
‘‘(i) pay the appropriate fee described in paragraph 
(4)(A) not later than 90 days after the date of enact-
ment of this paragraph; and 
‘‘(ii)(I) in the case of each insurable commodity 
of the eligible producers on the farm, excluding grazing 
land, agree to obtain a policy or plan of insurance 
under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) (excluding a crop insurance pilot program 
under that Act) for the next insurance year for which 
crop insurance is available to the eligible producers 
on the farm at a level of coverage equal to 70 percent 
or more of the recorded or appraised average yield 
Deadline. 
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123 STAT. 124 
PUBLIC LAW 111–5—FEB. 17, 2009 
indemnified at 100 percent of the expected market 
price, or an equivalent coverage; and 
‘‘(II) in the case of each noninsurable commodity 
of the eligible producers on the farm, agree to file 
the required paperwork, and pay the administrative 
fee by the applicable State filing deadline, for the non-
insured crop assistance program for the next year for 
which a policy is available. 
‘‘(B) AMOUNT OF ASSISTANCE.—Eligible producers on 
a farm that meet the requirements of subparagraph (A) 
shall be eligible to receive assistance under this section 
as if the eligible producers on the farm— 
‘‘(i) in the case of each insurable commodity of 
the eligible producers on the farm, had obtained a 
policy or plan of insurance for the 2008 crop year 
at a level of coverage not to exceed 70 percent or 
more of the recorded or appraised average yield indem-
nified at 100 percent of the expected market price, 
or an equivalent coverage; and 
‘‘(ii) in the case of each noninsurable commodity 
of the eligible producers on the farm, had filed the 
required paperwork, and paid the administrative fee 
by the applicable State filing deadline, for the non-
insured crop assistance program for the 2008 crop year, 
except that in determining the level of coverage, the 
Secretary shall use 70 percent of the applicable yield. 
‘‘(C) EQUITABLE
RELIEF.—Except as provided in 
subparagraph (D), eligible producers on a farm that met 
the requirements of paragraph (1) before the deadline 
described in paragraph (4)(A) and are eligible to receive, 
a disaster assistance payment under this section for a 
production loss during the 2008 crop year shall be eligible 
to receive an amount equal to the greater of— 
‘‘(i) the amount that would have been calculated 
under subparagraph (B) if the eligible producers on 
the farm had paid the appropriate fee under that 
subparagraph; or 
‘‘(ii) the amount that would have been calculated 
under subparagraph (A) of subsection (b)(3) if— 
‘‘(I) in clause (i) of that subparagraph, ‘120 
percent’ is substituted for ‘115 percent’; and 
‘‘(II) in clause (ii) of that subparagraph, ‘125’ 
is substituted for ‘120 percent’. 
‘‘(D) LIMITATION.—For amounts made available under 
this paragraph, the Secretary may make such adjustments 
as are necessary to ensure that no producer receives a 
payment under this paragraph for an amount in excess 
of the assistance received by a similarly situated producer 
that had purchased the same or higher level of crop insur-
ance prior to the date of enactment of this paragraph. 
‘‘(E) AUTHORITY
OF
THE
SECRETARY.—The Secretary 
may provide such additional assistance as the Secretary 
considers appropriate to provide equitable treatment for 
eligible producers on a farm that suffered production losses 
in the 2008 crop year that result in multiyear production 
losses, as determined by the Secretary. 
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123 STAT. 125 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(F) LACK
OF
ACCESS.—Notwithstanding any other 
provision of this section, the Secretary may provide assist-
ance under this section to eligible producers on a farm 
that— 
‘‘(i) suffered a production loss due to a natural 
cause during the 2008 crop year; and 
‘‘(ii) as determined by the Secretary— 
‘‘(I)(aa) except as provided in item (bb), lack 
access to a policy or plan of insurance under sub-
title A; or 
‘‘(bb) do not qualify for a written agreement 
because 1 or more farming practices, which the 
Secretary has determined are good farming prac-
tices, of the eligible producers on the farm differ 
significantly from the farming practices used by 
producers of the same crop in other regions of 
the United States; and 
‘‘(II) are not eligible for the noninsured crop 
disaster assistance program established by section 
196 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333).’’. 
(c) FARM OPERATING LOANS.— 
(1) IN GENERAL.—For the principal amount of direct farm 
operating loans under section 311 of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1941), $173,367,000. 
(2) DIRECT FARM OPERATING LOANS.—For the cost of direct 
farm operating loans, including the cost of modifying loans, 
as defined in section 502 of the Congressional Budget Act 
of 1974 (2 U.S.C. 661a), $20,440,000. 
(d) 2008 AQUACULTURE ASSISTANCE.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE
AQUACULTURE
PRODUCER.—The term 
‘‘eligible aquaculture producer’’ means an aquaculture pro-
ducer that during the 2008 calendar year, as determined 
by the Secretary— 
(i) produced an aquaculture species for which feed 
costs represented a substantial percentage of the input 
costs of the aquaculture operation; and 
(ii) experienced a substantial price increase of feed 
costs above the previous 5-year average. 
(B) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture. 
(2) GRANT PROGRAM.— 
(A) IN
GENERAL.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use not more than 
$50,000,000, to remain available until September 30, 2010, 
to carry out a program of grants to States to assist eligible 
aquaculture producers for losses associated with high feed 
input costs during the 2008 calendar year. 
(B) NOTIFICATION.—Not later than 60 days after the 
date of enactment of this Act, the Secretary shall notify 
the State department of agriculture (or similar entity) in 
each State of the availability of funds to assist eligible 
aquaculture producers, including such terms as determined 
by the Secretary to be necessary for the equitable treatment 
of eligible aquaculture producers. 
(C) PROVISION OF GRANTS.— 
Deadline. 
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123 STAT. 126 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) IN GENERAL.—The Secretary shall make grants 
to States under this subsection on a pro rata basis 
based on the amount of aquaculture feed used in each 
State during the 2007 calendar year, as determined 
by the Secretary. 
(ii) TIMING.—Not later than 120 days after the 
date of enactment of this Act, the Secretary shall make 
grants to States to provide assistance under this sub-
section. 
(D) REQUIREMENTS.—The Secretary shall make grants 
under this subsection only to States that demonstrate to 
the satisfaction of the Secretary that the State will— 
(i) use grant funds to assist eligible aquaculture 
producers; 
(ii) provide assistance to eligible aquaculture pro-
ducers not later than 60 days after the date on which 
the State receives grant funds; and 
(iii) not later than 30 days after the date on which 
the State provides assistance to eligible aquaculture 
producers, submit to the Secretary a report that 
describes— 
(I) the manner in which the State provided 
assistance; 
(II) the amounts of assistance provided per 
species of aquaculture; and 
(III) the process by which the State deter-
mined the levels of assistance to eligible aqua-
culture producers. 
(3) REDUCTION IN PAYMENTS.—An eligible aquaculture pro-
ducer that receives assistance under this subsection shall not 
be eligible to receive any other assistance under the supple-
mental agricultural disaster assistance program established 
under section 531 of the Federal Crop Insurance Act (7 U.S.C. 
1531) and section 901 of the Trade Act of 1974 (19 U.S.C. 
2497) for any losses in 2008 relating to the same species of 
aquaculture. 
(4) REPORT TO CONGRESS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall submit 
to the appropriate committees of Congress a report that— 
(A) describes in detail the manner in which this sub-
section has been carried out; and 
(B) includes the information reported to the Secretary 
under paragraph (2)(D)(iii). 
SEC. 103. For fiscal years 2009 and 2010, in the case of each 
program established or amended by the Food, Conservation, and 
Energy Act of 2008 (Public Law 110–246), other than by title 
I of such Act, that is authorized or required to be carried out 
using funds of the Commodity Credit Corporation— 
(1) such funds shall be available for the purpose of covering 
salaries and related administrative expenses, including tech-
nical assistance, associated with the implementation of the 
program, without regard to the limitation on the total amount 
of allotments and fund transfers contained in section 11 of 
the Commodity Credit Corporation Charter Act (15 U.S.C. 714i); 
and 
(2) the use of such funds for such purpose shall not be 
considered to be a fund transfer or allotment for purposes 
Reports. 
Deadlines. 
Deadline. 
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123 STAT. 127 
PUBLIC LAW 111–5—FEB. 17, 2009 
of applying the limitation on the total amount of allotments 
and fund transfers contained in such section. 
SEC. 104. In addition to other available funds, of the funds 
made available to the Rural Development mission area in this 
title, not more than 3 percent of the funds can be used for adminis-
trative costs to carry out loan, loan guarantee and grant activities 
funded in this title, which shall be transferred to and merged 
with the appropriation for ‘‘Rural Development, Salaries and 
Expenses’’: Provided, That of this amount $1,750,000 shall be com-
mitted to agency projects associated with maintaining the compli-
ance, safety, and soundness of the portfolio of loans guaranteed 
through the section 502 guaranteed loan program. 
SEC. 105. Of the amounts appropriated in this title to the 
‘‘Rural Housing Service, Rural Community Facilities Program 
Account’’, the ‘‘Rural Business-Cooperative Service, Rural Business 
Program Account’’, and the ″Rural Utilities Service, Rural Water 
and Waste Disposal Program Account’’, at least 10 percent shall 
be allocated for assistance in persistent poverty counties: Provided, 
That for the purposes of this section, the term ‘‘persistent poverty 
counties’’ means any county that has had 20 percent or more 
of its population living in poverty over the past 30 years, as meas-
ured by the 1980, 1990, and 2000 decennial censuses. 
TITLE II—COMMERCE, JUSTICE, SCIENCE, AND RELATED 
AGENCIES 
DEPARTMENT OF COMMERCE 
ECONOMIC DEVELOPMENT ADMINISTRATION 
ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS 
For an additional amount for ‘‘Economic Development Assist-
ance Programs’’, $150,000,000: Provided, That $50,000,000 shall 
be for economic adjustment assistance as authorized by section 
209 of the Public Works and Economic Development Act of 1965, 
as amended (42 U.S.C. 3149): Provided further, That in allocating 
the funds provided in the previous proviso, the Secretary of Com-
merce shall give priority consideration to areas of the Nation that 
have experienced sudden and severe economic dislocation and job 
loss due to corporate restructuring: Provided further, That not to 
exceed 2 percent of the funds provided under this heading may 
be transferred to and merged with the appropriation for ‘‘Salaries 
and Expenses’’ for purposes of program administration and over-
sight: Provided further, That up to $50,000,000 of the funds provided 
under this heading may be transferred to federally authorized 
regional economic development commissions. 
BUREAU OF THE CENSUS 
PERIODIC CENSUSES AND PROGRAMS 
For an additional amount for ‘‘Periodic Censuses and Pro-
grams’’, $1,000,000,000. 
Definition. 
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123 STAT. 128 
PUBLIC LAW 111–5—FEB. 17, 2009 
NATIONAL TELECOMMUNICATIONS AND INFORMATION 
ADMINISTRATION 
BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM 
For an amount for ‘‘Broadband Technology Opportunities Pro-
gram’’, $4,700,000,000: Provided, That of the funds provided under 
this heading, not less than $4,350,000,000 shall be expended pursu-
ant to division B of this Act, of which: not less than $200,000,000 
shall be available for competitive grants for expanding public com-
puter center capacity, including at community colleges and public 
libraries; not less than $250,000,000 shall be available for competi-
tive grants for innovative programs to encourage sustainable adop-
tion of broadband service; and $10,000,000 shall be transferred 
to ‘‘Department of Commerce, Office of Inspector General’’ for the 
purposes of audits and oversight of funds provided under this 
heading and such funds shall remain available until expended: 
Provided further, That of the funds provided under this heading, 
up to $350,000,000 may be expended pursuant to Public Law 110– 
385 (47 U.S.C. 1301 note) and for the purposes of developing and 
maintaining a broadband inventory map pursuant to division B 
of this Act: Provided further, That of the funds provided under 
this heading, amounts deemed necessary and appropriate by the 
Secretary of Commerce, in consultation with the Federal Commu-
nications Commission (FCC), may be transferred to the FCC for 
the purposes of developing a national broadband plan or for carrying 
out any other FCC responsibilities pursuant to division B of this 
Act, and only if the Committees on Appropriations of the House 
and the Senate are notified not less than 15 days in advance 
of the transfer of such funds: Provided further, That not more 
than 3 percent of funds provided under this heading may be used 
for administrative costs, and this limitation shall apply to funds 
which may be transferred to the FCC. 
DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM 
For an amount for ‘‘Digital-to-Analog Converter Box Program’’, 
$650,000,000, for additional coupons and related activities under 
the program implemented under section 3005 of the Digital Tele-
vision Transition and Public Safety Act of 2005: Provided, That 
of the amounts provided under this heading, $90,000,000 may be 
for education and outreach, including grants to organizations for 
programs to educate vulnerable populations, including senior citi-
zens, minority communities, people with disabilities, low-income 
individuals, and people living in rural areas, about the transition 
and to provide one-on-one assistance to vulnerable populations, 
including help with converter box installation: Provided further, 
That the amounts provided in the previous proviso may be trans-
ferred to the Federal Communications Commission (FCC) if deemed 
necessary and appropriate by the Secretary of Commerce in con-
sultation with the FCC, and only if the Committees on Appropria-
tions of the House and the Senate are notified not less than 5 
days in advance of transfer of such funds. 
Notification. 
Deadline. 
Applicability. 
Notification. 
Deadline. 
Grants. 
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123 STAT. 129 
PUBLIC LAW 111–5—FEB. 17, 2009 
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES 
For an additional amount for ‘‘Scientific and Technical Research 
and Services’’, $220,000,000. 
CONSTRUCTION OF RESEARCH FACILITIES 
For an additional amount for ‘‘Construction of Research Facili-
ties’’, $360,000,000, of which $180,000,000 shall be for a competitive 
construction grant program for research science buildings. 
NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
OPERATIONS, RESEARCH, AND FACILITIES 
For an additional amount for ‘‘Operations, Research, and Facili-
ties’’, $230,000,000. 
PROCUREMENT, ACQUISITION AND CONSTRUCTION 
For an additional amount for ‘‘Procurement, Acquisition and 
Construction’’, $600,000,000. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$6,000,000, to remain available until September 30, 2013. 
DEPARTMENT OF JUSTICE 
GENERAL ADMINISTRATION 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$2,000,000, to remain available until September 30, 2013. 
STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES 
OFFICE ON VIOLENCE AGAINST WOMEN 
VIOLENCE AGAINST WOMEN PREVENTION AND PROSECUTION 
PROGRAMS 
For an additional amount for ‘‘Violence Against Women Preven-
tion and Prosecution Programs’’, $225,000,000 for grants to combat 
violence against women, as authorized by part T of the Omnibus 
Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg 
et seq.): Provided, That, $50,000,000 shall be for transitional 
housing assistance grants for victims of domestic violence, stalking 
or sexual assault as authorized by section 40299 of the Violent 
Crime Control and Law Enforcement Act of 1994 (Public Law 
103–322). 
Grants. 
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123 STAT. 130 
PUBLIC LAW 111–5—FEB. 17, 2009 
OFFICE OF JUSTICE PROGRAMS 
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $2,000,000,000, for the Edward Byrne Memorial 
Justice Assistance Grant program as authorized by subpart 1 of 
part E of title I of the Omnibus Crime Control and Safe Streets 
Acts of 1968 (‘‘1968 Act’’), (except that section 1001(c), and the 
special rules for Puerto Rico under section 505(g), of the 1968 
Act, shall not apply for purposes of this Act). 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $225,000,000, for competitive grants to improve 
the functioning of the criminal justice system, to assist victims 
of crime (other than compensation), and youth mentoring grants. 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $40,000,000, for competitive grants to provide 
assistance and equipment to local law enforcement along the 
Southern border and in High-Intensity Drug Trafficking Areas to 
combat criminal narcotics activity stemming from the Southern 
border, of which $10,000,000 shall be transferred to ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives, Salaries and Expenses’’ 
for the ATF Project Gunrunner. 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $225,000,000, for assistance to Indian tribes, 
notwithstanding Public Law 108–199, division B, title I, section 
112(a)(1) (118 Stat. 62), which shall be available for grants under 
section 20109 of subtitle A of title II of the Violent Crime Control 
and Law Enforcement Act of 1994 (Public Law 103–322). 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $100,000,000, to be distributed by the Office 
for Victims of Crime in accordance with section 1402(d)(4) of the 
Victims of Crime Act of 1984 (Public Law 98–473). 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $125,000,000, for assistance to law enforcement 
in rural States and rural areas, to prevent and combat crime, 
especially drug-related crime. 
For an additional amount for ‘‘State and Local Law Enforce-
ment Assistance’’, $50,000,000, for Internet Crimes Against Chil-
dren (ICAC) initiatives. 
COMMUNITY ORIENTED POLICING SERVICES 
For an additional amount for ‘‘Community Oriented Policing 
Services’’, for grants under section 1701 of title I of the 1968 
Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3796dd) 
for hiring and rehiring of additional career law enforcement officers 
under part Q of such title, notwithstanding subsection (i) of such 
section, $1,000,000,000. 
SALARIES AND EXPENSES 
For an additional amount, not elsewhere specified in this title, 
for management and administration and oversight of programs 
within the Office on Violence Against Women, the Office of Justice 
Programs, and the Community Oriented Policing Services Office, 
$10,000,000. 
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123 STAT. 131 
PUBLIC LAW 111–5—FEB. 17, 2009 
SCIENCE 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 
SCIENCE 
For an additional amount for ‘‘Science’’, $400,000,000. 
AERONAUTICS 
For an additional amount for ‘‘Aeronautics’’, $150,000,000. 
EXPLORATION 
For an additional amount for ‘‘Exploration’’, $400,000,000. 
CROSS AGENCY SUPPORT 
For an additional amount for ‘‘Cross Agency Support’’, 
$50,000,000. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$2,000,000, to remain available until September 30, 2013. 
NATIONAL SCIENCE FOUNDATION 
RESEARCH AND RELATED ACTIVITIES 
For an additional amount for ‘‘Research and Related Activities’’, 
$2,500,000,000: Provided, That $300,000,000 shall be available 
solely for the Major Research Instrumentation program and 
$200,000,000 shall be for activities authorized by title II of Public 
Law 100–570 for academic research facilities modernization. 
EDUCATION AND HUMAN RESOURCES 
For an additional amount for ‘‘Education and Human 
Resources’’, $100,000,000. 
MAJOR RESEARCH EQUIPMENT AND FACILITIES CONSTRUCTION 
For an additional amount for ‘‘Major Research Equipment and 
Facilities Construction’’, $400,000,000. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$2,000,000, to remain available until September 30, 2013. 
GENERAL PROVISION—THIS TITLE 
SEC. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime 
Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 
3796dd–3(c)) shall not apply with respect to funds appropriated 
in this or any other Act making appropriations for fiscal year 
2009 or 2010 for Community Oriented Policing Services authorized 
under part Q of such Act of 1968. 
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123 STAT. 132 
PUBLIC LAW 111–5—FEB. 17, 2009 
TITLE III—DEPARTMENT OF DEFENSE 
OPERATION AND MAINTENANCE 
OPERATION AND MAINTENANCE, ARMY 
For an additional amount for ‘‘Operation and Maintenance, 
Army’’, $1,474,525,000, to remain available for obligation until Sep-
tember 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of 
Defense facilities. 
OPERATION AND MAINTENANCE, NAVY 
For an additional amount for ‘‘Operation and Maintenance, 
Navy’’, $657,051,000, to remain available for obligation until Sep-
tember 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of 
Defense facilities. 
OPERATION AND MAINTENANCE, MARINE CORPS 
For an additional amount for ‘‘Operation and Maintenance, 
Marine Corps’’, $113,865,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize Depart-
ment of Defense facilities, restore and modernize real property 
to include barracks, and invest in the energy efficiency of Depart-
ment of Defense facilities. 
OPERATION AND MAINTENANCE, AIR FORCE 
For an additional amount for ‘‘Operation and Maintenance, 
Air Force’’, $1,095,959,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of 
Defense facilities. 
OPERATION AND MAINTENANCE, ARMY RESERVE 
For an additional amount for ‘‘Operation and Maintenance, 
Army Reserve’’, $98,269,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of 
Defense facilities. 
OPERATION AND MAINTENANCE, NAVY RESERVE 
For an additional amount for ‘‘Operation and Maintenance, 
Navy Reserve’’, $55,083,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of 
Defense facilities. 
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123 STAT. 133 
PUBLIC LAW 111–5—FEB. 17, 2009 
OPERATION AND MAINTENANCE, MARINE CORPS RESERVE 
For an additional amount for ‘‘Operation and Maintenance, 
Marine Corps Reserve’’, $39,909,000, to remain available for obliga-
tion until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real prop-
erty to include barracks, and invest in the energy efficiency of 
Department of Defense facilities. 
OPERATION AND MAINTENANCE, AIR FORCE RESERVE 
For an additional amount for ‘‘Operation and Maintenance, 
Air Force Reserve’’, $13,187,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize Depart-
ment of Defense facilities, restore and modernize real property 
to include barracks, and invest in the energy efficiency of Depart-
ment of Defense facilities. 
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD 
For an additional amount for ‘‘Operation and Maintenance, 
Army National Guard’’, $266,304,000, to remain available for obliga-
tion until September 30, 2010, to improve, repair and modernize 
Department of Defense facilities, restore and modernize real prop-
erty to include barracks, and invest in the energy efficiency of 
Department of Defense facilities. 
OPERATION AND MAINTENANCE, AIR NATIONAL GUARD 
For an additional amount for ‘‘Operation and Maintenance, 
Air National Guard’’, $25,848,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize Depart-
ment of Defense facilities, restore and modernize real property 
to include barracks, and invest in the energy efficiency of Depart-
ment of Defense facilities. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY 
For an additional amount for ‘‘Research, Development, Test 
and Evaluation, Army’’, $75,000,000, to remain available for obliga-
tion until September 30, 2010. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY 
For an additional amount for ‘‘Research, Development, Test 
and Evaluation, Navy’’, $75,000,000, to remain available for obliga-
tion until September 30, 2010. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE 
For an additional amount for ‘‘Research, Development, Test 
and Evaluation, Air Force’’, $75,000,000, to remain available for 
obligation until September 30, 2010. 
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123 STAT. 134 
PUBLIC LAW 111–5—FEB. 17, 2009 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE 
For an additional amount for ‘‘Research, Development, Test 
and Evaluation, Defense-Wide’’, $75,000,000, to remain available 
for obligation until September 30, 2010. 
OTHER DEPARTMENT OF DEFENSE PROGRAMS 
DEFENSE HEALTH PROGRAM 
For an additional amount for ‘‘Defense Health Program’’, 
$400,000,000 for operation and maintenance, to remain available 
for obligation until September 30, 2010, to improve, repair and 
modernize military medical facilities, and invest in the energy effi-
ciency of military medical facilities. 
OFFICE OF THE INSPECTOR GENERAL 
For an additional amount for ‘‘Office of the Inspector General’’, 
$15,000,000 for operation and maintenance, to remain available 
for obligation until September 30, 2011. 
TITLE IV—ENERGY AND WATER DEVELOPMENT 
DEPARTMENT OF DEFENSE—CIVIL 
DEPARTMENT OF THE ARMY 
CORPS OF ENGINEERS—CIVIL 
INVESTIGATIONS 
For an additional amount for ‘‘Investigations’’, $25,000,000: Pro-
vided, That funds provided under this heading in this title shall 
only be used for programs, projects or activities that heretofore 
or hereafter receive funds provided in Acts making appropriations 
available for Energy and Water Development: Provided further, 
That funds provided under this heading in this title shall be used 
for programs, projects or activities or elements of programs, projects 
or activities that can be completed within the funds made available 
in that account and that will not require new budget authority 
to complete: Provided further, That for projects that are being 
completed with funds appropriated in this Act that would otherwise 
be expired for obligation, expired funds appropriated in this Act 
may be used to pay the cost of associated supervision, inspection, 
overhead, engineering and design on those projects and on subse-
quent claims, if any: Provided further, That the Secretary of the 
Army shall submit a quarterly report to the Committees on Appro-
priations of the House of Representatives and the Senate detailing 
the allocation, obligation and expenditures of these funds, beginning 
not later than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, $2,000,000,000: 
Provided, That not less than $200,000,000 of the funds provided 
Deadlines. 
Reports. 
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123 STAT. 135 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall be for water-related environmental infrastructure assistance: 
Provided further, That section 102 of Public Law 109–103 (33 U.S.C. 
2221) shall not apply to funds provided in this title: Provided 
further, That notwithstanding any other provision of law, funds 
provided in this paragraph shall not be cost shared with the Inland 
Waterways Trust Fund as authorized in Public Law 99–662: Pro-
vided further, That funds provided under this heading in this title 
shall only be used for programs, projects or activities that heretofore 
or hereafter receive funds provided in Acts making appropriations 
available for Energy and Water Development: Provided further, 
That funds provided under this heading in this title shall be used 
for programs, projects or activities or elements of programs, projects 
or activities that can be completed within the funds made available 
in that account and that will not require new budget authority 
to complete: Provided further, That the limitation concerning total 
project costs in section 902 of the Water Resources Development 
Act of 1986, as amended (33 U.S.C. 2280), shall not apply during 
fiscal year 2009 to any project that received funds provided in 
this title: Provided further, That funds appropriated under this 
heading may be used by the Secretary of the Army, acting through 
the Chief of Engineers, to undertake work authorized to be carried 
out in accordance with section 14 of the Flood Control Act of 
1946 (33 U.S.C. 701r); section 205 of the Flood Control Act of 
1948 (33 U.S.C. 701s); section 206 of the Water Resources Develop-
ment Act of 1996 (33 U.S.C. 2330); or section 1135 of the Water 
Resources Development Act of 1986 (33 U.S.C. 2309a), notwith-
standing the program cost limitations set forth in those sections: 
Provided further, That for projects that are being completed with 
funds appropriated in this Act that would otherwise be expired 
for obligation, expired funds appropriated in this Act may be used 
to pay the cost of associated supervision, inspection, overhead, 
engineering and design on those projects and on subsequent claims, 
if any: Provided further, That the Secretary of the Army shall 
submit a quarterly report to the Committees on Appropriations 
of the House of Representatives and the Senate detailing the alloca-
tion, obligation and expenditures of these funds, beginning not 
later than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading. 
MISSISSIPPI RIVER AND TRIBUTARIES 
For an additional amount for ‘‘Mississippi River and Tribu-
taries’’, $375,000,000: Provided, That funds provided under this 
heading in this title shall only be used for programs, projects 
or activities that heretofore or hereafter receive funds provided 
in Acts making appropriations available for Energy and Water 
Development: Provided further, That funds provided under this 
heading in this title shall be used for programs, projects or activities 
or elements of programs, projects or activities that can be completed 
within the funds made available in that account and that will 
not require new budget authority to complete: Provided further, 
That the limitation concerning total project costs in section 902 
of the Water Resources Development Act of 1986, as amended 
(33 U.S.C. 2280), shall not apply during fiscal year 2009 to any 
project that received funds provided in this title: Provided further, 
That for projects that are being completed with funds appropriated 
Deadlines. 
Reports. 
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123 STAT. 136 
PUBLIC LAW 111–5—FEB. 17, 2009 
in this Act that would otherwise be expired for obligation, expired 
funds appropriated in this Act may be used to pay the cost of 
associated supervision, inspection, overhead, engineering and design 
on those projects and on subsequent claims, if any: Provided further, 
That the Secretary of the Army shall submit a quarterly report 
to the Committees on Appropriations of the House of Representa-
tives and the Senate detailing the allocation, obligation and expendi-
tures of these funds, beginning not later than 45 days after enact-
ment of this Act: Provided further, That the Secretary shall have 
unlimited reprogramming authority for these funds provided under 
this heading. 
OPERATION AND MAINTENANCE 
For an additional amount for ‘‘Operation and Maintenance’’, 
$2,075,000,000: Provided, That funds provided under this heading 
in this title shall only be used for programs, projects or activities 
that heretofore or hereafter receive funds provided in Acts making 
appropriations available for Energy and Water Development: Pro-
vided further, That funds provided under this heading in this title 
shall be used for programs, projects or activities or elements of 
programs, projects or activities that can be completed within the 
funds made available in that account and that will not require 
new budget authority to complete: Provided further, That section 
9006 of Public Law 110–114 shall not apply to funds provided 
in this title: Provided further, That for projects that are being 
completed with funds appropriated in this Act that would otherwise 
be expired for obligation, expired funds appropriated in this Act 
may be used to pay the cost of associated supervision, inspection, 
overhead, engineering and design on those projects and on subse-
quent claims, if any: Provided further, That the Secretary of the 
Army shall submit a quarterly report to the Committees on Appro-
priations of the House of Representatives and the Senate detailing 
the allocation, obligation and expenditures of these funds, beginning 
not later than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading. 
REGULATORY PROGRAM 
For 
an 
additional 
amount 
for 
‘‘Regulatory 
Program’’, 
$25,000,000. 
FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM 
For an additional amount for ‘‘Formerly Utilized Sites Remedial 
Action Program’’, $100,000,000: Provided, That funds provided 
under this heading in this title shall be used for programs, projects 
or activities or elements of programs, projects or activities that 
can be completed within the funds made available in that account 
and that will not require new budget authority to complete: Pro-
vided further, That for projects that are being completed with 
funds appropriated in this Act that would otherwise be expired 
for obligation, expired funds appropriated in this Act may be used 
to pay the cost of associated supervision, inspection, overhead, 
engineering and design on those projects and on subsequent claims, 
if any: Provided further, That the Secretary of the Army shall 
submit a quarterly report to the Committees on Appropriations 
Deadlines. 
Reports. 
Deadlines. 
Reports. 
Deadlines. 
Reports. 
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123 STAT. 137 
PUBLIC LAW 111–5—FEB. 17, 2009 
of the House of Representatives and the Senate detailing the alloca-
tion, obligation and expenditures of these funds, beginning not 
later than 45 days after enactment of this Act: Provided further, 
That the Secretary shall have unlimited reprogramming authority 
for these funds provided under this heading. 
DEPARTMENT OF THE INTERIOR 
BUREAU OF RECLAMATION 
WATER AND RELATED RESOURCES 
For an additional amount for ‘‘Water and Related Resources’’, 
$1,000,000,000: Provided, That of the amount appropriated under 
this heading, not less than $126,000,000 shall be used for water 
reclamation and reuse projects authorized under title XVI of Public 
Law 102–575: Provided further, That funds provided in this Act 
shall be used for elements of projects, programs or activities that 
can be completed within these funding amounts and not create 
budgetary obligations in future fiscal years: Provided further, That 
$50,000,000 of the funds provided under this heading may be trans-
ferred to the Department of the Interior for programs, projects 
and activities authorized by the Central Utah Project Completion 
Act (titles II–V of Public Law 102–575): Provided further, That 
$50,000,000 of the funds provided under this heading may be used 
for programs, projects, and activities authorized by the California 
Bay-Delta Restoration Act (Public Law 108–361): Provided further, 
That not less than $60,000,000 of the funds provided under this 
heading shall be used for rural water projects and shall be expended 
primarily on water intake and treatment facilities of such projects: 
Provided further, That not less than $10,000,000 of the funds pro-
vided under this heading shall be used for a bureau-wide inspection 
of canals program in urbanized areas: Provided further, That the 
costs of extraordinary maintenance and replacement activities car-
ried out with funds provided in this Act shall be repaid pursuant 
to existing authority, except the length of repayment period shall 
be as determined by the Commissioner, but in no case shall the 
repayment period exceed 50 years and the repayment shall include 
interest, at a rate determined by the Secretary of the Treasury 
as of the beginning of the fiscal year in which the work is com-
menced, on the basis of average market yields on outstanding 
marketable obligations of the United States with the remaining 
periods of maturity comparable to the applicable reimbursement 
period of the project adjusted to the nearest one-eighth of 1 percent 
on the unamortized balance of any portion of the loan: Provided 
further, That for projects that are being completed with funds 
appropriated in this Act that would otherwise be expired for obliga-
tion, expired funds appropriated in this Act may be used to pay 
the cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any: 
Provided further, That the Secretary of the Interior shall submit 
a quarterly report to the Committees on Appropriations of the 
House of Representatives and the Senate detailing the allocation, 
obligation and expenditures of these funds, beginning not later 
than 45 days after enactment of this Act: Provided further, That 
the Secretary shall have unlimited reprogramming authority for 
these funds provided under this heading. 
Deadlines. 
Reports. 
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123 STAT. 138 
PUBLIC LAW 111–5—FEB. 17, 2009 
DEPARTMENT OF ENERGY 
ENERGY PROGRAMS 
ENERGY EFFICIENCY AND RENEWABLE ENERGY 
For an additional amount for ‘‘Energy Efficiency and Renewable 
Energy’’, $16,800,000,000: Provided, That $3,200,000,000 shall be 
available for Energy Efficiency and Conservation Block Grants for 
implementation of programs authorized under subtitle E of title 
V of the Energy Independence and Security Act of 2007 (42 U.S.C. 
17151 et seq.), of which $2,800,000,000 is available through the 
formula in subtitle E: Provided further, That the Secretary may 
use the most recent and accurate population data available to 
satisfy the requirements of section 543(b) of the Energy Independ-
ence and Security Act of 2007: Provided further, That the remaining 
$400,000,000 shall be awarded on a competitive basis: Provided 
further, That $5,000,000,000 shall be for the Weatherization Assist-
ance Program under part A of title IV of the Energy Conservation 
and Production Act (42 U.S.C. 6861 et seq.): Provided further, 
That $3,100,000,000 shall be for the State Energy Program author-
ized under part D of title III of the Energy Policy and Conservation 
Act (42 U.S.C. 6321): Provided further, That $2,000,000,000 shall 
be available for grants for the manufacturing of advanced batteries 
and components and the Secretary shall provide facility funding 
awards under this section to manufacturers of advanced battery 
systems and vehicle batteries that are produced in the United 
States, including advanced lithium ion batteries, hybrid electrical 
systems, component manufacturers, and software designers: Pro-
vided further, That notwithstanding section 3304 of title 5, United 
States Code, and without regard to the provisions of sections 3309 
through 3318 of such title 5, the Secretary of Energy, upon a 
determination that there is a severe shortage of candidates or 
a critical hiring need for particular positions, may from within 
the funds provided, recruit and directly appoint highly qualified 
individuals into the competitive service: Provided further, That 
such authority shall not apply to positions in the Excepted Service 
or the Senior Executive Service: Provided further, That any action 
authorized herein shall be consistent with the merit principles 
of section 2301 of such title 5, and the Department shall comply 
with the public notice requirements of section 3327 of such title 
5. 
ELECTRICITY DELIVERY AND ENERGY RELIABILITY 
For an additional amount for ‘‘Electricity Delivery and Energy 
Reliability,’’ $4,500,000,000: Provided, That funds shall be available 
for expenses necessary for electricity delivery and energy reliability 
activities to modernize the electric grid, to include demand respon-
sive equipment, enhance security and reliability of the energy infra-
structure, energy storage research, development, demonstration and 
deployment, and facilitate recovery from disruptions to the energy 
supply, and for implementation of programs authorized under title 
XIII of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17381 et seq.): Provided further, That $100,000,000 shall 
be available for worker training activities: Provided further, That 
notwithstanding section 3304 of title 5, United States Code, and 
without regard to the provisions of sections 3309 through 3318 
Grants. 
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123 STAT. 139 
PUBLIC LAW 111–5—FEB. 17, 2009 
of such title 5, the Secretary of Energy, upon a determination 
that there is a severe shortage of candidates or a critical hiring 
need for particular positions, may from within the funds provided, 
recruit and directly appoint highly qualified individuals into the 
competitive service: Provided further, That such authority shall 
not apply to positions in the Excepted Service or the Senior Execu-
tive Service: Provided further, That any action authorized herein 
shall be consistent with the merit principles of section 2301 of 
such title 5, and the Department shall comply with the public 
notice requirements of section 3327 of such title 5: Provided further, 
That for the purpose of facilitating the development of regional 
transmission plans, the Office of Electricity Delivery and Energy 
Reliability within the Department of Energy is provided $80,000,000 
within the available funds to conduct a resource assessment and 
an analysis of future demand and transmission requirements after 
consultation with the Federal Energy Regulatory Commission: Pro-
vided further, That the Office of Electricity Delivery and Energy 
Reliability in coordination with the Federal Energy Regulatory 
Commission will provide technical assistance to the North American 
Electric Reliability Corporation, the regional reliability entities, the 
States, and other transmission owners and operators for the forma-
tion of interconnection-based transmission plans for the Eastern 
and Western Interconnections and ERCOT: Provided further, That 
such assistance may include modeling, support to regions and States 
for the development of coordinated State electricity policies, pro-
grams, laws, and regulations: Provided further, That $10,000,000 
is provided to implement section 1305 of Public Law 110–140: 
Provided further, That the Secretary of Energy may use or transfer 
amounts provided under this heading to carry out new authority 
for transmission improvements, if such authority is enacted in 
any subsequent Act, consistent with existing fiscal management 
practices and procedures. 
FOSSIL ENERGY RESEARCH AND DEVELOPMENT 
For an additional amount for ‘‘Fossil Energy Research and 
Development’’, $3,400,000,000. 
NON-DEFENSE ENVIRONMENTAL CLEANUP 
For an additional amount for ‘‘Non-Defense Environmental 
Cleanup’’, $483,000,000. 
URANIUM ENRICHMENT DECONTAMINATION AND DECOMMISSIONING 
FUND 
For an additional amount for ‘‘Uranium Enrichment Decon-
tamination and Decommissioning Fund’’, $390,000,000, of which 
$70,000,000 shall be available in accordance with title X, subtitle 
A of the Energy Policy Act of 1992. 
SCIENCE 
For an additional amount for ‘‘Science’’, $1,600,000,000. 
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123 STAT. 140 
PUBLIC LAW 111–5—FEB. 17, 2009 
ADVANCED RESEARCH PROJECTS AGENCY—ENERGY 
For 
the 
Advanced 
Research 
Projects 
Agency—Energy, 
$400,000,000, as authorized under section 5012 of the America 
COMPETES Act (42 U.S.C. 16538). 
TITLE 17—INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM 
For an additional amount for the cost of guaranteed loans 
authorized by section 1705 of the Energy Policy Act of 2005, 
$6,000,000,000, available until expended, to pay the costs of guaran-
tees made under this section: Provided, That of the amount provided 
for title XVII, $25,000,000 shall be used for administrative expenses 
in carrying out the guaranteed loan program: Provided further, 
That of the amounts provided for title XVII, $10,000,000 shall 
be transferred to and available for administrative expenses for 
the Advanced Technology Vehicles Manufacturing Loan Program. 
OFFICE OF THE INSPECTOR GENERAL 
For necessary expenses of the Office of the Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, as amended, $15,000,000, to remain available until September 
30, 2012. 
ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES 
DEFENSE ENVIRONMENTAL CLEANUP 
For an additional amount for ‘‘Defense Environmental 
Cleanup,’’ $5,127,000,000. 
CONSTRUCTION, REHABILITATION, OPERATION, AND MAINTENANCE, 
WESTERN AREA POWER ADMINISTRATION 
For carrying out the functions authorized by title III, section 
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and 
other related activities including conservation and renewable 
resources programs as authorized, $10,000,000, to remain available 
until expended: Provided, That the Administrator shall establish 
such personnel staffing levels as he deems necessary to economically 
and efficiently complete the activities pursued under the authority 
granted by section 402 of this Act: Provided further, That this 
appropriation is non-reimbursable. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 401. BONNEVILLE POWER ADMINISTRATION BORROWING 
AUTHORITY. For the purposes of providing funds to assist in 
financing the construction, acquisition, and replacement of the 
transmission system of the Bonneville Power Administration and 
to implement the authority of the Administrator of the Bonneville 
Power Administration under the Pacific Northwest Electric Power 
Planning and Conservation Act (16 U.S.C. 839 et seq.), an additional 
$3,250,000,000 in borrowing authority is made available under the 
Federal Columbia River Transmission System Act (16 U.S.C. 838 
et seq.), to remain outstanding at any time. 
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123 STAT. 141 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 402. WESTERN AREA POWER ADMINISTRATION BORROWING 
AUTHORITY. The Hoover Power Plant Act of 1984 (Public Law 98– 
381) is amended by adding at the end the following: 
‘‘TITLE III—BORROWING AUTHORITY 
‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING 
AUTHORITY. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 
Administrator of the Western Area Power Administration. 
‘‘(2) SECRETARY.—The term ‘Secretary’ means the Secretary 
of the Treasury. 
‘‘(b) AUTHORITY.— 
‘‘(1) IN GENERAL.—Notwithstanding any other provision of 
law, subject to paragraphs (2) through (5)— 
‘‘(A) the Western Area Power Administration may bor-
row funds from the Treasury; and 
‘‘(B) the Secretary shall, without further appropriation 
and without fiscal year limitation, loan to the Western 
Area Power Administration, on such terms as may be fixed 
by the Administrator and the Secretary, such sums (not 
to exceed, in the aggregate (including deferred interest), 
$3,250,000,000 in outstanding repayable balances at any 
one time) as, in the judgment of the Administrator, are 
from time to time required for the purpose of— 
‘‘(i) constructing, financing, facilitating, planning, 
operating, maintaining, or studying construction of new 
or upgraded electric power transmission lines and 
related facilities with at least one terminus within 
the area served by the Western Area Power Adminis-
tration; and 
‘‘(ii) delivering or facilitating the delivery of power 
generated by renewable energy resources constructed 
or reasonably expected to be constructed after the date 
of enactment of this section. 
‘‘(2) INTEREST.—The rate of interest to be charged in 
connection with any loan made pursuant to this subsection 
shall be fixed by the Secretary, taking into consideration market 
yields on outstanding marketable obligations of the United 
States of comparable maturities as of the date of the loan. 
‘‘(3) REFINANCING.—The Western Area Power Administra-
tion may refinance loans taken pursuant to this section within 
the Treasury. 
‘‘(4) PARTICIPATION.—The Administrator may permit other 
entities to participate in the financing, construction and owner-
ship projects financed under this section. 
‘‘(5) CONGRESSIONAL REVIEW OF DISBURSEMENT.—Effective 
upon the date of enactment of this section, the Administrator 
shall have the authority to have utilized $1,750,000,000 at 
any one time. If the Administrator seeks to borrow funds above 
$1,750,000,000, the funds will be disbursed unless there is 
enacted, within 90 calendar days of the first such request, 
a joint resolution that rescinds the remainder of the balance 
of the borrowing authority provided in this section. 
‘‘(c) TRANSMISSION LINE AND RELATED FACILITY PROJECTS.— 
Deadline. 
Effective date. 
42 USC 16421a. 
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123 STAT. 142 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(1) IN
GENERAL.—For repayment purposes, each trans-
mission line and related facility project in which the Western 
Area Power Administration participates pursuant to this section 
shall be treated as separate and distinct from— 
‘‘(A) each other such project; and 
‘‘(B) all other Western Area Power Administration 
power and transmission facilities. 
‘‘(2) PROCEEDS.—The Western Area Power Administration 
shall apply the proceeds from the use of the transmission 
capacity from an individual project under this section to the 
repayment of the principal and interest of the loan from the 
Treasury attributable to that project, after reserving such funds 
as the Western Area Power Administration determines are 
necessary— 
‘‘(A) to pay for any ancillary services that are provided; 
and 
‘‘(B) to meet the costs of operating and maintaining 
the new project from which the revenues are derived. 
‘‘(3) SOURCE OF REVENUE.—Revenue from the use of projects 
under this section shall be the only source of revenue for— 
‘‘(A) repayment of the associated loan for the project; 
and 
‘‘(B) payment of expenses for ancillary services and 
operation and maintenance. 
‘‘(4) LIMITATION ON AUTHORITY.—Nothing in this section 
confers on the Administrator any additional authority or obliga-
tion to provide ancillary services to users of transmission facili-
ties developed under this section. 
‘‘(5) TREATMENT
OF
CERTAIN
REVENUES.—Revenue from 
ancillary services provided by existing Federal power systems 
to users of transmission projects funded pursuant to this section 
shall be treated as revenue to the existing power system that 
provided the ancillary services. 
‘‘(d) CERTIFICATION.— 
‘‘(1) IN GENERAL.—For each project in which the Western 
Area Power Administration participates pursuant to this sec-
tion, the Administrator shall certify, prior to committing funds 
for any such project, that— 
‘‘(A) the project is in the public interest; 
‘‘(B) the project will not adversely impact system reli-
ability or operations, or other statutory obligations; and 
‘‘(C) it is reasonable to expect that the proceeds from 
the project shall be adequate to make repayment of the 
loan. 
‘‘(2) FORGIVENESS OF BALANCES.— 
‘‘(A) IN
GENERAL.—If, at the end of the useful life 
of a project, there is a remaining balance owed to the 
Treasury under this section, the balance shall be forgiven. 
‘‘(B) UNCONSTRUCTED PROJECTS.—Funds expended to 
study projects that are considered pursuant to this section 
but that are not constructed shall be forgiven. 
‘‘(C) NOTIFICATION.—The Administrator shall notify the 
Secretary of such amounts as are to be forgiven under 
this paragraph. 
‘‘(e) PUBLIC PROCESSES.— 
‘‘(1) POLICIES
AND
PRACTICES.—Prior to requesting any 
loans under this section, the Administrator shall use a public 
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123 STAT. 143 
PUBLIC LAW 111–5—FEB. 17, 2009 
process to develop practices and policies that implement the 
authority granted by this section. 
‘‘(2) REQUESTS FOR INTEREST.—In the course of selecting 
potential projects to be funded under this section, the Adminis-
trator shall seek Requests For Interest from entities interested 
in identifying potential projects through one or more notices 
published in the Federal Register.’’ 
SEC. 403. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT. Up 
to 0.5 percent of each amount appropriated in this title may be 
used for the expenses of management and oversight of the programs, 
grants, and activities funded by such appropriation, and may be 
transferred by the head of the Federal department or agency 
involved to any other appropriate account within the department 
or agency for that purpose: Provided, That the Secretary will provide 
a report to the Committees on Appropriations of the House of 
Representatives and the Senate 30 days prior to the transfer: Pro-
vided further, That funds set aside under this section shall remain 
available for obligation until September 30, 2012. 
SEC. 404. TECHNICAL CORRECTIONS TO THE ENERGY INDEPEND-
ENCE AND SECURITY ACT OF 2007. (a) Section 543(a) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17153(a)) is 
amended— 
(1) by redesignating paragraphs (2) through (4) as para-
graphs (3) through (5), respectively; and 
(2) by striking paragraph (1) and inserting the following: 
‘‘(1) 34 percent to eligible units of local government—alter-
native 1, in accordance with subsection (b); 
‘‘(2) 34 percent to eligible units of local government—alter-
native 2, in accordance with subsection (b);’’. 
(b) Section 543(b) of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17153(b)) is amended by striking ‘‘subsection 
(a)(1)’’ and inserting ‘‘subsection (a)(1) or (2)’’. 
(c) Section 548(a)(1) of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ‘‘; 
provided’’ and all that follows through ‘‘541(3)(B)’’. 
SEC. 405. AMENDMENTS
TO
TITLE
XIII OF
THE
ENERGY 
INDEPENDENCE AND SECURITY ACT OF 2007. Title XIII of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17381 and fol-
lowing) is amended as follows: 
(1) By amending subparagraph (A) of section 1304(b)(3) 
to read as follows: 
‘‘(A) IN GENERAL.—In carrying out the initiative, the 
Secretary shall provide financial support to smart grid 
demonstration projects in urban, suburban, tribal, and 
rural areas, including areas where electric system assets 
are controlled by nonprofit entities and areas where electric 
system assets are controlled by investor-owned utilities.’’. 
(2) By amending subparagraph (C) of section 1304(b)(3) 
to read as follows: 
‘‘(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVEST-
MENTS.—The Secretary shall provide to an electric utility 
described in subparagraph (B) or to other parties financial 
assistance for use in paying an amount equal to not more 
than 50 percent of the cost of qualifying advanced grid 
technology investments made by the electric utility or other 
party to carry out a demonstration project.’’. 
42 USC 17384. 
Reports. 
Deadline. 
Notice. 
Federal Register, 
publication. 
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123 STAT. 144 
PUBLIC LAW 111–5—FEB. 17, 2009 
(3) By inserting after section 1304(b)(3)(D) the following 
new subparagraphs: 
‘‘(E) AVAILABILITY OF DATA.—The Secretary shall estab-
lish and maintain a smart grid information clearinghouse 
in a timely manner which will make data from smart 
grid demonstration projects and other sources available 
to the public. As a condition of receiving financial assistance 
under this subsection, a utility or other participant in 
a smart grid demonstration project shall provide such 
information as the Secretary may require to become avail-
able through the smart grid information clearinghouse in 
the form and within the timeframes as directed by the 
Secretary. The Secretary shall assure that business propri-
etary information and individual customer information is 
not included in the information made available through 
the clearinghouse. 
‘‘(F) OPEN PROTOCOLS AND STANDARDS.—The Secretary 
shall require as a condition of receiving funding under 
this subsection that demonstration projects utilize open 
protocols and standards (including Internet-based protocols 
and standards) if available and appropriate.’’. 
(4) By amending paragraph (2) of section 1304(c) to read 
as follows: 
‘‘(2) to carry out subsection (b), such sums as may be 
necessary.’’. 
(5) By amending subsection (a) of section 1306 by striking 
‘‘reimbursement of one-fifth (20 percent)’’ and inserting ‘‘grants 
of up to one-half (50 percent)’’. 
(6) By striking the last sentence of subsection (b)(9) of 
section 1306. 
(7) By striking ‘‘are eligible for’’ in subsection (c)(1) of 
section 1306 and inserting ‘‘utilize’’. 
(8) By amending subsection (e) of section 1306 to read 
as follows: 
‘‘(e) PROCEDURES AND RULES.—(1) The Secretary shall, within 
60 days after the enactment of the American Recovery and Reinvest-
ment Act of 2009, by means of a notice of intent and subsequent 
solicitation of grant proposals— 
‘‘(A) establish procedures by which applicants can obtain 
grants of not more than one-half of their documented costs; 
‘‘(B) require as a condition of receiving funding under this 
subsection that demonstration projects utilize open protocols 
and standards (including Internet-based protocols and stand-
ards) if available and appropriate; 
‘‘(C) establish procedures to ensure that there is no duplica-
tion or multiple payment for the same investment or costs, 
that the grant goes to the party making the actual expenditures 
for the qualifying Smart Grid investments, and that the grants 
made have a significant effect in encouraging and facilitating 
the development of a smart grid; 
‘‘(D) establish procedures to ensure there will be public 
records of grants made, recipients, and qualifying Smart Grid 
investments which have received grants; and 
‘‘(E) establish procedures to provide advance payment of 
moneys up to the full amount of the grant award. 
‘‘(2) The Secretary shall have discretion and exercise reasonable 
judgment to deny grants for investments that do not qualify.’’. 
Deadline. 
Notice. 
42 USC 17386. 
42 USC 17384. 
Clearinghouse. 
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123 STAT. 145 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 406. RENEWABLE ENERGY AND ELECTRIC POWER TRANS-
MISSION LOAN GUARANTEE PROGRAM. (a) AMENDMENT.—Title XVII 
of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) is 
amended by adding the following at the end: 
‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF 
RENEWABLE ENERGY AND ELECTRIC POWER TRANS-
MISSION PROJECTS. 
‘‘(a) IN GENERAL.—Notwithstanding section 1703, the Secretary 
may make guarantees under this section only for the following 
categories of projects that commence construction not later than 
September 30, 2011: 
‘‘(1) Renewable energy systems, including incremental 
hydropower, that generate electricity or thermal energy, and 
facilities that manufacture related components. 
‘‘(2) 
Electric 
power 
transmission 
systems, 
including 
upgrading and reconductoring projects. 
‘‘(3) Leading edge biofuel projects that will use technologies 
performing at the pilot or demonstration scale that the Sec-
retary determines are likely to become commercial technologies 
and will produce transportation fuels that substantially reduce 
life-cycle greenhouse gas emissions compared to other transpor-
tation fuels. 
‘‘(b) FACTORS RELATING TO ELECTRIC POWER TRANSMISSION SYS-
TEMS.—In determining to make guarantees to projects described 
in subsection (a)(2), the Secretary may consider the following fac-
tors: 
‘‘(1) The viability of the project without guarantees. 
‘‘(2) The availability of other Federal and State incentives. 
‘‘(3) The importance of the project in meeting reliability 
needs. 
‘‘(4) The effect of the project in meeting a State or region’s 
environment (including climate change) and energy goals. 
‘‘(c) WAGE RATE REQUIREMENTS.—The Secretary shall require 
that each recipient of support under this section provide reasonable 
assurance that all laborers and mechanics employed in the perform-
ance of the project for which the assistance is provided, including 
those employed by contractors or subcontractors, will be paid wages 
at rates not less than those prevailing on similar work in the 
locality as determined by the Secretary of Labor in accordance 
with subchapter IV of chapter 31 of part A of subtitle II of title 
40, United States Code (commonly referred to as the ‘Davis-Bacon 
Act’). 
‘‘(d) LIMITATION.—Funding under this section for projects 
described in subsection (a)(3) shall not exceed $500,000,000. 
‘‘(e) SUNSET.—The authority to enter into guarantees under 
this section shall expire on September 30, 2011.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table of contents 
for the Energy Policy Act of 2005 is amended by inserting after 
the item relating to section 1704 the following new item: 
‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and elec-
tric power transmission projects.’’. 
SEC. 407. WEATHERIZATION
ASSISTANCE
PROGRAM
AMEND-
MENTS. (a) INCOME LEVEL.—Section 412(7) of the Energy Conserva-
tion and Production Act (42 U.S.C. 6862(7)) is amended by striking 
‘‘150 percent’’ both places it appears and inserting ‘‘200 percent’’. 
42 USC 16516. 
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123 STAT. 146 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) ASSISTANCE LEVEL PER DWELLING UNIT.—Section 415(c)(1) 
of the Energy Conservation and Production Act (42 U.S.C. 
6865(c)(1)) is amended by striking ‘‘$2,500’’ and inserting ‘‘$6,500’’. 
(c) EFFECTIVE USE OF FUNDS.—In providing funds made avail-
able by this Act for the Weatherization Assistance Program, the 
Secretary may encourage States to give priority to using such 
funds for the most cost-effective efficiency activities, which may 
include insulation of attics, if, in the Secretary’s view, such use 
of funds would increase the effectiveness of the program. 
(d) TRAINING AND TECHNICAL ASSISTANCE.—Section 416 of the 
Energy Conservation and Production Act (42 U.S.C. 6866) is 
amended by striking ‘‘10 percent’’ and inserting ‘‘up to 20 percent’’. 
(e) ASSISTANCE
FOR
PREVIOUSLY
WEATHERIZED
DWELLING 
UNITS.—Section 415(c)(2) of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6865(c)(2)) is amended by striking ‘‘September 
30, 1979’’ and inserting ‘‘September 30, 1994’’. 
SEC. 408. TECHNICAL CORRECTIONS TO PUBLIC UTILITY REGU-
LATORY POLICIES ACT OF 1978. (a) Section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 
amended by redesignating paragraph (16) relating to consideration 
of smart grid investments (added by section 1307(a) of Public Law 
110–140) as paragraph (18) and by redesignating paragraph (17) 
relating to smart grid information (added by section 1308(a) of 
Public Law 110–140) as paragraph (19). 
(b) Subsections (b) and (d) of section 112 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended 
by striking ‘‘(17) through (18)’’ in each place it appears and inserting 
‘‘(16) through (19)’’. 
SEC. 409. RENEWABLE ELECTRICITY TRANSMISSION STUDY. In 
completing the 2009 National Electric Transmission Congestion 
Study, the Secretary of Energy shall include— 
(1) an analysis of the significant potential sources of renew-
able energy that are constrained in accessing appropriate 
market areas by lack of adequate transmission capacity; 
(2) an analysis of the reasons for failure to develop the 
adequate transmission capacity; 
(3) recommendations for achieving adequate transmission 
capacity; 
(4) an analysis of the extent to which legal challenges 
filed at the State and Federal level are delaying the construc-
tion of transmission necessary to access renewable energy; and 
(5) an explanation of assumptions and projections made 
in the Study, including— 
(A) assumptions and projections relating to energy effi-
ciency improvements in each load center; 
(B) assumptions and projections regarding the location 
and type of projected new generation capacity; and 
(C) assumptions and projections regarding projected 
deployment of distributed generation infrastructure. 
SEC. 410. ADDITIONAL STATE ENERGY GRANTS. (a) IN GEN-
ERAL.—Amounts appropriated under the heading ‘‘Department of 
Energy—Energy Programs—Energy Efficiency and Renewable 
Energy’’ in this title shall be available to the Secretary of Energy 
for making additional grants under part D of title III of the Energy 
Policy and Conservation Act (42 U.S.C. 6321 et seq.). The Secretary 
shall make grants under this section in excess of the base allocation 
established for a State under regulations issued pursuant to the 
Notification. 
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123 STAT. 147 
PUBLIC LAW 111–5—FEB. 17, 2009 
authorization provided in section 365(f) of such Act only if the 
governor of the recipient State notifies the Secretary of Energy 
in writing that the governor has obtained necessary assurances 
that each of the following will occur: 
(1) The applicable State regulatory authority will seek to 
implement, in appropriate proceedings for each electric and 
gas utility, with respect to which the State regulatory authority 
has ratemaking authority, a general policy that ensures that 
utility financial incentives are aligned with helping their cus-
tomers use energy more efficiently and that provide timely 
cost recovery and a timely earnings opportunity for utilities 
associated with cost-effective measurable and verifiable effi-
ciency savings, in a way that sustains or enhances utility 
customers’ incentives to use energy more efficiently. 
(2) The State, or the applicable units of local government 
that have authority to adopt building codes, will implement 
the following: 
(A) A building energy code (or codes) for residential 
buildings that meets or exceeds the most recently published 
International Energy Conservation Code, or achieves 
equivalent or greater energy savings. 
(B) A building energy code (or codes) for commercial 
buildings throughout the State that meets or exceeds the 
ANSI/ASHRAE/IESNA Standard 90.1–2007, or achieves 
equivalent or greater energy savings. 
(C) A plan for the jurisdiction achieving compliance 
with the building energy code or codes described in sub-
paragraphs (A) and (B) within 8 years of the date of enact-
ment of this Act in at least 90 percent of new and renovated 
residential and commercial building space. Such plan shall 
include active training and enforcement programs and 
measurement of the rate of compliance each year. 
(3) The State will to the extent practicable prioritize the 
grants toward funding energy efficiency and renewable energy 
programs, including— 
(A) the expansion of existing energy efficiency pro-
grams approved by the State or the appropriate regulatory 
authority, including energy efficiency retrofits of buildings 
and industrial facilities, that are funded— 
(i) by the State; or 
(ii) through rates under the oversight of the 
applicable 
regulatory 
authority, 
to 
the 
extent 
applicable; 
(B) the expansion of existing programs, approved by 
the State or the appropriate regulatory authority, to sup-
port renewable energy projects and deployment activities, 
including programs operated by entities which have the 
authority and capability to manage and distribute grants, 
loans, performance incentives, and other forms of financial 
assistance; and 
(C) cooperation and joint activities between States to 
advance more efficient and effective use of this funding 
to support the priorities described in this paragraph. 
(b) 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 
Deadline. 
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123 STAT. 148 
PUBLIC LAW 111–5—FEB. 17, 2009 
Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall 
not apply to assistance provided under this section. 
(c) EQUIPMENT AND MATERIALS FOR ENERGY EFFICIENCY MEAS-
URES AND RENEWABLE ENERGY MEASURES.—No limitation on the 
percentage of funding that may be used for the purchase and 
installation of equipment and materials for energy efficiency meas-
ures and renewable energy measures under grants provided under 
part D of title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6321 et seq.) shall apply to assistance provided under 
this section. 
TITLE V—FINANCIAL SERVICES AND GENERAL 
GOVERNMENT 
DEPARTMENT OF THE TREASURY 
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 
SALARIES AND EXPENSES 
For an additional amount for necessary expenses of the 
Treasury Inspector General for Tax Administration in carrying 
out the Inspector General Act of 1978, $7,000,000, to remain avail-
able until September 30, 2013, for oversight and audits of the 
administration of the making work pay tax credit and economic 
recovery payments under the American Recovery and Reinvestment 
Act of 2009. 
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
PROGRAM ACCOUNT 
For an additional amount for ‘‘Community Development Finan-
cial Institutions Fund Program Account’’, $100,000,000, to remain 
available until September 30, 2010, for qualified applicants under 
the fiscal year 2009 funding round of the Community Development 
Financial Institutions Program, of which up to $8,000,000 may 
be for financial assistance, technical assistance, training and out-
reach programs designed to benefit Native American, Native 
Hawaiian, and Alaskan Native communities and provided primarily 
through qualified community development lender organizations 
with experience and expertise in community development banking 
and lending in Indian country, Native American organizations, 
tribes and tribal organizations and other suitable providers and 
up to $2,000,000 may be used for administrative expenses: Provided, 
That for the purpose of the fiscal year 2009 funding round, the 
following statutory provisions are hereby waived: 12 U.S.C. 4707(e) 
and 12 U.S.C. 4707(d): Provided further, That no awardee, together 
with its subsidiaries and affiliates, may be awarded more than 
5 percent of the aggregate funds available during fiscal year 2009 
from the Community Development Financial Institutions Program: 
Provided further, That no later than 60 days after the date of 
enactment of this Act, the Department of the Treasury shall submit 
to the Committees on Appropriations of the House of Representa-
tives and the Senate a detailed expenditure plan for funds provided 
under this heading. 
Deadline. 
Expenditure 
plan. 
Waiver. 
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123 STAT. 149 
PUBLIC LAW 111–5—FEB. 17, 2009 
INTERNAL REVENUE SERVICE 
HEALTH INSURANCE TAX CREDIT ADMINISTRATION 
For an additional amount to implement the health insurance 
tax credit under the TAA Health Coverage Improvement Act of 
2009, $80,000,000, to remain available until September 30, 2010. 
GENERAL SERVICES ADMINISTRATION 
REAL PROPERTY ACTIVITIES 
FEDERAL BUILDINGS FUND 
LIMITATIONS ON AVAILABILITY OF REVENUE 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to be deposited in the Federal 
Buildings Fund, $5,550,000,000, to carry out the purposes of the 
Fund, of which not less than $750,000,000 shall be available for 
Federal buildings and United States courthouses, not less than 
$300,000,000 shall be available for border stations and land ports 
of entry, and not less than $4,500,000,000 shall be available for 
measures necessary to convert GSA facilities to High-Performance 
Green Buildings, as defined in section 401 of Public Law 110– 
140: Provided, That not to exceed $108,000,000 of the amounts 
provided under this heading may be expended for rental of space, 
related to leasing of temporary space in connection with projects 
funded under this heading: Provided further, That not to exceed 
$127,000,000 of the amounts provided under this heading may 
be expended for building operations, for the administrative costs 
of completing projects funded under this heading: Provided further, 
That not to exceed $3,000,000 of the funds provided shall be for 
on-the-job pre-apprenticeship and apprenticeship training programs 
registered with the Department of Labor, for the construction, 
repair, and alteration of Federal buildings: Provided further, That 
not less than $5,000,000,000 of the funds provided under this 
heading shall be obligated by September 30, 2010, and the 
remainder of the funds provided under this heading shall be obli-
gated not later than September 30, 2011: Provided further, That 
the Administrator of General Services is authorized to initiate 
design, construction, repair, alteration, and other projects through 
existing authorities of the Administrator: Provided further, That 
the General Services Administration shall submit a detailed plan, 
by project, regarding the use of funds made available in this Act 
to the Committees on Appropriations of the House of Representa-
tives and the Senate within 45 days of enactment of this Act, 
and shall provide notification to the Committees within 15 days 
prior to any changes regarding the use of these funds: Provided 
further, That, hereafter, the Administrator shall report to the 
Committees on the obligation of these funds on a quarterly basis 
beginning on June 30, 2009: Provided further, That of the amounts 
provided, $4,000,000 shall be transferred to and merged with 
‘‘Government-Wide Policy’’, for the Office of Federal High-Perform-
ance Green Buildings as authorized in the Energy Independence 
and Security Act of 2007 (Public Law 110–140): Provided further, 
That amounts provided under this heading that are savings or 
cannot be used for the activity for which originally obligated may 
Deadline. 
Notification. 
Reports. 
Deadlines. 
Plans. 
Deadlines. 
Notification. 
Deadlines. 
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123 STAT. 150 
PUBLIC LAW 111–5—FEB. 17, 2009 
be deobligated and, notwithstanding any other provision of law, 
reobligated for the purposes identified in the plan required under 
this heading not less than 15 days after notification has been 
provided to the Committees on Appropriations of the House of 
Representatives and the Senate. 
ENERGY-EFFICIENT FEDERAL MOTOR VEHICLE FLEET PROCUREMENT 
For capital expenditures and necessary expenses of acquiring 
motor vehicles with higher fuel economy, including: hybrid vehicles; 
electric 
vehicles; 
and 
commercially-available, 
plug-in 
hybrid 
vehicles, $300,000,000, to remain available until September 30, 
2011: Provided, That none of these funds may be obligated until 
the Administrator of General Services submits to the Committees 
on Appropriations of the House of Representatives and the Senate, 
within 90 days after enactment of this Act, a plan for expenditure 
of the funds that details the current inventory of the Federal 
fleet owned by the General Services Administration, as well as 
other Federal agencies, and the strategy to expend these funds 
to replace a portion of the Federal fleet with the goal of substantially 
increasing energy efficiency over the current status, including 
increasing fuel efficiency and reducing emissions: Provided further, 
That, hereafter, the Administrator shall report to the Committees 
on the obligation of these funds on a quarterly basis beginning 
on September 30, 2009. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the Office of the Inspector Gen-
eral, to remain available until September 30, 2013, for oversight 
and audit of programs, grants, and projects funded under this 
title, $7,000,000. 
RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY 
BOARD 
For necessary expenses of the Recovery Act Accountability and 
Transparency Board to carry out the provisions of title XV of 
this Act, $84,000,000, to remain available until September 30, 2011. 
SMALL BUSINESS ADMINISTRATION 
SALARIES AND EXPENSES 
For an additional amount, to remain available until September 
30, 2010, $69,000,000, of which $24,000,000 is for marketing, 
management, and technical assistance under section 7(m) of the 
Small Business Act (15 U.S.C. 636(m)(4)) by intermediaries that 
make microloans under the microloan program, and of which 
$20,000,000 is for improving, streamlining, and automating 
information technology systems related to lender processes and 
lender oversight: Provided, That no later than 60 days after the 
date of enactment of this Act, the Small Business Administration 
shall submit to the Committees on Appropriations of the House 
of Representatives and the Senate a detailed expenditure plan 
for funds provided under the heading ‘‘Small Business Administra-
tion’’ in this Act. 
Deadline. 
Expenditure 
plan. 
Reports. 
Deadlines. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 151 
PUBLIC LAW 111–5—FEB. 17, 2009 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, $10,000,000, to remain available until September 30, 2013, 
for oversight and audit of programs, grants, and projects funded 
under this title. 
SURETY BOND GUARANTEES REVOLVING FUND 
For additional capital for the Surety Bond Guarantees 
Revolving Fund, authorized by the Small Business Investment Act 
of 1958, $15,000,000, to remain available until expended. 
BUSINESS LOANS PROGRAM ACCOUNT 
For an additional amount for the cost of direct loans, 
$6,000,000, to remain available until September 30, 2010, and 
for an additional amount for the cost of guaranteed loans, 
$630,000,000, to remain available until September 30, 2010: Pro-
vided, That of the amount for the cost of guaranteed loans, 
$375,000,000 shall be for reimbursements, loan subsidies and loan 
modifications for loans to small business concerns authorized in 
section 501 of this title; and $255,000,000 shall be for loan subsidies 
and loan modifications for loans to small business concerns author-
ized in section 506 of this title: Provided further, That such costs, 
including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974. 
ADMINISTRATIVE PROVISIONS—SMALL BUSINESS ADMINISTRATION 
SEC. 501. FEE REDUCTIONS. (a) ADMINISTRATIVE PROVISIONS 
SMALL BUSINESS ADMINISTRATION.—Until September 30, 2010, and 
to the extent that the cost of such elimination or reduction of 
fees is offset by appropriations, with respect to each loan guaranteed 
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
and section 502 of this title, for which the application is approved 
on or after the date of enactment of this Act, the Administrator 
shall— 
(1) in lieu of the fee otherwise applicable under section 
7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), 
collect no fee or reduce fees to the maximum extent possible; 
and 
(2) in lieu of the fee otherwise applicable under section 
7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), 
collect no fee or reduce fees to the maximum extent possible. 
(b) TEMPORARY FEE ELIMINATION
FOR
THE 504 LOAN PRO-
GRAM.— 
(1) IN GENERAL.—Until September 30, 2010, and to the 
extent the cost of such elimination in fees is offset by appropria-
tions, with respect to each project or loan guaranteed by the 
Administrator pursuant to title V of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 695 et seq.) for which an application 
is approved or pending approval on or after the date of enact-
ment of this Act— 
(A) the Administrator shall, in lieu of the fee otherwise 
applicable under section 503(d)(2) of the Small Business 
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123 STAT. 152 
PUBLIC LAW 111–5—FEB. 17, 2009 
Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no 
fee; 
(B) a development company shall, in lieu of the proc-
essing fee under section 120.971(a)(1) of title 13, Code 
of Federal Regulations (relating to fees paid by borrowers), 
or any successor thereto, collect no fee. 
(2) REIMBURSEMENT FOR WAIVED FEES.— 
(A) IN GENERAL.—To the extent that the cost of such 
payments is offset by appropriations, the Administrator 
shall reimburse each development company that does not 
collect a processing fee pursuant to paragraph (1)(B). 
(B) AMOUNT.—The payment to a development company 
under subparagraph (A) shall be in an amount equal to 
1.5 percent of the net debenture proceeds for which the 
development company does not collect a processing fee 
pursuant to paragraph (1)(B). 
(c) APPLICATION OF FEE ELIMINATIONS.— 
(1) To the extent that amounts are made available to 
the Administrator for the purpose of fee eliminations or reduc-
tions under subsection (a), the Administrator shall— 
(A) first use any amounts provided to eliminate or 
reduce fees paid by small business borrowers under clauses 
(i) through (iii) of paragraph (18)(A), to the maximum 
extent possible; and 
(B) then use any amounts provided to eliminate or 
reduce fees under paragraph (23)(A) paid by small business 
lenders with assets less than $1,000,000,000 as of the 
date of enactment; and 
(C) then use any remaining amounts appropriated 
under this title to reduce fees paid by small business 
lenders 
other 
than 
those 
with 
assets 
less 
than 
$1,000,000,000. 
(2) The Administrator shall eliminate fees under sub-
sections (a) and (b) until the amount provided for such purposes, 
as applicable, under the heading ‘‘Business Loans Program 
Account’’ under the heading ‘‘Small Business Administration’’ 
under this Act are expended. 
SEC. 502. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL 
BUSINESSES. (a) PURPOSE.—The purpose of this section is to permit 
the Small Business Administration to guarantee up to 90 percent 
of qualifying small business loans made by eligible lenders. 
(b) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Administrator’’ means the Administrator of 
the Small Business Administration. 
(2) The term ‘‘qualifying small business loan’’ means any 
loan to a small business concern pursuant to section 7(a) of 
the Small Business Act (15 U.S.C. 636) or title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 and following) 
except for such loans made under section 7(a)(31). 
(3) The term ‘‘small business concern’’ has the same 
meaning as provided by section 3 of the Small Business Act 
(15 U.S.C. 632). 
(c) QUALIFIED BORROWERS.— 
(1) ALIENS UNLAWFULLY PRESENT IN THE UNITED STATES.— 
A loan guarantee may not be made under this section for 
a loan made to a concern if an individual who is an alien 
unlawfully present in the United States— 
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123 STAT. 153 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) has an ownership interest in that concern; or 
(B) has an ownership interest in another concern that 
itself has an ownership interest in that concern. 
(2) FIRMS IN VIOLATION OF IMMIGRATION LAWS.—No loan 
guarantee may be made under this section for a loan to any 
entity found, based on a determination by the Secretary of 
Homeland Security or the Attorney General to have engaged 
in a pattern or practice of hiring, recruiting or referring for 
a fee, for employment in the United States an alien knowing 
the person is an unauthorized alien. 
(d) CRIMINAL BACKGROUND CHECKS.—Prior to the approval of 
any loan guarantee under this section, the Administrator may verify 
the applicant’s criminal background, or lack thereof, through the 
best available means, including, if possible, use of the National 
Crime Information Center computer system at the Federal Bureau 
of Investigation. 
(e) APPLICATION OF OTHER LAW.—Nothing in this section shall 
be construed to exempt any activity of the Administrator under 
this section from the Federal Credit Reform Act of 1990 (title 
V of the Congressional Budget and Impoundment Control Act of 
1974; 2 U.S.C. 661 and following). 
(f) SUNSET.—Loan guarantees may not be issued under this 
section after the date 12 months after the date of enactment of 
this Act. 
(g) SMALL BUSINESS ACT PROVISIONS.—The provisions of the 
Small Business Act applicable to loan guarantees under section 
7 of that Act and regulations promulgated thereunder as of the 
date of enactment of this Act shall apply to loan guarantees under 
this section except as otherwise provided in this section. 
(h) AUTHORIZATION.—There are authorized to be appropriated 
such sums as may be necessary to carry out this section. 
SEC. 503. ESTABLISHMENT OF SBA SECONDARY MARKET GUAR-
ANTEE AUTHORITY. (a) PURPOSE.—The purpose of this section is 
to provide the Administrator with the authority to establish the 
SBA Secondary Market Guarantee Authority within the SBA to 
provide a Federal guarantee for pools of first lien 504 loans that 
are to be sold to third-party investors. 
(b) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Administrator’’ means the Administrator of 
the Small Business Administration. 
(2) The term ‘‘first lien position 504 loan’’ means the first 
mortgage position, non-federally guaranteed loans made by pri-
vate sector lenders made under title V of the Small Business 
Investment Act. 
(c) ESTABLISHMENT OF AUTHORITY.— 
(1) ORGANIZATION.— 
(A) The Administrator shall establish a Secondary 
Market Guarantee Authority within the Small Business 
Administration. 
(B) The Administrator shall appoint a Director of the 
Authority who shall report to the Administrator. 
(C) The Administrator is authorized to hire such per-
sonnel as are necessary to operate the Authority and may 
contract such operations of the Authority as necessary to 
qualified third party companies or individuals. 
Applicability. 
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123 STAT. 154 
PUBLIC LAW 111–5—FEB. 17, 2009 
(D) The Administrator is authorized to contract with 
private sector fiduciary and custom dial agents as necessary 
to operate the Authority. 
(2) GUARANTEE PROCESS.— 
(A) The Administrator shall establish, by rule, a 
process in which private sector entities may apply to the 
Administration for a Federal guarantee on pools of first 
lien position 504 loans that are to be sold to third-party 
investors. 
(B) The Administrator is authorized to contract with 
private sector fiduciary and custom dial agents as necessary 
to operate the Authority. 
(3) RESPONSIBILITIES.— 
(A) The Administrator shall establish, by rule, a 
process in which private sector entities may apply to the 
SBA for a Federal guarantee on pools of first lien position 
504 loans that are to be sold to third-party investors. 
(B) The rule under this section shall provide for a 
process for the Administrator to consider and make 
decisions regarding whether to extend a Federal guarantee 
referred to in clause (i). Such rule shall also provide that: 
(i) The seller of the pools purchasing a guarantee 
under this section retains not less than 5 percent of 
the dollar amount of the pools to be sold to third- 
party investors. 
(ii) The Administrator shall charge fees, upfront 
or annual, at a specified percentage of the loan amount 
that is at such a rate that the cost of the program 
under the Federal Credit Reform Act of 1990 (title 
V of the Congressional Budget and Impoundment Con-
trol Act of 1974; 2 U.S.C. 661) shall be equal to zero. 
(iii) The Administrator may guarantee not more 
than $3,000,000,000 of pools under this authority. 
(C) The Administrator shall establish documents, legal 
covenants, and other required documentation to protect 
the interests of the United States. 
(D) The Administrator shall establish a process to 
receive and disburse funds to entities under the authority 
established in this section. 
(d) LIMITATIONS.— 
(1) The Administrator shall ensure that entities purchasing 
a guarantee under this section are using such guarantee for 
the purpose of selling 504 first lien position pools to third- 
party investors. 
(2) If the Administrator finds that any such guarantee 
was used for a purpose other than that specified in paragraph 
(1), the Administrator shall— 
(A) prohibit the purchaser of the guarantee or its affili-
ates (within the meaning of the regulations under 13 CFR 
121.103) from using the authority of this section in the 
future; and 
(B) take any other actions the Administrator, in con-
sultation with the Attorney General of the United States 
deems appropriate. 
(e) OVERSIGHT.—The Administrator shall submit a report to 
Congress not later than the third business day of each month 
setting forth each of the following: 
Reports. 
Deadlines. 
Regulations. 
Regulations. 
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123 STAT. 155 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) The aggregate amount of guarantees extended under 
this section during the preceding month. 
(2) The aggregate amount of guarantees outstanding. 
(3) Defaults and payments on defaults made under this 
section. 
(4) The identity of each purchaser of a guarantee found 
by the Administrator to have misused guarantees under this 
section. 
(5) Any other information the Administrator deems nec-
essary to fully inform Congress of undue risk to the United 
States associated with the issuance of guarantees under this 
section. 
(f) DURATION OF PROGRAM.—The authority of this section shall 
terminate on the date 2 years after the date of enactment of 
this section. 
(g) FUNDING.—Such sums as necessary are authorized to be 
appropriated to carry out the provisions of this section. 
(h) BUDGET TREATMENT.—Nothing in this section shall be con-
strued to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990 (title V of 
the Congressional Budget and Impoundment Control Act of 1974; 
2 U.S.C. 661 and following). 
(i) EMERGENCY RULEMAKING AUTHORITY.—The Administrator 
shall issue regulations under this section within 15 days after 
the date of enactment of this section. The notice requirements 
of section 553(b) of title 5, United States Code shall not apply 
to the promulgation of such regulations. 
SEC. 504. STIMULUS FOR COMMUNITY DEVELOPMENT LENDING. 
(a) LOW INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT 
BUSINESS LOAN PROGRAM.—Section 502 of the Small Business 
Investment Act of 1958 (15 U.S.C. 696) is amended by adding 
at the end the following: 
‘‘(7) PERMISSIBLE DEBT REFINANCING.— 
‘‘(A) IN GENERAL.—Any financing approved under this 
title may include a limited amount of debt refinancing. 
‘‘(B) EXPANSIONS.—If the project involves expansion 
of a small business concern, any amount of existing indebt-
edness that does not exceed 50 percent of the project cost 
of the expansion may be refinanced and added to the expan-
sion cost, if— 
‘‘(i) the proceeds of the indebtedness were used 
to acquire land, including a building situated thereon, 
to construct a building thereon, or to purchase equip-
ment; 
‘‘(ii) the existing indebtedness is collateralized by 
fixed assets; 
‘‘(iii) the existing indebtedness was incurred for 
the benefit of the small business concern; 
‘‘(iv) the financing under this title will be used 
only for refinancing existing indebtedness or costs 
relating to the project financed under this title; 
‘‘(v) the financing under this title will provide a 
substantial benefit to the borrower when prepayment 
penalties, financing fees, and other financing costs are 
accounted for; 
Deadlines. 
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123 STAT. 156 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(vi) the borrower has been current on all pay-
ments due on the existing debt for not less than 1 
year preceding the date of refinancing; and 
‘‘(vii) the financing under section 504 will provide 
better terms or rate of interest than the existing 
indebtedness at the time of refinancing.’’. 
(b) JOB
CREATION
GOALS.—Section 501(e)(1) and section 
501(e)(2) of the Small Business Investment Act (15 U.S.C. 695) 
are each amended by striking ‘‘$50,000’’ and inserting ‘‘$65,000’’. 
SEC. 505. INCREASING SMALL BUSINESS INVESTMENT. (a) SIM-
PLIFIED MAXIMUM LEVERAGE LIMITS.—Section 303(b) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended 
as follows: 
(1) By striking so much of paragraph (2) as precedes sub-
paragraphs (C) and (D) and inserting the following: 
‘‘(2) MAXIMUM LEVERAGE.— 
‘‘(A) IN
GENERAL.—The maximum amount of out-
standing leverage made available to any one company 
licensed under section 301(c) of this Act may not exceed 
the lesser of— 
‘‘(i) 300 percent of such company’s private capital; 
or 
‘‘(ii) $150,000,000. 
‘‘(B) MULTIPLE LICENSES UNDER COMMON CONTROL.— 
The maximum amount of outstanding leverage made avail-
able to two or more companies licensed under section 301(c) 
of this Act that are commonly controlled (as determined 
by the Administrator) and not under capital impairment 
may not exceed $225,000,000.’’; 
(2) By amending paragraph (2)(C) by inserting ‘‘(i)’’ before 
‘‘In calculating’’ and adding the following at the end thereof: 
‘‘(ii) The maximum amount of outstanding leverage 
made available to— 
‘‘(I) any 1 company described in clause (iii) 
may not exceed the lesser of 300 percent of private 
capital of the company, or $175,000,000; and 
‘‘(II) 2 or more companies described in clause 
(iii) that are under common control (as determined 
by 
the 
Administrator) 
may 
not 
exceed 
$250,000,000. 
‘‘(iii) A company described in this clause is a com-
pany licensed under section 301(c) in the first fiscal 
year after the date of enactment of this clause or 
any fiscal year thereafter that certifies in writing that 
not less than 50 percent of the dollar amount of invest-
ments of that company shall be made in companies 
that are located in a low-income geographic area (as 
that term is defined in section 351).’’. 
(3) By striking paragraph (4). 
(b) SIMPLIFIED AGGREGATE INVESTMENT LIMITATIONS.—Section 
306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 
686(a)) is amended to read as follows: 
‘‘(a) PERCENTAGE LIMITATION
ON PRIVATE CAPITAL.—If any 
small business investment company has obtained financing from 
the Administrator and such financing remains outstanding, the 
aggregate amount of securities acquired and for which commitments 
may be issued by such company under the provisions of this title 
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123 STAT. 157 
PUBLIC LAW 111–5—FEB. 17, 2009 
for any single enterprise shall not, without the approval of the 
Administrator, exceed 10 percent of the sum of— 
‘‘(1) the private capital of such company; and 
‘‘(2) the total amount of leverage projected by the company 
in the company’s business plan that was approved by the 
Administrator at the time of the grant of the company’s 
license.’’. 
(c) INVESTMENTS IN SMALLER ENTERPRISES.—Section 303(d) of 
the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) 
is amended to read as follows: 
‘‘(d) INVESTMENTS
IN SMALLER ENTERPRISES.—The Adminis-
trator shall require each licensee, as a condition of approval of 
an application for leverage, to certify in writing that not less than 
25 percent of the aggregate dollar amount of financings of that 
licensee shall be provided to smaller enterprises.’’. 
SEC. 506. BUSINESS STABILIZATION PROGRAM. (a) IN GENERAL.— 
Subject to the availability of appropriations, the Administrator of 
the Small Business Administration shall carry out a program to 
provide loans on a deferred basis to viable (as such term is deter-
mined pursuant to regulation by the Administrator of the Small 
Business Administration) small business concerns that have a quali-
fying small business loan and are experiencing immediate financial 
hardship. 
(b) ELIGIBLE BORROWER.—A small business concern as defined 
under section 3 of the Small Business Act (15 U.S.C. 632). 
(c) QUALIFYING SMALL BUSINESS LOAN.—A loan made to a 
small business concern that meets the eligibility standards in sec-
tion 7(a) of the Small Business Act (15 U.S.C. 636(a)) but shall 
not include loans guarantees (or loan guarantee commitments made) 
by the Administrator prior to the date of enactment of this Act. 
(d) LOAN SIZE.—Loans guaranteed under this section may not 
exceed $35,000. 
(e) PURPOSE.—Loans guaranteed under this program shall be 
used to make periodic payment of principal and interest, either 
in full or in part, on an existing qualifying small business loan 
for a period of time not to exceed 6 months. 
(f) LOAN TERMS.—Loans made under this section shall: 
(1) carry a 100 percent guaranty; and 
(2) have interest fully subsidized for the period of repay-
ment. 
(g) REPAYMENT.—Repayment for loans made under this section 
shall— 
(1) be amortized over a period of time not to exceed 5 
years; and 
(2) not begin until 12 months after the final disbursement 
of funds is made. 
(h) COLLATERAL.—The Administrator of the Small Business 
Administration may accept any available collateral, including 
subordinated liens, to secure loans made under this section. 
(i) FEES.—The Administrator of the Small Business Administra-
tion is prohibited from charging any processing fees, origination 
fees, application fees, points, brokerage fees, bonus points, prepay-
ment penalties, and other fees that could be charged to a loan 
applicant for loans under this section. 
(j) SUNSET.—The Administrator of the Small Business Adminis-
tration shall not issue loan guarantees under this section after 
September 30, 2010. 
Effective date. 
Certification. 
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123 STAT. 158 
PUBLIC LAW 111–5—FEB. 17, 2009 
(k) EMERGENCY RULEMAKING AUTHORITY.—The Administrator 
of the Small Business Administration shall issue regulations under 
this section within 15 days after the date of enactment of this 
section. The notice requirements of section 553(b) of title 5, United 
States Code shall not apply to the promulgation of such regulations. 
SEC. 507. GAO REPORT. 
(a) REPORT.—Not later than 60 days after the enactment of 
this Act, the Comptroller General of the United States shall report 
to the Congress on the actions of the Administrator in implementing 
the authorities established in the administrative provisions of this 
title. 
(b) INCLUDED ITEM.—The report under this section shall include 
a summary of the activity of the Administrator under this title 
and an analysis of whether he is accomplishing the purpose of 
increasing liquidity in the secondary market for Small Business 
Administration loans. 
SEC. 508. SURETY BONDS. 
(a) MAXIMUM BOND AMOUNT.— Section 411(a)(1) of the Small 
Business Investment Act
of 1958 (15 U.S.C. 694b(a)(1)) is 
amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
(2) by striking ‘‘$2,000,000’’ and inserting ‘‘$5,000,000’’; and 
(3) by adding at the end the following: 
‘‘(B) The Administrator may guarantee a surety under 
subparagraph (A) for a total work order or contract amount that 
does not exceed $10,000,000, if a contracting officer of a Federal 
agency certifies that such a guarantee is necessary.’’.
(b) DENIAL OF LIABILITY— 
Section 411 of the Small Business Investment Act of 1958 
(15 U.S.C. 694b) is amended— 
(1) by striking subsection (e) and inserting the following: 
‘‘(e) REIMBURSEMENT OF SURETY; CONDITIONS.— 
Pursuant to any such guarantee or agreement, the Administration 
shall reimburse the surety , as provided in subsection (c) of this 
section, except that the Administration shall be relieved of liability 
(in whole or in part within the discretion of the Administration) 
if— 
(1) the surety obtained such guarantee or agreement, or 
applied for such reinbursement, by fraud or material misrepre-
sentation, 
(2) the total contract amount at the time of execution 
of the bond or bonds exceeds $5,000,000, 
(3) the surety has breached a material term or condition 
of such guarantee agreement, or 
(4) the surety has substantially violated the regulations 
promulgated by the Administration pursuant to subsection (d).’’ 
(2) by adding at the end the following: 
‘‘(k) For bonds made or executed with the prior approval of 
the Administration, the Administration shall not deny liability to 
a surety based upon material information that was provided as 
part of the guaranty application.’’. 
(c) SIZE STANDARDS.—Section 410 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 694a) is amended by adding at the 
end the following: 
‘‘(9) Notwithstanding any other provision of law or any 
rule, regulation, or order of the Administration, for purposes 
Deadline. 
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123 STAT. 159 
PUBLIC LAW 111–5—FEB. 17, 2009 
of sections 410, 411, and 412 the term ‘small business concern’ 
means a business concern that meets the size standard for 
the primary industry in which such business concern, and 
the affiliates of such business concern, is engaged, as deter-
mined by the Administrator in accordance with the North Amer-
ican Industry Classification System.’’. 
(d) STUDY—The Administrator of the Small Business Adminis-
tration shall conduct a study of the current funding structure of 
the surety bond program carried out under part B (15 U.S.C. 
694a et seq.) of title IV of the Small Business Investment Act 
of 1958. The study shall include-- 
(1) an assessment of whether the program’s current funding 
framework and program fees are inhibiting the program’s 
growth; 
(2) an assessment of whether surety companies and small 
business concerns could benefit from an alternative funding 
structure; and 
(e) REPORT—Not later than 180 days after the date of enact-
ment of this Act, the Administrator shall submit to Congress a 
report on the results of the study required under subsection (d). 
(f) SUNSET.—The amendments made by this section shall 
remain in effect until September 30, 2010. 
SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING 
AUTHORITY. 
(a) PURPOSE.—The purpose of this section is to provide the 
Small Business Administration with the authority to establish a 
Secondary Market Lending Authority within the SBA to make 
loans to the systemically important SBA secondary market broker- 
dealers who operate the SBA secondary market. 
(b) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Administrator’’ means the Administrator of 
the SBA. 
(2) The term ‘‘SBA’’ means the Small Business Administra-
tion. 
(3) The terms ‘‘Secondary Market Lending Authority’’ and 
‘‘Authority’’ mean the office establishedunder subsection (c). 
(4) The term ‘‘SBA secondary market’’ meansthe market 
for the purchase and sale of loans originated, underwritten, 
and closed under the Small Business Act. 
(5) The term ‘‘Systemically Important Secondary Market 
Broker-Dealers’’ mean those entities designated under sub-
section (c)(1) as vital to the continued operation of the SBA 
secondary market by reason of their purchase and sale of 
the government guaranteed portion of loans, or pools of 
loans,originated, underwritten, and closed under the Small 
Business Act. 
(c) RESPONSIBILITIES, AUTHORITIES, ORGANIZATION, AND LIMITA-
TIONS.— 
(1) DESIGNATION OF SYSTEMICALLY IMPORTANT SBA SEC-
ONDARY
MARKET
BROKER-DEALERS.—The Administrator shall 
establish a process to designate, in consultation with the Board 
of Governors of the Federal Reserve and the Secretary of the 
Treasury, Systemically Important Secondary Market Broker- 
Dealers. 
(2) ESTABLISHMENT OF SBA SECONDARY MARKET LENDING 
AUTHORITY.— 
15 USC 694a 
note. 
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123 STAT. 160 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) ORGANIZATION.— 
(i) The Administrator shall establish within the 
SBA an office to provide loans to Systemically Impor-
tant Secondary Market Broker-dealers to be used for 
the purpose of financing the inventory of the govern-
ment guaranteed portion of loans, originated, under-
written, and closed under the Small Business Act or 
pools of such loans. 
(ii) The Administrator shall appoint a Director of 
the Authority who shall report to the Administrator. 
(iii) The Administrator is authorized to hire such 
personnel as are necessary to operate the Authority. 
(iv) 
The 
Administrator 
may 
contract 
such 
Authority operations as he determines necessary to 
qualified third-party companies or individuals. 
(v) The Administrator is authorized to contract 
with private sector fiduciary and custodial agents as 
necessary to operate the Authority. 
(B) LOANS.— 
(i) The Administrator shall establish by rule a 
process under which Systemically Important SBA Sec-
ondary Market Broker-Dealers designated under para-
graph (1) may apply to the Administrator for loans 
under this section. 
(ii) The rule under clause (i) shall provide a process 
for the Administrator to consider and make decisions 
regarding whether or not to extend a loan applied 
for under this section. Such rule shall include provi-
sions to assure each of the following: 
(I) That loans made under this section are 
for the sole purpose of financing the inventory 
of the govern ment guaranteed portion of loans, 
originated, underwritten, and closed under the 
Small Business Act or pools of such loans. 
(II) That loans made under this section are 
fully collateralized to the satisfaction of the 
Administrator. 
(III) That there is no limit to the frequency 
in which a borrower may borrow under this section 
unless the Administrator determines that doing 
so would create an undue risk of loss to the agency 
or the United States. 
(IV) That there is no limit on the size of a 
loan, subject to the discretion of the Administrator. 
(iii) Interest on loans under this section shall not 
exceed the Federal Funds target rate as established 
by the Federal Reserve Board of Governors plus 25 
basis points. 
(iv) The rule under this section shall provide for 
such loan documents, legal covenants, collateral 
requirements and other required documentation as nec-
essary to protect the interests of the agency, the United 
States, and the taxpayer. 
(v) The Administrator shall establish custodial 
accounts to safeguard any collateral pledged to the 
SBA in connection with a loan under this section. 
Regulations. 
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123 STAT. 161 
PUBLIC LAW 111–5—FEB. 17, 2009 
(vi) The Administrator shall establish a process 
to disburse and receive funds to and from borrowers 
under this section. 
(C) LIMITATIONS ON USE OF LOAN PROCEEDS BY SYSTEMICALLY 
IMPORTANT SECONDARY MARKET BROKER-DEALERS.—The Adminis-
trator shall ensure that borrowers under this section are using 
funds provided under this section only for the purpose specified 
in subparagraph (B)(ii)(I). If the Administrator finds that such 
funds were used for any other purpose, the Administrator shall— 
(i) require immediate repayment of outstanding loans; 
(ii) prohibit the borrower, its affiliates, or any future cor-
porate manifestation of the borrower from using the Authority; 
and 
(iii) take any other actions the Administrator, in consulta-
tion with the Attorney General of the United States, 
deemsappropriate. 
(d) REPORT
TO CONGRESS.—The Administrator shall submit 
a report to Congress not later than the third business day of 
each month containing a statement of each of the following: 
(1) The aggregate loan amounts extended during the pre-
ceding month under this section. 
(2) The aggregate loan amounts repaid under this section 
during the proceeding month. 
(3) The aggregate loan amount outstanding under this sec-
tion. 
(4) The aggregate value of assets held as collateral under 
this section; 
(5) The amount of any defaults or delinquencies on loans 
made under this section. 
(6) The identity of any borrower found by the Administrator 
to misuse funds made available under this section. 
(7) Any other information the Administrator deems nec-
essary to fully inform Congress of undue risk of financial loss 
to the United States in connection with loans made under 
this section. 
(e) DURATION.—The authority of this section shall remain in 
effect for a period of 2 years after the date of enactment of this 
section. 
(f) FEES.—The Administrator shall charge fees, up front, 
annual, or both at a specified percentage of the loan amount that 
is at such a rate that the cost of the program under the Federal 
Credit Reform Act of 1990 ((title V of the Congressional Budget 
and Impoundment Control Act of 1974; 2 U.S.C. 661) shall be 
equal to zero. 
(h) BUDGET TREATMENT.—Nothing in this section shall be con-
strued to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990 (title V of 
the Congressional Budget and Im poundment Control Act of 1974; 
2 U.S.C. 661 and following). 
(i) EMERGENCY RULEMAKING AUTHORITY.—The Administrator 
shall promulgate regulations under this section within 30 days 
after the date of enactment of enactment of this section. In promul-
gating these regulations,the Administrator the notice requirements 
of section 553(b) of title 5 of the United States Code shall not 
apply. 
Deadline. 
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123 STAT. 162 
PUBLIC LAW 111–5—FEB. 17, 2009 
TITLE VI—DEPARTMENT OF HOMELAND SECURITY 
OFFICE OF THE UNDER SECRETARY FOR MANAGEMENT 
For an additional amount for the ‘‘Office of the Under Secretary 
for Management’’, $200,000,000 for planning, design, construction 
costs, site security, information technology infrastructure, fixtures, 
and related costs to consolidate the Department of Homeland Secu-
rity headquarters: Provided, That no later than 60 days after the 
date of enactment of this Act, the Secretary of Homeland Security, 
in consultation with the Administrator of General Services, shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for the expenditure of these 
funds. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of Inspector General’’, 
$5,000,000, to remain available until September 30, 2012, for over-
sight and audit of programs, grants, and projects funded under 
this title. 
U.S. CUSTOMS AND BORDER PROTECTION 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Salaries and Expenses’’, 
$160,000,000, of which $100,000,000 shall be for the procurement 
and deployment of non-intrusive inspection systems; and of which 
$60,000,000 shall be for procurement and deployment of tactical 
communications equipment and radios: Provided, That no later 
than 45 days after the date of enactment of this Act, the Secretary 
of Homeland Security shall submit to the Committees on Appropria-
tions of the Senate and the House of Representatives a plan for 
expenditure of these funds. 
BORDER SECURITY FENCING, INFRASTRUCTURE, AND TECHNOLOGY 
For an additional amount for ‘‘Border Security Fencing, Infra-
structure, and Technology’’, $100,000,000 for expedited development 
and deployment of border security technology on the Southwest 
border: Provided, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for expenditure of these funds. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, $420,000,000 
solely for planning, management, design, alteration, and construc-
tion of U.S. Customs and Border Protection owned land border 
ports of entry: Provided, That no later than 45 days after the 
date of enactment of this Act, the Secretary of Homeland Security 
shall submit to the Committees on Appropriations of the Senate 
and the House of Representatives a plan for expenditure of these 
funds. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 163 
PUBLIC LAW 111–5—FEB. 17, 2009 
U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT 
AUTOMATION MODERNIZATION 
For an additional amount for ‘‘Automation Modernization’’, 
$20,000,000 for the procurement and deployment of tactical commu-
nications equipment and radios: Provided, That no later than 45 
days after the date of enactment of this Act, the Secretary of 
Homeland Security shall submit to the Committees on Appropria-
tions of the Senate and the House of Representatives a plan for 
expenditure of these funds. 
TRANSPORTATION SECURITY ADMINISTRATION 
AVIATION SECURITY 
For 
an 
additional 
amount 
for 
‘‘Aviation 
Security’’, 
$1,000,000,000 for procurement and installation of checked baggage 
explosives detection systems and checkpoint explosives detection 
equipment: Provided, That the Assistant Secretary of Homeland 
Security (Transportation Security Administration) shall prioritize 
the award of these funds to accelerate the installations at locations 
with completed design plans: Provided further, That no later than 
45 days after the date of enactment of this Act, the Secretary 
of Homeland Security shall submit to the Committees on Appropria-
tions of the Senate and the House of Representatives a plan for 
the expenditure of these funds. 
COAST GUARD 
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS 
For an additional amount for ‘‘Acquisition, Construction, and 
Improvements’’, $98,000,000 for shore facilities and aids to naviga-
tion facilities; for priority procurements due to materials and labor 
cost increases; and for costs to repair, renovate, assess, or improve 
vessels: Provided, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and 
the House of Representatives a plan for the expenditure of these 
funds. 
ALTERATION OF BRIDGES 
For an additional amount for ‘‘Alteration of Bridges’’, 
$142,000,000 for alteration or removal of obstructive bridges, as 
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516): 
Provided, That the Coast Guard shall award these funds to those 
bridges that are ready to proceed to construction: Provided further, 
That no later than 45 days after the date of enactment of this 
Act, the Secretary of Homeland Security shall submit to the 
Committees on Appropriations of the Senate and the House of 
Representatives a plan for the expenditure of these funds. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 164 
PUBLIC LAW 111–5—FEB. 17, 2009 
FEDERAL EMERGENCY MANAGEMENT AGENCY 
STATE AND LOCAL PROGRAMS 
For an additional amount for grants, $300,000,000, to be allo-
cated as follows: 
(1) $150,000,000 for Public Transportation Security Assist-
ance and Railroad Security Assistance under sections 1406 
and 1513 of the Implementing Recommendations of the 9/11 
Commission Act of 2007 (Public Law 110–53; 6 U.S.C. 1135 
and 1163). 
(2) $150,000,000 for Port Security Grants in accordance 
with 46 U.S.C. 70107, notwithstanding 46 U.S.C. 70107(c). 
FIREFIGHTER ASSISTANCE GRANTS 
For an additional amount for competitive grants, $210,000,000 
for modifying, upgrading, or constructing non-Federal fire stations: 
Provided, That up to 5 percent shall be for program administration: 
Provided further, That no grant shall exceed $15,000,000. 
DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT 
Notwithstanding section 417(b) of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act, the amount of any 
such loan issued pursuant to this section for major disasters occur-
ring in calendar year 2008 may exceed $5,000,000, and may be 
equal to not more than 50 percent of the annual operating budget 
of the local government in any case in which that local government 
has suffered a loss of 25 percent or more in tax revenues: Provided, 
That the cost of modifying such loans shall be as defined in section 
502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a). 
EMERGENCY FOOD AND SHELTER 
For an additional amount to carry out the emergency food 
and shelter program pursuant to title III of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11331 et seq.), $100,000,000: 
Provided, That total administrative costs shall not exceed 3.5 per-
cent of the total amount made available under this heading. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 601. Notwithstanding any other provision of law, the 
President shall establish an arbitration panel under the Federal 
Emergency Management Agency public assistance program to expe-
dite the recovery efforts from Hurricanes Katrina and Rita within 
the Gulf Coast Region. The arbitration panel shall have sufficient 
authority regarding the award or denial of disputed public assist-
ance applications for covered hurricane damage under section 403, 
406, or 407 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170b, 5172, or 5173) for a project the 
total amount of which is more than $500,000. 
SEC. 602. The Administrator of the Federal Emergency Manage-
ment Agency may not prohibit or restrict the use of funds designated 
under the hazard mitigation grant program for damage caused 
by Hurricanes Katrina and Rita if the homeowner who is an 
applicant for assistance under such program commenced work 
President. 
Panel. 
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123 STAT. 165 
PUBLIC LAW 111–5—FEB. 17, 2009 
otherwise eligible for hazard mitigation grant program assistance 
under section 404 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170c) without approval in 
writing from the Administrator. 
SEC. 603. Subparagraph (E) of section 34(a)(1) of the Federal 
Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) 
shall not apply with respect to funds appropriated in this or any 
other Act making appropriations for fiscal year 2009 or 2010 for 
grants under such section 34. 
SEC. 604. (a) REQUIREMENT.—Except as provided in subsections 
(c) through (g), funds appropriated or otherwise available to the 
Department of Homeland Security may not be used for the procure-
ment of an item described in subsection (b) if the item is not 
grown, reprocessed, reused, or produced in the United States. 
(b) COVERED ITEMS.—An item referred to in subsection (a) 
is any of the following, if the item is directly related to the national 
security interests of the United States: 
(1) An article or item of— 
(A) clothing and the materials and components thereof, 
other than sensors, electronics, or other items added to, 
and not normally associated with, clothing (and the mate-
rials and components thereof); 
(B) tents, tarpaulins, covers, textile belts, bags, protec-
tive equipment (including but not limited to body armor), 
sleep systems, load carrying equipment (including but not 
limited to fieldpacks), textile marine equipment, para-
chutes, or bandages; 
(C) cotton and other natural fiber products, woven 
silk or woven silk blends, spun silk yarn for cartridge 
cloth, synthetic fabric or coated synthetic fabric (including 
all textile fibers and yarns that are for use in such fabrics), 
canvas products, or wool (whether in the form of fiber 
or yarn or contained in fabrics, materials, or manufactured 
articles); or 
(D) any item of individual equipment manufactured 
from or containing such fibers, yarns, fabrics, or materials. 
(c) AVAILABILITY EXCEPTION.—Subsection (a) does not apply 
to the extent that the Secretary of Homeland Security determines 
that satisfactory quality and sufficient quantity of any such article 
or item described in subsection (b)(1) grown, reprocessed, reused, 
or produced in the United States cannot be procured as and when 
needed at United States market prices. This section is not applicable 
to covered items that are, or include, materials determined to 
be non-available in accordance with Federal Acquisition Regulation 
25.104 Nonavailable Articles. 
(d) DE MINIMIS EXCEPTION.—Notwithstanding subsection (a), 
the Secretary of Homeland Security may accept delivery of an 
item covered by subsection (b) that contains non-compliant fibers 
if the total value of non-compliant fibers contained in the end 
item does not exceed 10 percent of the total purchase price of 
the end item. 
(e) EXCEPTION
FOR CERTAIN PROCUREMENTS OUTSIDE
THE 
UNITED STATES.—Subsection (a) does not apply to the following: 
(1) Procurements by vessels in foreign waters. 
(2) Emergency procurements. 
(f) EXCEPTION FOR SMALL PURCHASES.—Subsection (a) does not 
apply to purchases for amounts not greater than the simplified 
6 USC 453b. 
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123 STAT. 166 
PUBLIC LAW 111–5—FEB. 17, 2009 
acquisition threshold referred to in section 2304(g) of title 10, United 
States Code. 
(g) APPLICABILITY
TO
CONTRACTS
AND
SUBCONTRACTS
FOR 
PROCUREMENT OF COMMERCIAL ITEMS.—This section is applicable 
to contracts and subcontracts for the procurement of commercial 
items not withstanding section 34 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 430), with the exception of commercial 
items listed under subsections (b)(1)(C) and (b)(1)(D) above. For 
the purposes of this section, ‘‘commercial’’ shall be as defined in 
the Federal Acquisition Regulation—Part 2. 
(h) GEOGRAPHIC COVERAGE.—In this section, the term ‘‘United 
States’’ includes the possessions of the United States. 
(i) NOTIFICATION REQUIRED WITHIN 7 DAYS AFTER CONTRACT 
AWARD IF CERTAIN EXCEPTIONS APPLIED.—In the case of any con-
tract for the procurement of an item described in subsection (b)(1), 
if the Secretary of Homeland Security applies an exception set 
forth in subsection (c) with respect to that contract, the Secretary 
shall, not later than 7 days after the award of the contract, post 
a notification that the exception has been applied on the Internet 
site maintained by the General Services Administration known 
as FedBizOps.gov (or any successor site). 
(j) TRAINING DURING FISCAL YEAR 2009.— 
(1) IN GENERAL.—The Secretary of Homeland Security shall 
ensure that each member of the acquisition workforce in the 
Department of Homeland Security who participates personally 
and substantially in the acquisition of textiles on a regular 
basis receives training during fiscal year 2009 on the require-
ments of this section and the regulations implementing this 
section. 
(2) INCLUSION
OF
INFORMATION
IN
NEW
TRAINING
PRO-
GRAMS.—The Secretary shall ensure that any training program 
for the acquisition workforce developed or implemented after 
the date of the enactment of this Act includes comprehensive 
information on the requirements described in paragraph (1). 
(k) 
CONSISTENCY 
WITH 
INTERNATIONAL 
AGREE-
MENTS.— This section shall be applied in a manner consistent 
with United States obligations under international agreements. 
(l) EFFECTIVE DATE.—This section applies with respect to con-
tracts entered into by the Department of Homeland Security 180 
days after the date of the enactment of this Act. 
TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED 
AGENCIES 
DEPARTMENT OF THE INTERIOR 
BUREAU OF LAND MANAGEMENT 
MANAGEMENT OF LANDS AND RESOURCES 
For an additional amount for ‘‘Management of Lands and 
Resources’’, for activities on all Bureau of Land Management lands 
including maintenance, rehabilitation, and restoration of facilities, 
property, trails and lands and for remediation of abandoned mines 
and wells, $125,000,000. 
Applicability. 
Internet posting. 
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123 STAT. 167 
PUBLIC LAW 111–5—FEB. 17, 2009 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, for activities on 
all Bureau of Land Management lands including construction, 
reconstruction, decommissioning and repair of roads, bridges, trails, 
property, and facilities and for energy efficient retrofits of existing 
facilities, $180,000,000. 
WILDLAND FIRE MANAGEMENT 
For an additional amount for ‘‘Wildland Fire Management’’, 
for hazardous fuels reduction, $15,000,000. 
UNITED STATES FISH AND WILDLIFE SERVICE 
RESOURCE MANAGEMENT 
For an additional amount for ‘‘Resource Management’’, for 
deferred maintenance, construction, and capital improvement 
projects on national wildlife refuges and national fish hatcheries 
and for high priority habitat restoration projects, $165,000,000. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, for construction, 
reconstruction, and repair of roads, bridges, property, and facilities 
and for energy efficient retrofits of existing facilities, $115,000,000. 
NATIONAL PARK SERVICE 
OPERATION OF THE NATIONAL PARK SYSTEM 
For an additional amount for ‘‘Operation of the National Park 
System’’, for deferred maintenance of facilities and trails and for 
other critical repair and rehabilitation projects, $146,000,000. 
HISTORIC PRESERVATION FUND 
For an additional amount for ‘‘Historic Preservation Fund’’, 
for historic preservation projects at historically black colleges and 
universities as authorized by the Historic Preservation Fund Act 
of 1996 and the Omnibus Parks and Public Lands Act of 1996, 
$15,000,000: Provided, That any matching requirements otherwise 
required for such projects are waived. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, for repair and 
restoration of roads; construction of facilities, including energy effi-
cient retrofits of existing facilities; equipment replacement; 
preservation and repair of historical resources within the National 
Park System; cleanup of abandoned mine sites on park lands; 
and other critical infrastructure projects, $589,000,000. 
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123 STAT. 168 
PUBLIC LAW 111–5—FEB. 17, 2009 
UNITED STATES GEOLOGICAL SURVEY 
SURVEYS, INVESTIGATIONS, AND RESEARCH 
For an additional amount for ‘‘Surveys, Investigations, and 
Research’’, $140,000,000, for repair, construction and restoration 
of facilities; equipment replacement and upgrades including stream 
gages, and seismic and volcano monitoring systems; national map 
activities; and other critical deferred maintenance and improvement 
projects. 
BUREAU OF INDIAN AFFAIRS 
OPERATION OF INDIAN PROGRAMS 
For an additional amount for ‘‘Operation of Indian Programs’’, 
for workforce training programs and the housing improvement pro-
gram, $40,000,000. 
CONSTRUCTION 
For an additional amount for ‘‘Construction’’, for repair and 
restoration of roads; replacement school construction; school 
improvements and repairs; and detention center maintenance and 
repairs, $450,000,000: Provided, That section 1606 of this Act shall 
not apply to tribal contracts entered into by the Bureau of Indian 
Affairs with this appropriation. 
INDIAN GUARANTEED LOAN PROGRAM ACCOUNT 
For an additional amount for ‘‘Indian Guaranteed Loan Pro-
gram Account’’, $10,000,000. 
OFFICE OF INSPECTOR GENERAL 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Office of Inspector General’’, 
$15,000,000, to remain available until September 30, 2012. 
ENVIROMENTAL PROTECTION AGENCY 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$20,000,000, to remain available until September 30, 2012. 
HAZARDOUS SUBSTANCE SUPERFUND 
For an additional amount for ‘‘Hazardous Substance Super-
fund’’, $600,000,000, which shall be for the Superfund Remedial 
program: Provided, That the Administrator of the Environmental 
Protection Agency (Administrator) may retain up to 3 percent of 
the funds appropriated herein for management and oversight pur-
poses. 
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123 STAT. 169 
PUBLIC LAW 111–5—FEB. 17, 2009 
LEAKING UNDERGROUND STORAGE TANK TRUST FUND PROGRAM 
For an additional amount for ‘‘Leaking Underground Storage 
Tank Trust Fund Program’’, $200,000,000, which shall be for 
cleanup activities authorized by section 9003(h) of the Solid Waste 
Disposal Act: Provided, That none of these funds shall be subject 
to cost share requirements under section 9003(h)(7)(B) of such Act: 
Provided further, That the Administrator may retain up to 1.5 
percent of the funds appropriated herein for management and over-
sight purposes. 
STATE AND TRIBAL ASSISTANCE GRANTS 
(INCLUDING TRANSFERS OF FUNDS) 
For an additional amount for ‘‘State and Tribal Assistance 
Grants’’, $6,400,000,000, which shall be allocated as follows: 
(1) $4,000,000,000 shall be for capitalization grants for 
the Clean Water State Revolving Funds under title VI of the 
Federal Water Pollution Control Act and $2,000,000,000 shall 
be for capitalization grants under section 1452 of the Safe 
Drinking Water Act: Provided, That the Administrator may 
retain up to 1 percent of the funds appropriated herein for 
management and oversight purposes: Provided further, That 
funds appropriated herein shall not be subject to the matching 
or cost share requirements of sections 602(b)(2), 602(b)(3) or 
202 of the Federal Water Pollution Control Act nor the 
matching requirements of section 1452(e) of the Safe Drinking 
Water Act: Provided further, That the Administrator shall 
reallocate funds appropriated herein for the Clean and Drinking 
Water State Revolving Funds (Revolving Funds) where projects 
are not under contract or construction within 12 months of 
the date of enactment of this Act: Provided further, That not-
withstanding the priority rankings they would otherwise receive 
under each program, priority for funds appropriated herein 
shall be given to projects on a State priority list that are 
ready to proceed to construction within 12 months of the date 
of enactment of this Act: Provided further, That notwith-
standing the requirements of section 603(d) of the Federal 
Water Pollution Control Act or section 1452(f) of the Safe 
Drinking Water Act, for the funds appropriated herein, each 
State shall use not less than 50 percent of the amount of 
its capitalization grants to provide additional subsidization to 
eligible recipients in the form of forgiveness of principal, nega-
tive interest loans or grants or any combination of these: Pro-
vided further, That, to the extent there are sufficient eligible 
project applications, not less than 20 percent of the funds 
appropriated herein for the Revolving Funds shall be for 
projects to address green infrastructure, water or energy effi-
ciency improvements or other environmentally innovative 
activities: Provided further, That notwithstanding the limitation 
on amounts specified in section 518(c) of the Federal Water 
Pollution Control Act, up to 1.5 percent of the funds appro-
priated herein for the Clean Water State Revolving Funds 
may be reserved by the Administrator for tribal grants under 
section 518(c) of such Act: Provided further, That up to 4 
percent of the funds appropriated herein for tribal set-asides 
under the Revolving Funds may be transferred to the Indian 
Deadline. 
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123 STAT. 170 
PUBLIC LAW 111–5—FEB. 17, 2009 
Health Service to support management and oversight of tribal 
projects: Provided further, That none of the funds appropriated 
herein shall be available for the purchase of land or easements 
as authorized by section 603(c) of the Federal Water Pollution 
Control Act or for activities authorized by section 1452(k) of 
the Safe Drinking Water Act: Provided further, That notwith-
standing section 603(d)(2) of the Federal Water Pollution Con-
trol Act and section 1452(f)(2) of the Safe Drinking Water 
Act, funds may be used to buy, refinance or restructure the 
debt obligations of eligible recipients only where such debt 
was incurred on or after October 1, 2008; 
(2) $100,000,000 shall be to carry out Brownfields projects 
authorized by section 104(k) of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of 1980: 
Provided, That the Administrator may reserve up to 3.5 percent 
of the funds appropriated herein for management and oversight 
purposes: Provided further, That none of the funds appropriated 
herein shall be subject to cost share requirements under section 
104(k)(9)(B)(iii) of such Act; and 
(3) $300,000,000 shall be for Diesel Emission Reduction 
Act grants pursuant to title VII, subtitle G of the Energy 
Policy Act of 2005: Provided, That the Administrator may 
reserve up to 2 percent of the funds appropriated herein for 
management and oversight purposes: Provided further, That 
none of the funds appropriated herein for Diesel Emission 
Reduction Act grants shall be subject to the State Grant and 
Loan Program Matching Incentive provisions of section 793(c)(3) 
of such Act. 
ADMINISTRATIVE PROVISION, ENVIRONMENTAL PROTECTION AGENCY 
(INCLUDING TRANSFERS OF FUNDS) 
Funds made available to the Environmental Protection Agency 
by this Act for management and oversight purposes shall remain 
available until September 30, 2011, and may be transferred to 
the ‘‘Environmental Programs and Management’’ account as needed. 
DEPARTMENT OF AGRICULTURE 
FOREST SERVICE 
CAPITAL IMPROVEMENT AND MAINTENANCE 
For an additional amount for ‘‘Capital Improvement and 
Maintenance’’, $650,000,000, for priority road, bridge and trail 
maintenance and decommissioning, including related watershed res-
toration and ecosystem enhancement projects; facilities improve-
ment, maintenance and renovation; remediation of abandoned mine 
sites; and support costs necessary to carry out this work. 
WILDLAND FIRE MANAGEMENT 
For an additional amount for ‘‘Wildland Fire Management’’, 
$500,000,000, of which $250,000,000 is for hazardous fuels reduc-
tion, forest health protection, rehabilitation and hazard mitigation 
activities on Federal lands and of which $250,000,000 is for State 
and private forestry activities including hazardous fuels reduction, 
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123 STAT. 171 
PUBLIC LAW 111–5—FEB. 17, 2009 
forest health and ecosystem improvement activities on State and 
private lands using all authorities available to the Forest Service: 
Provided, That up to $50,000,000 of the total funding may be 
used to make wood-to-energy grants to promote increased utilization 
of biomass from Federal, State and private lands: Provided further, 
That funds provided for activities on State and private lands shall 
not be subject to matching or cost share requirements. 
DEPARTMENT OF HEALTH AND HUMAN SERVICES 
INDIAN HEALTH SERVICE 
INDIAN HEALTH SERVICES 
For an additional amount for ‘‘Indian Health Services’’, for 
health information technology activities, $85,000,000: Provided, 
That such funds may be used for both telehealth services develop-
ment and related infrastructure requirements that are typically 
funded through the ‘‘Indian Health Facilities’’ account: Provided 
further, That notwithstanding any other provision of law, health 
information technology funds provided within this title shall be 
allocated at the discretion of the Director of the Indian Health 
Service. 
INDIAN HEALTH FACILITIES 
For an additional amount for ‘‘Indian Health Facilities’’, for 
facilities construction projects, deferred maintenance and improve-
ment projects, the backlog of sanitation projects and the purchase 
of equipment, $415,000,000, of which $227,000,000 is provided 
within the health facilities construction activity for the completion 
of up to two facilities from the current priority list for which 
work has already been initiated: Provided, That for the purposes 
of this Act, spending caps included within the annual appropriation 
for ‘‘Indian Health Facilities’’ for the purchase of medical equipment 
shall not apply: Provided further, That section 1606 of this Act 
shall not apply to tribal contracts entered into by the Service 
with this appropriation. 
OTHER RELATED AGENCIES 
SMITHSONIAN INSTITUTION 
FACILITIES CAPITAL 
For an additional amount for ‘‘Facilities Capital’’, for repair 
and revitalization of existing facilities, $25,000,000. 
NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES 
NATIONAL ENDOWMENT FOR THE ARTS 
GRANTS AND ADMINISTRATION 
For an additional amount for ‘‘Grants and Administration’’, 
$50,000,000, to be distributed in direct grants to fund arts projects 
and activities which preserve jobs in the non-profit arts sector 
threatened by declines in philanthropic and other support during 
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123 STAT. 172 
PUBLIC LAW 111–5—FEB. 17, 2009 
the current economic downturn: Provided, That 40 percent of such 
funds shall be distributed to State arts agencies and regional arts 
organizations in a manner similar to the agency’s current practice 
and 60 percent of such funds shall be for competitively selected 
arts projects and activities according to sections 2 and 5(c) of 
the National Foundation on the Arts and Humanities Act of 1965 
(20 U.S.C. 951, 954(c)): Provided further, That matching require-
ments under section 5(e) of such Act shall be waived. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 701. (a) Within 30 days of enactment of this Act, each 
agency receiving funds under this title shall submit a general 
plan for the expenditure of such funds to the House and Senate 
Committees on Appropriations. 
(b) Within 90 days of enactment of this Act, each agency 
receiving funds under this title shall submit to the Committees 
a report containing detailed project level information associated 
with the general plan submitted pursuant to subsection (a). 
SEC. 702. In carrying out the work for which funds in this 
title are being made available, the Secretary of the Interior and 
the Secretary of Agriculture shall utilize, where practicable, the 
Public Lands Corps, Youth Conservation Corps, Student Conserva-
tion Association, Job Corps and other related partnerships with 
Federal, State, local, tribal or non-profit groups that serve young 
adults. 
SEC. 703. Each agency receiving funds under this title may 
transfer up to 10 percent of the funds in any account to other 
appropriation accounts within the agency, if the head of the agency 
(1) determines that the transfer will enhance the efficiency or 
effectiveness of the use of the funds without changing the intended 
purpose; and (2) notifies the Committees on Appropriations of the 
House of Representatives and the Senate 10 days prior to the 
transfer. 
TITLE 
VIII—DEPARTMENTS 
OF 
LABOR, 
HEALTH 
AND 
HUMAN SERVICES, AND EDUCATION, AND RELATED 
AGENCIES 
DEPARTMENT OF LABOR 
EMPLOYMENT AND TRAINING ADMINISTRATION 
TRAINING AND EMPLOYMENT SERVICES 
For an additional amount for ‘‘Training and Employment Serv-
ices’’ for activities under the Workforce Investment Act of 1998 
(‘‘WIA’’), $3,950,000,000, which shall be available for obligation 
on the date of enactment of this Act, as follows: 
(1) $500,000,000 for grants to the States for adult employ-
ment and training activities, including supportive services and 
needs-related payments described in section 134(e)(2) and (3) 
of the WIA: Provided, That a priority use of these funds shall 
be services to individuals described in 134(d)(4)(E) of the WIA; 
(2) $1,200,000,000 for grants to the States for youth activi-
ties, including summer employment for youth: Provided, That 
no portion of such funds shall be reserved to carry out section 
127(b)(1)(A) of the WIA: Provided further, That for purposes 
Grants. 
Notification. 
Deadline. 
Reports. 
Deadlines. 
Expenditure 
plan. 
Waiver authority. 
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123 STAT. 173 
PUBLIC LAW 111–5—FEB. 17, 2009 
of section 127(b)(1)(C)(iv) of the WIA, funds available for youth 
activities shall be allotted as if the total amount available 
for youth activities in the fiscal year does not exceed 
$1,000,000,000: Provided further, That with respect to the youth 
activities provided with such funds, section 101(13)(A) of the 
WIA shall be applied by substituting ‘‘age 24’’ for ‘‘age 21’’: 
Provided further, That the work readiness performance indi-
cator described in section 136(b)(2)(A)(ii)(I) of the WIA shall 
be the only measure of performance used to assess the effective-
ness of summer employment for youth provided with such 
funds; 
(3) $1,250,000,000 for grants to the States for dislocated 
worker employment and training activities; 
(4) $200,000,000 for the dislocated workers assistance 
national reserve; 
(5) $50,000,000 for YouthBuild activities: Provided, That 
for program years 2008 and 2009, the YouthBuild program 
may serve an individual who has dropped out of high school 
and re-enrolled in an alternative school, if that re-enrollment 
is part of a sequential service strategy; and 
(6) $750,000,000 for a program of competitive grants for 
worker training and placement in high growth and emerging 
industry sectors: Provided, That $500,000,000 shall be for 
research, labor exchange and job training projects that prepare 
workers for careers in energy efficiency and renewable energy 
as described in section 171(e)(1)(B) of the WIA: Provided fur-
ther, That in awarding grants from those funds not designated 
in the preceding proviso, the Secretary of Labor shall give 
priority to projects that prepare workers for careers in the 
health care sector: 
Provided, That funds made available in this paragraph shall remain 
available through June 30, 2010: Provided further, That a local 
board may award a contract to an institution of higher education 
or other eligible training provider if the local board determines 
that it would facilitate the training of multiple individuals in high- 
demand occupations, if such contract does not limit customer choice. 
COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS 
For an additional amount for ‘‘Community Service Employment 
for Older Americans’’ to carry out title V of the Older Americans 
Act of 1965, $120,000,000, which shall be available for obligation 
on the date of enactment of this Act and shall remain available 
through June 30, 2010: Provided, That funds shall be allotted 
within 30 days of such enactment to current grantees in proportion 
to their allotment in program year 2008: Provided further, That 
funds made available under this heading in this Act may, in accord-
ance with section 517(c) of the Older Americans Act of 1965, be 
recaptured and reobligated. 
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE 
OPERATIONS 
For an additional amount for ‘‘State Unemployment Insurance 
and Employment Service Operations’’ for grants to States in accord-
ance with section 6 of the Wagner-Peyser Act, $400,000,000, which 
may be expended from the Employment Security Administration 
Account in the Unemployment Trust Fund, and which shall be 
Deadline. 
Applicability. 
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123 STAT. 174 
PUBLIC LAW 111–5—FEB. 17, 2009 
available for obligation on the date of enactment of this Act: Pro-
vided, That such funds shall remain available to the States through 
September 30, 2010: Provided further, That $250,000,000 of such 
funds shall be used by States for reemployment services for 
unemployment insurance claimants (including the integrated 
Employment Service and Unemployment Insurance information 
technology required to identify and serve the needs of such claim-
ants): Provided further, That the Secretary of Labor shall establish 
planning and reporting procedures necessary to provide oversight 
of funds used for reemployment services. 
DEPARTMENTAL MANAGEMENT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Departmental Management’’, 
$80,000,000, for the enforcement of worker protection laws and 
regulations, oversight, and coordination activities related to the 
infrastructure and unemployment insurance investments in this 
Act: Provided, That the Secretary of Labor may transfer such sums 
as necessary to ‘‘Employment and Standards Administration’’, 
‘‘Employee Benefits Security Administration’’, ‘‘Occupational Safety 
and Health Administration’’, and ‘‘Employment and Training 
Administration—Program Administration’’ for enforcement, over-
sight, and coordination activities: Provided further, That prior to 
obligating any funds proposed to be transferred from this account, 
the Secretary shall provide to the Committees on Appropriations 
of the House of Representatives and the Senate an operating plan 
describing the planned uses of each amount proposed to be trans-
ferred. 
OFFICE OF JOB CORPS 
For an additional amount for ‘‘Office of Job Corps’’, 
$250,000,000, for construction, rehabilitation and acquisition of Job 
Corps Centers, which shall be available upon the date of enactment 
of this Act and remain available for obligation through June 30, 
2010: Provided, That section 1552(a) of title 31, United States 
Code shall not apply if funds are used for a multi-year lease 
agreement that will result in construction activities that can com-
mence within 120 days of enactment of this Act: Provided further, 
That notwithstanding section 3324(a) of title 31, United States 
Code, the funds used for an agreement under the preceding proviso 
may be used for advance, progress, and other payments: Provided 
further, That the Secretary of Labor may transfer up to 15 percent 
of such funds to meet the operational needs of such centers, which 
may include training for careers in the energy efficiency, renewable 
energy, and environmental protection industries: Provided further, 
That the Secretary shall provide to the Committees on Appropria-
tions of the House of Representatives and the Senate an operating 
plan describing the allocation of funds, and a report on the actual 
obligations, expenditures, and unobligated balances for each activity 
funded under this heading not later than September 30, 2009 
and quarterly thereafter as long as funding provided under this 
heading is available for obligation or expenditure. 
Operating plan. 
Reports. 
Deadlines. 
Operating plan. 
Procedures. 
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123 STAT. 175 
PUBLIC LAW 111–5—FEB. 17, 2009 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of Inspector General’’, 
$6,000,000, which shall remain available through September 30, 
2012, for salaries and expenses necessary for oversight and audit 
of programs, grants, and projects funded in this Act. 
DEPARTMENT OF HEALTH AND HUMAN SERVICES 
HEALTH RESOURCES AND SERVICES ADMINISTRATION 
HEALTH RESOURCES AND SERVICES 
For an additional amount for ‘‘Health Resources and Services’’, 
$2,500,000,000 which shall be used as follows: 
(1) $500,000,000 shall be for grants to health centers 
authorized under section 330 of the Public Health Service Act 
(‘‘PHS Act’’); 
(2) $1,500,000,000 shall be available for grants for construc-
tion, renovation and equipment, and for the acquisition of 
health information technology systems, for health centers 
including health center controlled networks receiving operating 
grants under section 330 of the PHS Act, notwithstanding 
the limitation in section 330(e)(3); and 
(3) $500,000,000 to address health professions workforce 
shortages, of which $75,000,000 for the National Health Service 
Corps shall remain available through September 30, 2011: Pro-
vided, That funds may be used to provide scholarships, loan 
repayment, and grants to training programs for equipment 
as authorized in the PHS Act, and grants authorized in sections 
330L, 747, 767 and 768 of the PHS Act: Provided further, 
That 20 percent of the funds allocated to the National Health 
Service Corps shall be used for field operations: 
Provided, That up to 0.5 percent of funds provided in this 
paragraph may used for administration of such funds: Provided 
further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate 
an operating plan detailing activities to be supported and timelines 
for expenditure prior to making any Federal obligations of funds 
provided in this paragraph but not later than 90 days after the 
date of enactment of this Act: Provided further, That the Secretary 
shall provide to the Committees on Appropriations of the House 
of Representatives and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each activity funded 
in this paragraph not later than November 1, 2009 and every 
6 months thereafter as long as funding provided in this paragraph 
is available for obligation or expenditure. 
NATIONAL INSTITUTES OF HEALTH 
NATIONAL CENTER FOR RESEARCH RESOURCES 
For an additional amount for ‘‘National Center for Research 
Resources’’, $1,300,000,000, of which $1,000,000,000 shall be for 
grants or contracts under section 481A of the Public Health Service 
Act to construct, renovate or repair existing non-Federal research 
facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1), 
(3), and (4) of section 481A(e), and section 481B of such Act shall 
Grants. 
Contracts. 
Reports. 
Deadlines. 
Operating plan. 
Deadline. 
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123 STAT. 176 
PUBLIC LAW 111–5—FEB. 17, 2009 
not apply to the use of such funds: Provided further, That the 
references to ‘‘20 years’’ in subsections (c)(1)(B)(i) and (f) of section 
481A of such Act are deemed to be references to ‘‘10 years’’ for 
purposes of using such funds: Provided further, That the National 
Center for Research Resources may also use $300,000,000 to pro-
vide, under the authority of section 301 and title IV of such Act, 
shared instrumentation and other capital research equipment to 
recipients of grants and contracts under section 481A of such Act 
and other appropriate entities: Provided further, That the Director 
of the Center shall provide to the Committees on Appropriations 
of the House of Representatives and the Senate an annual report 
indicating the number of institutions receiving awards of a grant 
or contract under section 481A of such Act, the proposed use of 
the funding, the average award size, a list of grant or contract 
recipients, and the amount of each award. 
OFFICE OF THE DIRECTOR 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Office of the Director’’, 
$8,200,000,000: Provided, That $7,400,000,000 shall be transferred 
to the Institutes and Centers of the National Institutes of Health 
(‘‘NIH’’) and to the Common Fund established under section 
402A(c)(1) of the Public Health Service Act in proportion to the 
appropriations otherwise made to such Institutes, Centers, and 
Common Fund for fiscal year 2009: Provided further, That these 
funds shall be used to support additional scientific research and 
shall be merged with and be available for the same purposes as 
the appropriation or fund to which transferred: Provided further, 
That this transfer authority is in addition to any other transfer 
authority available to the NIH: Provided further, That none of 
these funds may be transferred to ‘‘National Institutes of Health— 
Buildings and Facilities’’, the Center for Scientific Review, the 
Center for Information Technology, the Clinical Center, or the 
Global Fund for HIV/AIDS, Tuberculosis and Malaria: Provided 
further, That the funds provided in this Act to the NIH shall 
not be subject to the provisions of 15 U.S.C. 638(f)(1) and 15 
U.S.C. 638(n)(1): Provided further, That $400,000,000 may be used 
to carry out section 215 of division G of Public Law 110–161. 
BUILDINGS AND FACILITIES 
For an additional amount for ‘‘Buildings and Facilities’’, 
$500,000,000, to fund high-priority repair, construction and 
improvement projects for National Institutes of Health facilities 
on the Bethesda, Maryland campus and other agency locations. 
AGENCY FOR HEALTHCARE RESEARCH AND QUALITY 
HEALTHCARE RESEARCH AND QUALITY 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Healthcare Research and 
Quality’’ to carry out titles III and IX of the Public Health Service 
Act, part A of title XI of the Social Security Act, and section 
Reports. 
Deadline. 
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123 STAT. 177 
PUBLIC LAW 111–5—FEB. 17, 2009 
1013 of the Medicare Prescription Drug, Improvement, and Mod-
ernization Act of 2003, $700,000,000 for comparative effectiveness 
research: Provided, That of the amount appropriated in this para-
graph, $400,000,000 shall be transferred to the Office of the Director 
of the National Institutes of Health (‘‘Office of the Director’’) to 
conduct or support comparative effectiveness research under section 
301 and title IV of the Public Health Service Act: Provided further, 
That funds transferred to the Office of the Director may be trans-
ferred to the Institutes and Centers of the National Institutes 
of Health and to the Common Fund established under section 
402A(c)(1) of the Public Health Service Act: Provided further, That 
this transfer authority is in addition to any other transfer authority 
available to the National Institutes of Health: Provided further, 
That within the amount available in this paragraph for the Agency 
for Healthcare Research and Quality, not more than 1 percent 
shall be made available for additional full-time equivalents. 
In addition, $400,000,000 shall be available for comparative 
effectiveness research to be allocated at the discretion of the Sec-
retary of Health and Human Services (‘‘Secretary’’): Provided, That 
the funding appropriated in this paragraph shall be used to accel-
erate the development and dissemination of research assessing 
the comparative effectiveness of health care treatments and strate-
gies, through efforts that: (1) conduct, support, or synthesize 
research that compares the clinical outcomes, effectiveness, and 
appropriateness of items, services, and procedures that are used 
to prevent, diagnose, or treat diseases, disorders, and other health 
conditions; and (2) encourage the development and use of clinical 
registries, clinical data networks, and other forms of electronic 
health data that can be used to generate or obtain outcomes data: 
Provided further, That the Secretary shall enter into a contract 
with the Institute of Medicine, for which no more than $1,500,000 
shall be made available from funds provided in this paragraph, 
to produce and submit a report to the Congress and the Secretary 
by not later than June 30, 2009, that includes recommendations 
on the national priorities for comparative effectiveness research 
to be conducted or supported with the funds provided in this para-
graph and that considers input from stakeholders: Provided further, 
That the Secretary shall consider any recommendations of the Fed-
eral Coordinating Council for Comparative Effectiveness Research 
established by section 804 of this Act and any recommendations 
included in the Institute of Medicine report pursuant to the pre-
ceding proviso in designating activities to receive funds provided 
in this paragraph and may make grants and contracts with appro-
priate entities, which may include agencies within the Department 
of Health and Human Services and other governmental agencies, 
as well as private sector entities, that have demonstrated experience 
and capacity to achieve the goals of comparative effectiveness 
research: Provided further, That the Secretary shall publish 
information on grants and contracts awarded with the funds pro-
vided under this heading within a reasonable time of the obligation 
of funds for such grants and contracts and shall disseminate 
research findings from such grants and contracts to clinicians, 
patients, and the general public, as appropriate: Provided further, 
That, to the extent feasible, the Secretary shall ensure that the 
recipients of the funds provided by this paragraph offer an oppor-
tunity for public comment on the research: Provided further, That 
research conducted with funds appropriated under this paragraph 
Research and 
development. 
Public comment. 
Publication. 
Contracts. 
Reports. 
Deadline. 
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123 STAT. 178 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall be consistent with Departmental policies relating to the inclu-
sion of women and minorities in research: Provided further, That 
the Secretary shall provide the Committees on Appropriations of 
the House of Representatives and the Senate, the Committee on 
Energy and Commerce and the Committee on Ways and Means 
of the House of Representatives, and the Committee on Health, 
Education, Labor, and Pensions and the Committee on Finance 
of the Senate with an annual report on the research conducted 
or supported through the funds provided under this heading: Pro-
vided further, That the Secretary, jointly with the Directors of 
the Agency for Healthcare Research and Quality and the National 
Institutes of Health, shall provide the Committees on Appropria-
tions of the House of Representatives and the Senate a fiscal 
year 2009 operating plan for the funds appropriated under this 
heading prior to making any Federal obligations of such funds 
in fiscal year 2009, but not later than July 30, 2009, and a fiscal 
year 2010 operating plan for such funds prior to making any Federal 
obligations of such funds in fiscal year 2010, but not later than 
November 1, 2009, that detail the type of research being conducted 
or supported, including the priority conditions addressed; and 
specify the allocation of resources within the Department of Health 
and Human Services: Provided further, That the Secretary, jointly 
with the Directors of the Agency for Healthcare Research and 
Quality and the National Institutes of Health, shall provide to 
the Committees on Appropriations of the House of Representatives 
and the Senate a report on the actual obligations, expenditures, 
and unobligated balances for each activity funded under this 
heading not later than November 1, 2009, and every 6 months 
thereafter as long as funding provided under this heading is avail-
able for obligation or expenditure. 
ADMINISTRATION FOR CHILDREN AND FAMILIES 
PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT 
BLOCK GRANT 
For an additional amount for ‘‘Payments to States for the 
Child Care and Development Block Grant’’, $2,000,000,000, which 
shall be used to supplement, not supplant State general revenue 
funds for child care assistance for low-income families: Provided, 
That, in addition to the amounts required to be reserved by the 
States under section 658G of the Child Care and Development 
Block Grant Act of 1990, $255,186,000 shall be reserved by the 
States for activities authorized under section 658G, of which 
$93,587,000 shall be for activities that improve the quality of infant 
and toddler care. 
CHILDREN AND FAMILIES SERVICES PROGRAMS 
For an additional amount for ‘‘Children and Families Services 
Programs’’, $3,150,000,000, which shall be used as follows: 
(1) $1,000,000,000 for carrying out activities under the 
Head Start Act. 
(2) $1,100,000,000 for expansion of Early Head Start pro-
grams, as described in section 645A of the Head Start Act: 
Provided, That of the funds provided in this paragraph, up 
to 10 percent shall be available for the provision of training 
Reports. 
Deadlines. 
Operating plans. 
Deadlines. 
Reports. 
Deadline. 
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123 STAT. 179 
PUBLIC LAW 111–5—FEB. 17, 2009 
and technical assistance to such programs consistent with sec-
tion 645A(g)(2) of such Act, and up to 3 percent shall be 
available for monitoring the operation of such programs con-
sistent with section 641A of such Act. 
(3) $1,000,000,000 for carrying out activities under sections 
674 through 679 of the Community Services Block Grant Act, 
of which no part shall be subject to section 674(b)(3) of such 
Act: Provided, That notwithstanding section 675C(a)(1) and 
675C(b) of such Act, 1 percent of the funds made available 
to each State from this additional amount shall be used for 
benefits enrollment coordination activities relating to the identi-
fication and enrollment of eligible individuals and families in 
Federal, State, and local benefit programs: Provided further, 
That all funds remaining available to a State from this addi-
tional amount after application of the previous proviso shall 
be distributed to eligible entities as defined in section 673(1) 
of such Act: Provided further, That for services furnished under 
such Act during fiscal years 2009 and 2010, States may apply 
the last sentence of section 673(2) of such Act by substituting 
‘‘200 percent’’ for ‘‘125 percent’’. 
(4) $50,000,000 for carrying out activities under section 
1110 of the Social Security Act. 
ADMINISTRATION ON AGING 
AGING SERVICES PROGRAMS 
For an additional amount for ‘‘Aging Services Programs’’ under 
subparts 1 and 2 of part C, of title III, and under title VI, of 
the Older Americans Act of 1965, $100,000,000, of which 
$65,000,000 shall be for Congregate Nutrition Services, $32,000,000 
shall be for Home-Delivered Nutrition Services and $3,000,000 shall 
be for Nutrition Services for Native Americans. 
OFFICE OF THE SECRETARY 
OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION 
TECHNOLOGY 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Office of the National Coordi-
nator for Health Information Technology’’, $2,000,000,000, to carry 
out title XIII of this Act, to remain available until expended: Pro-
vided, That of such amount, the Secretary of Health and Human 
Services shall transfer $20,000,000 to the Director of the National 
Institute of Standards and Technology in the Department of Com-
merce for continued work on advancing health care information 
enterprise integration through activities such as technical standards 
analysis and establishment of conformance testing infrastructure, 
so long as such activities are coordinated with the Office of the 
National Coordinator for Health Information Technology: Provided 
further, That $300,000,000 is to support regional or sub-national 
efforts toward health information exchange: Provided further, That 
0.25 percent of the funds provided in this paragraph may be used 
for administration of such funds: Provided further, That funds avail-
able under this heading shall become available for obligation only 
upon submission of an annual operating plan by the Secretary 
Operating plan. 
Deadline. 
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123 STAT. 180 
PUBLIC LAW 111–5—FEB. 17, 2009 
to the Committees on Appropriations of the House of Representa-
tives and the Senate: Provided further, That the fiscal year 2009 
operating plan shall be provided not later than 90 days after enact-
ment of this Act and that subsequent annual operating plans shall 
be provided not later than November 1 of each year: Provided 
further, That these operating plans shall describe how expenditures 
are aligned with the specific objectives, milestones, and metrics 
of the Federal Health Information Technology Strategic Plan, 
including any subsequent updates to the Plan; the allocation of 
resources within the Department of Health and Human Services 
and other Federal agencies; and the identification of programs 
and activities that are supported: Provided further, That the Sec-
retary shall provide to the Committees on Appropriations of the 
House of Representatives and the Senate a report on the actual 
obligations, expenditures, and unobligated balances for each major 
set of activities not later than November 1, 2009, and every 6 
months thereafter as long as funding provided under this heading 
is available for obligation or expenditure. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of Inspector General’’, 
$17,000,000 which shall remain available until September 30, 2012. 
PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND 
For an additional amount for ‘‘Public Health and Social Services 
Emergency Fund’’ to improve information technology security at 
the Department of Health and Human Services, $50,000,000. 
PREVENTION AND WELLNESS FUND 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for a ‘‘Prevention and Wellness Fund’’ 
to be administered through the Department of Health and Human 
Services, Office of the Secretary, $1,000,000,000: Provided, That 
of the amount provided in this paragraph, $300,000,000 shall be 
transferred to the Centers for Disease Control and Prevention 
(‘‘CDC’’) as an additional amount to carry out the immunization 
program (‘‘section 317 immunization program’’) authorized by sec-
tion 317(a), (j), and (k)(1) of the Public Health Service Act (‘‘PHS 
Act’’): Provided further, That of the amount provided in this para-
graph, $650,000,000 shall be to carry out evidence-based clinical 
and community-based prevention and wellness strategies authorized 
by the PHS Act, as determined by the Secretary, that deliver 
specific, measurable health outcomes that address chronic disease 
rates: Provided further, That funds appropriated in the preceding 
proviso may be transferred to other appropriation accounts of the 
Department of Health and Human Services, as determined by the 
Secretary to be appropriate: Provided further, That of the amount 
appropriated in this paragraph, $50,000,000 shall be provided to 
States for an additional amount to carry out activities to implement 
healthcare associated infections reduction strategies: Provided fur-
ther, That not more than 0.5 percent of funds made available 
in this paragraph may be used for management and oversight 
expenses in the office or division of the Department of Health 
and Human Services administering the funds: Provided further, 
Contracts. 
Evaluations. 
Deadline. 
Reports. 
Deadlines. 
Operating plans. 
Deadlines. 
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123 STAT. 181 
PUBLIC LAW 111–5—FEB. 17, 2009 
That the Secretary shall, directly or through contracts with public 
or private entities, provide for annual evaluations of programs 
carried out with funds provided under this heading in order to 
determine the quality and effectiveness of the programs: Provided 
further, That the Secretary shall, not later than 1 year after the 
date of enactment of this Act, submit to the Committees on Appro-
priations of the House of Representatives and the Senate, the 
Committee on Energy and Commerce of the House of Representa-
tives, and the Committee on Health, Education, Labor, and Pensions 
of the Senate, a report summarizing the annual evaluations of 
programs from the preceding proviso: Provided further, That the 
Secretary shall provide to the Committees on Appropriations of 
the House of Representatives and the Senate an operating plan 
for the Prevention and Wellness Fund prior to making any Federal 
obligations of funds provided in this paragraph (excluding funds 
to carry out the section 317 immunization program), but not later 
than 90 days after the date of enactment of this Act, that indicates 
the prevention priorities to be addressed; provides measurable goals 
for each prevention priority; details the allocation of resources 
within the Department of Health and Human Services; and identi-
fies which programs or activities are supported, including descrip-
tions of any new programs or activities: Provided further, That 
the Secretary shall provide to the Committees on Appropriations 
of the House of Representatives and the Senate a report on the 
actual obligations, expenditures, and unobligated balances for each 
activity funded under this heading not later than November 1, 
2009, and every 6 months thereafter as long as funding provided 
under this heading is available for obligation or expenditure. 
DEPARTMENT OF EDUCATION 
EDUCATION FOR THE DISADVANTAGED 
For an additional amount for ‘‘Education for the Disadvantaged’’ 
to carry out title I of the Elementary and Secondary Education 
Act 
of 
1965 
(‘‘ESEA’’), 
$13,000,000,000: 
Provided, 
That 
$5,000,000,000 shall be available for targeted grants under section 
1125 of the ESEA: Provided further, That $5,000,000,000 shall 
be available for education finance incentive grants under section 
1125A of the ESEA: Provided further, That $3,000,000,000 shall 
be for school improvement grants under section 1003(g) of the 
ESEA: Provided further, That each local educational agency 
receiving funds available under this paragraph shall be required 
to file with the State educational agency, no later than December 
1, 2009, a school-by-school listing of per-pupil educational expendi-
tures from State and local sources during the 2008–2009 academic 
year: Provided further, That each State educational agency shall 
report that information to the Secretary of Education by March 
31, 2010. 
IMPACT AID 
For an additional amount for ‘‘Impact Aid’’ to carry out section 
8007 of title VIII of the Elementary and Secondary Education 
Act of 1965, $100,000,000, which shall be expended pursuant to 
the requirements of section 805. 
Reports. 
Deadline. 
Deadline. 
Expenditures. 
Grants. 
Reports. 
Deadlines. 
Operating plan. 
Deadline. 
Reports. 
Deadline. 
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123 STAT. 182 
PUBLIC LAW 111–5—FEB. 17, 2009 
SCHOOL IMPROVEMENT PROGRAMS 
For an additional amount for ‘‘School Improvement Programs’’ 
to carry out subpart 1, part D of title II of the Elementary and 
Secondary Education Act of 1965 (‘‘ESEA’’), and subtitle B of title 
VII of the McKinney-Vento Homeless Assistance Act, $720,000,000: 
Provided, That $650,000,000 shall be available for subpart 1, part 
D of title II of the ESEA: Provided further, That the Secretary 
shall allot $70,000,000 for grants under McKinney-Vento to each 
State in proportion to the number of homeless students identified 
by the State during the 2007–2008 school year relative to the 
number of such children identified nationally during that school 
year: Provided further, That State educational agencies shall 
subgrant the McKinney-Vento funds to local educational agencies 
on a competitive basis or according to a formula based on the 
number of homeless students identified by the local educational 
agencies in the State: Provided further, That the Secretary shall 
distribute the McKinney-Vento funds to the States not later than 
60 days after the date of the enactment of this Act: Provided 
further, That each State shall subgrant the McKinney-Vento funds 
to local educational agencies not later than 120 days after receiving 
its grant from the Secretary. 
INNOVATION AND IMPROVEMENT 
For an additional amount for ‘‘Innovation and Improvement’’ 
to carry out subpart 1, part D of title V of the Elementary and 
Secondary Education Act of 1965 (‘‘ESEA’’), $200,000,000: Provided, 
That these funds shall be expended as directed in the fifth, sixth, 
and seventh provisos under the heading ‘‘Innovation and Improve-
ment’’ in the Department of Education Appropriations Act, 2008: 
Provided further, That a portion of these funds shall also be used 
for a rigorous national evaluation by the Institute of Education 
Sciences, utilizing randomized controlled methodology to the extent 
feasible, that assesses the impact of performance-based teacher 
and principal compensation systems supported by the funds pro-
vided in this Act on teacher and principal recruitment and retention 
in high-need schools and subjects: Provided further, That the Sec-
retary may reserve up to 1 percent of the amount made available 
under this heading for management and oversight of the activities 
supported with those funds. 
SPECIAL EDUCATION 
For an additional amount for ‘‘Special Education’’ for carrying 
out parts B and C of the Individuals with Disabilities Education 
Act (‘‘IDEA’’), $12,200,000,000, of which $11,300,000,000 shall be 
available for section 611 of the IDEA: Provided, That if every 
State, as defined by section 602(31) of the IDEA, reaches its max-
imum allocation under section 611(d)(3)(B)(iii) of the IDEA, and 
there are remaining funds, such funds shall be proportionally allo-
cated to each State subject to the maximum amounts contained 
in section 611(a)(2) of the IDEA: Provided further, That by July 
1, 2009, the Secretary of Education shall reserve the amount needed 
for grants under section 643(e) of the IDEA, with any remaining 
funds to be allocated in accordance with section 643(c) of the IDEA: 
Provided further, That the total amount for each of sections 
611(b)(2) and 643(b)(1) of the IDEA, under this and all other Acts, 
Deadline. 
Grants. 
Evaluation. 
Deadline. 
Deadline. 
Grants. 
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123 STAT. 183 
PUBLIC LAW 111–5—FEB. 17, 2009 
for fiscal year 2009, whenever enacted, shall be equal to the 
amounts respectively available for these activities under these sec-
tions during fiscal year 2008 increased by the amount of inflation 
as specified in section 619(d)(2)(B) of the IDEA: Provided further, 
That $400,000,000 shall be available for section 619 of the IDEA 
and $500,000,000 shall be available for part C of the IDEA. 
REHABILITATION SERVICES AND DISABILITY RESEARCH 
For an additional amount for ‘‘Rehabilitation Services and Dis-
ability Research’’ for providing grants to States to carry out the 
Vocational Rehabilitation Services program under part B of title 
I and parts B and C of chapter 1 and chapter 2 of title VII 
of the Rehabilitation Act of 1973, $680,000,000: Provided, That 
$540,000,000 shall be available for part B of title I of the Rehabilita-
tion Act: Provided further, That funds provided herein shall not 
be considered in determining the amount required to be appro-
priated under section 100(b)(1) of the Rehabilitation Act of 1973 
in any fiscal year: Provided further, That, notwithstanding section 
7(14)(A), the Federal share of the costs of vocational rehabilitation 
services provided with the funds provided herein shall be 100 per-
cent: Provided further, That $140,000,000 shall be available for 
parts B and C of chapter 1 and chapter 2 of title VII of the 
Rehabilitation Act: Provided further, That $18,200,000 shall be 
for State Grants, $87,500,000 shall be for independent living cen-
ters, and $34,300,000 shall be for services for older blind individ-
uals. 
STUDENT FINANCIAL ASSISTANCE 
For an additional amount for ‘‘Student Financial Assistance’’ 
to carry out subpart 1 of part A and part C of title IV of the 
Higher Education Act of 1965 (‘‘HEA’’), $15,840,000,000, which shall 
remain available through September 30, 2011: Provided, That 
$15,640,000,000 shall be available for subpart 1 of part A of title 
IV of the HEA: Provided further, That $200,000,000 shall be avail-
able for part C of title IV of the HEA. 
The maximum Pell Grant for which a student shall be eligible 
during award year 2009–2010 shall be $4,860. 
STUDENT AID ADMINISTRATION 
For an additional amount for ‘‘Student Aid Administration’’ 
to carry out part D of title I, and subparts 1, 3, and 4 of part 
A, and parts B, C, D, and E of title IV of the Higher Education 
Act of 1965, $60,000,000. 
HIGHER EDUCATION 
For an additional amount for ‘‘Higher Education’’ to carry out 
part A of title II of the Higher Education Act of 1965, $100,000,000. 
INSTITUTE OF EDUCATION SCIENCES 
For an additional amount for ‘‘Institute of Education Sciences’’ 
to carry out section 208 of the Educational Technical Assistance 
Act, $250,000,000, which may be used for Statewide data systems 
that include postsecondary and workforce information, of which 
20 USC 1070a 
note. 
Grants. 
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123 STAT. 184 
PUBLIC LAW 111–5—FEB. 17, 2009 
up to $5,000,000 may be used for State data coordinators and 
for awards to public or private organizations or agencies to improve 
data coordination. 
DEPARTMENTAL MANAGEMENT 
OFFICE OF THE INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of the Inspector Gen-
eral’’, $14,000,000, which shall remain available through September 
30, 2012, for salaries and expenses necessary for oversight and 
audit of programs, grants, and projects funded in this Act. 
RELATED AGENCIES 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
OPERATING EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Operating Expenses’’ to carry 
out the Domestic Volunteer Service Act of 1973 (‘‘1973 Act’’) and 
the National and Community Service Act of 1990 (‘‘1990 Act’’), 
$160,000,000: Provided, That $89,000,000 of the funds made avail-
able in this paragraph shall be used to make additional awards 
to existing AmeriCorps grantees and may be used to provide adjust-
ments to awards under subtitle C of title I of the 1990 Act made 
prior to September 30, 2010 for which the Chief Executive Officer 
of the Corporation for National and Community Service (‘‘CEO’’) 
determines that a waiver of the Federal share limitation is war-
ranted under section 2521.70 of title 45 of the Code of Federal 
Regulations: Provided further, That of the amount made available 
in this paragraph, not less than $6,000,000 shall be transferred 
to ‘‘Salaries and Expenses’’ for necessary expenses relating to 
information technology upgrades, of which up to $800,000 may 
be used to administer the funds provided in this paragraph: Pro-
vided further, That of the amount provided in this paragraph, 
not less than $65,000,000 shall be for programs under title I, 
part A of the 1973 Act: Provided further, That funds provided 
in the previous proviso shall not be made available in connection 
with cost-share agreements authorized under section 192A(g)(10) 
of the 1990 Act: Provided further, That of the funds available 
under this heading, up to 20 percent of funds allocated to grants 
authorized under section 124(b) of title I, subtitle C of the 1990 
Act may be used to administer, reimburse, or support any national 
service program under section 129(d)(2) of the 1990 Act: Provided 
further, That, except as provided herein and in addition to require-
ments identified herein, funds provided in this paragraph shall 
be subject to the terms and conditions under which funds were 
appropriated in fiscal year 2008: Provided further, That the CEO 
shall provide the Committees on Appropriations of the House of 
Representatives and the Senate a fiscal year 2009 operating plan 
for the funds appropriated in this paragraph prior to making any 
Federal obligations of such funds in fiscal year 2009, but not later 
than 90 days after the date of enactment of this Act, and a fiscal 
year 2010 operating plan for such funds prior to making any Federal 
obligations of such funds in fiscal year 2010, but not later than 
Operating plans. 
Deadlines. 
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123 STAT. 185 
PUBLIC LAW 111–5—FEB. 17, 2009 
November 1, 2009, that detail the allocation of resources and the 
increased number of members supported by the AmeriCorps pro-
grams: Provided further, That the CEO shall provide to the Commit-
tees on Appropriations of the House of Representatives and the 
Senate a report on the actual obligations, expenditures, and unobli-
gated balances for each activity funded under this heading not 
later than November 1, 2009, and every 6 months thereafter as 
long as funding provided under this heading is available for obliga-
tion or expenditure. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of Inspector General’’, 
$1,000,000, which shall remain available until September 30, 2012. 
NATIONAL SERVICE TRUST 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘National Service Trust’’ estab-
lished under subtitle D of title I of the National and Community 
Service Act of 1990 (‘‘1990 Act’’), $40,000,000, which shall remain 
available until expended: Provided, That the Corporation for 
National and Community Service may transfer additional funds 
from the amount provided within ‘‘Operating Expenses’’ for grants 
made under subtitle C of title I of the 1990 Act to this appropriation 
upon determination that such transfer is necessary to support the 
activities of national service participants and after notice is trans-
mitted to the Committees on Appropriations of the House of Rep-
resentatives and the Senate: Provided further, That the amount 
appropriated for or transferred to the National Service Trust may 
be invested under section 145(b) of the 1990 Act without regard 
to the requirement to apportion funds under 31 U.S.C. 1513(b). 
SOCIAL SECURITY ADMINISTRATION 
LIMITATION ON ADMINISTRATIVE EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Limitation on Administrative 
Expenses’’, $1,000,000,000 shall be available as follows: 
(1) $500,000,000 shall remain available until expended for 
necessary expenses of the replacement of the National Com-
puter Center and the information technology costs associated 
with such Center: Provided, That the Commissioner of Social 
Security shall notify the Committees on Appropriations of the 
House of Representatives and the Senate not later than 10 
days prior to each public notice soliciting bids related to site 
selection and construction and prior to the lease or purchase 
of such site: Provided further, That the construction plan and 
site selection for such center shall be subject to review and 
approval by the Office of Management and Budget: Provided 
further, That such center shall continue to be a government- 
operated facility; and 
(2) $500,000,000 for processing disability and retirement 
workloads, including information technology acquisitions and 
research in support of such activities: Provided, That up to 
Notification. 
Deadline. 
Notification. 
Reports. 
Deadline. 
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123 STAT. 186 
PUBLIC LAW 111–5—FEB. 17, 2009 
$40,000,000 may be used by the Commissioner of Social Secu-
rity for health information technology research and activities 
to facilitate the adoption of electronic medical records in dis-
ability claims, including the transfer of funds to ‘‘Supplemental 
Security Income Program’’ to carry out activities under section 
1110 of the Social Security Act. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the ‘‘Office of Inspector General’’, 
$2,000,000, which shall remain available through September 30, 
2012, for salaries and expenses necessary for oversight and audit 
of programs, projects, and activities funded in this Act. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 801. (a) Up to 1 percent of the funds made available 
to the Department of Labor in this title may be used for the 
administration, management, and oversight of the programs, grants, 
and activities funded by such appropriation, including the evalua-
tion of the use of such funds. 
(b) Funds designated for these purposes may be available for 
obligation through September 30, 2010. 
(c) Not later than 30 days after enactment of this Act, the 
Secretary of Labor shall provide an operating plan describing the 
proposed use of funds for the purposes described in (a). 
SEC. 802. REPORT ON THE IMPACT OF PAST AND FUTURE MIN-
IMUM WAGE INCREASES. (a) IN GENERAL.—Section 8104 of the U.S. 
Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Public Law 110–28; 121 
Stat. 189) is amended to read as follows: 
‘‘SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM 
WAGE INCREASES. 
‘‘(a) STUDY.—Beginning on the date that is 60 days after the 
date of enactment of this Act, and every year thereafter until 
the minimum wage in the respective territory is $7.25 per hour, 
the Government Accountability Office shall conduct a study to— 
‘‘(1) assess the impact of the minimum wage increases 
that occurred in American Samoa and the Commonwealth of 
the Northern Mariana Islands in 2007 and 2008, as required 
under Public Law 110–28, on the rates of employment and 
the living standards of workers, with full consideration of the 
other factors that impact rates of employment and the living 
standards of workers such as inflation in the cost of food, 
energy, and other commodities; and 
‘‘(2) estimate the impact of any further wage increases 
on rates of employment and the living standards of workers 
in American Samoa and the Commonwealth of the Northern 
Mariana Islands, with full consideration of the other factors 
that may impact the rates of employment and the living stand-
ards of workers, including assessing how the profitability of 
major private sector firms may be impacted by wage increases 
in comparison to other factors such as energy costs and the 
value of tax benefits. 
‘‘(b) REPORT.—No earlier than March 15, 2010, and not later 
than April 15, 2010, the Government Accountability Office shall 
transmit its first report to Congress concerning the findings of 
Effective date. 
29 USC 206 note. 
Deadline. 
Operating plan. 
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123 STAT. 187 
PUBLIC LAW 111–5—FEB. 17, 2009 
the study required under subsection (a). The Government Account-
ability Office shall transmit any subsequent reports to Congress 
concerning the findings of a study required by subsection (a) 
between March 15 and April 15 of each year. 
‘‘(c) ECONOMIC INFORMATION.—To provide sufficient economic 
data for the conduct of the study under subsection (a) the Bureau 
of the Census of the Department of Commerce shall include and 
separately report on American Samoa, the Commonwealth of the 
Northern Mariana Islands, Guam, and the Virgin Islands in its 
County Business Patterns data with the same regularity and to 
the same extent as each Bureau collects and reports such data 
for the 50 States. In the event that the inclusion of American 
Samoa, the Commonwealth of the Northern Mariana Islands, Guam, 
and the Virgin Islands in such surveys and data compilations 
requires time to structure and implement, the Bureau of the Census 
shall in the interim annually report the best available data that 
can feasibly be secured with respect to such territories. Such interim 
report shall describe the steps the Bureau will take to improve 
future data collection in the territories to achieve comparability 
with the data collected in the United States. The Bureau of the 
Census, together with the Department of the Interior, shall coordi-
nate their efforts to achieve such improvements.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of enactment of this Act. 
SEC. 803. ELIGIBLE EMPLOYEES IN THE RECREATIONAL MARINE 
INDUSTRY. Section 2(3)(F) of the Longshore and Harbor Workers’ 
Compensation Act (33 U.S.C. 902(3)(F)) is amended— 
(1) by striking ‘‘, repair or dismantle’’; and 
(2) by striking the semicolon and inserting ‘‘, or individuals 
employed to repair any recreational vessel, or to dismantle 
any part of a recreational vessel in connection with the repair 
of such vessel;’’. 
SEC. 804. FEDERAL COORDINATING COUNCIL FOR COMPARATIVE 
EFFECTIVENESS RESEARCH. (a) ESTABLISHMENT.—There is hereby 
established a Federal Coordinating Council for Comparative 
Effectiveness Research (in this section referred to as the ‘‘Council’’). 
(b) PURPOSE.—The Council shall foster optimum coordination 
of comparative effectiveness and related health services research 
conducted or supported by relevant Federal departments and agen-
cies, with the goal of reducing duplicative efforts and encouraging 
coordinated and complementary use of resources. 
(c) DUTIES.—The Council shall— 
(1) assist the offices and agencies of the Federal Govern-
ment, including the Departments of Health and Human Serv-
ices, Veterans Affairs, and Defense, and other Federal depart-
ments or agencies, to coordinate the conduct or support of 
comparative effectiveness and related health services research; 
and 
(2) advise the President and Congress on— 
(A) strategies with respect to the infrastructure needs 
of comparative effectiveness research within the Federal 
Government; and 
(B) 
organizational 
expenditures 
for 
comparative 
effectiveness research by relevant Federal departments and 
agencies. 
(d) MEMBERSHIP.— 
42 USC 299b–8. 
29 USC 206 note. 
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123 STAT. 188 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) NUMBER AND APPOINTMENT.—The Council shall be com-
posed of not more than 15 members, all of whom are senior 
Federal officers or employees with responsibility for health- 
related programs, appointed by the President, acting through 
the Secretary of Health and Human Services (in this section 
referred to as the ‘‘Secretary’’). Members shall first be appointed 
to the Council not later than 30 days after the date of the 
enactment of this Act. 
(2) MEMBERS.— 
(A) IN GENERAL.—The members of the Council shall 
include one senior officer or employee from each of the 
following agencies: 
(i) The Agency for Healthcare Research and 
Quality. 
(ii) The Centers for Medicare and Medicaid Serv-
ices. 
(iii) The National Institutes of Health. 
(iv) The Office of the National Coordinator for 
Health Information Technology. 
(v) The Food and Drug Administration. 
(vi) The Veterans Health Administration within 
the Department of Veterans Affairs. 
(vii) The office within the Department of Defense 
responsible for management of the Department of 
Defense Military Health Care System. 
(B) QUALIFICATIONS.—At least half of the members 
of the Council shall be physicians or other experts with 
clinical expertise. 
(3) CHAIRMAN; VICE CHAIRMAN.—The Secretary shall serve 
as Chairman of the Council and shall designate a member 
to serve as Vice Chairman. 
(e) REPORTS.— 
(1) INITIAL REPORT.—Not later than June 30, 2009, the 
Council shall submit to the President and the Congress a 
report containing information describing current Federal activi-
ties on comparative effectiveness research and recommenda-
tions for such research conducted or supported from funds 
made available for allotment by the Secretary for comparative 
effectiveness research in this Act. 
(2) ANNUAL REPORT.—The Council shall submit to the Presi-
dent and Congress an annual report regarding its activities 
and recommendations concerning the infrastructure needs, 
organizational expenditures and opportunities for better 
coordination of comparative effectiveness research by relevant 
Federal departments and agencies. 
(f) STAFFING; SUPPORT.—From funds made available for allot-
ment by the Secretary for comparative effectiveness research in 
this Act, the Secretary shall make available not more than 1 percent 
to the Council for staff and administrative support. 
(g) RULES OF CONSTRUCTION.— 
(1) COVERAGE.—Nothing in this section shall be construed 
to permit the Council to mandate coverage, reimbursement, 
or other policies for any public or private payer. 
(2) REPORTS AND RECOMMENDATIONS.—None of the reports 
submitted under this section or recommendations made by the 
Council shall be construed as mandates or clinical guidelines 
for payment, coverage, or treatment. 
Deadline. 
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123 STAT. 189 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 805. GRANTS FOR IMPACT AID CONSTRUCTION. (a) RESERVA-
TION FOR MANAGEMENT AND OVERSIGHT.—From the funds appro-
priated to carry out this section, the Secretary may reserve up 
to 1 percent for management and oversight of the activities carried 
out with those funds. 
(b) CONSTRUCTION PAYMENTS.— 
(1) FORMULA GRANTS.—(A) IN GENERAL.—From 40 percent 
of the amount not reserved under subsection (a), the Secretary 
shall make payments in accordance with section 8007(a) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7707(a)), except that the amount of such payments shall be 
determined in accordance with subparagraph (B). 
(B) AMOUNT OF PAYMENTS.—The Secretary shall make 
a payment to each local educational agency eligible for 
a payment under section 8007(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7707(a)) in 
an amount that bears the same relationship to the funds 
made available under subparagraph (A) as the number 
of children determined under subparagraphs (B), (C), and 
(D)(i) of section 8003(a)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), (C), and 
(D)(i)) who were in average daily attendance in the local 
educational agency for the most recent year for which 
such information is available bears to the number of such 
children in all the local educational agencies eligible for 
a payment under section 8007(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7707(a)). 
(2) COMPETITIVE GRANTS.—From 60 percent of the amount 
not reserved under subsection (a), the Secretary— 
(A) shall award emergency grants in accordance with 
section 8007(b) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7707(b)) to eligible local educational 
agencies to enable the agencies to carry out emergency 
repairs of school facilities; and 
(B) may award modernization grants in accordance 
with section 8007(b) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7707(b)) to eligible local 
educational agencies to enable the agencies to carry out 
the modernization of school facilities. 
(3) PROVISIONS NOT TO APPLY.—Paragraphs (2), (3), (4), 
(5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), 
(3), (4), (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made 
under paragraph (2). 
(4) ELIGIBILITY.—A local educational agency is eligible to 
receive a grant under paragraph (2) if the local educational 
agency— 
(A) was eligible to receive a payment under section 
8002 or 8003 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7702 and 7703) for fiscal year 
2008; and 
(B) has— 
(i) a total taxable assessed value of real property 
that may be taxed for school purposes of less than 
$100,000,000; or 
(ii) an assessed value of real property per student 
that may be taxed for school purposes that is less 
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123 STAT. 190 
PUBLIC LAW 111–5—FEB. 17, 2009 
than the average of the assessed value of real property 
per student that may be taxed for school purposes 
in the State in which the local educational agency 
is located. 
(5) CRITERIA FOR GRANTS.—In awarding grants under para-
graph (2), the Secretary shall consider the following criteria: 
(A) Whether the facility poses a health or safety threat 
to students and school personnel, including noncompliance 
with building codes and inaccessibility for persons with 
disabilities, or whether the existing building capacity meets 
the needs of the current enrollment and supports the provi-
sion of comprehensive educational services to meet current 
standards in the State in which the local educational 
agency is located. 
(B) The extent to which the new design and proposed 
construction utilize energy efficient and recyclable mate-
rials. 
(C) The extent to which the new design and proposed 
construction utilizes non-traditional or alternative building 
methods to expedite construction and project completion 
and maximize cost efficiency. 
(D) The feasibility of project completion within 24 
months from award. 
(E) The availability of other resources for the proposed 
project. 
SEC. 806. MANDATORY PELL GRANTS. Section 401(b)(9)(A) of 
the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is 
amended— 
(1) in clause (ii), by striking ‘‘$2,090,000,000’’ and inserting 
‘‘$2,733,000,000’’; and 
(2) in clause (iii), by striking ‘‘$3,030,000,000’’ and inserting 
‘‘$3,861,000,000’’. 
SEC. 807. (a) IN GENERAL.—Notwithstanding any other provi-
sion of law, and in order to begin expenditures and activities under 
this Act as quickly as possible consistent with prudent management, 
the Secretary of Education may— 
(1) award fiscal year 2009 funds to States and local edu-
cational agencies on the basis of eligibility determinations made 
for the award of fiscal year 2008 funds; and 
(2) require States to make prompt allocations to local edu-
cational agencies. 
(b) INTEREST NOT TO ACCRUE.—Notwithstanding sections 3335 
and 6503 of title 31, United States Code, or any other provision 
of law, the United States shall not be liable to any State or other 
entity for any interest or fee with respect to any funds under 
this Act that are allocated by the Secretary of Education to the 
State or other entity within 30 days of the date on which they 
are available for obligation. 
Time period. 
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123 STAT. 191 
PUBLIC LAW 111–5—FEB. 17, 2009 
TITLE IX—LEGISLATIVE BRANCH 
GOVERNMENT ACCOUNTABILITY OFFICE 
SALARIES AND EXPENSES 
For an additional amount for ‘‘Salaries and Expenses’’ of the 
Government Accountability Office, $25,000,000, to remain available 
until September 30, 2010. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 901. GOVERNMENT ACCOUNTABILITY OFFICE REVIEWS AND 
REPORTS. (a) REVIEWS AND REPORTS.— 
(1) IN GENERAL.—The Comptroller General shall conduct 
bimonthly reviews and prepare reports on such reviews on 
the use by selected States and localities of funds made available 
in this Act. Such reports, along with any audits conducted 
by the Comptroller General of such funds, shall be posted 
on the Internet and linked to the website established under 
this Act by the Recovery Accountability and Transparency 
Board. 
(2) REDACTIONS.—Any portion of a report or audit under 
this subsection may be redacted when made publicly available, 
if that portion would disclose information that is not subject 
to disclosure under section 552 of title 5, United States Code 
(commonly known as the Freedom of Information Act). 
(b) EXAMINATION OF RECORDS.—The Comptroller General may 
examine any records related to obligations and use by any Federal, 
State, or local government agency of funds made available in this 
Act. 
SEC. 902. ACCESS OF GOVERNMENT ACCOUNTABILITY OFFICE. 
(a) ACCESS.—Each contract awarded using funds made available 
in this Act shall provide that the Comptroller General and his 
representatives are authorized— 
(1) to examine any records of the contractor or any of 
its subcontractors, or any State or local agency administering 
such contract, that directly pertain to, and involve transactions 
relating to, the contract or subcontract; and 
(2) to interview any officer or employee of the contractor 
or any of its subcontractors, or of any State or local government 
agency administering the contract, regarding such transactions. 
(b) RELATIONSHIP TO EXISTING AUTHORITY.—Nothing in this 
section shall be interpreted to limit or restrict in any way any 
existing authority of the Comptroller General. 
TITLE X—MILITARY CONSTRUCTION AND VETERANS 
AFFAIRS 
DEPARTMENT OF DEFENSE 
MILITARY CONSTRUCTION, ARMY 
For an additional amount for ‘‘Military Construction, Army’’, 
$180,000,000, to remain available until September 30, 2013: Pro-
vided, That notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and design 
Internet posting. 
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123 STAT. 192 
PUBLIC LAW 111–5—FEB. 17, 2009 
and military construction projects in the United States not other-
wise authorized by law: Provided further, That of the amount pro-
vided under this heading, $80,000,000 shall be for child development 
centers, and $100,000,000 shall be for warrior transition complexes: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading. 
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS 
For an additional amount for ‘‘Military Construction, Navy 
and Marine Corps’’, $280,000,000, to remain available until Sep-
tember 30, 2013: Provided, That notwithstanding any other provi-
sion of law, such funds may be obligated and expended to carry 
out planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided further, 
That of the amount provided under this heading, $100,000,000 
shall be for troop housing, $80,000,000 shall be for child develop-
ment centers, and $100,000,000 shall be for energy conservation 
and alternative energy projects: Provided further, That not later 
than 30 days after the date of enactment of this Act, the Secretary 
of Defense shall submit to the Committees on Appropriations of 
both Houses of Congress an expenditure plan for funds provided 
under this heading. 
MILITARY CONSTRUCTION, AIR FORCE 
For an additional amount for ‘‘Military Construction, Air Force’’, 
$180,000,000, to remain available until September 30, 2013: Pro-
vided, That notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and design 
and military construction projects in the United States not other-
wise authorized by law: Provided further, That of the amount pro-
vided under this heading, $100,000,000 shall be for troop housing 
and $80,000,000 shall be for child development centers: Provided 
further, That not later than 30 days after the date of enactment 
of this Act, the Secretary of Defense shall submit to the Committees 
on Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading. 
MILITARY CONSTRUCTION, DEFENSE-WIDE 
For an additional amount for ‘‘Military Construction, Defense- 
Wide’’, $1,450,000,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of law, 
such funds may be obligated and expended to carry out planning 
and design and military construction projects in the United States 
not otherwise authorized by law: Provided further, That of the 
amount provided under this heading, $1,330,000,000 shall be for 
the construction of hospitals and $120,000,000 shall be for the 
Energy Conservation Investment Program: Provided further, That 
not later than 30 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the Committees on Appro-
priations of both Houses of Congress an expenditure plan for funds 
provided under this heading. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 193 
PUBLIC LAW 111–5—FEB. 17, 2009 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
For an additional amount for ‘‘Military Construction, Army 
National Guard’’, $50,000,000, to remain available until September 
30, 2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out plan-
ning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That 
not later than 30 days after the date of enactment of this Act, 
the Secretary of Defense, in consultation with the Director of the 
Army National Guard, shall submit to the Committees on Appro-
priations of both Houses of Congress an expenditure plan for funds 
provided under this heading. 
MILITARY CONSTRUCTION, AIR NATIONAL GUARD 
For an additional amount for ‘‘Military Construction, Air 
National Guard’’, $50,000,000, to remain available until September 
30, 2013: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out plan-
ning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That 
not later than 30 days after the date of enactment of this Act, 
the Secretary of Defense, in consultation with the Director of the 
Air National Guard, shall submit to the Committees on Appropria-
tions of both Houses of Congress an expenditure plan for funds 
provided under this heading. 
FAMILY HOUSING CONSTRUCTION, ARMY 
For an additional amount for ‘‘Family Housing Construction, 
Army’’, $34,507,000, to remain available until September 30, 2013: 
Provided, That notwithstanding any other provision of law, such 
funds may be obligated and expended to carry out planning and 
design and military construction projects in the United States not 
otherwise authorized by law: Provided further, That within 30 days 
of enactment of this Act, the Secretary of Defense shall submit 
to the Committees on Appropriations of both Houses of Congress 
an expenditure plan for funds provided under this heading. 
FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY 
For an additional amount for ‘‘Family Housing Operation and 
Maintenance, Army’’, $3,932,000: Provided, That notwithstanding 
any other provision of law, such funds may be obligated and 
expended for maintenance and repair and minor construction 
projects in the United States not otherwise authorized by law. 
FAMILY HOUSING CONSTRUCTION, AIR FORCE 
For an additional amount for ‘‘Family Housing Construction, 
Air Force’’, $80,100,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of law, 
such funds may be obligated and expended to carry out planning 
and design and military construction projects in the United States 
not otherwise authorized by law: Provided further, That within 
30 days of enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Appropriations of both Houses of 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 194 
PUBLIC LAW 111–5—FEB. 17, 2009 
Congress an expenditure plan for funds provided under this 
heading. 
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE 
For an additional amount for ‘‘Family Housing Operation and 
Maintenance, Air Force’’, $16,461,000: Provided, That notwith-
standing any other provision of law, such funds may be obligated 
and expended for maintenance and repair and minor construction 
projects in the United States not otherwise authorized by law. 
HOMEOWNERS ASSISTANCE FUND 
For an additional amount for ‘‘Homeowners Assistance Fund’’, 
established by section 1013 of the Demonstration Cities and Metro-
politan Development Act of 1966, as amended (42 U.S.C. 3374), 
$555,000,000, to remain available until expended: Provided, That 
the Secretary of Defense shall submit quarterly reports to the 
Committees on Appropriations of both Houses of Congress on the 
expenditure of funds made available under this heading in this 
or any other Act. 
ADMINISTRATIVE PROVISION 
SEC. 1001. (a) TEMPORARY EXPANSION OF HOMEOWNERS ASSIST-
ANCE PROGRAM
TO RESPOND
TO MORTGAGE FORECLOSURE
AND 
CREDIT CRISIS. Section 1013 of the Demonstration Cities and Metro-
politan Development Act of 1966 (42 U.S.C. 3374) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (1), (2), and (3) as 
clauses (i), (ii), and (iii), respectively, and indenting such 
subparagraphs, as so redesignated, 6 ems from the left 
margin; 
(B) by striking ‘‘Notwithstanding any other provision 
of law’’ and inserting the following: 
‘‘(1) ACQUISITION
OF
PROPERTY
AT
OR
NEAR
MILITARY 
INSTALLATIONS
THAT
HAVE
BEEN
ORDERED
TO
BE
CLOSED.— 
Notwithstanding any other provision of law’’; 
(C) by striking ‘‘if he determines’’ and inserting ‘‘if— 
‘‘(A) the Secretary determines—’’; 
(D) in clause (iii), as redesignated by subparagraph 
(A), by striking the period at the end and inserting ‘‘; 
or’’; and 
(E) by adding at the end the following: 
‘‘(B) the Secretary determines— 
‘‘(i) that the conditions in clauses (i) and (ii) of 
subparagraph (A) have been met; 
‘‘(ii) that the closing or realignment of the base 
or installation resulted from a realignment or closure 
carried out under the 2005 round of defense base clo-
sure and realignment under the Defense Base Closure 
and Realignment Act of 1990 (part XXIX of Public 
Law 101–510; 10 U.S.C. 2687 note); 
‘‘(iii) that the property was purchased by the owner 
before July 1, 2006; 
‘‘(iv) that the property was sold by the owner 
between July 1, 2006, and September 30, 2012, or 
an earlier end date designated by the Secretary; 
Reports. 
Deadlines. 
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123 STAT. 195 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(v) that the property is the primary residence 
of the owner; and 
‘‘(vi) that the owner has not previously received 
benefit payments authorized under this subsection. 
‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED MEMBERS OF 
THE
ARMED
FORCES, DEPARTMENT
OF
DEFENSE
AND
UNITED 
STATES
COAST
GUARD
CIVILIAN
EMPLOYEES, 
AND
THEIR 
SPOUSES.—Notwithstanding any other provision of law, the Sec-
retary of Defense is authorized to acquire title to, hold, manage, 
and dispose of, or, in lieu thereof, to reimburse for certain 
losses upon private sale of, or foreclosure against, any property 
improved with a one- or two-family dwelling which was at 
the time of the relevant wound, injury, or illness, the primary 
residence of— 
‘‘(A) any member of the Armed Forces in medical 
transition who— 
‘‘(i) incurred a wound, injury, or illness in the 
line of duty during a deployment in support of the 
Armed Forces; 
‘‘(ii) is disabled to a degree of 30 percent or more 
as a result of such wound, injury, or illness, as deter-
mined by the Secretary of Defense; and 
‘‘(iii) is reassigned in furtherance of medical treat-
ment or rehabilitation, or due to medical retirement 
in connection with such disability; 
‘‘(B) any civilian employee of the Department of 
Defense or the United States Coast Guard who— 
‘‘(i) was wounded, injured, or became ill in the 
performance of his or her duties during a forward 
deployment occurring on or after September 11, 2001, 
in support of the Armed Forces; and 
‘‘(ii) is reassigned in furtherance of medical treat-
ment, rehabilitation, or due to medical retirement 
resulting from the sustained disability; or 
‘‘(C) the spouse of a member of the Armed Forces 
or a civilian employee of the Department of Defense or 
the United States Coast Guard if— 
‘‘(i) the member or employee was killed in the 
line of duty or in the performance of his or her duties 
during a deployment on or after September 11, 2001, 
in support of the Armed Forces or died from a wound, 
injury, or illness incurred in the line of duty during 
such a deployment; and 
‘‘(ii) the spouse relocates from such residence 
within 2 years after the death of such member or 
employee. 
‘‘(3) TEMPORARY HOMEOWNER ASSISTANCE FOR MEMBERS OF 
THE ARMED FORCES PERMANENTLY REASSIGNED DURING SPECI-
FIED MORTGAGE CRISIS.—Notwithstanding any other provision 
of law, the Secretary of Defense is authorized to acquire title 
to, hold, manage, and dispose of, or, in lieu thereof, to reimburse 
for certain losses upon private sale of, or foreclosure against, 
any property improved with a one- or two-family dwelling situ-
ated at or near a military base or installation, if the Secretary 
determines— 
‘‘(A) that the owner is a member of the Armed Forces 
serving on permanent assignment; 
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123 STAT. 196 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) that the owner is permanently reassigned by order 
of the United States Government to a duty station or 
home port outside a 50-mile radius of the base or installa-
tion; 
‘‘(C) that the reassignment was ordered between Feb-
ruary 1, 2006, and September 30, 2012, or an earlier end 
date designated by the Secretary; 
‘‘(D) that the property was purchased by the owner 
before July 1, 2006; 
‘‘(E) that the property was sold by the owner between 
July 1, 2006, and September 30, 2012, or an earlier end 
date designated by the Secretary; 
‘‘(F) that the property is the primary residence of the 
owner; and 
‘‘(G) that the owner has not previously received benefit 
payments authorized under this subsection.’’; 
(2) in subsection (b), by striking ‘‘this section’’ each place 
it appears and inserting ‘‘subsection (a)(1)’’; 
(3) in subsection (c)— 
(A) by striking ‘‘Such persons’’ and inserting the fol-
lowing: 
‘‘(1) HOMEOWNER ASSISTANCE RELATED TO CLOSED MILITARY 
INSTALLATIONS.— 
‘‘(A) IN GENERAL.—Such persons’’; 
(B) by striking ‘‘set forth above shall elect either (1) 
to receive’’ and inserting the following: ‘‘set forth in sub-
section (a)(1) shall elect either— 
‘‘(i) to receive’’; 
(C) by striking ‘‘difference between (A) 95 per centum’’ 
and all that follows through ‘‘(B) the fair market value’’ 
and inserting the following: ‘‘difference between— 
‘‘(I) 95 per centum of the fair market value 
of their property (as such value is determined by 
the Secretary of Defense) prior to public announce-
ment of intention to close all or part of the military 
base or installation; and 
‘‘(II) the fair market value’’; 
(D) by striking ‘‘time of the sale, or (2) to receive’’ 
and inserting the following: ‘‘time of the sale; or 
‘‘(ii) to receive’’; 
(E) by striking ‘‘outstanding mortgages. The Secretary 
may also pay a person who elects to receive a cash payment 
under clause (1) of the preceding sentence an amount’’ 
and inserting ‘‘outstanding mortgages. 
‘‘(B) REIMBURSEMENT
OF
EXPENSES.—The Secretary 
may also pay a person who elects to receive a cash payment 
under subparagraph (A) an amount’’; and 
(F) by striking ‘‘best interest of the Federal Govern-
ment. Cash payment’’ and inserting the following: ‘‘best 
interest of the United States. 
‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED INDIVIDUALS 
AND THEIR SPOUSES.— 
‘‘(A) IN GENERAL.—Persons eligible under the criteria 
set forth in subsection (a)(2) may elect either— 
‘‘(i) to receive a cash payment as compensation 
for losses which may be or have been sustained in 
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123 STAT. 197 
PUBLIC LAW 111–5—FEB. 17, 2009 
a private sale, in an amount not to exceed the dif-
ference between— 
‘‘(I) 95 per centum of prior fair market value 
of their property (as such value is determined by 
the Secretary of Defense); and 
‘‘(II) the fair market value of such property 
(as such value is determined by the Secretary of 
Defense) at the time of sale; or 
‘‘(ii) to receive, as purchase price for their property 
an amount not to exceed 90 per centum of prior fair 
market value as such value is determined by the Sec-
retary of Defense, or the amount of the outstanding 
mortgages. 
‘‘(B) DETERMINATION OF BENEFITS.—The Secretary may 
also pay a person who elects to receive a cash payment 
under subparagraph (A) an amount that the Secretary 
determines appropriate to reimburse the person for the 
costs incurred by the person in the sale of the property 
if the Secretary determines that such payment will benefit 
the person and is in the best interest of the United States. 
‘‘(3) 
HOMEOWNER
ASSISTANCE
FOR
PERMANENTLY 
REASSIGNED INDIVIDUALS.— 
‘‘(A) IN GENERAL.—Persons eligible under the criteria 
set forth in subsection (a)(3) may elect either— 
‘‘(i) to receive a cash payment as compensation 
for losses which may be or have been sustained in 
a private sale, in an amount not to exceed the dif-
ference between— 
‘‘(I) 95 per centum of prior fair market value 
of their property (as such value is determined by 
the Secretary of Defense); and 
‘‘(II) the fair market value of such property 
(as such value is determined by the Secretary of 
Defense) at the time of sale; or 
‘‘(ii) to receive, as purchase price for their property 
an amount not to exceed 90 per centum of prior fair 
market value as such value is determined by the Sec-
retary of Defense, or the amount of the outstanding 
mortgages. 
‘‘(B) DETERMINATION OF BENEFITS.—The Secretary may 
also pay a person who elects to receive a cash payment 
under subparagraph (A) an amount that the Secretary 
determines appropriate to reimburse the person for the 
costs incurred by the person in the sale of the property 
if the Secretary determines that such payment will benefit 
the person and is in the best interest of the United States. 
‘‘(4) COMPENSATION AND LIMITATIONS RELATED TO FORE-
CLOSURES AND ENCUMBRANCES.—Cash payment’’; 
(4) by striking subsection (g); 
(5) in subsection (l), by striking ‘‘(a)(2)’’ and inserting 
‘‘(a)(1)(A)(ii)’’; 
(6) in subsection (m), by striking ‘‘this section’’ and inserting 
‘‘subsection (a)(1)’’; 
(7) in subsection (n)— 
(A) in paragraph (1), by striking ‘‘this section’’ and 
inserting ‘‘subsection (a)(1)’’; and 
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123 STAT. 198 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) in paragraph (2), by striking ‘‘this section’’ and 
inserting ‘‘subsection (a)(1)’’; 
(8) in subsection (o)— 
(A) in paragraph (1), by striking ‘‘this section’’ and 
inserting ‘‘subsection (a)(1)’’; 
(B) in paragraph (2), by striking ‘‘this section’’ and 
inserting ‘‘subsection (a)(1)’’; and 
(C) by striking paragraph (4); and 
(9) by adding at the end the following new subsection: 
‘‘(p) DEFINITIONS.—In this section: 
‘‘(1) the term ‘Armed Forces’ has the meaning given the 
term ‘armed forces’ in section 101(a) of title 10, United States 
Code; 
‘‘(2) the term ‘civilian employee’ has the meaning given 
the term ‘employee’ in section 2105(a) of title 5, United States 
Code; 
‘‘(3) the term ‘medical transition’, in the case of a member 
of the Armed Forces, means a member who— 
‘‘(A) is in Medical Holdover status; 
‘‘(B) is in Active Duty Medical Extension status; 
‘‘(C) is in Medical Hold status; 
‘‘(D) is in a status pending an evaluation by a medical 
evaluation board; 
‘‘(E) has a complex medical need requiring six or more 
months of medical treatment; or 
‘‘(F) is assigned or attached to an Army Warrior Transi-
tion Unit, an Air Force Patient Squadron, a Navy Patient 
Multidisciplinary Care Team, or a Marine Patient Affairs 
Team/Wounded Warrior Regiment; and 
‘‘(4) the term ‘nonappropriated fund instrumentality 
employee’ means a civilian employee who— 
‘‘(A) is a citizen of the United States; and 
‘‘(B) is paid from nonappropriated funds of Army and 
Air Force Exchange Service, Navy Resale and Services 
Support Office, Marine Corps exchanges, or any other 
instrumentality of the United States under the jurisdiction 
of the Armed Forces which is conducted for the comfort, 
pleasure, contentment, or physical or mental improvement 
of members of the Armed Forces.’’. 
(b) CLERICAL AMENDMENT.—Such section is further amended 
in the section heading by inserting ‘‘and certain property owned 
by members of the Armed Forces, Department of Defense and 
United States Coast Guard civilian employees, and surviving 
spouses’’ after ‘‘ordered to be closed’’. 
(c) AUTHORITY TO USE APPROPRIATED FUNDS.—Notwithstanding 
subsection (i) of such section, amounts appropriated or otherwise 
made available by this title under the heading ‘‘Homeowners Assist-
ance Fund’’ may be used for the Homeowners Assistance Fund 
established under such section. 
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123 STAT. 199 
PUBLIC LAW 111–5—FEB. 17, 2009 
DEPARTMENT OF VETERANS AFFAIRS 
VETERANS HEALTH ADMINISTRATION 
MEDICAL FACILITIES 
For an additional amount for ‘‘Medical Facilities’’ for non-recur-
ring maintenance, including energy projects, $1,000,000,000, to 
remain available until September 30, 2010: Provided, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Veterans Affairs shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan 
for funds provided under this heading. 
NATIONAL CEMETERY ADMINISTRATION 
For an additional amount for ‘‘National Cemetery Administra-
tion’’ for monument and memorial repairs, including energy projects, 
$50,000,000, to remain available until September 30, 2010: Pro-
vided, That not later than 30 days after the date of enactment 
of this Act, the Secretary of Veterans Affairs shall submit to the 
Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading. 
DEPARTMENTAL ADMINISTRATION 
GENERAL OPERATING EXPENSES 
For an additional amount for ‘‘General Operating Expenses’’, 
$150,000,000, to remain available until September 30, 2010, for 
additional expenses related to hiring and training temporary surge 
claims processors. 
INFORMATION TECHNOLOGY SYSTEMS 
For an additional amount for ‘‘Information Technology Sys-
tems’’, $50,000,000, to remain available until September 30, 2010, 
for the Veterans Benefits Administration: Provided, That not later 
than 30 days after the enactment of this Act, the Secretary of 
Veterans Affairs shall submit to the Committees on Appropriations 
of both Houses of Congress an expenditure plan for funds provided 
under this heading. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’, 
$1,000,000, to remain available until September 30, 2011, for over-
sight and audit of programs, grants and projects funded under 
this title. 
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES 
For an additional amount for ‘‘Grants for Construction of State 
Extended Care Facilities’’, $150,000,000, to remain available until 
September 30, 2010, for grants to assist States to acquire or con-
struct State nursing home and domiciliary facilities and to remodel, 
modify, or alter existing hospital, nursing home, and domiciliary 
facilities in State homes, for furnishing care to veterans as author-
ized by sections 8131 through 8137 of title 38, United States Code. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
Deadline. 
Expenditure 
plan. 
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123 STAT. 200 
PUBLIC LAW 111–5—FEB. 17, 2009 
ADMINISTRATIVE PROVISION 
SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS WHO SERVED IN 
THE UNITED STATES ARMED FORCES
IN
THE FAR EAST DURING 
WORLD WAR II. (a) FINDINGS.—Congress makes the following 
findings: 
(1) The Philippine islands became a United States posses-
sion in 1898 when they were ceded from Spain following the 
Spanish-American War. 
(2) During World War II, Filipinos served in a variety 
of units, some of which came under the direct control of the 
United States Armed Forces. 
(3) The regular Philippine Scouts, the new Philippine 
Scouts, the Guerrilla Services, and more than 100,000 members 
of the Philippine Commonwealth Army were called into the 
service of the United States Armed Forces of the Far East 
on July 26, 1941, by an executive order of President Franklin 
D. Roosevelt. 
(4) Even after hostilities had ceased, wartime service of 
the new Philippine Scouts continued as a matter of law until 
the end of 1946, and the force gradually disbanded and was 
disestablished in 1950. 
(5) Filipino veterans who were granted benefits prior to 
the enactment of the so-called Rescissions Acts of 1946 (Public 
Laws 79–301 and 79–391) currently receive full benefits under 
laws administered by the Secretary of Veterans Affairs, but 
under section 107 of title 38, United States Code, the service 
of certain other Filipino veterans is deemed not to be active 
service for purposes of such laws. 
(6) These other Filipino veterans only receive certain bene-
fits under title 38, United States Code, and, depending on 
where they legally reside, are paid such benefit amounts at 
reduced rates. 
(7) The benefits such veterans receive include service-con-
nected compensation benefits paid under chapter 11 of title 
38, United States Code, dependency indemnity compensation 
survivor benefits paid under chapter 13 of title 38, United 
States Code, and burial benefits under chapters 23 and 24 
of title 38, United States Code, and such benefits are paid 
to beneficiaries at the rate of $0.50 per dollar authorized, 
unless they lawfully reside in the United States. 
(8) Dependents’ educational assistance under chapter 35 
of title 38, United States Code, is also payable for the depend-
ents of such veterans at the rate of $0.50 per dollar authorized, 
regardless of the veterans’ residency. 
(b) COMPENSATION FUND.— 
(1) IN GENERAL.—There is in the general fund of the 
Treasury a fund to be known as the ‘‘Filipino Veterans Equity 
Compensation Fund’’ (in this section referred to as the ‘‘com-
pensation fund’’). 
(2) AVAILABILITY
OF FUNDS.—Subject to the availability 
of appropriations for such purpose, amounts in the fund shall 
be available to the Secretary of Veterans Affairs without fiscal 
year limitation to make payments to eligible persons in accord-
ance with this section. 
(c) PAYMENTS.— 
38 USC 107 note. 
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123 STAT. 201 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN GENERAL.—The Secretary may make a payment 
from the compensation fund to an eligible person who, during 
the one-year period beginning on the date of the enactment 
of this Act, submits to the Secretary a claim for benefits under 
this section. The application for the claim shall contain such 
information and evidence as the Secretary may require. 
(2) PAYMENT TO SURVIVING SPOUSE.—If an eligible person 
who has filed a claim for benefits under this section dies before 
payment is made under this section, the payment under this 
section shall be made instead to the surviving spouse, if any, 
of the eligible person. 
(d) ELIGIBLE PERSONS.—An eligible person is any person who— 
(1) served— 
(A) before July 1, 1946, in the organized military forces 
of the Government of the Commonwealth of the Philippines, 
while such forces were in the service of the Armed Forces 
of the United States pursuant to the military order of 
the President dated July 26, 1941, including among such 
military forces organized guerrilla forces under com-
manders appointed, designated, or subsequently recognized 
by the Commander in Chief, Southwest Pacific Area, or 
other competent authority in the Army of the United 
States; or 
(B) in the Philippine Scouts under section 14 of the 
Armed Forces Voluntary Recruitment Act of 1945 (59 Stat. 
538); and 
(2) was discharged or released from service described in 
paragraph (1) under conditions other than dishonorable. 
(e) PAYMENT AMOUNTS.—Each payment under this section shall 
be— 
(1) in the case of an eligible person who is not a citizen 
of the United States, in the amount of $9,000; and 
(2) in the case of an eligible person who is a citizen of 
the United States, in the amount of $15,000. 
(f) LIMITATION.—The Secretary may not make more than one 
payment under this section for each eligible person described in 
subsection (d). 
(g) CLARIFICATION OF TREATMENT OF PAYMENTS UNDER CER-
TAIN LAWS.—Amounts paid to a person under this section— 
(1) shall be treated for purposes of the internal revenue 
laws of the United States as damages for human suffering; 
and 
(2) shall not be included in income or resources for purposes 
of determining— 
(A) eligibility of an individual to receive benefits 
described in section 3803(c)(2)(C) of title 31, United States 
Code, or the amount of such benefits; 
(B) eligibility of an individual to receive benefits under 
title VIII of the Social Security Act, or the amount of 
such benefits; or 
(C) eligibility of an individual for, or the amount of 
benefits under, any other Federal or federally assisted pro-
gram. 
(h) RELEASE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), 
the acceptance by an eligible person or surviving spouse, as 
applicable, of a payment under this section shall be final, 
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123 STAT. 202 
PUBLIC LAW 111–5—FEB. 17, 2009 
and shall constitute a complete release of any claim against 
the United States by reason of any service described in sub-
section (d). 
(2) PAYMENT OF PRIOR ELIGIBILITY STATUS.—Nothing in 
this section shall prohibit a person from receiving any benefit 
(including health care, survivor, or burial benefits) which the 
person would have been eligible to receive based on laws in 
effect as of the day before the date of the enactment of this 
Act. 
(i) RECOGNITION
OF SERVICE.—The service of a person as 
described in subsection (d) is hereby recognized as active military 
service in the Armed Forces for purposes of, and to the extent 
provided in, this section. 
(j) ADMINISTRATION.— 
(1) The Secretary shall promptly issue application forms 
and instructions to ensure the prompt and efficient administra-
tion of the provisions of this section. 
(2) The Secretary shall administer the provisions of this 
section in a manner consistent with applicable provisions of 
title 38, United States Code, and other provisions of law, and 
shall apply the definitions in section 101 of such title in the 
administration of such provisions, except to the extent other-
wise provided in this section. 
(k) REPORTS.—The Secretary shall include, in documents sub-
mitted to Congress by the Secretary in support of the President’s 
budget for each fiscal year, detailed information on the operation 
of the compensation fund, including the number of applicants, the 
number of eligible persons receiving benefits, the amounts paid 
out of the compensation fund, and the administration of the com-
pensation fund for the most recent fiscal year for which such data 
is available. 
(l) AUTHORIZATION OF APPROPRIATION.—There is authorized to 
be appropriated to the compensation fund $198,000,000, to remain 
available until expended, to make payments under this section. 
TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED 
PROGRAMS 
DEPARTMENT OF STATE 
ADMINISTRATION OF FOREIGN AFFAIRS 
DIPLOMATIC AND CONSULAR PROGRAMS 
For an additional amount for ‘‘Diplomatic and Consular Pro-
grams’’ for urgent domestic facilities requirements for passport and 
training functions, $90,000,000: Provided, That the Secretary of 
State shall submit to the Committees on Appropriations within 
90 days of enactment of this Act a detailed spending plan for 
funds appropriated under this heading: Provided further, That with 
respect to the funds made available for passport agencies, such 
plan shall be developed in consultation with the Department of 
Homeland Security and the General Services Administration and 
shall coordinate and co-locate, to the extent feasible, passport agen-
cies with other Federal facilities. 
Deadline. 
Spending plan. 
Applications. 
Instructions. 
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123 STAT. 203 
PUBLIC LAW 111–5—FEB. 17, 2009 
CAPITAL INVESTMENT FUND 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Capital Investment Fund’’, 
$290,000,000, for information technology security and upgrades to 
support mission-critical operations, of which up to $38,000,000 shall 
be transferred to, and merged with, funds made available under 
the heading ‘‘Capital Investment Fund’’ of the United States Agency 
for International Development: Provided, That the Secretary of 
State and the Administrator of the United States Agency for Inter-
national Development shall coordinate information technology sys-
tems, where appropriate, to increase efficiencies and eliminate 
redundancies, to include co-location of backup information manage-
ment facilities, and shall submit to the Committees on Appropria-
tions within 90 days of enactment of this Act a detailed spending 
plan for funds appropriated under this heading. 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for ‘‘Office of Inspector General’’ 
for oversight requirements, $2,000,000. 
INTERNATIONAL COMMISSIONS 
INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES 
AND MEXICO 
CONSTRUCTION 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount for ‘‘Construction’’ for the water 
quantity program to meet immediate repair and rehabilitation 
requirements, $220,000,000: Provided, That up to $2,000,000 may 
be transferred to, and merged with, funds available under the 
heading ‘‘International Boundary and Water Commission, United 
States and Mexico—Salaries and Expenses’’: Provided further, That 
the Secretary of State shall submit to the Committees on Appropria-
tions within 90 days of enactment of this Act a detailed spending 
plan for funds appropriated under this heading. 
TITLE XII—TRANSPORTATION AND HOUSING AND URBAN 
DEVELOPMENT, AND RELATED AGENCIES 
DEPARTMENT OF TRANSPORTATION 
OFFICE OF THE SECRETARY 
SUPPLEMENTAL DISCRETIONARY GRANTS FOR A NATIONAL SURFACE 
TRANSPORTATION SYSTEM 
For an additional amount for capital investments in surface 
transportation infrastructure, $1,500,000,000, to remain available 
through September 30, 2011: Provided, That the Secretary of 
Transportation shall distribute funds provided under this heading 
as discretionary grants to be awarded to State and local govern-
ments or transit agencies on a competitive basis for projects that 
will have a significant impact on the Nation, a metropolitan area, 
Deadline. 
Spending plan. 
Deadline. 
Spending plan. 
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123 STAT. 204 
PUBLIC LAW 111–5—FEB. 17, 2009 
or a region: Provided further, That projects eligible for funding 
provided under this heading shall include, but not be limited to, 
highway or bridge projects eligible under title 23, United States 
Code, including interstate rehabilitation, improvements to the rural 
collector road system, the reconstruction of overpasses and inter-
changes, bridge replacements, seismic retrofit projects for bridges, 
and road realignments; public transportation projects eligible under 
chapter 53 of title 49, United States Code, including investments 
in projects participating in the New Starts or Small Starts programs 
that will expedite the completion of those projects and their entry 
into revenue service; passenger and freight rail transportation 
projects; and port infrastructure investments, including projects 
that connect ports to other modes of transportation and improve 
the efficiency of freight movement: Provided further, That of the 
amount made available under this paragraph, the Secretary may 
use an amount not to exceed $200,000,000 for the purpose of paying 
the subsidy and administrative costs of projects eligible for federal 
credit assistance under chapter 6 of title 23, United States Code, 
if the Secretary finds that such use of the funds would advance 
the purposes of this paragraph: Provided further, That in distrib-
uting funds provided under this heading, the Secretary shall take 
such measures so as to ensure an equitable geographic distribution 
of funds and an appropriate balance in addressing the needs of 
urban and rural communities: Provided further, That a grant funded 
under this heading shall be not less than $20,000,000 and not 
greater than $300,000,000: Provided further, That the Secretary 
may waive the minimum grant size cited in the preceding proviso 
for the purpose of funding significant projects in smaller cities, 
regions, or States: Provided further, That not more than 20 percent 
of the funds made available under this paragraph may be awarded 
to projects in a single State: Provided further, That the Federal 
share of the costs for which an expenditure is made under this 
heading may be up to 100 percent: Provided further, That the 
Secretary shall give priority to projects that require a contribution 
of Federal funds in order to complete an overall financing package, 
and to projects that are expected to be completed within 3 years 
of enactment of this Act: Provided further, That the Secretary 
shall publish criteria on which to base the competition for any 
grants awarded under this heading not later than 90 days after 
enactment of this Act: Provided further, That the Secretary shall 
require applications for funding provided under this heading to 
be submitted not later than 180 days after the publication of such 
criteria, and announce all projects selected to be funded from such 
funds not later than 1 year after enactment of this Act: Provided 
further, That projects conducted using funds provided under this 
heading must comply with the requirements of subchapter IV of 
chapter 31 of title 40, United States Code: Provided further, That 
the Secretary may retain up to $1,500,000 of the funds provided 
under this heading, and may transfer portions of those funds to 
the Administrators of the Federal Highway Administration, the 
Federal Transit Administration, the Federal Railroad Administra-
tion and the Maritime Administration, to fund the award and 
oversight of grants made under this heading. 
Applications. 
Deadlines. 
Publication. 
Criteria. 
Deadline. 
Waiver authority. 
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123 STAT. 205 
PUBLIC LAW 111–5—FEB. 17, 2009 
FEDERAL AVIATION ADMINISTRATION 
SUPPLEMENTAL FUNDING FOR FACILITIES AND EQUIPMENT 
For an additional amount for necessary investments in Federal 
Aviation Administration infrastructure, $200,000,000, to remain 
available through September 30, 2010: Provided, That funding pro-
vided under this heading shall be used to make improvements 
to power systems, air route traffic control centers, air traffic control 
towers, terminal radar approach control facilities, and navigation 
and landing equipment: Provided further, That priority be given 
to such projects or activities that will be completed within 2 years 
of enactment of this Act: Provided further, That amounts made 
available under this heading may be provided through grants in 
addition to the other instruments authorized under section 106(l)(6) 
of title 49, United States Code: Provided further, That the Federal 
share of the costs for which an expenditure is made under this 
heading shall be 100 percent: Provided further, That amounts pro-
vided under this heading may be used for expenses the agency 
incurs in administering this program: Provided further, That not 
more than 60 days after enactment of this Act, the Administrator 
shall establish a process for applying, reviewing and awarding 
grants and cooperative and other transaction agreements, including 
the form and content of an application, and requirements for the 
maintenance of records that are necessary to facilitate an effective 
audit of the use of the funding provided: Provided further, That 
section 50101 of title 49, United States Code, shall apply to funds 
provided under this heading. 
GRANTS-IN-AID FOR AIRPORTS 
For an additional amount for ‘‘Grants-In-Aid for Airports’’, to 
enable the Secretary of Transportation to make grants for discre-
tionary projects as authorized by subchapter 1 of chapter 471 and 
subchapter 1 of chapter 475 of title 49, United States Code, and 
for the procurement, installation and commissioning of runway 
incursion prevention devices and systems at airports of such title, 
$1,100,000,000, to remain available through September 30, 2010: 
Provided, That such funds shall not be subject to apportionment 
formulas, special apportionment categories, or minimum percent-
ages under chapter 471: Provided further, That the Secretary shall 
distribute funds provided under this heading as discretionary grants 
to airports, with priority given to those projects that demonstrate 
to his satisfaction their ability to be completed within 2 years 
of enactment of this Act, and serve to supplement and not supplant 
planned expenditures from airport-generated revenues or from other 
State and local sources on such activities: Provided further, That 
the Secretary shall award grants totaling not less than 50 percent 
of the funds made available under this heading within 120 days 
of enactment of this Act, and award grants for the remaining 
amounts not later than 1 year after enactment of this Act: Provided 
further, That the Federal share payable of the costs for which 
a grant is made under this heading shall be 100 percent: Provided 
further, That the amount made available under this heading shall 
not be subject to any limitation on obligations for the Grants- 
in-Aid for Airports program set forth in any Act: Provided further, 
That the Administrator of the Federal Aviation Administration 
may retain up to 0.2 percent of the funds provided under this 
Deadlines. 
Applicability. 
Deadline. 
Procedures. 
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123 STAT. 206 
PUBLIC LAW 111–5—FEB. 17, 2009 
heading to fund the award and oversight by the Administrator 
of grants made under this heading. 
FEDERAL HIGHWAY ADMINISTRATION 
HIGHWAY INFRASTRUCTURE INVESTMENT 
For an additional amount for restoration, repair, construction 
and other activities eligible under paragraph (b) of section 133 
of title 23, United States Code, and for passenger and freight 
rail transportation and port infrastructure projects eligible for 
assistance under subsection 601(a)(8) of such title, $27,500,000,000, 
to remain available through September 30, 2010: Provided, That, 
after making the set-asides required under this heading, 50 percent 
of the funds made available under this heading shall be apportioned 
to States using the formula set forth in section 104(b)(3) of title 
23, United States Code, and the remaining funds shall be appor-
tioned to States in the same ratio as the obligation limitation 
for fiscal year 2008 was distributed among the States in accordance 
with the formula specified in section 120(a)(6) of division K of 
Public Law 110–161: Provided further, That funds made available 
under this heading shall be apportioned not later than 21 days 
after the date of enactment of this Act: Provided further, That 
in selecting projects to be carried out with funds apportioned under 
this heading, priority shall be given to projects that are projected 
for completion within a 3-year time frame, and are located in 
economically distressed areas as defined by section 301 of the 
Public Works and Economic Development Act of 1965, as amended 
(42 U.S.C. 3161): Provided further, That 120 days following the 
date of such apportionment, the Secretary of Transportation shall 
withdraw from each State an amount equal to 50 percent of the 
funds awarded to that State (excluding funds suballocated within 
the State) less the amount of funding obligated (excluding funds 
suballocated within the State), and the Secretary shall redistribute 
such amounts to other States that have had no funds withdrawn 
under this proviso in the manner described in section 120(c) of 
division K of Public Law 110–161: Provided further, That 1 year 
following the date of such apportionment, the Secretary shall with-
draw from each recipient of funds apportioned under this heading 
any unobligated funds, and the Secretary shall redistribute such 
amounts to States that have had no funds withdrawn under this 
proviso (excluding funds suballocated within the State) in the 
manner described in section 120(c) of division K of Public Law 
110–161: Provided further, That at the request of a State, the 
Secretary of Transportation may provide an extension of such 1- 
year period only to the extent that he feels satisfied that the 
State has encountered extreme conditions that create an unwork-
able bidding environment or other extenuating circumstances: Pro-
vided further, That before granting such an extension, the Secretary 
shall send a letter to the House and Senate Committees on Appro-
priations that provides a thorough justification for the extension: 
Provided further, That 3 percent of the funds apportioned to a 
State under this heading shall be set aside for the purposes 
described in subsection 133(d)(2) of title 23, United States Code 
(without regard to the comparison to fiscal year 2005): Provided 
further, That 30 percent of the funds apportioned to a State under 
this heading shall be suballocated within the State in the manner 
and for the purposes described in the first sentence of subsection 
Submission. 
Effective date. 
Effective date. 
Deadline. 
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123 STAT. 207 
PUBLIC LAW 111–5—FEB. 17, 2009 
133(d)(3)(A), 
in 
subsection 
133(d)(3)(B), 
and 
in 
subsection 
133(d)(3)(D): Provided further, That such suballocation shall be 
conducted in every State: Provided further, That funds suballocated 
within a State to urbanized areas and other areas shall not be 
subject to the redistribution of amounts required 120 days following 
the date of apportionment of funds provided under this heading: 
Provided further, That of the funds provided under this heading, 
$105,000,000 shall be for the Puerto Rico highway program author-
ized under section 165 of title 23, United States Code, and 
$45,000,000 shall be for the territorial highway program authorized 
under section 215 of title 23, United States Code: Provided further, 
That of the funds provided under this heading, $60,000,000 shall 
be for capital expenditures eligible under section 147 of title 23, 
United States Code (without regard to subsection(d)): Provided fur-
ther, That the Secretary of Transportation shall distribute such 
$60,000,000 as competitive discretionary grants to States, with 
priority given to those projects that demonstrate to his satisfaction 
their ability to be completed within 2 years of enactment of this 
Act: Provided further, That of the funds provided under this 
heading, $550,000,000 shall be for investments in transportation 
at Indian reservations and Federal lands: Provided further, That 
of the funds identified in the preceding proviso, $310,000,000 shall 
be for the Indian Reservation Roads program, $170,000,000 shall 
be for the Park Roads and Parkways program, $60,000,000 shall 
be for the Forest Highway Program, and $10,000,000 shall be 
for the Refuge Roads program: Provided further, That for invest-
ments at Indian reservations and Federal lands, priority shall be 
given to capital investments, and to projects and activities that 
can be completed within 2 years of enactment of this Act: Provided 
further, That 1 year following the enactment of this Act, to ensure 
the prompt use of the $550,000,000 provided for investments at 
Indian reservations and Federal lands, the Secretary shall have 
the authority to redistribute unobligated funds within the respective 
program for which the funds were appropriated: Provided further, 
That up to 4 percent of the funding provided for Indian Reservation 
Roads may be used by the Secretary of the Interior for program 
management and oversight and project-related administrative 
expenses: Provided further, That section 134(f)(3)(C)(ii)(II) of title 
23, United States Code, shall not apply to funds provided under 
this heading: Provided further, That of the funds made available 
under this heading, $20,000,000 shall be for highway surface 
transportation and technology training under section 140(b) of title 
23, United States Code, and $20,000,000 shall be for disadvantaged 
business enterprises bonding assistance under section 332(e) of 
title 49, United States Code: Provided further, That funds made 
available under this heading shall be administered as if apportioned 
under chapter 1 of title 23, United States Code, except for funds 
made available for investments in transportation at Indian reserva-
tions and Federal lands, and for the territorial highway program, 
which shall be administered in accordance with chapter 2 of title 
23, United States Code, and except for funds made available for 
disadvantaged business enterprises bonding assistance, which shall 
be administered in accordance with chapter 3 of title 49, United 
States Code: Provided further, That the Federal share payable 
on account of any project or activity carried out with funds made 
available under this heading shall be, at the option of the recipient, 
up to 100 percent of the total cost thereof: Provided further, That 
Effective date. 
Redistribution 
authority. 
Grants. 
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123 STAT. 208 
PUBLIC LAW 111–5—FEB. 17, 2009 
funds made available by this Act shall not be obligated for the 
purposes authorized under section 115(b) of title 23, United States 
Code: Provided further, That funding provided under this heading 
shall be in addition to any and all funds provided for fiscal years 
2009 and 2010 in any other Act for ‘‘Federal-aid Highways’’ and 
shall not affect the distribution of funds provided for ‘‘Federal- 
aid Highways’’ in any other Act: Provided further, That the amount 
made available under this heading shall not be subject to any 
limitation on obligations for Federal-aid highways or highway safety 
construction programs set forth in any Act: Provided further, That 
section 1101(b) of Public Law 109–59 shall apply to funds appor-
tioned under this heading: Provided further, That the Administrator 
of the Federal Highway Administration may retain up to 
$40,000,000 of the funds provided under this heading to fund the 
oversight by the Administrator of projects and activities carried 
out with funds made available to the Federal Highway Administra-
tion in this Act, and such funds shall be available through Sep-
tember 30, 2012. 
FEDERAL RAILROAD ADMINISTRATION 
CAPITAL ASSISTANCE FOR HIGH SPEED RAIL CORRIDORS AND 
INTERCITY PASSENGER RAIL SERVICE 
For an additional amount for section 501 of Public Law 110– 
432 and discretionary grants to States to pay for the cost of projects 
described in paragraphs (2)(A) and (2)(B) of section 24401 of title 
49, United States Code, subsection (b) of section 24105 of such 
title, $8,000,000,000, to remain available through September 30, 
2012: Provided, That the Secretary of Transportation shall give 
priority to projects that support the development of intercity high 
speed rail service: Provided further, That within 60 days of the 
enactment of this Act, the Secretary shall submit to the House 
and Senate Committees on Appropriations a strategic plan that 
describes how the Secretary will use the funding provided under 
this heading to improve and deploy high speed passenger rail sys-
tems: Provided further, That within 120 days of enactment of this 
Act, the Secretary shall issue interim guidance to applicants cov-
ering grant terms, conditions, and procedures until final regulations 
are issued: Provided further, That such interim guidance shall 
provide separate instructions for the high speed rail corridor pro-
gram, capital assistance for intercity passenger rail service grants, 
and congestion grants: Provided further, That the Secretary shall 
waive the requirement that a project conducted using funds pro-
vided under this heading be in a State rail plan developed under 
chapter 227 of title 49, United States Code: Provided further, That 
the Federal share payable of the costs for which a grant is made 
under this heading shall be, at the option of the recipient, up 
to 100 percent: Provided further, That projects conducted using 
funds provided under this heading must comply with the require-
ments of subchapter IV of chapter 31 of title 40, United States 
Code: Provided further, That section 24405 of title 49, United States 
Code, shall apply to funds provided under this heading: Provided 
further, That the Administrator of the Federal Railroad Administra-
tion may retain up to one-quarter of 1 percent of the funds provided 
under this heading to fund the award and oversight by the Adminis-
trator of grants made under this heading, and funds retained for 
said purposes shall remain available through September 30, 2014. 
Applicability. 
Compliance. 
Waiver authority. 
Deadline. 
Guidance. 
Deadline. 
Strategic plan. 
Grants. 
Applicability. 
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123 STAT. 209 
PUBLIC LAW 111–5—FEB. 17, 2009 
CAPITAL GRANTS TO THE NATIONAL RAILROAD PASSENGER 
CORPORATION 
For an additional amount for the National Railroad Passenger 
Corporation (Amtrak) to enable the Secretary of Transportation 
to make capital grants to Amtrak as authorized by section 101(c) 
of the Passenger Rail Investment and Improvement Act of 2008 
(Public Law 110–432), $1,300,000,000, to remain available through 
September 30, 2010, of which $450,000,000 shall be used for capital 
security grants: Provided, That priority for the use of non-security 
funds shall be given to projects for the repair, rehabilitation, or 
upgrade of railroad assets or infrastructure, and for capital projects 
that expand passenger rail capacity including the rehabilitation 
of rolling stock: Provided further, That none of the funds under 
this heading shall be used to subsidize the operating losses of 
Amtrak: Provided further, That funds provided under this heading 
shall be awarded not later than 30 days after the date of enactment 
of this Act: Provided further, That the Secretary shall take measures 
to ensure that projects funded under this heading shall be completed 
within 2 years of enactment of this Act, and shall serve to supple-
ment and not supplant planned expenditures for such activities 
from other Federal, State, local and corporate sources: Provided 
further, That the Secretary shall certify to the House and Senate 
Committees on Appropriations in writing compliance with the pre-
ceding proviso: Provided further, That not more than 60 percent 
of the funds provided for non-security activities under this heading 
may be used for capital projects along the Northeast Corridor: 
Provided further, That of the funding provided under this heading, 
$5,000,000 shall be made available for the Amtrak Office of 
Inspector General and made available through September 30, 2013. 
FEDERAL TRANSIT ADMINISTRATION 
TRANSIT CAPITAL ASSISTANCE 
For an additional amount for transit capital assistance grants 
authorized under section 5302(a)(1) of title 49, United States Code, 
$6,900,000,000, to remain available through September 30, 2010: 
Provided, That the Secretary of Transportation shall provide 80 
percent of the funds appropriated under this heading for grants 
under section 5307 of title 49, United States Code, and apportion 
such funds in accordance with section 5336 of such title (other 
than subsections (i)(1) and (j)): Provided further, That the Secretary 
shall apportion 10 percent of the funds appropriated under this 
heading in accordance with section 5340 of such title: Provided 
further, That the Secretary shall provide 10 percent of the funds 
appropriated under this heading for grants under section 5311 
of title 49, United States Code, and apportion such funds in accord-
ance with such section: Provided further, That funds apportioned 
under this heading shall be apportioned not later than 21 days 
after the date of enactment of this Act: Provided further, That 
180 days following the date of such apportionment, the Secretary 
shall withdraw from each urbanized area or State an amount equal 
to 50 percent of the funds apportioned to such urbanized areas 
or States less the amount of funding obligated, and the Secretary 
shall redistribute such amounts to other urbanized areas or States 
that have had no funds withdrawn under this proviso utilizing 
whatever method he deems appropriate to ensure that all funds 
Effective date. 
Deadline. 
Grants. 
Certification. 
Deadline. 
Deadline. 
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123 STAT. 210 
PUBLIC LAW 111–5—FEB. 17, 2009 
redistributed under this proviso shall be utilized promptly: Provided 
further, That 1 year following the date of such apportionment, 
the Secretary shall withdraw from each urbanized area or State 
any unobligated funds, and the Secretary shall redistribute such 
amounts to other urbanized areas or States that have had no 
funds withdrawn under this proviso utilizing whatever method he 
deems appropriate to ensure that all funds redistributed under 
this proviso shall be utilized promptly: Provided further, That at 
the request of an urbanized area or State, the Secretary of Transpor-
tation may provide an extension of such 1-year period if he feels 
satisfied that the urbanized area or State has encountered an 
unworkable 
bidding 
environment 
or 
other 
extenuating 
cir-
cumstances: Provided further, That before granting such an exten-
sion, the Secretary shall send a letter to the House and Senate 
Committees on Appropriations that provides a thorough justification 
for the extension: Provided further, That of the funds provided 
for section 5311 of title 49, United States Code, 2.5 percent shall 
be made available for section 5311(c)(1): Provided further, That 
of the funding provided under this heading, $100,000,000 shall 
be distributed as discretionary grants to public transit agencies 
for capital investments that will assist in reducing the energy 
consumption or greenhouse gas emissions of their public transpor-
tation systems: Provided further, That for such grants on energy- 
related investments, priority shall be given to projects based on 
the total energy savings that are projected to result from the invest-
ment, and projected energy savings as a percentage of the total 
energy usage of the public transit agency: Provided further, That 
applicable chapter 53 requirements shall apply to funding provided 
under this heading, except that the Federal share of the costs 
for which any grant is made under this heading shall be, at the 
option of the recipient, up to 100 percent: Provided further, That 
the amount made available under this heading shall not be subject 
to any limitation on obligations for transit programs set forth in 
any Act: Provided further, That section 1101(b) of Public Law 109– 
59 shall apply to funds appropriated under this heading: Provided 
further, That the funds appropriated under this heading shall not 
be comingled with any prior year funds: Provided further, That 
notwithstanding any other provision of law, three-quarters of 1 
percent of the funds provided for grants under section 5307 and 
section 5340, and one-half of 1 percent of the funds provided for 
grants under section 5311, shall be available for administrative 
expenses and program management oversight, and such funds shall 
be available through September 30, 2012. 
FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT 
For an amount for capital expenditures authorized under sec-
tion 5309(b)(2) of title 49, United States Code, $750,000,000, to 
remain available through September 30, 2010: Provided, That the 
Secretary of Transportation shall apportion funds under this 
heading pursuant to the formula set forth in section 5337 of title 
49, United States Code: Provided further, That the funds appro-
priated under this heading shall not be commingled with any prior 
year funds: Provided further, That funds made available under 
this heading shall be apportioned not later than 21 days after 
the date of enactment of this Act: Provided further, That 180 
days following the date of such apportionment, the Secretary shall 
Effective date. 
Deadline. 
Applicability. 
Applicability. 
Submission. 
Effective date. 
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123 STAT. 211 
PUBLIC LAW 111–5—FEB. 17, 2009 
withdraw from each urbanized area an amount equal to 50 percent 
of the funds apportioned to such urbanized area less the amount 
of funding obligated, and the Secretary shall redistribute such 
amounts to other urbanized areas that have had no funds with-
drawn under this proviso utilizing whatever method he or she 
deems appropriate to ensure that all funds redistributed under 
this proviso shall be utilized promptly: Provided further, That 1 
year following the date of such apportionment, the Secretary shall 
withdraw from each urbanized area any unobligated funds, and 
the Secretary shall redistribute such amounts to other urbanized 
areas that have had no funds withdrawn under this proviso utilizing 
whatever method he or she deems appropriate to ensure that all 
funds redistributed under this proviso shall be utilized promptly: 
Provided further, That at the request of an urbanized area, the 
Secretary of Transportation may provide an extension of such 1- 
year period if he or she feels satisfied that the urbanized area 
has encountered an unworkable bidding environment or other 
extenuating circumstances: Provided further, That before granting 
such an extension, the Secretary shall send a letter to the House 
and Senate Committees on Appropriations that provides a thorough 
justification for the extension: Provided further, That applicable 
chapter 53 requirements shall apply except that the Federal share 
of the costs for which a grant is made under this heading shall 
be, at the option of the recipient, up to 100 percent: Provided 
further, That the provisions of section 1101(b) of Public Law 109– 
59 shall apply to funds made available under this heading: Provided 
further, That notwithstanding any other provision of law, up to 
1 percent of the funds under this heading shall be available for 
administrative expenses and program management oversight and 
shall remain available for obligation until September 30, 2012. 
CAPITAL INVESTMENT GRANTS 
For an additional amount for ‘‘Capital Investment Grants’’, 
as authorized under section 5338(c)(4) of title 49, United States 
Code, and allocated under section 5309(m)(2)(A) of such title, to 
enable the Secretary of Transportation to make discretionary grants 
as authorized by section 5309(d) and (e) of such title, $750,000,000, 
to remain available through September 30, 2010: Provided, That 
such amount shall be allocated without regard to the limitation 
under section 5309(m)(2)(A)(i): Provided further, That in selecting 
projects to be funded, priority shall be given to projects that are 
currently in construction or are able to obligate funds within 150 
days of enactment of this Act: Provided further, That the provisions 
of section 1101(b) of Public Law 109–59 shall apply to funds made 
available under this heading: Provided further, That funds appro-
priated under this heading shall not be commingled with any prior 
year funds: Provided further, That applicable chapter 53 require-
ments shall apply, except that notwithstanding any other provision 
of law, up to 1 percent of the funds provided under this heading 
shall be available for administrative expenses and program manage-
ment oversight, and shall remain available through September 30, 
2012. 
Applicability. 
Applicability. 
Applicability. 
Applicability. 
Submission. 
Effective date. 
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123 STAT. 212 
PUBLIC LAW 111–5—FEB. 17, 2009 
MARITIME ADMINISTRATION 
SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL SHIPYARDS 
To make grants to qualified shipyards as authorized under 
section 3508 of Public Law 110–417 or section 54101 of title 46, 
United States Code, $100,000,000, to remain available through 
September 30, 2010: Provided, That the Secretary of Transportation 
shall institute measures to ensure that funds provided under this 
heading shall be obligated within 180 days of the date of their 
distribution: Provided further, That the Maritime Administrator 
may retain and transfer to ‘‘Maritime Administration, Operations 
and Training’’ up to 2 percent of the funds provided under this 
heading to fund the award and oversight by the Administrator 
of grants made under this heading. 
OFFICE OF INSPECTOR GENERAL 
SALARIES AND EXPENSES 
For an additional amount for necessary expenses of the Office 
of Inspector General to carry out the provisions of the Inspector 
General Act of 1978, as amended, $20,000,000, to remain available 
through September 30, 2013: Provided, That the funding made 
available under this heading shall be used for conducting audits 
and investigations of projects and activities carried out with funds 
made available in this Act to the Department of Transportation: 
Provided further, That the Inspector General shall have all nec-
essary authority, in carrying out the duties specified in the Inspector 
General Act, as amended (5 U.S.C. App. 3), to investigate allegations 
of fraud, including false statements to the Government (18 U.S.C. 
1001), by any person or entity that is subject to regulation by 
the Department. 
GENERAL PROVISION—DEPARTMENT OF TRANSPORTATION 
SEC. 1201. (a) MAINTENANCE OF EFFORT.—Not later than 30 
days after the date of enactment of this Act, for each amount 
that is distributed to a State or agency thereof from an appropria-
tion in this Act for a covered program, the Governor of the State 
shall certify to the Secretary of Transportation that the State will 
maintain its effort with regard to State funding for the types 
of projects that are funded by the appropriation. As part of this 
certification, the Governor shall submit to the Secretary of 
Transportation a statement identifying the amount of funds the 
State planned to expend from State sources as of the date of 
enactment of this Act during the period beginning on the date 
of enactment of this Act through September 30, 2010, for the 
types of projects that are funded by the appropriation. 
(b) FAILURE TO MAINTAIN EFFORT.— 
If a State is unable to maintain the level of effort certified 
pursuant to subsection (a), the State will be prohibited by 
the Secretary of Transportation from receiving additional 
limitation pursuant to the redistribution of the limitation on 
obligations for Federal-aid highway and highway safety 
construction programs that occurs after August 1 for fiscal 
year 2011. 
(c) PERIODIC REPORTS.— 
Submission. 
Time period. 
Deadline. 
Certification. 
Fraud. 
Audits. 
Investigations. 
Deadline. 
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123 STAT. 213 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, each grant recipient shall submit to the covered agency 
from which they received funding periodic reports on the use 
of the funds appropriated in this Act for covered programs. 
Such reports shall be collected and compiled by the covered 
agency and transmitted to Congress. Covered agencies may 
develop such reports on behalf of grant recipients to ensure 
the accuracy and consistency of such reports. 
(2) CONTENTS OF REPORTS.—For amounts received under 
each covered program by a grant recipient under this Act, 
the grant recipient shall include in the periodic reports informa-
tion tracking- 
(A) the amount of Federal funds appropriated, allo-
cated, obligated, and outlayed under the appropriation; 
(B) the number of projects that have been put out 
to bid under the appropriation and the amount of Federal 
funds associated with such projects; 
(C) the number of projects for which contracts have 
been awarded under the appropriation and the amount 
of Federal funds associated with such contracts; 
(D) the number of projects for which work has begun 
under such contracts and the amount of Federal funds 
associated with such contracts; 
(E) the number of projects for which work has been 
completed under such contracts and the amount of Federal 
funds associated with such contracts; 
(F) the number of direct, on-project jobs created or 
sustained by the Federal funds provided for projects under 
the appropriation and, to the extent possible, the estimated 
indirect jobs created or sustained in the associated sup-
plying industries, including the number of job-years created 
and the total increase in employment since the date of 
enactment of this Act; and 
(G) for each covered program report information 
tracking the actual aggregate expenditures by each grant 
recipient from State sources for projects eligible for funding 
under the program during the period beginning on the 
date of enactment of this Act through September 30, 2010, 
as compared to the level of such expenditures that were 
planned to occur during such period as of the date of 
enactment of this Act. 
(3) TIMING OF REPORTS.—Each grant recipient shall submit 
the first of the periodic reports required under this subsection 
not later than 90 days after the date of enactment of this 
Act and shall submit updated reports not later than 180 days, 
1 year, 2 years, and 3 years after such date of enactment. 
(d) DEFINITIONS.—In this section, the following definitions 
apply: 
(1) COVERED AGENCY.—The term ‘‘covered agency’’ means 
the Office of the Secretary of Transportation, the Federal Avia-
tion Administration, the Federal Highway Administration, the 
Federal Railroad Administration, the Federal Transit Adminis-
tration and the Maritime Administration of the Department 
of Transportation. 
(2) COVERED
PROGRAM.—The term ‘‘covered program’’ 
means funds appropriated in this Act for ‘‘Supplemental Discre-
tionary Grants for a National Surface Transportation System’’ 
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123 STAT. 214 
PUBLIC LAW 111–5—FEB. 17, 2009 
to the Office of the Secretary of Transportation, for ‘‘Supple-
mental Funding for Facilities and Equipment’’ and ‘‘Grants- 
in-Aid for Airports’’ to the Federal Aviation Administration; 
for ‘‘Highway Infrastructure Investment’’ to the Federal High-
way Administration; for ‘‘Capital Assistance for High Speed 
Rail Corridors and Intercity Passenger Rail Service’’ and ‘‘Cap-
ital Grants to the National Railroad Passenger Corporation’’ 
to the Federal Railroad Administration; for ‘‘Transit Capital 
Assistance’’, ‘‘Fixed Guideway Infrastructure Investment’’, and 
‘‘Capital Investment Grants’’ to the Federal Transit Administra-
tion; and ‘‘Supplemental Grants for Assistance to Small Ship-
yards’’ to the Maritime Administration. 
(3) GRANT RECIPIENT.—The term ‘‘grant recipient’’ means 
a State or other recipient of assistance provided under a covered 
program in this Act. Such term does not include a Federal 
department or agency. 
(e) Notwithstanding any other provision of law, sections 3501– 
3521 of title 44, United States Code, shall not apply to the provisions 
of this section. 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
PUBLIC AND INDIAN HOUSING 
PUBLIC HOUSING CAPITAL FUND 
For an additional amount for the ‘‘Public Housing Capital Fund’’ 
to carry out capital and management activities for public housing 
agencies, as authorized under section 9 of the United States Housing 
Act of 1937 (42 U.S.C. 1437g) (the ‘‘Act’’), $4,000,000,000, to remain 
available until September 30, 2011: Provided, That the Secretary 
of Housing and Urban Development shall distribute $3,000,000,000 
of this amount by the same formula used for amounts made avail-
able in fiscal year 2008, except that the Secretary may determine 
not to allocate funding to public housing agencies currently des-
ignated as troubled or to public housing agencies that elect not 
to accept such funding: Provided further, That the Secretary shall 
obligate funds allocated by formula within 30 days of enactment 
of this Act: Provided further, That the Secretary shall make avail-
able $1,000,000,000 by competition for priority investments, 
including investments that leverage private sector funding or 
financing for renovations and energy conservation retrofit invest-
ments: Provided further, That the Secretary shall obligate competi-
tive funding by September 30, 2009: Provided further, That public 
housing authorities shall give priority to capital projects that can 
award contracts based on bids within 120 days from the date 
the funds are made available to the public housing authorities: 
Provided further, That public housing agencies shall give priority 
consideration to the rehabilitation of vacant rental units: Provided 
further, That public housing agencies shall prioritize capital projects 
that are already underway or included in the 5-year capital fund 
plans required by the Act (42 U.S.C. 1437c–1(a)): Provided further, 
That notwithstanding any other provision of law, (1) funding pro-
vided under this heading may not be used for operating or rental 
assistance activities, and (2) any restriction of funding to replace-
ment housing uses shall be inapplicable: Provided further, That 
notwithstanding any other provision of law, the Secretary shall 
institute measures to ensure that funds provided under this heading 
Contracts. 
Deadline. 
Deadline. 
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123 STAT. 215 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall serve to supplement and not supplant expenditures from 
other Federal, State, or local sources or funds independently gen-
erated by the grantee: Provided further, That notwithstanding sec-
tion 9(j), public housing agencies shall obligate 100 percent of 
the funds within 1 year of the date on which funds become available 
to the agency for obligation, shall expend at least 60 percent of 
funds within 2 years of the date on which funds become available 
to the agency for obligation, and shall expend 100 percent of the 
funds within 3 years of such date: Provided further, That if a 
public housing agency fails to comply with the 1-year obligation 
requirement, the Secretary shall recapture all remaining unobli-
gated funds awarded to the public housing agency and reallocate 
such funds to agencies that are in compliance with those require-
ments: Provided further, That if a public housing agency fails to 
comply with either the 2-year or the 3-year expenditure require-
ment, the Secretary shall recapture the balance of the funds 
awarded to the public housing agency and reallocate such funds 
to agencies that are in compliance with those requirements: Pro-
vided further, That in administering funds appropriated or other-
wise made available under this heading, the Secretary may waive 
or specify alternative requirements for any provision of any statute 
or regulation in connection with the obligation by the Secretary 
or the use of these funds (except for requirements related to fair 
housing, nondiscrimination, labor standards, and the environment), 
upon a finding that such a waiver is necessary to expedite or 
facilitate the use of such funds: Provided further, That, in addition 
to waivers authorized under the previous proviso, the Secretary 
may direct that requirements relating to the procurement of goods 
and services arising under state and local laws and regulations 
shall not apply to amounts made available under this heading: 
Provided further, That of the funds made available under this 
heading, up to .5 percent shall be available for staffing, training, 
technical assistance, technology, monitoring, travel, enforcement, 
research and evaluation activities: Provided further, That funds 
set aside in the previous proviso shall remain available until Sep-
tember 30, 2012: Provided further, That any funds made available 
under this heading used by the Secretary for personnel expenses 
related to administering funding under this heading shall be trans-
ferred to ‘‘Personnel Compensation and Benefits, Office of Public 
and Indian Housing’’ and shall retain the terms and conditions 
of this account, including reprogramming provisions, except that 
the period of availability set forth in the previous proviso shall 
govern such transferred funds: Provided further, That any funds 
made available under this heading used by the Secretary for 
training or other administrative expenses shall be transferred to 
‘‘Administration, Operations, and Management’’, for non-personnel 
expenses of the Department of Housing and Urban Development: 
Provided further, That any funds made available under this heading 
used by the Secretary for technology shall be transferred to 
‘‘Working Capital Fund’’. 
NATIVE AMERICAN HOUSING BLOCK GRANTS 
For an additional amount for ‘‘Native American Housing Block 
Grants’’, as authorized under title I of the Native American Housing 
Assistance and Self-Determination Act of 1996 (‘‘NAHASDA’’) (25 
Waiver authority. 
Deadlines. 
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123 STAT. 216 
PUBLIC LAW 111–5—FEB. 17, 2009 
U.S.C. 4111 et seq.), $510,000,000 to remain available until Sep-
tember 30, 2011: Provided, That $255,000,000 of the amount pro-
vided under this heading shall be distributed according to the 
same funding formula used in fiscal year 2008: Provided further, 
That the Secretary shall obligate funds allocated by formula within 
30 days of enactment of this Act: Provided further, That the 
amounts distributed through the formula shall be used for new 
construction, acquisition, rehabilitation including energy efficiency 
and conservation, and infrastructure development: Provided further, 
That in selecting projects to be funded, recipients shall give priority 
to projects for which contracts can be awarded within 180 days 
from the date that funds are available to the recipients: Provided 
further, that the Secretary may obligate $255,000,000 of the amount 
provided under this heading for competitive grants to eligible enti-
ties that apply for funds authorized under NAHASDA: Provided 
further, That the Secretary shall obligate competitive funding by 
September 30, 2009: Provided further, That in awarding competitive 
funds, the Secretary shall give priority to projects that will spur 
construction and rehabilitation and will create employment 
opportunities for low-income and unemployed persons: Provided 
further, That recipients of funds under this heading shall obligate 
100 percent of such funds within 1 year of the date funds are 
made available to a recipient, expend at least 50 percent of such 
funds within 2 years of the date on which funds become available 
to such recipients for obligation and expend 100 percent of such 
funds within 3 years of such date: Provided further, That if a 
recipient fails to comply with the 2-year expenditure requirement, 
the Secretary shall recapture all remaining funds awarded to the 
recipient and reallocate such funds through the funding formula 
to recipients that are in compliance with these requirements: Pro-
vided further, That if a recipient fails to comply with the 3-year 
expenditure requirement, the Secretary shall recapture the balance 
of the funds originally awarded to the recipient: Provided further, 
That notwithstanding any other provision of law, the Secretary 
may set aside up to 2 percent of funds made available under 
this paragraph for a housing entity eligible to receive funding 
under title VIII of NAHASDA (25 U.S.C. 4221 et seq.): Provided 
further, That in administering funds appropriated or otherwise 
made available under this heading, the Secretary may waive or 
specify alternative requirements for any provision of any statute 
or regulation in connection with the obligation by the Secretary 
or the use of these funds (except for requirements related to fair 
housing, nondiscrimination, labor standards, and the environment), 
upon a finding that such a waiver is necessary to expedite or 
facilitate the use of such funds: Provided further, That of the 
funds made available under this heading, up to .5 percent shall 
be available for staffing, training, technical assistance, technology, 
monitoring, travel, enforcement, research and evaluation activities: 
Provided further, That funds set aside in the previous proviso 
shall remain available until September 30, 2012: Provided further, 
That any funds made available under this heading used by the 
Secretary for personnel expenses related to administering funding 
under this heading shall be transferred to ‘‘Personnel Compensation 
and Benefits, Office of Public and Indian Housing’’ and shall retain 
the terms and conditions of this account, including reprogramming 
provisions, except that the period of availability set forth in the 
Waiver authority. 
Deadlines. 
Deadline. 
Deadline. 
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123 STAT. 217 
PUBLIC LAW 111–5—FEB. 17, 2009 
previous proviso shall govern such transferred funds: Provided fur-
ther, That any funds made available under this heading used by 
the Secretary for training or other administrative expenses shall 
be transferred to ‘‘Administration, Operations, and Management’’, 
for non-personnel expenses of the Department of Housing and 
Urban Development: Provided further, That any funds made avail-
able under this heading used by the Secretary for technology shall 
be transferred to ‘‘Working Capital Fund’’. 
COMMUNITY PLANNING AND DEVELOPMENT 
COMMUNITY DEVELOPMENT FUND 
For an additional amount for ‘‘Community Development Fund’’ 
$1,000,000,000, to remain available until September 30, 2010 to 
carry out the community development block grant program under 
title I of the Housing and Community Development Act of 1974 
(42 U.S.C. 5301 et seq.): Provided, That the amount appropriated 
in this paragraph shall be distributed pursuant to 42 U.S.C. 5306 
to grantees that received funding in fiscal year 2008: Provided 
further, That in administering the funds appropriated in this para-
graph, the Secretary of Housing and Urban Development shall 
establish requirements to expedite the use of the funds: Provided 
further, That in selecting projects to be funded, recipients shall 
give priority to projects that can award contracts based on bids 
within 120 days from the date the funds are made available to 
the recipients: Provided further, That in administering funds appro-
priated or otherwise made available under this heading, the Sec-
retary may waive or specify alternative requirements for any provi-
sion of any statute or regulation in connection with the obligation 
by the Secretary or the use by the recipient of these funds (except 
for requirements related to fair housing, nondiscrimination, labor 
standards, and the environment), upon a finding that such waiver 
is necessary to expedite or facilitate the timely use of such funds 
and would not be inconsistent with the overall purpose of the 
statute. 
For the provision of emergency assistance for the redevelopment 
of abandoned and foreclosed homes, as authorized under division 
B, title III of the Housing and Economic Recovery Act of 2008 
(‘‘the Act’’) (Public Law 110–289) (42 U.S.C. 5301 note), 
$2,000,000,000, to remain available until September 30, 2010: Pro-
vided, That grantees shall expend at least 50 percent of allocated 
funds within 2 years of the date funds become available to the 
grantee for obligation, and 100 percent of such funds within 3 
years of such date: Provided further, That unless otherwise noted 
herein, the provisions of the Act govern the use of the additional 
funds made available under this heading: Provided further, That 
notwithstanding the provisions of sections 2301(b) and (c)(1) and 
section 2302 of the Act, funding under this paragraph shall be 
allocated by competitions for which eligible entities shall be States, 
units of general local government, and nonprofit entities or consortia 
of nonprofit entities, which may submit proposals in partnership 
with for profit entities: Provided further, That in selecting grantees, 
the Secretary of Housing and Urban Development shall ensure 
that the grantees are in areas with the greatest number and 
percentage of foreclosures and can expend funding within the period 
allowed under this heading: Provided further, That additional award 
criteria for such competitions shall include demonstrated grantee 
Award criteria. 
Deadlines. 
Waiver authority. 
Requirements. 
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123 STAT. 218 
PUBLIC LAW 111–5—FEB. 17, 2009 
capacity to execute projects, leveraging potential, concentration of 
investment to achieve neighborhood stabilization, and any addi-
tional factors determined by the Secretary of Housing and Urban 
Development: Provided further, That the Secretary may establish 
a minimum grant size: Provided further, That the Secretary shall 
publish criteria on which to base competition for any grants 
awarded under this heading not later than 75 days after the enact-
ment of this Act and applications shall be due to HUD not later 
than 150 days after the enactment of this Act: Provided further, 
That the Secretary shall obligate all funding within 1 year of 
enactment of this Act: Provided further, That section 2301(d)(4) 
of the Act is repealed: Provided further, That section 2301(c)(3)(C) 
of the Act is amended to read ‘‘establish and operate land banks 
for homes and residential properties that have been foreclosed 
upon’’: Provided further, That funding used for section 2301(c)(3)(E) 
of the Act shall be available only for the redevelopment of demol-
ished or vacant properties as housing: Provided further, That no 
amounts made available from a grant under this heading may 
be used to demolish any public housing (as such term is defined 
in section 3 of the United States Housing Act of 1937 (42 U.S.C. 
1437a)): Provided further, That a grantee may not use more than 
10 percent of its grant under this heading for demolition activities 
under section 2301(c)(3)(C) and (D) unless the Secretary determines 
that such use represents an appropriate response to local market 
conditions: Provided further, That the recipient of any grant or 
loan from amounts made available under this heading or, after 
the date of enactment under division B, title III of the Housing 
and Economic Recovery Act of 2008, may not refuse to lease a 
dwelling unit in housing with such loan or grant to a participant 
under section 8 of the United States Housing Act of 1937 (42 
U.S.C 1437f) because of the status of the prospective tenant as 
such a participant: Provided further, That in addition to the eligible 
uses in section 2301, the Secretary may also use up to 10 percent 
of the funds provided under this heading for grantees for the 
provision of capacity building of and support for local communities 
receiving funding under section 2301 of the Act or under this 
heading: Provided further, That in administering funds appro-
priated or otherwise made available under this section, the Sec-
retary may waive or specify alternative requirements for any provi-
sion of any statute or regulation in connection with the obligation 
by the Secretary or the use of funds except for requirements related 
to fair housing, nondiscrimination, labor standards and the environ-
ment, upon a finding that such a waiver is necessary to expedite 
or facilitate the use of such funds: Provided further, That in the 
case of any acquisition of a foreclosed upon dwelling or residential 
real property acquired after the date of enactment with any amounts 
made available under this heading or under division B, title III 
of the Housing and Economic Recovery Act of 2008 (Public Law 
110–289), the initial successor in interest in such property pursuant 
to the foreclosure shall assume such interest subject to: (1) the 
provision by such successor in interest of a notice to vacate to 
any bona fide tenant at least 90 days before the effective date 
of such notice; and (2) the rights of any bona fide tenant, as 
of the date of such notice of foreclosure: (A) under any bona fide 
lease entered into before the notice of foreclosure to occupy the 
premises until the end of the remaining term of the lease, except 
that a successor in interest may terminate a lease effective on 
Foreclosure. 
Notice. 
42 USC 5301 
note. 
Waiver authority. 
42 USC 5301 
note. 
42 USC 5301 
note. 
Deadline. 
Publication. 
Criteria. 
Deadlines. 
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123 STAT. 219 
PUBLIC LAW 111–5—FEB. 17, 2009 
the date of sale of the unit to a purchaser who will occupy the 
unit as a primary residence, subject to the receipt by the tenant 
of the 90-day notice under this paragraph; or (B) without a lease 
or with a lease terminable at will under State law, subject to 
the receipt by the tenant of the 90-day notice under this paragraph, 
except that nothing in this paragraph shall affect the requirements 
for termination of any Federal- or State-subsidized tenancy or of 
any State or local law that provides longer time periods or other 
additional protections for tenants: Provided further, That, for pur-
poses of this paragraph, a lease or tenancy shall be considered 
bona fide only if: (1) the mortgagor under the contract is not 
the tenant; (2) the lease or tenancy was the result of an arms- 
length transaction; and (3) the lease or tenancy requires the receipt 
of rent that is not substantially less than fair market rent for 
the property: Provided further, That the recipient of any grant 
or loan from amounts made available under this heading or, after 
the date of enactment, under division B, title III of the Housing 
and Economic Recovery Act of 2008 (Public Law 110–289) may 
not refuse to lease a dwelling unit in housing assisted with such 
loan or grant to a holder of a voucher or certificate of eligibility 
under section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) because of the status of the prospective tenant as 
such a holder: Provided further, That in the case of any qualified 
foreclosed housing for which funds made available under this 
heading or, after the date of enactment, under division B, title 
III of the Housing and Economic Recovery Act of 2008 (Public 
Law 110–289) are used and in which a recipient of assistance 
under section 8(o) of the U.S. Housing Act of 1937 resides at 
the time of foreclosure, the initial successor in interest shall be 
subject to the lease and to the housing assistance payments contract 
for the occupied unit: Provided further, That vacating the property 
prior to sale shall not constitute good cause for termination of 
the tenancy unless the property is unmarketable while occupied 
or unless the owner or subsequent purchaser desires the unit for 
personal or family use: Provided further, That if a public housing 
agency is unable to make payments under the contract to the 
immediate successor in interest after foreclosures, due to (1) an 
action or inaction by the successor in interest, including the rejec-
tion of payments or the failure of the successor to maintain the 
unit in compliance with section 8(o)(8) of the United States Housing 
Act of 1937 (42 U.S.C.1437f) or (2) an inability to identify the 
successor, the agency may use funds that would have been used 
to pay the rental amount on behalf of the family—(i) to pay for 
utilities that are the responsibility of the owner under the lease 
or applicable law, after taking reasonable steps to notify the owner 
that it intends to make payments to a utility provider in lieu 
of payments to the owner, except prior notification shall not be 
required in any case in which the unit will be or has been rendered 
uninhabitable due to the termination or threat of termination of 
service, in which case the public housing agency shall notify the 
owner within a reasonable time after making such payment; or 
(ii) for the family’s reasonable moving costs, including security 
deposit costs: Provided further, That this paragraph shall not pre-
empt any Federal, State or local law that provides more protections 
for tenants: Provided further, That of the funds made available 
under this heading, up to 1 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, travel, 
42 USC 5301 
note. 
Contracts. 
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123 STAT. 220 
PUBLIC LAW 111–5—FEB. 17, 2009 
enforcement, research and evaluation activities: Provided further, 
That funds set aside in the previous proviso shall remain available 
until September 30, 2012: Provided further, That any funds made 
available under this heading used by the Secretary for personnel 
expenses related to administering funding under this heading shall 
be transferred to ‘‘Personnel Compensation and Benefits, Commu-
nity Planning and Development’’ and shall retain the terms and 
conditions of this account, including reprogramming provisions, 
except that the period of availability set forth in the previous 
proviso shall govern such transferred funds: Provided further, That 
any funds made available under this heading used by the Secretary 
for training or other administrative expenses shall be transferred 
to ‘‘Administration, Operations, and Management’’ for non-per-
sonnel expenses of the Department of Housing and Urban Develop-
ment: Provided further, That any funds made available under this 
heading used by the Secretary for technology shall be transferred 
to ‘‘Working Capital Fund’’. 
HOME INVESTMENT PARTNERSHIPS PROGRAM 
For an additional amount for capital investments in low-income 
housing tax credit projects, $2,250,000,000, to remain available 
until September 30, 2011: Provided, That such funds shall be made 
available to State housing credit agencies, as defined in section 
42(h) of the Internal Revenue Code of 1986, and shall be apportioned 
among the States based on the percentage of HOME funds appor-
tioned to each State and the participating jurisdictions therein 
for Fiscal Year 2008: Provided further, That the housing credit 
agencies in each State shall distribute these funds competitively 
under this heading and pursuant to their qualified allocation plan 
(as defined in section 42(m) of the Internal Revenue Code of 1986) 
to owners of projects who have received or receive simultaneously 
an award of low-income housing tax credits under section 42(h) 
of the Internal Revenue Code of 1986: Provided further, That 
housing credit agencies in each State shall commit not less than 
75 percent of such funds within one year of the date of enactment 
of this Act, and shall demonstrate that the project owners shall 
have expended 75 percent of the funds made available under this 
heading within two years of the date of enactment of this Act, 
and shall have expended 100 percent of the funds within 3 years 
of the date of enactment of this Act: Provided further, That failure 
by an owner to expend funds within the parameters required within 
the previous proviso shall result in a redistribution of these funds 
by a housing credit agency to a more deserving project in such 
State, except any funds not expended after 3 years from enactment 
shall be redistributed by the Secretary to other States that have 
fully utilized the funds made available to them: Provided further, 
That projects awarded low income housing tax credits under section 
42(h) of the IRC of 1986 in fiscal years 2007, 2008, or 2009 shall 
be eligible for funding under this heading: Provided further, That 
housing credit agencies shall give priority to projects that are 
expected to be completed within 3 years of enactment: Provided 
further, That any assistance provided to an eligible low income 
housing tax credit project under this heading shall be made in 
the same manner and be subject to the same limitations (including 
rent, income, and use restrictions, in lieu of corresponding limita-
tions under the HOME program) as required by the state housing 
Deadlines. 
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123 STAT. 221 
PUBLIC LAW 111–5—FEB. 17, 2009 
credit agency with respect to an award of low income housing 
credits under section 42 of the IRC of 1986: Provided further, 
That the housing credit agency shall perform asset management 
functions, or shall contract for the performance of such services, 
in either case, at the owner’s expense, to ensure compliance with 
section 42 of the IRC of 1986, and the long term viability of 
buildings funded by assistance under this heading: Provided further, 
That the term eligible basis (as such term is defined in such 
section 42) of a qualified low-income housing tax credit building 
receiving assistance under this heading shall not be reduced by 
the amount of any grant described under this heading: Provided 
further, That the Secretary shall be given access upon reasonable 
notice to a State housing credit agency to information related to 
the award of Federal funds from such housing credit agency pursu-
ant to this heading and shall establish an Internet site that shall 
identify all projects selected for an award, including the amount 
of the award and such site shall provide linkage to the housing 
credit agency allocation plan which describes the process that was 
used to make the award decision: Provided further, That in admin-
istering funds under this heading, the Secretary may waive any 
provision of any statute or regulation that the Secretary administers 
in connection with the obligation by the Secretary or the use by 
the recipient of these funds except for requirements imposed by 
this heading and requirements related to fair housing, non-discrimi-
nation, labor standards and the environment, upon a finding that 
such waiver is required to expedite the use of such funds: Provided 
further, That for purposes of environmental compliance review, 
funds under this heading that are made available to State housing 
credit agencies for distribution to projects awarded low income 
housing tax credits shall be treated as funds under the HOME 
program and shall be subject to Section 288 of the HOME Invest-
ment Partnership Act. 
HOMELESSNESS PREVENTION FUND 
For homelessness prevention and rapid re-housing activities, 
$1,500,000,000, to remain available until September 30, 2011: Pro-
vided, That funds provided under this heading shall be used for 
the provision of short-term or medium-term rental assistance; 
housing relocation and stabilization services including housing 
search, mediation or outreach to property owners, credit repair, 
security or utility deposits, utility payments, rental assistance for 
a final month at a location, moving cost assistance, and case 
management; or other appropriate activities for homelessness 
prevention and rapid re-housing of persons who have become home-
less: Provided further, That grantees receiving such assistance shall 
collect data on the use of the funds awarded and persons served 
with this assistance in the HUD Homeless Management Information 
System (‘‘HMIS’’) or other comparable database: Provided further, 
That grantees may use up to 5 percent of any grant for administra-
tive costs: Provided further, That funding made available under 
this heading shall be allocated to eligible grantees (as defined 
and designated in sections 411 and 412 of subtitle B of title IV 
of the McKinney-Vento Homeless Assistance Act, (the ‘‘Act’’)) pursu-
ant to the formula authorized by section 413 of the Act: Provided 
further, That the Secretary may establish a minimum grant size: 
Provided further, That grantees shall expend at least 60 percent 
Deadlines. 
Waiver authority. 
Web site. 
Contracts. 
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123 STAT. 222 
PUBLIC LAW 111–5—FEB. 17, 2009 
of funds within 2 years of the date that funds became available 
to them for obligation, and 100 percent of funds within 3 years 
of such date, and the Secretary may recapture unexpended funds 
in violation of the 2-year expenditure requirement and reallocate 
such funds to grantees in compliance with that requirement: Pro-
vided further, That the Secretary may waive statutory or regulatory 
provisions (except provisions for fair housing, nondiscrimination, 
labor standards, and the environment) necessary to facilitate the 
timely expenditure of funds: Provided further, That the Secretary 
shall publish a notice to establish such requirements as may be 
necessary to carry out the provisions of this section within 30 
days of enactment of this Act and that this notice shall take effect 
upon issuance: Provided further, That of the funds provided under 
this heading, up to .5 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, research and 
evaluation activities: Provided further, That funds set aside under 
the previous proviso shall remain available until September 30, 
2012: Provided further, That any funds made available under this 
heading used by the Secretary for personnel expenses related to 
administering funding under this heading shall be transferred to 
‘‘Community Planning and Development Personnel Compensation 
and Benefits’’ and shall retain the terms and conditions of this 
account including reprogramming provisions except that the period 
of availability set forth in the previous proviso shall govern such 
transferred funds: Provided further, That any funds made available 
under this heading used by the Secretary for training or other 
administrative expenses shall be transferred to ‘‘Administration, 
Operations, and Management’’ for non-personnel expenses of the 
Department of Housing and Urban Development: Provided further, 
That any funding made available under this heading used by the 
Secretary for technology shall be transferred to ‘‘Working Capital 
Fund.’’ 
HOUSING PROGRAMS 
ASSISTED HOUSING STABILITY AND ENERGY AND GREEN RETROFIT 
INVESTMENTS 
For assistance to owners of properties receiving project-based 
assistance pursuant to section 202 of the Housing Act of 1959 
(12 U.S.C. 17012), section 811 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 8013), or section 8 of the United 
States Housing Act of 1937 as amended (42 U.S.C. 1437f), 
$2,250,000,000, of which $2,000,000,000 shall be for an additional 
amount for paragraph (1) under the heading ‘‘Project-Based Rental 
Assistance’’ in Public Law 110–161 for payments to owners for 
12-month periods, and of which $250,000,000 shall be for grants 
or loans for energy retrofit and green investments in such assisted 
housing: Provided, That projects funded with grants or loans pro-
vided under this heading must comply with the requirements of 
subchapter IV of chapter 31 of title 40, United States Code: Provided 
further, That such grants or loans shall be provided through the 
policies, procedures, contracts, and transactional infrastructure of 
the authorized programs administered by the Office of Affordable 
Housing Preservation of the Department of Housing and Urban 
Development, on such terms and conditions as the Secretary of 
Housing and Urban Development deems appropriate to ensure the 
Publication. 
Notice. 
Deadline. 
Effective date. 
Waiver authority. 
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123 STAT. 223 
PUBLIC LAW 111–5—FEB. 17, 2009 
maintenance and preservation of the property, the continued oper-
ation and maintenance of energy efficiency technologies, and the 
timely expenditure of funds: Provided further, That the Secretary 
may provide incentives to owners to undertake energy or green 
retrofits as a part of such grant or loan terms, including, but 
not limited to, fees to cover investment oversight and implementa-
tion by said owner, or to encourage job creation for low-income 
or very low-income individuals: Provided further, That the Secretary 
may share in a portion of future property utility savings resulting 
from improvements made by grants or loans made available under 
this heading: Provided further, That the grants or loans shall 
include a financial assessment and physical inspection of such prop-
erty: Provided further, That eligible owners must have at least 
a satisfactory management review rating, be in substantial compli-
ance with applicable performance standards and legal requirements, 
and commit to an additional period of affordability determined 
by the Secretary, but of not fewer than 15 years: Provided further, 
That the Secretary shall undertake appropriate underwriting and 
oversight with respect to grant and loan transactions and may 
set aside up to 5 percent of the funds made available under this 
heading for grants or loans for such purpose: Provided further, 
That the Secretary shall take steps necessary to ensure that owners 
receiving funding for energy and green retrofit investments under 
this heading shall expend such funding within 2 years of the date 
they received the funding: Provided further, That in administering 
funds appropriated or otherwise made available under this heading, 
the Secretary may waive or specify alternative requirements for 
any provision of any statute or regulation in connection with the 
obligation by the Secretary or the use of these funds (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment), upon a finding that such a waiver 
is necessary to expedite or facilitate the use of such funds: Provided 
further, That of the funds provided under this heading for grants 
and loans, up to 1 percent shall be available for staffing, training, 
technical assistance, technology, monitoring, research and evalua-
tion activities: Provided further, That funds set aside in the previous 
proviso shall remain available until September 30, 2012: Provided 
further, That funding made available under this heading and used 
by the Secretary for personnel expenses related to administering 
funding under this heading shall be transferred to ‘‘Housing Per-
sonnel Compensation and Benefits’’ and shall retain the terms 
and conditions of this account including reprogramming provisos 
except that the period of availability set forth in the previous 
proviso shall govern such transferred funds: Provided further, That 
any funding made available under this heading used by the Sec-
retary for training and other administrative expenses shall be trans-
ferred to ‘‘Administration, Operations and Management’’ for non- 
personnel expenses of the Department of Housing and Urban 
Development: Provided further, That any funding made available 
under this heading used by the Secretary for technology shall 
be transferred to ‘‘Working Capital Fund.’’ 
OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES 
For an additional amount for the ‘‘Lead Hazard Reduction 
Program’’, as authorized by section 1011 of the Residential Lead- 
Based Paint Hazard Reduction Act of 1992, and by sections 501 
Waiver authority. 
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123 STAT. 224 
PUBLIC LAW 111–5—FEB. 17, 2009 
and 502 of the Housing and Urban Development Act of 1974, 
$100,000,000, to remain available until September 30, 2011: Pro-
vided, That for purposes of environmental review, pursuant to 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.) and other provisions of law that further the purposes 
of such Act, a grant under the Healthy Homes Initiative, Operation 
Lead Elimination Action Plan (LEAP), or the Lead Technical 
Studies program under this heading or under prior appropriations 
Acts for such purposes under this heading, shall be considered 
to be funds for a special project for purposes of section 305(e) 
of the Multifamily Housing Property Disposition Reform Act of 
1994: Provided further, That funds shall be awarded first to 
applicants which had applied under the Lead Hazard Reduction 
Program Notices of Funding Availability for fiscal year 2008, and 
were found in the application review to be qualified for award, 
but were not awarded because of funding limitations, and that 
any funds which remain after reservation of funds for such grants 
shall be added to the amount of funds to be awarded under the 
Lead Hazard Reduction Program Notices of Funding Availability 
for fiscal year 2009: Provided further, That each applicant for the 
Lead Hazard Program Notices of Funding Availability for fiscal 
year 2009 shall submit a detailed plan and strategy that dem-
onstrates adequate capacity that is acceptable to the Secretary 
to carry out the proposed use of funds: Provided further, That 
recipients of funds under this heading shall expend at least 50 
percent of such funds within 2 years of the date on which funds 
become available to such jurisdictions for obligation, and expend 
100 percent of such funds within 3 years of such date: Provided 
further, That if a recipient fails to comply with the 2-year expendi-
ture requirement, the Secretary shall recapture all remaining funds 
awarded to the recipient and reallocate such funds to recipients 
that are in compliance with those requirements: Provided further, 
That if a recipient fails to comply with the 3-year expenditure 
requirement, the Secretary shall recapture the balance of the funds 
awarded to the recipient: Provided further, That in administering 
funds appropriated or otherwise made available under this heading, 
the Secretary may waive or specify alternative requirements for 
any provision of any statute or regulation in connection with the 
obligation by the Secretary or the use of these funds (except for 
requirements related to fair housing, nondiscrimination, labor 
standards and the environment), upon a finding that such a waiver 
is necessary to expedite or facilitate the use of such funds: Provided 
further, That of the funds made available under this heading, 
up to .5 percent shall be available for staffing, training, technical 
assistance, technology, monitoring, travel, enforcement, research 
and evaluation activities: Provided further, That funds set aside 
in the previous proviso shall remain available until September 
30, 2012: Provided further, That any funds made available under 
this heading used by the Secretary for personnel expenses related 
to administering funding under this heading shall be transferred 
to ‘‘Personnel Compensation and Benefits, Office of Lead Hazard 
Control and Healthy Homes’’ and shall retain the terms and condi-
tions of this account, including reprogramming provisions, except 
that the period of availability set forth in the previous proviso 
shall govern such transferred funds: Provided further, That any 
funds made available under this heading used by the Secretary 
for training or other administrative expenses shall be transferred 
Waiver authority. 
Deadlines. 
Plans. 
Strategy. 
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123 STAT. 225 
PUBLIC LAW 111–5—FEB. 17, 2009 
to ‘‘Administration, Operations, and Management’’, for non-per-
sonnel expenses of the Department of Housing and Urban Develop-
ment: Provided further, That any funds made available under this 
heading used by the Secretary for technology shall be transferred 
to ‘‘Working Capital Fund’’. 
MANAGEMENT AND ADMINISTRATION 
OFFICE OF INSPECTOR GENERAL 
For an additional amount for the necessary salaries and 
expenses of the Office of Inspector General in carrying out the 
Inspector General Act of 1978, as amended, $15,000,000, to remain 
available until September 30, 2013: Provided, That the Inspector 
General shall have independent authority over all personnel issues 
within this office. 
GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND 
URBAN DEVELOPMENT 
SEC. 1202. FHA LOAN LIMITS FOR 2009. (a) LOAN LIMIT FLOOR 
BASED ON 2008 LEVELS.—For mortgages for which the mortgagee 
issues credit approval for the borrower during calendar year 2009, 
if the dollar amount limitation on the principal obligation of a 
mortgage determined under section 203(b)(2) of the National 
Housing Act (12 U.S.C. 1709(b)(2)) for any size residence for any 
area is less than such dollar amount limitation that was in effect 
for such size residence for such area for 2008 pursuant to section 
202 of the Economic Stimulus Act of 2008 (Public Law 110–185; 
122 Stat. 620), notwithstanding any other provision of law, the 
maximum dollar amount limitation on the principal obligation of 
a mortgage for such size residence for such area for purposes 
of such section 203(b)(2) shall be considered (except for purposes 
of section 255(g) of such Act (12 U.S.C. 1715z–20(g))) to be such 
dollar amount limitation in effect for such size residence for such 
area for 2008. 
(b) DISCRETIONARY
AUTHORITY
FOR
SUB-AREAS.—Notwith-
standing any other provision of law, if the Secretary of Housing 
and Urban Development determines, for any geographic area that 
is smaller than an area for which dollar amount limitations on 
the principal obligation of a mortgage are determined under section 
203(b)(2) of the National Housing Act, that a higher such maximum 
dollar amount limitation is warranted for any particular size or 
sizes of residences in such sub-area by higher median home prices 
in such sub-area, the Secretary may, for mortgages for which the 
mortgagee issues credit approval for the borrower during calendar 
year 2009, increase the maximum dollar amount limitation for 
such size or sizes of residences for such sub-area that is otherwise 
in effect (including pursuant to subsection (a) of this section), but 
in no case to an amount that exceeds the amount specified in 
section 202(a)(2) of the Economic Stimulus Act of 2008. 
SEC. 1203. GSE CONFORMING LOAN LIMITS FOR 2009. (a) LOAN 
LIMIT FLOOR BASED ON 2008 LEVELS.—For mortgages originated 
during calendar year 2009, if the limitation on the maximum 
original principal obligation of a mortgage that may be purchased 
by the Federal National Mortgage Association or the Federal Home 
Loan Mortgage Corporation determined under section 302(b)(2) of 
the Federal National Mortgage Association Charter Act (12 U.S.C. 
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123 STAT. 226 
PUBLIC LAW 111–5—FEB. 17, 2009 
1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size 
residence for any area is less than such maximum original principal 
obligation limitation that was in effect for such size residence 
for such area for 2008 pursuant to section 201 of the Economic 
Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 619), notwith-
standing any other provision of law, the limitation on the maximum 
original principal obligation of a mortgage for such Association 
and Corporation for such size residence for such area shall be 
such maximum limitation in effect for such size residence for such 
area for 2008. 
(b) DISCRETIONARY
AUTHORITY
FOR
SUB-AREAS.—Notwith-
standing any other provision of law, if the Director of the Federal 
Housing Finance Agency determines, for any geographic area that 
is smaller than an area for which limitations on the maximum 
original principal obligation of a mortgage are determined for the 
Federal National Mortgage Association or the Federal Home Loan 
Mortgage Corporation, that a higher such maximum original prin-
cipal obligation limitation is warranted for any particular size or 
sizes of residences in such sub-area by higher median home prices 
in such sub-area, the Director may, for mortgages originated during 
2009, increase the maximum original principal obligation limitation 
for such size or sizes of residences for such sub-area that is other-
wise in effect (including pursuant to subsection (a) of this section) 
for such Association and Corporation, but in no case to an amount 
that exceeds the amount specified in the matter following the 
comma in section 201(a)(1)(B) of the Economic Stimulus Act of 
2008. 
SEC. 1204. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009. 
For mortgages for which the mortgagee issues credit approval for 
the borrower during calendar year 2009, the second sentence of 
section 255(g) of the National Housing Act (12 U.S.C. 1715z–20(g)) 
shall be considered to require that in no case may the benefits 
of insurance under such section 255 exceed 150 percent of the 
maximum dollar amount in effect under the sixth sentence of section 
305(a)(2) of the Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1454(a)(2)). 
TITLE XIII—HEALTH INFORMATION 
TECHNOLOGY 
SEC. 13001. SHORT TITLE; TABLE OF CONTENTS OF TITLE. 
(a) SHORT TITLE.—This title (and title IV of division B) may 
be cited as the ‘‘Health Information Technology for Economic and 
Clinical Health Act’’ or the ‘‘HITECH Act’’. 
(b) TABLE OF CONTENTS OF TITLE.—The table of contents of 
this title is as follows: 
Sec. 13001. Short title; table of contents of title. 
Subtitle A—Promotion of Health Information Technology 
PART 1—IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY 
Sec. 13101. ONCHIT; standards development and adoption. 
‘‘TITLE XXX—HEALTH INFORMATION TECHNOLOGY AND QUALITY 
‘‘Sec. 3000. Definitions. 
42 USC 201 note. 
Health 
Information 
Technology for 
Economic and 
Clinical Health 
Act. 
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123 STAT. 227 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘Subtitle A—Promotion of Health Information Technology 
‘‘Sec. 3001. Office of the National Coordinator for Health Information Tech-
nology. 
‘‘Sec. 3002. HIT Policy Committee. 
‘‘Sec. 3003. HIT Standards Committee. 
‘‘Sec. 3004. Process for adoption of endorsed recommendations; adoption of ini-
tial set of standards, implementation specifications, and certification 
criteria. 
‘‘Sec. 3005. Application and use of adopted standards and implementation spec-
ifications by Federal agencies. 
‘‘Sec. 3006. Voluntary application and use of adopted standards and implemen-
tation specifications by private entities. 
‘‘Sec. 3007. Federal health information technology. 
‘‘Sec. 3008. Transitions. 
‘‘Sec. 3009. Miscellaneous provisions. 
Sec. 13102. Technical amendment. 
PART 2—APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY 
STANDARDS; REPORTS 
Sec. 13111. Coordination of Federal activities with adopted standards and imple-
mentation specifications. 
Sec. 13112. Application to private entities. 
Sec. 13113. Study and reports. 
Subtitle B—Testing of Health Information Technology 
Sec. 13201. National Institute for Standards and Technology testing. 
Sec. 13202. Research and development programs. 
Subtitle C—Grants and Loans Funding 
Sec. 13301. Grant, loan, and demonstration programs. 
‘‘Subtitle B—Incentives for the Use of Health Information Technology 
‘‘Sec. 3011. Immediate funding to strengthen the health information technology 
infrastructure. 
‘‘Sec. 3012. Health information technology implementation assistance. 
‘‘Sec. 3013. State grants to promote health information technology. 
‘‘Sec. 3014. Competitive grants to States and Indian tribes for the development 
of loan programs to facilitate the widespread adoption of certified 
EHR technology. 
‘‘Sec. 3015. Demonstration program to integrate information technology into 
clinical education. 
‘‘Sec. 3016. Information technology professionals in health care. 
‘‘Sec. 3017. General grant and loan provisions. 
‘‘Sec. 3018. Authorization for appropriations. 
Subtitle D—Privacy 
Sec. 13400. Definitions. 
PART 1—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS 
Sec. 13401. Application of security provisions and penalties to business associates 
of covered entities; annual guidance on security provisions. 
Sec. 13402. Notification in the case of breach. 
Sec. 13403. Education on health information privacy. 
Sec. 13404. Application of privacy provisions and penalties to business associates of 
covered entities. 
Sec. 13405. Restrictions on certain disclosures and sales of health information; ac-
counting of certain protected health information disclosures; access to 
certain information in electronic format. 
Sec. 13406. Conditions on certain contacts as part of health care operations. 
Sec. 13407. Temporary breach notification requirement for vendors of personal 
health records and other non-HIPAA covered entities. 
Sec. 13408. Business associate contracts required for certain entities. 
Sec. 13409. Clarification of application of wrongful disclosures criminal penalties. 
Sec. 13410. Improved enforcement. 
Sec. 13411. Audits. 
PART 2—RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE 
DATE; REPORTS 
Sec. 13421. Relationship to other laws. 
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123 STAT. 228 
PUBLIC LAW 111–5—FEB. 17, 2009 
Sec. 13422. Regulatory references. 
Sec. 13423. Effective date. 
Sec. 13424. Studies, reports, guidance. 
Subtitle A—Promotion of Health 
Information Technology 
PART 1—IMPROVING HEALTH CARE QUALITY, 
SAFETY, AND EFFICIENCY 
SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION. 
The Public Health Service Act (42 U.S.C. 201 et seq.) is 
amended by adding at the end the following: 
‘‘TITLE XXX—HEALTH INFORMATION 
TECHNOLOGY AND QUALITY 
‘‘SEC. 3000. DEFINITIONS. 
‘‘In this title: 
‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term ‘certified EHR 
technology’ means a qualified electronic health record that is 
certified pursuant to section 3001(c)(5) as meeting standards 
adopted under section 3004 that are applicable to the type 
of record involved (as determined by the Secretary, such as 
an ambulatory electronic health record for office-based physi-
cians or an inpatient hospital electronic health record for hos-
pitals). 
‘‘(2) 
ENTERPRISE
INTEGRATION.—The 
term 
‘enterprise 
integration’ means the electronic linkage of health care pro-
viders, health plans, the government, and other interested par-
ties, to enable the electronic exchange and use of health 
information among all the components in the health care infra-
structure in accordance with applicable law, and such term 
includes related application protocols and other related stand-
ards. 
‘‘(3) HEALTH CARE PROVIDER.—The term ‘health care pro-
vider’ includes a hospital, skilled nursing facility, nursing 
facility, home health entity or other long term care facility, 
health care clinic, community mental health center (as defined 
in section 1913(b)(1)), renal dialysis facility, blood center, 
ambulatory surgical center described in section 1833(i) of the 
Social Security Act, emergency medical services provider, Feder-
ally qualified health center, group practice, a pharmacist, a 
pharmacy, a laboratory, a physician (as defined in section 
1861(r) of the Social Security Act), a practitioner (as described 
in section 1842(b)(18)(C) of the Social Security Act), a provider 
operated by, or under contract with, the Indian Health Service 
or by an Indian tribe (as defined in the Indian Self-Determina-
tion and Education Assistance Act), tribal organization, or 
urban Indian organization (as defined in section 4 of the Indian 
Health Care Improvement Act), a rural health clinic, a covered 
entity under section 340B, an ambulatory surgical center 
described in section 1833(i) of the Social Security Act, a thera-
pist (as defined in section 1848(k)(3)(B)(iii) of the Social Security 
Act), and any other category of health care facility, entity, 
42 USC 300jj. 
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123 STAT. 229 
PUBLIC LAW 111–5—FEB. 17, 2009 
practitioner, or clinician determined appropriate by the Sec-
retary. 
‘‘(4) HEALTH INFORMATION.—The term ‘health information’ 
has the meaning given such term in section 1171(4) of the 
Social Security Act. 
‘‘(5) HEALTH INFORMATION TECHNOLOGY.—The term ‘health 
information technology’ means hardware, software, integrated 
technologies or related licenses, intellectual property, upgrades, 
or packaged solutions sold as services that are designed for 
or support the use by health care entities or patients for the 
electronic creation, maintenance, access, or exchange of health 
information 
‘‘(6) HEALTH PLAN.—The term ‘health plan’ has the meaning 
given such term in section 1171(5) of the Social Security Act. 
‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT Policy Com-
mittee’ means such Committee established under section 
3002(a). 
‘‘(8) HIT STANDARDS COMMITTEE.—The term ‘HIT Standards 
Committee’ means such Committee established under section 
3003(a). 
‘‘(9) INDIVIDUALLY
IDENTIFIABLE
HEALTH
INFORMATION.— 
The term ‘individually identifiable health information’ has the 
meaning given such term in section 1171(6) of the Social Secu-
rity Act. 
‘‘(10) LABORATORY.—The term ‘laboratory’ has the meaning 
given such term in section 353(a). 
‘‘(11) NATIONAL COORDINATOR.—The term ‘National Coordi-
nator’ means the head of the Office of the National Coordinator 
for Health Information Technology established under section 
3001(a). 
‘‘(12) PHARMACIST.—The term ‘pharmacist’ has the meaning 
given such term in section 804(2) of the Federal Food, Drug, 
and Cosmetic Act. 
‘‘(13) QUALIFIED ELECTRONIC HEALTH RECORD.—The term 
‘qualified electronic health record’ means an electronic record 
of health-related information on an individual that— 
‘‘(A) includes patient demographic and clinical health 
information, such as medical history and problem lists; 
and 
‘‘(B) has the capacity— 
‘‘(i) to provide clinical decision support; 
‘‘(ii) to support physician order entry; 
‘‘(iii) to capture and query information relevant 
to health care quality; and 
‘‘(iv) to exchange electronic health information 
with, and integrate such information from other 
sources. 
‘‘(14) STATE.—The term ‘State’ means each of the several 
States, the District of Columbia, Puerto Rico, the Virgin Islands, 
Guam, American Samoa, and the Northern Mariana Islands. 
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123 STAT. 230 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘Subtitle A—Promotion of Health 
Information Technology 
‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH 
INFORMATION TECHNOLOGY. 
‘‘(a) ESTABLISHMENT.—There is established within the Depart-
ment of Health and Human Services an Office of the National 
Coordinator for Health Information Technology (referred to in this 
section as the ‘Office’). The Office shall be headed by a National 
Coordinator who shall be appointed by the Secretary and shall 
report directly to the Secretary. 
‘‘(b) PURPOSE.—The National Coordinator shall perform the 
duties under subsection (c) in a manner consistent with the develop-
ment of a nationwide health information technology infrastructure 
that allows for the electronic use and exchange of information 
and that— 
‘‘(1) ensures that each patient’s health information is secure 
and protected, in accordance with applicable law; 
‘‘(2) improves health care quality, reduces medical errors, 
reduces health disparities, and advances the delivery of patient- 
centered medical care; 
‘‘(3) reduces health care costs resulting from inefficiency, 
medical errors, inappropriate care, duplicative care, and incom-
plete information; 
‘‘(4) provides appropriate information to help guide medical 
decisions at the time and place of care; 
‘‘(5) ensures the inclusion of meaningful public input in 
such development of such infrastructure; 
‘‘(6) improves the coordination of care and information 
among hospitals, laboratories, physician offices, and other enti-
ties through an effective infrastructure for the secure and 
authorized exchange of health care information; 
‘‘(7) improves public health activities and facilitates the 
early identification and rapid response to public health threats 
and emergencies, including bioterror events and infectious dis-
ease outbreaks; 
‘‘(8) facilitates health and clinical research and health care 
quality; 
‘‘(9) promotes early detection, prevention, and management 
of chronic diseases; 
‘‘(10) promotes a more effective marketplace, greater com-
petition, greater systems analysis, increased consumer choice, 
and improved outcomes in health care services; and 
‘‘(11) improves efforts to reduce health disparities. 
‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 
‘‘(1) STANDARDS.—The National Coordinator shall— 
‘‘(A) review and determine whether to endorse each 
standard, implementation specification, and certification 
criterion for the electronic exchange and use of health 
information that is recommended by the HIT Standards 
Committee under section 3003 for purposes of adoption 
under section 3004; 
‘‘(B) make such determinations under subparagraph 
(A), and report to the Secretary such determinations, not 
later than 45 days after the date the recommendation 
is received by the Coordinator; and 
Reports. 
Deadline. 
42 USC 300jj–11. 
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123 STAT. 231 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(C) review Federal health information technology 
investments to ensure that Federal health information 
technology programs are meeting the objectives of the stra-
tegic plan published under paragraph (3). 
‘‘(2) HIT POLICY COORDINATION.— 
‘‘(A) IN
GENERAL.—The National Coordinator shall 
coordinate health information technology policy and pro-
grams of the Department with those of other relevant 
executive branch agencies with a goal of avoiding duplica-
tion of efforts and of helping to ensure that each agency 
undertakes health information technology activities pri-
marily within the areas of its greatest expertise and tech-
nical capability and in a manner towards a coordinated 
national goal. 
‘‘(B) HIT POLICY AND STANDARDS COMMITTEES.—The 
National Coordinator shall be a leading member in the 
establishment and operations of the HIT Policy Committee 
and the HIT Standards Committee and shall serve as a 
liaison among those two Committees and the Federal 
Government. 
‘‘(3) STRATEGIC PLAN.— 
‘‘(A) IN GENERAL.—The National Coordinator shall, in 
consultation with other appropriate Federal agencies 
(including the National Institute of Standards and Tech-
nology), update the Federal Health IT Strategic Plan (devel-
oped as of June 3, 2008) to include specific objectives, 
milestones, and metrics with respect to the following: 
‘‘(i) The electronic exchange and use of health 
information and the enterprise integration of such 
information. 
‘‘(ii) The utilization of an electronic health record 
for each person in the United States by 2014. 
‘‘(iii) The incorporation of privacy and security 
protections for the electronic exchange of an individ-
ual’s individually identifiable health information. 
‘‘(iv) Ensuring security methods to ensure appro-
priate authorization and electronic authentication of 
health information and specifying technologies or 
methodologies for rendering health information unus-
able, unreadable, or indecipherable. 
‘‘(v) Specifying a framework for coordination and 
flow of recommendations and policies under this sub-
title among the Secretary, the National Coordinator, 
the HIT Policy Committee, the HIT Standards Com-
mittee, and other health information exchanges and 
other relevant entities. 
‘‘(vi) Methods to foster the public understanding 
of health information technology. 
‘‘(vii) Strategies to enhance the use of health 
information technology in improving the quality of 
health care, reducing medical errors, reducing health 
disparities, improving public health, increasing preven-
tion and coordination with community resources, and 
improving the continuity of care among health care 
settings. 
‘‘(viii) Specific plans for ensuring that populations 
with unique needs, such as children, are appropriately 
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123 STAT. 232 
PUBLIC LAW 111–5—FEB. 17, 2009 
addressed in the technology design, as appropriate, 
which may include technology that automates enroll-
ment and retention for eligible individuals. 
‘‘(B) COLLABORATION.—The strategic plan shall be 
updated through collaboration of public and private enti-
ties. 
‘‘(C) MEASURABLE OUTCOME GOALS.—The strategic plan 
update shall include measurable outcome goals. 
‘‘(D) PUBLICATION.—The National Coordinator shall 
republish the strategic plan, including all updates. 
‘‘(4) WEBSITE.—The National Coordinator shall maintain 
and frequently update an Internet website on which there 
is posted information on the work, schedules, reports, rec-
ommendations, and other information to ensure transparency 
in promotion of a nationwide health information technology 
infrastructure. 
‘‘(5) CERTIFICATION.— 
‘‘(A) IN GENERAL.—The National Coordinator, in con-
sultation with the Director of the National Institute of 
Standards and Technology, shall keep or recognize a pro-
gram or programs for the voluntary certification of health 
information technology as being in compliance with 
applicable certification criteria adopted under this subtitle. 
Such program shall include, as appropriate, testing of the 
technology in accordance with section 13201(b) of the 
Health Information Technology for Economic and Clinical 
Health Act. 
‘‘(B) CERTIFICATION CRITERIA DESCRIBED.—In this title, 
the term ‘certification criteria’ means, with respect to stand-
ards and implementation specifications for health informa-
tion technology, criteria to establish that the technology 
meets such standards and implementation specifications. 
‘‘(6) REPORTS AND PUBLICATIONS.— 
‘‘(A) REPORT ON ADDITIONAL FUNDING OR AUTHORITY 
NEEDED.—Not later than 12 months after the date of the 
enactment of this title, the National Coordinator shall 
submit to the appropriate committees of jurisdiction of 
the House of Representatives and the Senate a report 
on any additional funding or authority the Coordinator 
or the HIT Policy Committee or HIT Standards Committee 
requires to evaluate and develop standards, implementa-
tion specifications, and certification criteria, or to achieve 
full participation of stakeholders in the adoption of a 
nationwide health information technology infrastructure 
that allows for the electronic use and exchange of health 
information. 
‘‘(B) IMPLEMENTATION REPORT.—The National Coordi-
nator shall prepare a report that identifies lessons learned 
from major public and private health care systems in their 
implementation of health information technology, including 
information on whether the technologies and practices 
developed by such systems may be applicable to and usable 
in whole or in part by other health care providers. 
‘‘(C) ASSESSMENT OF IMPACT OF HIT ON COMMUNITIES 
WITH HEALTH DISPARITIES AND UNINSURED, UNDERINSURED, 
AND
MEDICALLY
UNDERSERVED
AREAS.—The 
National 
Coordinator shall assess and publish the impact of health 
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123 STAT. 233 
PUBLIC LAW 111–5—FEB. 17, 2009 
information technology in communities with health dispari-
ties and in areas with a high proportion of individuals 
who are uninsured, underinsured, and medically under-
served individuals (including urban and rural areas) and 
identify practices to increase the adoption of such tech-
nology by health care providers in such communities, and 
the use of health information technology to reduce and 
better manage chronic diseases. 
‘‘(D) EVALUATION OF BENEFITS AND COSTS OF THE ELEC-
TRONIC
USE
AND
EXCHANGE
OF
HEALTH
INFORMATION.— 
The National Coordinator shall evaluate and publish evi-
dence on the benefits and costs of the electronic use and 
exchange of health information and assess to whom these 
benefits and costs accrue. 
‘‘(E) RESOURCE REQUIREMENTS.—The National Coordi-
nator shall estimate and publish resources required 
annually to reach the goal of utilization of an electronic 
health record for each person in the United States by 
2014, including— 
‘‘(i) the required level of Federal funding; 
‘‘(ii) expectations for regional, State, and private 
investment; 
‘‘(iii) the expected contributions by volunteers to 
activities for the utilization of such records; and 
‘‘(iv) the resources needed to establish a health 
information technology workforce sufficient to support 
this effort (including education programs in medical 
informatics and health information management). 
‘‘(7) ASSISTANCE.—The National Coordinator may provide 
financial assistance to consumer advocacy groups and not-for- 
profit entities that work in the public interest for purposes 
of defraying the cost to such groups and entities to participate 
under, whether in whole or in part, the National Technology 
Transfer Act of 1995 (15 U.S.C. 272 note). 
‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH INFORMATION 
NETWORK.—The National Coordinator shall establish a govern-
ance mechanism for the nationwide health information network. 
‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 
‘‘(1) IN GENERAL.—Upon the request of the National Coordi-
nator, the head of any Federal agency is authorized to detail, 
with or without reimbursement from the Office, any of the 
personnel of such agency to the Office to assist it in carrying 
out its duties under this section. 
‘‘(2) EFFECT
OF
DETAIL.—Any detail of personnel under 
paragraph (1) shall— 
‘‘(A) not interrupt or otherwise affect the civil service 
status or privileges of the Federal employee; and 
‘‘(B) be in addition to any other staff of the Department 
employed by the National Coordinator. 
‘‘(3) ACCEPTANCE
OF
DETAILEES.—Notwithstanding any 
other provision of law, the Office may accept detailed personnel 
from other Federal agencies without regard to whether the 
agency described under paragraph (1) is reimbursed. 
‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE OF THE NATIONAL 
COORDINATOR.—Not later than 12 months after the date of the 
enactment of this title, the Secretary shall appoint a Chief Privacy 
Officer of the Office of the National Coordinator, whose duty it 
Deadline. 
Establishment. 
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123 STAT. 234 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall be to advise the National Coordinator on privacy, security, 
and data stewardship of electronic health information and to coordi-
nate with other Federal agencies (and similar privacy officers in 
such agencies), with State and regional efforts, and with foreign 
countries with regard to the privacy, security, and data stewardship 
of electronic individually identifiable health information. 
‘‘SEC. 3002. HIT POLICY COMMITTEE. 
‘‘(a) ESTABLISHMENT.—There is established a HIT Policy Com-
mittee to make policy recommendations to the National Coordinator 
relating to the implementation of a nationwide health information 
technology infrastructure, including implementation of the strategic 
plan described in section 3001(c)(3). 
‘‘(b) DUTIES.— 
‘‘(1) RECOMMENDATIONS
ON
HEALTH
INFORMATION
TECH-
NOLOGY
INFRASTRUCTURE.—The HIT Policy Committee shall 
recommend a policy framework for the development and adop-
tion of a nationwide health information technology infrastruc-
ture that permits the electronic exchange and use of health 
information as is consistent with the strategic plan under sec-
tion 3001(c)(3) and that includes the recommendations under 
paragraph (2). The Committee shall update such recommenda-
tions and make new recommendations as appropriate. 
‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOPMENT.— 
‘‘(A) IN GENERAL.—The HIT Policy Committee shall 
recommend the areas in which standards, implementation 
specifications, and certification criteria are needed for the 
electronic exchange and use of health information for pur-
poses of adoption under section 3004 and shall recommend 
an order of priority for the development, harmonization, 
and recognition of such standards, specifications, and cer-
tification criteria among the areas so recommended. Such 
standards and implementation specifications shall include 
named standards, architectures, and software schemes for 
the authentication and security of individually identifiable 
health information and other information as needed to 
ensure the reproducible development of common solutions 
across disparate entities. 
‘‘(B) AREAS REQUIRED FOR CONSIDERATION.—For pur-
poses of subparagraph (A), the HIT Policy Committee shall 
make recommendations for at least the following areas: 
‘‘(i) Technologies that protect the privacy of health 
information and promote security in a qualified elec-
tronic health record, including for the segmentation 
and protection from disclosure of specific and sensitive 
individually identifiable health information with the 
goal of minimizing the reluctance of patients to seek 
care (or disclose information about a condition) because 
of privacy concerns, in accordance with applicable law, 
and for the use and disclosure of limited data sets 
of such information. 
‘‘(ii) A nationwide health information technology 
infrastructure that allows for the electronic use and 
accurate exchange of health information. 
‘‘(iii) The utilization of a certified electronic health 
record for each person in the United States by 2014. 
Recommenda- 
tions. 
42 USC 300jj–12. 
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123 STAT. 235 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(iv) Technologies that as a part of a qualified 
electronic health record allow for an accounting of 
disclosures made by a covered entity (as defined for 
purposes of regulations promulgated under section 
264(c) of the Health Insurance Portability and Account-
ability Act of 1996) for purposes of treatment, payment, 
and health care operations (as such terms are defined 
for purposes of such regulations). 
‘‘(v) The use of certified electronic health records 
to improve the quality of health care, such as by pro-
moting the coordination of health care and improving 
continuity of health care among health care providers, 
by reducing medical errors, by improving population 
health, by reducing health disparities, by reducing 
chronic disease, and by advancing research and edu-
cation. 
‘‘(vi) Technologies that allow individually identifi-
able health information to be rendered unusable, 
unreadable, or indecipherable to unauthorized individ-
uals when such information is transmitted in the 
nationwide health information network or physically 
transported outside of the secured, physical perimeter 
of a health care provider, health plan, or health care 
clearinghouse. 
‘‘(vii) The use of electronic systems to ensure the 
comprehensive collection of patient demographic data, 
including, at a minimum, race, ethnicity, primary lan-
guage, and gender information. 
‘‘(viii) Technologies that address the needs of chil-
dren and other vulnerable populations. 
‘‘(C) OTHER
AREAS
FOR
CONSIDERATION.—In making 
recommendations under subparagraph (A), the HIT Policy 
Committee may consider the following additional areas: 
‘‘(i) The appropriate uses of a nationwide health 
information infrastructure, including for purposes of— 
‘‘(I) the collection of quality data and public 
reporting; 
‘‘(II) biosurveillance and public health; 
‘‘(III) medical and clinical research; and 
‘‘(IV) drug safety. 
‘‘(ii) Self-service technologies that facilitate the use 
and exchange of patient information and reduce wait 
times. 
‘‘(iii) Telemedicine technologies, in order to reduce 
travel requirements for patients in remote areas. 
‘‘(iv) Technologies that facilitate home health care 
and the monitoring of patients recuperating at home. 
‘‘(v) Technologies that help reduce medical errors. 
‘‘(vi) Technologies that facilitate the continuity of 
care among health settings. 
‘‘(vii) Technologies that meet the needs of diverse 
populations. 
‘‘(viii) Methods to facilitate secure access by an 
individual to such individual’s protected health 
information. 
‘‘(ix) Methods, guidelines, and safeguards to facili-
tate secure access to patient information by a family 
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123 STAT. 236 
PUBLIC LAW 111–5—FEB. 17, 2009 
member, caregiver, or guardian acting on behalf of 
a patient due to age-related and other disability, cog-
nitive impairment, or dementia. 
‘‘(x) Any other technology that the HIT Policy Com-
mittee finds to be among the technologies with the 
greatest potential to improve the quality and efficiency 
of health care. 
‘‘(3) FORUM.—The HIT Policy Committee shall serve as 
a forum for broad stakeholder input with specific expertise 
in policies relating to the matters described in paragraphs 
(1) and (2). 
‘‘(4) CONSISTENCY
WITH
EVALUATION
CONDUCTED
UNDER 
MIPPA.— 
‘‘(A) REQUIREMENT FOR CONSISTENCY.—The HIT Policy 
Committee shall ensure that recommendations made under 
paragraph (2)(B)(vi) are consistent with the evaluation con-
ducted under section 1809(a) of the Social Security Act. 
‘‘(B) SCOPE.—Nothing in subparagraph (A) shall be 
construed to limit the recommendations under paragraph 
(2)(B)(vi) to the elements described in section 1809(a)(3) 
of the Social Security Act. 
‘‘(C) TIMING.—The requirement under subparagraph 
(A) shall be applicable to the extent that evaluations have 
been conducted under section 1809(a) of the Social Security 
Act, regardless of whether the report described in sub-
section (b) of such section has been submitted. 
‘‘(c) MEMBERSHIP AND OPERATIONS.— 
‘‘(1) IN GENERAL.—The National Coordinator shall take a 
leading position in the establishment and operations of the 
HIT Policy Committee. 
‘‘(2) MEMBERSHIP.—The HIT Policy Committee shall be 
composed of members to be appointed as follows: 
‘‘(A) 3 members shall be appointed by the Secretary, 
1 of whom shall be appointed to represent the Department 
of Health and Human Services and 1 of whom shall be 
a public health official. 
‘‘(B) 1 member shall be appointed by the majority 
leader of the Senate. 
‘‘(C) 1 member shall be appointed by the minority 
leader of the Senate. 
‘‘(D) 1 member shall be appointed by the Speaker of 
the House of Representatives. 
‘‘(E) 1 member shall be appointed by the minority 
leader of the House of Representatives. 
‘‘(F) Such other members as shall be appointed by 
the President as representatives of other relevant Federal 
agencies. 
‘‘(G) 13 members shall be appointed by the Comptroller 
General of the United States of whom— 
‘‘(i) 3 members shall advocates for patients or con-
sumers; 
‘‘(ii) 2 members shall represent health care pro-
viders, one of which shall be a physician; 
‘‘(iii) 1 member shall be from a labor organization 
representing health care workers; 
‘‘(iv) 1 member shall have expertise in health 
information privacy and security; 
President. 
Applicability. 
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123 STAT. 237 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(v) 1 member shall have expertise in improving 
the health of vulnerable populations; 
‘‘(vi) 1 member shall be from the research commu-
nity; 
‘‘(vii) 1 member shall represent health plans or 
other third-party payers; 
‘‘(viii) 1 member shall represent information tech-
nology vendors; 
‘‘(ix) 1 member shall represent purchasers or 
employers; and 
‘‘(x) 1 member shall have expertise in health care 
quality measurement and reporting. 
‘‘(3) PARTICIPATION.—The members of the HIT Policy Com-
mittee appointed under paragraph (2) shall represent a balance 
among various sectors of the health care system so that no 
single sector unduly influences the recommendations of the 
Policy Committee. 
‘‘(4) TERMS.— 
‘‘(A) IN GENERAL.—The terms of the members of the 
HIT Policy Committee shall be for 3 years, except that 
the Comptroller General shall designate staggered terms 
for the members first appointed. 
‘‘(B) VACANCIES.—Any member appointed to fill a 
vacancy in the membership of the HIT Policy Committee 
that occurs prior to the expiration of the term for which 
the member’s predecessor was appointed shall be appointed 
only for the remainder of that term. A member may serve 
after the expiration of that member’s term until a successor 
has been appointed. A vacancy in the HIT Policy Committee 
shall be filled in the manner in which the original appoint-
ment was made. 
‘‘(5) OUTSIDE INVOLVEMENT.—The HIT Policy Committee 
shall ensure an opportunity for the participation in activities 
of the Committee of outside advisors, including individuals 
with expertise in the development of policies for the electronic 
exchange and use of health information, including in the areas 
of health information privacy and security. 
‘‘(6) QUORUM.—A majority of the member of the HIT Policy 
Committee shall constitute a quorum for purposes of voting, 
but a lesser number of members may meet and hold hearings. 
‘‘(7) FAILURE
OF
INITIAL
APPOINTMENT.—If, on the date 
that is 45 days after the date of enactment of this title, an 
official authorized under paragraph (2) to appoint one or more 
members of the HIT Policy Committee has not appointed the 
full number of members that such paragraph authorizes such 
official to appoint, the Secretary is authorized to appoint such 
members. 
‘‘(8) CONSIDERATION.—The National Coordinator shall 
ensure that the relevant and available recommendations and 
comments from the National Committee on Vital and Health 
Statistics are considered in the development of policies. 
‘‘(d) APPLICATION OF FACA.—The Federal Advisory Committee 
Act (5 U.S.C. App.), other than section 14 of such Act, shall apply 
to the HIT Policy Committee. 
‘‘(e) PUBLICATION.—The Secretary shall provide for publication 
in the Federal Register and the posting on the Internet website 
of the Office of the National Coordinator for Health Information 
Federal Register, 
publication. 
Web posting. 
Deadline. 
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123 STAT. 238 
PUBLIC LAW 111–5—FEB. 17, 2009 
Technology of all policy recommendations made by the HIT Policy 
Committee under this section. 
‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 
‘‘(a) ESTABLISHMENT.—There is established a committee to be 
known as the HIT Standards Committee to recommend to the 
National Coordinator standards, implementation specifications, and 
certification criteria for the electronic exchange and use of health 
information for purposes of adoption under section 3004, consistent 
with the implementation of the strategic plan described in section 
3001(c)(3) and beginning with the areas listed in section 
3002(b)(2)(B) in accordance with policies developed by the HIT 
Policy Committee. 
‘‘(b) DUTIES.— 
‘‘(1) STANDARDS DEVELOPMENT.— 
‘‘(A) IN GENERAL.—The HIT Standards Committee shall 
recommend 
to 
the 
National 
Coordinator 
standards, 
implementation specifications, and certification criteria 
described in subsection (a) that have been developed, har-
monized, or recognized by the HIT Standards Committee. 
The HIT Standards Committee shall update such rec-
ommendations and make new recommendations as appro-
priate, including in response to a notification sent under 
section 3004(a)(2)(B). Such recommendations shall be con-
sistent with the latest recommendations made by the HIT 
Policy Committee. 
‘‘(B) HARMONIZATION.—The HIT Standards Committee 
recognize harmonized or updated standards from an entity 
or entities for the purpose of harmonizing or updating 
standards and implementation specifications in order to 
achieve uniform and consistent implementation of the 
standards and implementation specifications. 
‘‘(C) PILOT TESTING OF STANDARDS AND IMPLEMENTA-
TION SPECIFICATIONS.—In the development, harmonization, 
or recognition of standards and implementation specifica-
tions, the HIT Standards Committee shall, as appropriate, 
provide for the testing of such standards and specifications 
by the National Institute for Standards and Technology 
under section 13201(a) of the Health Information Tech-
nology for Economic and Clinical Health Act. 
‘‘(D) CONSISTENCY.—The standards, implementation 
specifications, and certification criteria recommended under 
this subsection shall be consistent with the standards for 
information transactions and data elements adopted pursu-
ant to section 1173 of the Social Security Act. 
‘‘(2) FORUM.—The HIT Standards Committee shall serve 
as a forum for the participation of a broad range of stakeholders 
to provide input on the development, harmonization, and rec-
ognition of standards, implementation specifications, and cer-
tification criteria necessary for the development and adoption 
of a nationwide health information technology infrastructure 
that allows for the electronic use and exchange of health 
information. 
‘‘(3) SCHEDULE.—Not later than 90 days after the date 
of the enactment of this title, the HIT Standards Committee 
shall develop a schedule for the assessment of policy rec-
ommendations developed by the HIT Policy Committee under 
Deadline. 
Recommenda- 
tions. 
42 USC 300jj–13. 
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123 STAT. 239 
PUBLIC LAW 111–5—FEB. 17, 2009 
section 3002. The HIT Standards Committee shall update such 
schedule annually. The Secretary shall publish such schedule 
in the Federal Register. 
‘‘(4) PUBLIC INPUT.—The HIT Standards Committee shall 
conduct open public meetings and develop a process to allow 
for public comment on the schedule described in paragraph 
(3) and recommendations described in this subsection. Under 
such process comments shall be submitted in a timely manner 
after the date of publication of a recommendation under this 
subsection. 
‘‘(5) CONSIDERATION.—The National Coordinator shall 
ensure that the relevant and available recommendations and 
comments from the National Committee on Vital and Health 
Statistics are considered in the development of standards. 
‘‘(c) MEMBERSHIP AND OPERATIONS.— 
‘‘(1) IN GENERAL.—The National Coordinator shall take a 
leading position in the establishment and operations of the 
HIT Standards Committee. 
‘‘(2) MEMBERSHIP.—The membership of the HIT Standards 
Committee shall at least reflect providers, ancillary healthcare 
workers, consumers, purchasers, health plans, technology ven-
dors, researchers, relevant Federal agencies, and individuals 
with technical expertise on health care quality, privacy and 
security, and on the electronic exchange and use of health 
information. 
‘‘(3) PARTICIPATION.—The members of the HIT Standards 
Committee appointed under this subsection shall represent a 
balance among various sectors of the health care system so 
that no single sector unduly influences the recommendations 
of such Committee. 
‘‘(4) OUTSIDE INVOLVEMENT.—The HIT Policy Committee 
shall ensure an opportunity for the participation in activities 
of the Committee of outside advisors, including individuals 
with expertise in the development of standards for the electronic 
exchange and use of health information, including in the areas 
of health information privacy and security. 
‘‘(5) BALANCE AMONG SECTORS.—In developing the proce-
dures for conducting the activities of the HIT Standards Com-
mittee, the HIT Standards Committee shall act to ensure a 
balance among various sectors of the health care system so 
that no single sector unduly influences the actions of the HIT 
Standards Committee. 
‘‘(6) ASSISTANCE.—For the purposes of carrying out this 
section, the Secretary may provide or ensure that financial 
assistance is provided by the HIT Standards Committee to 
defray in whole or in part any membership fees or dues charged 
by such Committee to those consumer advocacy groups and 
not for profit entities that work in the public interest as a 
part of their mission. 
‘‘(d) APPLICATION OF FACA.—The Federal Advisory Committee 
Act (5 U.S.C. App.), other than section 14, shall apply to the 
HIT Standards Committee. 
‘‘(e) PUBLICATION.—The Secretary shall provide for publication 
in the Federal Register and the posting on the Internet website 
of the Office of the National Coordinator for Health Information 
Technology of all recommendations made by the HIT Standards 
Committee under this section. 
Federal Register, 
publication. 
Web posting. 
Federal Register, 
publication. 
Deadline. 
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123 STAT. 240 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDA-
TIONS; ADOPTION OF INITIAL SET OF STANDARDS, 
IMPLEMENTATION 
SPECIFICATIONS, 
AND 
CERTIFI-
CATION CRITERIA. 
‘‘(a) PROCESS
FOR
ADOPTION
OF
ENDORSED
RECOMMENDA-
TIONS.— 
‘‘(1) REVIEW
OF
ENDORSED
STANDARDS, IMPLEMENTATION 
SPECIFICATIONS, AND CERTIFICATION CRITERIA.—Not later than 
90 days after the date of receipt of standards, implementation 
specifications, or certification criteria endorsed under section 
3001(c), the Secretary, in consultation with representatives of 
other relevant Federal agencies, shall jointly review such stand-
ards, implementation specifications, or certification criteria and 
shall determine whether or not to propose adoption of such 
standards, implementation specifications, or certification cri-
teria. 
‘‘(2) DETERMINATION TO ADOPT STANDARDS, IMPLEMENTA-
TION SPECIFICATIONS, AND CERTIFICATION CRITERIA.—If the Sec-
retary determines— 
‘‘(A) to propose adoption of any grouping of such stand-
ards, implementation specifications, or certification criteria, 
the Secretary shall, by regulation under section 553 of 
title 5, United States Code, determine whether or not to 
adopt such grouping of standards, implementation speci-
fications, or certification criteria; or 
‘‘(B) not to propose adoption of any grouping of stand-
ards, implementation specifications, or certification criteria, 
the Secretary shall notify the National Coordinator and 
the HIT Standards Committee in writing of such deter-
mination and the reasons for not proposing the adoption 
of such recommendation. 
‘‘(3) PUBLICATION.—The Secretary shall provide for publica-
tion in the Federal Register of all determinations made by 
the Secretary under paragraph (1). 
‘‘(b) ADOPTION
OF STANDARDS, IMPLEMENTATION SPECIFICA-
TIONS, AND CERTIFICATION CRITERIA.— 
‘‘(1) IN GENERAL.—Not later than December 31, 2009, the 
Secretary shall, through the rulemaking process consistent with 
subsection (a)(2)(A), adopt an initial set of standards, 
implementation specifications, and certification criteria for the 
areas required for consideration under section 3002(b)(2)(B). 
The rulemaking for the initial set of standards, implementation 
specifications, and certification criteria may be issued on an 
interim, final basis. 
‘‘(2) APPLICATION OF CURRENT STANDARDS, IMPLEMENTATION 
SPECIFICATIONS, AND CERTIFICATION CRITERIA.—The standards, 
implementation specifications, and certification criteria adopted 
before the date of the enactment of this title through the 
process existing through the Office of the National Coordinator 
for Health Information Technology may be applied towards 
meeting the requirement of paragraph (1). 
‘‘(3) SUBSEQUENT
STANDARDS
ACTIVITY.—The Secretary 
shall adopt additional standards, implementation specifications, 
and certification criteria as necessary and consistent with the 
schedule published under section 3003(b)(2). 
Deadline. 
Federal Register, 
publication. 
Notification. 
Deadline. 
42 USC 300jj–14. 
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123 STAT. 241 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND 
IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGEN-
CIES. 
‘‘For requirements relating to the application and use by Fed-
eral agencies of the standards and implementation specifications 
adopted under section 3004, see section 13111 of the Health 
Information Technology for Economic and Clinical Health Act. 
‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED STAND-
ARDS AND IMPLEMENTATION SPECIFICATIONS BY PRI-
VATE ENTITIES. 
‘‘(a) IN GENERAL.—Except as provided under section 13112 
of the HITECH Act, nothing in such Act or in the amendments 
made by such Act shall be construed— 
‘‘(1) to require a private entity to adopt or comply with 
a standard or implementation specification adopted under sec-
tion 3004; or 
‘‘(2) to provide a Federal agency authority, other than the 
authority such agency may have under other provisions of 
law, to require a private entity to comply with such a standard 
or implementation specification. 
‘‘(b) RULE OF CONSTRUCTION.—Nothing in this subtitle shall 
be construed to require that a private entity that enters into a 
contract with the Federal Government apply or use the standards 
and implementation specifications adopted under section 3004 with 
respect to activities not related to the contract. 
‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY. 
‘‘(a) IN GENERAL.—The National Coordinator shall support the 
development and routine updating of qualified electronic health 
record technology (as defined in section 3000) consistent with sub-
sections (b) and (c) and make available such qualified electronic 
health record technology unless the Secretary determines through 
an assessment that the needs and demands of providers are being 
substantially and adequately met through the marketplace. 
‘‘(b) CERTIFICATION.—In making such electronic health record 
technology publicly available, the National Coordinator shall ensure 
that the qualified electronic health record technology described 
in subsection (a) is certified under the program developed under 
section 3001(c)(3) to be in compliance with applicable standards 
adopted under section 3003(a). 
‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL FEE.—The National 
Coordinator may impose a nominal fee for the adoption by a health 
care provider of the health information technology system developed 
or approved under subsection (a) and (b). Such fee shall take into 
account the financial circumstances of smaller providers, low income 
providers, and providers located in rural or other medically under-
served areas. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this section shall 
be construed to require that a private or government entity adopt 
or use the technology provided under this section. 
‘‘SEC. 3008. TRANSITIONS. 
‘‘(a) ONCHIT.—To the extent consistent with section 3001, 
all functions, personnel, assets, liabilities, and administrative 
actions applicable to the National Coordinator for Health Informa-
tion Technology appointed under Executive Order No. 13335 or 
the Office of such National Coordinator on the date before the 
42 USC 300jj–18. 
42 USC 300jj–17. 
42 USC 300jj–16. 
42 USC 300jj–15. 
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123 STAT. 242 
PUBLIC LAW 111–5—FEB. 17, 2009 
date of the enactment of this title shall be transferred to the 
National Coordinator appointed under section 3001(a) and the Office 
of such National Coordinator as of the date of the enactment of 
this title. 
‘‘(b) NATIONAL EHEALTH COLLABORATIVE.—Nothing in sections 
3002 or 3003 or this subsection shall be construed as prohibiting 
the AHIC Successor, Inc. doing business as the National eHealth 
Collaborative from modifying its charter, duties, membership, and 
any other structure or function required to be consistent with 
section 3002 and 3003 so as to allow the Secretary to recognize 
such AHIC Successor, Inc. as the HIT Policy Committee or the 
HIT Standards Committee. 
‘‘(c) CONSISTENCY OF RECOMMENDATIONS.—In carrying out sec-
tion 3003(b)(1)(A), until recommendations are made by the HIT 
Policy Committee, recommendations of the HIT Standards Com-
mittee shall be consistent with the most recent recommendations 
made by such AHIC Successor, Inc. 
‘‘SEC. 3009. MISCELLANEOUS PROVISIONS. 
‘‘(a) RELATION TO HIPAA PRIVACY AND SECURITY LAW.— 
‘‘(1) IN GENERAL.—With respect to the relation of this title 
to HIPAA privacy and security law: 
‘‘(A) This title may not be construed as having any 
effect on the authorities of the Secretary under HIPAA 
privacy and security law. 
‘‘(B) The purposes of this title include ensuring that 
the 
health 
information 
technology 
standards 
and 
implementation specifications adopted under section 3004 
take into account the requirements of HIPAA privacy and 
security law. 
‘‘(2) DEFINITION.—For purposes of this section, the term 
‘HIPAA privacy and security law’ means— 
‘‘(A) the provisions of part C of title XI of the Social 
Security Act, section 264 of the Health Insurance Port-
ability and Accountability Act of 1996, and subtitle D of 
title IV of the Health Information Technology for Economic 
and Clinical Health Act; and 
‘‘(B) regulations under such provisions. 
‘‘(b) FLEXIBILITY.—In administering the provisions of this title, 
the Secretary shall have flexibility in applying the definition of 
health care provider under section 3000(3), including the authority 
to omit certain entities listed in such definition when applying 
such definition under this title, where appropriate.’’. 
SEC. 13102. TECHNICAL AMENDMENT. 
Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) 
is amended by striking ‘‘or C’’ and inserting ‘‘C, or D’’. 
PART 2—APPLICATION AND USE OF ADOPTED 
HEALTH 
INFORMATION 
TECHNOLOGY 
STANDARDS; REPORTS 
SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED 
STANDARDS AND IMPLEMENTATION SPECIFICATIONS. 
(a) SPENDING
ON HEALTH INFORMATION TECHNOLOGY SYS-
TEMS.—As each agency (as defined by the Director of the Office 
of Management and Budget, in consultation with the Secretary 
42 USC 17901. 
42 USC 300jj–19. 
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123 STAT. 243 
PUBLIC LAW 111–5—FEB. 17, 2009 
of Health and Human Services) implements, acquires, or upgrades 
health information technology systems used for the direct exchange 
of individually identifiable health information between agencies 
and with non-Federal entities, it shall utilize, where available, 
health information technology systems and products that meet 
standards and implementation specifications adopted under section 
3004 of the Public Health Service Act, as added by section 13101. 
(b) FEDERAL
INFORMATION
COLLECTION
ACTIVITIES.—With 
respect to a standard or implementation specification adopted under 
section 3004 of the Public Health Service Act, as added by section 
13101, the President shall take measures to ensure that Federal 
activities involving the broad collection and submission of health 
information are consistent with such standard or implementation 
specification, respectively, within three years after the date of such 
adoption. 
(c) APPLICATION
OF DEFINITIONS.—The definitions contained 
in section 3000 of the Public Health Service Act, as added by 
section 13101, shall apply for purposes of this part. 
SEC. 13112. APPLICATION TO PRIVATE ENTITIES. 
Each agency (as defined in such Executive Order issued on 
August 22, 2006, relating to promoting quality and efficient health 
care in Federal government administered or sponsored health care 
programs) shall require in contracts or agreements with health 
care providers, health plans, or health insurance issuers that as 
each provider, plan, or issuer implements, acquires, or upgrades 
health information technology systems, it shall utilize, where avail-
able, health information technology systems and products that meet 
standards and implementation specifications adopted under section 
3004 of the Public Health Service Act, as added by section 13101. 
SEC. 13113. STUDY AND REPORTS. 
(a) REPORT ON ADOPTION OF NATIONWIDE SYSTEM.—Not later 
than 2 years after the date of the enactment of this Act and 
annually thereafter, the Secretary of Health and Human Services 
shall submit to the appropriate committees of jurisdiction of the 
House of Representatives and the Senate a report that— 
(1) describes the specific actions that have been taken 
by the Federal Government and private entities to facilitate 
the adoption of a nationwide system for the electronic use 
and exchange of health information; 
(2) describes barriers to the adoption of such a nationwide 
system; and 
(3) contains recommendations to achieve full implementa-
tion of such a nationwide system. 
(b) REIMBURSEMENT INCENTIVE STUDY AND REPORT.— 
(1) STUDY.—The Secretary of Health and Human Services 
shall carry out, or contract with a private entity to carry out, 
a study that examines methods to create efficient reimburse-
ment incentives for improving health care quality in Federally 
qualified health centers, rural health clinics, and free clinics. 
(2) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary of Health and Human 
Services shall submit to the appropriate committees of jurisdic-
tion of the House of Representatives and the Senate a report 
on the study carried out under paragraph (1). 
(c) AGING SERVICES TECHNOLOGY STUDY AND REPORT.— 
42 USC 17903. 
42 USC 17902. 
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123 STAT. 244 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN
GENERAL.—The Secretary of Health and Human 
Services shall carry out, or contract with a private entity to 
carry out, a study of matters relating to the potential use 
of new aging services technology to assist seniors, individuals 
with disabilities, and their caregivers throughout the aging 
process. 
(2) MATTERS TO BE STUDIED.—The study under paragraph 
(1) shall include— 
(A) an evaluation of— 
(i) methods for identifying current, emerging, and 
future health technology that can be used to meet 
the needs of seniors and individuals with disabilities 
and their caregivers across all aging services settings, 
as specified by the Secretary; 
(ii) methods for fostering scientific innovation with 
respect to aging services technology within the business 
and academic communities; and 
(iii) developments in aging services technology in 
other countries that may be applied in the United 
States; and 
(B) identification of— 
(i) barriers to innovation in aging services tech-
nology and devising strategies for removing such bar-
riers; and 
(ii) barriers to the adoption of aging services tech-
nology by health care providers and consumers and 
devising strategies to removing such barriers. 
(3) REPORT.—Not later than 24 months after the date of 
the enactment of this Act, the Secretary shall submit to the 
appropriate committees of jurisdiction of the House of Rep-
resentatives and of the Senate a report on the study carried 
out under paragraph (1). 
(4) DEFINITIONS.—For purposes of this subsection: 
(A) AGING SERVICES TECHNOLOGY.—The term ‘‘aging 
services technology’’ means health technology that meets 
the health care needs of seniors, individuals with disabil-
ities, and the caregivers of such seniors and individuals. 
(B) SENIOR.—The term ‘‘senior’’ has such meaning as 
specified by the Secretary. 
Subtitle B—Testing of Health Information 
Technology 
SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY 
TESTING. 
(a) PILOT TESTING OF STANDARDS AND IMPLEMENTATION SPECI-
FICATIONS.—In coordination with the HIT Standards Committee 
established under section 3003 of the Public Health Service Act, 
as added by section 13101, with respect to the development of 
standards and implementation specifications under such section, 
the Director of the National Institute for Standards and Technology 
shall test such standards and implementation specifications, as 
appropriate, in order to assure the efficient implementation and 
use of such standards and implementation specifications. 
(b) VOLUNTARY TESTING PROGRAM.—In coordination with the 
HIT Standards Committee established under section 3003 of the 
42 USC 17911. 
Contracts. 
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123 STAT. 245 
PUBLIC LAW 111–5—FEB. 17, 2009 
Public Health Service Act, as added by section 13101, with respect 
to the development of standards and implementation specifications 
under such section, the Director of the National Institute of Stand-
ards and Technology shall support the establishment of a conform-
ance testing infrastructure, including the development of technical 
test beds. The development of this conformance testing infrastruc-
ture may include a program to accredit independent, non-Federal 
laboratories to perform testing. 
SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS. 
(a) HEALTH
CARE
INFORMATION
ENTERPRISE
INTEGRATION 
RESEARCH CENTERS.— 
(1) IN GENERAL.—The Director of the National Institute 
of Standards and Technology, in consultation with the Director 
of the National Science Foundation and other appropriate Fed-
eral agencies, shall establish a program of assistance to institu-
tions of higher education (or consortia thereof which may 
include nonprofit entities and Federal Government laboratories) 
to establish multidisciplinary Centers for Health Care Informa-
tion Enterprise Integration. 
(2) REVIEW; COMPETITION.—Grants shall be awarded under 
this subsection on a merit-reviewed, competitive basis. 
(3) PURPOSE.—The purposes of the Centers described in 
paragraph (1) shall be— 
(A) to generate innovative approaches to health care 
information enterprise integration by conducting cutting- 
edge, multidisciplinary research on the systems challenges 
to health care delivery; and 
(B) the development and use of health information 
technologies and other complementary fields. 
(4) RESEARCH AREAS.—Research areas may include— 
(A) interfaces between human information and commu-
nications technology systems; 
(B) voice-recognition systems; 
(C) software that improves interoperability and 
connectivity among health information systems; 
(D) software dependability in systems critical to health 
care delivery; 
(E) measurement of the impact of information tech-
nologies on the quality and productivity of health care; 
(F) health information enterprise management; 
(G) health information technology security and integ-
rity; and 
(H) relevant health information technology to reduce 
medical errors. 
(5) APPLICATIONS.—An institution of higher education (or 
a consortium thereof) seeking funding under this subsection 
shall submit an application to the Director of the National 
Institute of Standards and Technology at such time, in such 
manner, and containing such information as the Director may 
require. The application shall include, at a minimum, a descrip-
tion of— 
(A) the research projects that will be undertaken by 
the Center established pursuant to assistance under para-
graph (1) and the respective contributions of the partici-
pating entities; 
Grants. 
Establishment. 
42 USC 17912. 
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123 STAT. 246 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) how the Center will promote active collaboration 
among scientists and engineers from different disciplines, 
such as information technology, biologic sciences, manage-
ment, social sciences, and other appropriate disciplines; 
(C) technology transfer activities to demonstrate and 
diffuse the research results, technologies, and knowledge; 
and 
(D) how the Center will contribute to the education 
and training of researchers and other professionals in fields 
relevant to health information enterprise integration. 
(b) NATIONAL
INFORMATION
TECHNOLOGY
RESEARCH
AND 
DEVELOPMENT PROGRAM.—The National High-Performance Com-
puting Program established by section 101 of the High-Performance 
Computing Act of 1991 (15 U.S.C. 5511) shall include Federal 
research and development programs related to health information 
technology. 
Subtitle C—Grants and Loans Funding 
SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS. 
Title XXX of the Public Health Service Act, as added by section 
13101, is amended by adding at the end the following new subtitle: 
‘‘Subtitle B—Incentives for the Use of 
Health Information Technology 
‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH 
INFORMATION TECHNOLOGY INFRASTRUCTURE. 
‘‘(a) IN GENERAL.—The Secretary shall, using amounts appro-
priated under section 3018, invest in the infrastructure necessary 
to allow for and promote the electronic exchange and use of health 
information for each individual in the United States consistent 
with the goals outlined in the strategic plan developed by the 
National Coordinator (and as available) under section 3001. The 
Secretary shall invest funds through the different agencies with 
expertise in such goals, such as the Office of the National Coordi-
nator for Health Information Technology, the Health Resources 
and Services Administration, the Agency for Healthcare Research 
and Quality, the Centers of Medicare & Medicaid Services, the 
Centers for Disease Control and Prevention, and the Indian Health 
Service to support the following: 
‘‘(1) Health information technology architecture that will 
support the nationwide electronic exchange and use of health 
information in a secure, private, and accurate manner, 
including connecting health information exchanges, and which 
may include updating and implementing the infrastructure nec-
essary within different agencies of the Department of Health 
and Human Services to support the electronic use and exchange 
of health information. 
‘‘(2) Development and adoption of appropriate certified elec-
tronic health records for categories of health care providers 
not eligible for support under title XVIII or XIX of the Social 
Security Act for the adoption of such records. 
‘‘(3) Training on and dissemination of information on best 
practices to integrate health information technology, including 
42 USC 300jj–31. 
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123 STAT. 247 
PUBLIC LAW 111–5—FEB. 17, 2009 
electronic health records, into a provider’s delivery of care, 
consistent with best practices learned from the Health Informa-
tion Technology Research Center developed under section 
3012(b), including community health centers receiving assist-
ance under section 330, covered entities under section 340B, 
and providers participating in one or more of the programs 
under titles XVIII, XIX, and XXI of the Social Security Act 
(relating to Medicare, Medicaid, and the State Children’s Health 
Insurance Program). 
‘‘(4) Infrastructure and tools for the promotion of telemedi-
cine, including coordination among Federal agencies in the 
promotion of telemedicine. 
‘‘(5) Promotion of the interoperability of clinical data reposi-
tories or registries. 
‘‘(6) Promotion of technologies and best practices that 
enhance the protection of health information by all holders 
of individually identifiable health information. 
‘‘(7) Improvement and expansion of the use of health 
information technology by public health departments. 
‘‘(b) COORDINATION.—The Secretary shall ensure funds under 
this section are used in a coordinated manner with other health 
information promotion activities. 
‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to using funds 
as provided in subsection (a), the Secretary may use amounts appro-
priated under section 3018 to carry out health information tech-
nology activities that are provided for under laws in effect on 
the date of the enactment of this title. 
‘‘(d) STANDARDS
FOR ACQUISITION
OF HEALTH INFORMATION 
TECHNOLOGY.—To the greatest extent practicable, the Secretary 
shall ensure that where funds are expended under this section 
for the acquisition of health information technology, such funds 
shall be used to acquire health information technology that meets 
applicable standards adopted under section 3004. Where it is not 
practicable to expend funds on health information technology that 
meets such applicable standards, the Secretary shall ensure that 
such health information technology meets applicable standards 
otherwise adopted by the Secretary. 
‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION 
ASSISTANCE. 
‘‘(a) HEALTH
INFORMATION
TECHNOLOGY
EXTENSION
PRO-
GRAM.—To assist health care providers to adopt, implement, and 
effectively use certified EHR technology that allows for the elec-
tronic exchange and use of health information, the Secretary, acting 
through the Office of the National Coordinator, shall establish 
a health information technology extension program to provide 
health information technology assistance services to be carried out 
through the Department of Health and Human Services. The 
National Coordinator shall consult with other Federal agencies 
with demonstrated experience and expertise in information tech-
nology services, such as the National Institute of Standards and 
Technology, in developing and implementing this program. 
‘‘(b) HEALTH INFORMATION TECHNOLOGY RESEARCH CENTER.— 
‘‘(1) IN
GENERAL.—The Secretary shall create a Health 
Information Technology Research Center (in this section 
referred to as the ‘Center’) to provide technical assistance and 
develop or recognize best practices to support and accelerate 
Establishment. 
Consultation. 
42 USC 300jj–32. 
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123 STAT. 248 
PUBLIC LAW 111–5—FEB. 17, 2009 
efforts to adopt, implement, and effectively utilize health 
information technology that allows for the electronic exchange 
and use of information in compliance with standards, 
implementation specifications, and certification criteria adopted 
under section 3004. 
‘‘(2) INPUT.—The Center shall incorporate input from— 
‘‘(A) other Federal agencies with demonstrated experi-
ence and expertise in information technology services such 
as the National Institute of Standards and Technology; 
‘‘(B) users of health information technology, such as 
providers and their support and clerical staff and others 
involved in the care and care coordination of patients, 
from the health care and health information technology 
industry; and 
‘‘(C) others as appropriate. 
‘‘(3) PURPOSES.—The purposes of the Center are to— 
‘‘(A) provide a forum for the exchange of knowledge 
and experience; 
‘‘(B) accelerate the transfer of lessons learned from 
existing public and private sector initiatives, including 
those currently receiving Federal financial support; 
‘‘(C) assemble, analyze, and widely disseminate evi-
dence and experience related to the adoption, implementa-
tion, and effective use of health information technology 
that allows for the electronic exchange and use of informa-
tion including through the regional centers described in 
subsection (c); 
‘‘(D) provide technical assistance for the establishment 
and evaluation of regional and local health information 
networks to facilitate the electronic exchange of information 
across health care settings and improve the quality of 
health care; 
‘‘(E) provide technical assistance for the development 
and dissemination of solutions to barriers to the exchange 
of electronic health information; and 
‘‘(F) learn about effective strategies to adopt and utilize 
health information technology in medically underserved 
communities. 
‘‘(c) HEALTH INFORMATION TECHNOLOGY REGIONAL EXTENSION 
CENTERS.— 
‘‘(1) IN GENERAL.—The Secretary shall provide assistance 
for the creation and support of regional centers (in this sub-
section referred to as ‘regional centers’) to provide technical 
assistance and disseminate best practices and other information 
learned from the Center to support and accelerate efforts to 
adopt, implement, and effectively utilize health information 
technology that allows for the electronic exchange and use 
of information in compliance with standards, implementation 
specifications, and certification criteria adopted under section 
3004. Activities conducted under this subsection shall be con-
sistent with the strategic plan developed by the National 
Coordinator, (and, as available) under section 3001. 
‘‘(2) AFFILIATION.—Regional centers shall be affiliated with 
any United States-based nonprofit institution or organization, 
or group thereof, that applies and is awarded financial assist-
ance under this section. Individual awards shall be decided 
on the basis of merit. 
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123 STAT. 249 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(3) OBJECTIVE.—The objective of the regional centers is 
to enhance and promote the adoption of health information 
technology through— 
‘‘(A) assistance with the implementation, effective use, 
upgrading, and ongoing maintenance of health information 
technology, 
including 
electronic 
health 
records, 
to 
healthcare providers nationwide; 
‘‘(B) broad participation of individuals from industry, 
universities, and State governments; 
‘‘(C) active dissemination of best practices and research 
on the implementation, effective use, upgrading, and 
ongoing maintenance of health information technology, 
including electronic health records, to health care providers 
in order to improve the quality of healthcare and protect 
the privacy and security of health information; 
‘‘(D) participation, to the extent practicable, in health 
information exchanges; 
‘‘(E) utilization, when appropriate, of the expertise and 
capability that exists in Federal agencies other than the 
Department; and 
‘‘(F) integration of health information technology, 
including electronic health records, into the initial and 
ongoing training of health professionals and others in the 
healthcare industry that would be instrumental to 
improving the quality of healthcare through the smooth 
and accurate electronic use and exchange of health informa-
tion. 
‘‘(4) REGIONAL ASSISTANCE.—Each regional center shall aim 
to provide assistance and education to all providers in a region, 
but shall prioritize any direct assistance first to the following: 
‘‘(A) Public or not-for-profit hospitals or critical access 
hospitals. 
‘‘(B) Federally qualified health centers (as defined in 
section 1861(aa)(4) of the Social Security Act). 
‘‘(C) Entities that are located in rural and other areas 
that serve uninsured, underinsured, and medically under-
served individuals (regardless of whether such area is 
urban or rural). 
‘‘(D) Individual or small group practices (or a consor-
tium thereof) that are primarily focused on primary care. 
‘‘(5) FINANCIAL
SUPPORT.—The Secretary may provide 
financial support to any regional center created under this 
subsection for a period not to exceed four years. The Secretary 
may not provide more than 50 percent of the capital and 
annual operating and maintenance funds required to create 
and maintain such a center, except in an instance of national 
economic conditions which would render this cost-share require-
ment detrimental to the program and upon notification to Con-
gress as to the justification to waive the cost-share requirement. 
‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND AVAILABILITY 
OF FUNDS.—The Secretary shall publish in the Federal Register, 
not later than 90 days after the date of the enactment of 
this title, a draft description of the program for establishing 
regional centers under this subsection. Such description shall 
include the following: 
‘‘(A) A detailed explanation of the program and the 
programs goals. 
Federal Register, 
publication. 
Deadline. 
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123 STAT. 250 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) Procedures to be followed by the applicants. 
‘‘(C) Criteria for determining qualified applicants. 
‘‘(D) Maximum support levels expected to be available 
to centers under the program. 
‘‘(7) APPLICATION REVIEW.—The Secretary shall subject each 
application under this subsection to merit review. In making 
a decision whether to approve such application and provide 
financial support, the Secretary shall consider at a minimum 
the merits of the application, including those portions of the 
application regarding— 
‘‘(A) the ability of the applicant to provide assistance 
under this subsection and utilization of health information 
technology appropriate to the needs of particular categories 
of health care providers; 
‘‘(B) the types of service to be provided to health care 
providers; 
‘‘(C) geographical diversity and extent of service area; 
and 
‘‘(D) the percentage of funding and amount of in-kind 
commitment from other sources. 
‘‘(8) BIENNIAL
EVALUATION.—Each regional center which 
receives financial assistance under this subsection shall be 
evaluated biennially by an evaluation panel appointed by the 
Secretary. Each evaluation panel shall be composed of private 
experts, none of whom shall be connected with the center 
involved, and of Federal officials. Each evaluation panel shall 
measure the involved center’s performance against the objective 
specified in paragraph (3). The Secretary shall not continue 
to provide funding to a regional center unless its evaluation 
is overall positive. 
‘‘(9) CONTINUING SUPPORT.—After the second year of assist-
ance under this subsection, a regional center may receive addi-
tional support under this subsection if it has received positive 
evaluations and a finding by the Secretary that continuation 
of Federal funding to the center was in the best interest of 
provision of health information technology extension services. 
‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION TECH-
NOLOGY. 
‘‘(a) IN GENERAL.—The Secretary, acting through the National 
Coordinator, shall establish a program in accordance with this 
section to facilitate and expand the electronic movement and use 
of health information among organizations according to nationally 
recognized standards. 
‘‘(b) PLANNING GRANTS.—The Secretary may award a grant 
to a State or qualified State-designated entity (as described in 
subsection (f)) that submits an application to the Secretary at 
such time, in such manner, and containing such information as 
the Secretary may specify, for the purpose of planning activities 
described in subsection (d). 
‘‘(c) IMPLEMENTATION GRANTS.—The Secretary may award a 
grant to a State or qualified State designated entity that— 
‘‘(1) has submitted, and the Secretary has approved, a 
plan described in subsection (e) (regardless of whether such 
plan was prepared using amounts awarded under subsection 
(b); and 
42 USC 300jj–33. 
Criteria. 
Procedures. 
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123 STAT. 251 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(2) submits an application at such time, in such manner, 
and containing such information as the Secretary may specify. 
‘‘(d) USE OF FUNDS.—Amounts received under a grant under 
subsection (c) shall be used to conduct activities to facilitate and 
expand the electronic movement and use of health information 
among organizations according to nationally recognized standards 
through activities that include— 
‘‘(1) enhancing broad and varied participation in the author-
ized and secure nationwide electronic use and exchange of 
health information; 
‘‘(2) identifying State or local resources available towards 
a nationwide effort to promote health information technology; 
‘‘(3) complementing other Federal grants, programs, and 
efforts towards the promotion of health information technology; 
‘‘(4) providing technical assistance for the development and 
dissemination of solutions to barriers to the exchange of elec-
tronic health information; 
‘‘(5) promoting effective strategies to adopt and utilize 
health information technology in medically underserved 
communities; 
‘‘(6) assisting patients in utilizing health information tech-
nology; 
‘‘(7) encouraging clinicians to work with Health Information 
Technology Regional Extension Centers as described in section 
3012, to the extent they are available and valuable; 
‘‘(8) supporting public health agencies’ authorized use of 
and access to electronic health information; 
‘‘(9) promoting the use of electronic health records for 
quality improvement including through quality measures 
reporting; and 
‘‘(10) such other activities as the Secretary may specify. 
‘‘(e) PLAN.— 
‘‘(1) IN GENERAL.—A plan described in this subsection is 
a plan that describes the activities to be carried out by a 
State or by the qualified State-designated entity within such 
State to facilitate and expand the electronic movement and 
use of health information among organizations according to 
nationally recognized standards and implementation specifica-
tions. 
‘‘(2) REQUIRED ELEMENTS.—A plan described in paragraph 
(1) shall— 
‘‘(A) be pursued in the public interest; 
‘‘(B) be consistent with the strategic plan developed 
by the National Coordinator, (and, as available) under sec-
tion 3001; 
‘‘(C) include a description of the ways the State or 
qualified State-designated entity will carry out the activi-
ties described in subsection (b); and 
‘‘(D) contain such elements as the Secretary may 
require. 
‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For purposes of 
this section, to be a qualified State-designated entity, with respect 
to a State, an entity shall— 
‘‘(1) be designated by the State as eligible to receive awards 
under this section; 
‘‘(2) be a not-for-profit entity with broad stakeholder rep-
resentation on its governing board; 
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123 STAT. 252 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(3) demonstrate that one of its principal goals is to use 
information technology to improve health care quality and effi-
ciency through the authorized and secure electronic exchange 
and use of health information; 
‘‘(4) adopt nondiscrimination and conflict of interest policies 
that demonstrate a commitment to open, fair, and nondiscrim-
inatory participation by stakeholders; and 
‘‘(5) conform to such other requirements as the Secretary 
may establish. 
‘‘(g) REQUIRED
CONSULTATION.—In carrying out activities 
described in subsections (b) and (c), a State or qualified State- 
designated entity shall consult with and consider the recommenda-
tions of— 
‘‘(1) health care providers (including providers that provide 
services to low income and underserved populations); 
‘‘(2) health plans; 
‘‘(3) patient or consumer organizations that represent the 
population to be served; 
‘‘(4) health information technology vendors; 
‘‘(5) health care purchasers and employers; 
‘‘(6) public health agencies; 
‘‘(7) health professions schools, universities and colleges; 
‘‘(8) clinical researchers; 
‘‘(9) other users of health information technology such as 
the support and clerical staff of providers and others involved 
in the care and care coordination of patients; and 
‘‘(10) such other entities, as may be determined appropriate 
by the Secretary. 
‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary shall annually 
evaluate the activities conducted under this section and shall, in 
awarding grants under this section, implement the lessons learned 
from such evaluation in a manner so that awards made subsequent 
to each such evaluation are made in a manner that, in the deter-
mination of the Secretary, will lead towards the greatest improve-
ment in quality of care, decrease in costs, and the most effective 
authorized and secure electronic exchange of health information. 
‘‘(i) REQUIRED MATCH.— 
‘‘(1) IN GENERAL.—For a fiscal year (beginning with fiscal 
year 2011), the Secretary may not make a grant under this 
section to a State unless the State agrees to make available 
non-Federal contributions (which may include in-kind contribu-
tions) toward the costs of a grant awarded under subsection 
(c) in an amount equal to— 
‘‘(A) for fiscal year 2011, not less than $1 for each 
$10 of Federal funds provided under the grant; 
‘‘(B) for fiscal year 2012, not less than $1 for each 
$7 of Federal funds provided under the grant; and 
‘‘(C) for fiscal year 2013 and each subsequent fiscal 
year, not less than $1 for each $3 of Federal funds provided 
under the grant. 
‘‘(2) AUTHORITY TO REQUIRE STATE MATCH FOR FISCAL YEARS 
BEFORE FISCAL YEAR 2011.—For any fiscal year during the grant 
program under this section before fiscal year 2011, the Sec-
retary may determine the extent to which there shall be 
required a non-Federal contribution from a State receiving 
a grant under this section. 
Deadline. 
Evaluation. 
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123 STAT. 253 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES 
FOR THE DEVELOPMENT OF LOAN PROGRAMS TO FACILI-
TATE THE WIDESPREAD ADOPTION OF CERTIFIED EHR 
TECHNOLOGY. 
‘‘(a) IN
GENERAL.—The National Coordinator may award 
competitive grants to eligible entities for the establishment of pro-
grams for loans to health care providers to conduct the activities 
described in subsection (e). 
‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of this sub-
section, the term ‘eligible entity’ means a State or Indian tribe 
(as defined in the Indian Self-Determination and Education Assist-
ance Act) that— 
‘‘(1) submits to the National Coordinator an application 
at such time, in such manner, and containing such information 
as the National Coordinator may require; 
‘‘(2) submits to the National Coordinator a strategic plan 
in accordance with subsection (d) and provides to the National 
Coordinator assurances that the entity will update such plan 
annually in accordance with such subsection; 
‘‘(3) provides assurances to the National Coordinator that 
the entity will establish a Loan Fund in accordance with sub-
section (c); 
‘‘(4) provides assurances to the National Coordinator that 
the entity will not provide a loan from the Loan Fund to 
a health care provider unless the provider agrees to— 
‘‘(A) submit reports on quality measures adopted by 
the Federal Government (by not later than 90 days after 
the date on which such measures are adopted), to— 
‘‘(i) the Administrator of the Centers for Medicare 
& Medicaid Services (or his or her designee), in the 
case of an entity participating in the Medicare program 
under title XVIII of the Social Security Act or the 
Medicaid program under title XIX of such Act; or 
‘‘(ii) the Secretary in the case of other entities; 
‘‘(B) demonstrate to the satisfaction of the Secretary 
(through criteria established by the Secretary) that any 
certified EHR technology purchased, improved, or otherwise 
financially supported under a loan under this section is 
used to exchange health information in a manner that, 
in accordance with law and standards (as adopted under 
section 3004) applicable to the exchange of information, 
improves the quality of health care, such as promoting 
care coordination; and 
‘‘(C) comply with such other requirements as the entity 
or the Secretary may require; 
‘‘(D) include a plan on how health care providers 
involved intend to maintain and support the certified EHR 
technology over time; 
‘‘(E) include a plan on how the health care providers 
involved intend to maintain and support the certified EHR 
technology that would be purchased with such loan, 
including the type of resources expected to be involved 
and any such other information as the State or Indian 
Tribe, respectively, may require; and 
‘‘(5) agrees to provide matching funds in accordance with 
subsection (h). 
Reports. 
Deadline. 
42 USC 300jj–34. 
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PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(c) ESTABLISHMENT
OF FUND.—For purposes of subsection 
(b)(3), an eligible entity shall establish a certified EHR technology 
loan fund (referred to in this subsection as a ‘Loan Fund’) and 
comply with the other requirements contained in this section. A 
grant to an eligible entity under this section shall be deposited 
in the Loan Fund established by the eligible entity. No funds 
authorized by other provisions of this title to be used for other 
purposes specified in this title shall be deposited in any Loan 
Fund. 
‘‘(d) STRATEGIC PLAN.— 
‘‘(1) IN GENERAL.—For purposes of subsection (b)(2), a stra-
tegic plan of an eligible entity under this subsection shall 
identify the intended uses of amounts available to the Loan 
Fund of such entity. 
‘‘(2) CONTENTS.—A strategic plan under paragraph (1), with 
respect to a Loan Fund of an eligible entity, shall include 
for a year the following: 
‘‘(A) A list of the projects to be assisted through the 
Loan Fund during such year. 
‘‘(B) A description of the criteria and methods estab-
lished for the distribution of funds from the Loan Fund 
during the year. 
‘‘(C) A description of the financial status of the Loan 
Fund as of the date of submission of the plan. 
‘‘(D) The short-term and long-term goals of the Loan 
Fund. 
‘‘(e) USE
OF FUNDS.—Amounts deposited in a Loan Fund, 
including loan repayments and interest earned on such amounts, 
shall be used only for awarding loans or loan guarantees, making 
reimbursements described in subsection (g)(4)(A), or as a source 
of reserve and security for leveraged loans, the proceeds of which 
are deposited in the Loan Fund established under subsection (c). 
Loans under this section may be used by a health care provider 
to— 
‘‘(1) facilitate the purchase of certified EHR technology; 
‘‘(2) enhance the utilization of certified EHR technology 
(which may include costs associated with upgrading health 
information technology so that it meets criteria necessary to 
be a certified EHR technology); 
‘‘(3) train personnel in the use of such technology; or 
‘‘(4) improve the secure electronic exchange of health 
information. 
‘‘(f) TYPES
OF ASSISTANCE.—Except as otherwise limited by 
applicable State law, amounts deposited into a Loan Fund under 
this section may only be used for the following: 
‘‘(1) To award loans that comply with the following: 
‘‘(A) The interest rate for each loan shall not exceed 
the market interest rate. 
‘‘(B) The principal and interest payments on each loan 
shall commence not later than 1 year after the date the 
loan was awarded, and each loan shall be fully amortized 
not later than 10 years after the date of the loan. 
‘‘(C) The Loan Fund shall be credited with all payments 
of principal and interest on each loan awarded from the 
Loan Fund. 
‘‘(2) To guarantee, or purchase insurance for, a local obliga-
tion (all of the proceeds of which finance a project eligible 
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123 STAT. 255 
PUBLIC LAW 111–5—FEB. 17, 2009 
for assistance under this subsection) if the guarantee or pur-
chase would improve credit market access or reduce the interest 
rate applicable to the obligation involved. 
‘‘(3) As a source of revenue or security for the payment 
of principal and interest on revenue or general obligation bonds 
issued by the eligible entity if the proceeds of the sale of 
the bonds will be deposited into the Loan Fund. 
‘‘(4) To earn interest on the amounts deposited into the 
Loan Fund. 
‘‘(5) To make reimbursements described in subsection 
(g)(4)(A). 
‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 
‘‘(1) COMBINED
FINANCIAL
ADMINISTRATION.—An eligible 
entity may (as a convenience and to avoid unnecessary adminis-
trative costs) combine, in accordance with applicable State law, 
the financial administration of a Loan Fund established under 
this subsection with the financial administration of any other 
revolving fund established by the entity if otherwise not prohib-
ited by the law under which the Loan Fund was established. 
‘‘(2) COST OF ADMINISTERING FUND.—Each eligible entity 
may annually use not to exceed 4 percent of the funds provided 
to the entity under a grant under this section to pay the 
reasonable costs of the administration of the programs under 
this section, including the recovery of reasonable costs expended 
to establish a Loan Fund which are incurred after the date 
of the enactment of this title. 
‘‘(3) GUIDANCE AND REGULATIONS.—The National Coordi-
nator shall publish guidance and promulgate regulations as 
may be necessary to carry out the provisions of this section, 
including— 
‘‘(A) provisions to ensure that each eligible entity com-
mits and expends funds allotted to the entity under this 
section as efficiently as possible in accordance with this 
title and applicable State laws; and 
‘‘(B) guidance to prevent waste, fraud, and abuse. 
‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—A Loan Fund established under this 
section may accept contributions from private sector enti-
ties, except that such entities may not specify the recipient 
or recipients of any loan issued under this subsection. 
An eligible entity may agree to reimburse a private sector 
entity for any contribution made under this subparagraph, 
except that the amount of such reimbursement may not 
be greater than the principal amount of the contribution 
made. 
‘‘(B) AVAILABILITY OF INFORMATION.—An eligible entity 
shall make publicly available the identity of, and amount 
contributed by, any private sector entity under subpara-
graph (A) and may issue letters of commendation or make 
other awards (that have no financial value) to any such 
entity. 
‘‘(h) MATCHING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The National Coordinator may not make 
a grant under subsection (a) to an eligible entity unless the 
entity agrees to make available (directly or through donations 
from public or private entities) non-Federal contributions in 
cash to the costs of carrying out the activities for which the 
Publication. 
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123 STAT. 256 
PUBLIC LAW 111–5—FEB. 17, 2009 
grant is awarded in an amount equal to not less than $1 
for each $5 of Federal funds provided under the grant. 
‘‘(2) DETERMINATION
OF
AMOUNT
OF
NON-FEDERAL
CON-
TRIBUTION.—In determining the amount of non-Federal con-
tributions that an eligible entity has provided pursuant to 
subparagraph (A), the National Coordinator may not include 
any amounts provided to the entity by the Federal Government. 
‘‘(i) EFFECTIVE DATE.—The Secretary may not make an award 
under this section prior to January 1, 2010. 
‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION 
TECHNOLOGY INTO CLINICAL EDUCATION. 
‘‘(a) IN GENERAL.—The Secretary may award grants under this 
section to carry out demonstration projects to develop academic 
curricula integrating certified EHR technology in the clinical edu-
cation of health professionals. Such awards shall be made on a 
competitive basis and pursuant to peer review. 
‘‘(b) ELIGIBILITY.—To be eligible to receive a grant under sub-
section (a), an entity shall— 
‘‘(1) submit to the Secretary an application at such time, 
in such manner, and containing such information as the Sec-
retary may require; 
‘‘(2) submit to the Secretary a strategic plan for integrating 
certified EHR technology in the clinical education of health 
professionals to reduce medical errors, increase access to 
prevention, reduce chronic diseases, and enhance health care 
quality; 
‘‘(3) be— 
‘‘(A) a school of medicine, osteopathic medicine, den-
tistry, or pharmacy, a graduate program in behavioral or 
mental health, or any other graduate health professions 
school; 
‘‘(B) a graduate school of nursing or physician assistant 
studies; 
‘‘(C) a consortium of two or more schools described 
in subparagraph (A) or (B); or 
‘‘(D) an institution with a graduate medical education 
program in medicine, osteopathic medicine, dentistry, phar-
macy, nursing, or physician assistance studies; 
‘‘(4) provide for the collection of data regarding the effective-
ness of the demonstration project to be funded under the grant 
in improving the safety of patients, the efficiency of health 
care delivery, and in increasing the likelihood that graduates 
of the grantee will adopt and incorporate certified EHR tech-
nology, in the delivery of health care services; and 
‘‘(5) provide matching funds in accordance with subsection 
(d). 
‘‘(c) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—With respect to a grant under subsection 
(a), an eligible entity shall— 
‘‘(A) use grant funds in collaboration with 2 or more 
disciplines; and 
‘‘(B) use grant funds to integrate certified EHR tech-
nology into community-based clinical education. 
‘‘(2) LIMITATION.—An eligible entity shall not use amounts 
received under a grant under subsection (a) to purchase hard-
ware, software, or services. 
Strategic plan. 
42 USC 300jj–35. 
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123 STAT. 257 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(d) FINANCIAL SUPPORT.—The Secretary may not provide more 
than 50 percent of the costs of any activity for which assistance 
is provided under subsection (a), except in an instance of national 
economic conditions which would render the cost-share requirement 
under this subsection detrimental to the program and upon notifica-
tion to Congress as to the justification to waive the cost-share 
requirement. 
‘‘(e) EVALUATION.—The Secretary shall take such action as may 
be necessary to evaluate the projects funded under this section 
and publish, make available, and disseminate the results of such 
evaluations on as wide a basis as is practicable. 
‘‘(f) REPORTS.—Not later than 1 year after the date of enactment 
of this title, and annually thereafter, the Secretary shall submit 
to the Committee on Health, Education, Labor, and Pensions and 
the Committee on Finance of the Senate, and the Committee on 
Energy and Commerce of the House of Representatives a report 
that— 
‘‘(1) describes the specific projects established under this 
section; and 
‘‘(2) contains recommendations for Congress based on the 
evaluation conducted under subsection (e). 
‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS IN HEALTH 
CARE. 
‘‘(a) IN GENERAL.—The Secretary, in consultation with the 
Director of the National Science Foundation, shall provide assist-
ance to institutions of higher education (or consortia thereof) to 
establish or expand medical health informatics education programs, 
including certification, undergraduate, and masters degree pro-
grams, for both health care and information technology students 
to ensure the rapid and effective utilization and development of 
health information technologies (in the United States health care 
infrastructure). 
‘‘(b) ACTIVITIES.—Activities for which assistance may be pro-
vided under subsection (a) may include the following: 
‘‘(1) Developing and revising curricula in medical health 
informatics and related disciplines. 
‘‘(2) Recruiting and retaining students to the program 
involved. 
‘‘(3) Acquiring equipment necessary for student instruction 
in these programs, including the installation of testbed net-
works for student use. 
‘‘(4) Establishing or enhancing bridge programs in the 
health informatics fields between community colleges and 
universities. 
‘‘(c) PRIORITY.—In providing assistance under subsection (a), 
the Secretary shall give preference to the following: 
‘‘(1) Existing education and training programs. 
‘‘(2) Programs designed to be completed in less than six 
months. 
‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 
‘‘(a) REPORTS.—The Secretary may require that an entity 
receiving assistance under this subtitle shall submit to the Sec-
retary, not later than the date that is 1 year after the date of 
receipt of such assistance, a report that includes— 
42 USC 300jj–37. 
42 USC 300jj–36. 
Publication. 
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123 STAT. 258 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(1) an analysis of the effectiveness of the activities for 
which the entity receives such assistance, as compared to the 
goals for such activities; and 
‘‘(2) an analysis of the impact of the project on health 
care quality and safety. 
‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE AND DECREASE 
IN COSTS.—The National Coordinator shall annually evaluate the 
activities conducted under this subtitle and shall, in awarding 
grants, implement the lessons learned from such evaluation in 
a manner so that awards made subsequent to each such evaluation 
are made in a manner that, in the determination of the National 
Coordinator, will result in the greatest improvement in the quality 
and efficiency of health care. 
‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 
‘‘For the purposes of carrying out this subtitle, there is author-
ized to be appropriated such sums as may be necessary for each 
of the fiscal years 2009 through 2013.’’. 
Subtitle D—Privacy 
SEC. 13400. DEFINITIONS. 
In this subtitle, except as specified otherwise: 
(1) BREACH.— 
(A) IN
GENERAL.—The term ‘‘breach’’ means the 
unauthorized acquisition, access, use, or disclosure of pro-
tected health information which compromises the security 
or privacy of such information, except where an unauthor-
ized person to whom such information is disclosed would 
not reasonably have been able to retain such information. 
(B) EXCEPTIONS.—The term ‘‘breach’’ does not include— 
(i) any unintentional acquisition, access, or use 
of protected health information by an employee or indi-
vidual acting under the authority of a covered entity 
or business associate if— 
(I) such acquisition, access, or use was made 
in good faith and within the course and scope 
of the employment or other professional relation-
ship of such employee or individual, respectively, 
with the covered entity or business associate; and 
(II) such information is not further acquired, 
accessed, used, or disclosed by any person; or 
(ii) any inadvertent disclosure from an individual 
who is otherwise authorized to access protected health 
information at a facility operated by a covered entity 
or business associate to another similarly situated indi-
vidual at same facility; and 
(iii) any such information received as a result of 
such disclosure is not further acquired, accessed, used, 
or disclosed without authorization by any person. 
(2) BUSINESS ASSOCIATE.—The term ‘‘business associate’’ 
has the meaning given such term in section 160.103 of title 
45, Code of Federal Regulations. 
(3) COVERED ENTITY.—The term ‘‘covered entity’’ has the 
meaning given such term in section 160.103 of title 45, Code 
of Federal Regulations. 
42 USC 17921. 
42 USC 300jj–38. 
Evaluation. 
Deadline. 
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123 STAT. 259 
PUBLIC LAW 111–5—FEB. 17, 2009 
(4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘disclosure’’ have 
the meaning given the term ‘‘disclosure’’ in section 160.103 
of title 45, Code of Federal Regulations. 
(5) ELECTRONIC
HEALTH
RECORD.—The term ‘‘electronic 
health record’’ means an electronic record of health-related 
information on an individual that is created, gathered, man-
aged, and consulted by authorized health care clinicians and 
staff. 
(6) HEALTH CARE OPERATIONS.—The term ‘‘health care oper-
ation’’ has the meaning given such term in section 164.501 
of title 45, Code of Federal Regulations. 
(7) HEALTH CARE PROVIDER.—The term ‘‘health care pro-
vider’’ has the meaning given such term in section 160.103 
of title 45, Code of Federal Regulations. 
(8) HEALTH PLAN.—The term ‘‘health plan’’ has the meaning 
given such term in section 160.103 of title 45, Code of Federal 
Regulations. 
(9) NATIONAL COORDINATOR.—The term ‘‘National Coordi-
nator’’ means the head of the Office of the National Coordinator 
for Health Information Technology established under section 
3001(a) of the Public Health Service Act, as added by section 
13101. 
(10) PAYMENT.—The term ‘‘payment’’ has the meaning 
given such term in section 164.501 of title 45, Code of Federal 
Regulations. 
(11) PERSONAL
HEALTH
RECORD.—The term ‘‘personal 
health record’’ means an electronic record of PHR identifiable 
health information (as defined in section 13407(f)(2)) on an 
individual that can be drawn from multiple sources and that 
is managed, shared, and controlled by or primarily for the 
individual. 
(12) PROTECTED
HEALTH
INFORMATION.—The term ‘‘pro-
tected health information’’ has the meaning given such term 
in section 160.103 of title 45, Code of Federal Regulations. 
(13) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Health and Human Services. 
(14) SECURITY.—The term ‘‘security’’ has the meaning given 
such term in section 164.304 of title 45, Code of Federal Regula-
tions. 
(15) STATE.—The term ‘‘State’’ means each of the several 
States, the District of Columbia, Puerto Rico, the Virgin Islands, 
Guam, American Samoa, and the Northern Mariana Islands. 
(16) TREATMENT.—The term ‘‘treatment’’ has the meaning 
given such term in section 164.501 of title 45, Code of Federal 
Regulations. 
(17) USE.—The term ‘‘use’’ has the meaning given such 
term in section 160.103 of title 45, Code of Federal Regulations. 
(18) VENDOR OF PERSONAL HEALTH RECORDS.—The term 
‘‘vendor of personal health records’’ means an entity, other 
than a covered entity (as defined in paragraph (3)), that offers 
or maintains a personal health record. 
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123 STAT. 260 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART 1—IMPROVED PRIVACY PROVISIONS 
AND SECURITY PROVISIONS 
SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES 
TO BUSINESS ASSOCIATES OF COVERED ENTITIES; 
ANNUAL GUIDANCE ON SECURITY PROVISIONS. 
(a) APPLICATION OF SECURITY PROVISIONS.—Sections 164.308, 
164.310, 164.312, and 164.316 of title 45, Code of Federal Regula-
tions, shall apply to a business associate of a covered entity in 
the same manner that such sections apply to the covered entity. 
The additional requirements of this title that relate to security 
and that are made applicable with respect to covered entities shall 
also be applicable to such a business associate and shall be incor-
porated into the business associate agreement between the business 
associate and the covered entity. 
(b) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.—In the 
case of a business associate that violates any security provision 
specified in subsection (a), sections 1176 and 1177 of the Social 
Security Act (42 U.S.C. 1320d–5, 1320d–6) shall apply to the busi-
ness associate with respect to such violation in the same manner 
such sections apply to a covered entity that violates such security 
provision. 
(c) ANNUAL GUIDANCE.—For the first year beginning after the 
date of the enactment of this Act and annually thereafter, the 
Secretary of Health and Human Services shall, after consultation 
with stakeholders, annually issue guidance on the most effective 
and appropriate technical safeguards for use in carrying out the 
sections referred to in subsection (a) and the security standards 
in subpart C of part 164 of title 45, Code of Federal Regulations, 
including 
the 
use 
of 
standards 
developed 
under 
section 
3002(b)(2)(B)(vi) of the Public Health Service Act, as added by 
section 13101 of this Act, as such provisions are in effect as of 
the date before the enactment of this Act. 
SEC. 13402. NOTIFICATION IN THE CASE OF BREACH. 
(a) IN GENERAL.—A covered entity that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise holds, uses, 
or discloses unsecured protected health information (as defined 
in subsection (h)(1)) shall, in the case of a breach of such information 
that is discovered by the covered entity, notify each individual 
whose unsecured protected health information has been, or is 
reasonably believed by the covered entity to have been, accessed, 
acquired, or disclosed as a result of such breach. 
(b) NOTIFICATION
OF COVERED ENTITY
BY BUSINESS ASSO-
CIATE.—A business associate of a covered entity that accesses, main-
tains, retains, modifies, records, stores, destroys, or otherwise holds, 
uses, or discloses unsecured protected health information shall, 
following the discovery of a breach of such information, notify 
the covered entity of such breach. Such notice shall include the 
identification of each individual whose unsecured protected health 
information has been, or is reasonably believed by the business 
associate to have been, accessed, acquired, or disclosed during such 
breach. 
(c) BREACHES TREATED AS DISCOVERED.—For purposes of this 
section, a breach shall be treated as discovered by a covered entity 
or by a business associate as of the first day on which such breach 
is known to such entity or associate, respectively, (including any 
42 USC 17932. 
42 USC 17931. 
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123 STAT. 261 
PUBLIC LAW 111–5—FEB. 17, 2009 
person, other than the individual committing the breach, that is 
an employee, officer, or other agent of such entity or associate, 
respectively) or should reasonably have been known to such entity 
or associate (or person) to have occurred. 
(d) TIMELINESS OF NOTIFICATION.— 
(1) IN GENERAL.—Subject to subsection (g), all notifications 
required under this section shall be made without unreasonable 
delay and in no case later than 60 calendar days after the 
discovery of a breach by the covered entity involved (or business 
associate involved in the case of a notification required under 
subsection (b)). 
(2) BURDEN OF PROOF.—The covered entity involved (or 
business associate involved in the case of a notification required 
under subsection (b)), shall have the burden of demonstrating 
that all notifications were made as required under this part, 
including evidence demonstrating the necessity of any delay. 
(e) METHODS OF NOTICE.— 
(1) INDIVIDUAL NOTICE.—Notice required under this section 
to be provided to an individual, with respect to a breach, 
shall be provided promptly and in the following form: 
(A) Written notification by first-class mail to the indi-
vidual (or the next of kin of the individual if the individual 
is deceased) at the last known address of the individual 
or the next of kin, respectively, or, if specified as a pref-
erence by the individual, by electronic mail. The notification 
may be provided in one or more mailings as information 
is available. 
(B) In the case in which there is insufficient, or out- 
of-date contact information (including a phone number, 
email address, or any other form of appropriate communica-
tion) that precludes direct written (or, if specified by the 
individual under subparagraph (A), electronic) notification 
to the individual, a substitute form of notice shall be pro-
vided, including, in the case that there are 10 or more 
individuals for which there is insufficient or out-of-date 
contact information, a conspicuous posting for a period 
determined by the Secretary on the home page of the 
Web site of the covered entity involved or notice in major 
print or broadcast media, including major media in 
geographic areas where the individuals affected by the 
breach likely reside. Such a notice in media or web posting 
will include a toll-free phone number where an individual 
can learn whether or not the individual’s unsecured pro-
tected health information is possibly included in the breach. 
(C) In any case deemed by the covered entity involved 
to require urgency because of possible imminent misuse 
of unsecured protected health information, the covered 
entity, in addition to notice provided under subparagraph 
(A), may provide information to individuals by telephone 
or other means, as appropriate. 
(2) MEDIA NOTICE.—Notice shall be provided to prominent 
media outlets serving a State or jurisdiction, following the 
discovery of a breach described in subsection (a), if the 
unsecured protected health information of more than 500 resi-
dents of such State or jurisdiction is, or is reasonably believed 
to have been, accessed, acquired, or disclosed during such 
breach. 
Web posting. 
Deadline. 
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123 STAT. 262 
PUBLIC LAW 111–5—FEB. 17, 2009 
(3) NOTICE
TO
SECRETARY.—Notice shall be provided to 
the Secretary by covered entities of unsecured protected health 
information that has been acquired or disclosed in a breach. 
If the breach was with respect to 500 or more individuals 
than such notice must be provided immediately. If the breach 
was with respect to less than 500 individuals, the covered 
entity may maintain a log of any such breach occurring and 
annually submit such a log to the Secretary documenting such 
breaches occurring during the year involved. 
(4) POSTING ON HHS PUBLIC WEBSITE.—The Secretary shall 
make available to the public on the Internet website of the 
Department of Health and Human Services a list that identifies 
each covered entity involved in a breach described in subsection 
(a) in which the unsecured protected health information of 
more than 500 individuals is acquired or disclosed. 
(f) CONTENT OF NOTIFICATION.—Regardless of the method by 
which notice is provided to individuals under this section, notice 
of a breach shall include, to the extent possible, the following: 
(1) A brief description of what happened, including the 
date of the breach and the date of the discovery of the breach, 
if known. 
(2) A description of the types of unsecured protected health 
information that were involved in the breach (such as full 
name, Social Security number, date of birth, home address, 
account number, or disability code). 
(3) The steps individuals should take to protect themselves 
from potential harm resulting from the breach. 
(4) A brief description of what the covered entity involved 
is doing to investigate the breach, to mitigate losses, and to 
protect against any further breaches. 
(5) Contact procedures for individuals to ask questions 
or learn additional information, which shall include a toll- 
free telephone number, an e-mail address, Web site, or postal 
address. 
(g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW ENFORCE-
MENT PURPOSES.—If a law enforcement official determines that 
a notification, notice, or posting required under this section would 
impede a criminal investigation or cause damage to national secu-
rity, such notification, notice, or posting shall be delayed in the 
same manner as provided under section 164.528(a)(2) of title 45, 
Code of Federal Regulations, in the case of a disclosure covered 
under such section. 
(h) UNSECURED PROTECTED HEALTH INFORMATION.— 
(1) DEFINITION.— 
(A) IN GENERAL.—Subject to subparagraph (B), for pur-
poses of this section, the term ‘‘unsecured protected health 
information’’ means protected health information that is 
not secured through the use of a technology or methodology 
specified by the Secretary in the guidance issued under 
paragraph (2). 
(B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED.— 
In the case that the Secretary does not issue guidance 
under paragraph (2) by the date specified in such para-
graph, for purposes of this section, the term ‘‘unsecured 
protected health information’’ shall mean protected health 
information that is not secured by a technology standard 
that renders protected health information unusable, 
List. 
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123 STAT. 263 
PUBLIC LAW 111–5—FEB. 17, 2009 
unreadable, or indecipherable to unauthorized individuals 
and is developed or endorsed by a standards developing 
organization that is accredited by the American National 
Standards Institute. 
(2) GUIDANCE.—For purposes of paragraph (1) and section 
13407(f)(3), not later than the date that is 60 days after the 
date of the enactment of this Act, the Secretary shall, after 
consultation with stakeholders, issue (and annually update) 
guidance specifying the technologies and methodologies that 
render protected health information unusable, unreadable, or 
indecipherable to unauthorized individuals, including the use 
of standards developed under section 3002(b)(2)(B)(vi) of the 
Public Health Service Act, as added by section 13101 of this 
Act. 
(i) REPORT TO CONGRESS ON BREACHES.— 
(1) IN GENERAL.—Not later than 12 months after the date 
of the enactment of this Act and annually thereafter, the Sec-
retary shall prepare and submit to the Committee on Finance 
and the Committee on Health, Education, Labor, and Pensions 
of the Senate and the Committee on Ways and Means and 
the Committee on Energy and Commerce of the House of Rep-
resentatives a report containing the information described in 
paragraph (2) regarding breaches for which notice was provided 
to the Secretary under subsection (e)(3). 
(2) INFORMATION.—The information described in this para-
graph regarding breaches specified in paragraph (1) shall 
include— 
(A) the number and nature of such breaches; and 
(B) actions taken in response to such breaches. 
(j) REGULATIONS; EFFECTIVE DATE.—To carry out this section, 
the Secretary of Health and Human Services shall promulgate 
interim final regulations by not later than the date that is 180 
days after the date of the enactment of this title. The provisions 
of this section shall apply to breaches that are discovered on or 
after the date that is 30 days after the date of publication of 
such interim final regulations. 
SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY. 
(a) REGIONAL OFFICE PRIVACY ADVISORS.—Not later than 6 
months after the date of the enactment of this Act, the Secretary 
shall designate an individual in each regional office of the Depart-
ment of Health and Human Services to offer guidance and education 
to covered entities, business associates, and individuals on their 
rights and responsibilities related to Federal privacy and security 
requirements for protected health information. 
(b) EDUCATION INITIATIVE ON USES OF HEALTH INFORMATION.— 
Not later than 12 months after the date of the enactment of this 
Act, the Office for Civil Rights within the Department of Health 
and Human Services shall develop and maintain a multi-faceted 
national education initiative to enhance public transparency 
regarding the uses of protected health information, including pro-
grams to educate individuals about the potential uses of their 
protected health information, the effects of such uses, and the 
rights of individuals with respect to such uses. Such programs 
shall be conducted in a variety of languages and present information 
in a clear and understandable manner. 
Deadline. 
Deadline. 
Designation. 
42 USC 17933. 
Applicability. 
Deadlines. 
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123 STAT. 264 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES 
TO BUSINESS ASSOCIATES OF COVERED ENTITIES. 
(a) APPLICATION
OF CONTRACT REQUIREMENTS.—In the case 
of a business associate of a covered entity that obtains or creates 
protected health information pursuant to a written contract (or 
other written arrangement) described in section 164.502(e)(2) of 
title 45, Code of Federal Regulations, with such covered entity, 
the business associate may use and disclose such protected health 
information only if such use or disclosure, respectively, is in compli-
ance with each applicable requirement of section 164.504(e) of such 
title. The additional requirements of this subtitle that relate to 
privacy and that are made applicable with respect to covered enti-
ties shall also be applicable to such a business associate and shall 
be incorporated into the business associate agreement between the 
business associate and the covered entity. 
(b) APPLICATION OF KNOWLEDGE ELEMENTS ASSOCIATED WITH 
CONTRACTS.—Section 164.504(e)(1)(ii) of title 45, Code of Federal 
Regulations, shall apply to a business associate described in sub-
section (a), with respect to compliance with such subsection, in 
the same manner that such section applies to a covered entity, 
with respect to compliance with the standards in sections 164.502(e) 
and 164.504(e) of such title, except that in applying such section 
164.504(e)(1)(ii) each reference to the business associate, with 
respect to a contract, shall be treated as a reference to the covered 
entity involved in such contract. 
(c) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.—In the 
case of a business associate that violates any provision of subsection 
(a) or (b), the provisions of sections 1176 and 1177 of the Social 
Security Act (42 U.S.C. 1320d–5, 1320d–6) shall apply to the busi-
ness associate with respect to such violation in the same manner 
as such provisions apply to a person who violates a provision 
of part C of title XI of such Act. 
SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF 
HEALTH INFORMATION; ACCOUNTING OF CERTAIN PRO-
TECTED HEALTH INFORMATION DISCLOSURES; ACCESS 
TO CERTAIN INFORMATION IN ELECTRONIC FORMAT. 
(a) REQUESTED RESTRICTIONS
ON CERTAIN DISCLOSURES
OF 
HEALTH INFORMATION.—In the case that an individual requests 
under paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code 
of Federal Regulations, that a covered entity restrict the disclosure 
of the protected health information of the individual, notwith-
standing paragraph (a)(1)(ii) of such section, the covered entity 
must comply with the requested restriction if— 
(1) except as otherwise required by law, the disclosure 
is to a health plan for purposes of carrying out payment or 
health care operations (and is not for purposes of carrying 
out treatment); and 
(2) the protected health information pertains solely to a 
health care item or service for which the health care provider 
involved has been paid out of pocket in full. 
(b) DISCLOSURES REQUIRED TO BE LIMITED TO THE LIMITED 
DATA SET OR THE MINIMUM NECESSARY.— 
(1) IN GENERAL.— 
(A) IN GENERAL.—Subject to subparagraph (B), a cov-
ered entity shall be treated as being in compliance with 
42 USC 17935. 
42 USC 17934. 
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123 STAT. 265 
PUBLIC LAW 111–5—FEB. 17, 2009 
section 164.502(b)(1) of title 45, Code of Federal Regula-
tions, with respect to the use, disclosure, or request of 
protected health information described in such section, only 
if the covered entity limits such protected health informa-
tion, to the extent practicable, to the limited data set 
(as defined in section 164.514(e)(2) of such title) or, if 
needed by such entity, to the minimum necessary to accom-
plish the intended purpose of such use, disclosure, or 
request, respectively. 
(B) GUIDANCE.—Not later than 18 months after the 
date of the enactment of this section, the Secretary shall 
issue guidance on what constitutes ‘‘minimum necessary’’ 
for purposes of subpart E of part 164 of title 45, Code 
of Federal Regulation. In issuing such guidance the Sec-
retary shall take into consideration the guidance under 
section 13424(c) and the information necessary to improve 
patient outcomes and to detect, prevent, and manage 
chronic disease. 
(C) SUNSET.—Subparagraph (A) shall not apply on and 
after the effective date on which the Secretary issues the 
guidance under subparagraph (B). 
(2) DETERMINATION OF MINIMUM NECESSARY.—For purposes 
of paragraph (1), in the case of the disclosure of protected 
health information, the covered entity or business associate 
disclosing such information shall determine what constitutes 
the minimum necessary to accomplish the intended purpose 
of such disclosure. 
(3) APPLICATION OF EXCEPTIONS.—The exceptions described 
in section 164.502(b)(2) of title 45, Code of Federal Regulations, 
shall apply to the requirement under paragraph (1) as of the 
effective date described in section 13423 in the same manner 
that such exceptions apply to section 164.502(b)(1) of such 
title before such date. 
(4) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed as affecting the use, disclosure, or request 
of protected health information that has been de-identified. 
(c) ACCOUNTING OF CERTAIN PROTECTED HEALTH INFORMATION 
DISCLOSURES REQUIRED
IF COVERED ENTITY USES ELECTRONIC 
HEALTH RECORD.— 
‘‘(1) IN GENERAL.—In applying section 164.528 of title 45, 
Code of Federal Regulations, in the case that a covered entity 
uses or maintains an electronic health record with respect 
to protected health information— 
‘‘(A) the exception under paragraph (a)(1)(i) of such 
section shall not apply to disclosures through an electronic 
health record made by such entity of such information; 
and 
‘‘(B) an individual shall have a right to receive an 
accounting of disclosures described in such paragraph of 
such information made by such covered entity during only 
the three years prior to the date on which the accounting 
is requested. 
‘‘(2) REGULATIONS.—The Secretary shall promulgate regula-
tions on what information shall be collected about each disclo-
sure referred to in paragraph (1), not later than 6 months 
after the date on which the Secretary adopts standards on 
accounting 
for 
disclosure 
described 
in 
the 
section 
Deadline. 
Deadline. 
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123 STAT. 266 
PUBLIC LAW 111–5—FEB. 17, 2009 
3002(b)(2)(B)(iv) of the Public Health Service Act, as added 
by section 13101. Such regulations shall only require such 
information to be collected through an electronic health record 
in a manner that takes into account the interests of the individ-
uals in learning the circumstances under which their protected 
health information is being disclosed and takes into account 
the administrative burden of accounting for such disclosures. 
‘‘(3) PROCESS.—In response to an request from an individual 
for an accounting, a covered entity shall elect to provide either 
an— 
‘‘(A) accounting, as specified under paragraph (1), for 
disclosures of protected health information that are made 
by such covered entity and by a business associate acting 
on behalf of the covered entity; or 
‘‘(B) accounting, as specified under paragraph (1), for 
disclosures that are made by such covered entity and pro-
vide a list of all business associates acting on behalf of 
the covered entity, including contact information for such 
associates (such as mailing address, phone, and email 
address). 
A business associate included on a list under subparagraph 
(B) shall provide an accounting of disclosures (as required under 
paragraph (1) for a covered entity) made by the business asso-
ciate upon a request made by an individual directly to the 
business associate for such an accounting. 
‘‘(4) EFFECTIVE DATE.— 
‘‘(A) CURRENT USERS OF ELECTRONIC RECORDS.—In the 
case of a covered entity insofar as it acquired an electronic 
health record as of January 1, 2009, paragraph (1) shall 
apply to disclosures, with respect to protected health 
information, made by the covered entity from such a record 
on and after January 1, 2014. 
‘‘(B) OTHERS.—In the case of a covered entity insofar 
as it acquires an electronic health record after January 
1, 2009, paragraph (1) shall apply to disclosures, with 
respect to protected health information, made by the cov-
ered entity from such record on and after the later of 
the following: 
‘‘(i) January 1, 2011; or 
‘‘(ii) the date that it acquires an electronic health 
record. 
‘‘(C) LATER DATE.—The Secretary may set an effective 
date that is later that the date specified under subpara-
graph (A) or (B) if the Secretary determines that such 
later date is necessary, but in no case may the date speci-
fied under— 
‘‘(i) subparagraph (A) be later than 2016; or 
‘‘(ii) subparagraph (B) be later than 2013.’’ 
(d) PROHIBITION ON SALE OF ELECTRONIC HEALTH RECORDS 
OR PROTECTED HEALTH INFORMATION.— 
(1) IN GENERAL.—Except as provided in paragraph (2), a 
covered entity or business associate shall not directly or 
indirectly receive remuneration in exchange for any protected 
health information of an individual unless the covered entity 
obtained from the individual, in accordance with section 164.508 
of title 45, Code of Federal Regulations, a valid authorization 
that includes, in accordance with such section, a specification 
Applicability. 
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123 STAT. 267 
PUBLIC LAW 111–5—FEB. 17, 2009 
of whether the protected health information can be further 
exchanged for remuneration by the entity receiving protected 
health information of that individual. 
(2) EXCEPTIONS.—Paragraph (1) shall not apply in the fol-
lowing cases: 
(A) The purpose of the exchange is for public health 
activities (as described in section 164.512(b) of title 45, 
Code of Federal Regulations). 
(B) The purpose of the exchange is for research (as 
described in sections 164.501 and 164.512(i) of title 45, 
Code of Federal Regulations) and the price charged reflects 
the costs of preparation and transmittal of the data for 
such purpose. 
(C) The purpose of the exchange is for the treatment 
of the individual, subject to any regulation that the Sec-
retary may promulgate to prevent protected health 
information from inappropriate access, use, or disclosure. 
(D) The purpose of the exchange is the health care 
operation specifically described in subparagraph (iv) of 
paragraph (6) of the definition of healthcare operations 
in section 164.501 of title 45, Code of Federal Regulations. 
(E) The purpose of the exchange is for remuneration 
that is provided by a covered entity to a business associate 
for activities involving the exchange of protected health 
information that the business associate undertakes on 
behalf of and at the specific request of the covered entity 
pursuant to a business associate agreement. 
(F) The purpose of the exchange is to provide an indi-
vidual with a copy of the individual’s protected health 
information pursuant to section 164.524 of title 45, Code 
of Federal Regulations. 
(G) The purpose of the exchange is otherwise deter-
mined by the Secretary in regulations to be similarly nec-
essary and appropriate as the exceptions provided in sub-
paragraphs (A) through (F). 
(3) REGULATIONS.—Not later than 18 months after the 
date of enactment of this title, the Secretary shall promulgate 
regulations to carry out this subsection. In promulgating such 
regulations, the Secretary— 
(A) shall evaluate the impact of restricting the excep-
tion described in paragraph (2)(A) to require that the price 
charged for the purposes described in such paragraph 
reflects the costs of the preparation and transmittal of 
the data for such purpose, on research or public health 
activities, including those conducted by or for the use of 
the Food and Drug Administration; and 
(B) may further restrict the exception described in 
paragraph (2)(A) to require that the price charged for the 
purposes described in such paragraph reflects the costs 
of the preparation and transmittal of the data for such 
purpose, if the Secretary finds that such further restriction 
will not impede such research or public health activities. 
(4) EFFECTIVE
DATE.—Paragraph (1) shall apply to 
exchanges occurring on or after the date that is 6 months 
after the date of the promulgation of final regulations imple-
menting this subsection. 
Deadline. 
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123 STAT. 268 
PUBLIC LAW 111–5—FEB. 17, 2009 
(e) ACCESS TO CERTAIN INFORMATION IN ELECTRONIC FORMAT.— 
In applying section 164.524 of title 45, Code of Federal Regulations, 
in the case that a covered entity uses or maintains an electronic 
health record with respect to protected health information of an 
individual— 
(1) the individual shall have a right to obtain from such 
covered entity a copy of such information in an electronic format 
and, if the individual chooses, to direct the covered entity 
to transmit such copy directly to an entity or person designated 
by the individual, provided that any such choice is clear, con-
spicuous, and specific; and 
(2) notwithstanding paragraph (c)(4) of such section, any 
fee that the covered entity may impose for providing such 
individual with a copy of such information (or a summary 
or explanation of such information) if such copy (or summary 
or explanation) is in an electronic form shall not be greater 
than the entity’s labor costs in responding to the request for 
the copy (or summary or explanation). 
SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH 
CARE OPERATIONS. 
(a) MARKETING.— 
(1) IN
GENERAL.—A communication by a covered entity 
or business associate that is about a product or service and 
that encourages recipients of the communication to purchase 
or use the product or service shall not be considered a health 
care operation for purposes of subpart E of part 164 of title 
45, Code of Federal Regulations, unless the communication 
is made as described in subparagraph (i), (ii), or (iii) of para-
graph (1) of the definition of marketing in section 164.501 
of such title. 
(2) PAYMENT FOR CERTAIN COMMUNICATIONS.—A commu-
nication by a covered entity or business associate that is 
described in subparagraph (i), (ii), or (iii) of paragraph (1) 
of the definition of marketing in section 164.501 of title 45, 
Code of Federal Regulations, shall not be considered a health 
care operation for purposes of subpart E of part 164 of title 
45, Code of Federal Regulations if the covered entity receives 
or has received direct or indirect payment in exchange for 
making such communication, except where— 
(A)(i) such communication describes only a drug or 
biologic that is currently being prescribed for the recipient 
of the communication; and 
(ii) any payment received by such covered entity in 
exchange for making a communication described in clause 
(i) is reasonable in amount; 
(B) each of the following conditions apply— 
(i) the communication is made by the covered 
entity; and 
(ii) the covered entity making such communication 
obtains from the recipient of the communication, in 
accordance with section 164.508 of title 45, Code of 
Federal 
Regulations, 
a 
valid 
authorization 
(as 
described in paragraph (b) of such section) with respect 
to such communication; or 
(C) each of the following conditions apply— 
42 USC 17936. 
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123 STAT. 269 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) the communication is made by a business asso-
ciate on behalf of the covered entity; and 
(ii) the communication is consistent with the writ-
ten contract (or other written arrangement described 
in section 164.502(e)(2) of such title) between such 
business associate and covered entity. 
(3) REASONABLE
IN
AMOUNT
DEFINED.—For purposes of 
paragraph (2), the term ‘‘reasonable in amount’’ shall have 
the meaning given such term by the Secretary by regulation. 
(4) DIRECT OR INDIRECT PAYMENT.—For purposes of para-
graph (2), the term ‘‘direct or indirect payment’’ shall not 
include any payment for treatment (as defined in section 
164.501 of title 45, Code of Federal Regulations) of an indi-
vidual. 
(b) OPPORTUNITY TO OPT OUT OF FUNDRAISING.—The Secretary 
shall by rule provide that any written fundraising communication 
that is a healthcare operation as defined under section 164.501 
of title 45, Code of Federal Regulations, shall, in a clear and 
conspicuous manner, provide an opportunity for the recipient of 
the communications to elect not to receive any further such commu-
nication. When an individual elects not to receive any further 
such communication, such election shall be treated as a revocation 
of authorization under section 164.508 of title 45, Code of Federal 
Regulations. 
(c) EFFECTIVE DATE.—This section shall apply to written 
communications occurring on or after the effective date specified 
under section 13423. 
SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR 
VENDORS OF PERSONAL HEALTH RECORDS AND OTHER 
NON-HIPAA COVERED ENTITIES. 
(a) IN GENERAL.—In accordance with subsection (c), each vendor 
of personal health records, following the discovery of a breach 
of security of unsecured PHR identifiable health information that 
is in a personal health record maintained or offered by such vendor, 
and each entity described in clause (ii), (iii), or (iv) of section 
13424(b)(1)(A), following the discovery of a breach of security of 
such information that is obtained through a product or service 
provided by such entity, shall— 
(1) notify each individual who is a citizen or resident of 
the United States whose unsecured PHR identifiable health 
information was acquired by an unauthorized person as a result 
of such a breach of security; and 
(2) notify the Federal Trade Commission. 
(b) NOTIFICATION BY THIRD PARTY SERVICE PROVIDERS.—A third 
party service provider that provides services to a vendor of personal 
health records or to an entity described in clause (ii), (iii). or 
(iv) of section 13424(b)(1)(A) in connection with the offering or 
maintenance of a personal health record or a related product or 
service and that accesses, maintains, retains, modifies, records, 
stores, destroys, or otherwise holds, uses, or discloses unsecured 
PHR identifiable health information in such a record as a result 
of such services shall, following the discovery of a breach of security 
of such information, notify such vendor or entity, respectively, of 
such breach. Such notice shall include the identification of each 
individual whose unsecured PHR identifiable health information 
42 USC 17937. 
Regulations. 
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123 STAT. 270 
PUBLIC LAW 111–5—FEB. 17, 2009 
has been, or is reasonably believed to have been, accessed, acquired, 
or disclosed during such breach. 
(c) APPLICATION OF REQUIREMENTS FOR TIMELINESS, METHOD, 
AND CONTENT OF NOTIFICATIONS.—Subsections (c), (d), (e), and (f) 
of section 13402 shall apply to a notification required under sub-
section (a) and a vendor of personal health records, an entity 
described in subsection (a) and a third party service provider 
described in subsection (b), with respect to a breach of security 
under subsection (a) of unsecured PHR identifiable health informa-
tion in such records maintained or offered by such vendor, in 
a manner specified by the Federal Trade Commission. 
(d) NOTIFICATION
OF
THE
SECRETARY.—Upon receipt of a 
notification of a breach of security under subsection (a)(2), the 
Federal Trade Commission shall notify the Secretary of such breach. 
(e) ENFORCEMENT.—A violation of subsection (a) or (b) shall 
be treated as an unfair and deceptive act or practice in violation 
of a regulation under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or decep-
tive acts or practices. 
(f) DEFINITIONS.—For purposes of this section: 
(1) BREACH OF SECURITY.—The term ‘‘breach of security’’ 
means, with respect to unsecured PHR identifiable health 
information of an individual in a personal health record, 
acquisition of such information without the authorization of 
the individual. 
(2) PHR IDENTIFIABLE
HEALTH
INFORMATION.—The term 
‘‘PHR identifiable health information’’ means individually 
identifiable health information, as defined in section 1171(6) 
of the Social Security Act (42 U.S.C. 1320d(6)), and includes, 
with respect to an individual, information— 
(A) that is provided by or on behalf of the individual; 
and 
(B) that identifies the individual or with respect to 
which there is a reasonable basis to believe that the 
information can be used to identify the individual. 
(3) UNSECURED PHR IDENTIFIABLE HEALTH INFORMATION.— 
(A) IN
GENERAL.—Subject to subparagraph (B), the 
term ‘‘unsecured PHR identifiable health information’’ 
means PHR identifiable health information that is not 
protected through the use of a technology or methodology 
specified by the Secretary in the guidance issued under 
section 13402(h)(2). 
(B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED.— 
In the case that the Secretary does not issue guidance 
under section 13402(h)(2) by the date specified in such 
section, for purposes of this section, the term ‘‘unsecured 
PHR identifiable health information’’ shall mean PHR 
identifiable health information that is not secured by a 
technology standard that renders protected health informa-
tion unusable, unreadable, or indecipherable to unauthor-
ized individuals and that is developed or endorsed by a 
standards developing organization that is accredited by 
the American National Standards Institute. 
(g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 
(1) REGULATIONS; EFFECTIVE DATE.—To carry out this sec-
tion, the Federal Trade Commission shall promulgate interim 
final regulations by not later than the date that is 180 days 
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123 STAT. 271 
PUBLIC LAW 111–5—FEB. 17, 2009 
after the date of the enactment of this section. The provisions 
of this section shall apply to breaches of security that are 
discovered on or after the date that is 30 days after the date 
of publication of such interim final regulations. 
(2) SUNSET.—If Congress enacts new legislation estab-
lishing requirements for notification in the case of a breach 
of security, that apply to entities that are not covered entities 
or business associates, the provisions of this section shall not 
apply to breaches of security discovered on or after the effective 
date of regulations implementing such legislation. 
SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CER-
TAIN ENTITIES. 
Each organization, with respect to a covered entity, that pro-
vides data transmission of protected health information to such 
entity (or its business associate) and that requires access on a 
routine basis to such protected health information, such as a Health 
Information Exchange Organization, Regional Health Information 
Organization, E-prescribing Gateway, or each vendor that contracts 
with a covered entity to allow that covered entity to offer a personal 
health record to patients as part of its electronic health record, 
is required to enter into a written contract (or other written arrange-
ment) described in section 164.502(e)(2) of title 45, Code of Federal 
Regulations and a written contract (or other arrangement) described 
in section 164.308(b) of such title, with such entity and shall be 
treated as a business associate of the covered entity for purposes 
of the provisions of this subtitle and subparts C and E of part 
164 of title 45, Code of Federal Regulations, as such provisions 
are in effect as of the date of enactment of this title. 
SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLO-
SURES CRIMINAL PENALTIES. 
Section 1177(a) of the Social Security Act (42 U.S.C. 1320d– 
6(a)) is amended by adding at the end the following new sentence: 
‘‘For purposes of the previous sentence, a person (including an 
employee or other individual) shall be considered to have obtained 
or disclosed individually identifiable health information in violation 
of this part if the information is maintained by a covered entity 
(as defined in the HIPAA privacy regulation described in section 
1180(b)(3)) and the individual obtained or disclosed such informa-
tion without authorization.’’. 
SEC. 13410. IMPROVED ENFORCEMENT. 
(a) IN GENERAL.— 
(1) NONCOMPLIANCE DUE TO WILLFUL NEGLECT.—Section 
1176 of the Social Security Act (42 U.S.C. 1320d–5) is 
amended— 
(A) in subsection (b)(1), by striking ‘‘the act constitutes 
an offense punishable under section 1177’’ and inserting 
‘‘a penalty has been imposed under section 1177 with 
respect to such act’’; and 
(B) by adding at the end the following new subsection: 
‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NEGLECT.— 
‘‘(1) IN GENERAL.—A violation of a provision of this part 
due to willful neglect is a violation for which the Secretary 
is required to impose a penalty under subsection (a)(1). 
‘‘(2) REQUIRED INVESTIGATION.—For purposes of paragraph 
(1), the Secretary shall formally investigate any complaint of 
42 USC 17939. 
42 USC 17938. 
Applicability. 
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123 STAT. 272 
PUBLIC LAW 111–5—FEB. 17, 2009 
a violation of a provision of this part if a preliminary investiga-
tion of the facts of the complaint indicate such a possible 
violation due to willful neglect.’’. 
(2) ENFORCEMENT UNDER SOCIAL SECURITY ACT.—Any viola-
tion by a covered entity under thus subtitle is subject to enforce-
ment and penalties under section 1176 and 1177 of the Social 
Security Act. 
(b) EFFECTIVE DATE; REGULATIONS.— 
(1) The amendments made by subsection (a) shall apply 
to penalties imposed on or after the date that is 24 months 
after the date of the enactment of this title. 
(2) Not later than 18 months after the date of the enact-
ment of this title, the Secretary of Health and Human Services 
shall promulgate regulations to implement such amendments. 
(c) DISTRIBUTION OF CERTAIN CIVIL MONETARY PENALTIES COL-
LECTED.— 
(1) IN GENERAL.—Subject to the regulation promulgated 
pursuant to paragraph (3), any civil monetary penalty or mone-
tary settlement collected with respect to an offense punishable 
under this subtitle or section 1176 of the Social Security Act 
(42 U.S.C. 1320d–5) insofar as such section relates to privacy 
or security shall be transferred to the Office for Civil Rights 
of the Department of Health and Human Services to be used 
for purposes of enforcing the provisions of this subtitle and 
subparts C and E of part 164 of title 45, Code of Federal 
Regulations, as such provisions are in effect as of the date 
of enactment of this Act. 
(2) GAO REPORT.—Not later than 18 months after the 
date of the enactment of this title, the Comptroller General 
shall submit to the Secretary a report including recommenda-
tions for a methodology under which an individual who is 
harmed by an act that constitutes an offense referred to in 
paragraph (1) may receive a percentage of any civil monetary 
penalty or monetary settlement collected with respect to such 
offense. 
(3) ESTABLISHMENT
OF
METHODOLOGY
TO
DISTRIBUTE 
PERCENTAGE OF CMPS COLLECTED TO HARMED INDIVIDUALS.— 
Not later than 3 years after the date of the enactment of 
this title, the Secretary shall establish by regulation and based 
on the recommendations submitted under paragraph (2), a 
methodology under which an individual who is harmed by 
an act that constitutes an offense referred to in paragraph 
(1) may receive a percentage of any civil monetary penalty 
or monetary settlement collected with respect to such offense. 
(4) APPLICATION
OF
METHODOLOGY.—The methodology 
under paragraph (3) shall be applied with respect to civil mone-
tary penalties or monetary settlements imposed on or after 
the effective date of the regulation. 
(d) TIERED INCREASE IN AMOUNT OF CIVIL MONETARY PEN-
ALTIES.— 
(1) IN GENERAL.—Section 1176(a)(1) of the Social Security 
Act (42 U.S.C. 1320d–5(a)(1)) is amended by striking ‘‘who 
violates a provision of this part a penalty of not more than’’ 
and all that follows and inserting the following: ‘‘who violates 
a provision of this part— 
‘‘(A) in the case of a violation of such provision in 
which it is established that the person did not know (and 
Deadline. 
Deadline. 
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123 STAT. 273 
PUBLIC LAW 111–5—FEB. 17, 2009 
by exercising reasonable diligence would not have known) 
that such person violated such provision, a penalty for 
each such violation of an amount that is at least the 
amount described in paragraph (3)(A) but not to exceed 
the amount described in paragraph (3)(D); 
‘‘(B) in the case of a violation of such provision in 
which it is established that the violation was due to reason-
able cause and not to willful neglect, a penalty for each 
such violation of an amount that is at least the amount 
described in paragraph (3)(B) but not to exceed the amount 
described in paragraph (3)(D); and 
‘‘(C) in the case of a violation of such provision in 
which it is established that the violation was due to willful 
neglect— 
‘‘(i) if the violation is corrected as described in 
subsection (b)(3)(A), a penalty in an amount that is 
at least the amount described in paragraph (3)(C) but 
not to exceed the amount described in paragraph (3)(D); 
and 
‘‘(ii) if the violation is not corrected as described 
in such subsection, a penalty in an amount that is 
at least the amount described in paragraph (3)(D). 
In determining the amount of a penalty under this section 
for a violation, the Secretary shall base such determination 
on the nature and extent of the violation and the nature 
and extent of the harm resulting from such violation.’’. 
(2) TIERS
OF
PENALTIES
DESCRIBED.—Section 1176(a) of 
such Act (42 U.S.C. 1320d–5(a)) is further amended by adding 
at the end the following new paragraph: 
‘‘(3) TIERS OF PENALTIES DESCRIBED.—For purposes of para-
graph (1), with respect to a violation by a person of a provision 
of this part— 
‘‘(A) the amount described in this subparagraph is 
$100 for each such violation, except that the total amount 
imposed on the person for all such violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $25,000; 
‘‘(B) the amount described in this subparagraph is 
$1,000 for each such violation, except that the total amount 
imposed on the person for all such violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $100,000; 
‘‘(C) the amount described in this subparagraph is 
$10,000 for each such violation, except that the total 
amount imposed on the person for all such violations of 
an identical requirement or prohibition during a calendar 
year may not exceed $250,000; and 
‘‘(D) the amount described in this subparagraph is 
$50,000 for each such violation, except that the total 
amount imposed on the person for all such violations of 
an identical requirement or prohibition during a calendar 
year may not exceed $1,500,000.’’. 
(3) CONFORMING
AMENDMENTS.—Section 1176(b) of such 
Act (42 U.S.C. 1320d–5(b)) is amended— 
(A) by striking paragraph (2) and redesignating para-
graphs (3) and (4) as paragraphs (2) and (3), respectively; 
and 
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123 STAT. 274 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) in paragraph (2), as so redesignated— 
(i) in subparagraph (A), by striking ‘‘in subpara-
graph (B), a penalty may not be imposed under sub-
section (a) if’’ and all that follows through ‘‘the failure 
to comply is corrected’’ and inserting ‘‘in subparagraph 
(B) or subsection (a)(1)(C), a penalty may not be 
imposed under subsection (a) if the failure to comply 
is corrected’’; and 
(ii) in subparagraph (B), by striking ‘‘(A)(ii)’’ and 
inserting ‘‘(A)’’ each place it appears. 
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to violations occurring after the date of 
the enactment of this title. 
(e) ENFORCEMENT THROUGH STATE ATTORNEYS GENERAL.— 
(1) IN GENERAL.—Section 1176 of the Social Security Act 
(42 U.S.C. 1320d–5) is amended by adding at the end the 
following new subsection: 
‘‘(d) ENFORCEMENT BY STATE ATTORNEYS GENERAL.— 
‘‘(1) CIVIL ACTION.—Except as provided in subsection (b), 
in any case in which the attorney general of a State has 
reason to believe that an interest of one or more of the residents 
of that State has been or is threatened or adversely affected 
by any person who violates a provision of this part, the attorney 
general of the State, as parens patriae, may bring a civil 
action on behalf of such residents of the State in a district 
court of the United States of appropriate jurisdiction— 
‘‘(A) to enjoin further such violation by the defendant; 
or 
‘‘(B) to obtain damages on behalf of such residents 
of the State, in an amount equal to the amount determined 
under paragraph (2). 
‘‘(2) STATUTORY DAMAGES.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (1)(B), 
the amount determined under this paragraph is the amount 
calculated by multiplying the number of violations by up 
to $100. For purposes of the preceding sentence, in the 
case of a continuing violation, the number of violations 
shall be determined consistent with the HIPAA privacy 
regulations (as defined in section 1180(b)(3)) for violations 
of subsection (a). 
‘‘(B) LIMITATION.—The total amount of damages 
imposed on the person for all violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $25,000. 
‘‘(C) REDUCTION OF DAMAGES.—In assessing damages 
under subparagraph (A), the court may consider the factors 
the Secretary may consider in determining the amount 
of a civil money penalty under subsection (a) under the 
HIPAA privacy regulations. 
‘‘(3) ATTORNEY FEES.—In the case of any successful action 
under paragraph (1), the court, in its discretion, may award 
the costs of the action and reasonable attorney fees to the 
State. 
‘‘(4) NOTICE TO SECRETARY.—The State shall serve prior 
written notice of any action under paragraph (1) upon the 
Secretary and provide the Secretary with a copy of its com-
plaint, except in any case in which such prior notice is not 
Records. 
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123 STAT. 275 
PUBLIC LAW 111–5—FEB. 17, 2009 
feasible, in which case the State shall serve such notice imme-
diately upon instituting such action. The Secretary shall have 
the right— 
‘‘(A) to intervene in the action; 
‘‘(B) upon so intervening, to be heard on all matters 
arising therein; and 
‘‘(C) to file petitions for appeal. 
‘‘(5) CONSTRUCTION.—For purposes of bringing any civil 
action under paragraph (1), nothing in this section shall be 
construed to prevent an attorney general of a State from exer-
cising the powers conferred on the attorney general by the 
laws of that State. 
‘‘(6) VENUE; SERVICE OF PROCESS.— 
‘‘(A) VENUE.—Any action brought under paragraph (1) 
may be brought in the district court of the United States 
that meets applicable requirements relating to venue under 
section 1391 of title 28, United States Code. 
‘‘(B) SERVICE OF PROCESS.—In an action brought under 
paragraph (1), process may be served in any district in 
which the defendant— 
‘‘(i) is an inhabitant; or 
‘‘(ii) maintains a physical place of business. 
‘‘(7) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION 
IS PENDING.—If the Secretary has instituted an action against 
a person under subsection (a) with respect to a specific violation 
of this part, no State attorney general may bring an action 
under this subsection against the person with respect to such 
violation during the pendency of that action. 
‘‘(8) APPLICATION OF CMP STATUTE OF LIMITATION.—A civil 
action may not be instituted with respect to a violation of 
this part unless an action to impose a civil money penalty 
may be instituted under subsection (a) with respect to such 
violation consistent with the second sentence of section 
1128A(c)(1).’’. 
(2) CONFORMING AMENDMENTS.—Subsection (b) of such sec-
tion, as amended by subsection (d)(3), is amended— 
(A) in paragraph (1), by striking ‘‘A penalty may not 
be imposed under subsection (a)’’ and inserting ‘‘No penalty 
may be imposed under subsection (a) and no damages 
obtained under subsection (d)’’; 
(B) in paragraph (2)(A)— 
(i) after ‘‘subsection (a)(1)(C),’’, by striking ‘‘a pen-
alty may not be imposed under subsection (a)’’ and 
inserting ‘‘no penalty may be imposed under subsection 
(a) and no damages obtained under subsection (d)’’; 
and 
(ii) in clause (ii), by inserting ‘‘or damages’’ after 
‘‘the penalty’’; 
(C) in paragraph (2)(B)(i), by striking ‘‘The period’’ 
and inserting ‘‘With respect to the imposition of a penalty 
by the Secretary under subsection (a), the period’’; and 
(D) in paragraph (3), by inserting ‘‘and any damages 
under subsection (d)’’ after ‘‘any penalty under subsection 
(a)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to violations occurring after the date of 
the enactment of this Act. 
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123 STAT. 276 
PUBLIC LAW 111–5—FEB. 17, 2009 
(f) ALLOWING CONTINUED USE OF CORRECTIVE ACTION.—Such 
section is further amended by adding at the end the following 
new subsection: 
‘‘(e) ALLOWING CONTINUED USE
OF CORRECTIVE ACTION.— 
Nothing in this section shall be construed as preventing the Office 
for Civil Rights of the Department of Health and Human Services 
from continuing, in its discretion, to use corrective action without 
a penalty in cases where the person did not know (and by exercising 
reasonable diligence would not have known) of the violation 
involved.’’. 
SEC. 13411. AUDITS. 
The Secretary shall provide for periodic audits to ensure that 
covered entities and business associates that are subject to the 
requirements of this subtitle and subparts C and E of part 164 
of title 45, Code of Federal Regulations, as such provisions are 
in effect as of the date of enactment of this Act, comply with 
such requirements. 
PART 2—RELATIONSHIP TO OTHER LAWS; 
REGULATORY 
REFERENCES; 
EFFECTIVE 
DATE; REPORTS 
SEC. 13421. RELATIONSHIP TO OTHER LAWS. 
(a) APPLICATION OF HIPAA STATE PREEMPTION.—Section 1178 
of the Social Security Act (42 U.S.C. 1320d–7) shall apply to a 
provision or requirement under this subtitle in the same manner 
that such section applies to a provision or requirement under part 
C of title XI of such Act or a standard or implementation specifica-
tion adopted or established under sections 1172 through 1174 of 
such Act. 
(b) HEALTH
INSURANCE
PORTABILITY
AND
ACCOUNTABILITY 
ACT.—The standards governing the privacy and security of individ-
ually identifiable health information promulgated by the Secretary 
under sections 262(a) and 264 of the Health Insurance Portability 
and Accountability Act of 1996 shall remain in effect to the extent 
that they are consistent with this subtitle. The Secretary shall 
by rule amend such Federal regulations as required to make such 
regulations consistent with this subtitle. 
(c) CONSTRUCTION.—Nothing in this subtitle shall constitute 
a waiver of any privilege otherwise applicable to an individual 
with respect to the protected health information of such individual. 
SEC. 13422. REGULATORY REFERENCES. 
Each reference in this subtitle to a provision of the Code of 
Federal Regulations refers to such provision as in effect on the 
date of the enactment of this title (or to the most recent update 
of such provision). 
SEC. 13423. EFFECTIVE DATE. 
Except as otherwise specifically provided, the provisions of part 
I shall take effect on the date that is 12 months after the date 
of the enactment of this title. 
SEC. 13424. STUDIES, REPORTS, GUIDANCE. 
(a) REPORT ON COMPLIANCE.— 
42 USC 17954. 
42 USC 17953. 
42 USC 17952. 
42 USC 17951. 
42 USC 17940. 
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123 STAT. 277 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN GENERAL.—For the first year beginning after the 
date of the enactment of this Act and annually thereafter, 
the Secretary shall prepare and submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and 
the Committee on Ways and Means and the Committee on 
Energy and Commerce of the House of Representatives a report 
concerning complaints of alleged violations of law, including 
the provisions of this subtitle as well as the provisions of 
subparts C and E of part 164 of title 45, Code of Federal 
Regulations, (as such provisions are in effect as of the date 
of enactment of this Act) relating to privacy and security of 
health information that are received by the Secretary during 
the year for which the report is being prepared. Each such 
report shall include, with respect to such complaints received 
during the year— 
(A) the number of such complaints; 
(B) the number of such complaints resolved informally, 
a summary of the types of such complaints so resolved, 
and the number of covered entities that received technical 
assistance from the Secretary during such year in order 
to achieve compliance with such provisions and the types 
of such technical assistance provided; 
(C) the number of such complaints that have resulted 
in the imposition of civil monetary penalties or have been 
resolved through monetary settlements, including the 
nature of the complaints involved and the amount paid 
in each penalty or settlement; 
(D) the number of compliance reviews conducted and 
the outcome of each such review; 
(E) the number of subpoenas or inquiries issued; 
(F) the Secretary’s plan for improving compliance with 
and enforcement of such provisions for the following year; 
and 
(G) the number of audits performed and a summary 
of audit findings pursuant to section 13411. 
(2) AVAILABILITY TO PUBLIC.—Each report under paragraph 
(1) shall be made available to the public on the Internet website 
of the Department of Health and Human Services. 
(b) STUDY AND REPORT ON APPLICATION OF PRIVACY AND SECU-
RITY REQUIREMENTS TO NON-HIPAA COVERED ENTITIES.— 
(1) STUDY.—Not later than one year after the date of the 
enactment of this title, the Secretary, in consultation with 
the Federal Trade Commission, shall conduct a study, and 
submit a report under paragraph (2), on privacy and security 
requirements for entities that are not covered entities or busi-
ness associates as of the date of the enactment of this title, 
including— 
(A) requirements relating to security, privacy, and 
notification in the case of a breach of security or privacy 
(including the applicability of an exemption to notification 
in the case of individually identifiable health information 
that has been rendered unusable, unreadable, or indeci-
pherable through technologies or methodologies recognized 
by appropriate professional organization or standard set-
ting bodies to provide effective security for the information) 
that should be applied to— 
(i) vendors of personal health records; 
Web posting. 
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123 STAT. 278 
PUBLIC LAW 111–5—FEB. 17, 2009 
(ii) entities that offer products or services through 
the website of a vendor of personal health records; 
(iii) entities that are not covered entities and that 
offer products or services through the websites of cov-
ered entities that offer individuals personal health 
records; 
(iv) entities that are not covered entities and that 
access information in a personal health record or send 
information to a personal health record; and 
(v) third party service providers used by a vendor 
or entity described in clause (i), (ii), (iii), or (iv) to 
assist in providing personal health record products or 
services; 
(B) a determination of which Federal government 
agency is best equipped to enforce such requirements rec-
ommended to be applied to such vendors, entities, and 
service providers under subparagraph (A); and 
(C) a timeframe for implementing regulations based 
on such findings. 
(2) REPORT.—The Secretary shall submit to the Committee 
on Finance, the Committee on Health, Education, Labor, and 
Pensions, and the Committee on Commerce of the Senate and 
the Committee on Ways and Means and the Committee on 
Energy and Commerce of the House of Representatives a report 
on the findings of the study under paragraph (1) and shall 
include in such report recommendations on the privacy and 
security requirements described in such paragraph. 
(c) GUIDANCE ON IMPLEMENTATION SPECIFICATION TO DE-IDEN-
TIFY PROTECTED HEALTH INFORMATION.—Not later than 12 months 
after the date of the enactment of this title, the Secretary shall, 
in consultation with stakeholders, issue guidance on how best to 
implement the requirements for the de-identification of protected 
health information under section 164.514(b) of title 45, Code of 
Federal Regulations. 
(d) GAO REPORT ON TREATMENT DISCLOSURES.—Not later than 
one year after the date of the enactment of this title, the Comptroller 
General of the United States shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the 
Committee on Ways and Means and the Committee on Energy 
and Commerce of the House of Representatives a report on the 
best practices related to the disclosure among health care providers 
of protected health information of an individual for purposes of 
treatment of such individual. Such report shall include an examina-
tion of the best practices implemented by States and by other 
entities, such as health information exchanges and regional health 
information organizations, an examination of the extent to which 
such best practices are successful with respect to the quality of 
the resulting health care provided to the individual and with respect 
to the ability of the health care provider to manage such best 
practices, and an examination of the use of electronic informed 
consent for disclosing protected health information for treatment, 
payment, and health care operations. 
(e) REPORT REQUIRED.—Not later than 5 years after the date 
of enactment of this section, the Government Accountability Office 
shall submit to Congress and the Secretary of Health and Human 
Services a report on the impact of any of the provisions of this 
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123 STAT. 279 
PUBLIC LAW 111–5—FEB. 17, 2009 
Act on health insurance premiums, overall health care costs, adop-
tion of electronic health records by providers, and reduction in 
medical errors and other quality improvements. 
(f) STUDY.—The Secretary shall study the definition of ‘‘psycho-
therapy notes’’ in section 164.501 of title 45, Code of Federal Regula-
tions, with regard to including test data that is related to direct 
responses, scores, items, forms, protocols, manuals, or other mate-
rials that are part of a mental health evaluation, as determined 
by the mental health professional providing treatment or evaluation 
in such definitions and may, based on such study, issue regulations 
to revise such definition. 
TITLE XIV—STATE FISCAL 
STABILIZATION FUND 
DEPARTMENT OF EDUCATION 
STATE FISCAL STABILIZATION FUND 
For necessary expenses for a State Fiscal Stabilization Fund, 
$53,600,000,000, which shall be administered by the Department 
of Education. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 14001. ALLOCATIONS. 
(a) OUTLYING AREAS.—From the amount appropriated to carry 
out this title, the Secretary of Education shall first allocate up 
to one-half of 1 percent to the outlying areas on the basis of 
their respective needs, as determined by the Secretary, in consulta-
tion with the Secretary of the Interior, for activities consistent 
with this title under such terms and conditions as the Secretary 
may determine. 
(b) ADMINISTRATION AND OVERSIGHT.—The Secretary may, in 
addition, reserve up to $14,000,000 for administration and oversight 
of this title, including for program evaluation. 
(c) RESERVATION FOR ADDITIONAL PROGRAMS.—After reserving 
funds under subsections (a) and (b), the Secretary shall reserve 
$5,000,000,000 for grants under sections 14006 and 14007. 
(d) STATE ALLOCATIONS.—After carrying out subsections (a), 
(b), and (c), the Secretary shall allocate the remaining funds made 
available to carry out this title to the States as follows: 
(1) 61 percent on the basis of their relative population 
of individuals aged 5 through 24. 
(2) 39 percent on the basis of their relative total population. 
(e) STATE GRANTS.—From funds allocated under subsection (d), 
the Secretary shall make grants to the Governor of each State. 
(f) REALLOCATION.—The Governor shall return to the Secretary 
any funds received under subsection (e) that the Governor does 
not award as subgrants or otherwise commit within two years 
of receiving such funds, and the Secretary shall reallocate such 
funds to the remaining States in accordance with subsection (d). 
SEC. 14002. STATE USES OF FUNDS. 
(a) EDUCATION FUND.— 
Grants. 
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123 STAT. 280 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN GENERAL.—For each fiscal year, the Governor shall 
use 81.8 percent of the State’s allocation under section 14001(d) 
for the support of elementary, secondary, and postsecondary 
education and, as applicable, early childhood education pro-
grams and services. 
(2) RESTORING STATE SUPPORT FOR EDUCATION.— 
(A) IN
GENERAL.—The Governor shall first use the 
funds described in paragraph (1)— 
(i) to provide the amount of funds, through the 
State’s primary elementary and secondary funding for-
mulae, that is needed— 
(I) to restore, in each of fiscal years 2009, 
2010, and 2011, the level of State support provided 
through such formulae to the greater of the fiscal 
year 2008 or fiscal year 2009 level; and 
(II) where applicable, to allow existing State 
formulae increases to support elementary and sec-
ondary education for fiscal years 2010 and 2011 
to be implemented and allow funding for phasing 
in State equity and adequacy adjustments, if such 
increases were enacted pursuant to State law prior 
to October 1, 2008. 
(ii) to provide, in each of fiscal years 2009, 2010, 
and 2011, the amount of funds to public institutions 
of higher education in the State that is needed to 
restore State support for such institutions (excluding 
tuition and fees paid by students) to the greater of 
the fiscal year 2008 or fiscal year 2009 level. 
(B) SHORTFALL.—If the Governor determines that the 
amount of funds available under paragraph (1) is insuffi-
cient to support, in each of fiscal years 2009, 2010, and 
2011, public elementary, secondary, and higher education 
at the levels described in clauses (i) and (ii) of subparagraph 
(A), the Governor shall allocate those funds between those 
clauses in proportion to the relative shortfall in State sup-
port for the education sectors described in those clauses. 
(C) FISCAL YEAR.—For purposes of this paragraph, the 
term ‘‘fiscal year’’ shall have the meaning given such term 
under State law. 
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPERATED BY 
LOCAL EDUCATIONAL AGENCIES.—After carrying out paragraph 
(2), the Governor shall use any funds remaining under para-
graph (1) to provide local educational agencies in the State 
with subgrants based on their relative shares of funding under 
part A of title I of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year 
for which data are available. 
(b) OTHER GOVERNMENT SERVICES.— 
(1) IN GENERAL.—The Governor shall use 18.2 percent of 
the State’s allocation under section 14001 for public safety 
and other government services, which may include assistance 
for elementary and secondary education and public institutions 
of higher education, and for modernization, renovation, or 
repair of public school facilities and institutions of higher edu-
cation facilities, including modernization, renovation, and 
repairs that are consistent with a recognized green building 
rating system. 
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123 STAT. 281 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) AVAILABILITY
TO
ALL
INSTITUTIONS
OF
HIGHER
EDU-
CATION.—A Governor shall not consider the type or mission 
of an institution of higher education, and shall consider any 
institution for funding for modernization, renovation, and 
repairs within the State that— 
(A) qualifies as an institution of higher education, as 
defined in subsection 14013(3); and 
(B) continues to be eligible to participate in the pro-
grams under title IV of the Higher Education Act of 1965. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall allow 
a local educational agency to engage in school modernization, ren-
ovation, or repair that is inconsistent with State law. 
SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES. 
(a) IN GENERAL.—A local educational agency that receives funds 
under this title may use the funds for any activity authorized 
by the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6301 et seq.) (‘‘ESEA’’), the Individuals with Disabilities Education 
Act (20 U.S.C. 1400 et seq.) (‘‘IDEA’’), the Adult and Family Literacy 
Act (20 U.S.C. 1400 et seq.), or the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (‘‘the 
Perkins Act’’) or for modernization, renovation, or repair of public 
school facilities, including modernization, renovation, and repairs 
that are consistent with a recognized green building rating system. 
(b) PROHIBITION.—A local educational agency may not use funds 
received under this title for— 
(1) payment of maintenance costs; 
(2) stadiums or other facilities primarily used for athletic 
contests or exhibitions or other events for which admission 
is charged to the general public; 
(3) purchase or upgrade of vehicles; or 
(4) improvement of stand-alone facilities whose purpose 
is not the education of children, including central office adminis-
tration or operations or logistical support facilities. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall allow 
a local educational agency to engage in school modernization, ren-
ovation, or repair that is inconsistent with State law. 
SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION. 
(a) IN GENERAL.—A public institution of higher education that 
receives funds under this title shall use the funds for education 
and general expenditures, and in such a way as to mitigate the 
need to raise tuition and fees for in-State students, or for moderniza-
tion, renovation, or repair of institution of higher education facilities 
that are primarily used for instruction, research, or student housing, 
including modernization, renovation, and repairs that are consistent 
with a recognized green building rating system. 
(b) PROHIBITION.—An institution of higher education may not 
use funds received under this title to increase its endowment. 
(c) ADDITIONAL PROHIBITION.—No funds awarded under this 
title may be used for— 
(1) the maintenance of systems, equipment, or facilities; 
(2) modernization, renovation, or repair of stadiums or 
other facilities primarily used for athletic contests or exhibitions 
or other events for which admission is charged to the general 
public; or 
(3) modernization, renovation, or repair of facilities— 
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123 STAT. 282 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) used for sectarian instruction or religious worship; 
or 
(B) in which a substantial portion of the functions 
of the facilities are subsumed in a religious mission. 
SEC. 14005. STATE APPLICATIONS. 
(a) IN GENERAL.—The Governor of a State desiring to receive 
an allocation under section 14001 shall submit an application at 
such time, in such manner, and containing such information as 
the Secretary may reasonably require. 
(b) APPLICATION.—In such application, the Governor shall— 
(1) include the assurances described in subsection (d); 
(2) provide baseline data that demonstrates the State’s 
current status in each of the areas described in such assurances; 
and 
(3) describe how the State intends to use its allocation, 
including whether the State will use such allocation to meet 
maintenance of effort requirements under the ESEA and IDEA 
and, in such cases, what amount will be used to meet such 
requirements. 
(c) INCENTIVE GRANT APPLICATION.—The Governor of a State 
seeking a grant under section 14006 shall— 
(1) submit an application for consideration; 
(2) describe the status of the State’s progress in each of 
the areas described in subsection (d), and the strategies the 
State is employing to help ensure that students in the sub-
groups described in section 1111(b)(2)(C)(v)(II) of the ESEA 
(20 U.S.C. 6311(b)(2)(C)(v)(II)) who have not met the State’s 
proficiency targets continue making progress toward meeting 
the State’s student academic achievement standards; 
(3) describe the achievement and graduation rates (as 
described in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C. 
6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of title 
34, Code of Federal Regulations) of public elementary and 
secondary school students in the State, and the strategies the 
State is employing to help ensure that all subgroups of students 
identified in section 1111(b)(2) of the ESEA (20 U.S.C. 
6311(b)(2)) in the State continue making progress toward 
meeting the State’s student academic achievement standards; 
(4) describe how the State would use its grant funding 
to improve student academic achievement in the State, 
including how it will allocate the funds to give priority to 
high-need local educational agencies; and 
(5) include a plan for evaluating the State’s progress in 
closing achievement gaps. 
(d) ASSURANCES.—An application under subsection (b) shall 
include the following assurances: 
(1) MAINTENANCE OF EFFORT.— 
(A) ELEMENTARY
AND
SECONDARY
EDUCATION.—The 
State will, in each of fiscal years 2009, 2010, and 2011, 
maintain State support for elementary and secondary edu-
cation at least at the level of such support in fiscal year 
2006. 
(B) HIGHER EDUCATION.—The State will, in each of 
fiscal years 2009, 2010, and 2011, maintain State support 
for public institutions of higher education (not including 
support for capital projects or for research and development 
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123 STAT. 283 
PUBLIC LAW 111–5—FEB. 17, 2009 
or tuition and fees paid by students) at least at the level 
of such support in fiscal year 2006. 
(2) ACHIEVING
EQUITY
IN
TEACHER
DISTRIBUTION.—The 
State will take actions to improve teacher effectiveness and 
comply with section 1111(b)(8)(C) of the ESEA (20 U.S.C. 
6311(b)(8)(C)) in order to address inequities in the distribution 
of highly qualified teachers between high- and low-poverty 
schools, and to ensure that low-income and minority children 
are not taught at higher rates than other children by inexperi-
enced, unqualified, or out-of-field teachers. 
(3) IMPROVING COLLECTION AND USE OF DATA.—The State 
will establish a longitudinal data system that includes the 
elements described in section 6401(e)(2)(D) of the America 
COMPETES Act (20 U.S.C. 9871). 
(4) STANDARDS AND ASSESSMENTS.—The State— 
(A) will enhance the quality of the academic assess-
ments it administers pursuant to section 1111(b)(3) of the 
ESEA (20 U.S.C. 6311(b)(3)) through activities such as 
those described in section 6112(a) of such Act (20 U.S.C. 
7301a(a)); 
(B) will comply with the requirements of paragraphs 
(3)(C)(ix) and (6) of section 1111(b) of the ESEA (20 U.S.C. 
6311(b)) and section 612(a)(16) of the IDEA (20 U.S.C. 
1412(a)(16)) related to the inclusion of children with disabil-
ities and limited English proficient students in State 
assessments, the development of valid and reliable assess-
ments for those students, and the provision of accommoda-
tions that enable their participation in State assessments; 
and 
(C) will take steps to improve State academic content 
standards and student academic achievement standards 
consistent with section 6401(e)(1)(9)(A)(ii) of the America 
COMPETES Act. 
(5) SUPPORTING
STRUGGLING
SCHOOLS.—The State will 
ensure 
compliance 
with 
the 
requirements 
of 
section 
1116(a)(7)(C)(iv) and section 1116(a)(8)(B) of the ESEA with 
respect to schools identified under such sections. 
SEC. 14006. STATE INCENTIVE GRANTS. 
(a) IN GENERAL.— 
(1) RESERVATION.—From the total amount reserved under 
section 14001(c) that is not used for section 14007, the Secretary 
may reserve up to 1 percent for technical assistance to States 
to assist them in meeting the objectives of paragraphs (2), 
(3), (4), and (5) of section 14005(d). 
(2) REMAINDER.—Of the remaining funds, the Secretary 
shall, in fiscal year 2010, make grants to States that have 
made significant progress in meeting the objectives of para-
graphs (2), (3), (4), and (5) of section 14005(d). 
(b) BASIS FOR GRANTS.—The Secretary shall determine which 
States receive grants under this section, and the amount of those 
grants, on the basis of information provided in State applications 
under section 14005 and such other criteria as the Secretary deter-
mines appropriate, which may include a State’s need for assistance 
to help meet the objective of paragraphs (2), (3), (4), and (5) of 
section 14005(d). 
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123 STAT. 284 
PUBLIC LAW 111–5—FEB. 17, 2009 
(c) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.—Each State 
receiving a grant under this section shall use at least 50 percent 
of the grant to provide local educational agencies in the State 
with subgrants based on their relative shares of funding under 
part A of title I of the ESEA (20 U.S.C. 6311 et seq.) for the 
most recent year. 
SEC. 14007. INNOVATION FUND. 
(a) IN GENERAL.— 
(1) ELIGIBLE ENTITIES.—For the purposes of this section, 
the term ‘‘eligible entity’’ means— 
(A) a local educational agency; or 
(B) a partnership between a nonprofit organization 
and— 
(i) one or more local educational agencies; or 
(ii) a consortium of schools. 
(2) PROGRAM
ESTABLISHED.—From the total amount 
reserved under section 14001(c), the Secretary may reserve 
up to $650,000,000 to establish an Innovation Fund, which 
shall consist of academic achievement awards that recognize 
eligible entities that meet the requirements described in sub-
section (b). 
(3) BASIS FOR AWARDS.—The Secretary shall make awards 
to eligible entities that have made significant gains in closing 
the achievement gap as described in subsection (b)(1)— 
(A) to allow such eligible entities to expand their work 
and serve as models for best practices; 
(B) to allow such eligible entities to work in partnership 
with the private sector and the philanthropic community; 
and 
(C) to identify and document best practices that can 
be shared, and taken to scale based on demonstrated suc-
cess. 
(b) ELIGIBILITY.—To be eligible for such an award, an eligible 
entity shall— 
(1) have significantly closed the achievement gaps between 
groups of students described in section 1111(b)(2) of the ESEA 
(20 U.S.C. 6311(b)(2)); 
(2) have exceeded the State’s annual measurable objectives 
consistent with such section 1111(b)(2) for 2 or more consecutive 
years or have demonstrated success in significantly increasing 
student academic achievement for all groups of students 
described in such section through another measure, such as 
measures described in section 1111(c)(2) of the ESEA; 
(3) have made significant improvement in other areas, such 
as graduation rates or increased recruitment and placement 
of high-quality teachers and school leaders, as demonstrated 
with meaningful data; and 
(4) demonstrate that they have established partnerships 
with the private sector, which may include philanthropic 
organizations, and that the private sector will provide matching 
funds in order to help bring results to scale. 
(c) SPECIAL RULE.—In the case of an eligible entity that includes 
a nonprofit organization, the eligible entity shall be considered 
to have met the eligibility requirements of paragraphs (1), (2), 
(3) of subsection (b) if such nonprofit organization has a record 
of meeting such requirements. 
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123 STAT. 285 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 14008. STATE REPORTS. 
For each year of the program under this title, a State receiving 
funds under this title shall submit a report to the Secretary, at 
such time and in such manner as the Secretary may require, 
that describes— 
(1) the uses of funds provided under this title within the 
State; 
(2) how the State distributed the funds it received under 
this title; 
(3) the number of jobs that the Governor estimates were 
saved or created with funds the State received under this 
title; 
(4) tax increases that the Governor estimates were averted 
because of the availability of funds from this title; 
(5) the State’s progress in reducing inequities in the dis-
tribution of highly qualified teachers, in implementing a State 
longitudinal data system, and in developing and implementing 
valid and reliable assessments for limited English proficient 
students and children with disabilities; 
(6) the tuition and fee increases for in-State students 
imposed by public institutions of higher education in the State 
during the period of availability of funds under this title, and 
a description of any actions taken by the State to limit those 
increases; 
(7) the extent to which public institutions of higher edu-
cation maintained, increased, or decreased enrollment of in- 
State students, including students eligible for Pell Grants or 
other need-based financial assistance; and 
(8) a description of each modernization, renovation and 
repair project funded, which shall include the amounts awarded 
and project costs. 
SEC. 14009. EVALUATION. 
The Comptroller General of the United States shall conduct 
evaluations of the programs under sections 14006 and 14007 which 
shall include, but not be limited to, the criteria used for the awards 
made, the States selected for awards, award amounts, how each 
State used the award received, and the impact of this funding 
on the progress made toward closing achievement gaps. 
SEC. 14010. SECRETARY’S REPORT TO CONGRESS. 
The Secretary shall submit a report to the Committee on Edu-
cation and Labor of the House of Representatives, the Committee 
on Health, Education, Labor, and Pensions of the Senate, and 
the Committees on Appropriations of the House of Representatives 
and of the Senate, not less than 6 months following the submission 
of State reports, that evaluates the information provided in the 
State reports under section 14008 and the information required 
by section 14005(b)(3) including State-by-State information. 
SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE. 
No recipient of funds under this title shall use such funds 
to provide financial assistance to students to attend private 
elementary or secondary schools. 
SEC. 14012. FISCAL RELIEF. 
(a) IN GENERAL.—For the purpose of relieving fiscal burdens 
on States and local educational agencies that have experienced 
Waiver authority. 
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123 STAT. 286 
PUBLIC LAW 111–5—FEB. 17, 2009 
a precipitous decline in financial resources, the Secretary of Edu-
cation may waive or modify any requirement of this title relating 
to maintaining fiscal effort. 
(b) DURATION.—A waiver or modification under this section 
shall be for any of fiscal year 2009, fiscal year 2010, or fiscal 
year 2011, as determined by the Secretary. 
(c) CRITERIA.—The Secretary shall not grant a waiver or modi-
fication under this section unless the Secretary determines that 
the State or local educational agency receiving such waiver or 
modification will not provide for elementary and secondary edu-
cation, for the fiscal year under consideration, a smaller percentage 
of the total revenues available to the State or local educational 
agency than the amount provided for such purpose in the preceding 
fiscal year. 
(d) MAINTENANCE OF EFFORT.—Upon prior approval from the 
Secretary, a State or local educational agency that receives funds 
under this title may treat any portion of such funds that is used 
for elementary, secondary, or postsecondary education as non-Fed-
eral funds for the purpose of any requirement to maintain fiscal 
effort under any other program, including part C of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431 et seq.), adminis-
tered by the Secretary. 
(e) SUBSEQUENT LEVEL OF EFFORT.—Notwithstanding (d), the 
level of effort required by a State or local educational agency for 
the following fiscal year shall not be reduced. 
SEC. 14013. DEFINITIONS. 
Except as otherwise provided in this title, as used in this 
title— 
(1) the terms ‘‘elementary education’’ and ‘‘secondary edu-
cation’’ have the meaning given such terms under State law; 
(2) the term ‘‘high-need local educational agency’’ means 
a local educational agency— 
(A) that serves not fewer than 10,000 children from 
families with incomes below the poverty line; or 
(B) for which not less than 20 percent of the children 
served by the agency are from families with incomes below 
the poverty line; 
(3) the term ‘‘institution of higher education’’ has the 
meaning given such term in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001); 
(4) the term ‘‘Secretary’’ means the Secretary of Education; 
(5) the term ‘‘State’’ means each of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico; 
and 
(6) any other term used that is defined in section 9101 
of the ESEA (20 U.S.C. 7801) shall have the meaning given 
the term in such section. 
TITLE XV—ACCOUNTABILITY AND 
TRANSPARENCY 
SEC. 1501. DEFINITIONS. 
In this title: 
(1) AGENCY.—The term ‘‘agency’’ has the meaning given 
under section 551 of title 5, United States Code. 
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123 STAT. 287 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) BOARD.—The term ‘‘Board’’ means the Recovery 
Accountability and Transparency Board established in section 
1521. 
(3) CHAIRPERSON.—The term ‘‘Chairperson’’ means the 
Chairperson of the Board. 
(4) COVERED FUNDS.—The term ‘‘covered funds’’ means any 
funds that are expended or obligated from appropriations made 
under this Act. 
(5) PANEL.—The term ‘‘Panel’’ means the Recovery Inde-
pendent Advisory Panel established in section 1541. 
Subtitle A—Transparency and Oversight 
Requirements 
SEC. 1511. CERTIFICATIONS. 
With respect to covered funds made available to State or local 
governments for infrastructure investments, the Governor, mayor, 
or other chief executive, as appropriate, shall certify that the infra-
structure investment has received the full review and vetting 
required by law and that the chief executive accepts responsibility 
that the infrastructure investment is an appropriate use of taxpayer 
dollars. Such certification shall include a description of the invest-
ment, the estimated total cost, and the amount of covered funds 
to be used, and shall be posted on a website and linked to the 
website established by section 1526. A State or local agency may 
not receive infrastructure investment funding from funds made 
available in this Act unless this certification is made and posted. 
SEC. 1512. REPORTS ON USE OF FUNDS. 
(a) SHORT TITLE.—This section may be cited as the ‘‘Jobs 
Accountability Act’’. 
(b) DEFINITIONS.—In this section: 
(1) RECIPIENT.—The term ‘‘recipient’’— 
(A) means any entity that receives recovery funds 
directly from the Federal Government (including recovery 
funds received through grant, loan, or contract) other than 
an individual; and 
(B) includes a State that receives recovery funds. 
(2) RECOVERY FUNDS.—The term ‘‘recovery funds’’ means 
any funds that are made available from appropriations made 
under this Act. 
(c) RECIPIENT REPORTS.—Not later than 10 days after the end 
of each calendar quarter, each recipient that received recovery 
funds from a Federal agency shall submit a report to that agency 
that contains— 
(1) the total amount of recovery funds received from that 
agency; 
(2) the amount of recovery funds received that were 
expended or obligated to projects or activities; and 
(3) a detailed list of all projects or activities for which 
recovery funds were expended or obligated, including— 
(A) the name of the project or activity; 
(B) a description of the project or activity; 
(C) an evaluation of the completion status of the project 
or activity; 
Jobs 
Accountability 
Act. 
Web posting. 
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123 STAT. 288 
PUBLIC LAW 111–5—FEB. 17, 2009 
(D) an estimate of the number of jobs created and 
the number of jobs retained by the project or activity; 
and 
(E) for infrastructure investments made by State and 
local governments, the purpose, total cost, and rationale 
of the agency for funding the infrastructure investment 
with funds made available under this Act, and name of 
the person to contact at the agency if there are concerns 
with the infrastructure investment. 
(4) Detailed information on any subcontracts or subgrants 
awarded by the recipient to include the data elements required 
to comply with the Federal Funding Accountability and Trans-
parency Act of 2006 (Public Law 109–282), allowing aggregate 
reporting on awards below $25,000 or to individuals, as pre-
scribed by the Director of the Office of Management and Budget. 
(d) AGENCY REPORTS.—Not later than 30 days after the end 
of each calendar quarter, each agency that made recovery funds 
available to any recipient shall make the information in reports 
submitted under subsection (c) publicly available by posting the 
information on a website. 
(e) OTHER REPORTS.—The Congressional Budget Office and the 
Government Accountability Office shall comment on the information 
described in subsection (c)(3)(D) for any reports submitted under 
subsection (c). Such comments shall be due within 45 days after 
such reports are submitted. 
(f) COMPLIANCE.—Within 180 days of enactment, as a condition 
of receipt of funds under this Act, Federal agencies shall require 
any recipient of such funds to provide the information required 
under subsection (c). 
(g) GUIDANCE.—Federal agencies, in coordination with the 
Director of the Office of Management and Budget, shall provide 
for user-friendly means for recipients of covered funds to meet 
the requirements of this section. 
(h) REGISTRATION.—Funding recipients required to report 
information per subsection (c)(4) must register with the Central 
Contractor Registration database or complete other registration 
requirements as determined by the Director of the Office of Manage-
ment and Budget. 
SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS. 
(a) IN GENERAL.—In consultation with the Director of the Office 
of Management and Budget and the Secretary of the Treasury, 
the Chairperson of the Council of Economic Advisers shall submit 
quarterly reports to the Committees on Appropriations of the Senate 
and House of Representatives that detail the impact of programs 
funded through covered funds on employment, estimated economic 
growth, and other key economic indicators. 
(b) SUBMISSION OF REPORTS.— 
(1) FIRST REPORT.—The first report submitted under sub-
section (a) shall be submitted not later than 45 days after 
the end of the first full quarter following the date of enactment 
of this Act. 
(2) LAST REPORT.—The last report required to be submitted 
under subsection (a) shall apply to the quarter in which the 
Board terminates under section 1530. 
Applicability. 
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123 STAT. 289 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1514. INSPECTOR GENERAL REVIEWS. 
(a) REVIEWS.—Any inspector general of a Federal department 
or executive agency shall review, as appropriate, any concerns 
raised by the public about specific investments using funds made 
available in this Act. Any findings of such reviews not related 
to an ongoing criminal proceeding shall be relayed immediately 
to the head of the department or agency concerned. In addition, 
the findings of such reviews, along with any audits conducted 
by any inspector general of funds made available in this Act, shall 
be posted on the inspector general’s website and linked to the 
website established by section 1526, except that portions of reports 
may be redacted to the extent the portions would disclose informa-
tion that is protected from public disclosure under sections 552 
and 552a of title 5, United States Code. 
SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN 
RECORDS AND EMPLOYEES. 
(a) ACCESS.—With respect to each contract or grant awarded 
using covered funds, any representative of an appropriate inspector 
general appointed under section 3 or 8G of the Inspector General 
Act of 1978 (5 U.S.C. App.), is authorized— 
(1) to examine any records of the contractor or grantee, 
any of its subcontractors or subgrantees, or any State or local 
agency administering such contract, that pertain to, and involve 
transactions relating to, the contract, subcontract, grant, or 
subgrant; and 
(2) to interview any officer or employee of the contractor, 
grantee, subgrantee, or agency regarding such transactions. 
(b) RELATIONSHIP TO EXISTING AUTHORITY.—Nothing in this 
section shall be interpreted to limit or restrict in any way any 
existing authority of an inspector general. 
Subtitle B—Recovery Accountability and 
Transparency Board 
SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND 
TRANSPARENCY BOARD. 
There is established the Recovery Accountability and Trans-
parency Board to coordinate and conduct oversight of covered funds 
to prevent fraud, waste, and abuse. 
SEC. 1522. COMPOSITION OF BOARD. 
(a) CHAIRPERSON.— 
(1) DESIGNATION OR APPOINTMENT.—The President shall— 
(A) designate the Deputy Director for Management 
of the Office of Management and Budget to serve as Chair-
person of the Board; 
(B) designate another Federal officer who was 
appointed by the President to a position that required 
the advice and consent of the Senate, to serve as Chair-
person of the Board; or 
(C) appoint an individual as the Chairperson of the 
Board, by and with the advice and consent of the Senate. 
(2) COMPENSATION.— 
(A) DESIGNATION OF FEDERAL OFFICER.—If the Presi-
dent designates a Federal officer under paragraph (1)(A) 
President. 
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123 STAT. 290 
PUBLIC LAW 111–5—FEB. 17, 2009 
or (B) to serve as Chairperson, that Federal officer may 
not receive additional compensation for services performed 
as Chairperson. 
(B) APPOINTMENT
OF
NON-FEDERAL
OFFICER.—If the 
President appoints an individual as Chairperson under 
paragraph (1)(C), that individual shall be compensated at 
the rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code. 
(b) MEMBERS.—The members of the Board shall include— 
(1) the Inspectors General of the Departments of Agri-
culture, Commerce, Education, Energy, Health and Human 
Services, Homeland Security, Justice, Transportation, Treasury, 
and the Treasury Inspector General for Tax Administration; 
and 
(2) any other Inspector General as designated by the Presi-
dent from any agency that expends or obligates covered funds. 
SEC. 1523. FUNCTIONS OF THE BOARD. 
(a) FUNCTIONS.— 
(1) IN GENERAL.—The Board shall coordinate and conduct 
oversight of covered funds in order to prevent fraud, waste, 
and abuse. 
(2) SPECIFIC FUNCTIONS.—The functions of the Board shall 
include— 
(A) reviewing whether the reporting of contracts and 
grants using covered funds meets applicable standards and 
specifies the purpose of the contract or grant and measures 
of performance; 
(B) 
reviewing 
whether 
competition 
requirements 
applicable to contracts and grants using covered funds 
have been satisfied; 
(C) auditing or reviewing covered funds to determine 
whether wasteful spending, poor contract or grant manage-
ment, or other abuses are occurring and referring matters 
it considers appropriate for investigation to the inspector 
general for the agency that disbursed the covered funds; 
(D) reviewing whether there are sufficient qualified 
acquisition and grant personnel overseeing covered funds; 
(E) reviewing whether personnel whose duties involve 
acquisitions or grants made with covered funds receive 
adequate training; and 
(F) reviewing whether there are appropriate mecha-
nisms for interagency collaboration relating to covered 
funds, including coordinating and collaborating to the 
extent practicable with the Inspectors General Council on 
Integrity and Efficiency established by the Inspector Gen-
eral Reform Act of 2008 (Public Law 110–409). 
(b) REPORTS.— 
(1) FLASH AND OTHER REPORTS.—The Board shall submit 
to the President and Congress, including the Committees on 
Appropriations of the Senate and House of Representatives, 
reports, to be known as ‘‘flash reports’’, on potential manage-
ment and funding problems that require immediate attention. 
The Board also shall submit to Congress such other reports 
as the Board considers appropriate on the use and benefits 
of funds made available in this Act. 
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123 STAT. 291 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) QUARTERLY REPORTS.—The Board shall submit quar-
terly reports to the President and Congress, including the 
Committees on Appropriations of the Senate and House of 
Representatives, summarizing the findings of the Board and 
the findings of inspectors general of agencies. The Board may 
submit additional reports as appropriate. 
(3) ANNUAL
REPORTS.—The Board shall submit annual 
reports to the President and Congress, including the Commit-
tees on Appropriations of the Senate and House of Representa-
tives, consolidating applicable quarterly reports on the use of 
covered funds. 
(4) PUBLIC AVAILABILITY.— 
(A) IN GENERAL.—All reports submitted under this sub-
section shall be made publicly available and posted on 
the website established by section 1526. 
(B) REDACTIONS.—Any portion of a report submitted 
under this subsection may be redacted when made publicly 
available, if that portion would disclose information that 
is not subject to disclosure under sections 552 and 552a 
of title 5, United States Code. 
(c) RECOMMENDATIONS.— 
(1) IN GENERAL.—The Board shall make recommendations 
to agencies on measures to prevent fraud, waste, and abuse 
relating to covered funds. 
(2) RESPONSIVE REPORTS.—Not later than 30 days after 
receipt of a recommendation under paragraph (1), an agency 
shall submit a report to the President, the congressional 
committees of jurisdiction, including the Committees on Appro-
priations of the Senate and House of Representatives, and 
the Board on— 
(A) whether the agency agrees or disagrees with the 
recommendations; and 
(B) any actions the agency will take to implement 
the recommendations. 
SEC. 1524. POWERS OF THE BOARD. 
(a) IN GENERAL.—The Board shall conduct audits and reviews 
of spending of covered funds and coordinate on such activities 
with the inspectors general of the relevant agency to avoid duplica-
tion and overlap of work. 
(b) AUDITS AND REVIEWS.—The Board may— 
(1) conduct its own independent audits and reviews relating 
to covered funds; and 
(2) collaborate on audits and reviews relating to covered 
funds with any inspector general of an agency. 
(c) AUTHORITIES.— 
(1) AUDITS
AND
REVIEWS.—In conducting audits and 
reviews, the Board shall have the authorities provided under 
section 6 of the Inspector General Act of 1978 (5 U.S.C. App.). 
Additionally, the Board may issue subpoenas to compel the 
testimony of persons who are not Federal officers or employees 
and may enforce such subpoenas in the same manner as pro-
vided for inspector general subpoenas under section 6 of the 
Inspector General Act of 1978 (5 U.S.C. App.). 
(2) STANDARDS AND GUIDELINES.—The Board shall carry 
out the powers under subsections (a) and (b) in accordance 
Audits. 
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123 STAT. 292 
PUBLIC LAW 111–5—FEB. 17, 2009 
with section 4(b)(1) of the Inspector General Act of 1978 (5 
U.S.C. App.). 
(d) PUBLIC HEARINGS.—The Board may hold public hearings 
and Board personnel may conduct necessary inquiries. The head 
of each agency shall make all officers and employees of that agency 
available to provide testimony to the Board and Board personnel. 
The Board may issue subpoenas to compel the testimony of persons 
who are not Federal officers or employees at such public hearings. 
Any such subpoenas may be enforced in the same manner as 
provided for inspector general subpoenas under section 6 of the 
Inspector General Act of 1978 (5 U.S.C. App.). 
(e) CONTRACTS.—The Board may enter into contracts to enable 
the Board to discharge its duties under this subtitle, including 
contracts and other arrangements for audits, studies, analyses, 
and other services with public agencies and with private persons, 
and make such payments as may be necessary to carry out the 
duties of the Board. 
(f) TRANSFER OF FUNDS.—The Board may transfer funds appro-
priated to the Board for expenses to support administrative support 
services and audits, reviews, or other activities related to oversight 
by the Board of covered funds to any office of inspector general, 
the Office of Management and Budget, the General Services 
Administration, and the Panel. 
SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES. 
(a) EMPLOYMENT AND PERSONNEL AUTHORITIES.— 
(1) IN GENERAL.— 
(A) AUTHORITIES.—Subject to paragraph (2), the Board 
may exercise the authorities of subsections (b) through 
(i) of section 3161 of title 5, United States Code (without 
regard to subsection (a) of that section). 
(B) APPLICATION.—For purposes of exercising the 
authorities described under subparagraph (A), the term 
‘‘Chairperson of the Board’’ shall be substituted for the 
term ‘‘head of a temporary organization’’. 
(C) CONSULTATION.—In exercising the authorities 
described under subparagraph (A), the Chairperson shall 
consult with members of the Board. 
(2) EMPLOYMENT AUTHORITIES.—In exercising the employ-
ment authorities under subsection (b) of section 3161 of title 
5, United States Code, as provided under paragraph (1) of 
this subsection— 
(A) paragraph (2) of subsection (b) of section 3161 
of that title (relating to periods of appointments) shall 
not apply; and 
(B) no period of appointment may exceed the date 
on which the Board terminates under section 1530. 
(b) INFORMATION AND ASSISTANCE.— 
(1) IN GENERAL.—Upon request of the Board for information 
or assistance from any agency or other entity of the Federal 
Government, the head of such entity shall, insofar as is prac-
ticable and not in contravention of any existing law, furnish 
such information or assistance to the Board, or an authorized 
designee. 
(2) REPORT OF REFUSALS.—Whenever information or assist-
ance requested by the Board is, in the judgment of the Board, 
unreasonably refused or not provided, the Board shall report 
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123 STAT. 293 
PUBLIC LAW 111–5—FEB. 17, 2009 
the circumstances to the congressional committees of jurisdic-
tion, including the Committees on Appropriations of the Senate 
and House of Representatives, without delay. 
(c) ADMINISTRATIVE SUPPORT.—The General Services Adminis-
tration shall provide the Board with administrative support serv-
ices, including the provision of office space and facilities. 
SEC. 1526. BOARD WEBSITE. 
(a) ESTABLISHMENT.—The Board shall establish and maintain, 
no later than 30 days after enactment of this Act, a user-friendly, 
public-facing website to foster greater accountability and trans-
parency in the use of covered funds. 
(b) PURPOSE.—The website established and maintained under 
subsection (a) shall be a portal or gateway to key information 
relating to this Act and provide connections to other Government 
websites with related information. 
(c) CONTENT AND FUNCTION.—In establishing the website estab-
lished and maintained under subsection (a), the Board shall ensure 
the following: 
(1) The website shall provide materials explaining what 
this Act means for citizens. The materials shall be easy to 
understand and regularly updated. 
(2) The website shall provide accountability information, 
including findings from audits, inspectors general, and the 
Government Accountability Office. 
(3) The website shall provide data on relevant economic, 
financial, grant, and contract information in user-friendly visual 
presentations to enhance public awareness of the use of covered 
funds. 
(4) The website shall provide detailed data on contracts 
awarded by the Federal Government that expend covered funds, 
including information about the competitiveness of the con-
tracting process, information about the process that was used 
for the award of contracts, and for contracts over $500,000 
a summary of the contract. 
(5) The website shall include printable reports on covered 
funds obligated by month to each State and congressional dis-
trict. 
(6) The website shall provide a means for the public to 
give feedback on the performance of contracts that expend 
covered funds. 
(7) The website shall include detailed information on Fed-
eral Government contracts and grants that expend covered 
funds, to include the data elements required to comply with 
the Federal Funding Accountability and Transparency Act of 
2006 (Public Law 109–282), allowing aggregate reporting on 
awards below $25,000 or to individuals, as prescribed by the 
Director of the Office of Management and Budget. 
(8) The website shall provide a link to estimates of the 
jobs sustained or created by the Act. 
(9) The website shall provide a link to information about 
announcements of grant competitions and solicitations for con-
tracts to be awarded. 
(10) The website shall include appropriate links to other 
government websites with information concerning covered 
funds, including Federal agency and State websites. 
Contracts. 
Grants. 
Deadline. 
Public 
information. 
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123 STAT. 294 
PUBLIC LAW 111–5—FEB. 17, 2009 
(11) The website shall include a plan from each Federal 
agency for using funds made available in this Act to the agency. 
(12) The website shall provide information on Federal 
allocations of formula grants and awards of competitive grants 
using covered funds. 
(13) The website shall provide information on Federal 
allocations of mandatory and other entitlement programs by 
State, county, or other appropriate geographical unit. 
(14) To the extent practical, the website shall provide, 
organized by the location of the job opportunities involved, 
links to and information about how to access job opportunities, 
including, if possible, links to or information about local employ-
ment agencies, job banks operated by State workforce agencies, 
the Department of Labor’s CareerOneStop website, State, local 
and other public agencies receiving Federal funding, and private 
firms contracted to perform work with Federal funding, in 
order to direct job seekers to job opportunities created by this 
Act. 
(15) The website shall be enhanced and updated as nec-
essary to carry out the purposes of this subtitle. 
(d) WAIVER.—The Board may exclude posting contractual or 
other information on the website on a case-by-case basis when 
necessary to protect national security or to protect information 
that is not subject to disclosure under sections 552 and 552a of 
title 5, United States Code. 
SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL. 
(a) INDEPENDENT AUTHORITY.—Nothing in this subtitle shall 
affect the independent authority of an inspector general to deter-
mine whether to conduct an audit or investigation of covered funds. 
(b) REQUESTS
BY BOARD.—If the Board requests that an 
inspector general conduct or refrain from conducting an audit or 
investigation and the inspector general rejects the request in whole 
or in part, the inspector general shall, not later than 30 days 
after rejecting the request, submit a report to the Board, the head 
of the applicable agency, and the congressional committees of juris-
diction, including the Committees on Appropriations of the Senate 
and House of Representatives. The report shall state the reasons 
that the inspector general has rejected the request in whole or 
in part. The inspector general’s decision shall be final. 
SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND 
STATE AUDITORS. 
The Board shall coordinate its oversight activities with the 
Comptroller General of the United States and State auditors. 
SEC. 1529. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as necessary 
to carry out this subtitle. 
SEC. 1530. TERMINATION OF THE BOARD. 
The Board shall terminate on September 30, 2013. 
Deadline. 
Reports. 
Plans. 
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123 STAT. 295 
PUBLIC LAW 111–5—FEB. 17, 2009 
Subtitle C—Recovery Independent 
Advisory Panel 
SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY 
PANEL. 
(a) ESTABLISHMENT.—There is established the Recovery Inde-
pendent Advisory Panel. 
(b) MEMBERSHIP.—The Panel shall be composed of 5 members 
who shall be appointed by the President. 
(c) QUALIFICATIONS.—Members shall be appointed on the basis 
of expertise in economics, public finance, contracting, accounting, 
or any other relevant field. 
(d) INITIAL MEETING.—Not later than 30 days after the date 
on which all members of the Panel have been appointed, the Panel 
shall hold its first meeting. 
(e) MEETINGS.—The Panel shall meet at the call of the Chair-
person of the Panel. 
(f) QUORUM.—A majority of the members of the Panel shall 
constitute a quorum, but a lesser number of members may hold 
hearings. 
(g) CHAIRPERSON
AND VICE CHAIRPERSON.—The Panel shall 
select a Chairperson and Vice Chairperson from among its members. 
SEC. 1542. DUTIES OF THE PANEL. 
The Panel shall make recommendations to the Board on actions 
the Board could take to prevent fraud, waste, and abuse relating 
to covered funds. 
SEC. 1543. POWERS OF THE PANEL. 
(a) HEARINGS.—The Panel may hold such hearings, sit and 
act at such times and places, take such testimony, and receive 
such evidence as the Panel considers advisable to carry out this 
subtitle. 
(b) INFORMATION FROM FEDERAL AGENCIES.—The Panel may 
secure directly from any agency such information as the Panel 
considers necessary to carry out this subtitle. Upon request of 
the Chairperson of the Panel, the head of such agency shall furnish 
such information to the Panel. 
(c) POSTAL SERVICES.—The Panel may use the United States 
mails in the same manner and under the same conditions as agen-
cies of the Federal Government. 
(d) GIFTS.—The Panel may accept, use, and dispose of gifts 
or donations of services or property. 
SEC. 1544. PANEL PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—Each member of the Panel 
who is not an officer or employee of the Federal Government shall 
be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, for 
each day (including travel time) during which such member is 
engaged in the performance of the duties of the Panel. All members 
of the Panel who are officers or employees of the United States 
shall serve without compensation in addition to that received for 
their services as officers or employees of the United States. 
Recommenda- 
tions. 
Deadline. 
President. 
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123 STAT. 296 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) TRAVEL EXPENSES.—The members of the Panel shall be 
allowed travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under subchapter 
I of chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Panel. 
(c) STAFF.— 
(1) IN GENERAL.—The Chairperson of the Panel may, with-
out regard to the civil service laws and regulations, appoint 
and terminate an executive director and such other additional 
personnel as may be necessary to enable the Panel to perform 
its duties. The employment of an executive director shall be 
subject to confirmation by the Panel. 
(2) COMPENSATION.—The Chairperson of the Panel may 
fix the compensation of the executive director and other per-
sonnel without regard to chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classifica-
tion of positions and General Schedule pay rates, except that 
the rate of pay for the executive director and other personnel 
may not exceed the rate payable for level V of the Executive 
Schedule under section 5316 of such title. 
(3) PERSONNEL AS FEDERAL EMPLOYEES.— 
(A) IN GENERAL.—The executive director and any per-
sonnel of the Panel who are employees shall be employees 
under section 2105 of title 5, United States Code, for pur-
poses of chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 
and 90 of that title. 
(B) MEMBERS OF PANEL.—Subparagraph (A) shall not 
be construed to apply to members of the Panel. 
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Federal Govern-
ment employee may be detailed to the Panel without reimburse-
ment, and such detail shall be without interruption or loss of 
civil service status or privilege. 
(e) PROCUREMENT
OF TEMPORARY
AND INTERMITTENT SERV-
ICES.—The Chairperson of the Panel may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equiva-
lent of the annual rate of basic pay prescribed for level V of 
the Executive Schedule under section 5316 of such title. 
(f) ADMINISTRATIVE SUPPORT.—The General Services Adminis-
tration shall provide the Panel with administrative support services, 
including the provision of office space and facilities. 
SEC. 1545. TERMINATION OF THE PANEL. 
The Panel shall terminate on September 30, 2013. 
SEC. 1546. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as necessary 
to carry out this subtitle. 
Subtitle D—Additional Accountability and 
Transparency Requirements 
SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS. 
Although this Act provides supplemental appropriations for 
programs, projects, and activities in existing Treasury accounts, 
Waiver authority. 
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123 STAT. 297 
PUBLIC LAW 111–5—FEB. 17, 2009 
to facilitate tracking these funds through Treasury and agency 
accounting systems, the Secretary of the Treasury shall ensure 
that all funds appropriated in this Act shall be established in 
separate Treasury accounts, unless a waiver from this provision 
is approved by the Director of the Office of Management and Budget. 
SEC. 
1552. 
SET-ASIDE 
FOR 
STATE 
AND 
LOCAL 
GOVERNMENT 
REPORTING AND RECORDKEEPING. 
Federal agencies receiving funds under this Act, may, after 
following the notice and comment rulemaking requirements under 
the Administrative Procedures Act (5 U.S.C. 500), reasonably adjust 
applicable limits on administrative expenditures for Federal awards 
to help award recipients defray the costs of data collection require-
ments initiated pursuant to this Act. 
SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CON-
TRACTOR WHISTLEBLOWERS. 
(a) PROHIBITION OF REPRISALS.—An employee of any non-Fed-
eral employer receiving covered funds may not be discharged, 
demoted, or otherwise discriminated against as a reprisal for dis-
closing, including a disclosure made in the ordinary course of an 
employee’s duties, to the Board, an inspector general, the Comp-
troller General, a member of Congress, a State or Federal regulatory 
or law enforcement agency, a person with supervisory authority 
over the employee (or such other person working for the employer 
who has the authority to investigate, discover, or terminate mis-
conduct), a court or grand jury, the head of a Federal agency, 
or their representatives, information that the employee reasonably 
believes is evidence of— 
(1) gross mismanagement of an agency contract or grant 
relating to covered funds; 
(2) a gross waste of covered funds; 
(3) a substantial and specific danger to public health or 
safety related to the implementation or use of covered funds; 
(4) an abuse of authority related to the implementation 
or use of covered funds; or 
(5) a violation of law, rule, or regulation related to an 
agency contract (including the competition for or negotiation 
of a contract) or grant, awarded or issued relating to covered 
funds. 
(b) INVESTIGATION OF COMPLAINTS.— 
(1) IN GENERAL.—A person who believes that the person 
has been subjected to a reprisal prohibited by subsection (a) 
may submit a complaint regarding the reprisal to the appro-
priate inspector general. Except as provided under paragraph 
(3), unless the inspector general determines that the complaint 
is frivolous, does not relate to covered funds, or another Federal 
or State judicial or administrative proceeding has previously 
been invoked to resolve such complaint, the inspector general 
shall investigate the complaint and, upon completion of such 
investigation, submit a report of the findings of the investiga-
tion to the person, the person’s employer, the head of the 
appropriate agency, and the Board. 
(2) TIME LIMITATIONS FOR ACTIONS.— 
(A) IN GENERAL.—Except as provided under subpara-
graph (B), the inspector general shall, not later than 180 
days after receiving a complaint under paragraph (1)— 
Deadline. 
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123 STAT. 298 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) make a determination that the complaint is 
frivolous, does not relate to covered funds, or another 
Federal or State judicial or administrative proceeding 
has previously been invoked to resolve such complaint; 
or 
(ii) submit a report under paragraph (1). 
(B) EXTENSIONS.— 
(i) VOLUNTARY
EXTENSION
AGREED
TO
BETWEEN 
INSPECTOR
GENERAL
AND
COMPLAINANT.—If 
the 
inspector general is unable to complete an investigation 
under this section in time to submit a report within 
the 180-day period specified under subparagraph (A) 
and the person submitting the complaint agrees to 
an extension of time, the inspector general shall submit 
a report under paragraph (1) within such additional 
period of time as shall be agreed upon between the 
inspector general and the person submitting the com-
plaint. 
(ii) EXTENSION GRANTED BY INSPECTOR GENERAL.— 
If the inspector general is unable to complete an inves-
tigation under this section in time to submit a report 
within the 180-day period specified under subpara-
graph (A), the inspector general may extend the period 
for not more than 180 days without agreeing with 
the person submitting the complaint to such extension, 
provided that the inspector general provides a written 
explanation (subject to the authority to exclude 
information under paragraph (4)(C)) for the decision, 
which shall be provided to both the person submitting 
the complaint and the non-Federal employer. 
(iii) SEMI-ANNUAL
REPORT
ON
EXTENSIONS.—The 
inspector general shall include in semi-annual reports 
to Congress a list of those investigations for which 
the inspector general received an extension. 
(3) DISCRETION NOT TO INVESTIGATE COMPLAINTS.— 
(A) IN GENERAL.—The inspector general may decide 
not to conduct or continue an investigation under this 
section upon providing to the person submitting the com-
plaint and the non-Federal employer a written explanation 
(subject to the authority to exclude information under para-
graph (4)(C)) for such decision. 
(B) ASSUMPTION OF RIGHTS TO CIVIL REMEDY.—Upon 
receipt of an explanation of a decision not to conduct or 
continue an investigation under subparagraph (A), the per-
son submitting a complaint shall immediately assume the 
right to a civil remedy under subsection (c)(3) as if the 
210-day period specified under such subsection has already 
passed. 
(C) SEMI-ANNUAL REPORT.—The inspector general shall 
include in semi-annual reports to Congress a list of those 
investigations the inspector general decided not to conduct 
or continue under this paragraph. 
(4) ACCESS
TO
INVESTIGATIVE
FILE
OF
INSPECTOR
GEN-
ERAL.— 
(A) IN GENERAL.—The person alleging a reprisal under 
this section shall have access to the investigation file of 
Reports. 
Determination. 
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123 STAT. 299 
PUBLIC LAW 111–5—FEB. 17, 2009 
the appropriate inspector general in accordance with sec-
tion 552a of title 5, United States Code (commonly referred 
to as the ‘‘Privacy Act’’). The investigation of the inspector 
general shall be deemed closed for purposes of disclosure 
under such section when an employee files an appeal to 
an agency head or a court of competent jurisdiction. 
(B) CIVIL ACTION.—In the event the person alleging 
the reprisal brings suit under subsection (c)(3), the person 
alleging the reprisal and the non-Federal employer shall 
have access to the investigative file of the inspector general 
in accordance with the Privacy Act. 
(C) EXCEPTION.—The inspector general may exclude 
from disclosure— 
(i) information protected from disclosure by a 
provision of law; and 
(ii) any additional information the inspector gen-
eral determines disclosure of which would impede a 
continuing investigation, provided that such informa-
tion is disclosed once such disclosure would no longer 
impede such investigation, unless the inspector general 
determines that disclosure of law enforcement tech-
niques, procedures, or information could reasonably 
be expected to risk circumvention of the law or disclose 
the identity of a confidential source. 
(5) PRIVACY OF INFORMATION.—An inspector general inves-
tigating an alleged reprisal under this section may not respond 
to any inquiry or disclose any information from or about any 
person alleging such reprisal, except in accordance with the 
provisions of section 552a of title 5, United States Code, or 
as required by any other applicable Federal law. 
(c) REMEDY AND ENFORCEMENT AUTHORITY.— 
(1) BURDEN OF PROOF.— 
(A) 
DISCLOSURE
AS
CONTRIBUTING
FACTOR
IN 
REPRISAL.— 
(i) IN GENERAL.—A person alleging a reprisal under 
this section shall be deemed to have affirmatively 
established the occurrence of the reprisal if the person 
demonstrates that a disclosure described in subsection 
(a) was a contributing factor in the reprisal. 
(ii) USE OF CIRCUMSTANTIAL EVIDENCE.—A disclo-
sure may be demonstrated as a contributing factor 
in a reprisal for purposes of this paragraph by cir-
cumstantial evidence, including— 
(I) evidence that the official undertaking the 
reprisal knew of the disclosure; or 
(II) evidence that the reprisal occurred within 
a period of time after the disclosure such that 
a reasonable person could conclude that the disclo-
sure was a contributing factor in the reprisal. 
(B) OPPORTUNITY
FOR
REBUTTAL.—The head of an 
agency may not find the occurrence of a reprisal with 
respect to a reprisal that is affirmatively established under 
subparagraph (A) if the non-Federal employer dem-
onstrates by clear and convincing evidence that the non- 
Federal employer would have taken the action constituting 
the reprisal in the absence of the disclosure. 
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123 STAT. 300 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) AGENCY ACTION.—Not later than 30 days after receiving 
an inspector general report under subsection (b), the head 
of the agency concerned shall determine whether there is suffi-
cient basis to conclude that the non-Federal employer has sub-
jected the complainant to a reprisal prohibited by subsection 
(a) and shall either issue an order denying relief in whole 
or in part or shall take 1 or more of the following actions: 
(A) Order the employer to take affirmative action to 
abate the reprisal. 
(B) Order the employer to reinstate the person to the 
position that the person held before the reprisal, together 
with the compensation (including back pay), compensatory 
damages, employment benefits, and other terms and condi-
tions of employment that would apply to the person in 
that position if the reprisal had not been taken. 
(C) Order the employer to pay the complainant an 
amount equal to the aggregate amount of all costs and 
expenses (including attorneys’ fees and expert witnesses’ 
fees) that were reasonably incurred by the complainant 
for, or in connection with, bringing the complaint regarding 
the reprisal, as determined by the head of the agency 
or a court of competent jurisdiction. 
(3) CIVIL
ACTION.—If the head of an agency issues an 
order denying relief in whole or in part under paragraph (1), 
has not issued an order within 210 days after the submission 
of a complaint under subsection (b), or in the case of an exten-
sion of time under subsection (b)(2)(B)(i), within 30 days after 
the expiration of the extension of time, or decides under sub-
section (b)(3) not to investigate or to discontinue an investiga-
tion, and there is no showing that such delay or decision is 
due to the bad faith of the complainant, the complainant shall 
be deemed to have exhausted all administrative remedies with 
respect to the complaint, and the complainant may bring a 
de novo action at law or equity against the employer to seek 
compensatory damages and other relief available under this 
section in the appropriate district court of the United States, 
which shall have jurisdiction over such an action without regard 
to the amount in controversy. Such an action shall, at the 
request of either party to the action, be tried by the court 
with a jury. 
(4) JUDICIAL ENFORCEMENT OF ORDER.—Whenever a person 
fails to comply with an order issued under paragraph (2), 
the head of the agency shall file an action for enforcement 
of such order in the United States district court for a district 
in which the reprisal was found to have occurred. In any 
action brought under this paragraph, the court may grant 
appropriate relief, including injunctive relief, compensatory and 
exemplary damages, and attorneys fees and costs. 
(5) JUDICIAL REVIEW.—Any person adversely affected or 
aggrieved by an order issued under paragraph (2) may obtain 
review of the order’s conformance with this subsection, and 
any regulations issued to carry out this section, in the United 
States court of appeals for a circuit in which the reprisal 
is alleged in the order to have occurred. No petition seeking 
such review may be filed more than 60 days after issuance 
of the order by the head of the agency. Review shall conform 
to chapter 7 of title 5, United States Code. 
Deadline. 
Deadlines. 
Deadline. 
Determination. 
Relief orders. 
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123 STAT. 301 
PUBLIC LAW 111–5—FEB. 17, 2009 
(d) NONENFORCEABILITY
OF
CERTAIN
PROVISIONS
WAIVING 
RIGHTS AND REMEDIES OR REQUIRING ARBITRATION OF DISPUTES.— 
(1) WAIVER OF RIGHTS AND REMEDIES.—Except as provided 
under paragraph (3), the rights and remedies provided for 
in this section may not be waived by any agreement, policy, 
form, or condition of employment, including by any predispute 
arbitration agreement. 
(2) PREDISPUTE ARBITRATION AGREEMENTS.—Except as pro-
vided under paragraph (3), no predispute arbitration agreement 
shall be valid or enforceable if it requires arbitration of a 
dispute arising under this section. 
(3) EXCEPTION FOR COLLECTIVE BARGAINING AGREEMENTS.— 
Notwithstanding paragraphs (1) and (2), an arbitration provi-
sion in a collective bargaining agreement shall be enforceable 
as to disputes arising under the collective bargaining agree-
ment. 
(e) REQUIREMENT TO POST NOTICE OF RIGHTS AND REMEDIES.— 
Any employer receiving covered funds shall post notice of the rights 
and remedies provided under this section. 
(f) RULES OF CONSTRUCTION.— 
(1) NO
IMPLIED
AUTHORITY
TO
RETALIATE
FOR
NON-PRO-
TECTED
DISCLOSURES.—Nothing in this section may be con-
strued to authorize the discharge of, demotion of, or discrimina-
tion against an employee for a disclosure other than a disclosure 
protected by subsection (a) or to modify or derogate from a 
right or remedy otherwise available to the employee. 
(2) RELATIONSHIP TO STATE LAWS.—Nothing in this section 
may be construed to preempt, preclude, or limit the protections 
provided for public or private employees under State whistle-
blower laws. 
(g) DEFINITIONS.—In this section: 
(1) ABUSE OF AUTHORITY.—The term ‘‘abuse of authority’’ 
means an arbitrary and capricious exercise of authority by 
a contracting official or employee that adversely affects the 
rights of any person, or that results in personal gain or advan-
tage to the official or employee or to preferred other persons. 
(2) COVERED FUNDS.—The term ‘‘covered funds’’ means any 
contract, grant, or other payment received by any non-Federal 
employer if— 
(A) the Federal Government provides any portion of 
the money or property that is provided, requested, or 
demanded; and 
(B) at least some of the funds are appropriated or 
otherwise made available by this Act. 
(3) EMPLOYEE.—The term ‘‘employee’’— 
(A) except as provided under subparagraph (B), means 
an individual performing services on behalf of an employer; 
and 
(B) does not include any Federal employee or member 
of the uniformed services (as that term is defined in section 
101(a)(5) of title 10, United States Code). 
(4) NON-FEDERAL
EMPLOYER.—The term ‘‘non-Federal 
employer’’— 
(A) means any employer— 
(i) with respect to covered funds— 
(I) the contractor, subcontractor, grantee, or 
recipient, as the case may be, if the contractor, 
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123 STAT. 302 
PUBLIC LAW 111–5—FEB. 17, 2009 
subcontractor, grantee, or recipient is an employer; 
and 
(II) any professional membership organization, 
certification or other professional body, any agent 
or licensee of the Federal government, or any per-
son acting directly or indirectly in the interest 
of an employer receiving covered funds; or 
(ii) with respect to covered funds received by a 
State or local government, the State or local govern-
ment receiving the funds and any contractor or subcon-
tractor of the State or local government; and 
(B) does not mean any department, agency, or other 
entity of the Federal Government. 
(5) STATE
OR
LOCAL
GOVERNMENT.—The term ‘‘State or 
local government’’ means— 
(A) the government of each of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the Virgin Islands, the Common-
wealth of the Northern Mariana Islands, or any other 
territory or possession of the United States; or 
(B) the government of any political subdivision of a 
government listed in subparagraph (A). 
SEC. 1554. SPECIAL CONTRACTING PROVISIONS. 
To the maximum extent possible, contracts funded under this 
Act shall be awarded as fixed-price contracts through the use of 
competitive procedures. A summary of any contract awarded with 
such funds that is not fixed-price and not awarded using competitive 
procedures shall be posted in a special section of the website estab-
lished in section 1526. 
TITLE XVI—GENERAL PROVISIONS—THIS ACT 
RELATIONSHIP TO OTHER APPROPRIATIONS 
SEC. 1601. Each amount appropriated or made available in 
this Act is in addition to amounts otherwise appropriated for the 
fiscal year involved. Enactment of this Act shall have no effect 
on the availability of amounts under the Continuing Appropriations 
Resolution, 2009 (division A of Public Law 110–329). 
PREFERENCE FOR QUICK-START ACTIVITIES 
SEC. 1602. In using funds made available in this Act for infra-
structure investment, recipients shall give preference to activities 
that can be started and completed expeditiously, including a goal 
of using at least 50 percent of the funds for activities that can 
be initiated not later than 120 days after the date of the enactment 
of this Act. Recipients shall also use grant funds in a manner 
that maximizes job creation and economic benefit. 
PERIOD OF AVAILABILITY 
SEC. 1603. All funds appropriated in this Act shall remain 
available for obligation until September 30, 2010, unless expressly 
provided otherwise in this Act. 
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123 STAT. 303 
PUBLIC LAW 111–5—FEB. 17, 2009 
LIMIT ON FUNDS 
SEC. 1604. None of the funds appropriated or otherwise made 
available in this Act may be used by any State or local government, 
or any private entity, for any casino or other gambling establish-
ment, aquarium, zoo, golf course, or swimming pool. 
BUY AMERICAN 
SEC. 1605. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED 
GOODS. (a) None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the construction, 
alteration, maintenance, or repair of a public building or public 
work unless all of the iron, steel, and manufactured goods used 
in the project are produced in the United States. 
(b) Subsection (a) shall not apply in any case or category 
of cases in which the head of the Federal department or agency 
involved finds that— 
(1) applying subsection (a) would be inconsistent with the 
public interest; 
(2) iron, steel, and the relevant manufactured goods are 
not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality; or 
(3) inclusion of iron, steel, and manufactured goods pro-
duced in the United States will increase the cost of the overall 
project by more than 25 percent. 
(c) If the head of a Federal department or agency determines 
that it is necessary to waive the application of subsection (a) based 
on a finding under subsection (b), the head of the department 
or agency shall publish in the Federal Register a detailed written 
justification as to why the provision is being waived. 
(d) This section shall be applied in a manner consistent with 
United States obligations under international agreements. 
WAGE RATE REQUIREMENTS 
SEC. 1606. Notwithstanding any other provision of law and 
in a manner consistent with other provisions in this Act, all laborers 
and mechanics employed by contractors and subcontractors on 
projects funded directly by or assisted in whole or in part by 
and through the Federal Government pursuant to this Act shall 
be paid wages at rates not less than those prevailing on projects 
of a character similar in the locality as determined by the Secretary 
of Labor in accordance with subchapter IV of chapter 31 of title 
40, United States Code. With respect to the labor standards speci-
fied in this section, the Secretary of Labor shall have the authority 
and functions set forth in Reorganization Plan Numbered 14 of 
1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 
United States Code. 
ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF 
APPROPRIATE USE OF FUNDS 
SEC. 1607. (a) CERTIFICATION BY GOVERNOR.—Not later than 
45 days after the date of enactment of this Act, for funds provided 
to any State or agency thereof, the Governor of the State shall 
certify that: (1) the State will request and use funds provided 
by this Act; and (2) the funds will be used to create jobs and 
promote economic growth. 
Deadline. 
Contracts. 
Applicability. 
Federal Register, 
publication. 
Waiver authority. 
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123 STAT. 304 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) ACCEPTANCE
BY STATE LEGISLATURE.—If funds provided 
to any State in any division of this Act are not accepted for use 
by the Governor, then acceptance by the State legislature, by means 
of the adoption of a concurrent resolution, shall be sufficient to 
provide funding to such State. 
(c) DISTRIBUTION.—After the adoption of a State legislature’s 
concurrent resolution, funding to the State will be for distribution 
to local governments, councils of government, public entities, and 
public-private entities within the State either by formula or at 
the State’s discretion. 
ECONOMIC STABILIZATION CONTRACTING 
SEC. 1608. REFORM
OF CONTRACTING PROCEDURES UNDER 
EESA. Section 107(b) of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5217(b)) is amended by inserting ‘‘and 
individuals with disabilities and businesses owned by individuals 
with disabilities (for purposes of this subsection the term ‘individual 
with disability’ has the same meaning as the term ‘handicapped 
individual’ as that term is defined in section 3(f) of the Small 
Business Act (15 U.S.C. 632(f)),’’ after ‘‘(12 U.S.C. 1441a(r)(4)),’’. 
SEC. 1609. (a) FINDINGS.— 
(1) The National Environmental Policy Act protects public 
health, safety and environmental quality: by ensuring trans-
parency, accountability and public involvement in federal 
actions and in the use of public funds; 
(2) When President Nixon signed the National Environ-
mental Policy Act into law on January 1, 1970, he said that 
the Act provided the ‘‘direction’’ for the country to ‘‘regain 
a productive harmony between man and nature’’; 
(3) The National Environmental Policy Act helps to provide 
an orderly process for considering federal actions and funding 
decisions and prevents ligation and delay that would otherwise 
be inevitable and existed prior to the establishment of the 
National Environmental Policy Act. 
(b) Adequate resources within this bill must be devoted to 
ensuring that applicable environmental reviews under the National 
Environmental Policy Act are completed on an expeditious basis 
and that the shortest existing applicable process under the National 
Environmental Policy Act shall be utilized. 
(c) The President shall report to the Senate Environment and 
Public Works Committee and the House Natural Resources Com-
mittee every 90 days following the date of enactment until Sep-
tember 30, 2011 on the status and progress of projects and activities 
funded by this Act with respect to compliance with National 
Environmental Policy Act requirements and documentation. 
SEC. 1610. (a) None of the funds appropriated or otherwise 
made available by this Act, for projects initiated after the effective 
date of this Act, may be used by an executive agency to enter 
into any Federal contract unless such contract is entered into in 
accordance with the Federal Property and Administrative Services 
Act (41 U.S.C. 253) or chapter 137 of title 10, United States Code, 
and the Federal Acquisition Regulation, unless such contract is 
otherwise authorized by statute to be entered into without regard 
to the above referenced statutes. 
(b) All projects to be conducted under the authority of the 
Indian Self-Determination and Education Assistance Act, the Trib-
ally-Controlled Schools Act, the Sanitation and Facilities Act, the 
President. 
Reports. 
Deadlines. 
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123 STAT. 305 
PUBLIC LAW 111–5—FEB. 17, 2009 
Native American Housing and Self-Determination Assistance Act 
and the Buy-Indian Act shall be identified by the appropriate Sec-
retary and the appropriate Secretary shall incorporate provisions 
to ensure that the agreement conforms with the provisions of this 
Act regarding the timing for use of funds and transparency, over-
sight, reporting, and accountability, including review by the Inspec-
tors General, the Accountability and Transparency Board, and 
Government Accountability Office, consistent with the objectives 
of this Act. 
SEC. 1611. HIRING
AMERICAN
WORKERS
IN
COMPANIES 
RECEIVING TARP FUNDING. (a) SHORT TITLE.—This section may 
be cited as the ‘‘Employ American Workers Act’’. 
(b) PROHIBITION.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, it shall be unlawful for any recipient of funding under 
title I of the Emergency Economic Stabilization Act of 2008 
(Public Law 110–343) or section 13 of the Federal Reserve 
Act (12 U.S.C. 342 et seq.) to hire any nonimmigrant described 
in section 101(a)(15)(h)(i)(b) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in 
compliance with the requirements for an H–1B dependent 
employer (as defined in section 212(n)(3) of such Act (8 U.S.C. 
1182(n)(3))), except that the second sentence of section 
212(n)(1)(E)(ii) of such Act shall not apply. 
(2) DEFINED
TERM.—In this subsection, the term ‘‘hire’’ 
means to permit a new employee to commence a period of 
employment. 
(c) SUNSET PROVISION.—This section shall be effective during 
the 2-year period beginning on the date of the enactment of this 
Act. 
SEC. 1612. During the current fiscal year not to exceed 1 
percent of any appropriation made available by this Act may be 
transferred by an agency head between such appropriations funded 
in this Act of that department or agency: Provided, That such 
appropriations shall be merged with and available for the same 
purposes, and for the same time period, as the appropriation to 
which transferred: Provided further, That the agency head shall 
notify the Committees on Appropriations of the Senate and House 
of Representatives of the transfer 15 days in advance: Provided 
further, That notice of any transfer made pursuant to this authority 
be posted on the website established by the Recovery Act Account-
ability and Transparency Board 15 days following such transfer: 
Provided further, That the authority contained in this section is 
in addition to transfer authorities otherwise available under current 
law: Provided further, That the authority provided in this section 
shall not apply to any appropriation that is subject to transfer 
provisions included elsewhere in this Act. 
Notification. 
Web posting. 
Deadline. 
Notification. 
Deadline. 
Employ 
American 
Workers Act. 
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123 STAT. 306 
PUBLIC LAW 111–5—FEB. 17, 2009 
DIVISION 
B—TAX, 
UNEMPLOYMENT, 
HEALTH, STATE FISCAL RELIEF, AND 
OTHER PROVISIONS 
TITLE I—TAX PROVISIONS 
SEC. 1000. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This title may be cited as the ‘‘American 
Recovery and Reinvestment Tax Act of 2009’’. 
(b) REFERENCE.—Except as otherwise expressly provided, when-
ever in this title 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. 
(c) TABLE OF CONTENTS.—The table of contents for this title 
is as follows: 
TITLE I—TAX PROVISIONS 
Sec. 1000. Short title, etc. 
Subtitle A—Tax Relief for Individuals and Families 
PART I—GENERAL TAX RELIEF 
Sec. 1001. Making work pay credit. 
Sec. 1002. Temporary increase in earned income tax credit. 
Sec. 1003. Temporary increase of refundable portion of child credit. 
Sec. 1004. American opportunity tax credit. 
Sec. 1005. Computer technology and equipment allowed as a qualified higher edu-
cation expense for section 529 accounts in 2009 and 2010. 
Sec. 1006. Extension of and increase in first-time homebuyer credit; waiver of re-
quirement to repay. 
Sec. 1007. Suspension of tax on portion of unemployment compensation. 
Sec. 1008. Additional deduction for State sales tax and excise tax on the purchase 
of certain motor vehicles. 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 1011. Extension of alternative minimum tax relief for nonrefundable personal 
credits. 
Sec. 1012. Extension of increased alternative minimum tax exemption amount. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
Sec. 1101. Extension of credit for electricity produced from certain renewable re-
sources. 
Sec. 1102. Election of investment credit in lieu of production credit. 
Sec. 1103. Repeal of certain limitations on credit for renewable energy property. 
Sec. 1104. Coordination with renewable energy grants. 
PART II—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
Sec. 1111. Increased limitation on issuance of new clean renewable energy bonds. 
Sec. 1112. Increased limitation on issuance of qualified energy conservation bonds. 
PART III—ENERGY CONSERVATION INCENTIVES 
Sec. 1121. Extension and modification of credit for nonbusiness energy property. 
Sec. 1122. Modification of credit for residential energy efficient property. 
Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling prop-
erty. 
PART IV—MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION 
Sec. 1131. Application of monitoring requirements to carbon dioxide used as a ter-
tiary injectant. 
26 USC 1 et seq. 
26 USC 1 note. 
American 
Recovery and 
Reinvestment 
Tax Act of 2009. 
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123 STAT. 307 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART V—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES 
Sec. 1141. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 1142. Credit for certain plug-in electric vehicles. 
Sec. 1143. Conversion kits. 
Sec. 1144. Treatment of alternative motor vehicle credit as a personal credit al-
lowed against AMT. 
PART VI—PARITY FOR TRANSPORTATION FRINGE BENEFITS 
Sec. 1151. Increased exclusion amount for commuter transit benefits and transit 
passes. 
Subtitle C—Tax Incentives for Business 
PART I—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1201. Special allowance for certain property acquired during 2009. 
Sec. 1202. Temporary increase in limitations on expensing of certain depreciable 
business assets. 
PART II—SMALL BUSINESS PROVISIONS 
Sec. 1211. 5-year carryback of operating losses of small businesses. 
Sec. 1212. Decreased required estimated tax payments in 2009 for certain small 
businesses. 
PART III—INCENTIVES FOR NEW JOBS 
Sec. 1221. Incentives to hire unemployed veterans and disconnected youth. 
PART IV—RULES RELATING TO DEBT INSTRUMENTS 
Sec. 1231. Deferral and ratable inclusion of income arising from business indebted-
ness discharged by the reacquisition of a debt instrument. 
Sec. 1232. Modifications of rules for original issue discount on certain high yield ob-
ligations. 
PART V—QUALIFIED SMALL BUSINESS STOCK 
Sec. 1241. Special rules applicable to qualified small business stock for 2009 and 
2010. 
PART VI—S CORPORATIONS 
Sec. 1251. Temporary reduction in recognition period for built-in gains tax. 
PART VII—RULES RELATING TO OWNERSHIP CHANGES 
Sec. 1261. Clarification of regulations related to limitations on certain built-in 
losses following an ownership change. 
Sec. 1262. Treatment of certain ownership changes for purposes of limitations on 
net operating loss carryforwards and certain built-in losses. 
Subtitle D—Manufacturing Recovery Provisions 
Sec. 1301. Temporary expansion of availability of industrial development bonds to 
facilities manufacturing intangible property. 
Sec. 1302. Credit for investment in advanced energy facilities. 
Subtitle E—Economic Recovery Tools 
Sec. 1401. Recovery zone bonds. 
Sec. 1402. Tribal economic development bonds. 
Sec. 1403. Increase in new markets tax credit. 
Sec. 1404. Coordination of low-income housing credit and low-income housing 
grants. 
Subtitle F—Infrastructure Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of fi-
nancial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense al-
location rules for financial institutions. 
Sec. 1503. Temporary modification of alternative minimum tax limitations on tax- 
exempt bonds. 
Sec. 1504. Modification to high speed intercity rail facility bonds. 
PART II—DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
CONTRACTORS 
Sec. 1511. Delay in application of withholding tax on government contractors. 
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123 STAT. 308 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
Sec. 1521. Qualified school construction bonds. 
Sec. 1522. Extension and expansion of qualified zone academy bonds. 
PART IV—BUILD AMERICA BONDS 
Sec. 1531. Build America bonds. 
PART V—REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT 
BOND CREDITS 
Sec. 1541. Regulated investment companies allowed to pass-thru tax credit bond 
credits. 
Subtitle G—Other Provisions 
Sec. 1601. Application of certain labor standards to projects financed with certain 
tax-favored bonds. 
Sec. 1602. Grants to States for low-income housing projects in lieu of low-income 
housing credit allocations for 2009. 
Sec. 1603. Grants for specified energy property in lieu of tax credits. 
Sec. 1604. Increase in public debt limit. 
Subtitle H—Prohibition on Collection of Certain Payments Made Under the 
Continued Dumping and Subsidy Offset Act of 2000 
Sec. 1701. Prohibition on collection of certain payments made under the Continued 
Dumping and Subsidy Offset Act of 2000. 
Subtitle I—Trade Adjustment Assistance 
Sec. 1800. Short title. 
PART I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS 
SUBPART A—TRADE ADJUSTMENT ASSISTANCE FOR SERVICE SECTOR WORKERS 
Sec. 1801. Extension of trade adjustment assistance to service sector and public 
agency workers; shifts in production. 
Sec. 1802. Separate basis for certification. 
Sec. 1803. Determinations by Secretary of Labor. 
Sec. 1804. Monitoring and reporting relating to service sector. 
SUBPART B—INDUSTRY NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE 
DETERMINATIONS 
Sec. 1811. Notifications following certain affirmative determinations. 
Sec. 1812. Notification to Secretary of Commerce. 
SUBPART C—PROGRAM BENEFITS 
Sec. 1821. Qualifying Requirements for Workers. 
Sec. 1822. Weekly amounts. 
Sec. 1823. Limitations on trade readjustment allowances; allowances for extended 
training and breaks in training. 
Sec. 1824. Special rules for calculation of eligibility period. 
Sec. 1825. Application of State laws and regulations on good cause for waiver of 
time limits or late filing of claims. 
Sec. 1826. Employment and case management services. 
Sec. 1827. Administrative expenses and employment and case management serv-
ices. 
Sec. 1828. Training funding. 
Sec. 1829. Prerequisite education; approved training programs. 
Sec. 1830. Pre-layoff and part-time training. 
Sec. 1831. On-the-job training. 
Sec. 1832. Eligibility for unemployment insurance and program benefits while in 
training. 
Sec. 1833. Job search and relocation allowances. 
SUBPART D—REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM 
Sec. 1841. Reemployment trade adjustment assistance program. 
SUBPART E—OTHER MATTERS 
Sec. 1851. Office of Trade Adjustment Assistance. 
Sec. 1852. Accountability of State agencies; collection and publication of program 
data; agreements with States. 
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123 STAT. 309 
PUBLIC LAW 111–5—FEB. 17, 2009 
Sec. 1853. Verification of eligibility for program benefits. 
Sec. 1854. Collection of data and reports; information to workers. 
Sec. 1855. Fraud and recovery of overpayments. 
Sec. 1856. Sense of Congress on application of trade adjustment assistance. 
Sec. 1857. Consultations in promulgation of regulations. 
Sec. 1858. Technical corrections. 
PART II—TRADE ADJUSTMENT ASSISTANCE FOR FIRMS 
Sec. 1861. Expansion to service sector firms. 
Sec. 1862. Modification of requirements for certification. 
Sec. 1863. Basis for determinations. 
Sec. 1864. Oversight and administration; authorization of appropriations. 
Sec. 1865. Increased penalties for false statements. 
Sec. 1866. Annual report on trade adjustment assistance for firms. 
Sec. 1867. Technical corrections. 
PART III—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES 
Sec. 1871. Purpose. 
Sec. 1872. Trade adjustment assistance for communities. 
Sec. 1873. Conforming amendments. 
PART IV—TRADE ADJUSTMENT ASSISTANCE FOR FARMERS 
Sec. 1881. Definitions. 
Sec. 1882. Eligibility. 
Sec. 1883. Benefits. 
Sec. 1884. Report. 
Sec. 1885. Fraud and recovery of overpayments. 
Sec. 1886. Determination of increases of imports for certain fishermen. 
Sec. 1887. Extension of trade adjustment assistance for farmers. 
PART V—GENERAL PROVISIONS 
Sec. 1891. Effective date. 
Sec. 1892. Extension of trade adjustment assistance programs. 
Sec. 1893. Termination; related provisions. 
Sec. 1894. Government Accountability Office report. 
Sec. 1895. Emergency designation. 
PART VI—HEALTH COVERAGE IMPROVEMENT 
Sec. 1899. Short title. 
Sec. 1899A. Improvement of the affordability of the credit. 
Sec. 1899B. Payment for monthly premiums paid prior to commencement of ad-
vance payments of credit. 
Sec. 1899C. TAA recipients not enrolled in training programs eligible for credit. 
Sec. 1899D. TAA pre-certification period rule for purposes of determining whether 
there is a 63-day lapse in creditable coverage. 
Sec. 1899E. Continued qualification of family members after certain events. 
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible individuals and 
PBGC recipients. 
Sec. 1899G. Addition of coverage through voluntary employees’ beneficiary associa-
tions. 
Sec. 1899H. Notice requirements. 
Sec. 1899I. Survey and report on enhanced health coverage tax credit program. 
Sec. 1899J. Authorization of appropriations. 
Sec. 1899K. Extension of national emergency grants. 
Sec. 1899L. GAO study and report. 
Subtitle A—Tax Relief for Individuals and 
Families 
PART I—GENERAL TAX RELIEF 
SEC. 1001. MAKING WORK PAY CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of subchapter A of 
chapter 1 is amended by inserting after section 36 the following 
new section: 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax imposed 
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123 STAT. 310 
PUBLIC LAW 111–5—FEB. 17, 2009 
by this subtitle for the taxable year an amount equal to the lesser 
of— 
‘‘(1) 6.2 percent of earned income of the taxpayer, or 
‘‘(2) $400 ($800 in the case of a joint return). 
‘‘(b) LIMITATION
BASED
ON
MODIFIED
ADJUSTED
GROSS 
INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a credit under 
subsection (a) (determined without regard to this paragraph 
and subsection (c)) for the taxable year shall be reduced (but 
not below zero) by 2 percent of so much of the taxpayer’s 
modified adjusted gross income as exceeds $75,000 ($150,000 
in the case of a joint return). 
‘‘(2) MODIFIED ADJUSTED GROSS INCOME.—For purposes of 
subparagraph (A), the term ‘modified adjusted gross income’ 
means the adjusted gross income of the taxpayer for the taxable 
year increased by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(c) REDUCTION FOR CERTAIN OTHER PAYMENTS.—The credit 
allowed under subsection (a) for any taxable year shall be reduced 
by the amount of any payments received by the taxpayer during 
such taxable year under section 2201, and any credit allowed to 
the taxpayer under section 2202, of the American Recovery and 
Reinvestment Tax Act of 2009. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
‘‘(1) ELIGIBLE INDIVIDUAL.— 
‘‘(A) IN GENERAL.—The term ‘eligible individual’ means 
any individual other than— 
‘‘(i) any nonresident alien individual, 
‘‘(ii) any individual with respect to whom a deduc-
tion under section 151 is allowable to another taxpayer 
for a taxable year beginning in the calendar year in 
which the individual’s taxable year begins, and 
‘‘(iii) an estate or trust. 
‘‘(B) IDENTIFICATION
NUMBER
REQUIREMENT.—Such 
term shall not include any individual who does not include 
on the return of tax for the taxable year— 
‘‘(i) such individual’s social security account 
number, and 
‘‘(ii) in the case of a joint return, the social security 
account number of one of the taxpayers on such return. 
For purposes of the preceding sentence, the social security 
account number shall not include a TIN issued by the 
Internal Revenue Service. 
‘‘(2) EARNED INCOME.—The term ‘earned income’ has the 
meaning given such term by section 32(c)(2), except that such 
term shall not include net earnings from self-employment which 
are not taken into account in computing taxable income. For 
purposes of the preceding sentence, any amount excluded from 
gross income by reason of section 112 shall be treated as 
earned income which is taken into account in computing taxable 
income for the taxable year. 
‘‘(e) TERMINATION.—This section shall not apply to taxable years 
beginning after December 31, 2010.’’. 
(b) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
26 USC 36A note. 
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123 STAT. 311 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) MIRROR CODE POSSESSION.—The Secretary of the 
Treasury shall pay to each possession of the United States 
with a mirror code tax system amounts equal to the loss 
to that possession by reason of the amendments made 
by this section with respect to taxable years beginning 
in 2009 and 2010. Such amounts shall be determined by 
the Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(B) 
OTHER
POSSESSIONS.—The 
Secretary 
of 
the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the amend-
ments made by this section for taxable years beginning 
in 2009 and 2010 if a mirror code tax system had been 
in effect in such possession. The preceding sentence shall 
not apply with respect to any possession of the United 
States unless such possession has a plan, which has been 
approved by the Secretary of the Treasury, under which 
such possession will promptly distribute such payments 
to the residents of such possession. 
(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED 
STATES
INCOME
TAXES.—No credit shall be allowed against 
United States income taxes for any taxable year under section 
36A of the Internal Revenue Code of 1986 (as added by this 
section) to any person— 
(A) to whom a credit is allowed against taxes imposed 
by the possession by reason of the amendments made by 
this section for such taxable year, or 
(B) who is eligible for a payment under a plan described 
in paragraph (1)(B) with respect to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) POSSESSION OF THE UNITED STATES.—For purposes 
of this subsection, the term ‘‘possession of the United 
States’’ includes the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands. 
(B) MIRROR CODE TAX SYSTEM.—For purposes of this 
subsection, the term ‘‘mirror code tax system’’ means, with 
respect to any possession of the United States, the income 
tax system of such possession if the income tax liability 
of the residents of such possession under such system is 
determined by reference to the income tax laws of the 
United States as if such possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For purposes of section 
1324(b)(2) of title 31, United States Code, the payments 
under this subsection shall be treated in the same manner 
as a refund due from the credit allowed under section 
36A of the Internal Revenue Code of 1986 (as added by 
this section). 
(c) REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
PROGRAMS
AND FEDERALLY ASSISTED PROGRAMS.—Any credit or 
refund allowed or made to any individual by reason of section 
36A of the Internal Revenue Code of 1986 (as added by this section) 
or by reason of subsection (b) of this section shall not be taken 
into account as income and shall not be taken into account as 
resources for the month of receipt and the following 2 months, 
26 USC 36A note. 
Effective dates. 
Effective dates. 
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123 STAT. 312 
PUBLIC LAW 111–5—FEB. 17, 2009 
for purposes of determining the eligibility of such individual or 
any other individual for benefits or assistance, or the amount or 
extent of benefits or assistance, under any Federal program or 
under any State or local program financed in whole or in part 
with Federal funds. 
(d) AUTHORITY
RELATING
TO
CLERICAL
ERRORS.—Section 
6213(g)(2) is amended by striking ‘‘and’’ at the end of subparagraph 
(L)(ii), by striking the period at the end of subparagraph (M) and 
inserting ‘‘, and’’, and by adding at the end the following new 
subparagraph: 
‘‘(N) an omission of the reduction required under sec-
tion 36A(c) with respect to the credit allowed under section 
36A or an omission of the correct social security account 
number required under section 36A(d)(1)(B).’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by inserting ‘‘36A,’’ 
after ‘‘36,’’. 
(2) Section 1324(b)(2) of title 31, United States Code, is 
amended by inserting ‘‘36A,’’ after ‘‘36,’’. 
(3) The table of sections for subpart C of part IV of sub-
chapter A of chapter 1 is amended by inserting after the item 
relating to section 36 the following new item: 
‘‘Sec. 36A. Making work pay credit.’’. 
(f) EFFECTIVE DATE.—This section, and the amendments made 
by this section, shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT. 
(a) IN GENERAL.—Subsection (b) of section 32 is amended by 
adding at the end the following new paragraph: 
‘‘(3) SPECIAL
RULES
FOR
2009
AND
2010.—In the case of 
any taxable year beginning in 2009 or 2010— 
‘‘(A) INCREASED CREDIT PERCENTAGE FOR 3 OR MORE 
QUALIFYING
CHILDREN.—In the case of a taxpayer with 
3 or more qualifying children, the credit percentage is 
45 percent. 
‘‘(B) REDUCTION OF MARRIAGE PENALTY.— 
‘‘(i) IN
GENERAL.—The dollar amount in effect 
under paragraph (2)(B) shall be $5,000. 
‘‘(ii) INFLATION ADJUSTMENT.—In the case of any 
taxable year beginning in 2010, the $5,000 amount 
in clause (i) 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 2008’ for ‘calendar year 1992’ in 
subparagraph (B) thereof. 
‘‘(iii) ROUNDING.—Subparagraph (A) of subsection 
(j)(2) shall apply after taking into account any increase 
under clause (ii).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
26 USC 32 note. 
Applicability. 
26 USC 32. 
26 USC 36A note. 
26 USC 6213. 
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123 STAT. 313 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF 
CHILD CREDIT. 
(a) IN GENERAL.—Paragraph (4) of section 24(d) is amended 
to read as follows: 
‘‘(4) SPECIAL
RULE
FOR
2009
AND
2010.—Notwithstanding 
paragraph (3), in the case of any taxable year beginning in 
2009 or 2010, the dollar amount in effect for such taxable 
year under paragraph (1)(B)(i) shall be $3,000.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 
(a) IN GENERAL.—Section 25A (relating to Hope scholarship 
credit) is amended by redesignating subsection (i) as subsection 
(j) and by inserting after subsection (h) the following new subsection: 
‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the case of any 
taxable year beginning in 2009 or 2010— 
‘‘(1) INCREASE IN CREDIT.—The Hope Scholarship Credit 
shall be an amount equal to the sum of— 
‘‘(A) 100 percent of so much of the qualified tuition 
and related expenses paid by the taxpayer during the tax-
able year (for education furnished to the eligible student 
during any academic period beginning in such taxable year) 
as does not exceed $2,000, plus 
‘‘(B) 25 percent of such expenses so paid as exceeds 
$2,000 but does not exceed $4,000. 
‘‘(2) CREDIT
ALLOWED
FOR
FIRST
4
YEARS
OF
POST-SEC-
ONDARY EDUCATION.—Subparagraphs (A) and (C) of subsection 
(b)(2) shall be applied by substituting ‘4’ for ‘2’. 
‘‘(3) QUALIFIED TUITION AND RELATED EXPENSES TO INCLUDE 
REQUIRED
COURSE
MATERIALS.—Subsection (f)(1)(A) shall be 
applied by substituting ‘tuition, fees, and course materials’ for 
‘tuition and fees’. 
‘‘(4) INCREASE
IN
AGI
LIMITS
FOR
HOPE
SCHOLARSHIP 
CREDIT.—In lieu of applying subsection (d) with respect to the 
Hope Scholarship Credit, such credit (determined without 
regard to this paragraph) shall be reduced (but not below 
zero) by the amount which bears the same ratio to such credit 
(as so determined) as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted gross income 
(as defined in subsection (d)(3)) for such taxable year, 
over 
‘‘(ii) $80,000 ($160,000 in the case of a joint return), 
bears to 
‘‘(B) $10,000 ($20,000 in the case of a joint return). 
‘‘(5) CREDIT
ALLOWED
AGAINST
ALTERNATIVE
MINIMUM 
TAX.—In the case of a taxable year to which section 26(a)(2) 
does not apply, so much of the credit allowed under subsection 
(a) as is attributable to the Hope Scholarship Credit shall 
not exceed the excess of— 
‘‘(A) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, over 
‘‘(B) the sum of the credits allowable under this subpart 
(other than this subsection and sections 23, 25D, and 30D) 
and section 27 for the taxable year. 
Applicability. 
26 USC 24 note. 
26 USC 24. 
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123 STAT. 314 
PUBLIC LAW 111–5—FEB. 17, 2009 
Any reference in this section or section 24, 25, 26, 25B, 904, 
or 1400C to a credit allowable under this subsection shall 
be treated as a reference to so much of the credit allowable 
under subsection (a) as is attributable to the Hope Scholarship 
Credit. 
‘‘(6) PORTION OF CREDIT MADE REFUNDABLE.—40 percent 
of so much of the credit allowed under subsection (a) as is 
attributable to the Hope Scholarship Credit (determined after 
application of paragraph (4) and without regard to this para-
graph and section 26(a)(2) or paragraph (5), as the case may 
be) shall be treated as a credit allowable under subpart C 
(and not allowed under subsection (a)). The preceding sentence 
shall not apply to any taxpayer for any taxable year if such 
taxpayer is a child to whom subsection (g) of section 1 applies 
for such taxable year. 
‘‘(7) COORDINATION WITH MIDWESTERN DISASTER AREA BENE-
FITS.—In the case of a taxpayer with respect to whom section 
702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 
applies for any taxable year, such taxpayer may elect to waive 
the application of this subsection to such taxpayer for such 
taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 24(b)(3)(B) is amended by inserting ‘‘25A(i),’’ 
after ‘‘23,’’. 
(2) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘25A(i),’’ 
after ‘‘24,’’. 
(3) Section 26(a)(1) is amended by inserting ‘‘25A(i),’’ after 
‘‘24,’’. 
(4) Section 25B(g)(2) is amended by inserting ‘‘25A(i),’’ after 
‘‘23,’’. 
(5) Section 904(i) is amended by inserting ‘‘25A(i),’’ after 
‘‘24,’’. 
(6) Section 1400C(d)(2) is amended by inserting ‘‘25A(i),’’ 
after ‘‘24,’’. 
(7) Section 6211(b)(4)(A) is amended by inserting ‘‘25A by 
reason of subsection (i)(6) thereof,’’ after ‘‘24(d),’’. 
(8) Section 1324(b)(2) of title 31, United States Code, is 
amended by inserting ‘‘25A,’’ before ‘‘35’’. 
(c) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR CODE POSSESSION.—The Secretary of the 
Treasury shall pay to each possession of the United States 
with a mirror code tax system amounts equal to the loss 
to that possession by reason of the application of section 
25A(i)(6) of the Internal Revenue Code of 1986 (as added 
by this section) with respect to taxable years beginning 
in 2009 and 2010. Such amounts shall be determined by 
the Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(B) 
OTHER
POSSESSIONS.—The 
Secretary 
of 
the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the application 
of section 25A(i)(6) of such Code (as so added) for taxable 
years beginning in 2009 and 2010 if a mirror code tax 
Effective dates. 
Effective dates. 
26 USC 25A note. 
26 USC 24. 
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123 STAT. 315 
PUBLIC LAW 111–5—FEB. 17, 2009 
system had been in effect in such possession. The preceding 
sentence shall not apply with respect to any possession 
of the United States unless such possession has a plan, 
which has been approved by the Secretary of the Treasury, 
under which such possession will promptly distribute such 
payments to the residents of such possession. 
(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED 
STATES INCOME TAXES.—Section 25A(i)(6) of such Code (as added 
by this section) shall not apply to a bona fide resident of 
any possession of the United States. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) POSSESSION OF THE UNITED STATES.—For purposes 
of this subsection, the term ‘‘possession of the United 
States’’ includes the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands. 
(B) MIRROR CODE TAX SYSTEM.—For purposes of this 
subsection, the term ‘‘mirror code tax system’’ means, with 
respect to any possession of the United States, the income 
tax system of such possession if the income tax liability 
of the residents of such possession under such system is 
determined by reference to the income tax laws of the 
United States as if such possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For purposes of section 
1324(b)(2) of title 31, United States Code, the payments 
under this subsection shall be treated in the same manner 
as a refund due from the credit allowed under section 
25A of the Internal Revenue Code of 1986 by reason of 
subsection (i)(6) of such section (as added by this section). 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
(e) APPLICATION OF EGTRRA SUNSET.—The amendment made 
by subsection (b)(1) shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 in the same 
manner as the provision of such Act to which such amendment 
relates. 
(f) TREASURY STUDIES REGARDING EDUCATION INCENTIVES.— 
(1) STUDY REGARDING COORDINATION WITH NON-TAX STU-
DENT FINANCIAL ASSISTANCE.—The Secretary of the Treasury 
and the Secretary of Education, or their delegates, shall— 
(A) study how to coordinate the credit allowed under 
section 25A of the Internal Revenue Code of 1986 with 
the Federal Pell Grant program under section 401 of the 
Higher Education Act of 1965 to maximize their effective-
ness at promoting college affordability, and 
(B) examine ways to expedite the delivery of the tax 
credit. 
(2) STUDY REGARDING INCLUSION OF COMMUNITY SERVICE 
REQUIREMENTS.—The Secretary of the Treasury and the Sec-
retary of Education, or their delegates, shall study the feasi-
bility of requiring including community service as a condition 
of taking their tuition and related expenses into account under 
section 25A of the Internal Revenue Code of 1986. 
(3) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Secretary of the Treasury, or the 
Secretary’s delegate, shall report to Congress on the results 
of the studies conducted under this paragraph. 
26 USC 24 note. 
26 USC 24 note. 
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123 STAT. 316 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS 
A QUALIFIED HIGHER EDUCATION EXPENSE FOR SEC-
TION 529 ACCOUNTS IN 2009 AND 2010. 
(a) IN GENERAL.—Section 529(e)(3)(A) is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at the end 
of clause (ii), and by adding at the end the following: 
‘‘(iii) expenses paid or incurred in 2009 or 2010 
for the purchase of any computer technology or equip-
ment (as defined in section 170(e)(6)(F)(i)) or Internet 
access and related services, if such technology, equip-
ment, or services are to be used by the beneficiary 
and the beneficiary’s family during any of the years 
the beneficiary is enrolled at an eligible educational 
institution. 
Clause (iii) shall not include expenses for computer soft-
ware designed for sports, games, or hobbies unless the 
software is predominantly educational in nature.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to expenses paid or incurred after December 31, 2008. 
SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER 
CREDIT; WAIVER OF REQUIREMENT TO REPAY. 
(a) EXTENSION.— 
(1) IN
GENERAL.—Section 36(h) is amended by striking 
‘‘July 1, 2009’’ and inserting ‘‘December 1, 2009’’. 
(2) CONFORMING AMENDMENT.—Section 36(g) is amended 
by striking ‘‘July 1, 2009’’ and inserting ‘‘December 1, 2009’’. 
(b) INCREASE.— 
(1) IN
GENERAL.—Section 36(b) is amended by striking 
‘‘$7,500’’ each place it appears and inserting ‘‘$8,000’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
36(b)(1)(B) 
is 
amended by striking ‘‘$3,750’’ and inserting ‘‘$4,000’’. 
(c) WAIVER OF RECAPTURE.— 
(1) IN GENERAL.—Paragraph (4) of section 36(f) is amended 
by adding at the end the following new subparagraph: 
‘‘(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.— 
In the case of any credit allowed with respect to the pur-
chase of a principal residence after December 31, 2008, 
and before December 1, 2009— 
‘‘(i) paragraph (1) shall not apply, and 
‘‘(ii) paragraph (2) shall apply only if the disposi-
tion or cessation described in paragraph (2) with 
respect to such residence occurs during the 36-month 
period beginning on the date of the purchase of such 
residence by the taxpayer.’’. 
(2) CONFORMING
AMENDMENT.—Subsection (g) of section 
36 is amended by striking ‘‘subsection (c)’’ and inserting ‘‘sub-
sections (c) and (f)(4)(D)’’. 
(d) COORDINATION WITH FIRST-TIME HOMEBUYER CREDIT FOR 
DISTRICT OF COLUMBIA.— 
(1) IN
GENERAL.—Subsection (e) of section 1400C is 
amended by adding at the end the following new paragraph: 
‘‘(4) COORDINATION WITH NATIONAL FIRST-TIME HOMEBUYERS 
CREDIT.—No credit shall be allowed under this section to any 
taxpayer with respect to the purchase of a residence after 
December 31, 2008, and before December 1, 2009, if a credit 
Time period. 
Applicability. 
Time period. 
26 USC 529 note. 
26 USC 529. 
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123 STAT. 317 
PUBLIC LAW 111–5—FEB. 17, 2009 
under section 36 is allowable to such taxpayer (or the taxpayer’s 
spouse) with respect to such purchase.’’. 
(2) CONFORMING AMENDMENT.—Section 36(d) is amended 
by striking paragraph (1). 
(e) REMOVAL OF PROHIBITION ON FINANCING BY MORTGAGE REV-
ENUE BONDS.—Section 36(d), as amended by subsection (c)(2), is 
amended by striking paragraph (2) and by redesignating paragraphs 
(3) and (4) as paragraphs (1) and (2), respectively. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to residences purchased after December 31, 2008. 
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COM-
PENSATION. 
(a) IN GENERAL.—Section 85 of the Internal Revenue Code 
of 1986 (relating to unemployment compensation) is amended by 
adding at the end the following new subsection: 
‘‘(c) SPECIAL RULE FOR 2009.—In the case of any taxable year 
beginning in 2009, gross income shall not include so much of the 
unemployment compensation received by an individual as does not 
exceed $2,400.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008. 
SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND 
EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR 
VEHICLES. 
(a) IN GENERAL.—Subsection (a) of section 164 is amended 
by inserting after paragraph (5) the following new paragraph: 
‘‘(6) Qualified motor vehicle taxes.’’. 
(b) QUALIFIED MOTOR VEHICLE TAXES.—Subsection (b) of sec-
tion 164 is amended by adding at the end the following new para-
graph: 
‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘qualified motor vehicle taxes’ means any State or 
local sales or excise tax imposed on the purchase of a 
qualified motor vehicle. 
‘‘(B) LIMITATION
BASED
ON
VEHICLE
PRICE.—The 
amount of any State or local sales or excise tax imposed 
on the purchase of a qualified motor vehicle taken into 
account under subparagraph (A) shall not exceed the por-
tion of such tax attributable to so much of the purchase 
price as does not exceed $49,500. 
‘‘(C) INCOME LIMITATION.—The amount otherwise taken 
into account under subparagraph (A) (after the application 
of subparagraph (B)) for any taxable year shall be reduced 
(but not below zero) by the amount which bears the same 
ratio to the amount which is so treated as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s modified adjusted gross 
income for such taxable year, over 
‘‘(II) $125,000 ($250,000 in the case of a joint 
return), bears to 
‘‘(ii) $10,000. 
For purposes of the preceding sentence, the term ‘modified 
adjusted gross income’ means the adjusted gross income 
of the taxpayer for the taxable year (determined without 
regard to sections 911, 931, and 933). 
26 USC 85 note. 
26 USC 36 note. 
26 USC 36. 
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123 STAT. 318 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(D) QUALIFIED MOTOR VEHICLE.—For purposes of this 
paragraph— 
‘‘(i) IN
GENERAL.—The term ‘qualified motor 
vehicle’ means— 
‘‘(I) a passenger automobile or light truck 
which is treated as a motor vehicle for purposes 
of title II of the Clean Air Act, the gross vehicle 
weight rating of which is not more than 8,500 
pounds, and the original use of which commences 
with the taxpayer, 
‘‘(II) a motorcycle the gross vehicle weight 
rating of which is not more than 8,500 pounds 
and the original use of which commences with 
the taxpayer, and 
‘‘(III) a motor home the original use of which 
commences with the taxpayer. 
‘‘(ii) OTHER
TERMS.—The terms ‘motorcycle’ and 
‘motor home’ have the meanings given such terms 
under section 571.3 of title 49, Code of Federal Regula-
tions (as in effect on the date of the enactment of 
this paragraph). 
‘‘(E) QUALIFIED MOTOR VEHICLE TAXES NOT INCLUDED 
IN COST OF ACQUIRED PROPERTY.—The last sentence of sub-
section (a) shall not apply to any qualified motor vehicle 
taxes. 
‘‘(F) COORDINATION WITH GENERAL SALES TAX.—This 
paragraph shall not apply in the case of a taxpayer who 
makes an election under paragraph (5) for the taxable 
year. 
‘‘(G) TERMINATION.—This paragraph shall not apply 
to purchases after December 31, 2009.’’. 
(c) DEDUCTION ALLOWED TO NONITEMIZERS.— 
(1) IN GENERAL.—Paragraph (1) of section 63(c) is amended 
by striking ‘‘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) the motor vehicle sales tax deduction.’’. 
(2) DEFINITION.—Section 63(c) is amended by adding at 
the end the following new paragraph: 
‘‘(9) MOTOR VEHICLE SALES TAX DEDUCTION.—For purposes 
of paragraph (1), the term ‘motor vehicle sales tax deduction’ 
means the amount allowable as a deduction under section 
164(a)(6). Such term shall not include any amount taken into 
account under section 62(a).’’. 
(d) TREATMENT OF DEDUCTION UNDER ALTERNATIVE MINIMUM 
TAX.—The last sentence of section 56(b)(1)(E) is amended by 
striking ‘‘section 63(c)(1)(D)’’ and inserting ‘‘subparagraphs (D) and 
(E) of section 63(c)(1)’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to purchases on or after the date of the enactment 
of this Act in taxable years ending after such date. 
26 USC 56 note. 
26 USC 63. 
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123 STAT. 319 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
NONREFUNDABLE PERSONAL CREDITS. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) (relating to 
special rule for taxable years 2000 through 2008) is amended— 
(1) by striking ‘‘or 2008’’ and inserting ‘‘2008, or 2009’’, 
and 
(2) by striking ‘‘2008’’ in the heading thereof and inserting 
‘‘2009’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
EXEMPTION AMOUNT. 
(a) IN GENERAL.—Paragraph (1) of section 55(d) (relating to 
exemption amount) is amended— 
(1) by striking ‘‘($69,950 in the case of taxable years begin-
ning in 2008)’’ in subparagraph (A) and inserting ‘‘($70,950 
in the case of taxable years beginning in 2009)’’, and 
(2) by striking ‘‘($46,200 in the case of taxable years begin-
ning in 2008)’’ in subparagraph (B) and inserting ‘‘($46,700 
in the case of taxable years beginning in 2009)’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 
CERTAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—Subsection (d) of section 45 is amended— 
(1) by striking ‘‘2010’’ in paragraph (1) and inserting ‘‘2013’’, 
(2) by striking ‘‘2011’’ each place it appears in paragraphs 
(2), (3), (4), (6), (7) and (9) and inserting ‘‘2014’’, and 
(3) by striking ‘‘2012’’ in paragraph (11)(B) and inserting 
‘‘2014’’. 
(b) TECHNICAL AMENDMENT.—Paragraph (5) of section 45(d) 
is amended by striking ‘‘and before’’ and all that follows and 
inserting ‘‘ and before October 3, 2008.’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall apply to property placed in service after the date 
of the enactment of this Act. 
(2) TECHNICAL
AMENDMENT.—The amendment made by 
subsection (b) shall take effect as if included in section 102 
of the Energy Improvement and Extension Act of 2008. 
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUC-
TION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 48 is amended by 
adding at the end the following new paragraph: 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY 
PROPERTY.— 
‘‘(A) IN GENERAL.—In the case of any qualified property 
which is part of a qualified investment credit facility— 
26 USC 45 note. 
26 USC 55 note. 
26 USC 26 note. 
26 USC 26. 
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123 STAT. 320 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(i) such property shall be treated as energy prop-
erty for purposes of this section, and 
‘‘(ii) the energy percentage with respect to such 
property shall be 30 percent. 
‘‘(B) DENIAL OF PRODUCTION CREDIT.—No credit shall 
be allowed under section 45 for any taxable year with 
respect to any qualified investment credit facility. 
‘‘(C) QUALIFIED
INVESTMENT
CREDIT
FACILITY.—For 
purposes of this paragraph, the term ‘qualified investment 
credit facility’ means any of the following facilities if no 
credit has been allowed under section 45 with respect to 
such facility and the taxpayer makes an irrevocable election 
to have this paragraph apply to such facility: 
‘‘(i) 
WIND
FACILITIES.—Any 
qualified 
facility 
(within the meaning of section 45) described in para-
graph (1) of section 45(d) if such facility is placed 
in service in 2009, 2010, 2011, or 2012. 
‘‘(ii) OTHER
FACILITIES.—Any qualified facility 
(within the meaning of section 45) described in para-
graph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) 
if such facility is placed in service in 2009, 2010, 2011, 
2012, or 2013. 
‘‘(D) QUALIFIED PROPERTY.—For purposes of this para-
graph, the term ‘qualified property’ means property— 
‘‘(i) 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 investment credit facility, and 
‘‘(ii) with respect to which depreciation (or 
amortization in lieu of depreciation) is allowable.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to facilities placed in service after December 31, 2008. 
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEW-
ABLE ENERGY PROPERTY. 
(a) REPEAL OF LIMITATION ON CREDIT FOR QUALIFIED SMALL 
WIND
ENERGY
PROPERTY.—Paragraph (4) of section 48(c) is 
amended by striking subparagraph (B) and by redesignating sub-
paragraphs (C) and (D) as subparagraphs (B) and (C). 
(b) REPEAL OF LIMITATION ON PROPERTY FINANCED BY SUB-
SIDIZED ENERGY FINANCING.— 
(1) IN GENERAL.—Section 48(a)(4) is amended by adding 
at the end the following new subparagraph: 
‘‘(D) TERMINATION.—This paragraph shall not apply 
to periods after December 31, 2008, under rules similar 
to the rules of section 48(m) (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation 
Act of 1990).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 25C(e)(1) is amended by striking ‘‘(8), and 
(9)’’ and inserting ‘‘and (8)’’. 
(B) Section 25D(e) is amended by striking paragraph 
(9). 
26 USC 48. 
26 USC 48 note. 
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123 STAT. 321 
PUBLIC LAW 111–5—FEB. 17, 2009 
(C) Section 48A(b)(2) is amended by inserting ‘‘(without 
regard to subparagraph (D) thereof)’’ after ‘‘section 
48(a)(4)’’. 
(D) Section 48B(b)(2) is amended by inserting ‘‘(without 
regard to subparagraph (D) thereof)’’ after ‘‘section 
48(a)(4)’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendment made by this section shall apply to periods after 
December 31, 2008, under rules similar to the rules of section 
48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
(2) CONFORMING AMENDMENTS.—The amendments made by 
subparagraphs (A) and (B) of subsection (b)(2) shall apply to 
taxable years beginning after December 31, 2008. 
SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS. 
Section 48 is amended by adding at the end the following 
new subsection: 
‘‘(d) COORDINATION WITH DEPARTMENT OF TREASURY GRANTS.— 
In the case of any property with respect to which the Secretary 
makes a grant under section 1603 of the American Recovery and 
Reinvestment Tax Act of 2009— 
‘‘(1) DENIAL OF PRODUCTION AND INVESTMENT CREDITS.— 
No credit shall be determined under this section or section 
45 with respect to such property for the taxable year in which 
such grant is made or any subsequent taxable year. 
‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS EXPENDITURES 
MADE BEFORE GRANT.—If a credit was determined under this 
section with respect to such property for any taxable year 
ending before such grant is made— 
‘‘(A) the tax imposed under subtitle A on the taxpayer 
for the taxable year in which such grant is made shall 
be increased by so much of such credit as was allowed 
under section 38, 
‘‘(B) the general business carryforwards under section 
39 shall be adjusted so as to recapture the portion of 
such credit which was not so allowed, and 
‘‘(C) the amount of such grant shall be determined 
without regard to any reduction in the basis of such prop-
erty by reason of such credit. 
‘‘(3) TREATMENT OF GRANTS.—Any such grant shall— 
‘‘(A) not be includible in the gross income of the tax-
payer, but 
‘‘(B) shall be taken into account in determining the 
basis of the property to which such grant relates, except 
that the basis of such property shall be reduced under 
section 50(c) in the same manner as a credit allowed under 
subsection (a).’’. 
Applicability. 
26 USC 25C. 
26 USC 48A. 
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123 STAT. 322 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART II—INCREASED ALLOCATIONS OF NEW 
CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN 
RENEWABLE ENERGY BONDS. 
Subsection (c) of section 54C is amended by adding at the 
end the following new paragraph: 
‘‘(4) ADDITIONAL
LIMITATION.—The national new clean 
renewable energy bond limitation shall be increased by 
$1,600,000,000. Such increase shall be allocated by the Sec-
retary consistent with the rules of paragraphs (2) and (3).’’. 
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED 
ENERGY CONSERVATION BONDS. 
(a) IN
GENERAL.—Section 54D(d) is amended by striking 
‘‘$800,000,000’’ and inserting ‘‘$3,200,000,000’’. 
(b) CLARIFICATION WITH RESPECT TO GREEN COMMUNITY PRO-
GRAMS.— 
(1) IN
GENERAL.—Clause (ii) of section 54D(f)(1)(A) is 
amended by inserting ‘‘(including the use of loans, grants, or 
other repayment mechanisms to implement such programs)’’ 
after ‘‘green community programs’’. 
(2) SPECIAL RULES FOR BONDS FOR IMPLEMENTING GREEN 
COMMUNITY
PROGRAMS.—Subsection (e) of section 54D is 
amended by adding at the end the following new paragraph: 
‘‘(4) SPECIAL
RULES
FOR
BONDS
TO
IMPLEMENT
GREEN 
COMMUNITY PROGRAMS.—In the case of any bond issued for 
the purpose of providing loans, grants, or other repayment 
mechanisms for capital expenditures to implement green 
community programs, such bond shall not be treated as a 
private activity bond for purposes of paragraph (3).’’. 
PART III—ENERGY CONSERVATION 
INCENTIVES 
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSI-
NESS ENERGY PROPERTY. 
(a) IN GENERAL.—Section 25C is amended by striking sub-
sections (a) and (b) and inserting the following new subsections: 
‘‘(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 during 
such taxable year for qualified energy efficiency improvements, 
and 
‘‘(2) the amount of the residential energy property expendi-
tures paid or incurred by the taxpayer during such taxable 
year. 
‘‘(b) LIMITATION.—The aggregate amount of the credits allowed 
under this section for taxable years beginning in 2009 and 2010 
with respect to any taxpayer shall not exceed $1,500.’’. 
(b) MODIFICATIONS
OF
STANDARDS
FOR
ENERGY-EFFICIENT 
BUILDING PROPERTY.— 
26 USC 54C. 
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123 STAT. 323 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) ELECTRIC HEAT PUMPS.—Subparagraph (B) of section 
25C(d)(3) is amended to read as follows: 
‘‘(B) an electric heat pump which achieves the highest 
efficiency tier established by the Consortium for Energy 
Efficiency, as in effect on January 1, 2009.’’. 
(2) CENTRAL AIR CONDITIONERS.—Subparagraph (C) of sec-
tion 25C(d)(3) is amended by striking ‘‘2006’’ and inserting 
‘‘2009’’. 
(3) 
WATER
HEATERS.—Subparagraph 
(D) 
of 
section 
25C(d)(3) is amended to read as follows: 
‘‘(D) a natural gas, propane, or oil water heater which 
has either an energy factor of at least 0.82 or a thermal 
efficiency of at least 90 percent.’’. 
(4) WOOD STOVES.—Subparagraph (E) of section 25C(d)(3) 
is amended by inserting ‘‘, as measured using a lower heating 
value’’ after ‘‘75 percent’’. 
(c) MODIFICATIONS OF STANDARDS FOR OIL FURNACES AND HOT 
WATER BOILERS.— 
(1) IN
GENERAL.—Paragraph (4) of section 25C(d) is 
amended to read as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND OIL FURNACES 
AND HOT WATER BOILERS.— 
‘‘(A) QUALIFIED
NATURAL
GAS
FURNACE.—The term 
‘qualified natural gas furnace’ means any natural gas fur-
nace which achieves an annual fuel utilization efficiency 
rate of not less than 95. 
‘‘(B) QUALIFIED
NATURAL
GAS
HOT
WATER
BOILER.— 
The term ‘qualified natural gas hot water boiler’ means 
any natural gas hot water boiler which achieves an annual 
fuel utilization efficiency rate of not less than 90. 
‘‘(C) QUALIFIED PROPANE FURNACE.—The term ‘quali-
fied propane furnace’ means any propane furnace which 
achieves an annual fuel utilization efficiency rate of not 
less than 95. 
‘‘(D) QUALIFIED
PROPANE
HOT
WATER
BOILER.—The 
term ‘qualified propane hot water boiler’ means any pro-
pane hot water boiler which achieves an annual fuel utiliza-
tion efficiency rate of not less than 90. 
‘‘(E) QUALIFIED OIL FURNACES.—The term ‘qualified oil 
furnace’ means any oil furnace which achieves an annual 
fuel utilization efficiency rate of not less than 90. 
‘‘(F) QUALIFIED
OIL
HOT
WATER
BOILER.—The term 
‘qualified oil hot water boiler’ means any oil hot water 
boiler which achieves an annual fuel utilization efficiency 
rate of not less than 90.’’. 
(2) CONFORMING
AMENDMENT.—Clause (ii) of section 
25C(d)(2)(A) is amended to read as follows: 
‘‘(ii) any qualified natural gas furnace, qualified 
propane furnace, qualified oil furnace, qualified natural 
gas hot water boiler, qualified propane hot water boiler, 
or qualified oil hot water boiler, or’’. 
(d) MODIFICATIONS OF STANDARDS FOR QUALIFIED ENERGY EFFI-
CIENCY IMPROVEMENTS.— 
(1) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND 
SKYLIGHTS.—Subsection (c) of section 25C is amended by adding 
at the end the following new paragraph: 
26 USC 25C. 
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123 STAT. 324 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(4) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND 
SKYLIGHTS.—Such term shall not include any component 
described in subparagraph (B) or (C) of paragraph (2) unless 
such component is equal to or below a U factor of 0.30 and 
SHGC of 0.30.’’. 
(2) ADDITIONAL QUALIFICATION FOR INSULATION.—Subpara-
graph (A) of section 25C(c)(2) is amended by inserting ‘‘and 
meets the prescriptive criteria for such material or system 
established by the 2009 International Energy Conservation 
Code, as such Code (including supplements) is in effect on 
the date of the enactment of the American Recovery and 
Reinvestment Tax Act of 2009’’ after ‘‘such dwelling unit’’. 
(e) EXTENSION.—Section 25C(g)(2) is amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 2010’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after December 31, 2008. 
(2) EFFICIENCY
STANDARDS.—The amendments made by 
paragraphs (1), (2), and (3) of subsection (b) and subsections 
(c) and (d) shall apply to property placed in service after the 
date of the enactment of this Act. 
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFI-
CIENT PROPERTY. 
(a) REMOVAL
OF CREDIT LIMITATION
FOR PROPERTY PLACED 
IN SERVICE.— 
(1) IN
GENERAL.—Paragraph (1) of section 25D(b) is 
amended to read as follows: 
‘‘(1) MAXIMUM
CREDIT
FOR
FUEL
CELLS.—In the case of 
any qualified fuel cell property expenditure, the credit allowed 
under subsection (a) (determined without regard to subsection 
(c)) for any taxable year shall not exceed $500 with respect 
to each half kilowatt of capacity of the qualified fuel cell prop-
erty (as defined in section 48(c)(1)) to which such expenditure 
relates.’’. 
(2) CONFORMING
AMENDMENT.—Paragraph (4) of section 
25D(e) is amended— 
(A) by striking all that precedes subparagraph (B) and 
inserting the following: 
‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS IN CASE OF JOINT 
OCCUPANCY.—In the case of any dwelling unit with respect 
to which qualified fuel cell property expenditures are made 
and which is jointly occupied and used during any calendar 
year as a residence by two or more individuals, the following 
rules shall apply: 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL CELLS.—The 
maximum amount of such expenditures which may be 
taken into account under subsection (a) by all such individ-
uals with respect to such dwelling unit during such cal-
endar year shall be $1,667 in the case of each half kilowatt 
of capacity of qualified fuel cell property (as defined in 
section 48(c)(1)) with respect to which such expenditures 
relate.’’, and 
(B) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
26 USC 25D 
note. 
Regulations. 
Applicability. 
Applicability. 
26 USC 25C note. 
26 USC 25C. 
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123 STAT. 325 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL 
VEHICLE REFUELING PROPERTY. 
(a) IN GENERAL.—Section 30C(e) is amended by adding at the 
end the following new paragraph: 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN SERVICE DURING 
2009 AND 2010.—In the case of property placed in service in 
taxable years beginning after December 31, 2008, and before 
January 1, 2011— 
‘‘(A) in the case of any such property which does not 
relate to hydrogen— 
‘‘(i) subsection (a) shall be applied by substituting 
‘50 percent’ for ‘30 percent’, 
‘‘(ii) subsection (b)(1) shall be applied by sub-
stituting ‘$50,000’ for ‘$30,000’, and 
‘‘(iii) subsection (b)(2) shall be applied by sub-
stituting ‘$2,000’ for ‘$1,000’, and 
‘‘(B) in the case of any such property which relates 
to hydrogen, subsection (b)(1) shall be applied by sub-
stituting ‘$200,000’ for ‘$30,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008. 
PART IV—MODIFICATION OF CREDIT FOR 
CARBON DIOXIDE SEQUESTRATION 
SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON 
DIOXIDE USED AS A TERTIARY INJECTANT. 
(a) IN GENERAL.—Section 45Q(a)(2) is amended by striking 
‘‘and’’ at the end of subparagraph (A), by striking the period at 
the end of subparagraph (B) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(C) disposed of by the taxpayer in secure geological 
storage.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 45Q(d)(2) is amended— 
(A) by striking ‘‘subsection (a)(1)(B)’’ and inserting 
‘‘paragraph (1)(B) or (2)(C) of subsection (a)’’, 
(B) by striking ‘‘and unminable coal seems’’ and 
inserting ‘‘, oil and gas reservoirs, and unminable coal 
seams’’, and 
(C) by inserting ‘‘the Secretary of Energy, and the 
Secretary of the Interior,’’ after ‘‘Environmental Protection 
Agency’’. 
(2) Section 45Q(a)(1)(B) is amended by inserting ‘‘and not 
used by the taxpayer as described in paragraph (2)(B)’’ after 
‘‘storage’’. 
(3) Section 45Q(e) is amended by striking ‘‘captured and 
disposed of or used as a tertiary injectant’’ and inserting ‘‘taken 
into account in accordance with subsection (a)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to carbon dioxide captured after the date of the enact-
ment of this Act. 
26 USC 45Q 
note. 
26 USC 30C note. 
Applicability. 
26 USC 30C. 
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123 STAT. 326 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART V—PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES 
SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30D is amended to read as follows: 
‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES. 
‘‘(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 the sum of the credit amounts determined under 
subsection (b) with respect to each new qualified plug-in electric 
drive motor vehicle placed in service by the taxpayer during the 
taxable year. 
‘‘(b) PER VEHICLE DOLLAR LIMITATION.— 
‘‘(1) IN GENERAL.—The amount determined under this sub-
section with respect to any new qualified plug-in electric drive 
motor vehicle is the sum of the amounts determined under 
paragraphs (2) and (3) with respect to such vehicle. 
‘‘(2) BASE AMOUNT.—The amount determined under this 
paragraph is $2,500. 
‘‘(3) BATTERY CAPACITY.—In the case of a vehicle which 
draws propulsion energy from a battery with not less than 
5 kilowatt hours of capacity, the amount determined under 
this paragraph is $417, plus $417 for each kilowatt hour of 
capacity in excess of 5 kilowatt hours. The amount determined 
under this paragraph shall not exceed $5,000. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSI-
NESS 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 property of 
a character subject to an allowance for depreciation shall be 
treated as a credit listed in section 38(b) for such taxable 
year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (deter-
mined after application of paragraph (1)) shall be treated 
as a credit allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the 
case of a taxable year to which section 26(a)(2) does not 
apply, the credit allowed under subsection (a) for any tax-
able year (determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, 
over 
‘‘(ii) the sum of the credits allowable under subpart 
A (other than this section and sections 23 and 25D) 
and section 27 for the taxable year. 
‘‘(d) 
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— 
26 USC 30D. 
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123 STAT. 327 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) the original use of which commences with the 
taxpayer, 
‘‘(B) which is acquired for use or lease by the taxpayer 
and not for resale, 
‘‘(C) which is made by a 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, and 
‘‘(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 4 kilowatt 
hours, and 
‘‘(ii) is capable of being recharged from an external 
source of electricity. 
‘‘(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) MANUFACTURER.—The term ‘manufacturer’ has the 
meaning given such term in regulations prescribed by the 
Administrator of the Environmental Protection Agency for pur-
poses of the administration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.). 
‘‘(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. 
‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED PLUG-IN ELEC-
TRIC DRIVE MOTOR VEHICLES ELIGIBLE FOR CREDIT.— 
‘‘(1) IN GENERAL.—In the case of a new qualified plug- 
in electric drive motor vehicle sold during the phaseout period, 
only the applicable percentage of the credit otherwise allowable 
under subsection (a) shall be allowed. 
‘‘(2) PHASEOUT PERIOD.—For purposes of this subsection, 
the phaseout period is the period beginning with the second 
calendar quarter following the calendar quarter which includes 
the first date on which the number of new qualified plug- 
in electric drive motor vehicles manufactured by the manufac-
turer of the vehicle referred to in paragraph (1) sold for use 
in the United States after December 31, 2009, is at least 
200,000. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes of paragraph 
(1), the applicable percentage is— 
‘‘(A) 50 percent for the first 2 calendar quarters of 
the phaseout period, 
‘‘(B) 25 percent for the 3d and 4th calendar quarters 
of the phaseout period, and 
‘‘(C) 0 percent for each calendar quarter thereafter. 
‘‘(4) CONTROLLED GROUPS.—Rules similar to the rules of 
section 30B(f)(4) shall apply for purposes of this subsection. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this subtitle, the 
basis of any property for which a credit is allowable under 
Regulations. 
Applicability. 
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123 STAT. 328 
PUBLIC LAW 111–5—FEB. 17, 2009 
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 new qualified 
plug-in electric drive motor vehicle shall be reduced by the 
amount of credit allowed under subsection (a) for such vehicle. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY.—In the case 
of a vehicle the use of which is described in paragraph (3) 
or (4) of section 50(b) and which is not subject to a lease, 
the person who sold such vehicle to the person or entity using 
such vehicle shall be treated as the taxpayer that placed such 
vehicle in service, but only if such person clearly discloses 
to such person or entity in a document the amount of any 
credit allowable under subsection (a) with respect to such 
vehicle (determined without regard to subsection (c)). 
‘‘(4) PROPERTY USED OUTSIDE UNITED STATES NOT QUALI-
FIED.—No credit shall be allowable under subsection (a) with 
respect to any property referred to in section 50(b)(1). 
‘‘(5) RECAPTURE.—The Secretary shall, by regulations, pro-
vide 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. 
‘‘(6) 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. 
‘‘(7) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE 
SAFETY STANDARDS.—A motor 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.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 30B(d)(3)(D) is amended by striking ‘‘subsection 
(d) thereof’’ and inserting ‘‘subsection (c) thereof’’. 
(2) Section 38(b)(35) is amended by striking ‘‘30D(d)(1)’’ 
and inserting ‘‘30D(c)(1)’’. 
(3) Section 1016(a)(25) is amended by striking ‘‘section 
30D(e)(4)’’ and inserting ‘‘section 30D(f)(1)’’. 
(4) Section 6501(m) is amended by striking ‘‘section 
30D(e)(9)’’ and inserting ‘‘section 30D(e)(4)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after December 31, 2009. 
SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES. 
(a) IN GENERAL.—Section 30 is amended to read as follows: 
‘‘SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES. 
‘‘(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 10 percent of the cost of any qualified plug- 
in electric vehicle placed in service by the taxpayer during the 
taxable year. 
26 USC 30B note. 
26 USC 30B. 
Regulations. 
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123 STAT. 329 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(b) PER VEHICLE DOLLAR LIMITATION.—The amount of the 
credit allowed under subsection (a) with respect to any vehicle 
shall not exceed $2,500. 
‘‘(c) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSI-
NESS 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 property of 
a character subject to an allowance for depreciation shall be 
treated as a credit listed in section 38(b) for such taxable 
year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (deter-
mined after application of paragraph (1)) shall be treated 
as a credit allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the 
case of a taxable year to which section 26(a)(2) does not 
apply, the credit allowed under subsection (a) for any tax-
able year (determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, 
over 
‘‘(ii) the sum of the credits allowable under subpart 
A (other than this section and sections 23, 25D, and 
30D) and section 27 for the taxable year. 
‘‘(d) QUALIFIED PLUG-IN ELECTRIC VEHICLE.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified plug-in electric 
vehicle’ means a specified vehicle— 
‘‘(A) the original use of which commences with the 
taxpayer, 
‘‘(B) which is acquired for use or lease by the taxpayer 
and not for resale, 
‘‘(C) which is made by a manufacturer, 
‘‘(D) which is manufactured primarily for use on public 
streets, roads, and highways, 
‘‘(E) which has a gross vehicle weight rating of less 
than 14,000 pounds, and 
‘‘(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 4 kilowatt 
hours (2.5 kilowatt hours in the case of a vehicle with 
2 or 3 wheels), and 
‘‘(ii) is capable of being recharged from an external 
source of electricity. 
‘‘(2) SPECIFIED VEHICLE.—The term ‘specified vehicle’ means 
any vehicle which— 
‘‘(A) is a low speed vehicle within the meaning of 
section 571.3 of title 49, Code of Federal Regulations (as 
in effect on the date of the enactment of the American 
Recovery and Reinvestment Tax Act of 2009), or 
‘‘(B) has 2 or 3 wheels. 
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123 STAT. 330 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(3) MANUFACTURER.—The term ‘manufacturer’ has the 
meaning given such term in regulations prescribed by the 
Administrator of the Environmental Protection Agency for pur-
poses of the administration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.). 
‘‘(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. 
‘‘(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 new qualified 
plug-in electric drive motor vehicle shall be reduced by the 
amount of credit allowable under subsection (a) for such vehicle. 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY.—In the case 
of a vehicle the use of which is described in paragraph (3) 
or (4) of section 50(b) and which is not subject to a lease, 
the person who sold such vehicle to the person or entity using 
such vehicle shall be treated as the taxpayer that placed such 
vehicle in service, but only if such person clearly discloses 
to such person or entity in a document the amount of any 
credit allowable under subsection (a) with respect to such 
vehicle (determined without regard to subsection (c)). 
‘‘(4) PROPERTY USED OUTSIDE UNITED STATES NOT QUALI-
FIED.—No credit shall be allowable under subsection (a) with 
respect to any property referred to in section 50(b)(1). 
‘‘(5) RECAPTURE.—The Secretary shall, by regulations, pro-
vide 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. 
‘‘(6) 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. 
‘‘(f) TERMINATION.—This section shall not apply to any vehicle 
acquired after December 31, 2011.’’. 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Section 24(b)(3)(B) is amended by inserting ‘‘30,’’ 
after ‘‘25D,’’. 
(B) Section 25(e)(1)(C)(ii) is amended by inserting ‘‘30,’’ 
after ‘‘25D,’’. 
(C) Section 25B(g)(2) is amended by inserting ‘‘30,’’ after 
‘‘25D,’’. 
(D) Section 26(a)(1) is amended by inserting ‘‘30,’’ after 
‘‘25D,’’. 
(E) Section 904(i) is amended by striking ‘‘and 25B’’ and 
inserting ‘‘25B, 30, and 30D’’. 
(F) Section 1400C(d)(2) is amended by striking ‘‘and 25D’’ 
and inserting ‘‘25D, and 30’’. 
(2) Paragraph (1) of section 30B(h) is amended to read 
as follows: 
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehicle’ means any 
vehicle which is manufactured primarily for use on public 
26 USC 24. 
Regulations. 
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123 STAT. 331 
PUBLIC LAW 111–5—FEB. 17, 2009 
streets, roads, and highways (not including a vehicle operated 
exclusively on a rail or rails) and which has at least 4 wheels.’’. 
(3) Section 30C(d)(2)(A) is amended by striking ‘‘, 30,’’. 
(4)(A) Section 53(d)(1)(B) is amended by striking clause 
(iii) and redesignating clause (iv) as clause (iii). 
(B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesig-
nated, is amended by striking ‘‘increased in the manner pro-
vided in clause (iii)’’. 
(5) Section 55(c)(3) is amended by striking ‘‘30(b)(3),’’. 
(6) Section 1016(a)(25) is amended by striking ‘‘section 
30(d)(1)’’ and inserting ‘‘section 30(e)(1)’’. 
(7) Section 6501(m) is amended by striking ‘‘section 
30(d)(4)’’ and inserting ‘‘section 30(e)(6)’’. 
(8) The item in the table of sections for subpart B of 
part IV of subchapter A of chapter 1 is amended to read 
as follows: 
‘‘Sec. 30. Certain plug-in electric vehicles.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after the date of the enactment 
of this Act. 
(d) TRANSITIONAL RULE.—In the case of a vehicle acquired 
after the date of the enactment of this Act and before January 
1, 2010, no credit shall be allowed under section 30 of the Internal 
Revenue Code of 1986, as added by this section, if credit is allowable 
under section 30D of such Code with respect to such vehicle. 
(e) APPLICATION OF EGTRRA SUNSET.—The amendment made 
by subsection (b)(1)(A) shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 in the same 
manner as the provision of such Act to which such amendment 
relates. 
SEC. 1143. CONVERSION KITS. 
(a) IN GENERAL.—Section 30B (relating to alternative motor 
vehicle credit) is amended by redesignating subsections (i) and 
(j) as subsections (j) and (k), respectively, and by inserting after 
subsection (h) the following new subsection: 
‘‘(i) PLUG-IN CONVERSION CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), the plug- 
in conversion credit determined under this subsection with 
respect to any motor vehicle which is converted to a qualified 
plug-in electric drive motor vehicle is 10 percent of so much 
of the cost of the converting such vehicle as does not exceed 
$40,000. 
‘‘(2) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE.— 
For purposes of this subsection, the term ‘qualified plug-in 
electric drive motor vehicle’ means any new qualified plug- 
in electric drive motor vehicle (as defined in section 30D, deter-
mined without regard to whether such vehicle is made by 
a manufacturer or whether the original use of such vehicle 
commences with the taxpayer). 
‘‘(3) CREDIT ALLOWED IN ADDITION TO OTHER CREDITS.— 
The credit allowed under this subsection shall be allowed with 
respect to a motor vehicle notwithstanding whether a credit 
has been allowed with respect to such motor vehicle under 
this section (other than this subsection) in any preceding tax-
able year. 
26 USC 24 note. 
Time period. 
26 USC 30 note. 
26 USC 24 note. 
26 USC 30C. 
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123 STAT. 332 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(4) TERMINATION.—This subsection shall not apply to 
conversions made after December 31, 2011.’’. 
(b) CREDIT TREATED AS PART OF ALTERNATIVE MOTOR VEHICLE 
CREDIT.—Section 30B(a) is amended by striking ‘‘and’’ at the end 
of paragraph (3), by striking the period at the end of paragraph 
(4) and inserting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the plug-in conversion credit determined under sub-
section (i).’’. 
(c) NO RECAPTURE FOR VEHICLES CONVERTED TO QUALIFIED 
PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.—Paragraph (8) of sec-
tion 30B(h) is amended by adding at the end the following: ‘‘, 
except that no benefit shall be recaptured if such property ceases 
to be eligible for such credit by reason of conversion to a qualified 
plug-in electric drive motor vehicle.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act. 
SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT 
AS A PERSONAL CREDIT ALLOWED AGAINST AMT. 
(a) IN GENERAL.—Paragraph (2) of section 30B(g) is amended 
to read as follows: 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—For purposes of this title, the credit 
allowed under subsection (a) for any taxable year (deter-
mined after application of paragraph (1)) shall be treated 
as a credit allowable under subpart A for such taxable 
year. 
‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.—In the 
case of a taxable year to which section 26(a)(2) does not 
apply, the credit allowed under subsection (a) for any tax-
able year (determined after application of paragraph (1)) 
shall not exceed the excess of— 
‘‘(i) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, 
over 
‘‘(ii) the sum of the credits allowable under subpart 
A (other than this section and sections 23, 25D, 30, 
and 30D) and section 27 for the taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Section 24(b)(3)(B), as amended by this Act, is 
amended by inserting ‘‘30B,’’ after ‘‘30,’’. 
(B) Section 25(e)(1)(C)(ii), as amended by this Act, is 
amended by inserting ‘‘30B,’’ after ‘‘30,’’. 
(C) Section 25B(g)(2), as amended by this Act, is amended 
by inserting ‘‘30B,’’ after ‘‘30,’’. 
(D) Section 26(a)(1), as amended by this Act, is amended 
by inserting ‘‘30B,’’ after ‘‘30,’’. 
(E) Section 904(i), as amended by this Act, is amended 
by inserting ‘‘30B,’’ after ‘‘30’’. 
(F) Section 1400C(d)(2), as amended by this Act, is amended 
by striking ‘‘and 30’’ and inserting ‘‘30, and 30B’’. 
(2) Section 30C(d)(2)(A), as amended by this Act, is 
amended by striking ‘‘sections 27 and 30B’’ and inserting ‘‘sec-
tion 27’’. 
(3) Section 55(c)(3) is amended by striking ‘‘30B(g)(2),’’. 
26 USC 30B note. 
26 USC 30B. 
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123 STAT. 333 
PUBLIC LAW 111–5—FEB. 17, 2009 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
(d) APPLICATION OF EGTRRA SUNSET.—The amendment made 
by subsection (b)(1)(A) shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 in the same 
manner as the provision of such Act to which such amendment 
relates. 
PART VI—PARITY FOR TRANSPORTATION 
FRINGE BENEFITS 
SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT 
BENEFITS AND TRANSIT PASSES. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) is amended 
by adding at the end the following flush sentence: 
‘‘In the case of any month beginning on or after the date 
of the enactment of this sentence and before January 1, 2011, 
subparagraph (A) shall be applied as if the dollar amount 
therein were the same as the dollar amount in effect for such 
month under subparagraph (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to months beginning on or after the date of the enact-
ment of this section. 
Subtitle C—Tax Incentives for Business 
PART I—TEMPORARY INVESTMENT 
INCENTIVES 
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED 
DURING 2009. 
(a) EXTENSION OF SPECIAL ALLOWANCE.— 
(1) IN
GENERAL.—Paragraph (2) of section 168(k) is 
amended— 
(A) by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’, and 
(B) by striking ‘‘January 1, 2009’’ each place it appears 
and inserting ‘‘January 1, 2010’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for subsection (k) of section 168 is 
amended by striking ‘‘JANUARY 1, 2009’’ and inserting 
‘‘JANUARY 1, 2010’’. 
(B) The heading for clause (ii) of section 168(k)(2)(B) 
is amended by striking ‘‘PRE-JANUARY 1, 2009’’ and inserting 
‘‘PRE-JANUARY 1, 2010’’. 
(C) Subparagraph (B) of section 168(l)(5) is amended 
by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 
2010’’. 
(D) Subparagraph (C) of section 168(n)(2) is amended 
by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 
2010’’. 
(E) Subparagraph (B) of section 1400N(d)(3) is 
amended by striking ‘‘January 1, 2009’’ and inserting 
‘‘January 1, 2010’’. 
(3) TECHNICAL AMENDMENTS.— 
(A) Subparagraph (D) of section 168(k)(4) is amended— 
26 USC 132 note. 
Applicability. 
26 USC 132. 
26 USC 24 note. 
26 USC 24 note. 
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123 STAT. 334 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) by striking ‘‘and’’ at the end of clause (i), 
(ii) by redesignating clause (ii) as clause (iii), and 
(iii) by inserting after clause (i) the following new 
clause: 
‘‘(ii) ‘April 1, 2008’ shall be substituted for ‘January 
1, 2008’ in subparagraph (A)(iii)(I) thereof, and’’. 
(B) Subparagraph (A) of section 6211(b)(4) is amended 
by inserting ‘‘168(k)(4),’’ after ‘‘53(e),’’. 
(b) EXTENSION
OF ELECTION
TO ACCELERATE
THE AMT
AND 
RESEARCH CREDITS IN LIEU OF BONUS DEPRECIATION.— 
(1) IN GENERAL.—Section 168(k)(4) (relating to election to 
accelerate the AMT and research credits in lieu of bonus depre-
ciation) is amended— 
(A) by striking ‘‘2009’’ and inserting ‘‘2010’’in subpara-
graph (D)(iii) (as redesignated by subsection (a)(3)), and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(H) SPECIAL RULES FOR EXTENSION PROPERTY.— 
‘‘(i) TAXPAYERS PREVIOUSLY ELECTING ACCELERA-
TION.—In the case of a taxpayer who made the election 
under subparagraph (A) for its first taxable year ending 
after March 31, 2008— 
‘‘(I) the taxpayer may elect not to have this 
paragraph apply to extension property, but 
‘‘(II) if the taxpayer does not make the election 
under subclause (I), in applying this paragraph 
to the taxpayer a separate bonus depreciation 
amount, 
maximum 
amount, 
and 
maximum 
increase amount shall be computed and applied 
to eligible qualified property which is extension 
property and to eligible qualified property which 
is not extension property. 
‘‘(ii) TAXPAYERS NOT PREVIOUSLY ELECTING ACCEL-
ERATION.—In the case of a taxpayer who did not make 
the election under subparagraph (A) for its first taxable 
year ending after March 31, 2008— 
‘‘(I) the taxpayer may elect to have this para-
graph apply to its first taxable year ending after 
December 31, 2008, and each subsequent taxable 
year, and 
‘‘(II) if the taxpayer makes the election under 
subclause (I), this paragraph shall only apply to 
eligible qualified property which is extension prop-
erty. 
‘‘(iii) EXTENSION PROPERTY.—For purposes of this 
subparagraph, the term ‘extension property’ means 
property which is eligible qualified property solely by 
reason of the extension of the application of the special 
allowance under paragraph (1) pursuant to the amend-
ments made by section 1201(a) of the American 
Recovery and Reinvestment Tax Act of 2009 (and the 
application of such extension to this paragraph pursu-
ant to the amendment made by section 1201(b)(1) of 
such Act).’’. 
(2) TECHNICAL
AMENDMENT.—Section 6211(b)(4)(A) is 
amended by inserting ‘‘168(k)(4),’’ after ‘‘53(e),’’. 
(c) EFFECTIVE DATES.— 
Applicability. 
26 USC 168 note. 
26 USC 6211. 
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123 STAT. 335 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to property placed 
in service after December 31, 2008, in taxable years ending 
after such date. 
(2) TECHNICAL AMENDMENTS.—The amendments made by 
subsections (a)(3) and (b)(2) shall apply to taxable years ending 
after March 31, 2008. 
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING 
OF CERTAIN DEPRECIABLE BUSINESS ASSETS. 
(a) IN GENERAL.—Paragraph (7) of section 179(b) is amended— 
(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 2009’’, and 
(2) by striking ‘‘2008’’ in the heading thereof and inserting 
‘‘2008, AND 2009’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
PART II—SMALL BUSINESS PROVISIONS 
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL 
BUSINESSES. 
(a) IN GENERAL.—Subparagraph (H) of section 172(b)(1) is 
amended to read as follows: 
‘‘(H) CARRYBACK FOR 2008 NET OPERATING LOSSES OF 
SMALL BUSINESSES.— 
‘‘(i) IN
GENERAL.—If an eligible small business 
elects the application of this subparagraph with respect 
to an applicable 2008 net operating loss— 
‘‘(I) subparagraph (A)(i) shall be applied by 
substituting any whole number elected by the tax-
payer which is more than 2 and less than 6 for 
‘2’, 
‘‘(II) subparagraph (E)(ii) shall be applied by 
substituting the whole number which is one less 
than the whole number substituted under sub-
clause (I) for ‘2’, and 
‘‘(III) subparagraph (F) shall not apply. 
‘‘(ii) APPLICABLE 2008 NET OPERATING LOSS.—For 
purposes of this subparagraph, the term ‘applicable 
2008 net operating loss’ means— 
‘‘(I) the taxpayer’s net operating loss for any 
taxable year ending in 2008, or 
‘‘(II) if the taxpayer elects to have this sub-
clause apply in lieu of subclause (I), the taxpayer’s 
net operating loss for any taxable year beginning 
in 2008. 
‘‘(iii) ELECTION.—Any election under this subpara-
graph shall be made in such manner as may be pre-
scribed by the Secretary, and shall be made by the 
due date (including extension of time) for filing the 
taxpayer’s return for the taxable year of the net oper-
ating loss. Any such election, once made, shall be irrev-
ocable. Any election under this subparagraph may be 
made only with respect to 1 taxable year. 
‘‘(iv) ELIGIBLE SMALL BUSINESS.—For purposes of 
this subparagraph, the term ‘eligible small business’ 
has the meaning given such term by subparagraph 
Applicability. 
Applicability. 
26 USC 179 note. 
26 USC 179. 
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123 STAT. 336 
PUBLIC LAW 111–5—FEB. 17, 2009 
(F)(iii), except that in applying such subparagraph, 
section 448(c) shall be applied by substituting 
‘$15,000,000’ for ‘$5,000,000’ each place it appears.’’. 
(b) CONFORMING AMENDMENT.—Section 172 is amended by 
striking subsection (k) and by redesignating subsection (l) as sub-
section (k). 
(c) ANTI-ABUSE RULES.—The Secretary of Treasury or the Sec-
retary’s designee shall prescribe such rules as are necessary to 
prevent the abuse of the purposes of the amendments made by 
this section, including anti-stuffing rules, anti-churning rules 
(including rules relating to sale-leasebacks), and rules similar to 
the rules under section 1091 of the Internal Revenue Code of 
1986 relating to losses from wash sales. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
net operating losses arising in taxable years ending after 
December 31, 2007. 
(2) TRANSITIONAL RULE.—In the case of a net operating 
loss for a taxable year ending before the date of the enactment 
of this Act— 
(A) any election made under section 172(b)(3) of the 
Internal Revenue Code of 1986 with respect to such loss 
may (notwithstanding such section) be revoked before the 
applicable date, 
(B) any election made under section 172(b)(1)(H) of 
such Code with respect to such loss shall (notwithstanding 
such section) be treated as timely made if made before 
the applicable date, and 
(C) any application under section 6411(a) of such Code 
with respect to such loss shall be treated as timely filed 
if filed before the applicable date. 
For purposes of this paragraph, the term ‘‘applicable date’’ 
means the date which is 60 days after the date of the enactment 
of this Act. 
SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 
FOR CERTAIN SMALL BUSINESSES. 
Paragraph (1) of section 6654(d) is amended by adding at 
the end the following new subparagraph: 
‘‘(D) SPECIAL RULE FOR 2009.— 
‘‘(i) IN GENERAL.—Notwithstanding subparagraph 
(C), in the case of any taxable year beginning in 2009, 
clause (ii) of subparagraph (B) shall be applied to any 
qualified individual by substituting ‘90 percent’ for ‘100 
percent’. 
‘‘(ii) QUALIFIED INDIVIDUAL.—For purposes of this 
subparagraph, the term ‘qualified individual’ means 
any individual if— 
‘‘(I) the adjusted gross income shown on the 
return of such individual for the preceding taxable 
year is less than $500,000, and 
‘‘(II) such individual certifies that more than 
50 percent of the gross income shown on the return 
of such individual for the preceding taxable year 
was income from a small business. 
Certification. 
Applicability. 
Definition. 
Applicability. 
26 USC 172 note. 
26 USC 172 note. 
26 USC 172. 
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123 STAT. 337 
PUBLIC LAW 111–5—FEB. 17, 2009 
A certification under subclause (II) shall be in such 
form and manner and filed at such time as the Sec-
retary may by regulations prescribe. 
‘‘(iii) INCOME FROM A SMALL BUSINESS.—For pur-
poses of clause (ii), income from a small business 
means, with respect to any individual, income from 
a trade or business the average number of employees 
of which was less than 500 employees for the calendar 
year ending with or within the preceding taxable year 
of the individual. 
‘‘(iv) SEPARATE RETURNS.—In the case of a married 
individual (within the meaning of section 7703) who 
files a separate return for the taxable year for which 
the amount of the installment is being determined, 
clause (ii)(I) shall be applied by substituting ‘$250,000’ 
for ‘$500,000’. 
‘‘(v) ESTATES AND TRUSTS.—In the case of an estate 
or trust, adjusted gross income shall be determined 
as provided in section 67(e).’’. 
PART III—INCENTIVES FOR NEW JOBS 
SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DIS-
CONNECTED YOUTH. 
(a) IN GENERAL.—Subsection (d) of section 51 is amended by 
adding at the end the following new paragraph: 
‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED VETERANS AND 
DISCONNECTED YOUTH HIRED IN 2009 OR 2010.— 
‘‘(A) IN GENERAL.—Any unemployed veteran or discon-
nected youth who begins work for the employer during 
2009 or 2010 shall be treated as a member of a targeted 
group for purposes of this subpart. 
‘‘(B) DEFINITIONS.—For purposes of this paragraph— 
‘‘(i) 
UNEMPLOYED
VETERAN.—The 
term 
‘unemployed veteran’ means any veteran (as defined 
in paragraph (3)(B), determined without regard to 
clause (ii) thereof) who is certified by the designated 
local agency as— 
‘‘(I) having been discharged or released from 
active duty in the Armed Forces at any time during 
the 5-year period ending on the hiring date, and 
‘‘(II) being in receipt of unemployment com-
pensation under State or Federal law for not less 
than 4 weeks during the 1-year period ending on 
the hiring date. 
‘‘(ii) DISCONNECTED
YOUTH.—The term ‘discon-
nected youth’ means any individual who is certified 
by the designated local agency— 
‘‘(I) as having attained age 16 but not age 
25 on the hiring date, 
‘‘(II) as not regularly attending any secondary, 
technical, or post-secondary school during the 6- 
month period preceding the hiring date, 
‘‘(III) as not regularly employed during such 
6-month period, and 
‘‘(IV) as not readily employable by reason of 
lacking a sufficient number of basic skills.’’. 
26 USC 51. 
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123 STAT. 338 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to individuals who begin work for the employer after 
December 31, 2008. 
PART IV—RULES RELATING TO DEBT 
INSTRUMENTS 
SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING 
FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE 
REACQUISITION OF A DEBT INSTRUMENT. 
(a) IN GENERAL.—Section 108 (relating to income from dis-
charge of indebtedness) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING 
FROM BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION 
OF A DEBT INSTRUMENT.— 
‘‘(1) IN GENERAL.—At the election of the taxpayer, income 
from the discharge of indebtedness in connection with the 
reacquisition after December 31, 2008, and before January 
1, 2011, of an applicable debt instrument shall be includible 
in gross income ratably over the 5-taxable-year period beginning 
with— 
‘‘(A) in the case of a reacquisition occurring in 2009, 
the fifth taxable year following the taxable year in which 
the reacquisition occurs, and 
‘‘(B) in the case of a reacquisition occurring in 2010, 
the fourth taxable year following the taxable year in which 
the reacquisition occurs. 
‘‘(2) DEFERRAL OF DEDUCTION FOR ORIGINAL ISSUE DISCOUNT 
IN DEBT FOR DEBT EXCHANGES.— 
‘‘(A) IN
GENERAL.—If, as part of a reacquisition to 
which paragraph (1) applies, any debt instrument is issued 
for the applicable debt instrument being reacquired (or 
is treated as so issued under subsection (e)(4) and the 
regulations thereunder) and there is any original issue 
discount determined under subpart A of part V of sub-
chapter P of this chapter with respect to the debt 
instrument so issued— 
‘‘(i) except as provided in clause (ii), no deduction 
otherwise allowable under this chapter shall be allowed 
to the issuer of such debt instrument with respect 
to the portion of such original issue discount which— 
‘‘(I) accrues before the 1st taxable year in the 
5-taxable-year period in which income from the 
discharge of indebtedness attributable to the 
reacquisition of the debt instrument is includible 
under paragraph (1), and 
‘‘(II) does not exceed the income from the dis-
charge of indebtedness with respect to the debt 
instrument being reacquired, and 
‘‘(ii) the aggregate amount of deductions disallowed 
under clause (i) shall be allowed as a deduction ratably 
over the 5-taxable-year period described in clause (i)(I). 
If the amount of the original issue discount accruing before 
such 1st taxable year exceeds the income from the dis-
charge of indebtedness with respect to the applicable debt 
Time periods. 
26 USC 108. 
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123 STAT. 339 
PUBLIC LAW 111–5—FEB. 17, 2009 
instrument being reacquired, the deductions shall be dis-
allowed in the order in which the original issue discount 
is accrued. 
‘‘(B) DEEMED DEBT FOR DEBT EXCHANGES.—For pur-
poses of subparagraph (A), if any debt instrument is issued 
by an issuer and the proceeds of such debt instrument 
are used directly or indirectly by the issuer to reacquire 
an applicable debt instrument of the issuer, the debt 
instrument so issued shall be treated as issued for the 
debt instrument being reacquired. If only a portion of the 
proceeds from a debt instrument are so used, the rules 
of subparagraph (A) shall apply to the portion of any 
original issue discount on the newly issued debt instrument 
which is equal to the portion of the proceeds from such 
instrument used to reacquire the outstanding instrument. 
‘‘(3) APPLICABLE DEBT INSTRUMENT.—For purposes of this 
subsection— 
‘‘(A) 
APPLICABLE
DEBT
INSTRUMENT.—The 
term 
‘applicable debt instrument’ means any debt instrument 
which was issued by— 
‘‘(i) a C corporation, or 
‘‘(ii) any other person in connection with the con-
duct of a trade or business by such person. 
‘‘(B) DEBT INSTRUMENT.—The term ‘debt instrument’ 
means a bond, debenture, note, certificate, or any other 
instrument or contractual arrangement constituting indebt-
edness (within the meaning of section 1275(a)(1)). 
‘‘(4) REACQUISITION.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘reacquisition’ means, with 
respect to any applicable debt instrument, any acquisition 
of the debt instrument by— 
‘‘(i) the debtor which issued (or is otherwise the 
obligor under) the debt instrument, or 
‘‘(ii) a related person to such debtor. 
‘‘(B) ACQUISITION.—The term ‘acquisition’ shall, with 
respect to any applicable debt instrument, include an 
acquisition of the debt instrument for cash, the exchange 
of the debt instrument for another debt instrument 
(including an exchange resulting from a modification of 
the debt instrument), the exchange of the debt instrument 
for corporate stock or a partnership interest, and the con-
tribution of the debt instrument to capital. Such term 
shall also include the complete forgiveness of the indebted-
ness by the holder of the debt instrument. 
‘‘(5) OTHER DEFINITIONS AND RULES.—For purposes of this 
subsection— 
‘‘(A) RELATED PERSON.—The determination of whether 
a person is related to another person shall be made in 
the same manner as under subsection (e)(4). 
‘‘(B) ELECTION.— 
‘‘(i) IN GENERAL.—An election under this subsection 
with respect to any applicable debt instrument shall 
be made by including with the return of tax imposed 
by chapter 1 for the taxable year in which the 
reacquisition of the debt instrument occurs a statement 
which— 
‘‘(I) clearly identifies such instrument, and 
Regulations. 
Applicability. 
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123 STAT. 340 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) includes the amount of income to which 
paragraph (1) applies and such other information 
as the Secretary may prescribe. 
‘‘(ii) ELECTION IRREVOCABLE.—Such election, once 
made, is irrevocable. 
‘‘(iii) PASS-THRU ENTITIES.—In the case of a part-
nership, S corporation, or other pass-thru entity, the 
election under this subsection shall be made by the 
partnership, the S corporation, or other entity involved. 
‘‘(C) COORDINATION WITH OTHER EXCLUSIONS.—If a tax-
payer elects to have this subsection apply to an applicable 
debt instrument, subparagraphs (A), (B), (C), and (D) of 
subsection (a)(1) shall not apply to the income from the 
discharge of such indebtedness for the taxable year of the 
election or any subsequent taxable year. 
‘‘(D) ACCELERATION OF DEFERRED ITEMS.— 
‘‘(i) IN GENERAL.—In the case of the death of the 
taxpayer, the liquidation or sale of substantially all 
the assets of the taxpayer (including in a title 11 
or similar case), the cessation of business by the tax-
payer, or similar circumstances, any item of income 
or deduction which is deferred under this subsection 
(and has not previously been taken into account) shall 
be taken into account in the taxable year in which 
such event occurs (or in the case of a title 11 or 
similar case, the day before the petition is filed). 
‘‘(ii) SPECIAL RULE FOR PASS-THRU ENTITIES.—The 
rule of clause (i) shall also apply in the case of the 
sale or exchange or redemption of an interest in a 
partnership, S corporation, or other pass- thru entity 
by a partner, shareholder, or other person holding 
an ownership interest in such entity. 
‘‘(6) SPECIAL RULE FOR PARTNERSHIPS.—In the case of a 
partnership, any income deferred under this subsection shall 
be allocated to the partners in the partnership immediately 
before the discharge in the manner such amounts would have 
been included in the distributive shares of such partners under 
section 704 if such income were recognized at such time. Any 
decrease in a partner’s share of partnership liabilities as a 
result of such discharge shall not be taken into account for 
purposes of section 752 at the time of the discharge to the 
extent it would cause the partner to recognize gain under 
section 731. Any decrease in partnership liabilities deferred 
under the preceding sentence shall be taken into account by 
such partner at the same time, and to the extent remaining 
in the same amount, as income deferred under this subsection 
is recognized. 
‘‘(7) SECRETARIAL
AUTHORITY.—The Secretary may pre-
scribe such regulations, rules, or other guidance as may be 
necessary or appropriate for purposes of applying this sub-
section, including— 
‘‘(A) extending the application of the rules of paragraph 
(5)(D) to other circumstances where appropriate, 
‘‘(B) requiring reporting of the election (and such other 
information as the Secretary may require) on returns of 
tax for subsequent taxable years, and 
Applicability. 
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123 STAT. 341 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(C) rules for the application of this subsection to part-
nerships, S corporations, and other pass-thru entities, 
including for the allocation of deferred deductions.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to discharges in taxable years ending after December 
31, 2008. 
SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT 
ON CERTAIN HIGH YIELD OBLIGATIONS. 
(a) SUSPENSION OF SPECIAL RULES.—Section 163(e)(5) (relating 
to special rules for original issue discount on certain high yield 
obligations) is amended by redesignating subparagraph (F) as 
subparagraph (G) and by inserting after subparagraph (E) the 
following new subparagraph: 
‘‘(F) SUSPENSION OF APPLICATION OF PARAGRAPH.— 
‘‘(i) 
TEMPORARY
SUSPENSION.—This 
paragraph 
shall not apply to any applicable high yield discount 
obligation issued during the period beginning on Sep-
tember 1, 2008, and ending on December 31, 2009, 
in exchange (including an exchange resulting from a 
modification of the debt instrument) for an obligation 
which is not an applicable high yield discount obliga-
tion and the issuer (or obligor) of which is the same 
as the issuer (or obligor) of such applicable high yield 
discount obligation. The preceding sentence shall not 
apply to any obligation the interest on which is interest 
described in section 871(h)(4) (without regard to 
subparagraph (D) thereof) or to any obligation issued 
to a related person (within the meaning of section 
108(e)(4)). 
‘‘(ii) SUCCESSIVE APPLICATION.—Any obligation to 
which clause (i) applies shall not be treated as an 
applicable high yield discount obligation for purposes 
of applying this subparagraph to any other obligation 
issued in exchange for such obligation. 
‘‘(iii) SECRETARIAL AUTHORITY TO SUSPEND APPLICA-
TION.—The Secretary may apply this paragraph with 
respect to debt instruments issued in periods following 
the period described in clause (i) if the Secretary deter-
mines that such application is appropriate in light 
of distressed conditions in the debt capital markets.’’. 
(b) INTEREST RATE USED IN DETERMINING HIGH YIELD OBLIGA-
TIONS.—The last sentence of section 163(i)(1) is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘regulation’’, and 
(2) by inserting ‘‘, or (ii) permit, on a temporary basis, 
a rate to be used with respect to any debt instrument which 
is higher than the applicable Federal rate if the Secretary 
determines that such rate is appropriate in light of distressed 
conditions in the debt capital markets’’ before the period at 
the end. 
(c) EFFECTIVE DATE.— 
(1) SUSPENSION.—The amendments made by subsection (a) 
shall apply to obligations issued after August 31, 2008, in 
taxable years ending after such date. 
(2) INTEREST RATE AUTHORITY.—The amendments made by 
subsection (b) shall apply to obligations issued after December 
31, 2009, in taxable years ending after such date. 
26 USC 163 note. 
Time period. 
26 USC 163. 
26 USC 108 note. 
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123 STAT. 342 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART V—QUALIFIED SMALL BUSINESS STOCK 
SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSI-
NESS STOCK FOR 2009 AND 2010. 
(a) IN GENERAL.—Section 1202(a) is amended by adding at 
the end the following new paragraph: 
‘‘(3) SPECIAL
RULES
FOR
2009
AND
2010.—In the case of 
qualified small business stock acquired after the date of the 
enactment of this paragraph and before January 1, 2011— 
‘‘(A) paragraph (1) shall be applied by substituting 
‘75 percent’ for ‘50 percent’, and 
‘‘(B) paragraph (2) shall not apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to stock acquired after the date of the enactment of 
this Act. 
PART VI—S CORPORATIONS 
SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
BUILT-IN GAINS TAX. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) (relating 
to definitions and special rules) is amended to read as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition period’ means 
the 10-year period beginning with the 1st day of the 1st 
taxable year for which the corporation was an S corpora-
tion. 
‘‘(B) SPECIAL RULE FOR 2009 AND 2010.—In the case 
of any taxable year beginning in 2009 or 2010, no tax 
shall be imposed on the net recognized built-in gain of 
an S corporation if the 7th taxable year in the recognition 
period preceded such taxable year. The preceding sentence 
shall be applied separately with respect to any asset to 
which paragraph (8) applies. 
‘‘(C) SPECIAL
RULE
FOR
DISTRIBUTIONS
TO
SHARE-
HOLDERS.—For purposes of applying this section to any 
amount includible in income by reason of distributions 
to shareholders pursuant to section 593(e)— 
‘‘(i) subparagraph (A) shall be applied without 
regard to the phrase ‘10-year’, and 
‘‘(ii) subparagraph (B) shall not apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2008. 
PART VII—RULES RELATING TO OWNERSHIP 
CHANGES 
SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITA-
TIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN 
OWNERSHIP CHANGE. 
(a) FINDINGS.—Congress finds as follows: 
(1) The delegation of authority to the Secretary of the 
Treasury under section 382(m) of the Internal Revenue Code 
of 1986 does not authorize the Secretary to provide exemptions 
or special rules that are restricted to particular industries 
or classes of taxpayers. 
26 USC 382 note. 
26 USC 1374 
note. 
Applicability. 
Applicability. 
26 USC 1374. 
26 USC 1202 
note. 
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123 STAT. 343 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) Internal Revenue Service Notice 2008–83 is inconsistent 
with the congressional intent in enacting such section 382(m). 
(3) The legal authority to prescribe Internal Revenue 
Service Notice 2008–83 is doubtful. 
(4) However, as taxpayers should generally be able to rely 
on guidance issued by the Secretary of the Treasury legislation 
is necessary to clarify the force and effect of Internal Revenue 
Service Notice 2008–83 and restore the proper application 
under the Internal Revenue Code of 1986 of the limitation 
on built-in losses following an ownership change of a bank. 
(b) DETERMINATION OF FORCE AND EFFECT OF INTERNAL REV-
ENUE SERVICE NOTICE 2008–83 EXEMPTING BANKS FROM LIMITA-
TION
ON
CERTAIN
BUILT–IN
LOSSES
FOLLOWING
OWNERSHIP 
CHANGE.— 
(1) IN GENERAL.—Internal Revenue Service Notice 2008– 
83— 
(A) shall be deemed to have the force and effect of 
law with respect to any ownership change (as defined in 
section 382(g) of the Internal Revenue Code of 1986) occur-
ring on or before January 16, 2009, and 
(B) shall have no force or effect with respect to any 
ownership change after such date. 
(2) BINDING CONTRACTS.—Notwithstanding paragraph (1), 
Internal Revenue Service Notice 2008–83 shall have the force 
and effect of law with respect to any ownership change (as 
so defined) which occurs after January 16, 2009, if such 
change— 
(A) is pursuant to a written binding contract entered 
into on or before such date, or 
(B) is pursuant to a written agreement entered into 
on or before such date and such agreement was described 
on or before such date in a public announcement or in 
a filing with the Securities and Exchange Commission 
required by reason of such ownership change. 
SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PUR-
POSES OF LIMITATIONS ON NET OPERATING LOSS 
CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES. 
(a) IN GENERAL.—Section 382 is amended by adding at the 
end the following new subsection: 
‘‘(n) SPECIAL RULE FOR CERTAIN OWNERSHIP CHANGES.— 
‘‘(1) IN GENERAL.—The limitation contained in subsection 
(a) shall not apply in the case of an ownership change which 
is pursuant to a restructuring plan of a taxpayer which— 
‘‘(A) is required under a loan agreement or a commit-
ment for a line of credit entered into with the Department 
of the Treasury under the Emergency Economic Stabiliza-
tion Act of 2008, and 
‘‘(B) is intended to result in a rationalization of the 
costs, capitalization, and capacity with respect to the manu-
facturing workforce of, and suppliers to, the taxpayer and 
its subsidiaries. 
‘‘(2) SUBSEQUENT ACQUISITIONS.—Paragraph (1) shall not 
apply in the case of any subsequent ownership change unless 
such ownership change is described in such paragraph. 
‘‘(3) LIMITATION BASED ON CONTROL IN CORPORATION.— 
26 USC 382. 
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123 STAT. 344 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) IN GENERAL.—Paragraph (1) shall not apply in 
the case of any ownership change if, immediately after 
such ownership change, any person (other than a voluntary 
employees’ beneficiary association under section 501(c)(9)) 
owns stock of the new loss corporation possessing 50 per-
cent or more of the total combined voting power of all 
classes of stock entitled to vote, or of the total value of 
the stock of such corporation. 
‘‘(B) TREATMENT OF RELATED PERSONS.— 
‘‘(i) IN GENERAL.—Related persons shall be treated 
as a single person for purposes of this paragraph. 
‘‘(ii) RELATED
PERSONS.—For purposes of clause 
(i), a person shall be treated as related to another 
person if— 
‘‘(I) such person bears a relationship to such 
other person described in section 267(b) or 707(b), 
or 
‘‘(II) such persons are members of a group 
of persons acting in concert.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to ownership changes after the date of the enactment 
of this Act. 
Subtitle D—Manufacturing Recovery 
Provisions 
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL 
DEVELOPMENT BONDS TO FACILITIES MANUFACTURING 
INTANGIBLE PROPERTY. 
(a) IN GENERAL.—Subparagraph (C) of section 144(a)(12) is 
amended— 
(1) by striking ‘‘For purposes of this paragraph, the term’’ 
and inserting ‘‘For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term’’, and 
(2) by striking the last sentence and inserting the following 
new clauses: 
‘‘(ii) CERTAIN
FACILITIES
INCLUDED.—Such term 
includes facilities which are directly related and 
ancillary to a manufacturing facility (determined with-
out regard to this clause) if— 
‘‘(I) such facilities are located on the same 
site as the manufacturing facility, and 
‘‘(II) not more than 25 percent of the net pro-
ceeds of the issue are used to provide such facili-
ties. 
‘‘(iii) SPECIAL
RULES
FOR
BONDS
ISSUED
IN
2009 
AND 2010.—In the case of any issue made after the 
date of enactment of this clause and before January 
1, 2011, clause (ii) shall not apply and the net proceeds 
from a bond shall be considered to be used to provide 
a manufacturing facility if such proceeds are used to 
provide— 
‘‘(I) a facility which is used in the creation 
or production of intangible property which is 
described in section 197(d)(1)(C)(iii), or 
26 USC 144. 
26 USC 382 note. 
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PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) a facility which is functionally related 
and subordinate to a manufacturing facility (deter-
mined without regard to this subclause) if such 
facility is located on the same site as the manufac-
turing facility.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILI-
TIES. 
(a) IN GENERAL.—Section 46 (relating to amount of credit) 
is amended by striking ‘‘and’’ at the end of paragraph (3), by 
striking the period at the end of paragraph (4), and by adding 
at the end the following new paragraph: 
‘‘(5) the qualifying advanced energy project credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of subchapter 
A of chapter 1 (relating to rules for computing investment credit) 
is amended by inserting after section 48B the following new section: 
‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the qualifying 
advanced energy project credit for any taxable year is an amount 
equal to 30 percent of the qualified investment for such taxable 
year with respect to any qualifying advanced energy project of 
the taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), the quali-
fied investment for any taxable year is the basis of eligible 
property placed in service by the taxpayer during such taxable 
year which is part of a qualifying advanced energy project. 
‘‘(2) 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. 
‘‘(3) LIMITATION.—The amount which is treated for all tax-
able years with respect to any qualifying advanced energy 
project shall not exceed the amount designated by the Secretary 
as eligible for the credit under this section. 
‘‘(c) DEFINITIONS.— 
‘‘(1) QUALIFYING ADVANCED ENERGY PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘qualifying advanced 
energy project’ means a project— 
‘‘(i) which re-equips, expands, or establishes a 
manufacturing facility for the production of— 
‘‘(I) property designed to be used to produce 
energy from the sun, wind, geothermal deposits 
(within the meaning of section 613(e)(2)), or other 
renewable resources, 
‘‘(II) fuel cells, microturbines, or an energy 
storage system for use with electric or hybrid- 
electric motor vehicles, 
‘‘(III) electric grids to support the transmission 
of intermittent sources of renewable energy, 
including storage of such energy, 
‘‘(IV) 
property 
designed 
to 
capture 
and 
sequester carbon dioxide emissions, 
26 USC 46. 
26 USC 144 note. 
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123 STAT. 346 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(V) property designed to refine or blend 
renewable fuels or to produce energy conservation 
technologies (including energy-conserving lighting 
technologies and smart grid technologies), 
‘‘(VI) new qualified plug-in electric drive motor 
vehicles (as defined by section 30D), qualified plug- 
in electric vehicles (as defined by section 30(d)), 
or components which are designed specifically for 
use with such vehicles, including electric motors, 
generators, and power control units, or 
‘‘(VII) 
other 
advanced 
energy 
property 
designed to reduce greenhouse gas emissions as 
may be determined by the Secretary, and 
‘‘(ii) any portion of the qualified investment of 
which is certified by the Secretary under subsection 
(d) as eligible for a credit under this section. 
‘‘(B) EXCEPTION.—Such term shall not include any por-
tion of a project for the production of any property which 
is used in the refining or blending of any transportation 
fuel (other than renewable fuels). 
‘‘(2) ELIGIBLE
PROPERTY.—The term ‘eligible property’ 
means any property— 
‘‘(A) which is necessary for the production of property 
described in paragraph (1)(A)(i), 
‘‘(B) 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 
investment credit facility, and 
‘‘(C) with respect to which depreciation (or amortization 
in lieu of depreciation) is allowable. 
‘‘(d) QUALIFYING ADVANCED ENERGY PROJECT PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—Not later than 180 days after the 
date of enactment of this section, the Secretary, in consulta-
tion with the Secretary of Energy, shall establish a quali-
fying advanced energy project program to consider and 
award certifications for qualified investments eligible for 
credits under this section to qualifying advanced energy 
project sponsors. 
‘‘(B) LIMITATION.—The total amount of credits that may 
be 
allocated 
under 
the 
program 
shall 
not 
exceed 
$2,300,000,000. 
‘‘(2) CERTIFICATION.— 
‘‘(A) APPLICATION PERIOD.—Each applicant for certifi-
cation under this paragraph shall submit an application 
containing such information as the Secretary may require 
during the 2-year period beginning on the date the Sec-
retary establishes the program under paragraph (1). 
‘‘(B) TIME TO MEET CRITERIA FOR CERTIFICATION.—Each 
applicant for certification shall have 1 year from the date 
of acceptance by the Secretary of the application during 
which to provide to the Secretary evidence that the require-
ments of the certification have been met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant which receives 
a certification shall have 3 years from the date of issuance 
Deadline. 
Deadline. 
Deadline. 
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123 STAT. 347 
PUBLIC LAW 111–5—FEB. 17, 2009 
of the certification in order to place the project in service 
and if such project is not placed in service by that time 
period, then the certification shall no longer be valid. 
‘‘(3) SELECTION CRITERIA.—In determining which qualifying 
advanced energy projects to certify under this section, the Sec-
retary— 
‘‘(A) shall take into consideration only those projects 
where there is a reasonable expectation of commercial 
viability, and 
‘‘(B) shall take into consideration which projects— 
‘‘(i) will provide the greatest domestic job creation 
(both direct and indirect) during the credit period, 
‘‘(ii) will provide the greatest net impact in 
avoiding or reducing air pollutants or anthropogenic 
emissions of greenhouse gases, 
‘‘(iii) have the greatest potential for technological 
innovation and commercial deployment, 
‘‘(iv) have the lowest levelized cost of generated 
or stored energy, or of measured reduction in energy 
consumption or greenhouse gas emission (based on 
costs of the full supply chain), and 
‘‘(v) have the shortest project time from certifi-
cation to completion. 
‘‘(4) REVIEW AND REDISTRIBUTION.— 
‘‘(A) REVIEW.—Not later than 4 years after the date 
of enactment of this section, the Secretary shall review 
the credits allocated under this section as of such date. 
‘‘(B) REDISTRIBUTION.—The Secretary may reallocate 
credits awarded under this section if the Secretary deter-
mines that— 
‘‘(i) there is an insufficient quantity of qualifying 
applications for certification pending at the time of 
the review, or 
‘‘(ii) any certification made pursuant to paragraph 
(2) has been revoked pursuant to paragraph (2)(B) 
because the project subject to the certification has been 
delayed as a result of third party opposition or litiga-
tion to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary determines that 
credits under this section are available for reallocation 
pursuant to the requirements set forth in paragraph (2), 
the Secretary is authorized to conduct an additional pro-
gram for applications for certification. 
‘‘(5) DISCLOSURE
OF
ALLOCATIONS.—The Secretary shall, 
upon making a certification under this subsection, publicly 
disclose the identity of the applicant and the amount of the 
credit with respect to such applicant. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall not be allowed 
under this section for any qualified investment for which a credit 
is allowed under section 48, 48A, or 48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) is amended by striking ‘‘and’’ at 
the end of clause (iii), by striking the period at the end of 
clause (iv) and inserting ‘‘, and’’, and by adding after clause 
(iv) the following new clause: 
26 USC 49. 
Deadline. 
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123 STAT. 348 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(v) the basis of any property which is part of 
a qualifying advanced energy project under section 
48C.’’. 
(2) The table of sections for subpart E of part IV of sub-
chapter A of chapter 1 is amended by inserting after the item 
relating to section 48B the following new item: 
‘‘48C. Qualifying advanced energy project credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to periods after the date of the enactment of this 
Act, under rules similar to the rules of section 48(m) of the Internal 
Revenue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990). 
Subtitle E—Economic Recovery Tools 
SEC. 1401. RECOVERY ZONE BONDS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 is amended by 
adding at the end the following new part: 
‘‘PART III—RECOVERY ZONE BONDS 
‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
‘‘(a) ALLOCATIONS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) GENERAL ALLOCATION.—The Secretary shall allo-
cate the national recovery zone economic development bond 
limitation and the national recovery zone facility bond 
limitation among the States in the proportion that each 
such State’s 2008 State employment decline bears to the 
aggregate of the 2008 State employment declines for all 
of the States. 
‘‘(B) MINIMUM ALLOCATION.—The Secretary shall adjust 
the allocations under subparagraph (A) for any calendar 
year for each State to the extent necessary to ensure that 
no State receives less than 0.9 percent of the national 
recovery zone economic development bond limitation and 
0.9 percent of the national recovery zone facility bond 
limitation. 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For purposes of 
this subsection, the term ‘2008 State employment decline’ 
means, with respect to any State, the excess (if any) of— 
‘‘(A) the number of individuals employed in such State 
determined for December 2007, over 
‘‘(B) the number of individuals employed in such State 
determined for December 2008. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with respect to which 
an allocation is made under paragraph (1) shall reallocate 
such allocation among the counties and large municipalities 
in such State in the proportion to each such county’s or 
municipality’s 2008 employment decline bears to the aggre-
gate of the 2008 employment declines for all the counties 
and municipalities in such State. A county or municipality 
Waiver authority. 
26 USC 46 note. 
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123 STAT. 349 
PUBLIC LAW 111–5—FEB. 17, 2009 
may waive any portion of an allocation made under this 
subparagraph. 
‘‘(B) LARGE MUNICIPALITIES.—For purposes of subpara-
graph (A), the term ‘large municipality’ means a munici-
pality with a population of more than 100,000. 
‘‘(C) 
DETERMINATION
OF
LOCAL
EMPLOYMENT 
DECLINES.—For purposes of this paragraph, the employ-
ment decline of any municipality or county shall be deter-
mined in the same manner as determining the State 
employment decline under paragraph (2), except that in 
the case of a municipality any portion of which is in a 
county, such portion shall be treated as part of such munici-
pality and not part of such county. 
‘‘(4) NATIONAL LIMITATIONS.— 
‘‘(A) 
RECOVERY
ZONE
ECONOMIC
DEVELOPMENT 
BONDS.—There is a national recovery zone economic 
development bond limitation of $10,000,000,000. 
‘‘(B) RECOVERY
ZONE
FACILITY
BONDS.—There is a 
national 
recovery 
zone 
facility 
bond 
limitation 
of 
$15,000,000,000. 
‘‘(b) RECOVERY ZONE.—For purposes of this part, the term 
‘recovery zone’ means— 
‘‘(1) any area designated by the issuer as having significant 
poverty, unemployment, rate of home foreclosures, or general 
distress, 
‘‘(2) any area designated by the issuer as economically 
distressed by reason of the closure or realignment of a military 
installation pursuant to the Defense Base Closure and Realign-
ment Act of 1990, and 
‘‘(3) any area for which a designation as an empowerment 
zone or renewal community is in effect. 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS. 
‘‘(a) IN GENERAL.—In the case of a recovery zone economic 
development bond— 
‘‘(1) such bond shall be treated as a qualified bond for 
purposes of section 6431, and 
‘‘(2) subsection (b) of such section shall be applied by sub-
stituting ‘45 percent’ for ‘35 percent’. 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT BOND.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘recovery zone economic development bond’ means any build 
America bond (as defined in section 54AA(d)) issued before 
January 1, 2011, as part of issue if— 
‘‘(A) 100 percent of the excess of— 
‘‘(i) the available project proceeds (as defined in 
section 54A) of such issue, over 
‘‘(ii) the amounts in a reasonably required reserve 
(within the meaning of section 150(a)(3)) with respect 
to such issue, 
are to be used for one or more qualified economic develop-
ment purposes, and 
‘‘(B) the issuer designates such bond for purposes of 
this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The 
maximum aggregate face amount of bonds which may be des-
ignated by any issuer under paragraph (1) shall not exceed 
Applicability. 
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123 STAT. 350 
PUBLIC LAW 111–5—FEB. 17, 2009 
the amount of the recovery zone economic development bond 
limitation allocated to such issuer under section 1400U–1. 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PURPOSE.—For pur-
poses of this section, the term ‘qualified economic development 
purpose’ means expenditures for purposes of promoting development 
or other economic activity in a recovery zone, including— 
‘‘(1) capital expenditures paid or incurred with respect to 
property located in such zone, 
‘‘(2) expenditures for public infrastructure and construction 
of public facilities, and 
‘‘(3) expenditures for job training and educational programs. 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of subchapter B 
(relating to tax exemption requirements for State and local bonds), 
the term ‘exempt facility bond’ includes any recovery zone facility 
bond. 
‘‘(b) RECOVERY ZONE FACILITY BOND.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘recovery zone facility bond’ means any bond issued as part 
of an issue if— 
‘‘(A) 95 percent or more of the net proceeds (as defined 
in section 150(a)(3)) of such issue are to be used for recovery 
zone property, 
‘‘(B) such bond is issued before January 1, 2011, and 
‘‘(C) the issuer designates such bond for purposes of 
this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The 
maximum aggregate face amount of bonds which may be des-
ignated by any issuer under paragraph (1) shall not exceed 
the amount of recovery zone facility bond limitation allocated 
to such issuer under section 1400U–1. 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘recovery zone property’ means 
any property to which section 168 applies (or would apply 
but for section 179) if— 
‘‘(A) such property was constructed, reconstructed, ren-
ovated, or acquired by purchase (as defined in section 
179(d)(2)) by the taxpayer after the date on which the 
designation of the recovery zone took effect, 
‘‘(B) the original use of which in the recovery zone 
commences with the taxpayer, and 
‘‘(C) substantially all of the use of which is in the 
recovery zone and is in the active conduct of a qualified 
business by the taxpayer in such zone. 
‘‘(2) QUALIFIED
BUSINESS.—The term ‘qualified business’ 
means any trade or business except that— 
‘‘(A) the rental to others of real property located in 
a recovery zone shall be treated as a qualified business 
only if the property is not residential rental property (as 
defined in section 168(e)(2)), and 
‘‘(B) such term shall not include any trade or business 
consisting of the operation of any facility described in sec-
tion 144(c)(6)(B). 
‘‘(3) SPECIAL
RULES
FOR
SUBSTANTIAL
RENOVATIONS
AND 
SALE-LEASEBACK.—Rules similar to the rules of subsections 
Applicability. 
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123 STAT. 351 
PUBLIC LAW 111–5—FEB. 17, 2009 
(a)(2) and (b) of section 1397D shall apply for purposes of 
this subsection. 
‘‘(d) NONAPPLICATION
OF
CERTAIN
RULES.—Sections 146 
(relating to volume cap) and 147(d) (relating to acquisition of 
existing property not permitted) shall not apply to any recovery 
zone facility bond.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for subchapter 
Y of chapter 1 of such Code is amended by adding at the end 
the following new item: 
‘‘PART III. RECOVERY ZONE BONDS.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
(a) IN GENERAL.—Section 7871 is amended by adding at the 
end the following new subsection: 
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
‘‘(1) ALLOCATION OF LIMITATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall allocate the 
national tribal economic development bond limitation 
among the Indian tribal governments in such manner as 
the Secretary, in consultation with the Secretary of the 
Interior, determines appropriate. 
‘‘(B) NATIONAL LIMITATION.—There is a national tribal 
economic development bond limitation of $2,000,000,000. 
‘‘(2) BONDS TREATED AS EXEMPT FROM TAX.—In the case 
of a tribal economic development bond— 
‘‘(A) notwithstanding subsection (c), such bond shall 
be treated for purposes of this title in the same manner 
as if such bond were issued by a State, 
‘‘(B) the Indian tribal government issuing such bond 
and any instrumentality of such Indian tribal government 
shall be treated as a State for purposes of section 141, 
and 
‘‘(C) section 146 shall not apply. 
‘‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘tribal economic development bond’ means any bond 
issued by an Indian tribal government— 
‘‘(i) the interest on which would be exempt from 
tax under section 103 if issued by a State or local 
government, and 
‘‘(ii) which is designated by the Indian tribal 
government as a tribal economic development bond 
for purposes of this subsection. 
‘‘(B) EXCEPTIONS.—Such term shall not include any 
bond issued as part of an issue if any portion of the proceeds 
of such issue are used to finance— 
‘‘(i) 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 other property actually used in the conduct 
of such gaming, or 
‘‘(ii) any facility located outside the Indian reserva-
tion (as defined in section 168(j)(6)). 
26 USC 7871. 
26 USC 1400U–1 
note. 
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123 STAT. 352 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(C) LIMITATION ON AMOUNT OF BONDS DESIGNATED.— 
The maximum aggregate face amount of bonds which may 
be designated by any Indian tribal government under 
subparagraph (A) shall not exceed the amount of national 
tribal economic development bond limitation allocated to 
such government under paragraph (1).’’. 
(b) STUDY.—The Secretary of the Treasury, or the Secretary’s 
delegate, shall conduct a study of the effects of the amendment 
made by subsection (a). Not later than 1 year after the date of 
the enactment of this Act, the Secretary of the Treasury, or the 
Secretary’s delegate, shall report to Congress on the results of 
the study conducted under this paragraph, including the Secretary’s 
recommendations regarding such amendment. 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to obligations issued after the date of the enactment 
of this Act. 
SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Section 45D(f)(1) is amended— 
(1) by striking ‘‘and’’ at the end of subparagraph (C), 
(2) by striking ‘‘, 2007, 2008, and 2009.’’ in subparagraph 
(D), and inserting ‘‘and 2007,’’, and 
(3) by adding at the end the following new subparagraphs: 
‘‘(E) $5,000,000,000 for 2008, and 
‘‘(F) $5,000,000,000 for 2009.’’. 
(b) SPECIAL RULE FOR ALLOCATION OF INCREASED 2008 LIMITA-
TION.—The amount of the increase in the new markets tax credit 
limitation for calendar year 2008 by reason of the amendments 
made by subsection (a) shall be allocated in accordance with section 
45D(f)(2) of the Internal Revenue Code of 1986 to qualified commu-
nity development entities (as defined in section 45D(c) of such 
Code) which— 
(1) submitted an allocation application with respect to cal-
endar year 2008, and 
(2)(A) did not receive an allocation for such calendar year, 
or 
(B) received an allocation for such calendar year in an 
amount less than the amount requested in the allocation 
application. 
SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND 
LOW-INCOME HOUSING GRANTS. 
Subsection (i) of section 42 is amended by adding at the end 
the following new paragraph: 
‘‘(9) COORDINATION WITH LOW-INCOME HOUSING GRANTS.— 
‘‘(A) REDUCTION IN STATE HOUSING CREDIT CEILING FOR 
LOW-INCOME HOUSING GRANTS RECEIVED IN 2009.—For pur-
poses of this section, the amounts described in clauses 
(i) through (iv) of subsection (h)(3)(C) with respect to any 
State for 2009 shall each be reduced by so much of such 
amount as is taken into account in determining the amount 
of any grant to such State under section 1602 of the Amer-
ican Recovery and Reinvestment Tax Act of 2009. 
‘‘(B) SPECIAL
RULE
FOR
BASIS.—Basis of a qualified 
low-income building shall not be reduced by the amount 
of any grant described in subparagraph (A).’’. 
26 USC 45D 
note. 
26 USC 45. 
26 USC 7871 
note. 
Deadline. 
Reports. 
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123 STAT. 353 
PUBLIC LAW 111–5—FEB. 17, 2009 
Subtitle F—Infrastructure Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX- 
EXEMPT BONDS 
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT 
INTEREST EXPENSE OF FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Subsection (b) of section 265 is amended 
by adding at the end the following new paragraph: 
‘‘(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED DURING 2009 
OR 2010.— 
‘‘(A) IN GENERAL.—In applying paragraph (2)(A), there 
shall not be taken into account tax-exempt obligations 
issued during 2009 or 2010. 
‘‘(B) LIMITATION.—The amount of tax-exempt obliga-
tions not taken into account by reason of subparagraph 
(A) shall not exceed 2 percent of the amount determined 
under paragraph (2)(B). 
‘‘(C) REFUNDINGS.—For purposes of this paragraph, a 
refunding bond (whether a current or advance refunding) 
shall be treated as issued on the date of the issuance 
of the refunded bond (or in the case of a series of 
refundings, the original bond).’’. 
(b) TREATMENT AS FINANCIAL INSTITUTION PREFERENCE ITEM.— 
Clause (iv) of section 291(e)(1)(B) is amended by adding at the 
end the following: ‘‘That portion of any obligation not taken into 
account under paragraph (2)(A) of section 265(b) by reason of para-
graph (7) of such section shall be treated for purposes of this 
section as having been acquired on August 7, 1986.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after December 31, 2008. 
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX- 
EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR 
FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Paragraph (3) of section 265(b) (relating to 
exception for certain tax-exempt obligations) is amended by adding 
at the end the following new subparagraph: 
‘‘(G) SPECIAL RULES FOR OBLIGATIONS ISSUED DURING 
2009 AND 2010.— 
‘‘(i) INCREASE IN LIMITATION.—In the case of obliga-
tions issued during 2009 or 2010, subparagraphs (C)(i), 
(D)(i), and (D)(iii)(II) shall each be applied by sub-
stituting ‘$30,000,000’ for ‘$10,000,000’. 
‘‘(ii) QUALIFIED 501(C)(3) BONDS TREATED AS ISSUED 
BY EXEMPT ORGANIZATION.—In the case of a qualified 
501(c)(3) bond (as defined in section 145) issued during 
2009 or 2010, this paragraph shall be applied by 
treating the 501(c)(3) organization for whose benefit 
such bond was issued as the issuer. 
‘‘(iii) SPECIAL RULE FOR QUALIFIED FINANCINGS.— 
In the case of a qualified financing issue issued during 
2009 or 2010— 
‘‘(I) subparagraph (F) shall not apply, and 
‘‘(II) any obligation issued as a part of such 
issue shall be treated as a qualified tax-exempt 
Applicability. 
Applicability. 
26 USC 265 note. 
26 USC 265. 
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123 STAT. 354 
PUBLIC LAW 111–5—FEB. 17, 2009 
obligation if the requirements of this paragraph 
are met with respect to each qualified portion of 
the issue (determined by treating each qualified 
portion as a separate issue which is issued by 
the qualified borrower with respect to which such 
portion relates). 
‘‘(iv) QUALIFIED FINANCING ISSUE.—For purposes 
of this subparagraph, the term ‘qualified financing 
issue’ means any composite, pooled, or other conduit 
financing issue the proceeds of which are used directly 
or indirectly to make or finance loans to 1 or more 
ultimate borrowers each of whom is a qualified bor-
rower. 
‘‘(v) QUALIFIED
PORTION.—For purposes of this 
subparagraph, the term ‘qualified portion’ means that 
portion of the proceeds which are used with respect 
to each qualified borrower under the issue. 
‘‘(vi) QUALIFIED BORROWER.—For purposes of this 
subparagraph, the term ‘qualified borrower’ means a 
borrower which is a State or political subdivision 
thereof or an organization described in section 501(c)(3) 
and exempt from taxation under section 501(a).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to obligations issued after December 31, 2008. 
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM 
TAX LIMITATIONS ON TAX-EXEMPT BONDS. 
(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED DURING 2009 
AND 2010 NOT TREATED AS TAX PREFERENCE ITEM.—Subparagraph 
(C) of section 57(a)(5) is amended by adding at the end a new 
clause: 
‘‘(vi) EXCEPTION FOR BONDS ISSUED IN 2009 AND 
2010.— 
‘‘(I) IN GENERAL.—For purposes of clause (i), 
the term ‘private activity bond’ shall not include 
any bond issued after December 31, 2008, and 
before January 1, 2011. 
‘‘(II) TREATMENT OF REFUNDING BONDS.—For 
purposes of subclause (I), a refunding bond 
(whether a current or advance refunding) shall 
be treated as issued on the date of the issuance 
of the refunded bond (or in the case of a series 
of refundings, the original bond). 
‘‘(III) EXCEPTION
FOR
CERTAIN
REFUNDING 
BONDS.—Subclause (II) shall not apply to any 
refunding bond which is issued to refund any bond 
which was issued after December 31, 2003, and 
before January 1, 2009.’’. 
(b) NO ADJUSTMENT
TO ADJUSTED CURRENT EARNINGS
FOR 
INTEREST ON TAX-EXEMPT BONDS ISSUED DURING 2009 AND 2010.— 
Subparagraph (B) of section 56(g)(4) is amended by adding at the 
end the following new clause: 
‘‘(iv) TAX EXEMPT INTEREST ON BONDS ISSUED IN 
2009 AND 2010.— 
‘‘(I) IN GENERAL.—Clause (i) shall not apply 
in the case of any interest on a bond issued after 
December 31, 2008, and before January 1, 2011. 
26 USC 57. 
26 USC 265 note. 
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123 STAT. 355 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) TREATMENT OF REFUNDING BONDS.—For 
purposes of subclause (I), a refunding bond 
(whether a current or advance refunding) shall 
be treated as issued on the date of the issuance 
of the refunded bond (or in the case of a series 
of refundings, the original bond). 
‘‘(III) EXCEPTION
FOR
CERTAIN
REFUNDING 
BONDS.—Subclause (II) shall not apply to any 
refunding bond which is issued to refund any bond 
which was issued after December 31, 2003, and 
before January 1, 2009.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after December 31, 2008. 
SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY 
BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 142(i) is amended 
by striking ‘‘operate at speeds in excess of’’ and inserting ‘‘be capable 
of attaining a maximum speed in excess of’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
PART II—DELAY IN APPLICATION OF WITH-
HOLDING TAX ON GOVERNMENT CONTRAC-
TORS 
SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERN-
MENT CONTRACTORS. 
Subsection (b) of section 511 of the Tax Increase Prevention 
and Reconciliation Act of 2005 is amended by striking ‘‘December 
31, 2010’’ and inserting ‘‘December 31, 2011’’. 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
(a) IN GENERAL.—Subpart I of part IV of subchapter A of 
chapter 1 is amended by adding at the end the following new 
section: 
‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—For purposes 
of this subchapter, the term ‘qualified school construction bond’ 
means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project proceeds of such 
issue are to be used for the construction, rehabilitation, or 
repair of a public school facility or for the acquisition of land 
on which such a facility is to be constructed with part of 
the proceeds of such issue, 
‘‘(2) the bond is issued by a State or local government 
within the jurisdiction of which such school is located, and 
‘‘(3) the issuer designates such bond for purposes of this 
section. 
‘‘(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The max-
imum aggregate face amount of bonds issued during any calendar 
year which may be designated under subsection (a) by any issuer 
26 USC 3402. 
26 USC 3402 
note. 
26 USC 142 note. 
26 USC 142. 
26 USC 56 note. 
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123 STAT. 356 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall not exceed the limitation amount allocated under subsection 
(d) for such calendar year to such issuer. 
‘‘(c) NATIONAL
LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—There is a national qualified school construction bond 
limitation for each calendar year. Such limitation is— 
‘‘(1) $11,000,000,000 for 2009, 
‘‘(2) $11,000,000,000 for 2010, and 
‘‘(3) except as provided in subsection (e), zero after 2010. 
‘‘(d) ALLOCATION OF LIMITATION.— 
‘‘(1) ALLOCATION AMONG STATES.—Except as provided in 
paragraph (2)(C), the limitation applicable under subsection 
(c) for any calendar year shall be allocated by the Secretary 
among the States in proportion to the respective amounts each 
such State is eligible to receive under section 1124 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6333) for the most recent fiscal year ending before such calendar 
year. The limitation amount allocated to a State under the 
preceding sentence shall be allocated by the State to issuers 
within such State. 
‘‘(2) 40 PERCENT OF LIMITATION ALLOCATED AMONG LARGEST 
SCHOOL DISTRICTS.— 
‘‘(A) IN
GENERAL.—40 percent of the limitation 
applicable under subsection (c) for any calendar year shall 
be allocated under subparagraph (B) by the Secretary 
among local educational agencies which are large local 
educational agencies for such year. 
‘‘(B) ALLOCATION FORMULA.—The amount to be allo-
cated under subparagraph (A) for any calendar year shall 
be allocated among large local educational agencies in 
proportion to the respective amounts each such agency 
received under section 1124 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6333) for the 
most recent fiscal year ending before such calendar year. 
‘‘(C) REDUCTION IN STATE ALLOCATION.—The allocation 
to any State under paragraph (1) shall be reduced by 
the aggregate amount of the allocations under this para-
graph to large local educational agencies within such State. 
‘‘(D) ALLOCATION OF UNUSED LIMITATION TO STATE.— 
The amount allocated under this paragraph to a large 
local educational agency for any calendar year may be 
reallocated by such agency to the State in which such 
agency is located for such calendar year. Any amount 
reallocated to a State under the preceding sentence may 
be allocated as provided in paragraph (1). 
‘‘(E) LARGE
LOCAL
EDUCATIONAL
AGENCY.—For pur-
poses of this paragraph, the term ‘large local educational 
agency’ means, with respect to a calendar year, any local 
educational agency if such agency is— 
‘‘(i) among the 100 local educational agencies with 
the largest numbers of children aged 5 through 17 
from families living below the poverty level, as deter-
mined by the Secretary using the most recent data 
available from the Department of Commerce that are 
satisfactory to the Secretary, or 
‘‘(ii) 1 of not more than 25 local educational agen-
cies (other than those described in clause (i)) that 
the Secretary of Education determines (based on the 
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123 STAT. 357 
PUBLIC LAW 111–5—FEB. 17, 2009 
most recent data available satisfactory to the Sec-
retary) are in particular need of assistance, based on 
a low level of resources for school construction, a high 
level of enrollment growth, or such other factors as 
the Secretary deems appropriate. 
‘‘(3) ALLOCATIONS TO CERTAIN POSSESSIONS.—The amount 
to be allocated under paragraph (1) to any possession of the 
United States other than Puerto Rico shall be the amount 
which would have been allocated if all allocations under para-
graph (1) were made on the basis of respective populations 
of individuals below the poverty line (as defined by the Office 
of Management and Budget). In making other allocations, the 
amount to be allocated under paragraph (1) shall be reduced 
by the aggregate amount allocated under this paragraph to 
possessions of the United States. 
‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In addition to the 
amounts 
otherwise 
allocated 
under 
this 
subsection, 
$200,000,000 for calendar year 2009, and $200,000,000 for cal-
endar year 2010, shall be allocated by the Secretary of the 
Interior for purposes of the construction, rehabilitation, and 
repair of schools funded by the Bureau of Indian Affairs. In 
the case of amounts allocated under the preceding sentence, 
Indian tribal governments (as defined in section 7701(a)(40)) 
shall be treated as qualified issuers for purposes of this sub-
chapter. 
‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for any calendar 
year— 
‘‘(1) the amount allocated under subsection (d) to any State, 
exceeds 
‘‘(2) the amount of bonds issued during such year which 
are designated under subsection (a) pursuant to such allocation, 
the limitation amount under such subsection for such State for 
the following calendar year shall be increased by the amount of 
such excess. A similar rule shall apply to the amounts allocated 
under subsection (d)(4).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended by striking 
‘‘or’’ at the end of subparagraph (C), by inserting ‘‘or’’ at the 
end of subparagraph (D), and by inserting after subparagraph 
(D) the following new subparagraph: 
‘‘(E) a qualified school construction bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2) is amended by 
striking ‘‘and’’ at the end of clause (iii), by striking the period 
at the end of clause (iv) and inserting ‘‘, and’’, and by adding 
at the end the following new clause: 
‘‘(v) in the case of a qualified school construction 
bond, a purpose specified in section 54F(a)(1).’’. 
(3) The table of sections for subpart I of part IV of sub-
chapter A of chapter 1 is amended by adding at the end the 
following new item: 
‘‘Sec. 54F. Qualified school construction bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
26 USC 54A note. 
26 USC 54. 
Applicability. 
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123 STAT. 358 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY 
BONDS. 
(a) IN GENERAL.—Section 54E(c)(1) is amended by striking ‘‘and 
2009’’ and inserting ‘‘and $1,400,000,000 for 2009 and 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to obligations issued after December 31, 2008. 
PART IV—BUILD AMERICA BONDS 
SEC. 1531. BUILD AMERICA BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chapter 1 is 
amended by adding at the end the following new subpart: 
‘‘Subpart J—Build America Bonds 
‘‘Sec. 54AA. Build America bonds. 
‘‘SEC. 54AA. BUILD AMERICA BONDS. 
‘‘(a) IN GENERAL.—If a taxpayer holds a build America bond 
on one or more interest payment dates of the bond during any 
taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal 
to the sum of the credits determined under subsection (b) with 
respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.—The amount of the credit determined 
under this subsection with respect to any interest payment date 
for a build America bond is 35 percent of the amount of interest 
payable by the issuer with respect to such date . 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under subsection (a) 
for any taxable year shall not exceed the excess of— 
‘‘(A) the sum of the regular tax liability (as defined 
in section 26(b)) plus the tax imposed by section 55, over 
‘‘(B) the sum of the credits allowable under this part 
(other than subpart C and this subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by para-
graph (1) for such taxable year, such excess shall be carried 
to the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year (determined before 
the application of paragraph (1) for such succeeding taxable 
year). 
‘‘(d) BUILD AMERICA BOND.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘build America bond’ means any obligation (other than a private 
activity bond) if— 
‘‘(A) the interest on such obligation would (but for 
this section) be excludable from gross income under section 
103, 
‘‘(B) such obligation is issued before January 1, 2011, 
and 
‘‘(C) the issuer makes an irrevocable election to have 
this section apply. 
‘‘(2) APPLICABLE RULES.—For purposes of applying para-
graph (1)— 
26 USC 54E note. 
26 USC 54. 
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123 STAT. 359 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) for purposes of section 149(b), a build America 
bond shall not be treated as federally guaranteed by reason 
of the credit allowed under subsection (a) or section 6431, 
‘‘(B) for purposes of section 148, the yield on a build 
America bond shall be determined without regard to the 
credit allowed under subsection (a), and 
‘‘(C) a bond shall not be treated as a build America 
bond if the issue price has more than a de minimis amount 
(determined under rules similar to the rules of section 
1273(a)(3)) of premium over the stated principal amount 
of the bond. 
‘‘(e) INTEREST PAYMENT DATE.—For purposes of this section, 
the term ‘interest payment date’ means any date on which the 
holder of record of the build America bond is entitled to a payment 
of interest under such bond. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) INTEREST
ON
BUILD
AMERICA
BONDS
INCLUDIBLE
IN 
GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.—For pur-
poses of this title, interest on any build America bond shall 
be includible in gross income. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules similar to the 
rules of subsections (f), (g), (h), and (i) of section 54A shall 
apply for purposes of the credit allowed under subsection (a). 
‘‘(g) SPECIAL RULE
FOR QUALIFIED BONDS ISSUED BEFORE 
2011.—In the case of a qualified bond issued before January 1, 
2011— 
‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.—In lieu of any 
credit allowed under this section with respect to such bond, 
the issuer of such bond shall be allowed a credit as provided 
in section 6431. 
‘‘(2) QUALIFIED BOND.—For purposes of this subsection, the 
term ‘qualified bond’ means any build America bond issued 
as part of an issue if— 
‘‘(A) 100 percent of the excess of— 
‘‘(i) the available project proceeds (as defined in 
section 54A) of such issue, over 
‘‘(ii) the amounts in a reasonably required reserve 
(within the meaning of section 150(a)(3)) with respect 
to such issue, 
are to be used for capital expenditures, and 
‘‘(B) the issuer makes an irrevocable election to have 
this subsection apply. 
‘‘(h) REGULATIONS.—The Secretary may prescribe such regula-
tions and other guidance as may be necessary or appropriate to 
carry out this section and section 6431.’’. 
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 2011.—Sub-
chapter B of chapter 65 is amended by adding at the end the 
following new section: 
‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER. 
‘‘(a) IN GENERAL.—In the case of a qualified bond issued before 
January 1, 2011, the issuer of such bond shall be allowed a credit 
with respect to each interest payment under such bond which 
shall be payable by the Secretary as provided in subsection (b). 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay (contem-
poraneously with each interest payment date under such bond) 
to the issuer of such bond (or to any person who makes such 
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123 STAT. 360 
PUBLIC LAW 111–5—FEB. 17, 2009 
interest payments on behalf of the issuer) 35 percent of the interest 
payable under such bond on such date. 
‘‘(c) APPLICATION OF ARBITRAGE RULES.—For purposes of section 
148, the yield on a qualified bond shall be reduced by the credit 
allowed under this section. 
‘‘(d) INTEREST PAYMENT DATE.—For purposes of this subsection, 
the term ‘interest payment date’ means each date on which interest 
is payable by the issuer under the terms of the bond. 
‘‘(e) QUALIFIED BOND.—For purposes of this subsection, the 
term ‘qualified bond’ has the meaning given such term in section 
54AA(g).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United States Code, is 
amended by striking ‘‘or 6428’’ and inserting ‘‘6428, or 6431,’’. 
(2) Section 54A(c)(1)(B) is amended by striking ‘‘subpart 
C’’ and inserting ‘‘subparts C and J’’. 
(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are 
each amended by striking ‘‘and I’’ and inserting ‘‘, I, and J’’. 
(4) Section 6211(b)(4)(A) is amended by striking ‘‘and 6428’’ 
and inserting ‘‘6428, and 6431’’. 
(5) Section 6401(b)(1) is amended by striking ‘‘and I’’ and 
inserting ‘‘I, and J’’. 
(6) The table of subparts for part IV of subchapter A 
of chapter 1 is amended by adding at the end the following 
new item: 
‘‘SUBPART J. BUILD AMERICA BONDS.’’. 
(7) The table of section for subchapter B of chapter 65 
is amended by adding at the end the following new item: 
‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’. 
(d) TRANSITIONAL COORDINATION WITH STATE LAW.—Except as 
otherwise provided by a State after the date of the enactment 
of this Act, the interest on any build America bond (as defined 
in section 54AA of the Internal Revenue Code of 1986, as added 
by this section) and the amount of any credit determined under 
such section with respect to such bond shall be treated for purposes 
of the income tax laws of such State as being exempt from Federal 
income tax. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
PART V—REGULATED INVESTMENT COMPA-
NIES ALLOWED TO PASS-THRU TAX CREDIT 
BOND CREDITS 
SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS- 
THRU TAX CREDIT BOND CREDITS. 
(a) IN GENERAL.—Part I of subchapter M of chapter 1 is 
amended by inserting after section 853 the following new section: 
‘‘SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHARE-
HOLDERS. 
‘‘(a) GENERAL RULE.—A regulated investment company— 
‘‘(1) which holds (directly or indirectly) one or more tax 
credit bonds on one or more applicable dates during the taxable 
year, and 
26 USC 54 note. 
26 USC 54AA 
note. 
26 USC 54. 
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123 STAT. 361 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(2) which meets the requirements of section 852(a) for 
the taxable year, 
may elect the application of this section with respect to credits 
allowable to the investment company during such taxable year 
with respect to such bonds. 
‘‘(b) EFFECT OF ELECTION.—If the election provided in sub-
section (a) is in effect for any taxable year— 
‘‘(1) the regulated investment company shall not be allowed 
any credits to which subsection (a) applies for such taxable 
year, 
‘‘(2) the regulated investment company shall— 
‘‘(A) include in gross income (as interest) for such tax-
able year an amount equal to the amount that such invest-
ment company would have included in gross income with 
respect to such credits if this section did not apply, and 
‘‘(B) increase the amount of the dividends paid deduc-
tion for such taxable year by the amount of such income, 
and 
‘‘(3) each shareholder of such investment company shall— 
‘‘(A) include in gross income an amount equal to such 
shareholder’s proportionate share of the interest income 
attributable to such credits, and 
‘‘(B) be allowed the shareholder’s proportionate share 
of such credits against the tax imposed by this chapter. 
‘‘(c) NOTICE
TO SHAREHOLDERS.—For purposes of subsection 
(b)(3), the shareholder’s proportionate share of— 
‘‘(1) credits described in subsection (a), and 
‘‘(2) gross income in respect of such credits, 
shall not exceed the amounts so designated by the regulated invest-
ment company in a written notice mailed to its shareholders not 
later than 60 days after the close of its taxable year. 
‘‘(d) MANNER
OF MAKING ELECTION
AND NOTIFYING SHARE-
HOLDERS.—The election provided in subsection (a) and the notice 
to shareholders required by subsection (c) shall be made in such 
manner as the Secretary may prescribe. 
‘‘(e) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) TAX
CREDIT
BOND.—The term ‘tax credit bond’ 
means— 
‘‘(i) a qualified tax credit bond (as defined in section 
54A(d)), 
‘‘(ii) a build America bond (as defined in section 
54AA(d)), and 
‘‘(iii) any bond for which a credit is allowable under 
subpart H of part IV of subchapter A of this chapter. 
‘‘(B) APPLICABLE
DATE.—The term ‘applicable date’ 
means— 
‘‘(i) in the case of a qualified tax credit bond or 
a bond described in subparagraph (A)(iii), any credit 
allowance date (as defined in section 54A(e)(1)), and 
‘‘(ii) in the case of a build America bond (as defined 
in section 54AA(d)), any interest payment date (as 
defined in section 54AA(e)). 
‘‘(2) STRIPPED TAX CREDIT BONDS.—If the ownership of a 
tax credit bond is separated from the credit with respect to 
such bond, subsection (a) shall be applied by reference to the 
Applicability. 
Deadline. 
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123 STAT. 362 
PUBLIC LAW 111–5—FEB. 17, 2009 
instruments evidencing the entitlement to the credit rather 
than the tax credit bond. 
‘‘(f) REGULATIONS, ETC.—The Secretary shall prescribe such 
regulations or other guidance as may be necessary or appropriate 
to carry out the purposes of this section, including methods for 
determining a shareholder’s proportionate share of credits.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 54(l) is amended by striking paragraph (4) and 
by redesignating paragraphs (5) and (6) as paragraphs (4) and 
(5), respectively. 
(2) Section 54A(h) is amended to read as follows: 
‘‘(h) BONDS HELD BY REAL ESTATE INVESTMENT TRUSTS.—If 
any qualified tax credit bond is held by a real estate investment 
trust, the credit determined under subsection (a) shall be allowed 
to beneficiaries of such trust (and any gross income included under 
subsection (f) with respect to such credit shall be distributed to 
such beneficiaries) under procedures prescribed by the Secretary.’’. 
(3) The table of sections for part I of subchapter M of 
chapter 1 is amended by inserting after the item relating to 
section 853 the following new item: 
‘‘Sec. 853A. Credits from tax credit bonds allowed to shareholders.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years ending after the date of the enactment 
of this Act. 
Subtitle G—Other Provisions 
SEC. 
1601. 
APPLICATION 
OF 
CERTAIN 
LABOR 
STANDARDS 
TO 
PROJECTS FINANCED WITH CERTAIN TAX-FAVORED 
BONDS. 
Subchapter IV of chapter 31 of the title 40, United States 
Code, shall apply to projects financed with the proceeds of— 
(1) any new clean renewable energy bond (as defined in 
section 54C of the Internal Revenue Code of 1986) issued after 
the date of the enactment of this Act, 
(2) any qualified energy conservation bond (as defined in 
section 54D of the Internal Revenue Code of 1986) issued 
after the date of the enactment of this Act, 
(3) any qualified zone academy bond (as defined in section 
54E of the Internal Revenue Code of 1986) issued after the 
date of the enactment of this Act, 
(4) any qualified school construction bond (as defined in 
section 54F of the Internal Revenue Code of 1986), and 
(5) any recovery zone economic development bond (as 
defined in section 1400U–2 of the Internal Revenue Code of 
1986). 
SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS 
IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCA-
TIONS FOR 2009. 
(a) IN GENERAL.—The Secretary of the Treasury shall make 
a grant to the housing credit agency of each State in an amount 
equal to such State’s low-income housing grant election amount. 
(b) LOW-INCOME HOUSING GRANT ELECTION AMOUNT.—For pur-
poses of this section, the term ‘‘low-income housing grant election 
amount’’ means, with respect to any State, such amount as the 
26 USC 42 note. 
26 USC 54C note. 
26 USC 54 note. 
Procedures. 
26 USC 54. 
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123 STAT. 363 
PUBLIC LAW 111–5—FEB. 17, 2009 
State may elect which does not exceed 85 percent of the product 
of— 
(1) the sum of— 
(A) 100 percent of the State housing credit ceiling 
for 2009 which is attributable to amounts described in 
clauses (i) and (iii) of section 42(h)(3)(C) of the Internal 
Revenue Code of 1986, and 
(B) 40 percent of the State housing credit ceiling for 
2009 which is attributable to amounts described in clauses 
(ii) and (iv) of such section, multiplied by 
(2) 10. 
(c) SUBAWARDS FOR LOW-INCOME BUILDINGS.— 
(1) IN GENERAL.—A State housing credit agency receiving 
a grant under this section shall use such grant to make sub-
awards to finance the construction or acquisition and rehabilita-
tion of qualified low-income buildings. A subaward under this 
section may be made to finance a qualified low-income building 
with or without an allocation under section 42 of the Internal 
Revenue Code of 1986, except that a State housing credit agency 
may make subawards to finance qualified low-income buildings 
without an allocation only if it makes a determination that 
such use will increase the total funds available to the State 
to build and rehabilitate affordable housing. In complying with 
such determination requirement, a State housing credit agency 
shall establish a process in which applicants that are allocated 
credits are required to demonstrate good faith efforts to obtain 
investment commitments for such credits before the agency 
makes such subawards. 
(2) SUBAWARDS SUBJECT TO SAME REQUIREMENTS AS LOW- 
INCOME
HOUSING
CREDIT
ALLOCATIONS.—Any such subaward 
with respect to any qualified low-income building shall be made 
in the same manner and shall be subject to the same limitations 
(including rent, income, and use restrictions on such building) 
as an allocation of housing credit dollar amount allocated by 
such State housing credit agency under section 42 of the 
Internal Revenue Code of 1986, except that such subawards 
shall not be limited by, or otherwise affect (except as provided 
in subsection (h)(3)(J) of such section), the State housing credit 
ceiling applicable to such agency. 
(3) COMPLIANCE
AND
ASSET
MANAGEMENT.—The State 
housing credit agency shall perform asset management func-
tions to ensure compliance with section 42 of the Internal 
Revenue Code of 1986 and the long-term viability of buildings 
funded by any subaward under this section. The State housing 
credit agency may collect reasonable fees from a subaward 
recipient to cover expenses associated with the performance 
of its duties under this paragraph. The State housing credit 
agency may retain an agent or other private contractor to 
satisfy the requirements of this paragraph. 
(4) RECAPTURE.—The State housing credit agency shall 
impose conditions or restrictions, including a requirement pro-
viding for recapture, on any subaward under this section so 
as to assure that the building with respect to which such 
subaward is made remains a qualified low-income building 
during the compliance period. Any such recapture shall be 
payable to the Secretary of the Treasury for deposit in the 
general fund of the Treasury and may be enforced by means 
Procedures. 
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123 STAT. 364 
PUBLIC LAW 111–5—FEB. 17, 2009 
of liens or such other methods as the Secretary of the Treasury 
determines appropriate. 
(d) RETURN OF UNUSED GRANT FUNDS.—Any grant funds not 
used to make subawards under this section before January 1, 2011, 
shall be returned to the Secretary of the Treasury on such date. 
Any subawards returned to the State housing credit agency on 
or after such date shall be promptly returned to the Secretary 
of the Treasury. Any amounts returned to the Secretary of the 
Treasury under this subsection shall be deposited in the general 
fund of the Treasury. 
(e) DEFINITIONS.—Any term used in this section which is also 
used in section 42 of the Internal Revenue Code of 1986 shall 
have the same meaning for purposes of this section as when used 
in such section 42. Any reference in this section to the Secretary 
of the Treasury shall be treated as including the Secretary’s dele-
gate. 
(f) APPROPRIATIONS.—There is hereby appropriated to the Sec-
retary of the Treasury such sums as may be necessary to carry 
out this section. 
SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF 
TAX CREDITS. 
(a) IN
GENERAL.—Upon application, the Secretary of the 
Treasury shall, subject to the requirements of this section, provide 
a grant to each person who places in service specified energy prop-
erty to reimburse such person for a portion of the expense of 
such property as provided in subsection (b). No grant shall be 
made under this section with respect to any property unless such 
property— 
(1) is placed in service during 2009 or 2010, or 
(2) is placed in service after 2010 and before the credit 
termination date with respect to such property, but only if 
the construction of such property began during 2009 or 2010. 
(b) GRANT AMOUNT.— 
(1) IN GENERAL.—The amount of the grant under subsection 
(a) with respect to any specified energy property shall be the 
applicable percentage of the basis of such property. 
(2) APPLICABLE PERCENTAGE.—For purposes of paragraph 
(1), the term ‘‘applicable percentage’’ means— 
(A) 30 percent in the case of any property described 
in paragraphs (1) through (4) of subsection (d), and 
(B) 10 percent in the case of any other property. 
(3) DOLLAR LIMITATIONS.—In the case of property described 
in paragraph (2), (6), or (7) of subsection (d), the amount 
of any grant under this section with respect to such property 
shall not exceed the limitation described in section 48(c)(1)(B), 
48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, 
respectively, with respect to such property. 
(c) TIME
FOR PAYMENT
OF GRANT.—The Secretary of the 
Treasury shall make payment of any grant under subsection (a) 
during the 60-day period beginning on the later of— 
(1) the date of the application for such grant, or 
(2) the date the specified energy property for which the 
grant is being made is placed in service. 
(d) SPECIFIED ENERGY PROPERTY.—For purposes of this section, 
the term ‘‘specified energy property’’ means any of the following: 
26 USC 48 note. 
Deadline. 
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123 STAT. 365 
PUBLIC LAW 111–5—FEB. 17, 2009 
(1) QUALIFIED
FACILITIES.—Any qualified property (as 
defined in section 48(a)(5)(D) of the Internal Revenue Code 
of 1986) which is part of a qualified facility (within the meaning 
of section 45 of such Code) described in paragraph (1), (2), 
(3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. 
(2) QUALIFIED FUEL CELL PROPERTY.—Any qualified fuel 
cell property (as defined in section 48(c)(1) of such Code). 
(3) SOLAR
PROPERTY.—Any property described in clause 
(i) or (ii) of section 48(a)(3)(A) of such Code. 
(4) QUALIFIED SMALL WIND ENERGY PROPERTY.—Any quali-
fied small wind energy property (as defined in section 48(c)(4) 
of such Code). 
(5) GEOTHERMAL
PROPERTY.—Any property described in 
clause (iii) of section 48(a)(3)(A) of such Code. 
(6) QUALIFIED
MICROTURBINE
PROPERTY.—Any qualified 
microturbine property (as defined in section 48(c)(2) of such 
Code). 
(7) COMBINED HEAT AND POWER SYSTEM PROPERTY.—Any 
combined heat and power system property (as defined in section 
48(c)(3) of such Code). 
(8) GEOTHERMAL
HEAT
PUMP
PROPERTY.—Any property 
described in clause (vii) of section 48(a)(3)(A) of such Code. 
Such term shall not include any property unless depreciation (or 
amortization in lieu of depreciation) is allowable with respect to 
such property. 
(e) CREDIT TERMINATION DATE.—For purposes of this section, 
the term ‘‘credit termination date’’ means— 
(1) in the case of any specified energy property which 
is part of a facility described in paragraph (1) of section 45(d) 
of the Internal Revenue Code of 1986, January 1, 2013, 
(2) in the case of any specified energy property which 
is part of a facility described in paragraph (2), (3), (4), (6), 
(7), (9), or (11) of section 45(d) of such Code, January 1, 2014, 
and 
(3) in the case of any specified energy property described 
in section 48 of such Code, January 1, 2017. 
In the case of any property which is described in paragraph (3) 
and also in another paragraph of this subsection, paragraph (3) 
shall apply with respect to such property. 
(f) APPLICATION OF CERTAIN RULES.—In making grants under 
this section, the Secretary of the Treasury shall apply rules similar 
to the rules of section 50 of the Internal Revenue Code of 1986. 
In applying such rules, if the property is disposed of, or otherwise 
ceases to be specified energy property, the Secretary of the Treasury 
shall provide for the recapture of the appropriate percentage of 
the grant amount in such manner as the Secretary of the Treasury 
determines appropriate. 
(g) EXCEPTION FOR CERTAIN NON-TAXPAYERS.—The Secretary 
of the Treasury shall not make any grant under this section to— 
(1) any Federal, State, or local government (or any political 
subdivision, agency, or instrumentality thereof), 
(2) any organization described in section 501(c) of the 
Internal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code, 
(3) any entity referred to in paragraph (4) of section 54(j) 
of such Code, or 
Applicability. 
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123 STAT. 366 
PUBLIC LAW 111–5—FEB. 17, 2009 
(4) any partnership or other pass-thru entity any partner 
(or other holder of an equity or profits interest) of which is 
described in paragraph (1), (2) or (3). 
(h) DEFINITIONS.—Terms used in this section which are also 
used in section 45 or 48 of the Internal Revenue Code of 1986 
shall have the same meaning for purposes of this section as when 
used in such section 45 or 48. Any reference in this section to 
the Secretary of the Treasury shall be treated as including the 
Secretary’s delegate. 
(i) APPROPRIATIONS.—There is hereby appropriated to the Sec-
retary of the Treasury such sums as may be necessary to carry 
out this section. 
(j) TERMINATION.—The Secretary of the Treasury shall not make 
any grant to any person under this section unless the application 
of such person for such grant is received before October 1, 2011. 
SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT. 
Subsection (b) of section 3101 of title 31, United States Code, 
is amended by striking out the dollar limitation contained in such 
subsection and inserting ‘‘$12,104,000,000,000’’. 
Subtitle H—Prohibition on Collection of 
Certain Payments Made Under the Con-
tinued Dumping and Subsidy Offset Act 
of 2000 
SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS 
MADE UNDER THE CONTINUED DUMPING AND SUBSIDY 
OFFSET ACT OF 2000. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
neither the Secretary of Homeland Security nor any other person 
may— 
(1) require repayment of, or attempt in any other way 
to recoup, any payments described in subsection (b); or 
(2) offset any past, current, or future distributions of anti-
dumping or countervailing duties assessed with respect to 
imports from countries that are not parties to the North Amer-
ican Free Trade Agreement in an attempt to recoup any pay-
ments described in subsection (b). 
(b) PAYMENTS DESCRIBED.—Payments described in this sub-
section are payments of antidumping or countervailing duties made 
pursuant to the Continued Dumping and Subsidy Offset Act of 
2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed 
by subtitle F of title VII of the Deficit Reduction Act of 2005 
(Public Law 109–171; 120 Stat. 154))) that were— 
(1) assessed and paid on imports of goods from countries 
that are parties to the North American Free Trade Agreement; 
and 
(2) distributed on or after January 1, 2001, and before 
January 1, 2006. 
(c) PAYMENT OF FUNDS COLLECTED OR WITHHELD.—Not later 
than the date that is 60 days after the date of the enactment 
of this Act, the Secretary of Homeland Security shall— 
(1) refund any repayments, or any other recoupment, of 
payments described in subsection (b); and 
Deadline. 
19 USC 1675c 
note. 
31 USC 3101. 
Deadline. 
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123 STAT. 367 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) fully distribute any antidumping or countervailing 
duties that the U.S. Customs and Border Protection is with-
holding as an offset as described in subsection (a)(2). 
(d) LIMITATION.—Nothing in this section shall be construed 
to prevent the Secretary of Homeland Security, or any other person, 
from requiring repayment of, or attempting to otherwise recoup, 
any payments described in subsection (b) as a result of— 
(1) a finding of false statements or other misconduct by 
a recipient of such a payment; or 
(2) the reliquidation of an entry with respect to which 
such a payment was made. 
Subtitle I—Trade Adjustment Assistance 
SEC. 1800. SHORT TITLE. 
This subtitle may be cited as the ‘‘Trade and Globalization 
Adjustment Assistance Act of 2009’’. 
PART I—TRADE ADJUSTMENT ASSISTANCE 
FOR WORKERS 
Subpart A—Trade Adjustment Assistance for 
Service Sector Workers 
SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO 
SERVICE 
SECTOR 
AND 
PUBLIC 
AGENCY 
WORKERS; 
SHIFTS IN PRODUCTION. 
(a) DEFINITIONS.—Section 247 of the Trade Act of 1974 (19 
U.S.C. 2319) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘or appropriate subdivision of a firm’’; 
and 
(B) by striking ‘‘or subdivision’’; 
(2) in paragraph (2), by striking ‘‘employment—’’ and all 
that follows and inserting ‘‘employment, has been totally or 
partially separated from such employment.’’; 
(3) by inserting after paragraph (2) the following: 
‘‘(3) Subject to section 222(d)(5), the term ‘firm’ means— 
‘‘(A) a firm, including an agricultural firm, service 
sector firm, or public agency; or 
‘‘(B) an appropriate subdivision thereof.’’; 
(4) by inserting after paragraph (6) the following: 
‘‘(7) The term ‘public agency’ means a department or agency 
of a State or local government or of the Federal Government, 
or a subdivision thereof.’’; 
(5) in paragraph (11), by striking ‘‘, or in a subdivision 
of which,’’; and 
(6) by adding at the end the following: 
‘‘(18) The term ‘service sector firm’ means a firm engaged 
in the business of supplying services.’’. 
(b) GROUP ELIGIBILITY REQUIREMENTS.—Section 222 of the 
Trade Act of 1974 (19 U.S.C. 2272) is amended— 
(1) in subsection (a)(2)— 
(A) by amending subparagraph (A)(ii) to read as fol-
lows: 
Trade and 
Globalization 
Adjustment 
Assistance Act 
of 2009. 
19 USC 2101 
note. 
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123 STAT. 368 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii)(I) imports of articles or services like or directly 
competitive with articles produced or services supplied by such 
firm have increased; 
‘‘(II) imports of articles like or directly competitive with 
articles— 
‘‘(aa) into which one or more component parts produced 
by such firm are directly incorporated, or 
‘‘(bb) which are produced directly using services sup-
plied by such firm, 
have increased; or 
‘‘(III) imports of articles directly incorporating one or more 
component parts produced outside the United States that are 
like or directly competitive with imports of articles incor-
porating one or more component parts produced by such firm 
have increased; and’’; and 
(B) by amending subparagraph (B) to read as follows: 
‘‘(B)(i)(I) there has been a shift by such workers’ firm 
to a foreign country in the production of articles or the supply 
of services like or directly competitive with articles which are 
produced or services which are supplied by such firm; or 
‘‘(II) such workers’ firm has acquired from a foreign country 
articles or services that are like or directly competitive with 
articles which are produced or services which are supplied 
by such firm; and 
‘‘(ii) the shift described in clause (i)(I) or the acquisition 
of articles or services described in clause (i)(II) contributed 
importantly to such workers’ separation or threat of separa-
tion.’’; 
(2) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(3) by inserting after subsection (a) the following: 
‘‘(b) 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 Sec-
retary 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 importantly to such workers’ separation or threat 
of separation.’’. 
(c) BASIS FOR SECRETARY’S DETERMINATIONS.—Section 222 of 
the Trade Act of 1974 (19 U.S.C. 2272), as amended, is further 
amended by adding at the end the following: 
‘‘(e) BASIS FOR SECRETARY’S DETERMINATIONS.— 
‘‘(1) IN
GENERAL.—The Secretary shall, in determining 
whether to certify a group of workers under section 223, obtain 
from the workers’ firm, or a customer of the workers’ firm, 
information the Secretary determines to be necessary to make 
the certification, through questionnaires and in such other 
manner as the Secretary determines appropriate. 
Certification. 
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123 STAT. 369 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(2) ADDITIONAL INFORMATION.—The Secretary may seek 
additional information to determine whether to certify a group 
of workers under subsection (a), (b), or (c)— 
‘‘(A) by contacting— 
‘‘(i) officials or employees of the workers’ firm; 
‘‘(ii) officials of customers of the workers’ firm; 
‘‘(iii) officials of certified or recognized unions or 
other duly authorized representatives of the group of 
workers; or 
‘‘(iv) one-stop operators or one-stop partners (as 
defined in section 101 of the Workforce Investment 
Act of 1998 (29 U.S.C. 2801)); or 
‘‘(B) by using other available sources of information. 
‘‘(3) VERIFICATION OF INFORMATION.— 
‘‘(A) CERTIFICATION.—The Secretary shall require a 
firm or customer to certify— 
‘‘(i) all information obtained under paragraph (1) 
from the firm or customer (as the case may be) through 
questionnaires; and 
‘‘(ii) all other information obtained under para-
graph (1) from the firm or customer (as the case may 
be) on which the Secretary relies in making a deter-
mination under section 223, unless the Secretary has 
a reasonable basis for determining that such informa-
tion is accurate and complete without being certified. 
‘‘(B) USE OF SUBPOENAS.—The Secretary shall require 
the workers’ firm or a customer of the workers’ firm to 
provide information requested by the Secretary under para-
graph (1) by subpoena pursuant to section 249 if the firm 
or customer (as the case may be) fails to provide the 
information within 20 days after the date of the Secretary’s 
request, unless the firm or customer (as the case may 
be) demonstrates to the satisfaction of the Secretary that 
the firm or customer (as the case may be) will provide 
the information within a reasonable period of time. 
‘‘(C) PROTECTION OF CONFIDENTIAL INFORMATION.—The 
Secretary may not release information obtained under para-
graph (1) that the Secretary considers to be confidential 
business information unless the firm or customer (as the 
case may be) submitting the confidential business informa-
tion had notice, at the time of submission, that the informa-
tion would be released by the Secretary, or the firm or 
customer (as the case may be) subsequently consents to 
the release of the information. Nothing in this subpara-
graph shall be construed to prohibit the Secretary from 
providing such confidential business information to a court 
in camera or to another party under a protective order 
issued by a court.’’. 
(d) PENALTIES.—Section 244 of the Trade Act of 1974 (19 U.S.C. 
2316) is amended to read as follows: 
‘‘SEC. 244. PENALTIES. 
‘‘Any person who— 
‘‘(1) makes a false statement of a material fact knowing 
it to be false, or knowingly fails to disclose a material fact, 
for the purpose of obtaining or increasing for that person or 
for any other person any payment authorized to be furnished 
Deadline. 
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123 STAT. 370 
PUBLIC LAW 111–5—FEB. 17, 2009 
under this chapter or pursuant to an agreement under section 
239, or 
‘‘(2) makes a false statement of a material fact knowing 
it to be false, or knowingly fails to disclose a material fact, 
when providing information to the Secretary during an inves-
tigation of a petition under section 221, 
shall be imprisoned for not more than one year, or fined under 
title 18, United States Code, or both.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 
2271(a)) is amended— 
(A) in paragraph (1)— 
(i) in the matter preceding subparagraph (A)— 
(I) by striking ‘‘Secretary’’ and inserting ‘‘Sec-
retary of Labor’’; and 
(II) by striking ‘‘or subdivision’’ and inserting 
‘‘(as defined in section 247)’’; and 
(ii) in subparagraph (A), by striking ‘‘(including 
workers in an agricultural firm or subdivision of any 
agricultural firm)’’; 
(B) in paragraph (2)(A), by striking ‘‘rapid response 
assistance’’ and inserting ‘‘rapid response activities’’; and 
(C) in paragraph (3), by inserting ‘‘and on the website 
of the Department of Labor’’ after ‘‘Federal Register’’. 
(2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), 
as amended, is further amended— 
(A) by striking ‘‘(including workers in any agricultural 
firm or subdivision of an agricultural firm)’’ each place 
it appears; 
(B) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘, or an appropriate 
subdivision of the firm,’’; and 
(ii) in paragraph (2), by striking ‘‘or subdivision’’ 
each place it appears; 
(C) in subsection (c) (as redesignated)— 
(i) in paragraph (2)— 
(I) by striking ‘‘(or subdivision)’’ each place 
it appears; 
(II) by inserting ‘‘or service’’ after ‘‘the article’’; 
and 
(III) by striking ‘‘(c) (3)’’ and inserting ‘‘(d) 
(3)’’; and 
(ii) in paragraph (3), by striking ‘‘(or subdivision)’’ 
each place it appears; and 
(D) in subsection (d) (as redesignated)— 
(i) by striking ‘‘For purposes’’ and inserting 
‘‘DEFINITIONS.—For purposes’’; 
(ii) in paragraph (2), by striking ‘‘, or appropriate 
subdivision of a firm,’’ each place it appears; 
(iii) by amending paragraph (3) to read as follows: 
‘‘(3) DOWNSTREAM PRODUCER.— 
‘‘(A) IN
GENERAL.—The term ‘downstream producer’ 
means a firm that performs additional, value-added produc-
tion processes or services directly for another firm for arti-
cles or services with respect to which a group of workers 
in such other firm has been certified under subsection 
(a). 
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123 STAT. 371 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) VALUE-ADDED PRODUCTION PROCESSES OR SERV-
ICES.—For purposes of subparagraph (A), value-added 
production processes or services include final assembly, 
finishing, testing, packaging, or maintenance or transpor-
tation services.’’; 
(iv) in paragraph (4)— 
(I) by striking ‘‘(or subdivision)’’; and 
(II) by inserting ‘‘, or services, used in the 
production of articles or in the supply of services, 
as the case may be,’’ after ‘‘for articles’’; and 
(v) by adding at the end the following: 
‘‘(5) REFERENCE TO FIRM.—For purposes of subsection (a), 
the term ‘firm’ does not include a public agency.’’. 
(3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 
2291(a)(2)) is amended— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘or subdivision of a firm’’; and 
(B) in subparagraph (C), by striking ‘‘or subdivision’’. 
SEC. 1802. SEPARATE BASIS FOR CERTIFICATION. 
Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as 
amended, is further amended by adding at the end the following: 
‘‘(f) FIRMS IDENTIFIED BY THE INTERNATIONAL TRADE COMMIS-
SION.—Notwithstanding any other provision of this chapter, a group 
of workers covered by a petition filed under section 221 shall 
be certified under subsection (a) as eligible to apply for adjustment 
assistance under this chapter if— 
‘‘(1) the workers’ firm is publicly identified by name by 
the International Trade Commission as a member of a domestic 
industry in an investigation resulting in— 
‘‘(A) an affirmative determination of serious injury or 
threat thereof under section 202(b)(1); 
‘‘(B) an affirmative determination of market disruption 
or threat thereof under section 421(b)(1); or 
‘‘(C) an affirmative final determination of material 
injury or threat thereof under section 705(b)(1)(A) or 
735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 
1671d(b)(1)(A) and 1673d(b)(1)(A)); 
‘‘(2) the petition is filed during the one-year period begin-
ning on the date on which— 
‘‘(A) a summary of the report submitted to the Presi-
dent by the International Trade Commission under section 
202(f)(1) with respect to the affirmative determination 
described in paragraph (1)(A) is published in the Federal 
Register under section 202(f)(3); or 
‘‘(B) notice of an affirmative determination described 
in subparagraph (B) or (C) of paragraph (1) is published 
in the Federal Register; and 
‘‘(3) the workers have become totally or partially separated 
from the workers’ firm within— 
‘‘(A) the one-year period described in paragraph (2); 
or 
‘‘(B) notwithstanding section 223(b), the one-year 
period preceding the one-year period described in para-
graph (2).’’. 
Time period. 
Notice. 
Federal Register, 
publication. 
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123 STAT. 372 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR. 
Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
amended— 
(1) in subsection (b), by striking ‘‘or appropriate subdivision 
of the firm before his application’’ and all that follows and 
inserting ‘‘before the worker’s application under section 231 
occurred more than one year before the date of the petition 
on which such certification was granted.’’; 
(2) in subsection (c), by striking ‘‘together with his reasons’’ 
and inserting ‘‘and on the website of the Department of Labor, 
together with the Secretary’s reasons’’; 
(3) in subsection (d)— 
(A) by striking ‘‘or subdivision of the firm’’ and all 
that follows through ‘‘he shall’’ and inserting ‘‘, that total 
or partial separations from such firm are no longer attrib-
utable to the conditions specified in section 222, the Sec-
retary shall’’; and 
(B) by striking ‘‘together with his reasons’’ and 
inserting ‘‘and on the website of the Department of Labor, 
together with the Secretary’s reasons’’; and 
(4) by adding at the end the following: 
‘‘(e) STANDARDS FOR INVESTIGATIONS AND DETERMINATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall establish standards, 
including data requirements, for investigations of petitions filed 
under section 221 and criteria for making determinations under 
subsection (a). 
‘‘(2) CONSULTATIONS.—Not less than 90 days before issuing 
a final rule with respect to the standards required under para-
graph (1), the Secretary shall consult with the Committee on 
Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives with respect to such rule.’’. 
SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE 
SECTOR. 
(a) IN GENERAL.—Section 282 of the Trade Act of 1974 (19 
U.S.C. 2393) is amended— 
(1) in the heading, by striking ‘‘SYSTEM’’ and inserting 
‘‘AND DATA COLLECTION’’; 
(2) in the first sentence— 
(A) by striking ‘‘The Secretary’’ and inserting ‘‘(a) MON-
ITORING PROGRAMS.—The Secretary’’; 
(B) by inserting ‘‘and services’’ after ‘‘imports of arti-
cles’’; 
(C) by inserting ‘‘and domestic supply of services’’ after 
‘‘domestic production’’; 
(D) by inserting ‘‘or supplying services’’ after ‘‘pro-
ducing articles’’; and 
(E) by inserting ‘‘, or supply of services,’’ after ‘‘changes 
in production’’; and 
(3) by adding at the end the following: 
‘‘(b) COLLECTION OF DATA AND REPORTS ON SERVICE SECTOR.— 
‘‘(1) SECRETARY OF LABOR.—Not later than 90 days after 
the date of the enactment of this subsection, the Secretary 
of Labor shall implement a system to collect data on adversely 
affected workers employed in the service sector that includes 
the number of workers by State and industry, and by the 
System. 
Deadline. 
Criteria. 
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123 STAT. 373 
PUBLIC LAW 111–5—FEB. 17, 2009 
cause of the dislocation of each worker, as identified in the 
certification. 
‘‘(2) SECRETARY OF COMMERCE.—Not later than 1 year after 
such date of enactment, the Secretary of Commerce shall, in 
consultation with the Secretary of Labor, conduct a study and 
submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives 
a report on ways to improve the timeliness and coverage of 
data on trade in services, including methods to identify 
increased imports due to the relocation of United States firms 
to foreign countries, and increased imports due to United States 
firms acquiring services from firms in foreign countries.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
282 and inserting the following: 
‘‘Sec. 282. Trade monitoring and data collection.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
Subpart B—Industry Notifications Following 
Certain Affirmative Determinations 
SEC. 
1811. 
NOTIFICATIONS 
FOLLOWING 
CERTAIN 
AFFIRMATIVE 
DETERMINATIONS. 
(a) IN GENERAL.—Section 224 of the Trade Act of 1974 (19 
U.S.C. 2274) is amended— 
(1) by amending the heading to read as follows: 
‘‘SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMA-
TIVE DETERMINATIONS; INDUSTRY NOTIFICATION OF 
ASSISTANCE.’’; 
(2) in subsection (a), by striking ‘‘Whenever’’ and inserting 
‘‘STUDY OF DOMESTIC INDUSTRY.—Whenever’’; 
(3) in subsection (b)— 
(A) by striking ‘‘The report’’ and inserting ‘‘REPORT 
BY THE SECRETARY.—The report’’; and 
(B) by inserting ‘‘and on the website of the Department 
of Labor’’ after ‘‘Federal Register’’; and 
(4) by adding at the end the following: 
‘‘(c) NOTIFICATIONS FOLLOWING AFFIRMATIVE GLOBAL SAFE-
GUARD DETERMINATIONS.—Upon making an affirmative determina-
tion under section 202(b)(1), the Commission shall promptly notify 
the Secretary of Labor and the Secretary of Commerce and, in 
the case of a determination with respect to an agricultural com-
modity, the Secretary of Agriculture, of the determination. 
‘‘(d) NOTIFICATIONS FOLLOWING AFFIRMATIVE BILATERAL
OR 
PLURILATERAL SAFEGUARD DETERMINATIONS.— 
‘‘(1) NOTIFICATIONS OF DETERMINATIONS OF MARKET DISRUP-
TION.—Upon making an affirmative determination under sec-
tion 421(b)(1), the Commission shall promptly notify the Sec-
retary of Labor and the Secretary of Commerce and, in the 
case of a determination with respect to an agricultural com-
modity, the Secretary of Agriculture, of the determination. 
‘‘(2) NOTIFICATIONS
REGARDING
TRADE
AGREEMENT
SAFE-
GUARDS.—Upon making an affirmative determination in a pro-
ceeding initiated under an applicable safeguard provision (other 
than a provision described in paragraph (3)) that is enacted 
19 USC 2393 
note. 
Study. 
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123 STAT. 374 
PUBLIC LAW 111–5—FEB. 17, 2009 
to implement a trade agreement to which the United States 
is a party, the Commission shall promptly notify the Secretary 
of Labor and the Secretary of Commerce and, in the case 
of a determination with respect to an agricultural commodity, 
the Secretary of Agriculture, of the determination. 
‘‘(3) NOTIFICATIONS REGARDING TEXTILE AND APPAREL SAFE-
GUARDS.—Upon making an affirmative determination in a pro-
ceeding initiated under any safeguard provision relating to 
textile and apparel articles that is enacted to implement a 
trade agreement to which the United States is a party, the 
President shall promptly notify the Secretary of Labor and 
the Secretary of Commerce of the determination. 
‘‘(e) NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETER-
MINATIONS UNDER TITLE VII OF THE TARIFF ACT OF 1930.—Upon 
making an affirmative determination under section 705(b)(1)(A) 
or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) 
and 1673d(b)(1)(A)), the Commission shall promptly notify the Sec-
retary of Labor and the Secretary of Commerce and, in the case 
of a determination with respect to an agricultural commodity, the 
Secretary of Agriculture, of the determination. 
‘‘(f) INDUSTRY NOTIFICATION OF ASSISTANCE.—Upon receiving 
a notification of a determination under subsection (c), (d), or (e) 
with respect to a domestic industry— 
‘‘(1) the Secretary of Labor shall— 
‘‘(A) notify the representatives of the domestic industry 
affected by the determination, firms publicly identified by 
name during the course of the proceeding relating to the 
determination, and any certified or recognized union or, 
to the extent practicable, other duly authorized representa-
tive of workers employed by such representatives of the 
domestic industry, of— 
‘‘(i) the allowances, training, employment services, 
and other benefits available under this chapter; 
‘‘(ii) the manner in which to file a petition and 
apply for such benefits; and 
‘‘(iii) the availability of assistance in filing such 
petitions; 
‘‘(B) notify the Governor of each State in which one 
or more firms in the industry described in subparagraph 
(A) are located of the Commission’s determination and the 
identity of the firms; and 
‘‘(C) upon request, provide any assistance that is nec-
essary to file a petition under section 221; 
‘‘(2) the Secretary of Commerce shall— 
‘‘(A) notify the representatives of the domestic industry 
affected by the determination and any firms publicly identi-
fied by name during the course of the proceeding relating 
to the determination of— 
‘‘(i) the benefits available under chapter 3; 
‘‘(ii) the manner in which to file a petition and 
apply for such benefits; and 
‘‘(iii) the availability of assistance in filing such 
petitions; and 
‘‘(B) upon request, provide any assistance that is nec-
essary to file a petition under section 251; and 
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123 STAT. 375 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(3) in the case of an affirmative determination based upon 
imports of an agricultural commodity, the Secretary of Agri-
culture shall— 
‘‘(A) notify representatives of the domestic industry 
affected by the determination and any agricultural com-
modity producers publicly identified by name during the 
course of the proceeding relating to the determination of— 
‘‘(i) the benefits available under chapter 6; 
‘‘(ii) the manner in which to file a petition and 
apply for such benefits; and 
‘‘(iii) the availability of assistance in filing such 
petitions; and 
‘‘(B) upon request, provide any assistance that is nec-
essary to file a petition under section 292. 
‘‘(g) REPRESENTATIVES OF THE DOMESTIC INDUSTRY.—For pur-
poses of subsection (f), the term ‘representatives of the domestic 
industry’ means the persons that petitioned for relief in connection 
with— 
‘‘(1) a proceeding under section 202 or 421 of this Act; 
‘‘(2) a proceeding under section 702(b) or 732(b) of the 
Tariff Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or 
‘‘(3) any safeguard investigation described in subsection 
(d)(2) or (d)(3).’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
224 and inserting the following: 
‘‘Sec. 224. Study and notifications regarding certain affirmative determinations; in-
dustry notification of assistance.’’. 
SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE. 
Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is 
amended by adding at the end the following: 
‘‘(c) Upon issuing a certification under section 223, the Secretary 
shall notify the Secretary of Commerce of the identity of each 
firm covered by the certification.’’. 
Subpart C—Program Benefits 
SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS. 
(a) IN GENERAL.—Section 231(a)(5)(A)(ii) of the Trade Act of 
1974 (19 U.S.C. 2291 (a)(5)(A)(ii)) is amended— 
(1) by striking subclauses (I) and (II) and inserting the 
following: 
‘‘(I) in the case of a worker whose most recent 
total separation from adversely affected employment 
that meets the requirements of paragraphs (1) and 
(2) occurs after the date on which the Secretary issues 
a certification covering the worker, the last day of 
the 26th week after such total separation, 
‘‘(II) in the case of a worker whose most recent 
total separation from adversely affected employment 
that meets the requirements of paragraphs (1) and 
(2) occurs before the date on which the Secretary issues 
a certification covering the worker, the last day of 
the 26th week after the date of such certification,’’; 
(2) in subclause (III)— 
Certification. 
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123 STAT. 376 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) by striking ‘‘later of the dates specified in subclause 
(I) or (II)’’ and inserting ‘‘date specified in subclause (I) 
or (II), as the case may be’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) by redesignating subclause (IV) as subclause (V); and 
(4) by inserting after subclause (III) the following: 
‘‘(IV) in the case of a worker who fails to enroll 
by the date required by subclause (I), (II), or (III), 
as the case may be, due to the failure to provide 
the worker with timely information regarding the date 
specified in such subclause, the last day of a period 
determined by the Secretary, or’’. 
(b) WAIVERS OF TRAINING REQUIREMENTS.—Section 231(c) of 
the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘The worker possesses’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—The worker possesses’’; and 
(B) by adding at the end the following: 
‘‘(ii) MARKETABLE SKILLS DEFINED.—For purposes 
of clause (i), the term ‘marketable skills’ may include 
the possession of a postgraduate degree from an 
institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 
1002)) or an equivalent institution, or the possession 
of an equivalent postgraduate certification in a special-
ized field.’’; 
(2) in paragraph (2)(A), by striking ‘‘A waiver’’ and inserting 
‘‘Except as provided in paragraph (3)(B), a waiver’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘Pursuant to an 
agreement under section 239, the Secretary may authorize 
a’’ and inserting ‘‘An agreement under section 239 shall 
authorize a’’; 
(B) by redesignating subparagraph (B) as subpara-
graph (C); and 
(C) by inserting after subparagraph (A) the following: 
‘‘(B) REVIEW OF WAIVERS.—An agreement under section 
239 shall require a cooperating State to review each waiver 
issued by the State under subparagraph (A), (B), (D), (E), 
or (F) of paragraph (1)— 
‘‘(i) 3 months after the date on which the State 
issues the waiver; and 
‘‘(ii) on a monthly basis thereafter.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), 
as amended, is further amended— 
(A) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘more than 60 days’’ and all that follows 
through ‘‘section 221’’ and inserting ‘‘on or after the date 
of such certification’’; and 
(B) in subsection (b)— 
(i) by striking paragraph (2); and 
(ii) in paragraph (1)— 
(I) by striking ‘‘(1)’’; 
(II) by redesignating subparagraphs (A) and 
(B) as paragraphs (1) and (2), respectively; 
Deadlines. 
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123 STAT. 377 
PUBLIC LAW 111–5—FEB. 17, 2009 
(III) by redesignating clauses (i) and (ii) as 
subparagraphs (A) and (B), respectively; and 
(IV) by redesignating subclauses (I) and (II) 
as clauses (i) and (ii), respectively. 
(2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) 
is amended— 
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) through (g) as sub-
sections (b) through (f), respectively. 
SEC. 1822. WEEKLY AMOUNTS. 
Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘subsections (b) and (c)’’ and inserting 
‘‘subsections (b), (c), and (d)’’; 
(B) by striking ‘‘total unemployment’’ the first place 
it appears and inserting ‘‘unemployment’’; and 
(C) in paragraph (2), by inserting before the period 
the following: ‘‘, except that in the case of an adversely 
affected worker who is participating in training under this 
chapter, such income shall not include earnings from work 
for such week that are equal to or less than the most 
recent weekly benefit amount of the unemployment insur-
ance payable to the worker for a week of total unemploy-
ment preceding the worker’s first exhaustion of unemploy-
ment insurance (as determined for purposes of section 
231(a)(3)(B))’’; and 
(2) by adding at the end the following: 
‘‘(d) ELECTION
OF
TRADE
READJUSTMENT
ALLOWANCE
OR 
UNEMPLOYMENT INSURANCE.—Notwithstanding section 231(a)(3)(B), 
an adversely affected worker may elect to receive a trade readjust-
ment allowance instead of unemployment insurance during any 
week with respect to which the worker— 
‘‘(1) is entitled to receive unemployment insurance as a 
result of the establishment by the worker of a new benefit 
year under State law, based in whole or in part upon part- 
time or short-term employment in which the worker engaged 
after the worker’s most recent total separation from adversely 
affected employment; and 
‘‘(2) is otherwise entitled to a trade readjustment allow-
ance.’’. 
SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; 
ALLOWANCES FOR EXTENDED TRAINING AND BREAKS 
IN TRAINING. 
Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) 
is amended— 
(1) in paragraph (2), by inserting ‘‘under paragraph (1)’’ 
after ‘‘trade readjustment allowance’’; and 
(2) in paragraph (3)— 
(A) in the matter preceding subparagraph (A)— 
(i) by striking ‘‘training approved for him’’ and 
inserting ‘‘a training program approved for the worker’’; 
(ii) by striking ‘‘52 additional weeks’’ and inserting 
‘‘78 additional weeks’’; and 
(iii) by striking ‘‘52-week’’ and inserting ‘‘91-week’’; 
and 
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123 STAT. 378 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) in the matter following subparagraph (B), by 
striking ‘‘52-week’’ and inserting ‘‘91-week’’. 
SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY 
PERIOD. 
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as 
amended, is further amended by adding at the end the following: 
‘‘(g) SPECIAL RULE FOR CALCULATING SEPARATION.—Notwith-
standing any other provision of this chapter, any period during 
which a judicial or administrative appeal is pending with respect 
to the denial by the Secretary of a petition under section 223 
shall not be counted for purposes of calculating the period of separa-
tion under subsection (a)(2). 
‘‘(h) SPECIAL RULE FOR JUSTIFIABLE CAUSE.—If the Secretary 
determines that there is justifiable cause, the Secretary may extend 
the period during which trade readjustment allowances are payable 
to an adversely affected worker under paragraphs (2) and (3) of 
subsection (a) (but not the maximum amounts of such allowances 
that are payable under this section). 
‘‘(i) SPECIAL RULE WITH RESPECT TO MILITARY SERVICE.— 
‘‘(1) IN GENERAL.—Notwithstanding any other provision of 
this chapter, the Secretary may waive any requirement of this 
chapter that the Secretary determines is necessary to ensure 
that an adversely affected worker who is a member of a reserve 
component of the Armed Forces and serves a period of duty 
described in paragraph (2) is eligible to receive a trade readjust-
ment allowance, training, and other benefits under this chapter 
in the same manner and to the same extent as if the worker 
had not served the period of duty. 
‘‘(2) PERIOD OF DUTY DESCRIBED.—An adversely affected 
worker serves a period of duty described in this paragraph 
if, before completing training under section 236, the worker— 
‘‘(A) serves on active duty for a period of more than 
30 days under a call or order to active duty of more than 
30 days; or 
‘‘(B) in the case of a member of the Army National 
Guard of the United States or Air National Guard of the 
United States, performs full-time National Guard duty 
under section 502(f) of title 32, United States Code, for 
30 consecutive days or more when authorized by the Presi-
dent or the Secretary of Defense for the purpose of 
responding to a national emergency declared by the Presi-
dent and supported by Federal funds.’’. 
SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD 
CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING 
OF CLAIMS. 
Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is 
amended— 
(1) by striking ‘‘Except where inconsistent’’ and inserting 
‘‘(a) IN GENERAL.—Except where inconsistent’’; and 
(2) by adding at the end the following: 
‘‘(b) SPECIAL RULE WITH RESPECT TO STATE LAWS AND REGULA-
TIONS ON GOOD CAUSE FOR WAIVER OF TIME LIMITS OR LATE FILING 
OF CLAIMS.—Any law, regulation, policy, or practice of a cooperating 
State that allows for a waiver for good cause of any time limitation 
relating to the administration of the State unemployment insurance 
law shall, in the administration of the program under this chapter 
Applicability. 
Waiver authority. 
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123 STAT. 379 
PUBLIC LAW 111–5—FEB. 17, 2009 
by the State, apply to any time limitation with respect to an 
application for a trade readjustment allowance or enrollment in 
training under this chapter.’’. 
SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES. 
(a) IN GENERAL.—Section 235 of the Trade Act of 1974 (19 
U.S.C. 2295) is amended to read as follows: 
‘‘SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES. 
‘‘The Secretary shall make available, directly or through agree-
ments with States under section 239, to adversely affected workers 
and adversely affected incumbent workers covered by a certification 
under subchapter A of this chapter the following employment and 
case management services: 
‘‘(1) Comprehensive and specialized assessment of skill 
levels and service needs, including through— 
‘‘(A) diagnostic testing and use of other assessment 
tools; and 
‘‘(B) in-depth interviewing and evaluation to identify 
employment barriers and appropriate employment goals. 
‘‘(2) Development of an individual employment plan to iden-
tify employment goals and objectives, and appropriate training 
to achieve those goals and objectives. 
‘‘(3) Information on training available in local and regional 
areas, information on individual counseling to determine which 
training is suitable training, and information on how to apply 
for such training. 
‘‘(4) Information on how to apply for financial aid, including 
referring workers to educational opportunity centers described 
in section 402F of the Higher Education Act of 1965 (20 U.S.C. 
1070a–16), where applicable, and notifying workers that the 
workers may request financial aid administrators at institu-
tions of higher education (as defined in section 102 of such 
Act (20 U.S.C. 1002)) to use the administrators’ discretion under 
section 479A of such Act (20 U.S.C. 1087tt) to use current 
year income data, rather than preceding year income data, 
for determining the amount of need of the workers for Federal 
financial assistance under title IV of such Act (20 U.S.C. 1070 
et seq.). 
‘‘(5) Short-term prevocational services, including develop-
ment of learning skills, communications skills, interviewing 
skills, punctuality, personal maintenance skills, and profes-
sional conduct to prepare individuals for employment or 
training. 
‘‘(6) Individual career counseling, including job search and 
placement counseling, during the period in which the individual 
is receiving a trade adjustment allowance or training under 
this chapter, and after receiving such training for purposes 
of job placement. 
‘‘(7) Provision of employment statistics information, 
including the provision of accurate information relating to local, 
regional, and national labor market areas, including— 
‘‘(A) job vacancy listings in such labor market areas; 
‘‘(B) information on jobs skills necessary to obtain jobs 
identified in job vacancy listings described in subparagraph 
(A); 
Contracts. 
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123 STAT. 380 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(C) information relating to local occupations that are 
in demand and earnings potential of such occupations; 
and 
‘‘(D) skills requirements for local occupations described 
in subparagraph (C). 
‘‘(8) Information relating to the availability of supportive 
services, including services relating to child care, transpor-
tation, dependent care, housing assistance, and need-related 
payments that are necessary to enable an individual to partici-
pate in training.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
235 and inserting the following: 
‘‘235. Employment and case management services.’’. 
SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE 
MANAGEMENT SERVICES. 
(a) IN GENERAL.—Part II of subchapter B of chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended 
by inserting after section 235 the following: 
‘‘SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOY-
MENT AND CASE MANAGEMENT SERVICES. 
‘‘(a) FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT 
AND CASE MANAGEMENT SERVICES.— 
‘‘(1) IN GENERAL.—In addition to any funds made available 
to a State to carry out section 236 for a fiscal year, the State 
shall receive for the fiscal year a payment in an amount that 
is equal to 15 percent of the amount of such funds. 
‘‘(2) USE OF FUNDS.—A State that receives a payment under 
paragraph (1) shall— 
‘‘(A) use not more than 2⁄3 of such payment for the 
administration of the trade adjustment assistance for 
workers program under this chapter, including for— 
‘‘(i) processing waivers of training requirements 
under section 231; 
‘‘(ii) collecting, validating, and reporting data 
required under this chapter; and 
‘‘(iii) providing reemployment trade adjustment 
assistance under section 246; and 
‘‘(B) use not less than 1⁄3 of such payment for employ-
ment and case management services under section 235. 
‘‘(b) ADDITIONAL FUNDING FOR EMPLOYMENT AND CASE MANAGE-
MENT SERVICES.— 
‘‘(1) IN GENERAL.—In addition to any funds made available 
to a State to carry out section 236 and the payment under 
subsection (a)(1) for a fiscal year, the Secretary shall provide 
to the State for the fiscal year a payment in the amount 
of $350,000. 
‘‘(2) USE OF FUNDS.—A State that receives a payment under 
paragraph (1) shall use such payment for the purpose of pro-
viding employment and case management services under sec-
tion 235. 
‘‘(3) VOLUNTARY RETURN OF FUNDS.—A State that receives 
a payment under paragraph (1) may decline or otherwise return 
such payment to the Secretary.’’. 
19 USC 2295a. 
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123 STAT. 381 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 235 the following: 
‘‘Sec. 235A. Funding for administrative expenses and employment and case man-
agement services.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 1828. TRAINING FUNDING. 
(a) IN GENERAL.—Section 236(a)(2) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(2)) is amended to read as follows: 
‘‘(2)(A) The total amount of payments that may be made under 
paragraph (1) shall not exceed— 
‘‘(i) for each of the fiscal years 2009 and 2010, $575,000,000; 
and 
‘‘(ii) for the period beginning October 1, 2010, and ending 
December 31, 2010, $143,750,000. 
‘‘(B)(i) The Secretary shall, as soon as practicable after the 
beginning of each fiscal year, make an initial distribution of the 
funds made available to carry out this section, in accordance with 
the requirements of subparagraph (C). 
‘‘(ii) The Secretary shall ensure that not less than 90 percent 
of the funds made available to carry out this section for a fiscal 
year are distributed to the States by not later than July 15 of 
that fiscal year. 
‘‘(C)(i) In making the initial distribution of funds pursuant 
to subparagraph (B)(i) for a fiscal year, the Secretary shall hold 
in reserve 35 percent of the funds made available to carry out 
this section for that fiscal year for additional distributions during 
the remainder of the fiscal year. 
‘‘(ii) Subject to clause (iii), in determining how to apportion 
the initial distribution of funds pursuant to subparagraph (B)(i) 
in a fiscal year, the Secretary shall take into account, with respect 
to each State— 
‘‘(I) the trend in the number of workers covered by certifi-
cations of eligibility under this chapter during the most recent 
4 consecutive calendar quarters for which data are available; 
‘‘(II) the trend in the number of workers participating in 
training under this section during the most recent 4 consecutive 
calendar quarters for which data are available; 
‘‘(III) the number of workers estimated to be participating 
in training under this section during the fiscal year; 
‘‘(IV) the amount of funding estimated to be necessary 
to provide training approved under this section to such workers 
during the fiscal year; and 
‘‘(V) such other factors as the Secretary considers appro-
priate relating to the provision of training under this section. 
‘‘(iii) In no case may the amount of the initial distribution 
to a State pursuant to subparagraph (B)(i) in a fiscal year be 
less than 25 percent of the initial distribution to the State in 
the preceding fiscal year. 
‘‘(D) The Secretary shall establish procedures for the distribu-
tion of the funds that remain available for the fiscal year after 
the initial distribution required under subparagraph (B)(i). Such 
procedures may include the distribution of funds pursuant to 
requests submitted by States in need of such funds. 
Procedures. 
Deadline. 
Time period. 
19 USC 2295a 
note. 
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123 STAT. 382 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(E) If, during a fiscal year, the Secretary estimates that the 
amount of funds necessary to pay the costs of training approved 
under this section will exceed the dollar amount limitation specified 
in subparagraph (A), the Secretary shall decide how the amount 
of funds made available to carry out this section that have not 
been distributed at the time of the estimate will be apportioned 
among the States for the remainder of the fiscal year.’’. 
(b) DETERMINATIONS REGARDING TRAINING.—Section 236(a)(9) 
of the Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting ‘‘(A) Subject 
to subparagraph (B), the Secretary’’; and 
(2) by adding at the end the following: 
‘‘(B)(i) In determining under paragraph (1)(E) whether a worker 
is qualified to undertake and complete training, the Secretary may 
approve training for a period longer than the worker’s period of 
eligibility for trade readjustment allowances under part I if the 
worker demonstrates a financial ability to complete the training 
after the expiration of the worker’s period of eligibility for such 
trade readjustment allowances. 
‘‘(ii) In determining the reasonable cost of training under para-
graph (1)(F) with respect to a worker, the Secretary may consider 
whether other public or private funds are reasonably available 
to the worker, except that the Secretary may not require a worker 
to obtain such funds as a condition of approval of training under 
paragraph (1).’’. 
(c) REGULATIONS.—Section 236 of the Trade Act of 1974 (19 
U.S.C. 2296) is amended by adding at the end the following: 
‘‘(g) REGULATIONS
WITH
RESPECT
TO
APPORTIONMENT
OF 
TRAINING FUNDS TO STATES.— 
‘‘(1) IN GENERAL.—Not later than 1 year after the date 
of the enactment of this subsection, the Secretary shall issue 
such regulations as may be necessary to carry out the provisions 
of subsection (a)(2). 
‘‘(2) CONSULTATIONS.—The Secretary shall consult with the 
Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives not less 
than 90 days before issuing any regulation pursuant to para-
graph (1).’’. 
(d) EFFECTIVE DATE.—This section and the amendments made 
by this section shall take effect upon the expiration of the 90- 
day period beginning on the date of the enactment of this Act, 
except that— 
(1) subparagraph (A) of section 236(a)(2) of the Trade Act 
of 1974, as amended by subsection (a) of this section, shall 
take effect on the date of the enactment of this Act; and 
(2) subparagraphs (B), (C), and (D) of such section 236(a)(2) 
shall take effect on October 1, 2009. 
SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PRO-
GRAMS. 
(a) IN GENERAL.—Section 236(a)(5) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(5)) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘and’’ at the end of clause (i); 
(B) by adding ‘‘and’’ at the end of clause (ii); and 
(C) by inserting after clause (ii) the following: 
19 USC 2296 
note. 
Deadlines. 
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123 STAT. 383 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(iii) apprenticeship programs registered under the Act 
of August 16, 1937 (commonly known as the ‘National 
Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 
50 et seq.),’’; 
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively; 
(3) by inserting after subparagraph (D) the following: 
‘‘(E) any program of prerequisite education or coursework 
required to enroll in training that may be approved under 
this section,’’; 
(4) in subparagraph (F)(ii), as redesignated by paragraph 
(2), by striking ‘‘and’’ at the end; 
(5) in subparagraph (G), as redesignated by paragraph 
(2), by striking the period at the end and inserting ‘‘, and’’; 
and 
(6) by adding at the end the following: 
‘‘(H) any training program or coursework at an accredited 
institution of higher education (described in section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 1002)), including 
a training program or coursework for the purpose of— 
‘‘(i) obtaining a degree or certification; or 
‘‘(ii) completing a degree or certification that the worker 
had previously begun at an accredited institution of higher 
education. 
The Secretary may not limit approval of a training program under 
paragraph (1) to a program provided pursuant to title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).’’. 
(b) CONFORMING AMENDMENTS.—Section 233 of the Trade Act 
of 1974 (19 U.S.C. 2293) is amended— 
(1) in subsection (a)(2), by inserting ‘‘prerequisite education 
or’’ after ‘‘requires a program of’’; and 
(2) in subsection (f) (as redesignated by section 1821(c) 
of this subtitle), by inserting ‘‘prerequisite education or’’ after 
‘‘includes a program of’’. 
(c) TECHNICAL CORRECTIONS.—Section 236 of the Trade Act 
of 1974 (19 U.S.C. 2296) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the flush text, by striking 
‘‘his behalf’’ and inserting ‘‘the worker’s behalf’’; and 
(B) in paragraph (3), by striking ‘‘this paragraph (1)’’ 
and inserting ‘‘paragraph (1)’’; and 
(2) in subsection (b)(2), by striking ‘‘, and’’ and inserting 
a period. 
SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. 
(a) PRE-LAYOFF TRAINING.— 
(1) IN GENERAL.—Section 236(a) of the Trade Act of 1974 
(19 U.S.C. 2296(a)) is amended— 
(A) in paragraph (1), by inserting after ‘‘determines’’ 
the following: ‘‘, with respect to an adversely affected 
worker or an adversely affected incumbent worker,’’; 
(B) in paragraph (4)— 
(i) in subparagraphs (A) and (B), by inserting ‘‘or 
an adversely affected incumbent worker’’ after ‘‘an 
adversely affected worker’’ each place it appears; and 
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123 STAT. 384 
PUBLIC LAW 111–5—FEB. 17, 2009 
(ii) in subparagraph (C), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’ each place it appears; 
(C) in paragraph (5), in the matter preceding subpara-
graph (A), by striking ‘‘The training programs’’ and 
inserting ‘‘Except as provided in paragraph (10), the 
training programs’’; 
(D) in paragraph (6)(B), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’; 
(E) in paragraph (7)(B), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’; and 
(F) by inserting after paragraph (9) the following: 
‘‘(10) In the case of an adversely affected incumbent worker, 
the Secretary may not approve— 
‘‘(A) on-the-job training under paragraph (5)(A)(i); or 
‘‘(B) customized training under paragraph (5)(A)(ii), unless 
such training is for a position other than the worker’s adversely 
affected employment. 
‘‘(11) If the Secretary determines that an adversely affected 
incumbent worker for whom the Secretary approved training under 
this section is no longer threatened with a total or partial separa-
tion, the Secretary shall terminate the approval of such training.’’. 
(2) DEFINITIONS.—Section 247 of the Trade Act of 1974 
(19 U.S.C. 2319), as amended, is further amended by adding 
at the end the following: 
‘‘(19) The term ‘adversely affected incumbent worker’ means 
a worker who— 
‘‘(A) is a member of a group of workers who have 
been certified as eligible to apply for adjustment assistance 
under subchapter A; 
‘‘(B) has not been totally or partially separated from 
adversely affected employment; and 
‘‘(C) the Secretary determines, on an individual basis, 
is threatened with total or partial separation.’’. 
(b) PART-TIME TRAINING.—Section 236 of the Trade Act of 1974 
(19 U.S.C. 2296), as amended, is further amended by adding at 
the end the following: 
‘‘(h) PART-TIME TRAINING.— 
‘‘(1) IN
GENERAL.—The Secretary may approve full-time 
or part-time training for a worker under subsection (a). 
‘‘(2) LIMITATION.—Notwithstanding paragraph (1), a worker 
participating in part-time training approved under subsection 
(a) may not receive a trade readjustment allowance under sec-
tion 231.’’. 
SEC. 1831. ON-THE-JOB TRAINING. 
(a) IN GENERAL.—Section 236(c) of the Trade Act of 1974 (19 
U.S.C. 2296(c)) is amended— 
(1) by redesignating paragraphs (1) through (10) as sub-
paragraphs (A) through (J) and moving such subparagraphs 
2 ems to the right; 
(2) by striking ‘‘(c) The Secretary shall’’ and all that follows 
through ‘‘such costs,’’ and inserting the following: 
‘‘(c) ON-THE-JOB TRAINING REQUIREMENTS.— 
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123 STAT. 385 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(1) IN GENERAL.—The Secretary may approve on-the-job 
training for any adversely affected worker if— 
‘‘(A) the worker meets the requirements for training 
to be approved under subsection (a)(1); 
‘‘(B) 
the 
Secretary 
determines 
that 
on-the-job 
training— 
‘‘(i) can reasonably be expected to lead to suitable 
employment with the employer offering the on-the- 
job training; 
‘‘(ii) is compatible with the skills of the worker; 
‘‘(iii) includes a curriculum through which the 
worker will gain the knowledge or skills to become 
proficient in the job for which the worker is being 
trained; and 
‘‘(iv) can be measured by benchmarks that indicate 
that the worker is gaining such knowledge or skills; 
and 
‘‘(C) the State determines that the on-the-job training 
program meets the requirements of clauses (iii) and (iv) 
of subparagraph (B). 
‘‘(2) MONTHLY
PAYMENTS.—The Secretary shall pay the 
costs of on-the-job training approved under paragraph (1) in 
monthly installments. 
‘‘(3) CONTRACTS FOR ON-THE-JOB TRAINING.— 
‘‘(A) IN
GENERAL.—The Secretary shall ensure, in 
entering into a contract with an employer to provide on- 
the-job training to a worker under this subsection, that 
the skill requirements of the job for which the worker 
is being trained, the academic and occupational skill level 
of the worker, and the work experience of the worker 
are taken into consideration. 
‘‘(B) TERM OF CONTRACT.—Training under any such 
contract shall be limited to the period of time required 
for the worker receiving on-the-job training to become pro-
ficient in the job for which the worker is being trained, 
but may not exceed 104 weeks in any case. 
‘‘(4) EXCLUSION
OF
CERTAIN
EMPLOYERS.—The Secretary 
shall not enter into a contract for on-the-job training with 
an employer that exhibits a pattern of failing to provide workers 
receiving on-the-job training from the employer with— 
‘‘(A) continued, long-term employment as regular 
employees; and 
‘‘(B) wages, benefits, and working conditions that are 
equivalent to the wages, benefits, and working conditions 
provided to regular employees who have worked a similar 
period of time and are doing the same type of work as 
workers receiving on-the-job training from the employer. 
‘‘(5) LABOR STANDARDS.—The Secretary may pay the costs 
of on-the-job training,’’; and 
(3) in paragraph (5), as redesignated— 
(A) in subparagraph (I), as redesignated by paragraph 
(1) of this section, by striking ‘‘paragraphs (1), (2), (3), 
(4), (5), and (6)’’ and inserting ‘‘subparagraphs (A), (B), 
(C), (D), (E), and (F)’’; and 
(B) in subparagraph (J), as redesignated by paragraph 
(1) of this section, by striking ‘‘paragraph (8)’’ and inserting 
‘‘subparagraph (H)’’. 
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123 STAT. 386 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) REPEAL OF PREFERENCE FOR TRAINING ON THE JOB.—Section 
236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended 
by striking the last sentence. 
SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PRO-
GRAM BENEFITS WHILE IN TRAINING. 
Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) 
is amended to read as follows: 
‘‘(d) ELIGIBILITY.—An adversely affected worker may not be 
determined to be ineligible or disqualified for unemployment insur-
ance or program benefits under this subchapter— 
‘‘(1) because the worker— 
‘‘(A) is enrolled in training approved under subsection 
(a); 
‘‘(B) left work— 
‘‘(i) that was not suitable employment in order 
to enroll in such training; or 
‘‘(ii) that the worker engaged in on a temporary 
basis during a break in such training or a delay in 
the commencement of such training; or 
‘‘(C) left on-the-job training not later than 30 days 
after commencing such training because the training did 
not meet the requirements of subsection (c)(1)(B); or 
‘‘(2) because of the application to any such week in training 
of the provisions of State law or Federal unemployment insur-
ance law relating to availability for work, active search for 
work, or refusal to accept work.’’. 
SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. 
(a) JOB SEARCH ALLOWANCES.—Section 237 of the Trade Act 
of 1974 (19 U.S.C. 2297) is amended— 
(1) in subsection (a)(2)(C)(ii), by striking ‘‘, unless the 
worker received a waiver under section 231(c)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘90 percent of the 
cost of’’ and inserting ‘‘all’’; and 
(B) in paragraph (2), by striking ‘‘$1,250’’ and inserting 
‘‘$1,500’’. 
(b) RELOCATION ALLOWANCES.—Section 238 of the Trade Act 
of 1974 (19 U.S.C. 2298) is amended— 
(1) in subsection (a)(2)(E)(ii), by striking ‘‘, unless the 
worker received a waiver under section 231(c)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘90 percent of the’’ 
and inserting ‘‘all’’; and 
(B) in paragraph (2), by striking ‘‘$1,250’’ and inserting 
‘‘$1,500’’. 
Subpart D—Reemployment Trade Adjustment 
Assistance Program 
SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PRO-
GRAM. 
(a) IN GENERAL.—Section 246 of the Trade Act of 1974 (19 
U.S.C. 2318) is amended— 
(1) by amending the heading to read as follows: 
Deadline. 
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123 STAT. 387 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PRO-
GRAM.’’; 
(2) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Not later than’’ and all that follows 
through ‘‘2002, the Secretary’’ and inserting ‘‘The Sec-
retary’’; and 
(ii) by striking ‘‘an alternative trade adjustment 
assistance program for older workers’’ and inserting 
‘‘a reemployment trade adjustment assistance pro-
gram’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in the matter preceding clause (i), by 
striking ‘‘for a period not to exceed 2 years’’ and 
inserting ‘‘for the eligibility period under subpara-
graph (A) or (B) of paragraph (4) (as the case 
may be)’’; and 
(II) by striking clauses (i) and (ii) and inserting 
the following: 
‘‘(i) the wages received by the worker at the time 
of separation; and 
‘‘(ii) the wages received by the worker from 
reemployment.’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘for a period not to exceed 2 
years’’ and inserting ‘‘for the eligibility period 
under subparagraph (A) or (B) of paragraph (4) 
(as the case may be)’’; and 
(II) by striking ‘‘, as added by section 201 
of the Trade Act of 2002’’; and 
(iii) by adding at the end the following: 
‘‘(C) TRAINING
AND
OTHER
SERVICES.—A worker 
described in paragraph (3)(B) participating in the program 
established under paragraph (1) is eligible to receive 
training approved under section 236 and employment and 
case management services under section 235.’’; and 
(C) by striking paragraphs (3) through (5) and inserting 
the following: 
‘‘(3) ELIGIBILITY.— 
‘‘(A) IN GENERAL.—A group of workers certified under 
subchapter A as eligible for adjustment assistance under 
subchapter A is eligible for benefits described in paragraph 
(2) under the program established under paragraph (1). 
‘‘(B) INDIVIDUAL ELIGIBILITY.—A worker in a group of 
workers described in subparagraph (A) may elect to receive 
benefits described in paragraph (2) under the program 
established under paragraph (1) if the worker— 
‘‘(i) is at least 50 years of age; 
‘‘(ii) earns not more than $55,000 each year in 
wages from reemployment; 
‘‘(iii)(I) is employed on a full-time basis as defined 
by the law of the State in which the worker is employed 
and is not enrolled in a training program approved 
under section 236; or 
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123 STAT. 388 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) is employed at least 20 hours per week and 
is enrolled in a training program approved under sec-
tion 236; and 
‘‘(iv) is not employed at the firm from which the 
worker was separated. 
‘‘(4) ELIGIBILITY PERIOD FOR PAYMENTS.— 
‘‘(A) WORKER WHO HAS NOT RECEIVED TRADE READJUST-
MENT ALLOWANCE.—In the case of a worker described in 
paragraph (3)(B) who has not received a trade readjustment 
allowance under part I of subchapter B pursuant to the 
certification described in paragraph (3)(A), the worker may 
receive benefits described in paragraph (2) for a period 
not to exceed 2 years beginning on the earlier of— 
‘‘(i) the date on which the worker exhausts all 
rights to unemployment insurance based on the separa-
tion of the worker from the adversely affected employ-
ment that is the basis of the certification; or 
‘‘(ii) the date on which the worker obtains 
reemployment described in paragraph (3)(B). 
‘‘(B) WORKER WHO HAS RECEIVED TRADE READJUSTMENT 
ALLOWANCE.—In the case of a worker described in para-
graph (3)(B) who has received a trade readjustment allow-
ance under part I of subchapter B pursuant to the certifi-
cation described in paragraph (3)(A), the worker may 
receive benefits described in paragraph (2) for a period 
of 104 weeks beginning on the date on which the worker 
obtains reemployment described in paragraph (3)(B), 
reduced by the total number of weeks for which the worker 
received such trade readjustment allowance. 
‘‘(5) TOTAL AMOUNT OF PAYMENTS.— 
‘‘(A) IN GENERAL.—The payments described in para-
graph (2)(A) made to a worker may not exceed— 
‘‘(i) $12,000 per worker during the eligibility period 
under paragraph (4)(A); or 
‘‘(ii) the amount described in subparagraph (B) 
per worker during the eligibility period under para-
graph (4)(B). 
‘‘(B) AMOUNT
DESCRIBED.—The amount described in 
this subparagraph is the amount equal to the product 
of— 
‘‘(i) $12,000, and 
‘‘(ii) the ratio of— 
‘‘(I) the total number of weeks in the eligibility 
period under paragraph (4)(B) with respect to the 
worker, to 
‘‘(II) 104 weeks. 
‘‘(6) CALCULATION OF AMOUNT OF PAYMENTS FOR CERTAIN 
WORKERS.— 
‘‘(A) IN GENERAL.—In the case of a worker described 
in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be 
applied by substituting the percentage described in 
subparagraph (B) for ‘50 percent’. 
‘‘(B) 
PERCENTAGE
DESCRIBED.—The 
percentage 
described in this subparagraph is the percentage— 
‘‘(i) equal to 1⁄2 of the ratio of— 
Applicability. 
Effective date. 
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123 STAT. 389 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(I) the number of weekly hours of employment 
of 
the 
worker 
referred 
to 
in 
paragraph 
(3)(B)(iii)(II), to 
‘‘(II) the number of weekly hours of employ-
ment of the worker at the time of separation, 
but 
‘‘(ii) in no case more than 50 percent. 
‘‘(7) LIMITATION ON OTHER BENEFITS.—A worker described 
in paragraph (3)(B) may not receive a trade readjustment allow-
ance under part I of subchapter B pursuant to the certification 
described in paragraph (3)(A) during any week for which the 
worker receives a payment described in paragraph (2)(A).’’; 
and 
(3) in subsection (b)(2), by striking ‘‘subsection (a)(3)(B)’’ 
and inserting ‘‘subsection (a)(3)’’. 
(b) EXTENSION OF PROGRAM.—Section 246(b)(1) of the Trade 
Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking ‘‘the 
date that is 5 years’’ and all that follows through the end period 
and inserting ‘‘December 31, 2010.’’. 
(c) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
246 and inserting the following: 
‘‘Sec. 246. Reemployment trade adjustment assistance program.’’. 
Subpart E—Other Matters 
SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. 
(a) IN GENERAL.—Subchapter C of chapter 2 of title II of the 
Trade Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE. 
‘‘(a) ESTABLISHMENT.—There is established in the Department 
of Labor an office to be known as the Office of Trade Adjustment 
Assistance (in this section referred to as the ‘Office’). 
‘‘(b) HEAD
OF OFFICE.—The head of the Office shall be an 
administrator, who shall report directly to the Deputy Assistant 
Secretary for Employment and Training. 
‘‘(c) PRINCIPAL FUNCTIONS.—The principal functions of the 
administrator of the Office shall be— 
‘‘(1) to oversee and implement the administration of trade 
adjustment assistance program under this chapter; and 
‘‘(2) to carry out functions delegated to the Secretary of 
Labor under this chapter, including— 
‘‘(A) making determinations under section 223; 
‘‘(B) providing information under section 225 about 
trade adjustment assistance to workers and assisting such 
workers to prepare petitions or applications for program 
benefits; 
‘‘(C) providing assistance to employers of groups of 
workers that have filed petitions under section 221 in 
submitting information required by the Secretary relating 
to the petitions; 
‘‘(D) ensuring workers covered by a certification of 
eligibility under subchapter A receive the employment and 
case management services described in section 235; 
19 USC 2322. 
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123 STAT. 390 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(E) ensuring that States fully comply with agreements 
entered into under section 239; 
‘‘(F) advocating for workers applying for benefits avail-
able under this chapter; 
‘‘(G) establishing and overseeing a hotline that workers, 
employers, and other entities may call to obtain information 
regarding eligibility criteria, procedural requirements, and 
benefits available under this chapter; and 
‘‘(H) carrying out such other duties with respect to 
this chapter as the Secretary specifies for purposes of this 
section. 
‘‘(d) ADMINISTRATION.— 
‘‘(1) DESIGNATION.—The administrator shall designate an 
employee of the Department of Labor with appropriate experi-
ence and expertise to carry out the duties described in para-
graph (2). 
‘‘(2) DUTIES.—The employee designated under paragraph 
(1) shall— 
‘‘(A) receive complaints and requests for assistance 
related to the trade adjustment assistance program under 
this chapter; 
‘‘(B) resolve such complaints and requests for assist-
ance, in coordination with other employees of the Office; 
‘‘(C) compile basic information concerning such com-
plaints and requests for assistance; and 
‘‘(D) carry out such other duties with respect to this 
chapter as the Secretary specifies for purposes of this sec-
tion.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 249 the following: 
‘‘Sec. 249A. Office of Trade Adjustment Assistance.’’. 
SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND 
PUBLICATION OF PROGRAM DATA; AGREEMENTS WITH 
STATES. 
(a) IN GENERAL.—Section 239(a) of the Trade Act of 1974 (19 
U.S.C. 2311(a)) is amended— 
(1) by amending clause (2) to read as follows: ‘‘(2) in accord-
ance with subsection (f), shall make available to adversely 
affected workers and adversely affected incumbent workers cov-
ered by a certification under subchapter A the employment 
and case management services described in section 235,’’; and 
(2) by striking ‘‘will’’ each place it appears and inserting 
‘‘shall’’. 
(b) FORM AND MANNER OF DATA.—Section 239 of the Trade 
Act of 1974 (19 U.S.C. 2311) is amended— 
(1) by redesignating subsections (c) through (g) as sub-
sections (d) through (h), respectively; and 
(2) by inserting after subsection (b) the following: 
‘‘(c) FORM AND MANNER OF DATA.—Each agreement under this 
subchapter shall— 
‘‘(1) provide the Secretary with the authority to collect 
any data the Secretary determines necessary to meet the 
requirements of this chapter; and 
‘‘(2) specify the form and manner in which any such data 
requested by the Secretary shall be reported.’’. 
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123 STAT. 391 
PUBLIC LAW 111–5—FEB. 17, 2009 
(c) STATE ACTIVITIES.—Section 239(g) of the Trade Act of 1974 
(as redesignated) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) by amending paragraph (4) to read as follows: 
‘‘(4) perform outreach to, intake of, and orientation for 
adversely affected workers and adversely affected incumbent 
workers covered by a certification under subchapter A with 
respect to assistance and benefits available under this chapter, 
and’’; and 
(3) by adding at the end the following: 
‘‘(5) make employment and case management services 
described in section 235 available to adversely affected workers 
and adversely affected incumbent workers covered by a certifi-
cation under subchapter A and, if 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.’’. 
(d) REPORTING REQUIREMENT.—Section 239(h) of the Trade Act 
of 1974 (as redesignated) is amended by striking ‘‘1998.’’ and 
inserting ‘‘1998 (29 U.S.C. 2822(b)) and a description of the State’s 
rapid response activities under section 221(a)(2)(A).’’. 
(e) CONTROL MEASURES.—Section 239 of the Trade Act of 1974 
(19 U.S.C. 2311), as amended, is further amended by adding at 
the end the following: 
‘‘(i) CONTROL MEASURES.— 
‘‘(1) IN GENERAL.—The Secretary shall require each cooper-
ating State and cooperating State agency to implement effective 
control measures and to effectively oversee the operation and 
administration of the trade adjustment assistance program 
under this chapter, including by means of monitoring the oper-
ation of control measures to improve the accuracy and timeli-
ness of the data being collected and reported. 
‘‘(2) DEFINITION.—For purposes of paragraph (1), the term 
‘control measures’ means measures that— 
‘‘(A) are internal to a system used by a State to collect 
data; and 
‘‘(B) are designed to ensure the accuracy and 
verifiability of such data. 
‘‘(j) DATA REPORTING.— 
‘‘(1) IN GENERAL.—Any agreement entered into under this 
section shall require the cooperating State or cooperating State 
agency to report to the Secretary on a quarterly basis com-
prehensive performance accountability data, to consist of— 
‘‘(A) the core indicators of performance described in 
paragraph (2)(A); 
‘‘(B) the additional indicators of performance described 
in paragraph (2)(B), if any; and 
‘‘(C) a description of efforts made to improve outcomes 
for workers under the trade adjustment assistance pro-
gram. 
‘‘(2) CORE INDICATORS DESCRIBED.— 
‘‘(A) IN GENERAL.—The core indicators of performance 
described in this paragraph are— 
‘‘(i) the percentage of workers receiving benefits 
under this chapter who are employed during the second 
calendar quarter following the calendar quarter in 
which the workers cease receiving such benefits; 
Requirements. 
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123 STAT. 392 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) the percentage of such workers who are 
employed in each of the third and fourth calendar 
quarters following the calendar quarter in which the 
workers cease receiving such benefits; and 
‘‘(iii) the earnings of such workers in each of the 
third and fourth calendar quarters following the cal-
endar quarter in which the workers cease receiving 
such benefits. 
‘‘(B) ADDITIONAL
INDICATORS.—The Secretary and a 
cooperating State or cooperating State agency may agree 
upon additional indicators of performance for the trade 
adjustment assistance program under this chapter, as 
appropriate. 
‘‘(3) STANDARDS WITH RESPECT TO RELIABILITY OF DATA.— 
In preparing the quarterly report required by paragraph (1), 
each cooperating State or cooperating State agency shall estab-
lish procedures that are consistent with guidelines to be issued 
by the Secretary to ensure that the data reported are valid 
and reliable.’’. 
SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS. 
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as 
amended, is further amended by adding at the end the following: 
‘‘(k) VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.— 
‘‘(1) IN
GENERAL.—An agreement under this subchapter 
shall provide that the State shall periodically redetermine that 
a worker receiving benefits under this subchapter who is not 
a citizen or national of the United States remains in a satisfac-
tory immigration status. Once satisfactory immigration status 
has been initially verified through the immigration status 
verification system described in section 1137(d) of the Social 
Security Act (42 U.S.C. 1320b-7(d)) for purposes of establishing 
a worker’s eligibility for unemployment compensation, the State 
shall reverify the worker’s immigration status if the documenta-
tion provided during initial verification will expire during the 
period in which that worker is potentially eligible to receive 
benefits under this subchapter. The State shall conduct such 
redetermination in a timely manner, utilizing the immigration 
status verification system described in section 1137(d) of the 
Social Security Act (42 U.S.C. 1320b-7(d)). 
‘‘(2) PROCEDURES.—The Secretary shall establish proce-
dures to ensure the uniform application by the States of the 
requirements of this subsection.’’. 
SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO 
WORKERS. 
(a) IN GENERAL.—Subchapter C of chapter 2 of title II of the 
Trade Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further 
amended by adding at the end the following: 
‘‘SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; 
INFORMATION TO WORKERS. 
‘‘(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this section, the Secretary shall implement a 
system to collect and report the data described in subsection (b), 
as well as any other information that the Secretary considers appro-
priate to effectively carry out this chapter. 
System. 
19 USC 2323. 
Immigration. 
Procedures. 
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123 STAT. 393 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(b) DATA TO BE INCLUDED.—The system required under sub-
section (a) shall include collection of and reporting on the following 
data for each fiscal year: 
‘‘(1) DATA ON PETITIONS FILED, CERTIFIED, AND DENIED.— 
‘‘(A) The number of petitions filed, certified, and denied 
under this chapter. 
‘‘(B) The number of workers covered by petitions filed, 
certified, and denied. 
‘‘(C) The number of petitions, classified by— 
‘‘(i) the basis for certification, including increased 
imports, shifts in production, and other bases of eligi-
bility; and 
‘‘(ii) congressional district of the United States. 
‘‘(D) The average time for processing such petitions. 
‘‘(2) DATA ON BENEFITS RECEIVED.— 
‘‘(A) The number of workers receiving benefits under 
this chapter. 
‘‘(B) The number of workers receiving each type of 
benefit, including training, trade readjustment allowances, 
employment and case management services, and relocation 
and job search allowances, and, to the extent feasible, 
credits for health insurance costs under section 35 of the 
Internal Revenue Code of 1986. 
‘‘(C) The average time during which such workers 
receive each such type of benefit. 
‘‘(3) DATA ON TRAINING.— 
‘‘(A) The number of workers enrolled in training 
approved under section 236, classified by major types of 
training, including classroom training, training through 
distance learning, on-the-job training, and customized 
training. 
‘‘(B) The number of workers enrolled in full-time 
training and part-time training. 
‘‘(C) The average duration of training. 
‘‘(D) The number of training waivers granted under 
section 231(c), classified by type of waiver. 
‘‘(E) The number of workers who complete training 
and the duration of such training. 
‘‘(F) The number of workers who do not complete 
training. 
‘‘(4) DATA ON OUTCOMES.— 
‘‘(A) A summary of the quarterly reports required under 
section 239(j). 
‘‘(B) The sectors in which workers are employed after 
receiving benefits under this chapter. 
‘‘(5) DATA ON RAPID RESPONSE ACTIVITIES.—Whether rapid 
response activities were provided with respect to each petition 
filed under section 221. 
‘‘(c) CLASSIFICATION OF DATA.—To the extent possible, in col-
lecting and reporting the data described in subsection (b), the 
Secretary shall classify the data by industry, State, and national 
totals. 
‘‘(d) REPORT.—Not later than December 15 of each year, the 
Secretary shall submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representa-
tives a report that includes— 
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123 STAT. 394 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(1) a summary of the information collected under this 
section for the preceding fiscal year; 
‘‘(2) information on the distribution of funds to each State 
pursuant to section 236(a)(2); and 
‘‘(3) any recommendations of the Secretary with respect 
to changes in eligibility requirements, benefits, or training 
funding under this chapter based on the data collected under 
this section. 
‘‘(e) AVAILABILITY OF DATA.— 
‘‘(1) IN GENERAL.—The Secretary shall make available to 
the public, by publishing on the website of the Department 
of Labor and by other means, as appropriate— 
‘‘(A) the report required under subsection (d); 
‘‘(B) the data collected under this section, in a search-
able format; and 
‘‘(C) a list of cooperating States and cooperating State 
agencies that failed to submit the data required by this 
section to the Secretary in a timely manner. 
‘‘(2) UPDATES.—The Secretary shall update the data under 
paragraph (1) on a quarterly basis.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 249A the following: 
‘‘Sec. 249B. Collection and publication of data and reports; information to work-
ers.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS. 
Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) 
is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by striking ‘‘may waive’’ and inserting ‘‘shall waive’’; 
and 
(B) by striking ‘‘, in accordance with guidelines pre-
scribed by the Secretary,’’; and 
(2) in subparagraph (B), by striking ‘‘would be contrary 
to equity and good conscience’’ and inserting ‘‘would cause 
a financial hardship for the individual (or the individual’s 
household, if applicable) when taking into consideration the 
income and resources reasonably available to the individual 
(or household) and other ordinary living expenses of the indi-
vidual (or household)’’. 
SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUST-
MENT ASSISTANCE. 
(a) IN GENERAL.—Chapter 5 of title II of the Trade Act of 
1974 (19 U.S.C. 2391 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 288. SENSE OF CONGRESS. 
‘‘It is the sense of Congress that the Secretaries of Labor, 
Commerce, and Agriculture should apply the provisions of chapter 
2 (relating to adjustment assistance for workers), chapter 3 (relating 
to adjustment assistance for firms), chapter 4 (relating to adjust-
ment assistance for communities), and chapter 6 (relating to adjust-
ment assistance for farmers), respectively, with the utmost regard 
19 USC 2397a. 
19 USC 2323 
note. 
Deadline. 
Web posting. 
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123 STAT. 395 
PUBLIC LAW 111–5—FEB. 17, 2009 
for the interests of workers, firms, communities, and farmers peti-
tioning for benefits under such chapters.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by inserting after the item relating to 
section 287 the following: 
‘‘Sec. 288. Sense of Congress.’’. 
SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS. 
Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is 
amended— 
(1) by striking ‘‘The Secretary shall’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—The Secretary shall’’; and 
(2) by adding at the end the following: 
‘‘(b) CONSULTATIONS.—Not later than 90 days before issuing 
a regulation under subsection (a), the Secretary shall consult with 
the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives with respect 
to the regulation.’’. 
SEC. 1858. TECHNICAL CORRECTIONS. 
(a) DETERMINATIONS BY SECRETARY OF LABOR.—Section 223(c) 
of the Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking 
‘‘his determination’’ and inserting ‘‘a determination’’. 
(b) QUALIFYING REQUIREMENTS FOR WORKERS.—Section 231(a) 
of the Trade Act of 1974 (19 U.S.C. 2291(a)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘his application’’ and inserting ‘‘the worker’s 
application’’; and 
(B) in subparagraph (A), by striking ‘‘he is covered’’ 
and inserting ‘‘the worker is covered’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking the period and 
inserting a comma; and 
(B) in subparagraph (D), by striking ‘‘5 U.S.C. 
8521(a)(1)’’ and inserting ‘‘section 8521(a)(1) of title 5, 
United States Code’’; and 
(3) in paragraph (3)— 
(A) by striking ‘‘he’’ each place it appears and inserting 
‘‘the worker’’; and 
(B) in subparagraph (C), by striking ‘‘him’’ and 
inserting ‘‘the worker’’. 
(c) SUBPOENA POWER.—Section 249 of the Trade Act of 1974 
(19 U.S.C. 2321) is amended— 
(1) in the section heading, by striking ‘‘SUBPENA’’ and 
inserting ‘‘SUBPOENA’’; 
(2) by striking ‘‘subpena’’ and inserting ‘‘subpoena’’ each 
place it appears; and 
(3) in subsection (a), by striking ‘‘him’’ and inserting ‘‘the 
Secretary’’. 
(d) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
249 and inserting the following: 
‘‘Sec. 249. Subpoena power.’’. 
Deadline. 
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123 STAT. 396 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART II—TRADE ADJUSTMENT ASSISTANCE 
FOR FIRMS 
SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS. 
(a) IN GENERAL.—Section 251 of the Trade Act of 1974 (19 
U.S.C. 2341) is amended by inserting ‘‘or service sector firm’’ after 
‘‘agricultural firm’’ each place it appears. 
(b) DEFINITION OF SERVICE SECTOR FIRM.—Section 261 of the 
Trade Act of 1974 (19 U.S.C. 2351) is amended— 
(1) by striking ‘‘chapter,’’ and inserting ‘‘chapter:’’; 
(2) by striking ‘‘the term ‘firm’ ’’ and inserting the following: 
‘‘(1) FIRM.—The term ‘firm’ ’’; and 
(3) by adding at the end the following: 
‘‘(2) SERVICE SECTOR FIRM.—The term ‘service sector firm’ 
means a firm engaged in the business of supplying services.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 
2341(c)(1)(C)) is amended— 
(A) by inserting ‘‘or services’’ after ‘‘articles’’ the first 
place it appears; and 
(B) by inserting ‘‘or services which are supplied’’ after 
‘‘produced’’. 
(2) Section 251(c)(2)(B)(ii) of such Act is amended to read 
as follows: 
‘‘(ii) 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.’’. 
SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION. 
Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 
2341(c)(1)(B)) is amended to read as follows: 
‘‘(B) that— 
‘‘(i) sales or production, or both, of the firm have 
decreased absolutely, 
‘‘(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 date 
are available have decreased absolutely, 
‘‘(iii) sales or production, or both, of the firm during 
the most recent 12-month period for which data are avail-
able have decreased compared to— 
‘‘(I) the average annual sales or production for 
the firm during the 24-month period preceding that 
12-month period, or 
‘‘(II) the average annual sales or production for 
the firm during the 36-month period preceding that 
12-month period, and 
‘‘(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 compared to— 
‘‘(I) the average annual sales or production for 
the article or service during the 24-month period pre-
ceding that 12-month period, or 
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123 STAT. 397 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) the average annual sales or production for 
the article or service during the 36-month period pre-
ceding that 12-month period, and’’. 
SEC. 1863. BASIS FOR DETERMINATIONS. 
Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as 
amended, is further amended by adding at the end the following: 
‘‘(e) BASIS FOR SECRETARY’S DETERMINATIONS.—For purposes 
of subsection (c)(1)(C), the Secretary may determine that there 
are increased imports of like or directly competitive articles or 
services, if customers accounting for a significant percentage of 
the decrease in the sales or production of the firm certify to the 
Secretary that such customers have increased their imports of such 
articles or services from a foreign country, either absolutely or 
relative to their acquisition of such articles or services from sup-
pliers located in the United States. 
‘‘(f) NOTIFICATION TO FIRMS OF AVAILABILITY OF BENEFITS.— 
Upon receiving notice from the Secretary of Labor under section 
225 of the identity of a firm that is covered by a certification 
issued under section 223, the Secretary of Commerce shall notify 
the firm of the availability of adjustment assistance under this 
chapter.’’. 
SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF 
APPROPRIATIONS. 
(a) IN GENERAL.—Chapter 3 of title II of the Trade Act of 
1974 (19 U.S.C. 2341 et seq.) is amended— 
(1) by striking sections 254, 255, 256, and 257; 
(2) by redesignating sections 258, 259, 260, 261, 262, 264, 
and 265, as sections 256, 257, 258, 259, 260, 261, and 262, 
respectively; and 
(3) by inserting after section 253 the following: 
‘‘SEC. 254. OVERSIGHT AND ADMINISTRATION. 
‘‘(a) IN GENERAL.—The Secretary shall, to such extent and 
in such amounts as are provided in appropriations Acts, provide 
grants to intermediary organizations (referred to in section 
253(b)(1)) throughout the United States pursuant to agreements 
with such intermediary organizations. Each such agreement shall 
require the intermediary organization to provide benefits to firms 
certified under section 251. The Secretary shall, to the maximum 
extent practicable, provide by October 1, 2010, that contracts 
entered into with intermediary organizations be for a 12-month 
period and that all such contracts have the same beginning date 
and the same ending date. 
‘‘(b) DISTRIBUTION OF FUNDS.— 
‘‘(1) IN GENERAL.—Not later than 90 days after the date 
of the enactment of this subsection, the Secretary shall develop 
a methodology for the distribution of funds among the inter-
mediary organizations described in subsection (a). 
‘‘(2) PROMPT
INITIAL
DISTRIBUTION.—The methodology 
described in paragraph (1) shall ensure the prompt initial dis-
tribution of funds and establish additional criteria governing 
the apportionment and distribution of the remainder of such 
funds among the intermediary organizations. 
‘‘(3) CRITERIA.—The methodology described in paragraph 
(1) shall include criteria based on the data in the annual 
report on the trade adjustment assistance for firms program 
Criteria. 
Deadline. 
Methodology. 
Deadline. 
Contracts. 
Grants. 
19 USC 2344. 
19 USC 
2348–2352, 2354, 
2355. 
19 USC 
2344–2347. 
Certification. 
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123 STAT. 398 
PUBLIC LAW 111–5—FEB. 17, 2009 
described in section 1866 of the Trade and Globalization Adjust-
ment Assistance Act of 2009. 
‘‘(c) REQUIREMENTS FOR CONTRACTS.—An agreement with an 
intermediary organization described in subsection (a) shall require 
the intermediary organization to contract for the supply of services 
to carry out grants under this chapter in accordance with terms 
and conditions that are consistent with guidelines established by 
the Secretary. 
‘‘(d) CONSULTATIONS.— 
‘‘(1) CONSULTATIONS REGARDING METHODOLOGY.—The Sec-
retary shall consult with the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives— 
‘‘(A) not less than 30 days before finalizing the method-
ology described in subsection (b); and 
‘‘(B) not less than 60 days before adopting any changes 
to such methodology. 
‘‘(2) CONSULTATIONS
REGARDING
GUIDELINES.—The Sec-
retary shall consult with the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives not less than 60 days before finalizing the 
guidelines described in subsection (c) or adopting any subse-
quent changes to such guidelines. 
‘‘SEC. 255. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be appropriated 
to the Secretary $50,000,000 for each of the fiscal years 2009 
through 2010, and $12,501,000 for the period beginning October 
1, 2010, and ending December 31, 2010, to carry out the provisions 
of this chapter. Amounts appropriated pursuant to this subsection 
shall— 
‘‘(1) be available to provide adjustment assistance to firms 
that file a petition for such assistance pursuant to this chapter 
on or before December 31, 2010; and 
‘‘(2) otherwise remain available until expended. 
‘‘(b) PERSONNEL.—Of the amounts appropriated pursuant to 
this section for each fiscal year, $350,000 shall be available for 
full-time positions in the Department of Commerce to administer 
the provisions of this chapter. Of such funds the Secretary shall 
make available to the Economic Development Administration such 
sums as may be necessary to establish the position of Director 
of Adjustment Assistance for Firms and such other full-time posi-
tions as may be appropriate to administer the provisions of this 
chapter.’’. 
(b) RESIDUAL AUTHORITY.—The Secretary of Commerce shall 
have the authority to modify, terminate, resolve, liquidate, or take 
any other action with respect to a loan, guarantee, contract, or 
any other financial assistance that was extended under section 
254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 
2345, 2346, and 2347), as in effect on the day before the effective 
date set forth in section 1891. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 256 of the Trade Act of 1974, as redesignated 
by subsection (a) of this section, is amended by striking sub-
section (d). 
(2) Section 258 of the Trade Act of 1974, as redesignated 
by subsection (a) of this section, is amended— 
19 USC 2350. 
19 USC 2348. 
19 USC 2344 
note. 
Establishment. 
Deadline. 
Time period. 
19 USC 2345. 
Deadlines. 
Guidelines. 
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123 STAT. 399 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) in the first sentence, by striking ‘‘and financial’’; 
and 
(B) in the last sentence— 
(i) by striking ‘‘sections 253 and 254’’ and inserting 
‘‘section 253’’; and 
(ii) by striking ‘‘title 28 of the United States Code’’ 
and inserting ‘‘title 28, United States Code’’. 
(d) CLERICAL AMENDMENTS.—The table of contents of the Trade 
Act of 1974 is amended by striking the items relating to sections 
254, 255, 256, 257, 258, 259, 260, 261, 262, 264, and 265, and 
inserting the following: 
‘‘Sec. 254. Oversight and administration. 
‘‘Sec. 255. Authorization of appropriations. 
‘‘Sec. 256. Protective provisions. 
‘‘Sec. 257. Penalties. 
‘‘Sec. 258. Civil actions. 
‘‘Sec. 259. Definitions. 
‘‘Sec. 260. Regulations. 
‘‘Sec. 261. Study by Secretary of Commerce when International Trade Commission 
begins investigation; action where there is affirmative finding. 
‘‘Sec. 262. Assistance to industries.’’. 
(e) EFFECTIVE DATE.—This section and the amendments made 
by this section shall take effect upon the expiration of the 90- 
day period beginning on the date of the enactment of this Act, 
except that subsections (b) and (d) of section 254 of the Trade 
Act of 1974 (as added by subsection (a) of this section) shall take 
effect on such date of enactment. 
SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS. 
Section 257 of the Trade Act of 1974, as redesignated by section 
1864(a), is amended to read as follows: 
‘‘SEC. 257. PENALTIES. 
‘‘Any person who— 
‘‘(1) makes a false statement of a material fact knowing 
it to be false, or knowingly fails to disclose a material fact, 
or willfully overvalues any security, for the purpose of influ-
encing in any way a determination under this chapter, or 
for the purpose of obtaining money, property, or anything of 
value under this chapter, or 
‘‘(2) makes a false statement of a material fact knowing 
it to be false, or knowingly fails to disclose a material fact, 
when providing information to the Secretary during an inves-
tigation of a petition under this chapter, 
shall be imprisoned for not more than 2 years, or fined under 
title 18, United States Code, or both.’’. 
SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR 
FIRMS. 
(a) IN GENERAL.—Not later than December 15, 2009, and each 
year thereafter, the Secretary of Commerce shall prepare a report 
containing data regarding the trade adjustment assistance for firms 
program provided for in chapter 3 of title II of the Trade Act 
of 1974 (19 U.S.C. 2341 et seq.) for the preceding fiscal year. 
The data shall include the following: 
(1) The number of firms that inquired about the program. 
(2) The number of petitions filed under section 251. 
(3) The number of petitions certified and denied. 
(4) The average time for processing petitions. 
19 USC 2356. 
19 USC 2349. 
19 USC 2344 
note. 
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123 STAT. 400 
PUBLIC LAW 111–5—FEB. 17, 2009 
(5) The number of petitions filed and firms certified for 
each congressional district of the United States. 
(6) The number of firms that received assistance in pre-
paring their petitions. 
(7) The number of firms that received assistance developing 
business recovery plans. 
(8) The number of business recovery plans approved and 
denied by the Secretary of Commerce. 
(9) Sales, employment, and productivity at each firm 
participating in the program at the time of certification. 
(10) Sales, employment, and productivity at each firm upon 
completion of the program and each year for the 2-year period 
following completion. 
(11) The financial assistance received by each firm partici-
pating in the program. 
(12) The financial contribution made by each firm partici-
pating in the program. 
(13) The types of technical assistance included in the busi-
ness recovery plans of firms participating in the program. 
(14) The number of firms leaving the program before com-
pleting the project or projects in their business recovery plans 
and the reason the project was not completed. 
(b) CLASSIFICATION OF DATA.—To the extent possible, in col-
lecting and reporting the data described in subsection (a), the 
Secretary shall classify the data by intermediary organization, 
State, and national totals. 
(c) REPORT TO CONGRESS; PUBLICATION.—The Secretary of Com-
merce shall— 
(1) submit the report described in subsection (a) to the 
Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives; and 
(2) publish the report in the Federal Register and on the 
website of the Department of Commerce. 
(d) PROTECTION
OF CONFIDENTIAL INFORMATION.—The Sec-
retary of Commerce may not release information described in sub-
section (a) that the Secretary considers to be confidential business 
information unless the person submitting the confidential business 
information had notice, at the time of submission, that such 
information would be released by the Secretary, or such person 
subsequently consents to the release of the information. Nothing 
in this subsection shall be construed to prohibit the Secretary 
from providing such confidential business information to a court 
in camera or to another party under a protective order issued 
by a court. 
SEC. 1867. TECHNICAL CORRECTIONS. 
(a) IN GENERAL.—Section 251 of the Trade Act of 1974 (19 
U.S.C. 2341), as amended, is further amended— 
(1) in subsection (a), by striking ‘‘he has’’ and inserting 
‘‘the Secretary has’’; and 
(2) in subsection (d), by striking ‘‘60 days’’ and inserting 
‘‘40 days’’. 
(b) TECHNICAL ASSISTANCE.—Section 253(a)(3) of the Trade Act 
of 1974 (19 U.S.C. 2343(a)(3)) is amended by striking ‘‘of a certified 
firm’’ and inserting ‘‘to a certified firm’’. 
Federal Register, 
publication. 
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123 STAT. 401 
PUBLIC LAW 111–5—FEB. 17, 2009 
PART III—TRADE ADJUSTMENT ASSISTANCE 
FOR COMMUNITIES 
SEC. 1871. PURPOSE. 
The purpose of the amendments made by this part is to assist 
communities impacted by trade with economic adjustment through 
the coordination of Federal, State, and local resources, the creation 
of community-based development strategies, and the development 
and provision of programs that meet the training needs of workers 
covered by certifications under section 223. 
SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES. 
(a) IN GENERAL.—Chapter 4 of title II of the Trade Act of 
1974 (19 U.S.C. 2371 et seq.) is amended to read as follows: 
‘‘CHAPTER 4—TRADE ADJUSTMENT ASSISTANCE FOR 
COMMUNITIES 
‘‘Subchapter A—Trade Adjustment Assistance for 
Communities 
‘‘SEC. 271. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL COMMODITY PRODUCER.—The term ‘agri-
cultural commodity producer’ has the meaning given that term 
in section 291. 
‘‘(2) COMMUNITY.—The term ‘community’ means a city, 
county, or other political subdivision of a State or a consortium 
of political subdivisions of a State. 
‘‘(3) COMMUNITY IMPACTED BY TRADE.—The term ‘commu-
nity impacted by trade’ means a community described in section 
273(b)(2). 
‘‘(4) ELIGIBLE COMMUNITY.—The term ‘eligible community’ 
means a community that the Secretary has determined under 
section 273(b)(1) is eligible to apply for assistance under this 
subchapter. 
‘‘(5) SECRETARY.—The term ‘Secretary’ means the Secretary 
of Commerce. 
‘‘SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR 
COMMUNITIES PROGRAM. 
‘‘Not later than August 1, 2009, the Secretary shall establish 
a trade adjustment assistance for communities program at the 
Department of Commerce under which the Secretary shall— 
‘‘(1) provide technical assistance under section 274 to 
communities impacted by trade to facilitate the economic 
adjustment of those communities; and 
‘‘(2) award grants to communities impacted by trade to 
carry out strategic plans developed under section 276. 
‘‘SEC. 273. ELIGIBILITY; NOTIFICATION. 
‘‘(a) PETITION.— 
‘‘(1) IN
GENERAL.—A community may submit a petition 
to the Secretary for an affirmative determination under sub-
section (b)(1) that the community is eligible to apply for assist-
ance under this subchapter if— 
Deadlines. 
19 USC 2371b. 
Grants. 
Deadline. 
19 USC 2371a. 
19 USC 2371. 
19 USC 2371 
note. 
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123 STAT. 402 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) on or after August 1, 2009, one or more certifi-
cations described in subsection (b)(3) are made with respect 
to the community; and 
‘‘(B) the community submits the petition not later than 
180 days after the date of the most recent certification. 
‘‘(2) SPECIAL
RULE
WITH
RESPECT
TO
CERTAIN
COMMU-
NITIES.—In the case of a community with respect to which 
one or more certifications described in subsection (b)(3) were 
made on or after January 1, 2007, and before August 1, 2009, 
the community may submit not later than February 1, 2010, 
a petition to the Secretary for an affirmative determination 
under subsection (b)(1). 
‘‘(b) AFFIRMATIVE DETERMINATION.— 
‘‘(1) IN GENERAL.—The Secretary shall make an affirmative 
determination that a community is eligible to apply for assist-
ance under this subchapter if the Secretary determines that 
the community is a community impacted by trade. 
‘‘(2) COMMUNITY IMPACTED BY TRADE.—A community is a 
community impacted by trade if— 
‘‘(A) one or more certifications described in paragraph 
(3) are made with respect to the community; and 
‘‘(B) the Secretary determines that the community is 
significantly affected by the threat to, or the loss of, jobs 
associated with any such certification. 
‘‘(3) CERTIFICATION DESCRIBED.—A certification described 
in this paragraph is a certification— 
‘‘(A) by the Secretary of Labor that a group of workers 
in the community is eligible to apply for assistance under 
section 223; 
‘‘(B) by the Secretary of Commerce that a firm located 
in the community is eligible to apply for adjustment assist-
ance under section 251; or 
‘‘(C) by the Secretary of Agriculture that a group of 
agricultural commodity producers in the community is 
eligible to apply for adjustment assistance under section 
293. 
‘‘(c) NOTIFICATIONS.— 
‘‘(1) NOTIFICATION
TO
THE
GOVERNOR.—The Governor of 
a State shall be notified promptly— 
‘‘(A) by the Secretary of Labor, upon making a deter-
mination that a group of workers in the State is eligible 
for assistance under section 223; 
‘‘(B) by the Secretary of Commerce, upon making a 
determination that a firm in the State is eligible for assist-
ance under section 251; and 
‘‘(C) by the Secretary of Agriculture, upon making a 
determination that a group of agricultural commodity pro-
ducers in the State is eligible for assistance under section 
293. 
‘‘(2) NOTIFICATION
TO
COMMUNITY.—Upon making an 
affirmative determination under subsection (b)(1) that a 
community is eligible to apply for assistance under this sub-
chapter, the Secretary shall promptly notify the community 
and the Governor of the State in which the community is 
located— 
‘‘(A) of the affirmative determination; 
Time period. 
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123 STAT. 403 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) of the applicable provisions of this subchapter; 
and 
‘‘(C) of the means for obtaining assistance under this 
subchapter and other appropriate economic assistance that 
may be available to the community. 
‘‘SEC. 274. TECHNICAL ASSISTANCE. 
‘‘(a) IN GENERAL.—The Secretary shall provide comprehensive 
technical assistance to an eligible community to assist the commu-
nity to— 
‘‘(1) diversify and strengthen the economy in the commu-
nity; 
‘‘(2) identify significant impediments to economic develop-
ment that result from the impact of trade on the community; 
and 
‘‘(3) develop a strategic plan under section 276 to address 
economic adjustment and workforce dislocation in the commu-
nity, including unemployment among agricultural commodity 
producers. 
‘‘(b) COORDINATION
OF FEDERAL RESPONSE.—The Secretary 
shall coordinate the Federal response to an eligible community 
by— 
‘‘(1) identifying Federal, State, and local resources that 
are available to assist the community in responding to economic 
distress; and 
‘‘(2) assisting the community in accessing available Federal 
assistance and ensuring that such assistance is provided in 
a targeted, integrated manner. 
‘‘(c) INTERAGENCY COMMUNITY ASSISTANCE WORKING GROUP.— 
‘‘(1) IN GENERAL.—The Secretary shall establish an inter-
agency Community Assistance Working Group, to be chaired 
by the Secretary or the Secretary’s designee, which shall assist 
the Secretary with the coordination of the Federal response 
pursuant to subsection (b). 
‘‘(2) MEMBERSHIP.—The Working Group shall consist of 
representatives of any Federal department or agency with 
responsibility for providing economic adjustment assistance, 
including the Department of Agriculture, the Department of 
Defense, the Department of Education, the Department of 
Labor, the Department of Housing and Urban Development, 
the Department of Health and Human Services, the Small 
Business Administration, the Department of the Treasury, and 
any other Federal, State, or regional public department or 
agency the Secretary determines to be appropriate. 
‘‘SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES. 
‘‘(a) IN GENERAL.—The Secretary may award a grant under 
this section to an eligible community to assist the community in 
carrying out any project or program that is included in a strategic 
plan developed by the community under section 276. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—An eligible community seeking to receive 
a grant under this section shall submit a grant application 
to the Secretary that contains— 
‘‘(A) the strategic plan developed by the community 
under section 276(a)(1)(A) and approved by the Secretary 
under section 276(a)(1)(B); and 
19 USC 2371d. 
Establishment. 
19 USC 2371c. 
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123 STAT. 404 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) a description of the project or program included 
in the strategic plan with respect to which the community 
seeks the grant. 
‘‘(2) COORDINATION AMONG GRANT PROGRAMS.—If an entity 
in an eligible community is seeking or plans to seek a Commu-
nity College and Career Training Grant under section 278 
or a Sector Partnership Grant under section 279A while the 
eligible community is seeking a grant under this section, the 
eligible community shall include in the grant application a 
description of how the eligible community will integrate any 
projects or programs carried out using a grant under this 
section with any projects or programs that may be carried 
out using such other grants. 
‘‘(c) LIMITATION.—An eligible community may not be awarded 
more than $5,000,000 under this section. 
‘‘(d) COST-SHARING.— 
‘‘(1) FEDERAL SHARE.—The Federal share of a project or 
program for which a grant is awarded under this section may 
not exceed 95 percent of the cost of such project or program. 
‘‘(2) COMMUNITY SHARE.—The Secretary shall require, as 
a condition of awarding a grant to an eligible community under 
this section, that the eligible community contribute not less 
than an amount equal to 5 percent of the amount of the 
grant toward the cost of the project or program for which 
the grant is awarded. 
‘‘(e) GRANTS TO SMALL- AND MEDIUM-SIZED COMMUNITIES.— 
The Secretary shall give priority to grant applications submitted 
under this section by eligible communities that are small- and 
medium-sized communities. 
‘‘(f) ANNUAL REPORT.—Not later than December 15 in each 
of the calendar years 2009 through 2011, the Secretary shall submit 
to the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives a report— 
‘‘(1) describing each grant awarded under this section 
during the preceding fiscal year; and 
‘‘(2) assessing the impact on the eligible community of 
each such grant awarded in a fiscal year before the fiscal 
year referred to in paragraph (1). 
‘‘SEC. 276. STRATEGIC PLANS. 
‘‘(a) IN GENERAL.— 
‘‘(1) DEVELOPMENT.—An eligible community that intends 
to apply for a grant under section 275 shall— 
‘‘(A) develop a strategic plan for the community’s eco-
nomic adjustment to the impact of trade; and 
‘‘(B) submit the plan to the Secretary for evaluation 
and approval. 
‘‘(2) INVOLVEMENT OF PRIVATE AND PUBLIC ENTITIES.— 
‘‘(A) IN GENERAL.—To the extent practicable, an eligible 
community shall consult with entities described in subpara-
graph (B) in developing a strategic plan under paragraph 
(1). 
‘‘(B) ENTITIES DESCRIBED.—Entities described in this 
subparagraph are public and private entities within the 
eligible community, including— 
‘‘(i) local, county, or State government agencies 
serving the community; 
19 USC 2371e. 
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123 STAT. 405 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) firms, including small- and medium-sized 
firms, within the community; 
‘‘(iii) local workforce investment boards established 
under section 117 of the Workforce Investment Act 
of 1998 (29 U.S.C. 2832); 
‘‘(iv) labor organizations, including State labor fed-
erations 
and 
labor-management 
initiatives, 
rep-
resenting workers in the community; and 
‘‘(v) educational institutions, local educational 
agencies, or other training providers serving the 
community. 
‘‘(b) CONTENTS.—The strategic plan shall, at a minimum, con-
tain 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 as well as the strengths 
and weaknesses of the economy of the community. 
‘‘(3) An assessment of the commitment of the eligible 
community to the strategic plan over the long term and the 
participation and input of members of the community affected 
by economic dislocation. 
‘‘(4) A description of the role and the participation of the 
entities described in subsection (a)(2)(B) in developing the stra-
tegic plan. 
‘‘(5) A description of the projects to be undertaken by the 
eligible community under the strategic plan. 
‘‘(6) A description of how the strategic plan and the projects 
to be undertaken by the eligible community will facilitate the 
community’s economic adjustment. 
‘‘(7) A description of the educational and training programs 
available to workers in the eligible community and the future 
employment needs of the community. 
‘‘(8) An assessment of the cost of implementing the strategic 
plan, the timing of funding required by the eligible community 
to implement the strategic plan, and the method of financing 
to be used to implement the strategic plan. 
‘‘(9) A strategy for continuing the economic adjustment 
of the eligible community after the completion of the projects 
described in paragraph (5). 
‘‘(c) GRANTS TO DEVELOP STRATEGIC PLANS.— 
‘‘(1) IN
GENERAL.—The Secretary, upon receipt of an 
application from an eligible community, may award a grant 
to the community to assist the community in developing a 
strategic plan under subsection (a)(1). A grant awarded under 
this paragraph shall not exceed 75 percent of the cost of devel-
oping the strategic plan. 
‘‘(2) FUNDS TO BE USED.—Of the funds appropriated pursu-
ant to section 277(c), the Secretary may make available not 
more than $25,000,000 for each of the fiscal years 2009 and 
2010, and $6,250,000 for the period beginning October 1, 2010, 
and ending December 31, 2010, to provide grants to eligible 
communities under paragraph (1). 
‘‘SEC. 277. GENERAL PROVISIONS. 
‘‘(a) REGULATIONS.— 
19 USC 2371f. 
Time period. 
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123 STAT. 406 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(1) IN GENERAL.—The Secretary shall prescribe such regu-
lations as are necessary to carry out the provisions of this 
subchapter, including— 
‘‘(A) establishing specific guidelines for the submission 
and evaluation of strategic plans under section 276; 
‘‘(B) establishing specific guidelines for the submission 
and evaluation of grant applications under section 275; 
and 
‘‘(C) administering the grant programs established 
under sections 275 and 276. 
‘‘(2) CONSULTATIONS.—The Secretary shall consult with the 
Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives not less 
than 90 days prior to promulgating any final rule or regulation 
pursuant to paragraph (1). 
‘‘(b) PERSONNEL.—The Secretary shall designate such staff as 
may be necessary to carry out the responsibilities described in 
this subchapter. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be appropriated 
to the Secretary $150,000,000 for each of the fiscal years 2009 
and 2010, and $37,500,000 for the period beginning October 
1, 2010, and ending December 31, 2010, to carry out this 
subchapter. 
‘‘(2) AVAILABILITY.—Amounts appropriated pursuant to this 
subchapter— 
‘‘(A) shall be available to provide adjustment assistance 
to communities that have been approved for assistance 
pursuant to this chapter on or before December 31, 2010; 
and 
‘‘(B) shall otherwise remain available until expended. 
‘‘(3) SUPPLEMENT
NOT
SUPPLANT.—Funds appropriated 
pursuant to this subchapter shall be used to supplement and 
not supplant other Federal, State, and local public funds 
expended to provide economic development assistance for 
communities. 
‘‘Subchapter B—Community College and Career Training 
Grant Program 
‘‘SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PRO-
GRAM. 
‘‘(a) GRANTS AUTHORIZED.— 
‘‘(1) IN GENERAL.—Beginning August 1, 2009, the Secretary 
may award Community College and Career Training Grants 
to eligible institutions for the purpose of developing, offering, 
or improving educational or career training programs for 
workers eligible for training under section 236. 
‘‘(2) LIMITATIONS.—An eligible institution may not be 
awarded— 
‘‘(A) more than one grant under this section; or 
‘‘(B) a grant under this section in excess of $1,000,000. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible institution’ 
means an institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), 
Effective date. 
19 USC 2372. 
Designation. 
Deadline. 
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123 STAT. 407 
PUBLIC LAW 111–5—FEB. 17, 2009 
but only with respect to a program offered by the institution 
that can be completed in not more than 2 years. 
‘‘(2) SECRETARY.—The term ‘Secretary’ means the Secretary 
of Labor. 
‘‘(c) GRANT PROPOSALS.— 
‘‘(1) IN GENERAL.—An eligible institution seeking to receive 
a grant under this section shall submit a grant proposal to 
the Secretary at such time, in such manner, and containing 
such information as the Secretary may require. 
‘‘(2) GUIDELINES.—Not later than June 1, 2009, the Sec-
retary shall— 
‘‘(A) promulgate guidelines for the submission of grant 
proposals under this section; and 
‘‘(B) publish and maintain such guidelines on the 
website of the Department of Labor. 
‘‘(3) ASSISTANCE.—The Secretary shall offer assistance in 
preparing a grant proposal to any eligible institution that 
requests such assistance. 
‘‘(4) GENERAL REQUIREMENTS FOR GRANT PROPOSALS.— 
‘‘(A) IN GENERAL.—A grant proposal submitted to the 
Secretary under this section shall include a detailed 
description of— 
‘‘(i) the specific project for which the grant proposal 
is submitted, including the manner in which the grant 
will be used to develop, offer, or improve an educational 
or career training program that is suited to workers 
eligible for training under section 236; 
‘‘(ii) the extent to which the project for which the 
grant proposal is submitted will meet the educational 
or career training needs of workers in the community 
served by the eligible institution who are eligible for 
training under section 236; 
‘‘(iii) the extent to which the project for which 
the grant proposal is submitted fits within any overall 
strategic plan developed by an eligible community 
under section 276; 
‘‘(iv) the extent to which the project for which 
the grant proposal is submitted relates to any project 
funded by a Sector Partnership Grant awarded under 
section 279A; and 
‘‘(v) any previous experience of the eligible institu-
tion in providing educational or career training pro-
grams to workers eligible for training under section 
236. 
‘‘(B) ABSENCE
OF
EXPERIENCE.—The absence of any 
previous experience in providing educational or career 
training programs described in subparagraph (A)(v) shall 
not automatically disqualify an eligible institution from 
receiving a grant under this section. 
‘‘(5) COMMUNITY
OUTREACH
REQUIRED.—In order to be 
considered by the Secretary, a grant proposal submitted by 
an eligible institution under this section shall— 
‘‘(A) demonstrate that the eligible institution— 
‘‘(i) reached out to employers, and other entities 
described in section 276(a)(2)(B) to identify— 
Web posting. 
Deadline. 
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123 STAT. 408 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(I) any shortcomings in existing educational 
and career training opportunities available to 
workers in the community; and 
‘‘(II) any future employment opportunities 
within the community and the educational and 
career training skills required for workers to meet 
the future employment demand; 
‘‘(ii) reached out to other similarly situated institu-
tions in an effort to benefit from any best practices 
that may be shared with respect to providing edu-
cational or career training programs to workers eligible 
for training under section 236; and 
‘‘(iii) reached out to any eligible partnership in 
the community that has sought or received a Sector 
Partnership Grant under section 279A to enhance the 
effectiveness of each grant and avoid duplication of 
efforts; and 
‘‘(B) include a detailed description of— 
‘‘(i) the extent and outcome of the outreach con-
ducted under subparagraph (A); 
‘‘(ii) the extent to which the project for which the 
grant proposal is submitted will contribute to meeting 
any shortcomings identified under subparagraph 
(A)(i)(I) or any educational or career training needs 
identified under subparagraph (A)(i)(II); and 
‘‘(iii) the extent to which employers, including 
small- and medium-sized firms within the community, 
have demonstrated a commitment to employing 
workers who would benefit from the project for which 
the grant proposal is submitted. 
‘‘(d) CRITERIA FOR AWARD OF GRANTS.— 
‘‘(1) IN GENERAL.—Subject to the appropriation of funds, 
the Secretary shall award a grant under this section based 
on— 
‘‘(A) a determination of the merits of the grant proposal 
submitted by the eligible institution to develop, offer, or 
improve educational or career training programs to be made 
available to workers eligible for training under section 
236; 
‘‘(B) an evaluation of the likely employment opportuni-
ties available to workers who complete an educational or 
career training program that the eligible institution pro-
poses to develop, offer, or improve; and 
‘‘(C) an evaluation of prior demand for training pro-
grams by workers eligible for training under section 236 
in the community served by the eligible institution, as 
well as the availability and capacity of existing training 
programs to meet future demand for training programs. 
‘‘(2) PRIORITY
FOR
CERTAIN
COMMUNITIES.—In awarding 
grants under this section, the Secretary shall give priority 
to an eligible institution that serves a community that the 
Secretary of Commerce has determined under section 273 is 
eligible to apply for assistance under subchapter A within the 
5-year period preceding the date on which the grant proposal 
is submitted to the Secretary under this section. 
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123 STAT. 409 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(3) MATCHING REQUIREMENTS.—A grant awarded under 
this section may not be used to satisfy any private matching 
requirement under any other provision of law. 
‘‘(e) ANNUAL REPORT.—Not later than December 15 in each 
of the calendar years 2009 through 2011, the Secretary shall submit 
to the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives a report— 
‘‘(1) describing each grant awarded under this section 
during the preceding fiscal year; and 
‘‘(2) assessing the impact of each award of a grant under 
this section in a fiscal year preceding the fiscal year referred 
to in paragraph (1) on workers receiving training under section 
236. 
‘‘SEC. 279. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary of Labor $40,000,000 for each 
of the fiscal years 2009 and 2010, and $10,000,000 for the period 
beginning October 1, 2010, and ending December 31, 2010, to fund 
the Community College and Career Training Grant Program. Funds 
appropriated pursuant to this section shall remain available until 
expended. 
‘‘(b) SUPPLEMENT NOT SUPPLANT.—Funds appropriated pursu-
ant to this section shall be used to supplement and not supplant 
other Federal, State, and local public funds expended to support 
community college and career training programs. 
‘‘Subchapter C—Industry or Sector Partnership Grant 
Program for Communities Impacted by Trade 
‘‘SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM 
FOR COMMUNITIES IMPACTED BY TRADE. 
‘‘(a) PURPOSE.—The purpose of this subchapter is to facilitate 
efforts by industry or sector partnerships to strengthen and revi-
talize industries and create employment opportunities for workers 
in communities impacted by trade. 
‘‘(b) DEFINITIONS.—In this subchapter: 
‘‘(1) COMMUNITY IMPACTED BY TRADE.—The term ‘commu-
nity impacted by trade’ has the meaning given that term in 
section 271. 
‘‘(2) DISLOCATED
WORKER.—The term ‘dislocated worker’ 
means a worker who has been totally or partially separated, 
or is threatened with total or partial separation, from employ-
ment in an industry or sector in a community impacted by 
trade. 
‘‘(3) ELIGIBLE PARTNERSHIP.—The term ‘eligible partnership’ 
means a voluntary partnership composed of public and private 
persons, firms, or other entities within a community impacted 
by trade, that shall include representatives of— 
‘‘(A) an industry or sector within the community, 
including an industry association; 
‘‘(B) local, county, or State government; 
‘‘(C) multiple firms in the industry or sector, including 
small- and medium-sized firms, within the community; 
‘‘(D) local workforce investment boards established 
under section 117 of the Workforce Investment Act of 1998 
(29 U.S.C. 2832); 
19 USC 2373. 
Time period. 
19 USC 2372a. 
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123 STAT. 410 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(E) labor organizations, including State labor federa-
tions and labor-management initiatives, representing 
workers in the community; and 
‘‘(F) educational institutions, local educational agen-
cies, or other training providers serving the community. 
‘‘(4) LEAD ENTITY.—The term ‘lead entity’ means— 
‘‘(A) an entity designated by the eligible partnership 
to be responsible for submitting a grant proposal under 
subsection (e) and serving as the eligible partnership’s 
fiscal agent in expending any Sector Partnership Grant 
awarded under this section; or 
‘‘(B) a State agency designated by the Governor of 
the State to carry out the responsibilities described in 
subparagraph (A). 
‘‘(5) SECRETARY.—The term ‘Secretary’ means the Secretary 
of Labor. 
‘‘(6) TARGETED INDUSTRY OR SECTOR.—The term ‘targeted 
industry or sector’ means the industry or sector represented 
by an eligible partnership. 
‘‘(c) SECTOR PARTNERSHIP GRANTS AUTHORIZED.—Beginning on 
August 1, 2009, and subject to the appropriation of funds, the 
Secretary shall award Sector Partnership Grants to eligible partner-
ships to assist the eligible partnerships in carrying out projects, 
over periods of not more than 3 years, to strengthen and revitalize 
industries and sectors and create employment opportunities for 
dislocated workers. 
‘‘(d) USE OF SECTOR PARTNERSHIP GRANTS.—An eligible partner-
ship may use a Sector Partnership Grant to carry out any project 
that the Secretary determines will further the purpose of this 
subchapter, which may include— 
‘‘(1) identifying the skill needs of the targeted industry 
or sector and any gaps in the available supply of skilled workers 
in the community impacted by trade, and developing strategies 
for filling the gaps, including by— 
‘‘(A) developing systems to better link firms in the 
targeted industry or sector to available skilled workers; 
‘‘(B) helping firms in the targeted industry or sector 
to obtain access to new sources of qualified job applicants; 
‘‘(C) retraining dislocated and incumbent workers; or 
‘‘(D) facilitating the training of new skilled workers 
by aligning the instruction provided by local suppliers of 
education and training services with the needs of the tar-
geted industry or sector; 
‘‘(2) analyzing the skills and education levels of dislocated 
and incumbent workers and developing training to address 
skill gaps that prevent such workers from obtaining jobs in 
the targeted industry or sector; 
‘‘(3) helping firms, especially small- and medium-sized 
firms, in the targeted industry or sector increase their produc-
tivity and the productivity of their workers; 
‘‘(4) helping such firms retain incumbent workers; 
‘‘(5) developing learning consortia of small- and medium- 
sized firms in the targeted industry or sector with similar 
training needs to enable the firms to combine their purchases 
of training services, and thereby lower their training costs; 
‘‘(6) providing information and outreach activities to firms 
in the targeted industry or sector regarding the activities of 
Effective date. 
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123 STAT. 411 
PUBLIC LAW 111–5—FEB. 17, 2009 
the eligible partnership and other local service suppliers that 
could assist the firms in meeting needs for skilled workers; 
‘‘(7) seeking, applying, and disseminating best practices 
learned from similarly situated communities impacted by trade 
in the development and implementation of economic growth 
and revitalization strategies; and 
‘‘(8) identifying additional public and private resources to 
support the activities described in this subsection, which may 
include the option to apply for a community grant under section 
275 or a Community College and Career Training Grant under 
section 278 (subject to meeting any additional requirements 
of those sections). 
‘‘(e) GRANT PROPOSALS.— 
‘‘(1) IN GENERAL.—The lead entity of an eligible partnership 
seeking to receive a Sector Partnership Grant under this section 
shall submit a grant proposal to the Secretary at such time, 
in such manner, and containing such information as the Sec-
retary may require. 
‘‘(2) GENERAL
REQUIREMENTS
OF
GRANT
PROPOSALS.—A 
grant proposal submitted under paragraph (1) shall, at a min-
imum— 
‘‘(A) identify the members of the eligible partnership; 
‘‘(B) identify the targeted industry or sector for which 
the eligible partnership intends to carry out projects using 
the Sector Partnership Grant; 
‘‘(C) describe the goals that the eligible partnership 
intends to achieve to promote the targeted industry or 
sector; 
‘‘(D) describe the projects that the eligible partnership 
will undertake to achieve such goals; 
‘‘(E) demonstrate that the eligible partnership has the 
organizational capacity to carry out the projects described 
in subparagraph (D); 
‘‘(F) explain— 
‘‘(i) whether— 
‘‘(I) the community impacted by trade has 
sought or received a community grant under sec-
tion 275; 
‘‘(II) an eligible institution in the community 
has sought or received a Community College and 
Career Training Grant under section 278; or 
‘‘(III) any other entity in the community has 
received funds pursuant to any other federally 
funded training project; and 
‘‘(ii) how the eligible partnership will coordinate 
its use of a Sector Partnership Grant with the use 
of such other grants or funds in order to enhance 
the effectiveness of each grant and any such funds 
and avoid duplication of efforts; and 
‘‘(G) include performance measures, developed based 
on the performance measures issued by the Secretary under 
subsection (g)(2), and a timeline for measuring progress 
toward achieving the goals described in subparagraph (C). 
‘‘(f) AWARD OF GRANTS.— 
‘‘(1) IN GENERAL.—Upon application by the lead entity of 
an eligible partnership, the Secretary may award a Sector 
Partnership Grant to the eligible partnership to assist the 
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123 STAT. 412 
PUBLIC LAW 111–5—FEB. 17, 2009 
partnership in carrying out any of the projects in the grant 
proposal that the Secretary determines will further the pur-
poses of this subchapter. 
‘‘(2) LIMITATIONS.—An eligible partnership may not be 
awarded— 
‘‘(A) more than one Sector Partnership Grant; or 
‘‘(B) a total grant award under this subchapter in 
excess of— 
‘‘(i) except as provided in clause (ii), $2,500,000; 
or 
‘‘(ii) in the case of an eligible partnership located 
within a community impacted by trade that is not 
served by an institution receiving a Community College 
and Career Training Grant under section 278, 
$3,000,000. 
‘‘(g) ADMINISTRATION BY THE SECRETARY.— 
‘‘(1) TECHNICAL ASSISTANCE AND OVERSIGHT.— 
‘‘(A) IN GENERAL.—The Secretary shall provide tech-
nical assistance to, and oversight of, the lead entity of 
an eligible partnership in applying for and administering 
Sector Partnership Grants awarded under this section. 
‘‘(B) TECHNICAL ASSISTANCE.—Technical assistance pro-
vided under subparagraph (A) shall include providing con-
ferences and such other methods of collecting and dissemi-
nating information on best practices developed by eligible 
partnerships as the Secretary determines appropriate. 
‘‘(C) GRANTS
OR
CONTRACTS
FOR
TECHNICAL
ASSIST-
ANCE.—The Secretary may award a grant or contract to 
one or more national or State organizations to provide 
technical assistance to foster the planning, formation, and 
implementation of eligible partnerships. 
‘‘(2) PERFORMANCE MEASURES.—The Secretary shall issue 
a range of performance measures, with quantifiable bench-
marks, and methodologies that eligible partnerships may use 
to measure progress toward the goals described in subsection 
(e). In developing such measures, the Secretary shall consider 
the benefits of the eligible partnership and its activities for 
workers, firms, industries, and communities. 
‘‘(h) REPORTS.— 
‘‘(1) PROGRESS
REPORT.—Not later than 1 year after 
receiving a Sector Partnership Grant, and 3 years thereafter, 
the lead entity shall submit to the Secretary, on behalf of 
the eligible partnership, a report containing— 
‘‘(A) a detailed description of the progress made toward 
achieving the goals described in subsection (e)(2)(C), using 
the performance measures required under subsection 
(e)(2)(G); 
‘‘(B) a detailed evaluation of the impact of the grant 
award on workers and employers in the community 
impacted by trade; and 
‘‘(C) a detailed description of all expenditures of funds 
awarded to the eligible partnership under the Sector Part-
nership Grant approved by the Secretary under this sub-
chapter. 
‘‘(2) ANNUAL REPORT.—Not later than December 15 in each 
of the calendar years 2009 through 2011, the Secretary shall 
submit to the Committee on Finance of the Senate and the 
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123 STAT. 413 
PUBLIC LAW 111–5—FEB. 17, 2009 
Committee on Ways and Means of the House of Representatives 
a report— 
‘‘(A) describing each Sector Partnership Grant awarded 
to an eligible partnership during the preceding fiscal year; 
and 
‘‘(B) assessing the impact of each Sector Partnership 
Grant awarded in a fiscal year preceding the fiscal year 
referred to in subparagraph (A) on workers and employers 
in communities impacted by trade. 
‘‘SEC. 279B. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be appropriated 
to the Secretary of Labor $40,000,000 for each of the fiscal years 
2009 and 2010, and $10,000,000 for the period beginning October 
1, 2010, and ending December 31, 2010, to carry out the Sector 
Partnership Grant program under section 279A. Funds appropriated 
pursuant to this section shall remain available until expended. 
‘‘(b) SUPPLEMENT NOT SUPPLANT.—Funds appropriated pursu-
ant to this section shall be used to supplement and not supplant 
other Federal, State, and local public funds expended to support 
the economic development of local communities. 
‘‘(c) ADMINISTRATIVE COSTS.—The Secretary may retain not 
more than 5 percent of the funds appropriated pursuant to this 
section for each fiscal year to administer the Sector Partnership 
Grant program under section 279A. 
‘‘Subchapter D—General Provisions 
‘‘SEC. 279C. RULE OF CONSTRUCTION. 
‘‘Nothing in this chapter prevents a worker from receiving 
trade adjustment assistance under chapter 2 of this title at the 
same time the worker is receiving assistance in any manner from— 
‘‘(1) a community receiving a community grant under sub-
chapter A; 
‘‘(2) an eligible institution receiving a Community College 
and Career Training Grant under subchapter B; or 
‘‘(3) an eligible partnership receiving a Sector Partnership 
Grant under subchapter C.’’. 
SEC. 1873. CONFORMING AMENDMENTS. 
(a) TABLE OF CONTENTS.—The table of contents of 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. 
‘‘Sec. 274. Technical assistance. 
‘‘Sec. 275. Grants for eligible communities. 
‘‘Sec. 276. Strategic plans. 
‘‘Sec. 277. General provisions. 
‘‘Subchapter B—Community College and Career Training Grant Program 
‘‘Sec. 278. Community college and career training grant program. 
‘‘Sec. 279. Authorization of appropriations. 
19 USC 2374. 
Time period. 
19 USC 2373a. 
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123 STAT. 414 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘Subchapter C—Industry or Sector Partnership Grant Program for Communities 
Impacted by Trade 
‘‘Sec. 279A. Industry or sector partnership grant program for communities im-
pacted by trade. 
‘‘Sec. 279B. Authorization of appropriations. 
‘‘Subchapter D—General Provisions 
‘‘Sec. 279C. Rule of construction.’’ 
(b) JUDICIAL REVIEW.— 
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 
2395(a)) is amended— 
(A) by inserting ‘‘or 296’’ after ‘‘section 293’’; 
(B) by striking ‘‘or any other interested domestic party’’ 
and inserting ‘‘or authorized representative of a commu-
nity’’; and 
(C) by striking ‘‘section 271’’ and inserting ‘‘section 
273’’. 
(2) Section 1581(d) of title 28, United States Code, is 
amended— 
(A) in paragraph (2), by striking ‘‘; and’’ and inserting 
a semicolon; 
(B) in paragraph (3)— 
(i) by striking ‘‘271’’ and inserting ‘‘273’’; and 
(ii) by striking the period and inserting ‘‘; and’’; 
and 
(C) by adding at the end the following: 
‘‘(4) any final determination of the Secretary of Agriculture 
under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 
2401b) with respect to the eligibility of a group of agricultural 
commodity producers for adjustment assistance under such 
Act.’’. 
PART IV—TRADE ADJUSTMENT ASSISTANCE 
FOR FARMERS 
SEC. 1881. DEFINITIONS. 
Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is 
amended— 
(1) by amending paragraph (1) to read as follows: 
‘‘(1) AGRICULTURAL
COMMODITY.—The term ‘agricultural 
commodity’ includes— 
‘‘(A) any agricultural commodity (including livestock) 
in its raw or natural state; 
‘‘(B) any class of goods within an agricultural com-
modity; and 
‘‘(C) in the case of an agricultural commodity producer 
described in paragraph (2)(B), wild-caught aquatic species.’’; 
(2) by amending paragraph (2) to read as follows: 
‘‘(2) AGRICULTURAL COMMODITY PRODUCER.—The term ‘agri-
cultural commodity producer’ means— 
‘‘(A) a person that shares in the risk of producing 
an agricultural commodity and that is entitled to a share 
of the commodity for marketing, including an operator, 
a sharecropper, or a person that owns or rents the land 
on which the commodity is produced; or 
‘‘(B) a person that reports gain or loss from the trade 
or business of fishing on the person’s annual Federal 
income tax return for the taxable year that most closely 
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123 STAT. 415 
PUBLIC LAW 111–5—FEB. 17, 2009 
corresponds to the marketing year with respect to which 
a petition is filed under section 292.’’; and 
(3) by adding at the end the following: 
‘‘(7) MARKETING YEAR.—The term ‘marketing year’ means— 
‘‘(A) a marketing year designated by the Secretary 
with respect to an agricultural commodity; or 
‘‘(B) in the case of an agricultural commodity with 
respect to which the Secretary does not designate a mar-
keting year, a calendar year.’’. 
SEC. 1882. ELIGIBILITY. 
(a) IN GENERAL.—Section 292 of the Trade Act of 1974 (19 
U.S.C. 2401a) is amended by striking subsections (c) through (e) 
and inserting the following: 
‘‘(c) GROUP ELIGIBILITY REQUIREMENTS.—The Secretary shall 
certify a group of agricultural commodity producers as eligible to 
apply for adjustment assistance under this chapter if the Secretary 
determines that— 
‘‘(1)(A) the national average price of the agricultural com-
modity produced by the group during the most recent marketing 
year for which data are available is less than 85 percent of 
the average of the national average price for the commodity 
in the 3 marketing years preceding such marketing year; 
‘‘(B) the quantity of production of the agricultural com-
modity produced by the group during such marketing year 
is less than 85 percent of the average of the quantity of produc-
tion of the commodity produced by the group in the 3 marketing 
years preceding such marketing year; 
‘‘(C) the value of production of the agricultural commodity 
produced by the group during such marketing year is less 
than 85 percent of the average value of production of the 
commodity produced by the group in the 3 marketing years 
preceding such marketing year; or 
‘‘(D) the cash receipts for the agricultural commodity pro-
duced by the group during such marketing year are less than 
85 percent of the average of the cash receipts for the commodity 
produced by the group in the 3 marketing years preceding 
such marketing year; 
‘‘(2) the volume of imports of articles like or directly 
competitive with the agricultural commodity produced by the 
group in the marketing year with respect to which the group 
files the petition increased compared to the average volume 
of such imports during the 3 marketing years preceding such 
marketing year; and 
‘‘(3) the increase in such imports contributed importantly 
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). 
‘‘(d) ELIGIBILITY OF CERTAIN OTHER PRODUCERS.—An agricul-
tural commodity producer or group of producers that resides outside 
of the State or region identified in the petition filed under subsection 
(a) may file a request to become a party to that petition not 
later than 15 days after the date the notice is published in the 
Federal Register under subsection (a) with respect to that petition. 
‘‘(e) TREATMENT OF CLASSES OF GOODS WITHIN A COMMODITY.— 
In any case in which there are separate classes of goods within 
Deadline. 
Notice. 
Federal Register, 
publication. 
Certification. 
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123 STAT. 416 
PUBLIC LAW 111–5—FEB. 17, 2009 
an agricultural commodity, the Secretary shall treat each class 
as a separate commodity in determining under subsection (c)— 
‘‘(1) group eligibility; 
‘‘(2) the national average price, quantity of production, 
or value of production, or cash receipts; and 
‘‘(3) the volume of imports.’’. 
(b) CONFORMING AMENDMENTS.—Section 293 of the Trade Act 
of 1974 (19 U.S.C. 2401b) is amended— 
(1) in subsection (a), by striking ‘‘section 292 (c) or (d), 
as the case may be,’’ and inserting ‘‘section 292(c)’’; and 
(2) in subsection (c), by striking ‘‘decline in price for’’ and 
inserting ‘‘decrease in the national average price, quantity of 
production, or value of production of, or cash receipts for,’’. 
SEC. 1883. BENEFITS. 
(a) IN GENERAL.—Section 296 of the Trade Act of 1974 (19 
U.S.C. 2401e) is amended to read as follows: 
‘‘SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICUL-
TURAL COMMODITY PRODUCERS. 
‘‘(a) IN GENERAL.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Benefits under this chapter shall 
be available to an agricultural commodity producer covered 
by a certification under this chapter who files an applica-
tion for such benefits not later than 90 days after the 
date on which the Secretary makes a determination and 
issues a certification of eligibility under section 293, if 
the producer submits to the Secretary sufficient informa-
tion to establish that— 
‘‘(i) the producer produced the agricultural com-
modity covered by the application filed under this sub-
section in the marketing year with respect to which 
the petition is filed and in at least 1 of the 3 marketing 
years preceding that marketing year; 
‘‘(ii)(I) the quantity of the agricultural commodity 
that was produced by the producer in the marketing 
year with respect to which the petition is filed has 
decreased compared to the most recent marketing year 
preceding that marketing year for which data are avail-
able; or 
‘‘(II)(aa) the price received for the agricultural com-
modity by the producer during the marketing year 
with respect to which the petition is filed has decreased 
compared to the average price for the commodity 
received by the producer in the 3 marketing years 
preceding that marketing year; or 
‘‘(bb) the county level price maintained by the Sec-
retary for the agricultural commodity on the date on 
which the petition is filed has decreased compared 
to the average county level price for the commodity 
in the 3 marketing years preceding the date on which 
the petition is filed; and 
‘‘(iii) the producer is not receiving— 
‘‘(I) cash benefits under chapter 2 or 3; or 
‘‘(II) benefits based on the production of an 
agricultural commodity covered by another petition 
filed under this chapter. 
Deadline. 
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123 STAT. 417 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) SPECIAL RULE WITH RESPECT TO CROPS NOT GROWN 
EVERY YEAR.—For purposes of subparagraph (A)(ii)(II)(aa), 
if a petition is filed with respect to an agricultural com-
modity that is not produced by the producer every year, 
an agricultural commodity producer producing that com-
modity may establish the average price received for the 
commodity by the producer in the 3 marketing years pre-
ceding the year with respect to which the petition is filed 
by using average price data for the 3 most recent marketing 
years in which the producer produced the commodity and 
for which data are available. 
‘‘(2) LIMITATIONS BASED ON ADJUSTED GROSS INCOME.— 
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of this chapter, an agricultural commodity producer 
shall not be eligible for assistance under this chapter in 
any year in which the average adjusted gross income (as 
defined in section 1001D(a) of the Food Security Act of 
1985 (7 U.S.C. 1308–3a(a))) of the producer exceeds the 
level set forth in subparagraph (A) or (B) of section 
1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 
1308–3a(b)(1)), whichever is applicable. 
‘‘(B) DEMONSTRATION OF COMPLIANCE.—An agricultural 
commodity producer shall provide to the Secretary such 
information as the Secretary determines necessary to dem-
onstrate that the producer is in compliance with the limita-
tion under subparagraph (A). 
‘‘(C) COUNTER-CYCLICAL
AND
ACRE
PAYMENTS.—The 
total amount of payments made to an agricultural com-
modity producer under this chapter during any crop year 
may not exceed the limitations on payments set forth in 
subsections (b)(2), (b)(3), (c)(2), and (c)(3) of section 1001 
of the Food Security Act of 1985 (7 U.S.C. 1308). 
‘‘(b) TECHNICAL ASSISTANCE.— 
‘‘(1) INITIAL TECHNICAL ASSISTANCE.— 
‘‘(A) IN GENERAL.—An agricultural commodity producer 
that files an application and meets the requirements under 
subsection (a)(1) shall be entitled to receive initial technical 
assistance designed to improve the competitiveness of the 
production and marketing of the agricultural commodity 
with respect to which the producer was certified under 
this chapter. Such assistance shall include information 
regarding— 
‘‘(i) improving the yield and marketing of that 
agricultural commodity; and 
‘‘(ii) the feasibility and desirability of substituting 
one or more alternative agricultural commodities for 
that agricultural commodity. 
‘‘(B) TRANSPORTATION AND SUBSISTENCE EXPENSES.— 
‘‘(i) IN
GENERAL.—The Secretary may authorize 
supplemental assistance necessary to defray reasonable 
transportation and subsistence expenses incurred by 
an agricultural commodity producer in connection with 
initial technical assistance under subparagraph (A) if 
such assistance is provided at facilities that are not 
within normal commuting distance of the regular place 
of residence of the producer. 
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123 STAT. 418 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) 
EXCEPTIONS.—The 
Secretary 
may 
not 
authorize payments to an agricultural commodity pro-
ducer under clause (i)— 
‘‘(I) for subsistence expenses that exceed the 
lesser of— 
‘‘(aa) the actual per diem expenses for 
subsistence incurred by the producer; or 
‘‘(bb) the prevailing per diem allowance 
rate authorized under Federal travel regula-
tions; or 
‘‘(II) for travel expenses that exceed the pre-
vailing mileage rate authorized under the Federal 
travel regulations. 
‘‘(2) INTENSIVE TECHNICAL ASSISTANCE.—A producer that 
has completed initial technical assistance under paragraph (1) 
shall be eligible to participate in intensive technical assistance. 
Such assistance shall consist of— 
‘‘(A) a series of courses to further assist the producer 
in improving the competitiveness of the producer in pro-
ducing— 
‘‘(i) the agricultural commodity with respect to 
which the producer was certified under this chapter; 
or 
‘‘(ii) another agricultural commodity; and 
‘‘(B) assistance in developing an initial business plan 
based on the courses completed under subparagraph (A). 
‘‘(3) INITIAL BUSINESS PLAN.— 
‘‘(A) APPROVAL
BY
SECRETARY.—The Secretary shall 
approve an initial business plan developed under paragraph 
(2)(B) if the plan— 
‘‘(i) reflects the skills gained by the producer 
through the courses described in paragraph (2)(A); and 
‘‘(ii) demonstrates how the producer will apply 
those skills to the circumstances of the producer. 
‘‘(B) FINANCIAL ASSISTANCE FOR IMPLEMENTING INITIAL 
BUSINESS PLAN.—Upon approval of the producer’s initial 
business plan by the Secretary under subparagraph (A), 
a producer shall be entitled to an amount not to exceed 
$4,000 to— 
‘‘(i) implement the initial business plan; or 
‘‘(ii) develop a long-term business adjustment plan 
under paragraph (4). 
‘‘(4) LONG-TERM BUSINESS ADJUSTMENT PLAN.— 
‘‘(A) IN
GENERAL.—A producer that has completed 
intensive technical assistance under paragraph (2) and 
whose initial business plan has been approved under para-
graph (3)(A) shall be eligible for, in addition to the amount 
under subparagraph (C), assistance in developing a long- 
term business adjustment plan. 
‘‘(B) APPROVAL OF LONG-TERM BUSINESS ADJUSTMENT 
PLANS.—The Secretary shall approve a long-term business 
adjustment plan developed under subparagraph (A) if the 
Secretary determines that the plan— 
‘‘(i) includes steps reasonably calculated to materi-
ally contribute to the economic adjustment of the pro-
ducer to changing market conditions; 
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123 STAT. 419 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) takes into consideration the interests of the 
workers employed by the producer; and 
‘‘(iii) demonstrates that the producer will have 
sufficient resources to implement the business plan. 
‘‘(C) PLAN
IMPLEMENTATION.—Upon approval of the 
producer’s long-term business adjustment plan under 
subparagraph (B), a producer shall be entitled to an amount 
not to exceed $8,000 to implement the long-term business 
adjustment plan. 
‘‘(c) MAXIMUM AMOUNT OF ASSISTANCE.—An agricultural com-
modity producer may receive not more than $12,000 under para-
graphs (3) and (4) of subsection (b) in the 36-month period following 
certification under section 293. 
‘‘(d) LIMITATIONS ON OTHER ASSISTANCE.—An agricultural com-
modity producer that receives benefits under this chapter (other 
than initial technical assistance under subsection (b)(1)) shall not 
be eligible for cash benefits under chapter 2 or 3.’’. 
(b) CLERICAL AMENDMENT.—The table of contents of the Trade 
Act of 1974 is amended by striking the item relating to section 
296 and inserting the following: 
‘‘Sec. 296. Qualifying requirements and benefits for agricultural commodity pro-
ducers.’’. 
SEC. 1884. REPORT. 
Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is 
amended by adding at the end the following: 
‘‘(d) REPORT BY THE SECRETARY.—Not later than January 30, 
2010, and annually thereafter, the Secretary of Agriculture shall 
submit to the Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Representatives a 
report containing the following information with respect to adjust-
ment assistance provided under this chapter during the preceding 
fiscal year: 
‘‘(1) A list of the agricultural commodities covered by a 
certification under this chapter. 
‘‘(2) The States or regions in which such commodities are 
produced and the aggregate amount of such commodities pro-
duced in each such State or region. 
‘‘(3) The total number of agricultural commodity producers, 
by congressional district, receiving benefits under this chapter. 
‘‘(4) The total number of agricultural commodity producers, 
by congressional district, receiving technical assistance under 
this chapter.’’. 
SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS. 
Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) 
is amended by inserting ‘‘or has expended funds received under 
this chapter for a purpose that was not approved by the Secretary,’’ 
after ‘‘entitled,’’. 
SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN 
FISHERMEN. 
For purposes of chapters 2 and 6 of title II of the Trade 
Act of 1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural 
commodity producer that— 
(1) is a fisherman or aquaculture producer, and 
(2) is otherwise eligible for adjustment assistance under 
chapter 2 or 6, as the case may be, 
19 USC 2271 
note. 
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123 STAT. 420 
PUBLIC LAW 111–5—FEB. 17, 2009 
the increase in imports of articles like or directly competitive with 
the agricultural commodity produced by such producer may be 
based on imports of wild-caught seafood, farm-raised seafood, or 
both. 
SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR 
FARMERS. 
Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) 
is amended by striking ‘‘fiscal years 2003 through 2007’’ and all 
that follows through the end period and inserting ‘‘fiscal years 
2009 and 2010, and $22,500,000 for the period beginning October 
1, 2010, and ending December 31, 2010, to carry out the purposes 
of this chapter, including administrative costs, and salaries and 
expenses of employees of the Department of Agriculture.’’. 
PART V—GENERAL PROVISIONS 
SEC. 1891. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise provided in this subtitle, 
and subsection (b) of this section, this subtitle and the amendments 
made by this subtitle— 
(1) shall take effect upon the expiration of the 90-day 
period beginning on the date of the enactment of this Act; 
and 
(2) shall apply to— 
(A) petitions for certification filed under chapter 2, 
3, or 6 of title II of the Trade Act of 1974 on or after 
the effective date described in paragraph (1); and 
(B) petitions for assistance and proposals for grants 
filed under chapter 4 of title II of the Trade Act of 1974 
on or after such effective date. 
(b) CERTIFICATIONS MADE BEFORE EFFECTIVE DATE.—Notwith-
standing subsection (a)— 
(1) a worker shall continue to receive (or be eligible to 
receive) trade adjustment assistance and other benefits under 
subchapter B of chapter 2 of title II of the Trade Act of 1974, 
as in effect on the day before the effective date described 
in subsection (a)(1), for any week for which the worker meets 
the eligibility requirements of such chapter 2 as in effect on 
the day before such effective date, if the worker— 
(A) is certified as eligible for trade adjustment assist-
ance benefits under such chapter 2 pursuant to a petition 
filed under section 221 of the Trade Act of 1974 on or 
before such effective date; and 
(B) would otherwise be eligible to receive trade adjust-
ment assistance benefits under such chapter as in effect 
on the day before such effective date; 
(2) a worker shall continue to receive (or be eligible to 
receive) benefits under section 246(a)(2) of the Trade Act of 
1974, as in effect on the day before the effective date described 
in subsection (a)(1), for such period for which the worker meets 
the eligibility requirements of section 246 of that Act as in 
effect on the day before such effective date, if the worker— 
(A) is certified as eligible for benefits under such sec-
tion 246 pursuant to a petition filed under section 221 
of the Trade Act of 1974 on or before such effective date; 
and 
Applicability. 
19 USC 2271 
note. 
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123 STAT. 421 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) would otherwise be eligible to receive benefits under 
such section 246(a)(2) as in effect on the day before such 
effective date; and 
(3) a firm shall continue to receive (or be eligible to receive) 
adjustment assistance under chapter 3 of title II of the Trade 
Act of 1974, as in effect on the day before the effective date 
described in subsection (a)(1), for such period for which the 
firm meets the eligibility requirements of such chapter 3 as 
in effect on the day before such effective date, if the firm— 
(A) is certified as eligible for benefits under such 
chapter 3 pursuant to a petition filed under section 251 
of the Trade Act of 1974 on or before such effective date; 
and 
(B) would otherwise be eligible to receive benefits under 
such chapter 3 as in effect on the day before such effective 
date. 
SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PRO-
GRAMS. 
(a) FOR WORKERS.—Section 245(a) of the Trade Act of 1974 
(19 U.S.C. 2317(a)) is amended by striking ‘‘December 31, 2007’’ 
and inserting ‘‘December 31, 2010’’. 
(b) TERMINATION.—Section 285 of the Trade Act of 1974 (19 
U.S.C. 2271 note prec.) is amended— 
(1) in subsection (a), by striking ‘‘December 31, 2007’’ each 
place it appears and inserting ‘‘December 31, 2010’’; and 
(2) by amending subsection (b) to read as follows: 
‘‘(b) OTHER ASSISTANCE.— 
‘‘(1) ASSISTANCE FOR FIRMS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), technical assistance and grants may not be provided 
under chapter 3 after December 31, 2010. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any technical assistance or grant approved under chapter 
3 on or before December 31, 2010, 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 technical 
assistance or grant is otherwise eligible to receive such 
technical assistance or grant, as the case may be. 
‘‘(2) FARMERS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), technical assistance and financial assistance may not 
be provided under chapter 6 after December 31, 2010. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any technical or financial assistance approved under 
chapter 6 on or before December 31, 2010, may be pro-
vided— 
‘‘(i) to the extent funds are available pursuant 
to such chapter for such purpose; and 
‘‘(ii) to the extent the recipient of the technical 
or financial assistance is otherwise eligible to receive 
such technical or financial assistance, as the case may 
be. 
‘‘(3) ASSISTANCE FOR COMMUNITIES.— 
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123 STAT. 422 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), technical assistance and grants may not be provided 
under chapter 4 after December 31, 2010. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any technical assistance or grant approved under chapter 
4 on or before December 31, 2010, 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 technical 
assistance or grant is otherwise eligible to receive such 
technical assistance or grant, as the case may be.’’. 
SEC. 1893. TERMINATION; RELATED PROVISIONS. 
(a) SUNSET.— 
(1) IN GENERAL.—Subject to paragraph (2), the amendments 
made by this subtitle to chapters 2, 3, 4, 5, and 6 of title 
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall 
not apply on or after January 1, 2011. 
(2) EXCEPTION.—The amendments made by this subtitle 
to section 285 of the Trade Act of 1974 shall continue to 
apply on and after January 1, 2011, with respect to— 
(A) 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 January 1, 2011; 
(B) 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 
January 1, 2011; 
(C) recipients approved for technical assistance or 
grants under chapter 4 of title II of that Act pursuant 
to petitions for assistance or proposals for grants (as the 
case may be) filed pursuant to such chapter before January 
1, 2011; and 
(D) 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 January 1, 2011. 
(b) APPLICATION OF PRIOR LAW.—Chapters 2, 3, 4, 5, and 6 
of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall 
be applied and administered beginning January 1, 2011, as if the 
amendments made by this subtitle (other than part VI) had never 
been enacted, except that in applying and administering such chap-
ters— 
(1) section 245 of that Act shall be applied and administered 
by substituting ‘‘2011’’ for ‘‘2007’’; 
(2) section 246(b) of that Act shall be applied and adminis-
tered by substituting ‘‘December 31, 2011’’ for ‘‘the date that 
is 5 years’’ and all that follows through ‘‘State’’; 
(3) section 256(b) of that Act shall be applied and adminis-
tered by substituting ‘‘the 1-year period beginning January 
1, 2011’’ for ‘‘each of fiscal years 2003 through 2007, and 
$4,000,000 for the 3-month period beginning October 1, 2007’’; 
(4) section 298(a) of that Act shall be applied and adminis-
tered by substituting ‘‘the 1-year period beginning January 
1, 2011’’ for ‘‘each of the fiscal years’’ and all that follows 
through ‘‘October 1, 2007’’; and 
Effective date. 
19 USC 2271 
note prec. 
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123 STAT. 423 
PUBLIC LAW 111–5—FEB. 17, 2009 
(5) subject to subsection (a)(2), section 285 of that Act 
shall be applied and administered— 
(A) in subsection (a), by substituting ‘‘2011’’ for ‘‘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 
December 31, 2011. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any assistance approved under chapter 3 on or before 
December 31, 2011, 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 
December 31, 2011. 
‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 
any assistance approved under chapter 6 on or before 
December 31, 2011, 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.’’. 
SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT. 
Not later than September 30, 2012, the Comptroller General 
of the United States shall prepare and submit to the Committee 
on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a comprehensive report on the 
operation and effectiveness of the amendments made by this subtitle 
to chapters 2, 3, 4, and 6 of the Trade Act of 1974. 
SEC. 1895. EMERGENCY DESIGNATION. 
Amounts appropriated pursuant to this subtitle are designated 
as an emergency requirement and necessary to meet emergency 
needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) 
and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the 
concurrent resolutions on the budget for fiscal years 2008 and 
2009. 
PART VI—HEALTH COVERAGE IMPROVEMENT 
SEC. 1899. SHORT TITLE. 
This part may be cited as the ‘‘TAA Health Coverage Improve-
ment Act of 2009’’. 
SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT. 
(a) IMPROVEMENT OF AFFORDABILITY.— 
(1) IN GENERAL.—Section 35(a) of the Internal Revenue 
Code of 1986 (relating to credit for health insurance costs 
of eligible individuals) is amended by inserting ‘‘(80 percent 
26 USC 35. 
26 USC 1 note. 
TAA Health 
Coverage 
Improvement Act 
of 2009. 
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123 STAT. 424 
PUBLIC LAW 111–5—FEB. 17, 2009 
in the case of eligible coverage months beginning before 
January 1, 2011)’’ after ‘‘65 percent’’. 
(2) CONFORMING
AMENDMENT.—Section 7527(b) of such 
Code (relating to advance payment of credit for health insurance 
costs of eligible individuals) is amended by inserting ‘‘(80 per-
cent in the case of eligible coverage months beginning before 
January 1, 2011)’’ after ‘‘65 percent’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to coverage months beginning on or after the first 
day of the first month beginning 60 days after the date of the 
enactment of this Act. 
SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO 
COMMENCEMENT OF ADVANCE PAYMENTS OF CREDIT. 
(a) PAYMENT FOR PREMIUMS DUE PRIOR TO COMMENCEMENT 
OF ADVANCE PAYMENTS OF CREDIT.—Section 7527 of the Internal 
Revenue Code of 1986 (relating to advance payment of credit for 
health insurance costs of eligible individuals) is amended by adding 
at the end the following new subsection: 
‘‘(e) PAYMENT FOR PREMIUMS DUE PRIOR TO COMMENCEMENT 
OF ADVANCE PAYMENTS.—In the case of eligible coverage months 
beginning before January 1, 2011— 
‘‘(1) IN
GENERAL.—The program established under sub-
section (a) shall provide that the Secretary shall make 1 or 
more retroactive payments on behalf of a certified individual 
in an aggregate amount equal to 80 percent of the premiums 
for coverage of the taxpayer and qualifying family members 
under qualified health insurance for eligible coverage months 
(as defined in section 35(b)) occurring prior to the first month 
for which an advance payment is made on behalf of such 
individual under subsection (a). 
‘‘(2) REDUCTION OF PAYMENT FOR AMOUNTS RECEIVED UNDER 
NATIONAL EMERGENCY GRANTS.—The amount of any payment 
determined under paragraph (1) shall be reduced by the amount 
of any payment made to the taxpayer for the purchase of 
qualified health insurance under a national emergency grant 
pursuant to section 173(f) of the Workforce Investment Act 
of 1998 for a taxable year including the eligible coverage months 
described in paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to coverage months beginning after December 31, 2008. 
(c) TRANSITIONAL RULE.—The Secretary of the Treasury shall 
not be required to make any payments under section 7527(e) of 
the Internal Revenue Code of 1986, as added by this section, until 
after the date that is 6 months after the date of the enactment 
of this Act. 
SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS 
ELIGIBLE FOR CREDIT. 
(a) IN GENERAL.—Paragraph (2) of section 35(c) of the Internal 
Revenue Code of 1986 (defining eligible TAA recipient) is amended 
to read as follows: 
‘‘(2) ELIGIBLE TAA RECIPIENT.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), the term ‘eligible TAA recipient’ means, with respect 
to any month, any individual who is receiving for any 
day of such month a trade readjustment allowance under 
chapter 2 of title II of the Trade Act of 1974 or who 
26 USC 7527 
note. 
26 USC 7527 
note. 
26 USC 35 note. 
26 USC 7527. 
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123 STAT. 425 
PUBLIC LAW 111–5—FEB. 17, 2009 
would be eligible to receive such allowance if section 231 
of such Act were applied without regard to subsection 
(a)(3)(B) of such section. An individual shall continue to 
be treated as an eligible TAA recipient during the first 
month that such individual would otherwise cease to be 
an eligible TAA recipient by reason of the preceding sen-
tence. 
‘‘(B) SPECIAL RULE.—In the case of any eligible coverage 
month beginning after the date of the enactment of this 
paragraph and before January 1, 2011, the term ‘eligible 
TAA recipient’ means, with respect to any month, any 
individual who— 
‘‘(i) is receiving for any day of such month a trade 
readjustment allowance under chapter 2 of title II of 
the Trade Act of 1974, 
‘‘(ii) would be eligible to receive such allowance 
except that such individual is in a break in training 
provided under a training program approved under 
section 236 of such Act that exceeds the period specified 
in section 233(e) of such Act, but is within the period 
for receiving such allowances provided under section 
233(a) of such Act, or 
‘‘(iii) is receiving unemployment compensation (as 
defined in section 85(b)) for any day of such month 
and who would be eligible to receive such allowance 
for such month if section 231 of such Act were applied 
without regard to subsections (a)(3)(B) and (a)(5) 
thereof. 
An individual shall continue to be treated as an eligible 
TAA recipient during the first month that such individual 
would otherwise cease to be an eligible TAA recipient by 
reason of the preceding sentence.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to coverage months beginning after the date of the 
enactment of this Act. 
SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES 
OF DETERMINING WHETHER THERE IS A 63-DAY LAPSE 
IN CREDITABLE COVERAGE. 
(a) IRC AMENDMENT.—Section 9801(c)(2) of the Internal Rev-
enue Code of 1986 (relating to not counting periods before signifi-
cant breaks in creditable coverage) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) TAA-ELIGIBLE INDIVIDUALS.—In the case of plan 
years beginning before January 1, 2011— 
‘‘(i) TAA PRE-CERTIFICATION PERIOD RULE.—In the 
case of a TAA-eligible individual, the period beginning 
on the date the individual has a TAA-related loss of 
coverage and ending on the date which is 7 days after 
the date of the issuance by the Secretary (or by any 
person or entity designated by the Secretary) of a 
qualified health insurance costs credit eligibility certifi-
cate for such individual for purposes of section 7527 
shall not be taken into account in determining the 
continuous period under subparagraph (A). 
‘‘(ii) DEFINITIONS.—The terms ‘TAA-eligible indi-
vidual’ and ‘TAA-related loss of coverage’ have the 
26 USC 9801. 
26 USC 35 note. 
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123 STAT. 426 
PUBLIC LAW 111–5—FEB. 17, 2009 
meanings 
given 
such 
terms 
in 
section 
4980B(f)(5)(C)(iv).’’. 
(b) ERISA AMENDMENT.—Section 701(c)(2) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is 
amended by adding at the end the following new subparagraph: 
‘‘(C) TAA-ELIGIBLE INDIVIDUALS.—In the case of plan 
years beginning before January 1, 2011— 
‘‘(i) TAA PRE-CERTIFICATION PERIOD RULE.—In the 
case of a TAA-eligible individual, the period beginning 
on the date the individual has a TAA-related loss of 
coverage and ending on the date that is 7 days after 
the date of the issuance by the Secretary (or by any 
person or entity designated by the Secretary) of a 
qualified health insurance costs credit eligibility certifi-
cate for such individual for purposes of section 7527 
of the Internal Revenue Code of 1986 shall not be 
taken into account in determining the continuous 
period under subparagraph (A). 
‘‘(ii) DEFINITIONS.—The terms ‘TAA-eligible indi-
vidual’ and ‘TAA-related loss of coverage’ have the 
meanings given such terms in section 605(b)(4).’’. 
(c) PHSA AMENDMENT.—Section 2701(c)(2) of the Public Health 
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the 
end the following new subparagraph: 
‘‘(C) TAA-ELIGIBLE INDIVIDUALS.—In the case of plan 
years beginning before January 1, 2011— 
‘‘(i) TAA PRE-CERTIFICATION PERIOD RULE.—In the 
case of a TAA-eligible individual, the period beginning 
on the date the individual has a TAA-related loss of 
coverage and ending on the date that is 7 days after 
the date of the issuance by the Secretary (or by any 
person or entity designated by the Secretary) of a 
qualified health insurance costs credit eligibility certifi-
cate for such individual for purposes of section 7527 
of the Internal Revenue Code of 1986 shall not be 
taken into account in determining the continuous 
period under subparagraph (A). 
‘‘(ii) DEFINITIONS.—The terms ‘TAA-eligible indi-
vidual’ and ‘TAA-related loss of coverage’ have the 
meanings given such terms in section 2205(b)(4).’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to plan years beginning after the date of the enactment 
of this Act. 
SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER 
CERTAIN EVENTS. 
(a) IN GENERAL.—Subsection (g) of section 35 of such Code 
is amended by redesignating paragraph (9) as paragraph (10) and 
inserting after paragraph (8) the following new paragraph: 
‘‘(9) CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER 
CERTAIN EVENTS.—In the case of eligible coverage months begin-
ning before January 1, 2011— 
‘‘(A) MEDICARE ELIGIBILITY.—In the case of any month 
which would be an eligible coverage month with respect 
to an eligible individual but for subsection (f)(2)(A), such 
month shall be treated as an eligible coverage month with 
respect to such eligible individual solely for purposes of 
26 USC 35. 
26 USC 9801 
note. 
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123 STAT. 427 
PUBLIC LAW 111–5—FEB. 17, 2009 
determining the amount of the credit under this section 
with respect to any qualifying family members of such 
individual (and any advance payment of such credit under 
section 7527). This subparagraph shall only apply with 
respect to the first 24 months after such eligible individual 
is first entitled to the benefits described in subsection 
(f)(2)(A). 
‘‘(B) DIVORCE.—In the case of the finalization of a 
divorce between an eligible individual and such individual’s 
spouse, such spouse shall be treated as an eligible indi-
vidual for purposes of this section and section 7527 for 
a period of 24 months beginning with the date of such 
finalization, except that the only qualifying family members 
who may be taken into account with respect to such spouse 
are those individuals who were qualifying family members 
immediately before such finalization. 
‘‘(C) DEATH.—In the case of the death of an eligible 
individual— 
‘‘(i) any spouse of such individual (determined at 
the time of such death) shall be treated as an eligible 
individual for purposes of this section and section 7527 
for a period of 24 months beginning with the date 
of such death, except that the only qualifying family 
members who may be taken into account with respect 
to such spouse are those individuals who were quali-
fying family members immediately before such death, 
and 
‘‘(ii) any individual who was a qualifying family 
member of the decedent immediately before such death 
(or, in the case of an individual to whom paragraph 
(4) applies, the taxpayer to whom the deduction under 
section 151 is allowable) shall be treated as an eligible 
individual for purposes of this section and section 7527 
for a period of 24 months beginning with the date 
of such death, except that in determining the amount 
of such credit only such qualifying family member may 
be taken into account.’’. 
(b) CONFORMING AMENDMENT.—Section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding 
at the end the following: 
‘‘(8) CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER 
CERTAIN EVENTS.—In the case of eligible coverage months begin-
ning before January 1, 2011— 
‘‘(A) MEDICARE ELIGIBILITY.—In the case of any month 
which would be an eligible coverage month with respect 
to an eligible individual but for paragraph (7)(B)(i), such 
month shall be treated as an eligible coverage month with 
respect to such eligible individual solely for purposes of 
determining the eligibility of qualifying family members 
of such individual under this subsection. This subparagraph 
shall only apply with respect to the first 24 months after 
such eligible individual is first entitled to the benefits 
described in paragraph (7)(B)(i). 
‘‘(B) DIVORCE.—In the case of the finalization of a 
divorce between an eligible individual and such individual’s 
spouse, such spouse shall be treated as an eligible indi-
vidual for purposes of this subsection for a period of 24 
Applicability. 
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123 STAT. 428 
PUBLIC LAW 111–5—FEB. 17, 2009 
months beginning with the date of such finalization, except 
that the only qualifying family members who may be taken 
into account with respect to such spouse are those individ-
uals who were qualifying family members immediately 
before such finalization. 
‘‘(C) DEATH.—In the case of the death of an eligible 
individual— 
‘‘(i) any spouse of such individual (determined at 
the time of such death) shall be treated as an eligible 
individual for purposes of this subsection for a period 
of 24 months beginning with the date of such death, 
except that the only qualifying family members who 
may be taken into account with respect to such spouse 
are those individuals who were qualifying family mem-
bers immediately before such death, and 
‘‘(ii) any individual who was a qualifying family 
member of the decedent immediately before such death 
shall be treated as an eligible individual for purposes 
this subsection for a period of 24 months beginning 
with the date of such death, except that no qualifying 
family members may be taken into account with 
respect to such individual.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to months beginning after December 31, 2009. 
SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA- 
ELIGIBLE INDIVIDUALS AND PBGC RECIPIENTS. 
(a) ERISA AMENDMENTS.—Section 602(2)(A) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) 
is amended— 
(1) by moving clause (v) to after clause (iv) and before 
the flush left sentence beginning with ‘‘In the case of a qualified 
beneficiary’’; 
(2) by striking ‘‘In the case of a qualified beneficiary’’ and 
inserting the following: 
‘‘(vi) SPECIAL RULE FOR DISABILITY.—In the case 
of a qualified beneficiary’’; and 
(3) by redesignating clauses (v) and (vi), as amended by 
paragraphs (1) and (2), as clauses (vii) and (viii), respectively, 
and by inserting after clause (iv) the following new clauses: 
‘‘(v) SPECIAL RULE FOR PBGC RECIPIENTS.—In the 
case of a qualifying event described in section 603(2) 
with respect to a covered employee who (as of such 
qualifying event) has a nonforfeitable right to a benefit 
any portion of which is to be paid by the Pension 
Benefit Guaranty Corporation under title IV, notwith-
standing clause (i) or (ii), the date of the death of 
the covered employee, or in the case of the surviving 
spouse or dependent children of the covered employee, 
24 months after the date of the death of the covered 
employee. The preceding sentence shall not require 
any period of coverage to extend beyond December 
31, 2010. 
‘‘(vi) SPECIAL
RULE
FOR
TAA-ELIGIBLE
INDIVID-
UALS.—In the case of a qualifying event described in 
section 603(2) with respect to a covered employee who 
is (as of the date that the period of coverage would, 
26 USC 35 note. 
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123 STAT. 429 
PUBLIC LAW 111–5—FEB. 17, 2009 
but for this clause or clause (vii), otherwise terminate 
under clause (i) or (ii)) a TAA-eligible individual (as 
defined in section 605(b)(4)(B)), the period of coverage 
shall not terminate by reason of clause (i) or (ii), as 
the case may be, before the later of the date specified 
in such clause or the date on which such individual 
ceases to be such a TAA-eligible individual. The pre-
ceding sentence shall not require any period of coverage 
to extend beyond December 31, 2010.’’. 
(b) IRC AMENDMENTS.—Clause (i) of section 4980B(f)(2)(B) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘In the case of a qualified beneficiary’’ and 
inserting the following: 
‘‘(VI) SPECIAL RULE FOR DISABILITY.—In the 
case of a qualified beneficiary’’, and 
(2) by redesignating subclauses (V) and (VI), as amended 
by paragraph (1), as subclauses (VII) and (VIII), respectively, 
and by inserting after clause (IV) the following new subclauses: 
‘‘(V) SPECIAL RULE FOR PBGC RECIPIENTS.—In 
the case of a qualifying event described in para-
graph (3)(B) with respect to a covered employee 
who (as of such qualifying event) has a nonforfeit-
able right to a benefit any portion of which is 
to be paid by the Pension Benefit Guaranty Cor-
poration under title IV of the Employee Retirement 
Income Security Act of 1974, notwithstanding sub-
clause (I) or (II), the date of the death of the 
covered employee, or in the case of the surviving 
spouse or dependent children of the covered 
employee, 24 months after the date of the death 
of the covered employee. The preceding sentence 
shall not require any period of coverage to extend 
beyond December 31, 2010. 
‘‘(VI) SPECIAL RULE FOR TAA-ELIGIBLE INDIVID-
UALS.—In the case of a qualifying event described 
in paragraph (3)(B) with respect to a covered 
employee who is (as of the date that the period 
of coverage would, but for this subclause or sub-
clause (VII), otherwise terminate under subclause 
(I) or (II)) a TAA-eligible individual (as defined 
in paragraph (5)(C)(iv)(II)), the period of coverage 
shall not terminate by reason of subclause (I) or 
(II), as the case may be, before the later of the 
date specified in such subclause or the date on 
which such individual ceases to be such a TAA- 
eligible individual. The preceding sentence shall 
not require any period of coverage to extend beyond 
December 31, 2010.’’. 
(c) PHSA AMENDMENTS.—Section 2202(2)(A) of the Public 
Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— 
(1) by striking ‘‘In the case of a qualified beneficiary’’ and 
inserting the following: 
‘‘(v) SPECIAL RULE FOR DISABILITY.—In the case 
of a qualified beneficiary’’; and 
(2) by redesignating clauses (iv) and (v), as amended by 
paragraph (1), as clauses (v) and (vi), respectively, and by 
inserting after clause (iii) the following new clause: 
26 USC 4980B. 
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123 STAT. 430 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(iv) SPECIAL
RULE
FOR
TAA-ELIGIBLE
INDIVID-
UALS.—In the case of a qualifying event described in 
section 2203(2) with respect to a covered employee 
who is (as of the date that the period of coverage 
would, but for this clause or clause (v), otherwise termi-
nate under clause (i) or (ii)) a TAA-eligible individual 
(as defined in section 2205(b)(4)(B)), the period of cov-
erage shall not terminate by reason of clause (i) or 
(ii), as the case may be, before the later of the date 
specified in such clause or the date on which such 
individual ceases to be such a TAA-eligible individual. 
The preceding sentence shall not require any period 
of coverage to extend beyond December 31, 2010.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to periods of coverage which would (without regard 
to the amendments made by this section) end on or after the 
date of the enactment of this Act. 
SEC. 
1899G. 
ADDITION 
OF 
COVERAGE 
THROUGH 
VOLUNTARY 
EMPLOYEES’ BENEFICIARY ASSOCIATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 35(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
new subparagraph: 
‘‘(K) In the case of eligible coverage months beginning 
before January 1, 2011, coverage under an employee benefit 
plan funded by a voluntary employees’ beneficiary associa-
tion (as defined in section 501(c)(9)) established pursuant 
to an order of a bankruptcy court, or by agreement with 
an authorized representative, as provided in section 1114 
of title 11, United States Code.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to coverage months beginning after the date of the 
enactment of this Act. 
SEC. 1899H. NOTICE REQUIREMENTS. 
(a) IN GENERAL.—Subsection (d) of section 7527 of the Internal 
Revenue Code of 1986 (relating to qualified health insurance costs 
credit eligibility certificate) is amended to read as follows: 
‘‘(d) QUALIFIED HEALTH INSURANCE COSTS ELIGIBILITY CERTIFI-
CATE.— 
‘‘(1) IN GENERAL.—For purposes of this section, the term 
‘qualified health insurance costs eligibility certificate’ means 
any written statement that an individual is an eligible indi-
vidual (as defined in section 35(c)) if such statement provides 
such information as the Secretary may require for purposes 
of this section and— 
‘‘(A) in the case of an eligible TAA recipient (as defined 
in section 35(c)(2)) or an eligible alternative TAA recipient 
(as defined in section 35(c)(3)), is certified by the Secretary 
of Labor (or by any other person or entity designated 
by the Secretary), or 
‘‘(B) in the case of an eligible PBGC pension recipient 
(as defined in section 35(c)(4)), is certified by the Pension 
Benefit Guaranty Corporation (or by any other person or 
entity designated by the Secretary). 
‘‘(2) INCLUSION OF CERTAIN INFORMATION.—In the case of 
any statement described in paragraph (1) which is issued before 
January 1, 2011, such statement shall not be treated as a 
26 USC 35 note. 
26 USC 35. 
26 USC 4980B 
note. 
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123 STAT. 431 
PUBLIC LAW 111–5—FEB. 17, 2009 
qualified health insurance costs credit eligibility certificate 
unless such statement includes— 
‘‘(A) the name, address, and telephone number of the 
State office or offices responsible for providing the indi-
vidual with assistance with enrollment in qualified health 
insurance (as defined in section 35(e)), 
‘‘(B) a list of the coverage options that are treated 
as qualified health insurance (as so defined) by the State 
in which the individual resides, and 
‘‘(C) in the case of a TAA-eligible individual (as defined 
in section 4980B(f)(5)(C)(iv)(II)), a statement informing the 
individual that the individual has 63 days from the date 
that is 7 days after the date of the issuance of such certifi-
cate to enroll in such insurance without a lapse in cred-
itable coverage (as defined in section 9801(c)).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to certificates issued after the date that is 6 months 
after the date of the enactment of this Act. 
SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE 
TAX CREDIT PROGRAM. 
(a) SURVEY.— 
(1) IN GENERAL.—The Secretary of the Treasury shall con-
duct a biennial survey of eligible individuals (as defined in 
section 35(c) of the Internal Revenue Code of 1986) relating 
to the health coverage tax credit under section 35 of the Internal 
Revenue Code of 1986 (hereinafter in this section referred 
to as the ‘‘health coverage tax credit’’). 
(2) INFORMATION OBTAINED.—The survey conducted under 
subsection (a) shall obtain the following information: 
(A) HCTC PARTICIPANTS.—In the case of eligible 
individuals receiving the health coverage tax credit 
(including individuals participating in the health coverage 
tax credit program under section 7527 of such Code, herein-
after in this section referred to as the ‘‘HCTC program’’)— 
(i) demographic information of such individuals, 
including income and education levels, 
(ii) satisfaction of such individuals with the enroll-
ment process in the HCTC program, 
(iii) satisfaction of such individuals with available 
health coverage options under the credit, including 
level of premiums, benefits, deductibles, cost-sharing 
requirements, and the adequacy of provider networks, 
and 
(iv) any other information that the Secretary deter-
mines is appropriate. 
(B) NON-HCTC PARTICIPANTS.—In the case of eligible 
individuals not receiving the health coverage tax credit— 
(i) demographic information of each individual, 
including income and education levels, 
(ii) whether the individual was aware of the health 
coverage tax credit or the HCTC program, 
(iii) the reasons the individual has not enrolled 
in the HCTC program, including whether such reasons 
include the burden of the process of enrollment and 
the affordability of coverage, 
26 USC 35 note. 
26 USC 7527 
note. 
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123 STAT. 432 
PUBLIC LAW 111–5—FEB. 17, 2009 
(iv) whether the individual has health insurance 
coverage, and, if so, the source of such coverage, and 
(v) any other information that the Secretary deter-
mines is appropriate. 
(3) REPORT.—Not later than December 31 of each year 
in which a survey is conducted under paragraph (1) (beginning 
in 2010), the Secretary of the Treasury shall report to the 
Committee on Finance and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the Committee 
on Ways and Means, the Committee on Education and Labor, 
and the Committee on Energy and Commerce of the House 
of Representatives the findings of the most recent survey con-
ducted under paragraph (1). 
(b) REPORT.—Not later than October 1 of each year (beginning 
in 2010), the Secretary of the Treasury (after consultation with 
the Secretary of Health and Human Services, and, in the case 
of the information required under paragraph (7), the Secretary 
of Labor) shall report to the Committee on Finance and the Com-
mittee on Health, Education, Labor, and Pensions of the Senate 
and the Committee on Ways and Means, the Committee on Edu-
cation and Labor, and the Committee on Energy and Commerce 
of the House of Representatives the following information with 
respect to the most recent taxable year ending before such date: 
(1) In each State and nationally— 
(A) the total number of eligible individuals (as defined 
in section 35(c) of the Internal Revenue Code of 1986) 
and the number of eligible individuals receiving the health 
coverage tax credit, 
(B) the total number of such eligible individuals who 
receive an advance payment of the health coverage tax 
credit through the HCTC program, 
(C) the average length of the time period of the partici-
pation of eligible individuals in the HCTC program, and 
(D) the total number of participating eligible individ-
uals in the HCTC program who are enrolled in each cat-
egory of coverage as described in section 35(e)(1) of such 
Code, 
with respect to each category of eligible individuals described 
in section 35(c)(1) of such Code. 
(2) In each State and nationally, an analysis of— 
(A) the range of monthly health insurance premiums, 
for self-only coverage and for family coverage, for individ-
uals receiving the health coverage tax credit, and 
(B) the average and median monthly health insurance 
premiums, for self-only coverage and for family coverage, 
for individuals receiving the health coverage tax credit, 
with respect to each category of coverage as described in section 
35(e)(1) of such Code. 
(3) In each State and nationally, an analysis of the following 
information with respect to the health insurance coverage of 
individuals receiving the health coverage tax credit who are 
enrolled in coverage described in subparagraphs (B) through 
(H) of section 35(e)(1) of such Code: 
(A) Deductible amounts. 
(B) Other out-of-pocket cost-sharing amounts. 
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123 STAT. 433 
PUBLIC LAW 111–5—FEB. 17, 2009 
(C) A description of any annual or lifetime limits on 
coverage or any other significant limits on coverage serv-
ices, or benefits. 
The information required under this paragraph shall be 
reported with respect to each category of coverage described 
in such subparagraphs. 
(4) In each State and nationally, the gender and average 
age of eligible individuals (as defined in section 35(c) of such 
Code) who receive the health coverage tax credit, in each cat-
egory of coverage described in section 35(e)(1) of such Code, 
with respect to each category of eligible individuals described 
in such section. 
(5) The steps taken by the Secretary of the Treasury to 
increase the participation rates in the HCTC program among 
eligible individuals, including outreach and enrollment activi-
ties. 
(6) The cost of administering the HCTC program by func-
tion, including the cost of subcontractors, and recommendations 
on ways to reduce administrative costs, including recommended 
statutory changes. 
(7) The number of States applying for and receiving 
national emergency grants under section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)), the activities funded 
by such grants on a State-by-State basis, and the time necessary 
for application approval of such grants. 
SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $80,000,000 for the 
period of fiscal years 2009 through 2010 to implement the amend-
ments made by, and the provisions of, sections 1899 through 1899I 
of this part. 
SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS. 
(a) IN GENERAL.—Section 173(f) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2918(f)), as amended by this Act, is 
amended— 
(1) by striking paragraph (1) and inserting the following 
new paragraph: 
‘‘(1) USE OF FUNDS.— 
‘‘(A) HEALTH
INSURANCE
COVERAGE
FOR
ELIGIBLE 
INDIVIDUALS IN ORDER TO OBTAIN QUALIFIED HEALTH INSUR-
ANCE THAT HAS GUARANTEED ISSUE AND OTHER CONSUMER 
PROTECTIONS.—Funds made available to a State or entity 
under paragraph (4)(A) of subsection (a) may be used to 
provide an eligible individual described in paragraph (4)(C) 
and such individual’s qualifying family members with 
health insurance coverage for the 3-month period that 
immediately precedes the first eligible coverage month (as 
defined in section 35(b) of the Internal Revenue Code of 
1986) in which such eligible individual and such individ-
ual’s qualifying family members are covered by qualified 
health insurance that meets the requirements described 
in clauses (i) through (v) of section 35(e)(2)(A) of the 
Internal Revenue Code of 1986 (or such longer minimum 
period as is necessary in order for such eligible individual 
and such individual’s qualifying family members to be cov-
ered by qualified health insurance that meets such require-
ments). 
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123 STAT. 434 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) ADDITIONAL
USES.—Funds made available to a 
State or entity under paragraph (4)(A) of subsection (a) 
may be used by the State or entity for the following: 
‘‘(i) HEALTH INSURANCE COVERAGE.—To assist an 
eligible individual and such individual’s qualifying 
family members with enrolling in health insurance 
coverage and qualified health insurance or paying pre-
miums for such coverage or insurance. 
‘‘(ii) ADMINISTRATIVE
EXPENSES
AND
START-UP 
EXPENSES TO ESTABLISH GROUP HEALTH PLAN COVERAGE 
OPTIONS FOR QUALIFIED HEALTH INSURANCE.—To pay 
the administrative expenses related to the enrollment 
of eligible individuals and such individuals’ qualifying 
family members in health insurance coverage and 
qualified health insurance, including— 
‘‘(I) eligibility verification activities; 
‘‘(II) the notification of eligible individuals of 
available health insurance and qualified health 
insurance options; 
‘‘(III) processing qualified health insurance 
costs credit eligibility certificates provided for 
under section 7527 of the Internal Revenue Code 
of 1986; 
‘‘(IV) providing assistance to eligible individ-
uals in enrolling in health insurance coverage and 
qualified health insurance; 
‘‘(V) the development or installation of nec-
essary data management systems; and 
‘‘(VI) any other expenses determined appro-
priate by the Secretary, including start-up costs 
and on going administrative expenses, in order 
for the State to treat the coverage described in 
subparagraphs (C) through (H) of section 35(e)(1) 
of the Internal Revenue Code of 1986 as qualified 
health insurance under that section. 
‘‘(iii) OUTREACH.—To pay for outreach to eligible 
individuals to inform such individuals of available 
health insurance and qualified health insurance 
options, including outreach consisting of notice to 
eligible individuals of such options made available after 
the date of enactment of this clause and direct assist-
ance to help potentially eligible individuals and such 
individual’s qualifying family members qualify and 
remain eligible for the credit established under section 
35 of the Internal Revenue Code of 1986 and advance 
payment of such credit under section 7527 of such 
Code. 
‘‘(iv) BRIDGE
FUNDING.—To assist potentially 
eligible individuals to purchase qualified health insur-
ance coverage prior to issuance of a qualified health 
insurance costs credit eligibility certificate under sec-
tion 7527 of the Internal Revenue Code of 1986 and 
commencement of advance payment, and receipt of 
expedited payment, under subsections (a) and (e), 
respectively, of that section. 
‘‘(C) RULE OF CONSTRUCTION.—The inclusion of a per-
mitted use under this paragraph shall not be construed 
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123 STAT. 435 
PUBLIC LAW 111–5—FEB. 17, 2009 
as prohibiting a similar use of funds permitted under sub-
section (g).’’; and 
(2) by striking paragraph (2) and inserting the following 
new paragraph: 
‘‘(2) QUALIFIED HEALTH INSURANCE.—For purposes of this 
subsection and subsection (g), the term ‘qualified health insur-
ance’ has the meaning given that term in section 35(e) of 
the Internal Revenue Code of 1986.’’. 
(b) FUNDING.—Section 174(c)(1) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2919(c)(1)) is amended— 
(1) in the paragraph heading, by striking ‘‘AUTHORIZATION 
AND
APPROPRIATION
FOR
FISCAL
YEAR
2002’’ and inserting 
‘‘APPROPRIATIONS’’; and 
(2) by striking subparagraph (A) and inserting the following 
new subparagraph: 
‘‘(A) to carry out subsection (a)(4)(A) of section 173— 
‘‘(i) $10,000,000 for fiscal year 2002; and 
‘‘(ii) $150,000,000 for the period of fiscal years 
2009 through 2010; and’’. 
SEC. 1899L. GAO STUDY AND REPORT. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study regarding the health insurance tax credit allowed 
under section 35 of the Internal Revenue Code of 1986. 
(b) REPORT.—Not later than March 1, 2010, the Comptroller 
General shall submit a report to Congress regarding the results 
of the study conducted under subsection (a). Such report shall 
include an analysis of— 
(1) the administrative costs— 
(A) of the Federal Government with respect to such 
credit and the advance payment of such credit under section 
7527 of such Code, and 
(B) of providers of qualified health insurance with 
respect to providing such insurance to eligible individuals 
and their qualifying family members, 
(2) the health status and relative risk status of eligible 
individuals and qualifying family members covered under such 
insurance, 
(3) participation in such credit and the advance payment 
of such credit by eligible individuals and their qualifying family 
members, including the reasons why such individuals did or 
did not participate and the effect of the amendments made 
by this part on such participation, and 
(4) the extent to which eligible individuals and their quali-
fying family members— 
(A) obtained health insurance other than qualifying 
health insurance, or 
(B) went without health insurance coverage. 
(c) ACCESS TO RECORDS.—For purposes of conducting the study 
required under this section, the Comptroller General and any of 
his duly authorized representatives shall have access to, and the 
right to examine and copy, all documents, records, and other 
recorded information— 
(1) within the possession or control of providers of qualified 
health insurance, and 
(2) determined by the Comptroller General (or any such 
representative) to be relevant to the study. 
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123 STAT. 436 
PUBLIC LAW 111–5—FEB. 17, 2009 
The Comptroller General shall not disclose the identity of any 
provider of qualified health insurance or any eligible individual 
in making any information obtained under this section available 
to the public. 
(d) DEFINITIONS.—Any term which is defined in section 35 
of the Internal Revenue Code of 1986 shall have the same meaning 
when used in this section. 
TITLE 
II—ASSISTANCE 
FOR 
UNEM-
PLOYED WORKERS AND STRUGGLING 
FAMILIES 
SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.‘ 
(a) SHORT TITLE.—This title may be cited as the ‘‘Assistance 
for Unemployed Workers and Struggling Families Act’’. 
(b) TABLE OF CONTENTS OF TITLE.—The table of contents of 
this title is as follows: 
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING 
FAMILIES 
Sec. 2000. Short title; table of contents of title. 
Subtitle A—Unemployment Insurance 
Sec. 2001. Extension of emergency unemployment compensation program. 
Sec. 2002. Increase in unemployment compensation benefits. 
Sec. 2003. Special transfers for unemployment compensation modernization. 
Sec. 2004. Temporary assistance for states with advances. 
Sec. 2005. Full Federal funding of extended unemployment compensation for a lim-
ited period. 
Sec. 2006. Temporary increase in extended unemployment benefits under the Rail-
road Unemployment Insurance Act. 
Subtitle B—Assistance for Vulnerable Individuals 
Sec. 2101. Emergency fund for TANF program. 
Sec. 2102. Extension of TANF supplemental grants. 
Sec. 2103. Clarification of authority of States to use TANF funds carried over from 
prior years to provide TANF benefits and services. 
Sec. 2104. Temporary resumption of prior child support law. 
Subtitle C—Economic Recovery Payments to Certain Individuals 
Sec. 2201. Economic recovery payment to recipients of social security, supplemental 
security income, railroad retirement benefits, and veterans disability 
compensation or pension benefits. 
Sec. 2202. Special credit for certain government retirees. 
Subtitle A—Unemployment Insurance 
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSA-
TION PROGRAM. 
(a) IN GENERAL.—Section 4007 of the Supplemental Appropria-
tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as 
amended by section 4 of the Unemployment Compensation Exten-
sion Act of 2008 (Public Law 110–449; 122 Stat. 5015), is amended— 
(1) by striking ‘‘March 31, 2009’’ each place it appears 
and inserting ‘‘December 31, 2009’’; 
(2) in the heading for subsection (b)(2), by striking ‘‘MARCH 
31, 2009’’ and inserting ‘‘DECEMBER 31, 2009’’; and 
(3) in subsection (b)(3), by striking ‘‘August 27, 2009’’ and 
inserting ‘‘May 31, 2010’’. 
26 USC 1 note. 
Assistance for 
Unemployed 
Workers and 
Struggling 
Families Act. 
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123 STAT. 437 
PUBLIC LAW 111–5—FEB. 17, 2009 
(b) FINANCING
PROVISIONS.—Section 4004 of such Act is 
amended by adding at the end the following: 
‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any other provision 
of law, the Secretary of the Treasury shall transfer from the general 
fund of the Treasury (from funds not otherwise appropriated)— 
‘‘(1) to the extended unemployment compensation account 
(as established by section 905 of the Social Security Act) such 
sums as the Secretary of Labor estimates to be necessary 
to make payments to States under this title by reason of the 
amendments made by section 2001(a) of the Assistance for 
Unemployed Workers and Struggling Families Act; and 
‘‘(2) to the employment security administration account 
(as established by section 901 of the Social Security Act) such 
sums as the Secretary of Labor estimates to be necessary 
for purposes of assisting States in meeting administrative costs 
by reason of the amendments referred to in paragraph (1). 
There are appropriated from the general fund of the Treasury, 
without fiscal year limitation, the sums referred to in the preceding 
sentence and such sums shall not be required to be repaid.’’. 
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS. 
(a) FEDERAL-STATE AGREEMENTS.—Any State which desires to 
do so may enter into and participate in an agreement under this 
section with the Secretary of Labor (hereinafter in this section 
referred to as the ‘‘Secretary’’). Any State which is a party to 
an agreement under this section may, upon providing 30 days’ 
written notice to the Secretary, terminate such agreement. 
(b) PROVISIONS OF AGREEMENT.— 
(1) ADDITIONAL COMPENSATION.—Any agreement under this 
section shall provide that the State agency of the State will 
make payments of regular compensation to individuals in 
amounts and to the extent that they would be determined 
if the State law of the State were applied, with respect to 
any week for which the individual is (disregarding this section) 
otherwise entitled under the State law to receive regular com-
pensation, as if such State law had been modified in a manner 
such that the amount of regular compensation (including 
dependents’ allowances) payable for any week shall be equal 
to the amount determined under the State law (before the 
application of this paragraph) plus an additional $25. 
(2) ALLOWABLE
METHODS
OF
PAYMENT.—Any additional 
compensation provided for in accordance with paragraph (1) 
shall be payable either— 
(A) as an amount which is paid at the same time 
and in the same manner as any regular compensation 
otherwise payable for the week involved; or 
(B) at the option of the State, by payments which 
are made separately from, but on the same weekly basis 
as, any regular compensation otherwise payable. 
(c) NONREDUCTION RULE.—An agreement under this section 
shall not apply (or shall cease to apply) with respect to a State 
upon a determination by the Secretary that the method governing 
the computation of regular compensation under the State law of 
that State has been modified in a manner such that— 
(1) the average weekly benefit amount of regular compensa-
tion which will be payable during the period of the agreement 
(determined disregarding any additional amounts attributable 
Notification. 
26 USC 3304 
note. 
26 USC 3304 
note. 
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123 STAT. 438 
PUBLIC LAW 111–5—FEB. 17, 2009 
to the modification described in subsection (b)(1)) will be less 
than 
(2) the average weekly benefit amount of regular compensa-
tion which would otherwise have been payable during such 
period under the State law, as in effect on December 31, 2008. 
(d) PAYMENTS TO STATES.— 
(1) IN GENERAL.— 
(A) FULL REIMBURSEMENT.—There shall be paid to each 
State which has entered into an agreement under this 
section an amount equal to 100 percent of— 
(i) the total amount of additional compensation 
(as described in subsection (b)(1)) paid to individuals 
by the State pursuant to such agreement; and 
(ii) 
any 
additional 
administrative 
expenses 
incurred by the State by reason of such agreement 
(as determined by the Secretary). 
(B) TERMS OF PAYMENTS.—Sums payable to any State 
by reason of such State’s having an agreement under this 
section shall be payable, either in advance or by way of 
reimbursement (as determined by the Secretary), in such 
amounts as the Secretary estimates the State will be enti-
tled to receive under this section for each calendar month, 
reduced or increased, as the case may be, by any amount 
by which the Secretary finds that his estimates for any 
prior calendar month were greater or less than the amounts 
which should have been paid to the State. Such estimates 
may be made on the basis of such statistical, sampling, 
or other method as may be agreed upon by the Secretary 
and the State agency of the State involved. 
(2) CERTIFICATIONS.—The Secretary shall from time to time 
certify to the Secretary of the Treasury for payment to each 
State the sums payable to such State under this section. 
(3) APPROPRIATION.—There are appropriated from the gen-
eral fund of the Treasury, without fiscal year limitation, such 
sums as may be necessary for purposes of this subsection. 
(e) APPLICABILITY.— 
(1) IN GENERAL.—An agreement entered into under this 
section shall apply to weeks of unemployment— 
(A) beginning after the date on which such agreement 
is entered into; and 
(B) ending before January 1, 2010. 
(2) TRANSITION RULE FOR INDIVIDUALS REMAINING ENTITLED 
TO
REGULAR
COMPENSATION
AS
OF
JANUARY
1, 2010.—In the 
case of any individual who, as of the date specified in paragraph 
(1)(B), has not yet exhausted all rights to regular compensation 
under the State law of a State with respect to a benefit year 
that began before such date, additional compensation (as 
described in subsection (b)(1)) shall continue to be payable 
to such individual for any week beginning on or after such 
date for which the individual is otherwise eligible for regular 
compensation with respect to such benefit year. 
(3) TERMINATION.—Notwithstanding any other provision of 
this subsection, no additional compensation (as described in 
subsection (b)(1)) shall be payable for any week beginning after 
June 30, 2010. 
(f) FRAUD AND OVERPAYMENTS.—The provisions of section 4005 
of the Supplemental Appropriations Act, 2008 (Public Law 110– 
Applicability. 
Time period. 
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123 STAT. 439 
PUBLIC LAW 111–5—FEB. 17, 2009 
252; 122 Stat. 2356) shall apply with respect to additional com-
pensation (as described in subsection (b)(1)) to the same extent 
and in the same manner as in the case of emergency unemployment 
compensation. 
(g) APPLICATION TO OTHER UNEMPLOYMENT BENEFITS.— 
(1) IN GENERAL.—Each agreement under this section shall 
include provisions to provide that the purposes of the preceding 
provisions of this section shall be applied with respect to 
unemployment benefits described in subsection (i)(3) to the 
same extent and in the same manner as if those benefits 
were regular compensation. 
(2) ELIGIBILITY AND TERMINATION RULES.—Additional com-
pensation (as described in subsection (b)(1))— 
(A) shall not be payable, pursuant to this subsection, 
with respect to any unemployment benefits described in 
subsection (i)(3) for any week beginning on or after the 
date specified in subsection (e)(1)(B), except in the case 
of an individual who was eligible to receive additional 
compensation (as so described) in connection with any reg-
ular compensation or any unemployment benefits described 
in subsection (i)(3) for any period of unemployment ending 
before such date; and 
(B) shall in no event be payable for any week beginning 
after the date specified in subsection (e)(3). 
(h) DISREGARD OF ADDITIONAL COMPENSATION FOR PURPOSES 
OF MEDICAID AND SCHIP.—The monthly equivalent of any addi-
tional compensation paid under this section shall be disregarded 
in considering the amount of income of an individual for any pur-
poses under title XIX and title XXI of the Social Security Act. 
(i) DEFINITIONS.—For purposes of this section— 
(1) the terms ‘‘compensation’’, ‘‘regular compensation’’, ‘‘ben-
efit year’’, ‘‘State’’, ‘‘State agency’’, ‘‘State law’’, and ‘‘week’’ 
have the respective meanings given such terms under section 
205 of the Federal-State Extended Unemployment Compensa-
tion Act of 1970 (26 U.S.C. 3304 note); 
(2) the term ‘‘emergency unemployment compensation’’ 
means emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008 (Public Law 110– 
252; 122 Stat. 2353); and 
(3) any reference to unemployment benefits described in 
this paragraph shall be considered to refer to— 
(A) extended compensation (as defined by section 205 
of the Federal-State Extended Unemployment Compensa-
tion Act of 1970); and 
(B) unemployment compensation (as defined by section 
85(b) of the Internal Revenue Code of 1986) provided under 
any program administered by a State under an agreement 
with the Secretary. 
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION 
MODERNIZATION. 
(a) IN GENERAL.—Section 903 of the Social Security Act (42 
U.S.C. 1103) is amended by adding at the end the following: 
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123 STAT. 440 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 for 
Modernization 
‘‘(f)(1)(A) In addition to any other amounts, the Secretary of 
Labor shall provide for the making of unemployment compensation 
modernization incentive payments (hereinafter ‘incentive pay-
ments’) to the accounts of the States in the Unemployment Trust 
Fund, by transfer from amounts reserved for that purpose in the 
Federal unemployment account, in accordance with succeeding 
provisions of this subsection. 
‘‘(B) The maximum incentive payment allowable under this 
subsection with respect to any State shall, as determined by the 
Secretary of Labor, be equal to the amount obtained by multiplying 
$7,000,000,000 by the same ratio as would apply under subsection 
(a)(2)(B) for purposes of determining such State’s share of any 
excess amount (as described in subsection (a)(1)) that would have 
been subject to transfer to State accounts, as of October 1, 2008, 
under the provisions of subsection (a). 
‘‘(C) Of the maximum incentive payment determined under 
subparagraph (B) with respect to a State— 
‘‘(i) one-third shall be transferred to the account of such 
State upon a certification under paragraph (4)(B) that the State 
law of such State meets the requirements of paragraph (2); 
and 
‘‘(ii) the remainder shall be transferred to the account 
of such State upon a certification under paragraph (4)(B) that 
the State law of such State meets the requirements of para-
graph (3). 
‘‘(2) The State law of a State meets the requirements of this 
paragraph if such State law— 
‘‘(A) uses a base period that includes the most recently 
completed calendar quarter before the start of the benefit year 
for purposes of determining eligibility for unemployment com-
pensation; or 
‘‘(B) provides that, in the case of an individual who would 
not otherwise be eligible for unemployment compensation under 
the State law because of the use of a base period that does 
not include the most recently completed calendar quarter before 
the start of the benefit year, eligibility shall be determined 
using a base period that includes such calendar quarter. 
‘‘(3) The State law of a State meets the requirements of this 
paragraph if such State law includes provisions to carry out at 
least 2 of the following subparagraphs: 
‘‘(A) An individual shall not be denied regular unemploy-
ment compensation under any State law provisions relating 
to availability for work, active search for work, or refusal to 
accept work, solely because such individual is seeking only 
part-time work (as defined by the Secretary of Labor), except 
that the State law provisions carrying out this subparagraph 
may exclude an individual if a majority of the weeks of work 
in such individual’s base period do not include part-time work 
(as so defined). 
‘‘(B) An individual shall not be disqualified from regular 
unemployment compensation for separating from employment 
if that separation is for any compelling family reason. For 
purposes of this subparagraph, the term ‘compelling family 
reason’ means the following: 
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123 STAT. 441 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(i) Domestic violence, verified by such reasonable and 
confidential documentation as the State law may require, 
which causes the individual reasonably to believe that such 
individual’s continued employment would jeopardize the 
safety of the individual or of any member of the individual’s 
immediate family (as defined by the Secretary of Labor). 
‘‘(ii) The illness or disability of a member of the individ-
ual’s immediate family (as those terms are defined by the 
Secretary of Labor). 
‘‘(iii) The need for the individual to accompany such 
individual’s spouse— 
‘‘(I) to a place from which it is impractical for 
such individual to commute; and 
‘‘(II) due to a change in location of the spouse’s 
employment. 
‘‘(C)(i) Weekly unemployment compensation is payable 
under this subparagraph to any individual who is unemployed 
(as determined under the State unemployment compensation 
law), has exhausted all rights to regular unemployment com-
pensation under the State law, and is enrolled and making 
satisfactory progress in a State-approved training program or 
in a job training program authorized under the Workforce 
Investment Act of 1998, except that such compensation is not 
required to be paid to an individual who is receiving similar 
stipends or other training allowances for non-training costs. 
‘‘(ii) Each State-approved training program or job training 
program referred to in clause (i) shall prepare individuals who 
have been separated from a declining occupation, or who have 
been involuntarily and indefinitely separated from employment 
as a result of a permanent reduction of operations at the 
individual’s place of employment, for entry into a high-demand 
occupation. 
‘‘(iii) The amount of unemployment compensation payable 
under this subparagraph to an individual for a week of 
unemployment shall be equal to— 
‘‘(I) the individual’s average weekly benefit amount 
(including dependents’ allowances) for the most recent ben-
efit year, less 
‘‘(II) any deductible income, as determined under State 
law. 
The total amount of unemployment compensation payable 
under this subparagraph to any individual shall be equal to 
at least 26 times the individual’s average weekly benefit 
amount (including dependents’ allowances) for the most recent 
benefit year. 
‘‘(D) Dependents’ allowances are provided, in the case of 
any individual who is entitled to receive regular unemployment 
compensation and who has any dependents (as defined by State 
law), in an amount equal to at least $15 per dependent per 
week, subject to any aggregate limitation on such allowances 
which the State law may establish (but which aggregate limita-
tion on the total allowance for dependents paid to an individual 
may not be less than $50 for each week of unemployment 
or 50 percent of the individual’s weekly benefit amount for 
the benefit year, whichever is less), except that a State law 
may provide for a reasonable reduction in the amount of any 
such allowance for a week of less than total unemployment. 
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123 STAT. 442 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(4)(A) Any State seeking an incentive payment under this 
subsection shall submit an application therefor at such time, in 
such manner, and complete with such information as the Secretary 
of Labor may within 60 days after the date of the enactment 
of this subsection prescribe (whether by regulation or otherwise), 
including information relating to compliance with the requirements 
of paragraph (2) or (3), as well as how the State intends to use 
the incentive payment to improve or strengthen the State’s 
unemployment compensation program. The Secretary of Labor shall, 
within 30 days after receiving a complete application, notify the 
State agency of the State of the Secretary’s findings with respect 
to the requirements of paragraph (2) or (3) (or both). 
‘‘(B)(i) If the Secretary of Labor finds that the State law provi-
sions (disregarding any State law provisions which are not then 
currently in effect as permanent law or which are subject to dis-
continuation) meet the requirements of paragraph (2) or (3), as 
the case may be, the Secretary of Labor shall thereupon make 
a certification to that effect to the Secretary of the Treasury, 
together with a certification as to the amount of the incentive 
payment to be transferred to the State account pursuant to that 
finding. The Secretary of the Treasury shall make the appropriate 
transfer within 7 days after receiving such certification. 
‘‘(ii) For purposes of clause (i), State law provisions which 
are to take effect within 12 months after the date of their certifi-
cation under this subparagraph shall be considered to be in effect 
as of the date of such certification. 
‘‘(C)(i) No certification of compliance with the requirements 
of paragraph (2) or (3) may be made with respect to any State 
whose State law is not otherwise eligible for certification under 
section 303 or approvable under section 3304 of the Federal 
Unemployment Tax Act. 
‘‘(ii) No certification of compliance with the requirements of 
paragraph (3) may be made with respect to any State whose State 
law is not in compliance with the requirements of paragraph (2). 
‘‘(iii) No application under subparagraph (A) may be considered 
if submitted before the date of the enactment of this subsection 
or after the latest date necessary (as specified by the Secretary 
of Labor) to ensure that all incentive payments under this sub-
section are made before October 1, 2011. 
‘‘(5)(A) Except as provided in subparagraph (B), any amount 
transferred to the account of a State under this subsection may 
be used by such State only in the payment of cash benefits to 
individuals with respect to their unemployment (including for 
dependents’ allowances and for unemployment compensation under 
paragraph (3)(C)), exclusive of expenses of administration. 
‘‘(B) A State may, subject to the same conditions as set forth 
in subsection (c)(2) (excluding subparagraph (B) thereof, and 
deeming the reference to ‘subsections (a) and (b)’ in subparagraph 
(D) thereof to include this subsection), use any amount transferred 
to the account of such State under this subsection for the adminis-
tration of its unemployment compensation law and public employ-
ment offices. 
‘‘(6) Out of any money in the Federal unemployment account 
not otherwise appropriated, the Secretary of the Treasury shall 
reserve $7,000,000,000 for incentive payments under this sub-
section. Any amount so reserved shall not be taken into account 
for purposes of any determination under section 902, 910, or 1203 
Deadline. 
Effective date. 
Deadline. 
Certifications. 
Deadline. 
Notification. 
Application. 
Deadline. 
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123 STAT. 443 
PUBLIC LAW 111–5—FEB. 17, 2009 
of the amount in the Federal unemployment account as of any 
given time. Any amount so reserved for which the Secretary of 
the Treasury has not received a certification under paragraph (4)(B) 
by the deadline described in paragraph (4)(C)(iii) shall, upon the 
close of fiscal year 2011, become unrestricted as to use as part 
of the Federal unemployment account. 
‘‘(7) For purposes of this subsection, the terms ‘benefit year’, 
‘base period’, and ‘week’ have the respective meanings given such 
terms under section 205 of the Federal-State Extended Unemploy-
ment Compensation Act of 1970 (26 U.S.C. 3304 note). 
‘‘Special Transfer in Fiscal Year 2009 for Administration 
‘‘(g)(1) In addition to any other amounts, the Secretary of the 
Treasury shall transfer from the employment security administra-
tion account to the account of each State in the Unemployment 
Trust Fund, within 30 days after the date of the enactment of 
this subsection, the amount determined with respect to such State 
under paragraph (2). 
‘‘(2) The amount to be transferred under this subsection to 
a State account shall (as determined by the Secretary of Labor 
and certified by such Secretary to the Secretary of the Treasury) 
be equal to the amount obtained by multiplying $500,000,000 by 
the same ratio as determined under subsection (f)(1)(B) with respect 
to such State. 
‘‘(3) Any amount transferred to the account of a State as a 
result of the enactment of this subsection may be used by the 
State agency of such State only in the payment of expenses incurred 
by it for— 
‘‘(A) the administration of the provisions of its State law 
carrying out the purposes of subsection (f)(2) or any subpara-
graph of subsection (f)(3); 
‘‘(B) improved outreach to individuals who might be eligible 
for regular unemployment compensation by virtue of any provi-
sions of the State law which are described in subparagraph 
(A); 
‘‘(C) the improvement of unemployment benefit and 
unemployment 
tax 
operations, 
including 
responding 
to 
increased demand for unemployment compensation; and 
‘‘(D) staff-assisted reemployment services for unemploy-
ment compensation claimants.’’. 
(b) REGULATIONS.—The Secretary of Labor may prescribe any 
regulations, operating instructions, or other guidance necessary to 
carry out the amendment made by subsection (a). 
SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES. 
Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) 
is amended by adding at the end the following new paragraph: 
‘‘(10)(A) With respect to the period beginning on the date of 
enactment of this paragraph and ending on December 31, 2010— 
‘‘(i) any interest payment otherwise due from a State under 
this subsection during such period shall be deemed to have 
been made by the State; and 
‘‘(ii) no interest shall accrue during such period on any 
advance or advances made under section 1201 to a State. 
‘‘(B) The provisions of subparagraph (A) shall have no effect 
on the requirement for interest payments under this subsection 
Time period. 
42 USC 1103 
note. 
Deadline. 
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123 STAT. 444 
PUBLIC LAW 111–5—FEB. 17, 2009 
after the period described in such subparagraph or on the accrual 
of interest under this subsection after such period.’’. 
SEC. 2005. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT 
COMPENSATION FOR A LIMITED PERIOD. 
(a) IN GENERAL.—In the case of sharable extended compensa-
tion and sharable regular compensation paid for weeks of unemploy-
ment beginning after the date of the enactment of this section 
and before January 1, 2010, section 204(a)(1) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note) shall be applied by substituting ‘‘100 percent of’’ for 
‘‘one-half of’’. 
(b) SPECIAL RULE.—At the option of a State, for any weeks 
of unemployment beginning after the date of the enactment of 
this section and before January 1, 2010, an individual’s eligibility 
period (as described in section 203(c) of the Federal-State Extended 
Unemployment Compensation Act of 1970) shall, for purposes of 
any determination of eligibility for extended compensation under 
the State law of such State, be considered to include any week 
which begins— 
(1) after the date as of which such individual exhausts 
all rights to emergency unemployment compensation; and 
(2) during an extended benefit period that began on or 
before the date described in paragraph (1). 
(c) LIMITED EXTENSION.—In the case of an individual who 
receives extended compensation with respect to 1 or more weeks 
of unemployment beginning after the date of the enactment of 
this Act and before January 1, 2010, the provisions of subsections 
(a) and (b) shall, at the option of a State, be applied by substituting 
‘‘ending before June 1, 2010’’ for ‘‘before January 1, 2010’’. 
(d) EXTENSION OF TEMPORARY FEDERAL MATCHING FOR THE 
FIRST WEEK OF EXTENDED BENEFITS FOR STATES WITH NO WAITING 
WEEK.— 
(1) IN GENERAL.—Section 5 of the Unemployment Com-
pensation Extension Act of 2008 (Public Law 110–449) is 
amended by striking ‘‘December 8, 2009’’ and inserting ‘‘May 
30, 2010’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall take effect as if included in the enactment of the 
Unemployment Compensation Extension Act of 2008 (Public 
Law 110–449). 
(e) DEFINITIONS.—For purposes of this section— 
(1) the terms ‘‘sharable extended compensation’’ and ‘‘shar-
able regular compensation’’ have the respective meanings given 
such terms under section 204 of the Federal-State Extended 
Unemployment Compensation Act of 1970; 
(2) the terms ‘‘extended compensation’’, ‘‘State’’, ‘‘State law’’, 
and ‘‘week’’ have the respective meanings given such terms 
under section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970; 
(3) the term ‘‘emergency unemployment compensation’’ 
means benefits payable to individuals under title IV of the 
Supplemental Appropriations Act, 2008 with respect to their 
unemployment; and 
(4) the term ‘‘extended benefit period’’ means an extended 
benefit period as determined in accordance with applicable 
26 USC 3304 
note. 
Applicability. 
Applicability. 
26 USC 3304 
note. 
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123 STAT. 445 
PUBLIC LAW 111–5—FEB. 17, 2009 
provisions of the Federal-State Extended Unemployment Com-
pensation Act of 1970. 
(f) REGULATIONS.—The Secretary of Labor may prescribe any 
operating instructions or regulations necessary to carry out this 
section. 
SEC. 2006. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT 
BENEFITS 
UNDER 
THE 
RAILROAD 
UNEMPLOYMENT 
INSURANCE ACT. 
(a) IN GENERAL.—Section 2(c)(2) of the Railroad Unemployment 
Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the 
end the following: 
‘‘(D) TEMPORARY
INCREASE
IN
EXTENDED
UNEMPLOY-
MENT BENEFITS.— 
‘‘(i) EMPLOYEES
WITH
10
OR
MORE
YEARS
OF 
SERVICE.—Subject to clause (iii), in the case of an 
employee who has 10 or more years of service (as 
so defined), with respect to extended unemployment 
benefits— 
‘‘(I) subparagraph (A) shall be applied by sub-
stituting ‘130 days of unemployment’ for ‘65 days 
of unemployment’; and 
‘‘(II) subparagraph (B) shall be applied by 
inserting ‘(or, in the case of unemployment bene-
fits, 13 consecutive 14-day periods)’ after ‘7 
consecutive 14-day periods’. 
‘‘(ii) EMPLOYEES
WITH
LESS
THAN
10
YEARS
OF 
SERVICE.—Subject to clause (iii), in the case of an 
employee who has less than 10 years of service (as 
so defined), with respect to extended unemployment 
benefits, this paragraph shall apply to such an 
employee in the same manner as this paragraph would 
apply to an employee described in clause (i) if such 
clause had not been enacted. 
‘‘(iii) APPLICATION.—The provisions of clauses (i) 
and (ii) shall apply to an employee who received normal 
benefits for days of unemployment under this Act 
during the period beginning July 1, 2008, and ending 
on June 30, 2009, except that no extended benefit 
period 
under 
this 
paragraph 
shall 
begin 
after 
December 31, 2009. Notwithstanding the preceding 
sentence, no benefits shall be payable under this 
subparagraph and clauses (i) and (ii) shall no longer 
be applicable upon the exhaustion of the funds appro-
priated under clause (iv) for payment of benefits under 
this subparagraph. 
‘‘(iv) APPROPRIATION.—Out of any funds in the 
Treasury not otherwise appropriated, there are appro-
priated $20,000,000 to cover the cost of additional 
extended unemployment benefits provided under this 
subparagraph, to remain available until expended.’’. 
(b) FUNDING FOR ADMINISTRATION.—Out of any funds in the 
Treasury not otherwise appropriated, there are appropriated to 
the Railroad Retirement Board $80,000 to cover the administrative 
expenses associated with the payment of additional extended 
unemployment benefits under section 2(c)(2)(D) of the Railroad 
Time period. 
Deadline. 
Applicability. 
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123 STAT. 446 
PUBLIC LAW 111–5—FEB. 17, 2009 
Unemployment Insurance Act, as added by subsection (a), to remain 
available until expended. 
Subtitle B—Assistance for Vulnerable 
Individuals 
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 
(a) TEMPORARY FUND.— 
(1) IN GENERAL.—Section 403 of the Social Security Act 
(42 U.S.C. 603) is amended by adding at the end the following: 
‘‘(c) EMERGENCY FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in the Treasury 
of the United States a fund which shall be known as the 
‘Emergency Contingency Fund for State Temporary Assistance 
for Needy Families Programs’ (in this subsection referred to 
as the ‘Emergency Fund’). 
‘‘(2) DEPOSITS INTO FUND.— 
‘‘(A) IN GENERAL.—Out of any money in the Treasury 
of the United States not otherwise appropriated, there 
are appropriated for fiscal year 2009, $5,000,000,000 for 
payment to the Emergency Fund. 
‘‘(B) AVAILABILITY AND USE OF FUNDS.—The amounts 
appropriated to the Emergency Fund under subparagraph 
(A) shall remain available through fiscal year 2010 and 
shall be used to make grants to States in each of fiscal 
years 2009 and 2010 in accordance with the requirements 
of paragraph (3). 
‘‘(C) LIMITATION.—In no case may the Secretary make 
a grant from the Emergency Fund for a fiscal year after 
fiscal year 2010. 
‘‘(3) GRANTS.— 
‘‘(A) GRANT RELATED TO CASELOAD INCREASES.— 
‘‘(i) IN
GENERAL.—For each calendar quarter in 
fiscal year 2009 or 2010, the Secretary shall make 
a grant from the Emergency Fund to each State that— 
‘‘(I) requests a grant under this subparagraph 
for the quarter; and 
‘‘(II) meets the requirement of clause (ii) for 
the quarter. 
‘‘(ii) CASELOAD INCREASE REQUIREMENT.—A State 
meets the requirement of this clause for a quarter 
if the average monthly assistance caseload of the State 
for the quarter exceeds the average monthly assistance 
caseload of the State for the corresponding quarter 
in the emergency fund base year of the State. 
‘‘(iii) AMOUNT
OF
GRANT.—Subject to paragraph 
(5), the amount of the grant to be made to a State 
under this subparagraph for a quarter shall be an 
amount equal to 80 percent of the amount (if any) 
by which the total expenditures of the State for basic 
assistance (as defined by the Secretary) in the quarter, 
whether under the State program funded under this 
part or as qualified State expenditures, exceeds the 
total expenditures of the State for such assistance for 
the corresponding quarter in the emergency fund base 
year of the State. 
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123 STAT. 447 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) GRANT RELATED TO INCREASED EXPENDITURES FOR 
NON-RECURRENT SHORT TERM BENEFITS.— 
‘‘(i) IN
GENERAL.—For each calendar quarter in 
fiscal year 2009 or 2010, the Secretary shall make 
a grant from the Emergency Fund to each State that— 
‘‘(I) requests a grant under this subparagraph 
for the quarter; and 
‘‘(II) meets the requirement of clause (ii) for 
the quarter. 
‘‘(ii) NON-RECURRENT
SHORT
TERM
EXPENDITURE 
REQUIREMENT.—A State meets the requirement of this 
clause for a quarter if the total expenditures of the 
State for non-recurrent short term benefits in the 
quarter, whether under the State program funded 
under this part or as qualified State expenditures, 
exceeds the total expenditures of the State for non- 
recurrent short term benefits in the corresponding 
quarter in the emergency fund base year of the State. 
‘‘(iii) AMOUNT
OF
GRANT.—Subject to paragraph 
(5), the amount of the grant to be made to a State 
under this subparagraph for a quarter shall be an 
amount equal to 80 percent of the excess described 
in clause (ii). 
‘‘(C) GRANT RELATED TO INCREASED EXPENDITURES FOR 
SUBSIDIZED EMPLOYMENT.— 
‘‘(i) IN
GENERAL.—For each calendar quarter in 
fiscal year 2009 or 2010, the Secretary shall make 
a grant from the Emergency Fund to each State that— 
‘‘(I) requests a grant under this subparagraph 
for the quarter; and 
‘‘(II) meets the requirement of clause (ii) for 
the quarter. 
‘‘(ii) 
SUBSIDIZED
EMPLOYMENT
EXPENDITURE 
REQUIREMENT.—A State meets the requirement of this 
clause for a quarter if the total expenditures of the 
State for subsidized employment in the quarter, 
whether under the State program funded under this 
part or as qualified State expenditures, exceeds the 
total such expenditures of the State in the cor-
responding quarter in the emergency fund base year 
of the State. 
‘‘(iii) AMOUNT
OF
GRANT.—Subject to paragraph 
(5), the amount of the grant to be made to a State 
under this subparagraph for a quarter shall be an 
amount equal to 80 percent of the excess described 
in clause (ii). 
‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUSTMENTS TO DATA 
AND COLLECT NEEDED DATA.—In determining the size of the 
caseload of a State and the expenditures of a State for basic 
assistance, non-recurrent short-term benefits, and subsidized 
employment, during any period for which the State requests 
funds under this subsection, and during the emergency fund 
base year of the State, the Secretary may make appropriate 
adjustments to the data, on a State-by-State basis, to ensure 
that the data are comparable with respect to the groups of 
families served and the types of aid provided. The Secretary 
may develop a mechanism for collecting expenditure data, 
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123 STAT. 448 
PUBLIC LAW 111–5—FEB. 17, 2009 
including procedures which allow States to make reasonable 
estimates, and may set deadlines for making revisions to the 
data. 
‘‘(5) LIMITATION.—The total amount payable to a single 
State under subsection (b) and this subsection for fiscal years 
2009 and 2010 combined shall not exceed 50 percent of the 
annual State family assistance grant. 
‘‘(6) LIMITATIONS
ON
USE
OF
FUNDS.—A State to which 
an amount is paid under this subsection may use the amount 
only as authorized by section 404. 
‘‘(7) TIMING
OF
IMPLEMENTATION.—The Secretary shall 
implement this subsection as quickly as reasonably possible, 
pursuant to appropriate guidance to States. 
‘‘(8) APPLICATION TO INDIAN TRIBES.—This subsection shall 
apply to an Indian tribe with an approved tribal family assist-
ance plan under section 412 in the same manner as this sub-
section applies to a State. 
‘‘(9) DEFINITIONS.—In this subsection: 
‘‘(A) 
AVERAGE
MONTHLY
ASSISTANCE
CASELOAD 
DEFINED.—The term ‘average monthly assistance caseload’ 
means, with respect to a State and a quarter, the number 
of families receiving assistance during the quarter under 
the State program funded under this part or as qualified 
State expenditures, subject to adjustment under paragraph 
(4). 
‘‘(B) EMERGENCY FUND BASE YEAR.— 
‘‘(i) IN GENERAL.—The term ‘emergency fund base 
year’ means, with respect to a State and a category 
described in clause (ii), whichever of fiscal year 2007 
or 2008 is the fiscal year in which the amount described 
by the category with respect to the State is the lesser. 
‘‘(ii) 
CATEGORIES
DESCRIBED.—The 
categories 
described in this clause are the following: 
‘‘(I) The average monthly assistance caseload 
of the State. 
‘‘(II) The total expenditures of the State for 
non-recurrent short term benefits, whether under 
the State program funded under this part or as 
qualified State expenditures. 
‘‘(III) The total expenditures of the State for 
subsidized employment, whether under the State 
program funded under this part or as qualified 
State expenditures. 
‘‘(C) QUALIFIED STATE EXPENDITURES.—The term ‘quali-
fied State expenditures’ has the meaning given the term 
in section 409(a)(7).’’. 
(2) REPEAL.—Effective October 1, 2010, subsection (c) of 
section 403 of the Social Security Act (42 U.S.C. 603) (as 
added by paragraph (1)) is repealed, except that paragraph 
(9) of such subsection shall remain in effect until October 
1, 2011, but only with respect to section 407(b)(3)(A)(i) of such 
Act. 
(b) TEMPORARY
MODIFICATION
OF
CASELOAD
REDUCTION 
CREDIT.—Section 
407(b)(3)(A)(i) 
of 
such 
Act 
(42 
U.S.C. 
607(b)(3)(A)(i)) is amended by inserting ‘‘(or if the immediately 
preceding fiscal year is fiscal year 2008, 2009, or 2010, then, at 
State option, during the emergency fund base year of the State 
Effective dates. 
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123 STAT. 449 
PUBLIC LAW 111–5—FEB. 17, 2009 
with respect to the average monthly assistance caseload of the 
State (within the meaning of section 403(c)(9)), except that, if a 
State elects such option for fiscal year 2008, the emergency fund 
base year of the State with respect to such caseload shall be 
fiscal year 2007))’’ before ‘‘under the State’’. 
(c) DISREGARD FROM LIMITATION ON TOTAL PAYMENTS TO TERRI-
TORIES.—Section 1108(a)(2) of the Social Security Act (42 U.S.C. 
1308(a)(2)) is amended by inserting ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. 
(d) SUNSET OF OTHER TEMPORARY PROVISIONS.— 
(1) DISREGARD FROM LIMITATION ON TOTAL PAYMENTS TO 
TERRITORIES.—Effective October 1, 2010, section 1108(a)(2) of 
the Social Security Act (42 U.S.C. 1308(a)(2)) is amended by 
striking ‘‘403(c)(3),’’ (as added by subsection (c)). 
(2) CASELOAD
REDUCTION
CREDIT.—Effective October 1, 
2011, 
section 
407(b)(3)(A)(i) 
of 
such 
Act 
(42 
U.S.C. 
607(b)(3)(A)(i)) is amended by striking ‘‘(or if the immediately 
preceding fiscal year is fiscal year 2008, 2009, or 2010, then, 
at State option, during the emergency fund base year of the 
State with respect to the average monthly assistance caseload 
of the State (within the meaning of section 403(c)(9)), except 
that, if a State elects such option for fiscal year 2008, the 
emergency fund base year of the State with respect to such 
caseload shall be fiscal year 2007))’’ (as added by subsection 
(b)). 
SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS. 
(a) EXTENSION THROUGH FISCAL YEAR 2010.—Section 7101(a) 
of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 
Stat. 135), as amended by section 301(a) of the Medicare Improve-
ments for Patients and Providers Act of 2008 (Public Law 110– 
275), is amended by striking ‘‘fiscal year 2009’’ and inserting ‘‘fiscal 
year 2010’’. 
(b) CONFORMING AMENDMENT.—Section 403(a)(3)(H)(ii) of the 
Social Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read 
as follows: 
‘‘(ii) subparagraph (G) shall be applied as if ‘fiscal 
year 2010’ were substituted for ‘fiscal year 2001’; and’’. 
SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF 
FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE 
TANF BENEFITS AND SERVICES. 
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) 
is amended to read as follows: 
‘‘(e) AUTHORITY TO CARRY OVER CERTAIN AMOUNTS FOR BENE-
FITS OR SERVICES OR FOR FUTURE CONTINGENCIES.—A State or 
tribe may use a grant made to the State or tribe under this 
part for any fiscal year to provide, without fiscal year limitation, 
any benefit or service that may be provided under the State or 
tribal program funded under this part.’’. 
SEC. 2104. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW. 
During the period that begins on October 1, 2008, and ends 
on September 30, 2010, section 455(a)(1) of the Social Security 
Act (42 U.S.C. 655(a)(1)) shall be applied and administered as 
if the phrase ‘‘from amounts paid to the State under section 458 
or’’ does not appear in such section. 
Time period. 
Applicability. 
42 USC 655 note. 
Effective dates. 
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123 STAT. 450 
PUBLIC LAW 111–5—FEB. 17, 2009 
Subtitle C—Economic Recovery Payments 
to Certain Individuals 
SEC. 2201. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL 
SECURITY, SUPPLEMENTAL SECURITY INCOME, RAIL-
ROAD RETIREMENT BENEFITS, AND VETERANS DIS-
ABILITY COMPENSATION OR PENSION BENEFITS. 
(a) AUTHORITY TO MAKE PAYMENTS.— 
(1) ELIGIBILITY.— 
(A) IN GENERAL.—Subject to paragraph (5)(B), the Sec-
retary of the Treasury shall disburse a $250 payment to 
each individual who, for any month during the 3-month 
period ending with the month which ends prior to the 
month that includes the date of the enactment of this 
Act, is entitled to a benefit payment described in clause 
(i), (ii), or (iii) of subparagraph (B) or is eligible for a 
SSI cash benefit described in subparagraph (C). 
(B) BENEFIT
PAYMENT
DESCRIBED.—For purposes of 
subparagraph (A): 
(i) TITLE II BENEFIT.—A benefit payment described 
in this clause is a monthly insurance benefit payable 
(without regard to sections 202(j)(1) and 223(b) of the 
Social Security Act (42 U.S.C. 402(j)(1), 423(b)) under— 
(I) section 202(a) of such Act (42 U.S.C. 
402(a)); 
(II) section 202(b) of such Act (42 U.S.C. 
402(b)); 
(III) section 202(c) of such Act (42 U.S.C. 
402(c)); 
(IV) section 202(d)(1)(B)(ii) of such Act (42 
U.S.C. 402(d)(1)(B)(ii)); 
(V) section 202(e) of such Act (42 U.S.C. 
402(e)); 
(VI) section 202(f) of such Act (42 U.S.C. 
402(f)); 
(VII) section 202(g) of such Act (42 U.S.C. 
402(g)); 
(VIII) section 202(h) of such Act (42 U.S.C. 
402(h)); 
(IX) section 223(a) of such Act (42 U.S.C. 
423(a)); 
(X) section 227 of such Act (42 U.S.C. 427); 
or 
(XI) section 228 of such Act (42 U.S.C. 428). 
(ii) RAILROAD
RETIREMENT
BENEFIT.—A benefit 
payment described in this clause is a monthly annuity 
or pension payment payable (without regard to section 
5(a)(ii) of the Railroad Retirement Act of 1974 (45 
U.S.C. 231d(a)(ii))) under— 
(I) section 2(a)(1) of such Act (45 U.S.C. 
231a(a)(1)); 
(II) section 2(c) of such Act (45 U.S.C. 231a(c)); 
(III) section 2(d)(1)(i) of such Act (45 U.S.C. 
231a(d)(1)(i)); 
(IV) section 2(d)(1)(ii) of such Act (45 U.S.C. 
231a(d)(1)(ii)); 
26 USC 6428 
note. 
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123 STAT. 451 
PUBLIC LAW 111–5—FEB. 17, 2009 
(V) section 2(d)(1)(iii)(C) of such Act to an 
adult disabled child (45 U.S.C. 231a(d)(1)(iii)(C)); 
(VI) section 2(d)(1)(iv) of such Act (45 U.S.C. 
231a(d)(1)(iv)); 
(VII) section 2(d)(1)(v) of such Act (45 U.S.C. 
231a(d)(1)(v)); or 
(VIII) section 7(b)(2) of such Act (45 U.S.C. 
231f(b)(2)) with respect to any of the benefit pay-
ments described in clause (i) of this subparagraph. 
(iii) 
VETERANS
BENEFIT.—A 
benefit 
payment 
described in this clause is a compensation or pension 
payment payable under— 
(I) section 1110, 1117, 1121, 1131, 1141, or 
1151 of title 38, United States Code; 
(II) section 1310, 1312, 1313, 1315, 1316, or 
1318 of title 38, United States Code; 
(III) section 1513, 1521, 1533, 1536, 1537, 
1541, 1542, or 1562 of title 38, United States Code; 
or 
(IV) section 1805, 1815, or 1821 of title 38, 
United States Code, 
to a veteran, surviving spouse, child, or parent as 
described in paragraph (2), (3), (4)(A)(ii), or (5) of sec-
tion 101, title 38, United States Code, who received 
that benefit during any month within the 3 month 
period ending with the month which ends prior to 
the month that includes the date of the enactment 
of this Act. 
(C) SSI CASH BENEFIT DESCRIBED.—A SSI cash benefit 
described in this subparagraph is a cash benefit payable 
under section 1611 (other than under subsection (e)(1)(B) 
of such section) or 1619(a) of the Social Security Act (42 
U.S.C. 1382, 1382h). 
(2) REQUIREMENT.—A payment shall be made under para-
graph (1) only to individuals who reside in 1 of the 50 States, 
the District of Columbia, Puerto Rico, Guam, the United States 
Virgin Islands, American Samoa, or the Northern Mariana 
Islands. For purposes of the preceding sentence, the determina-
tion of the individual’s residence shall be based on the current 
address of record under a program specified in paragraph (1). 
(3) NO DOUBLE PAYMENTS.—An individual shall be paid 
only 1 payment under this section, regardless of whether the 
individual is entitled to, or eligible for, more than 1 benefit 
or cash payment described in paragraph (1). 
(4) LIMITATION.—A payment under this section shall not 
be made— 
(A) in the case of an individual entitled to a benefit 
specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII) 
if, for the most recent month of such individual’s entitle-
ment in the 3-month period described in paragraph (1), 
such individual’s benefit under such paragraph was not 
payable by reason of subsection (x) or (y) of section 202 
the Social Security Act (42 U.S.C. 402) or section 1129A 
of such Act (42 U.S.C. 1320a-8a); 
(B) in the case of an individual entitled to a benefit 
specified in paragraph (1)(B)(iii) if, for the most recent 
month of such individual’s entitlement in the 3 month 
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123 STAT. 452 
PUBLIC LAW 111–5—FEB. 17, 2009 
period described in paragraph (1), such individual’s benefit 
under such paragraph was not payable, or was reduced, 
by reason of section 1505, 5313, or 5313B of title 38, 
United States Code; 
(C) in the case of an individual entitled to a benefit 
specified in paragraph (1)(C) if, for such most recent month, 
such individual’s benefit under such paragraph was not 
payable by reason of subsection (e)(1)(A) or (e)(4) of section 
1611 (42 U.S.C. 1382) or section 1129A of such Act (42 
U.S.C. 1320a-8a); or 
(D) in the case of any individual whose date of death 
occurs before the date on which the individual is certified 
under subsection (b) to receive a payment under this sec-
tion. 
(5) TIMING AND MANNER OF PAYMENTS.— 
(A) IN GENERAL.—The Secretary of the Treasury shall 
commence disbursing payments under this section at the 
earliest practicable date but in no event later than 120 
days after the date of enactment of this Act. The Secretary 
of the Treasury may disburse any payment electronically 
to an individual in such manner as if such payment was 
a benefit payment or cash benefit to such individual under 
the applicable program described in subparagraph (B) or 
(C) of paragraph (1). 
(B) DEADLINE.—No payments shall be disbursed under 
this section after December 31, 2010, regardless of any 
determinations of entitlement to, or eligibility for, such 
payments made after such date. 
(b) IDENTIFICATION
OF
RECIPIENTS.—The Commissioner of 
Social Security, the Railroad Retirement Board, and the Secretary 
of Veterans Affairs shall certify the individuals entitled to receive 
payments under this section and provide the Secretary of the 
Treasury with the information needed to disburse such payments. 
A certification of an individual shall be unaffected by any subse-
quent determination or redetermination of the individual’s entitle-
ment to, or eligibility for, a benefit specified in subparagraph (B) 
or (C) of subsection (a)(1). 
(c) TREATMENT OF PAYMENTS.— 
(1) PAYMENT TO BE DISREGARDED FOR PURPOSES OF ALL 
FEDERAL
AND
FEDERALLY
ASSISTED
PROGRAMS.—A payment 
under subsection (a) shall not be regarded as income and shall 
not be regarded as a resource for the month of receipt and 
the following 9 months, for purposes of determining the eligi-
bility of the recipient (or the recipient’s spouse or family) for 
benefits or assistance, or the amount or extent of benefits 
or assistance, under any Federal program or under any State 
or local program financed in whole or in part with Federal 
funds. 
(2) PAYMENT NOT CONSIDERED INCOME FOR PURPOSES OF 
TAXATION.—A payment under subsection (a) shall not be consid-
ered as gross income for purposes of the Internal Revenue 
Code of 1986. 
(3) PAYMENTS PROTECTED FROM ASSIGNMENT.—The provi-
sions of sections 207 and 1631(d)(1) of the Social Security 
Act (42 U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 
of title 38, United States Code, shall apply to any payment 
Applicability. 
Time period. 
Certification. 
Deadline. 
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123 STAT. 453 
PUBLIC LAW 111–5—FEB. 17, 2009 
made under subsection (a) as if such payment was a benefit 
payment or cash benefit to such individual under the applicable 
program described in subparagraph (B) or (C) of subsection 
(a)(1). 
(4) PAYMENTS SUBJECT TO OFFSET.—Notwithstanding para-
graph (3), for purposes of section 3716 of title 31, United 
States Code, any payment made under this section shall not 
be considered a benefit payment or cash benefit made under 
the applicable program described in subparagraph (B) or (C) 
of subsection (a)(1) and all amounts paid shall be subject to 
offset to collect delinquent debts. 
(d) PAYMENT TO REPRESENTATIVE PAYEES AND FIDUCIARIES.— 
(1) IN GENERAL.—In any case in which an individual who 
is entitled to a payment under subsection (a) and whose benefit 
payment or cash benefit described in paragraph (1) of that 
subsection is paid to a representative payee or fiduciary, the 
payment under subsection (a) shall be made to the individual’s 
representative payee or fiduciary and the entire payment shall 
be used only for the benefit of the individual who is entitled 
to the payment. 
(2) APPLICABILITY.— 
(A) PAYMENT ON THE BASIS OF A TITLE II OR SSI BEN-
EFIT.—Section 1129(a)(3) of the Social Security Act (42 
U.S.C. 1320a–8(a)(3)) shall apply to any payment made 
on the basis of an entitlement to a benefit specified in 
paragraph (1)(B)(i) or (1)(C) of subsection (a) in the same 
manner as such section applies to a payment under title 
II or XVI of such Act. 
(B) PAYMENT ON THE BASIS OF A RAILROAD RETIREMENT 
BENEFIT.—Section 13 of the Railroad Retirement Act (45 
U.S.C. 231l) shall apply to any payment made on the 
basis of an entitlement to a benefit specified in paragraph 
(1)(B)(ii) of subsection (a) in the same manner as such 
section applies to a payment under such Act. 
(C) PAYMENT ON THE BASIS OF A VETERANS BENEFIT.— 
Sections 5502, 6106, and 6108 of title 38, United States 
Code, shall apply to any payment made on the basis of 
an entitlement to a benefit specified in paragraph (1)(B)(iii) 
of subsection (a) in the same manner as those sections 
apply to a payment under that title. 
(e) APPROPRIATION.—Out of any sums in the Treasury of the 
United States not otherwise appropriated, the following sums are 
appropriated for the period of fiscal years 2009 through 2011, 
to remain available until expended, to carry out this section: 
(1) For the Secretary of the Treasury, $131,000,000 for 
administrative costs incurred in carrying out this section, sec-
tion 2202, section 36A of the Internal Revenue Code of 1986 
(as added by this Act), and other provisions of this Act or 
the amendments made by this Act relating to the Internal 
Revenue Code of 1986. 
(2) For the Commissioner of Social Security— 
(A) such sums as may be necessary for payments to 
individuals certified by the Commissioner of Social Security 
as entitled to receive a payment under this section; and 
(B) $90,000,000 for the Social Security Administration’s 
Limitation on Administrative Expenses for costs incurred 
in carrying out this section. 
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123 STAT. 454 
PUBLIC LAW 111–5—FEB. 17, 2009 
(3) For the Railroad Retirement Board— 
(A) such sums as may be necessary for payments to 
individuals certified by the Railroad Retirement Board as 
entitled to receive a payment under this section; and 
(B) $1,400,000 to the Railroad Retirement Board’s 
Limitation on Administration for administrative costs 
incurred in carrying out this section. 
(4)(A) For the Secretary of Veterans Affairs— 
(i) such sums as may be necessary for the Com-
pensation and Pensions account, for payments to 
individuals certified by the Secretary of Veterans 
Affairs as entitled to receive a payment under this 
section; and 
(ii) $100,000 for the Information Systems Tech-
nology account and $7,100,000 for the General Oper-
ating Expenses account for administrative costs 
incurred in carrying out this section. 
(B) The Department of Veterans Affairs Compensation and 
Pensions account shall hereinafter be available for payments 
authorized under subsection (a)(1)(A) to individuals entitled 
to a benefit payment described in subsection (a)(1)(B)(iii). 
SEC. 2202. SPECIAL CREDIT FOR CERTAIN GOVERNMENT RETIREES. 
(a) IN GENERAL.—In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by subtitle 
A of the Internal Revenue Code of 1986 for the first taxable year 
beginning in 2009 an amount equal $250 ($500 in the case of 
a joint return where both spouses are eligible individuals). 
(b) ELIGIBLE INDIVIDUAL.—For purposes of this section— 
(1) IN GENERAL.—The term ‘‘eligible individual’’ means any 
individual— 
(A) who receives during the first taxable year beginning 
in 2009 any amount as a pension or annuity for service 
performed in the employ of the United States or any State, 
or any instrumentality thereof, which is not considered 
employment for purposes of chapter 21 of the Internal 
Revenue Code of 1986, and 
(B) who does not receive a payment under section 
2201 during such taxable year. 
(2) IDENTIFICATION
NUMBER
REQUIREMENT.—Such term 
shall not include any individual who does not include on the 
return of tax for the taxable year— 
(A) such individual’s social security account number, 
and 
(B) in the case of a joint return, the social security 
account number of one of the taxpayers on such return. 
For purposes of the preceding sentence, the social security 
account number shall not include a TIN (as defined in section 
7701(a)(41) of the Internal Revenue Code of 1986) issued by 
the Internal Revenue Service. Any omission of a correct social 
security account number required under this subparagraph 
shall be treated as a mathematical or clerical error for purposes 
of applying section 6213(g)(2) of such Code to such omission. 
(c) TREATMENT OF CREDIT.— 
(1) REFUNDABLE CREDIT.— 
(A) IN GENERAL.—The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of 
26 USC 6428 
note. 
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123 STAT. 455 
PUBLIC LAW 111–5—FEB. 17, 2009 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986. 
(B) 
APPROPRIATIONS.—For 
purposes 
of 
section 
1324(b)(2) of title 31, United States Code, the credit allowed 
by subsection (a) shall be treated in the same manner 
a refund from the credit allowed under section 36A of 
the Internal Revenue Code of 1986 (as added by this Act). 
(2) 
DEFICIENCY
RULES.—For 
purposes 
of 
section 
6211(b)(4)(A) of the Internal Revenue Code of 1986, the credit 
allowable by subsection (a) shall be treated in the same manner 
as the credit allowable under section 36A of the Internal Rev-
enue Code of 1986 (as added by this Act). 
(d) REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
PROGRAMS
AND FEDERALLY ASSISTED PROGRAMS.—Any credit or 
refund allowed or made to any individual by reason of this section 
shall not be taken into account as income and shall not be taken 
into account as resources for the month of receipt and the following 
2 months, for purposes of determining the eligibility of such indi-
vidual or any other individual for benefits or assistance, or the 
amount or extent of benefits or assistance, under any Federal 
program or under any State or local program financed in whole 
or in part with Federal funds. 
TITLE III—PREMIUM ASSISTANCE FOR 
COBRA BENEFITS 
SEC. 3000. TABLE OF CONTENTS. 
The table of contents of this title is as follows: 
TITLE III—PREMIUM ASSISTANCE FOR COBRA BENEFITS 
Sec. 3000. Table of contents. 
Sec. 3001. Premium assistance for COBRA benefits. 
SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS. 
(a) PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE 
FOR INDIVIDUALS AND THEIR FAMILIES.— 
(1) PROVISION OF PREMIUM ASSISTANCE.— 
(A) REDUCTION OF PREMIUMS PAYABLE.—In the case 
of any premium for a period of coverage beginning on 
or after the date of the enactment of this Act for COBRA 
continuation coverage with respect to any assistance 
eligible individual, such individual shall be treated for pur-
poses of any COBRA continuation provision as having paid 
the amount of such premium if such individual pays (or 
a person other than such individual’s employer pays on 
behalf of such individual) 35 percent of the amount of 
such premium (as determined without regard to this sub-
section). 
(B) PLAN ENROLLMENT OPTION.— 
(i) IN
GENERAL.—Notwithstanding the COBRA 
continuation provisions, an assistance eligible indi-
vidual may, not later than 90 days after the date 
of notice of the plan enrollment option described in 
this subparagraph, elect to enroll in coverage under 
a plan offered by the employer involved, or the 
employee organization involved (including, for this pur-
pose, a joint board of trustees of a multiemployer trust 
Deadline. 
26 USC 6432 
note. 
Time period. 
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123 STAT. 456 
PUBLIC LAW 111–5—FEB. 17, 2009 
affiliated with one or more multiemployer plans), that 
is different than coverage under the plan in which 
such individual was enrolled at the time the qualifying 
event occurred, and such coverage shall be treated 
as COBRA continuation coverage for purposes of the 
applicable COBRA continuation coverage provision. 
(ii) REQUIREMENTS.—An assistance eligible indi-
vidual may elect to enroll in different coverage as 
described in clause (i) only if— 
(I) the employer involved has made a deter-
mination that such employer will permit assistance 
eligible individuals to enroll in different coverage 
as provided for this subparagraph; 
(II) the premium for such different coverage 
does not exceed the premium for coverage in which 
the individual was enrolled at the time the quali-
fying event occurred; 
(III) the different coverage in which the indi-
vidual elects to enroll is coverage that is also 
offered to the active employees of the employer 
at the time at which such election is made; and 
(IV) the different coverage is not— 
(aa) coverage that provides only dental, 
vision, counseling, or referral services (or a 
combination of such services); 
(bb) a flexible spending arrangement (as 
defined in section 106(c)(2) of the Internal Rev-
enue Code of 1986); or 
(cc) coverage that provides coverage for 
services or treatments furnished in an on-site 
medical facility maintained by the employer 
and that consists primarily of first-aid serv-
ices, prevention and wellness care, or similar 
care (or a combination of such care). 
(C) PREMIUM
REIMBURSEMENT.—For provisions pro-
viding the balance of such premium, see section 6432 of 
the Internal Revenue Code of 1986, as added by paragraph 
(12). 
(2) LIMITATION OF PERIOD OF PREMIUM ASSISTANCE.— 
(A) IN GENERAL.—Paragraph (1)(A) shall not apply with 
respect to any assistance eligible individual for months 
of coverage beginning on or after the earlier of— 
(i) the first date that such individual is eligible 
for coverage under any other group health plan (other 
than coverage consisting of only dental, vision, coun-
seling, or referral services (or a combination thereof), 
coverage under a flexible spending arrangement (as 
defined in section 106(c)(2) of the Internal Revenue 
Code of 1986), or coverage of treatment that is fur-
nished in an on-site medical facility maintained by 
the employer and that consists primarily of first-aid 
services, prevention and wellness care, or similar care 
(or a combination thereof)) or is eligible for benefits 
under title XVIII of the Social Security Act, or 
(ii) the earliest of— 
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123 STAT. 457 
PUBLIC LAW 111–5—FEB. 17, 2009 
(I) the date which is 9 months after the first 
day of the first month that paragraph (1)(A) 
applies with respect to such individual, 
(II) the date following the expiration of the 
maximum period of continuation coverage required 
under the applicable COBRA continuation cov-
erage provision, or 
(III) the date following the expiration of the 
period of continuation coverage allowed under 
paragraph (4)(B)(ii). 
(B) TIMING
OF
ELIGIBILITY
FOR
ADDITIONAL
COV-
ERAGE.—For purposes of subparagraph (A)(i), an individual 
shall not be treated as eligible for coverage under a group 
health plan before the first date on which such individual 
could be covered under such plan. 
(C) 
NOTIFICATION
REQUIREMENT.—An 
assistance 
eligible individual shall notify in writing the group health 
plan with respect to which paragraph (1)(A) applies if such 
paragraph ceases to apply by reason of subparagraph (A)(i). 
Such notice shall be provided to the group health plan 
in such time and manner as may be specified by the Sec-
retary of Labor. 
(3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘‘assistance eligible individual’’ means any 
qualified beneficiary if— 
(A) at any time during the period that begins with 
September 1, 2008, and ends with December 31, 2009, 
such qualified beneficiary is eligible for COBRA continu-
ation coverage, 
(B) such qualified beneficiary elects such coverage, and 
(C) the qualifying event with respect to the COBRA 
continuation coverage consists of the involuntary termi-
nation of the covered employee’s employment and occurred 
during such period. 
(4) EXTENSION OF ELECTION PERIOD AND EFFECT ON COV-
ERAGE.— 
(A) IN
GENERAL.—For purposes of applying section 
605(a) of the Employee Retirement Income Security Act 
of 1974, section 4980B(f)(5)(A) of the Internal Revenue 
Code of 1986, section 2205(a) of the Public Health Service 
Act, and section 8905a(c)(2) of title 5, United States Code, 
in the case of an individual who does not have an election 
of COBRA continuation coverage in effect on the date of 
the enactment of this Act but who would be an assistance 
eligible individual if such election were so in effect, such 
individual may elect the COBRA continuation coverage 
under the COBRA continuation coverage provisions con-
taining such sections during the period beginning on the 
date of the enactment of this Act and ending 60 days 
after the date on which the notification required under 
paragraph (7)(C) is provided to such individual. 
(B) COMMENCEMENT OF COVERAGE; NO REACH-BACK.— 
Any COBRA continuation coverage elected by a qualified 
beneficiary during an extended election period under 
subparagraph (A)— 
Definition. 
Time period. 
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123 STAT. 458 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) shall commence with the first period of coverage 
beginning on or after the date of the enactment of 
this Act, and 
(ii) shall not extend beyond the period of COBRA 
continuation coverage that would have been required 
under the applicable COBRA continuation coverage 
provision if the coverage had been elected as required 
under such provision. 
(C) PREEXISTING CONDITIONS.—With respect to a quali-
fied beneficiary who elects COBRA continuation coverage 
pursuant to subparagraph (A), the period— 
(i) beginning on the date of the qualifying event, 
and 
(ii) ending with the beginning of the period 
described in subparagraph (B)(i), 
shall be disregarded for purposes of determining the 63- 
day periods referred to in section 701(c)(2) of the Employee 
Retirement Income Security Act of 1974, section 9801(c)(2) 
of the Internal Revenue Code of 1986, and section 2701(c)(2) 
of the Public Health Service Act. 
(5) EXPEDITED
REVIEW
OF
DENIALS
OF
PREMIUM
ASSIST-
ANCE.—In any case in which an individual requests treatment 
as an assistance eligible individual and is denied such treat-
ment by the group health plan, the Secretary of Labor (or 
the Secretary of Health and Human Services in connection 
with COBRA continuation coverage which is provided other 
than pursuant to part 6 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974), in consultation with 
the Secretary of the Treasury, shall provide for expedited review 
of such denial. An individual shall be entitled to such review 
upon application to such Secretary in such form and manner 
as shall be provided by such Secretary. Such Secretary shall 
make a determination regarding such individual’s eligibility 
within 15 business days after receipt of such individual’s 
application for review under this paragraph. Either Secretary’s 
determination upon review of the denial shall be de novo and 
shall be the final determination of such Secretary. A reviewing 
court shall grant deference to such Secretary’s determination. 
The provisions of this paragraph, paragraphs (1) through (4), 
and paragraph (7) shall be treated as provisions of title I 
of the Employee Retirement Income Security Act of 1974 for 
purposes of part 5 of subtitle B of such title. 
(6) DISREGARD OF SUBSIDIES FOR PURPOSES OF FEDERAL 
AND STATE PROGRAMS.—Notwithstanding any other provision 
of law, any premium reduction with respect to an assistance 
eligible individual under this subsection shall not be considered 
income or resources in determining eligibility for, or the amount 
of assistance or benefits provided under, any other public ben-
efit provided under Federal law or the law of any State or 
political subdivision thereof. 
(7) NOTICES TO INDIVIDUALS.— 
(A) GENERAL NOTICE.— 
(i) IN GENERAL.—In the case of notices provided 
under section 606(a)(4) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1166(4)), section 
4980B(f)(6)(D) of the Internal Revenue Code of 1986, 
section 2206(4) of the Public Health Service Act (42 
Courts. 
Determination. 
Deadline. 
Application. 
VerDate Nov 24 2008 
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123 STAT. 459 
PUBLIC LAW 111–5—FEB. 17, 2009 
U.S.C. 300bb-6(4)), or section 8905a(f)(2)(A) of title 5, 
United States Code, with respect to individuals who, 
during the period described in paragraph (3)(A), 
become entitled to elect COBRA continuation coverage, 
the requirements of such sections shall not be treated 
as met unless such notices include an additional 
notification to the recipient of— 
(I) the availability of premium reduction with 
respect to such coverage under this subsection, 
and 
(II) the option to enroll in different coverage 
if the employer permits assistance eligible individ-
uals to elect enrollment in different coverage (as 
described in paragraph (1)(B)). 
(ii) ALTERNATIVE NOTICE.—In the case of COBRA 
continuation coverage to which the notice provision 
under such sections does not apply, the Secretary of 
Labor, in consultation with the Secretary of the 
Treasury and the Secretary of Health and Human 
Services, shall, in consultation with administrators of 
the group health plans (or other entities) that provide 
or administer the COBRA continuation coverage 
involved, provide rules requiring the provision of such 
notice. 
(iii) FORM.—The requirement of the additional 
notification under this subparagraph may be met by 
amendment of existing notice forms or by inclusion 
of a separate document with the notice otherwise 
required. 
(B) SPECIFIC REQUIREMENTS.—Each additional notifica-
tion under subparagraph (A) shall include— 
(i) the forms necessary for establishing eligibility 
for premium reduction under this subsection, 
(ii) the name, address, and telephone number nec-
essary to contact the plan administrator and any other 
person maintaining relevant information in connection 
with such premium reduction, 
(iii) a description of the extended election period 
provided for in paragraph (4)(A), 
(iv) a description of the obligation of the qualified 
beneficiary under paragraph (2)(C) to notify the plan 
providing continuation coverage of eligibility for subse-
quent coverage under another group health plan or 
eligibility for benefits under title XVIII of the Social 
Security Act and the penalty provided under section 
6720C of the Internal Revenue Code of 1986 for failure 
to so notify the plan, 
(v) a description, displayed in a prominent manner, 
of the qualified beneficiary’s right to a reduced pre-
mium and any conditions on entitlement to the reduced 
premium, and 
(vi) a description of the option of the qualified 
beneficiary to enroll in different coverage if the 
employer permits such beneficiary to elect to enroll 
in such different coverage under paragraph (1)(B). 
(C) NOTICE IN CONNECTION WITH EXTENDED ELECTION 
PERIODS.—In the case of any assistance eligible individual 
Deadline. 
Regulations. 
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123 STAT. 460 
PUBLIC LAW 111–5—FEB. 17, 2009 
(or any individual described in paragraph (4)(A)) who 
became entitled to elect COBRA continuation coverage 
before the date of the enactment of this Act, the adminis-
trator of the group health plan (or other entity) involved 
shall provide (within 60 days after the date of enactment 
of this Act) for the additional notification required to be 
provided under subparagraph (A) and failure to provide 
such notice shall be treated as a failure to meet the notice 
requirements under the applicable COBRA continuation 
provision. 
(D) MODEL
NOTICES.—Not later than 30 days after 
the date of enactment of this Act— 
(i) the Secretary of the Labor, in consultation with 
the Secretary of the Treasury and the Secretary of 
Health and Human Services, shall prescribe models 
for the additional notification required under this para-
graph (other than the additional notification described 
in clause (ii)), and 
(ii) in the case of any additional notification pro-
vided pursuant to subparagraph (A) under section 
8905a(f)(2)(A) of title 5, United States Code, the Office 
of Personnel Management shall prescribe a model for 
such additional notification. 
(8) REGULATIONS.—The Secretary of the Treasury may pre-
scribe such regulations or other guidance as may be necessary 
or appropriate to carry out the provisions of this subsection, 
including the prevention of fraud and abuse under this sub-
section, except that the Secretary of Labor and the Secretary 
of Health and Human Services may prescribe such regulations 
(including interim final regulations) or other guidance as may 
be necessary or appropriate to carry out the provisions of para-
graphs (5), (7), and (9). 
(9) OUTREACH.—The Secretary of Labor, in consultation 
with the Secretary of the Treasury and the Secretary of Health 
and Human Services, shall provide outreach consisting of public 
education and enrollment assistance relating to premium reduc-
tion provided under this subsection. Such outreach shall target 
employers, group health plan administrators, public assistance 
programs, States, insurers, and other entities as determined 
appropriate by such Secretaries. Such outreach shall include 
an initial focus on those individuals electing continuation cov-
erage who are referred to in paragraph (7)(C). Information 
on such premium reduction, including enrollment, shall also 
be made available on websites of the Departments of Labor, 
Treasury, and Health and Human Services. 
(10) DEFINITIONS.—For purposes of this section— 
(A) ADMINISTRATOR.—The term ‘‘administrator’’ has the 
meaning given such term in section 3(16)(A) of the 
Employee Retirement Income Security Act of 1974. 
(B) COBRA 
CONTINUATION
COVERAGE.—The term 
‘‘COBRA continuation coverage’’ means continuation cov-
erage provided pursuant to part 6 of subtitle B of title 
I of the Employee Retirement Income Security Act of 1974 
(other than under section 609), title XXII of the Public 
Health Service Act, section 4980B of the Internal Revenue 
Code of 1986 (other than subsection (f)(1) of such section 
insofar as it relates to pediatric vaccines), or section 8905a 
Web posting. 
Deadline. 
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123 STAT. 461 
PUBLIC LAW 111–5—FEB. 17, 2009 
of title 5, United States Code, or under a State program 
that provides comparable continuation coverage. Such term 
does not include coverage under a health flexible spending 
arrangement under a cafeteria plan within the meaning 
of section 125 of the Internal Revenue Code of 1986. 
(C) COBRA 
CONTINUATION
PROVISION.—The term 
‘‘COBRA continuation provision’’ means the provisions of 
law described in subparagraph (B). 
(D) COVERED EMPLOYEE.—The term ‘‘covered employee’’ 
has the meaning given such term in section 607(2) of 
the Employee Retirement Income Security Act of 1974. 
(E) QUALIFIED
BENEFICIARY.—The term ‘‘qualified 
beneficiary’’ has the meaning given such term in section 
607(3) of the Employee Retirement Income Security Act 
of 1974. 
(F) GROUP
HEALTH
PLAN.—The term ‘‘group health 
plan’’ has the meaning given such term in section 607(1) 
of the Employee Retirement Income Security Act of 1974. 
(G) STATE.—The term ‘‘State’’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, and the Commonwealth 
of the Northern Mariana Islands. 
(H) PERIOD OF COVERAGE.—Any reference in this sub-
section to a period of coverage shall be treated as a ref-
erence to a monthly or shorter period of coverage with 
respect to which premiums are charged with respect to 
such coverage. 
(11) REPORTS.— 
(A) INTERIM REPORT.—The Secretary of the Treasury 
shall submit an interim report to the Committee on Edu-
cation and Labor, the Committee on Ways and Means, 
and the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Health, Edu-
cation, Labor, and Pensions and the Committee on Finance 
of the Senate regarding the premium reduction provided 
under this subsection that includes— 
(i) the number of individuals provided such assist-
ance as of the date of the report; and 
(ii) the total amount of expenditures incurred (with 
administrative expenditures noted separately) in 
connection with such assistance as of the date of the 
report. 
(B) FINAL REPORT.—As soon as practicable after the 
last period of COBRA continuation coverage for which pre-
mium reduction is provided under this section, the Sec-
retary of the Treasury shall submit a final report to each 
Committee referred to in subparagraph (A) that includes— 
(i) the number of individuals provided premium 
reduction under this section; 
(ii) the average dollar amount (monthly and 
annually) of premium reductions provided to such 
individuals; and 
(iii) the total amount of expenditures incurred 
(with administrative expenditures noted separately) in 
connection with premium reduction under this section. 
(12) COBRA PREMIUM ASSISTANCE.— 
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123 STAT. 462 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986, as amended by this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 6432. COBRA PREMIUM ASSISTANCE. 
‘‘(a) IN GENERAL.—The person to whom premiums are payable 
under COBRA continuation coverage shall be reimbursed as pro-
vided in subsection (c) for the amount of premiums not paid by 
assistance eligible individuals by reason of section 3002(a) of the 
Health Insurance Assistance for the Unemployed Act of 2009. 
‘‘(b) PERSON ENTITLED TO REIMBURSEMENT.—For purposes of 
subsection (a), except as otherwise provided by the Secretary, the 
person to whom premiums are payable under COBRA continuation 
coverage shall be treated as being— 
‘‘(1) in the case of any group health plan which is a multi-
employer plan (as defined in section 3(37) of the Employee 
Retirement Income Security Act of 1974), the plan, 
‘‘(2) in the case of any group health plan not described 
in paragraph (1)— 
‘‘(A) which is subject to the COBRA continuation provi-
sions contained in— 
‘‘(i) the Internal Revenue Code of 1986, 
‘‘(ii) the Employee Retirement Income Security Act 
of 1974, 
‘‘(iii) the Public Health Service Act, or 
‘‘(iv) title 5, United States Code, or 
‘‘(B) under which some or all of the coverage is not 
provided by insurance, 
the employer maintaining the plan, and 
‘‘(3) in the case of any group health plan not described 
in paragraph (1) or (2), the insurer providing the coverage 
under the group health plan. 
‘‘(c) METHOD OF REIMBURSEMENT.—Except as otherwise pro-
vided by the Secretary— 
‘‘(1) TREATMENT AS PAYMENT OF PAYROLL TAXES.—Each per-
son entitled to reimbursement under subsection (a) (and filing 
a claim for such reimbursement at such time and in such 
manner as the Secretary may require) shall be treated for 
purposes of this title and section 1324(b)(2) of title 31, United 
States Code, as having paid to the Secretary, on the date 
that the assistance eligible individual’s premium payment is 
received, payroll taxes in an amount equal to the portion of 
such reimbursement which relates to such premium. To the 
extent that the amount treated as paid under the preceding 
sentence exceeds the amount of such person’s liability for such 
taxes, the Secretary shall credit or refund such excess in the 
same manner as if it were an overpayment of such taxes. 
‘‘(2) 
OVERSTATEMENTS.—Any 
overstatement 
of 
the 
reimbursement to which a person is entitled under this section 
(and any amount paid by the Secretary as a result of such 
overstatement) shall be treated as an underpayment of payroll 
taxes by such person and may be assessed and collected by 
the Secretary in the same manner as payroll taxes. 
‘‘(3) 
REIMBURSEMENT
CONTINGENT
ON
PAYMENT
OF 
REMAINING PREMIUM.—No reimbursement may be made under 
this section to a person with respect to any assistance eligible 
individual until after the reduced premium required under 
26 USC 6432. 
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123 STAT. 463 
PUBLIC LAW 111–5—FEB. 17, 2009 
section 3002(a)(1)(A) of such Act with respect to such individual 
has been received. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) PAYROLL
TAXES.—The term ‘payroll taxes’ means— 
‘‘(A) amounts required to be deducted and withheld 
for the payroll period under section 3402 (relating to wage 
withholding), 
‘‘(B) amounts required to be deducted for the payroll 
period under section 3102 (relating to FICA employee 
taxes), and 
‘‘(C) amounts of the taxes imposed for the payroll period 
under section 3111 (relating to FICA employer taxes). 
‘‘(2) PERSON.—The term ‘person’ includes any governmental 
entity. 
‘‘(e) REPORTING.—Each person entitled to reimbursement under 
subsection (a) for any period shall submit such reports (at such 
time and in such manner) as the Secretary may require, including— 
‘‘(1) an attestation of involuntary termination of employ-
ment for each covered employee on the basis of whose termi-
nation entitlement to reimbursement is claimed under sub-
section (a), 
‘‘(2) a report of the amount of payroll taxes offset under 
subsection (a) for the reporting period and the estimated offsets 
of such taxes for the subsequent reporting period in connection 
with reimbursements under subsection (a), and 
‘‘(3) a report containing the TINs of all covered employees, 
the amount of subsidy reimbursed with respect to each covered 
employee and qualified beneficiaries, and a designation with 
respect to each covered employee as to whether the subsidy 
reimbursement is for coverage of 1 individual or 2 or more 
individuals. 
‘‘(f) REGULATIONS.—The Secretary shall issue such regulations 
or other guidance as may be necessary or appropriate to carry 
out this section, including— 
‘‘(1) the requirement to report information or the establish-
ment of other methods for verifying the correct amounts of 
reimbursements under this section, and 
‘‘(2) the application of this section to group health plans 
that are multiemployer plans (as defined in section 3(37) of 
the Employee Retirement Income Security Act of 1974).’’. 
(B) SOCIAL SECURITY TRUST FUNDS HELD HARMLESS.— 
In determining any amount transferred or appropriated 
to any fund under the Social Security Act, section 6432 
of the Internal Revenue Code of 1986 shall not be taken 
into account. 
(C) CLERICAL AMENDMENT.—The table of sections for 
subchapter B of chapter 65 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new item: 
‘‘Sec. 6432. COBRA premium assistance.’’. 
(D) EFFECTIVE DATE.—The amendments made by this 
paragraph shall apply to premiums to which subsection 
(a)(1)(A) applies. 
(E) SPECIAL RULE.— 
(i) IN
GENERAL.—In the case of an assistance 
eligible individual who pays, with respect to the first 
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123 STAT. 464 
PUBLIC LAW 111–5—FEB. 17, 2009 
period of COBRA continuation coverage to which sub-
section (a)(1)(A) applies or the immediately subsequent 
period, the full premium amount for such coverage, 
the person to whom such payment is payable shall— 
(I) make a reimbursement payment to such 
individual for the amount of such premium paid 
in excess of the amount required to be paid under 
subsection (a)(1)(A); or 
(II) provide credit to the individual for such 
amount in a manner that reduces one or more 
subsequent premium payments that the individual 
is required to pay under such subsection for the 
coverage involved. 
(ii) REIMBURSING EMPLOYER.—A person to which 
clause (i) applies shall be reimbursed as provided for 
in section 6432 of the Internal Revenue Code of 1986 
for any payment made, or credit provided, to the 
employee under such clause. 
(iii) PAYMENT OR CREDITS.—Unless it is reasonable 
to believe that the credit for the excess payment in 
clause (i)(II) will be used by the assistance eligible 
individual within 180 days of the date on which the 
person receives from the individual the payment of 
the full premium amount, a person to which clause 
(i) applies shall make the payment required under 
such clause to the individual within 60 days of such 
payment of the full premium amount. If, as of any 
day within the 180-day period, it is no longer reason-
able to believe that the credit will be used during 
that period, payment equal to the remainder of the 
credit outstanding shall be made to the individual 
within 60 days of such day. 
(13) PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF 
CESSATION OF ELIGIBILITY FOR PREMIUM ASSISTANCE.— 
(A) IN GENERAL.—Part I of subchapter B of chapter 
68 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF 
CESSATION OF ELIGIBILITY FOR COBRA PREMIUM 
ASSISTANCE. 
‘‘(a) IN GENERAL.—Any person required to notify a group health 
plan under section 3002(a)(2)(C)) of the Health Insurance Assistance 
for the Unemployed Act of 2009 who fails to make such a notification 
at such time and in such manner as the Secretary of Labor may 
require shall pay a penalty of 110 percent of the premium reduction 
provided under such section after termination of eligibility under 
such subsection. 
‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty shall be 
imposed under subsection (a) with respect to any failure if it is 
shown that such failure is due to reasonable cause and not to 
willful neglect.’’. 
26 USC 6720C. 
Time period. 
Deadlines. 
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123 STAT. 465 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) CLERICAL AMENDMENT.—The table of sections of 
part I of subchapter B of chapter 68 of such Code is 
amended by adding at the end the following new item: 
‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility for 
COBRA premium assistance.’’. 
(C) EFFECTIVE DATE.—The amendments made by this 
paragraph shall apply to failures occurring after the date 
of the enactment of this Act. 
(14) COORDINATION WITH HCTC.— 
(A) IN GENERAL.—Subsection (g) of section 35 of the 
Internal Revenue Code of 1986 is amended by redesignating 
paragraph (9) as paragraph (10) and inserting after para-
graph (8) the following new paragraph: 
‘‘(9) COBRA PREMIUM ASSISTANCE.—In the case of an assist-
ance eligible individual who receives premium reduction for 
COBRA continuation coverage under section 3002(a) of the 
Health Insurance Assistance for the Unemployed Act of 2009 
for any month during the taxable year, such individual shall 
not be treated as an eligible individual, a certified individual, 
or a qualifying family member for purposes of this section 
or section 7527 with respect to such month.’’. 
(B) EFFECTIVE
DATE.—The amendment made by 
subparagraph (A) shall apply to taxable years ending after 
the date of the enactment of this Act. 
(15) EXCLUSION OF COBRA PREMIUM ASSISTANCE 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 139B the following new section: 
‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 
‘‘In the case of an assistance eligible individual (as defined 
in section 3002 of the Health Insurance Assistance for the 
Unemployed Act of 2009), gross income does not include any pre-
mium reduction provided under subsection (a) of such section.’’. 
(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 
139B the following new item: 
‘‘Sec. 139C. COBRA premium assistance.’’. 
(C) EFFECTIVE DATE.—The amendments made by this 
paragraph shall apply to taxable years ending after the 
date of the enactment of this Act. 
(b) ELIMINATION
OF
PREMIUM
SUBSIDY
FOR
HIGH-INCOME 
INDIVIDUALS.— 
(1) RECAPTURE
OF
SUBSIDY
FOR
HIGH-INCOME
INDIVID-
UALS.—If— 
(A) premium assistance is provided under this section 
with respect to any COBRA continuation coverage which 
covers the taxpayer, the taxpayer’s spouse, or any 
dependent (within the meaning of section 152 of the 
Internal Revenue Code of 1986, determined without regard 
to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of the 
taxpayer during any portion of the taxable year, and 
(B) the taxpayer’s modified adjusted gross income for 
such taxable year exceeds $125,000 ($250,000 in the case 
of a joint return), 
26 USC 139C. 
26 USC 35. 
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123 STAT. 466 
PUBLIC LAW 111–5—FEB. 17, 2009 
then the tax imposed by chapter 1 of such Code with respect 
to the taxpayer for such taxable year shall be increased by 
the amount of such assistance. 
(2) PHASE-IN OF RECAPTURE.— 
(A) IN
GENERAL.—In the case of a taxpayer whose 
modified adjusted gross income for the taxable year does 
not exceed $145,000 ($290,000 in the case of a joint return), 
the increase in the tax imposed under paragraph (1) shall 
not exceed the phase-in percentage of such increase (deter-
mined without regard to this paragraph). 
(B) PHASE-IN PERCENTAGE.—For purposes of this sub-
section, the term ‘‘phase-in percentage’’ means the ratio 
(expressed as a percentage) obtained by dividing— 
(i) the excess of described in subparagraph (B) 
of paragraph (1), by 
(ii) $20,000 ($40,000 in the case of a joint return). 
(3) OPTION FOR HIGH-INCOME INDIVIDUALS TO WAIVE ASSIST-
ANCE
AND
AVOID
RECAPTURE.—Notwithstanding subsection 
(a)(3), an individual shall not be treated as an assistance 
eligible individual for purposes of this section and section 6432 
of the Internal Revenue Code of 1986 if such individual— 
(A) makes a permanent election (at such time and 
in such form and manner as the Secretary of the Treasury 
may prescribe) to waive the right to the premium assistance 
provided under this section, and 
(B) notifies the entity to whom premiums are 
reimbursed under section 6432(a) of such Code of such 
election. 
(4) MODIFIED ADJUSTED GROSS INCOME.—For purposes of 
this subsection, the term ‘‘modified adjusted gross income’’ 
means the adjusted gross income (as defined in section 62 
of the Internal Revenue Code of 1986) of the taxpayer for 
the taxable year increased by any amount excluded from gross 
income under section 911, 931, or 933 of such Code. 
(5) CREDITS NOT ALLOWED AGAINST TAX, ETC.—For purposes 
determining regular tax liability under section 26(b) of such 
Code, the increase in tax under this subsection shall not be 
treated as a tax imposed under chapter 1 of such Code. 
(6) REGULATIONS.—The Secretary of the Treasury shall 
issue such regulations or other guidance as are necessary or 
appropriate to carry out this subsection, including requirements 
that the entity to whom premiums are reimbursed under section 
6432(a) of the Internal Revenue Code of 1986 report to the 
Secretary, and to each assistance eligible individual, the 
amount of premium assistance provided under subsection (a) 
with respect to each such individual. 
(7) EFFECTIVE
DATE.—The provisions of this subsection 
shall apply to taxable years ending after the date of the enact-
ment of this Act. 
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123 STAT. 467 
PUBLIC LAW 111–5—FEB. 17, 2009 
TITLE IV—MEDICARE AND MEDICAID 
HEALTH 
INFORMATION 
TECH-
NOLOGY; MISCELLANEOUS MEDICARE 
PROVISIONS 
SEC. 4001. TABLE OF CONTENTS OF TITLE. 
The table of contents of this title is as follows: 
TITLE IV—MEDICARE AND MEDICAID HEALTH INFORMATION 
TECHNOLOGY; MISCELLANEOUS MEDICARE PROVISIONS 
Sec. 4001. Table of contents of title. 
Subtitle A—Medicare Incentives 
Sec. 4101. Incentives for eligible professionals. 
Sec. 4102. Incentives for hospitals. 
Sec. 4103. Treatment of payments and savings; implementation funding. 
Sec. 4104. Studies and reports on health information technology. 
Subtitle B—Medicaid Incentives 
Sec. 4201. Medicaid provider HIT adoption and operation payments; implementa-
tion funding. 
Subtitle C—Miscellaneous Medicare Provisions 
Sec. 4301. Moratoria on certain Medicare regulations. 
Sec. 4302. Long-term care hospital technical corrections. 
Subtitle A—Medicare Incentives 
SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 
(a) INCENTIVE PAYMENTS.—Section 1848 of the Social Security 
Act (42 U.S.C. 1395w–4) is amended by adding at the end the 
following new subsection: 
‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL USE OF CER-
TIFIED EHR TECHNOLOGY.— 
‘‘(1) INCENTIVE PAYMENTS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN GENERAL.—Subject to the succeeding sub-
paragraphs of this paragraph, with respect to covered 
professional services furnished by an eligible profes-
sional during a payment year (as defined in subpara-
graph (E)), if the eligible professional is a meaningful 
EHR user (as determined under paragraph (2)) for 
the EHR reporting period with respect to such year, 
in addition to the amount otherwise paid under this 
part, there also shall be paid to the eligible professional 
(or to an employer or facility in the cases described 
in clause (A) of section 1842(b)(6)), from the Federal 
Supplementary Medical Insurance Trust Fund estab-
lished under section 1841 an amount equal to 75 per-
cent of the Secretary’s estimate (based on claims sub-
mitted not later than 2 months after the end of the 
payment year) of the allowed charges under this part 
for all such covered professional services furnished by 
the eligible professional during such year. 
‘‘(ii) NO
INCENTIVE
PAYMENTS
WITH
RESPECT
TO 
YEARS
AFTER
2016.—No incentive payments may be 
Deadline. 
Health 
Information 
Technology for 
Economic 
and Clinical 
Health Act. 
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123 STAT. 468 
PUBLIC LAW 111–5—FEB. 17, 2009 
made under this subsection with respect to a year 
after 2016. 
‘‘(B) LIMITATIONS
ON
AMOUNTS
OF
INCENTIVE
PAY-
MENTS.— 
‘‘(i) IN
GENERAL.—In no case shall the amount 
of the incentive payment provided under this para-
graph for an eligible professional for a payment year 
exceed the applicable amount specified under this 
subparagraph with respect to such eligible professional 
and such year. 
‘‘(ii) AMOUNT.—Subject to clauses (iii) through (v), 
the applicable amount specified in this subparagraph 
for an eligible professional is as follows: 
‘‘(I) For the first payment year for such profes-
sional, $15,000 (or, if the first payment year for 
such eligible professional is 2011 or 2012, $18,000). 
‘‘(II) For the second payment year for such 
professional, $12,000. 
‘‘(III) For the third payment year for such 
professional, $8,000. 
‘‘(IV) For the fourth payment year for such 
professional, $4,000. 
‘‘(V) For the fifth payment year for such profes-
sional, $2,000. 
‘‘(VI) For any succeeding payment year for 
such professional, $0. 
‘‘(iii) PHASE
DOWN
FOR
ELIGIBLE
PROFESSIONALS 
FIRST ADOPTING EHR AFTER 2013.—If the first payment 
year for an eligible professional is after 2013, then 
the amount specified in this subparagraph for a pay-
ment year for such professional is the same as the 
amount specified in clause (ii) for such payment year 
for an eligible professional whose first payment year 
is 2013. 
‘‘(iv) INCREASE
FOR
CERTAIN
ELIGIBLE
PROFES-
SIONALS.—In the case of an eligible professional who 
predominantly furnishes services under this part in 
an area that is designated by the Secretary (under 
section 332(a)(1)(A) of the Public Health Service Act) 
as a health professional shortage area, the amount 
that would otherwise apply for a payment year for 
such professional under subclauses (I) through (V) of 
clause (ii) shall be increased by 10 percent. In imple-
menting the preceding sentence, the Secretary may, 
as determined appropriate, apply provisions of sub-
sections (m) and (u) of section 1833 in a similar manner 
as such provisions apply under such subsection. 
‘‘(v) NO
INCENTIVE
PAYMENT
IF
FIRST
ADOPTING 
AFTER 2014.—If the first payment year for an eligible 
professional is after 2014 then the applicable amount 
specified in this subparagraph for such professional 
for such year and any subsequent year shall be $0. 
‘‘(C) NON-APPLICATION
TO
HOSPITAL-BASED
ELIGIBLE 
PROFESSIONALS.— 
‘‘(i) IN GENERAL.—No incentive payment may be 
made under this paragraph in the case of a hospital- 
based eligible professional. 
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123 STAT. 469 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) HOSPITAL-BASED ELIGIBLE PROFESSIONAL.—For 
purposes of clause (i), the term ‘hospital-based eligible 
professional’ means, with respect to covered profes-
sional services furnished by an eligible professional 
during the EHR reporting period for a payment year, 
an eligible professional, such as a pathologist, anesthe-
siologist, or emergency physician, who furnishes 
substantially all of such services in a hospital setting 
(whether inpatient or outpatient) and through the use 
of the facilities and equipment, including qualified elec-
tronic health records, of the hospital. The determina-
tion of whether an eligible professional is a hospital- 
based eligible professional shall be made on the basis 
of the site of service (as defined by the Secretary) 
and without regard to any employment or billing 
arrangement between the eligible professional and any 
other provider. 
‘‘(D) PAYMENT.— 
‘‘(i) FORM OF PAYMENT.—The payment under this 
paragraph may be in the form of a single consolidated 
payment or in the form of such periodic installments 
as the Secretary may specify. 
‘‘(ii) COORDINATION OF APPLICATION OF LIMITATION 
FOR PROFESSIONALS IN DIFFERENT PRACTICES.—In the 
case of an eligible professional furnishing covered 
professional services in more than one practice (as 
specified by the Secretary), the Secretary shall estab-
lish rules to coordinate the incentive payments, 
including the application of the limitation on amounts 
of such incentive payments under this paragraph, 
among such practices. 
‘‘(iii) COORDINATION
WITH
MEDICAID.—The Sec-
retary shall seek, to the maximum extent practicable, 
to avoid duplicative requirements from Federal and 
State governments to demonstrate meaningful use of 
certified EHR technology under this title and title XIX. 
The Secretary may also adjust the reporting periods 
under such title and such subsections in order to carry 
out this clause. 
‘‘(E) PAYMENT YEAR DEFINED.— 
‘‘(i) IN GENERAL.—For purposes of this subsection, 
the term ‘payment year’ means a year beginning with 
2011. 
‘‘(ii) FIRST, SECOND, ETC. PAYMENT
YEAR.—The 
term ‘first payment year’ means, with respect to cov-
ered professional services furnished by an eligible 
professional, the first year for which an incentive pay-
ment is made for such services under this subsection. 
The terms ‘second payment year’, ‘third payment year’, 
‘fourth payment year’, and ‘fifth payment year’ mean, 
with respect to covered professional services furnished 
by such eligible professional, each successive year 
immediately following the first payment year for such 
professional. 
‘‘(2) MEANINGFUL EHR USER.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (1), an 
eligible professional shall be treated as a meaningful EHR 
Regulations. 
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123 STAT. 470 
PUBLIC LAW 111–5—FEB. 17, 2009 
user for an EHR reporting period for a payment year 
(or, for purposes of subsection (a)(7), for an EHR reporting 
period under such subsection for a year) if each of the 
following requirements is met: 
‘‘(i) MEANINGFUL
USE
OF
CERTIFIED
EHR
TECH-
NOLOGY.—The eligible professional demonstrates to the 
satisfaction of the Secretary, in accordance with 
subparagraph (C)(i), that during such period the profes-
sional is using certified EHR technology in a meaning-
ful manner, which shall include the use of electronic 
prescribing as determined to be appropriate by the 
Secretary. 
‘‘(ii) INFORMATION EXCHANGE.—The eligible profes-
sional demonstrates to the satisfaction of the Secretary, 
in accordance with subparagraph (C)(i), that during 
such period such certified EHR technology is connected 
in a manner that provides, in accordance with law 
and standards applicable to the exchange of informa-
tion, for the electronic exchange of health information 
to improve the quality of health care, such as pro-
moting care coordination. 
‘‘(iii) REPORTING ON MEASURES USING EHR.—Sub-
ject to subparagraph (B)(ii) and using such certified 
EHR technology, the eligible professional submits 
information for such period, in a form and manner 
specified by the Secretary, on such clinical quality 
measures and such other measures as selected by the 
Secretary under subparagraph (B)(i). 
The Secretary may provide for the use of alternative means 
for meeting the requirements of clauses (i), (ii), and (iii) 
in the case of an eligible professional furnishing covered 
professional services in a group practice (as defined by 
the Secretary). The Secretary shall seek to improve the 
use of electronic health records and health care quality 
over time by requiring more stringent measures of mean-
ingful use selected under this paragraph. 
‘‘(B) REPORTING ON MEASURES.— 
‘‘(i) SELECTION.—The Secretary shall select meas-
ures for purposes of subparagraph (A)(iii) but only 
consistent with the following: 
‘‘(I) The Secretary shall provide preference to 
clinical quality measures that have been endorsed 
by the entity with a contract with the Secretary 
under section 1890(a). 
‘‘(II) Prior to any measure being selected under 
this subparagraph, the Secretary shall publish in 
the Federal Register such measure and provide 
for a period of public comment on such measure. 
‘‘(ii) LIMITATION.—The Secretary may not require 
the electronic reporting of information on clinical 
quality measures under subparagraph (A)(iii) unless 
the Secretary has the capacity to accept the informa-
tion electronically, which may be on a pilot basis. 
‘‘(iii) COORDINATION
OF
REPORTING
OF
INFORMA-
TION.—In selecting such measures, and in establishing 
the form and manner for reporting measures under 
subparagraph (A)(iii), the Secretary shall seek to avoid 
Federal Register, 
publication. 
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123 STAT. 471 
PUBLIC LAW 111–5—FEB. 17, 2009 
redundant or duplicative reporting otherwise required, 
including reporting under subsection (k)(2)(C). 
‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED 
EHR TECHNOLOGY AND INFORMATION EXCHANGE.— 
‘‘(i) IN GENERAL.—A professional may satisfy the 
demonstration requirement of clauses (i) and (ii) of 
subparagraph (A) through means specified by the Sec-
retary, which may include— 
‘‘(I) an attestation; 
‘‘(II) the submission of claims with appropriate 
coding (such as a code indicating that a patient 
encounter was documented using certified EHR 
technology); 
‘‘(III) a survey response; 
‘‘(IV) reporting under subparagraph (A)(iii); 
and 
‘‘(V) other means specified by the Secretary. 
‘‘(ii) USE OF PART D DATA.—Notwithstanding sec-
tions 1860D–15(d)(2)(B) and 1860D–15(f)(2), the Sec-
retary may use data regarding drug claims submitted 
for purposes of section 1860D–15 that are necessary 
for purposes of subparagraph (A). 
‘‘(3) APPLICATION.— 
‘‘(A) PHYSICIAN REPORTING SYSTEM RULES.—Paragraphs 
(5), (6), and (8) of subsection (k) shall apply for purposes 
of this subsection in the same manner as they apply for 
purposes of such subsection. 
‘‘(B) COORDINATION WITH OTHER PAYMENTS.—The provi-
sions of this subsection shall not be taken into account 
in applying the provisions of subsection (m) of this section 
and of section 1833(m) and any payment under such provi-
sions shall not be taken into account in computing allow-
able charges under this subsection. 
‘‘(C) LIMITATIONS
ON
REVIEW.—There shall be no 
administrative or judicial review under section 1869, sec-
tion 1878, or otherwise, of— 
‘‘(i) the methodology and standards for determining 
payment amounts under this subsection and payment 
adjustments under subsection (a)(7)(A), including the 
limitation under paragraph (1)(B) and coordination 
under clauses (ii) and (iii) of paragraph (1)(D); 
‘‘(ii) the methodology and standards for deter-
mining a meaningful EHR user under paragraph (2), 
including selection of measures under paragraph (2)(B), 
specification of the means of demonstrating meaningful 
EHR use under paragraph (2)(C), and the hardship 
exception under subsection (a)(7)(B); 
‘‘(iii) the methodology and standards for deter-
mining a hospital-based eligible professional under 
paragraph (1)(C); and 
‘‘(iv) the specification of reporting periods under 
paragraph (5) and the selection of the form of payment 
under paragraph (1)(D)(i). 
‘‘(D) POSTING ON WEBSITE.—The Secretary shall post 
on the Internet website of the Centers for Medicare & 
Medicaid Services, in an easily understandable format, a 
list of the names, business addresses, and business phone 
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123 STAT. 472 
PUBLIC LAW 111–5—FEB. 17, 2009 
numbers of the eligible professionals who are meaningful 
EHR users and, as determined appropriate by the Sec-
retary, of group practices receiving incentive payments 
under paragraph (1). 
‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.—For purposes 
of this section, the term ‘certified EHR technology’ means a 
qualified electronic health record (as defined in section 3000(13) 
of the Public Health Service Act) that is certified pursuant 
to section 3001(c)(5) of such Act as meeting standards adopted 
under section 3004 of such Act that are applicable to the 
type of record involved (as determined by the Secretary, such 
as an ambulatory electronic health record for office-based physi-
cians or an inpatient hospital electronic health record for hos-
pitals). 
‘‘(5) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) COVERED PROFESSIONAL SERVICES.—The term ‘cov-
ered professional services’ has the meaning given such 
term in subsection (k)(3). 
‘‘(B) 
EHR 
REPORTING
PERIOD.—The 
term 
‘EHR 
reporting period’ means, with respect to a payment year, 
any period (or periods) as specified by the Secretary. 
‘‘(C) 
ELIGIBLE
PROFESSIONAL.—The 
term 
‘eligible 
professional’ means a physician, as defined in section 
1861(r).’’. 
(b) INCENTIVE PAYMENT ADJUSTMENT.—Section 1848(a) of the 
Social Security Act (42 U.S.C. 1395w–4(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(7) INCENTIVES FOR MEANINGFUL USE OF CERTIFIED EHR 
TECHNOLOGY.— 
‘‘(A) ADJUSTMENT.— 
‘‘(i) IN
GENERAL.—Subject to subparagraphs (B) 
and (D), with respect to covered professional services 
furnished by an eligible professional during 2015 or 
any subsequent payment year, if the eligible profes-
sional is not a meaningful EHR user (as determined 
under subsection (o)(2)) for an EHR reporting period 
for the year, the fee schedule amount for such services 
furnished by such professional during the year 
(including the fee schedule amount for purposes of 
determining a payment based on such amount) shall 
be equal to the applicable percent of the fee schedule 
amount that would otherwise apply to such services 
under this subsection (determined after application of 
paragraph (3) but without regard to this paragraph). 
‘‘(ii) APPLICABLE PERCENT.—Subject to clause (iii), 
for purposes of clause (i), the term ‘applicable percent’ 
means— 
‘‘(I) for 2015, 99 percent (or, in the case of 
an eligible professional who was subject to the 
application of the payment adjustment under sec-
tion 1848(a)(5) for 2014, 98 percent); 
‘‘(II) for 2016, 98 percent; and 
‘‘(III) for 2017 and each subsequent year, 97 
percent. 
‘‘(iii) 
AUTHORITY
TO
DECREASE
APPLICABLE 
PERCENTAGE FOR 2018 AND SUBSEQUENT YEARS.—For 
2018 and each subsequent year, if the Secretary finds 
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123 STAT. 473 
PUBLIC LAW 111–5—FEB. 17, 2009 
that the proportion of eligible professionals who are 
meaningful EHR users (as determined under sub-
section (o)(2)) is less than 75 percent, the applicable 
percent shall be decreased by 1 percentage point from 
the applicable percent in the preceding year, but in 
no case shall the applicable percent be less than 95 
percent. 
‘‘(B) SIGNIFICANT HARDSHIP EXCEPTION.—The Secretary 
may, on a case-by-case basis, exempt an eligible profes-
sional from the application of the payment adjustment 
under subparagraph (A) if the Secretary determines, sub-
ject to annual renewal, that compliance with the require-
ment for being a meaningful EHR user would result in 
a significant hardship, such as in the case of an eligible 
professional who practices in a rural area without sufficient 
Internet access. In no case may an eligible professional 
be granted an exemption under this subparagraph for more 
than 5 years. 
‘‘(C) APPLICATION
OF
PHYSICIAN
REPORTING
SYSTEM 
RULES.—Paragraphs (5), (6), and (8) of subsection (k) shall 
apply for purposes of this paragraph in the same manner 
as they apply for purposes of such subsection. 
‘‘(D) NON-APPLICATION
TO
HOSPITAL-BASED
ELIGIBLE 
PROFESSIONALS.—No payment adjustment may be made 
under subparagraph (A) in the case of hospital-based 
eligible professionals (as defined in subsection (o)(1)(C)(ii)). 
‘‘(E) DEFINITIONS.—For purposes of this paragraph: 
‘‘(i) COVERED PROFESSIONAL SERVICES.—The term 
‘covered professional services’ has the meaning given 
such term in subsection (k)(3). 
‘‘(ii) EHR REPORTING
PERIOD.—The term ‘EHR 
reporting period’ means, with respect to a year, a 
period (or periods) specified by the Secretary. 
‘‘(iii) ELIGIBLE PROFESSIONAL.—The term ‘eligible 
professional’ means a physician, as defined in section 
1861(r).’’. 
(c) APPLICATION TO CERTAIN MA-AFFILIATED ELIGIBLE PROFES-
SIONALS.—Section 1853 of the Social Security Act (42 U.S.C. 1395w– 
23) is amended by adding at the end the following new subsection: 
‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL INCENTIVES FOR 
CERTAIN MA ORGANIZATIONS FOR ADOPTION AND MEANINGFUL USE 
OF CERTIFIED EHR TECHNOLOGY.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (3) and (4), in 
the case of a qualifying MA organization, the provisions of 
sections 1848(o) and 1848(a)(7) shall apply with respect to 
eligible professionals described in paragraph (2) of the organiza-
tion who the organization attests under paragraph (6) to be 
meaningful EHR users in a similar manner as they apply 
to eligible professionals under such sections. Incentive pay-
ments under paragraph (3) shall be made to and payment 
adjustments under paragraph (4) shall apply to such qualifying 
organizations. 
‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.—With respect to 
a qualifying MA organization, an eligible professional described 
in this paragraph is an eligible professional (as defined for 
purposes of section 1848(o)) who— 
‘‘(A)(i) is employed by the organization; or 
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123 STAT. 474 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii)(I) is employed by, or is a partner of, an entity 
that through contract with the organization furnishes at 
least 80 percent of the entity’s Medicare patient care serv-
ices to enrollees of such organization; and 
‘‘(II) furnishes at least 80 percent of the professional 
services of the eligible professional covered under this title 
to enrollees of the organization; and 
‘‘(B) furnishes, on average, at least 20 hours per week 
of patient care services. 
‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAYMENTS.— 
‘‘(A) IN GENERAL.—In applying section 1848(o) under 
paragraph (1), instead of the additional payment amount 
under section 1848(o)(1)(A) and subject to subparagraph 
(B), the Secretary may substitute an amount determined 
by the Secretary to the extent feasible and practical to 
be similar to the estimated amount in the aggregate that 
would be payable if payment for services furnished by 
such professionals was payable under part B instead of 
this part. 
‘‘(B) AVOIDING DUPLICATION OF PAYMENTS.— 
‘‘(i) IN GENERAL.—In the case of an eligible profes-
sional described in paragraph (2)— 
‘‘(I) that is eligible for the maximum incentive 
payment under section 1848(o)(1)(A) for the same 
payment period, the payment incentive shall be 
made only under such section and not under this 
subsection; and 
‘‘(II) that is eligible for less than such max-
imum incentive payment for the same payment 
period, the payment incentive shall be made only 
under this subsection and not under section 
1848(o)(1)(A). 
‘‘(ii) METHODS.—In the case of an eligible profes-
sional described in paragraph (2) who is eligible for 
an incentive payment under section 1848(o)(1)(A) but 
is not described in clause (i) for the same payment 
period, the Secretary shall develop a process— 
‘‘(I) to ensure that duplicate payments are not 
made with respect to an eligible professional both 
under 
this 
subsection 
and 
under 
section 
1848(o)(1)(A); and 
‘‘(II) to collect data from Medicare Advantage 
organizations to ensure against such duplicate pay-
ments. 
‘‘(C) FIXED SCHEDULE FOR APPLICATION OF LIMITATION 
ON
INCENTIVE
PAYMENTS
FOR
ALL
ELIGIBLE
PROFES-
SIONALS.—In 
applying 
section 
1848(o)(1)(B)(ii) 
under 
subparagraph (A), in accordance with rules specified by 
the Secretary, a qualifying MA organization shall specify 
a year (not earlier than 2011) that shall be treated as 
the first payment year for all eligible professionals with 
respect to such organization. 
‘‘(4) PAYMENT ADJUSTMENT.— 
‘‘(A) IN GENERAL.—In applying section 1848(a)(7) under 
paragraph (1), instead of the payment adjustment being 
an applicable percent of the fee schedule amount for a 
year under such section, subject to subparagraph (D), the 
Deadline. 
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123 STAT. 475 
PUBLIC LAW 111–5—FEB. 17, 2009 
payment adjustment under paragraph (1) shall be equal 
to the percent specified in subparagraph (B) for such year 
of the payment amount otherwise provided under this sec-
tion for such year. 
‘‘(B) SPECIFIED PERCENT.—The percent specified under 
this subparagraph for a year is 100 percent minus a 
number of percentage points equal to the product of— 
‘‘(i) the number of percentage points by which the 
applicable percent (under section 1848(a)(7)(A)(ii)) for 
the year is less than 100 percent; and 
‘‘(ii) the Medicare physician expenditure proportion 
specified in subparagraph (C) for the year. 
‘‘(C) MEDICARE PHYSICIAN EXPENDITURE PROPORTION.— 
The Medicare physician expenditure proportion under this 
subparagraph for a year is the Secretary’s estimate of 
the proportion, of the expenditures under parts A and 
B that are not attributable to this part, that are attrib-
utable to expenditures for physicians’ services. 
‘‘(D) APPLICATION OF PAYMENT ADJUSTMENT.—In the 
case that a qualifying MA organization attests that not 
all eligible professionals of the organization are meaningful 
EHR users with respect to a year, the Secretary shall 
apply the payment adjustment under this paragraph based 
on the proportion of all such eligible professionals of the 
organization that are not meaningful EHR users for such 
year. 
‘‘(5) QUALIFYING MA ORGANIZATION DEFINED.—In this sub-
section and subsection (m), the term ‘qualifying MA organiza-
tion’ means a Medicare Advantage organization that is orga-
nized as a health maintenance organization (as defined in sec-
tion 2791(b)(3) of the Public Health Service Act). 
‘‘(6) MEANINGFUL EHR USER ATTESTATION.—For purposes 
of this subsection and subsection (m), a qualifying MA organiza-
tion shall submit an attestation, in a form and manner specified 
by the Secretary which may include the submission of such 
attestation as part of submission of the initial bid under section 
1854(a)(1)(A)(iv), identifying— 
‘‘(A) whether each eligible professional described in 
paragraph (2), with respect to such organization is a mean-
ingful EHR user (as defined in section 1848(o)(2)) for a 
year specified by the Secretary; and 
‘‘(B) whether each eligible hospital described in sub-
section (m)(1), with respect to such organization, is a mean-
ingful EHR user (as defined in section 1886(n)(3)) for an 
applicable period specified by the Secretary. 
‘‘(7) POSTING ON WEBSITE.—The Secretary shall post on 
the Internet website of the Centers for Medicare & Medicaid 
Services, in an easily understandable format, a list of the 
names, business addresses, and business phone numbers of— 
‘‘(A) each qualifying MA organization receiving an 
incentive payment under this subsection for eligible profes-
sionals of the organization; and 
‘‘(B) the eligible professionals of such organization for 
which such incentive payment is based. 
‘‘(8) LIMITATION ON REVIEW.—There shall be no administra-
tive or judicial review under section 1869, section 1878, or 
otherwise, of— 
Attestation. 
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123 STAT. 476 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) the methodology and standards for determining 
payment amounts and payment adjustments under this 
subsection, including avoiding duplication of payments 
under paragraph (3)(B) and the specification of rules for 
the fixed schedule for application of limitation on incentive 
payments for all eligible professionals under paragraph 
(3)(C); 
‘‘(B) the methodology and standards for determining 
eligible professionals under paragraph (2); and 
‘‘(C) the methodology and standards for determining 
a meaningful EHR user under section 1848(o)(2), including 
specification of the means of demonstrating meaningful 
EHR use under section 1848(o)(3)(C) and selection of meas-
ures under section 1848(o)(3)(B).’’. 
(d) STUDY AND REPORT RELATING TO MA ORGANIZATIONS.— 
(1) STUDY.—The Secretary of Health and Human Services 
shall conduct a study on the extent to which and manner 
in which payment incentives and adjustments (such as under 
sections 1848(o) and 1848(a)(7) of the Social Security Act) could 
be made available to professionals, as defined in 1861(r), who 
are not eligible for HIT incentive payments under section 
1848(o) and receive payments for Medicare patient services 
nearly-exclusively through contractual arrangements with one 
or more Medicare Advantage organizations, or an intermediary 
organization or organizations with contracts with Medicare 
Advantage organizations. Such study shall assess approaches 
for measuring meaningful use of qualified EHR technology 
among such professionals and mechanisms for delivering incen-
tives and adjustments to those professionals, including through 
incentive payments and adjustments through Medicare Advan-
tage organizations or intermediary organizations. 
(2) REPORT.—Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Health and Human 
Services shall submit to Congress a report on the findings 
and the conclusions of the study conducted under paragraph 
(1), together with recommendations for such legislation and 
administrative action as the Secretary determines appropriate. 
(e) CONFORMING AMENDMENTS.—Section 1853 of the Social 
Security Act (42 U.S.C. 1395w–23) is amended— 
(1) in subsection (a)(1)(A), by striking ‘‘and (i)’’ and inserting 
‘‘(i), and (l)’’; 
(2) in subsection (c)— 
(A) in paragraph (1)(D)(i), by striking ‘‘section 1886(h)’’ 
and inserting ‘‘sections 1848(o) and 1886(h)’’; and 
(B) in paragraph (6)(A), by inserting after ‘‘under part 
B,’’ the following: ‘‘excluding expenditures attributable to 
subsections (a)(7) and (o) of section 1848,’’; and 
(3) in subsection (f), by inserting ‘‘and for payments under 
subsection (l)’’ after ‘‘with the organization’’. 
(f) CONFORMING AMENDMENTS TO E-PRESCRIBING.— 
(1) Section 1848(a)(5)(A) of the Social Security Act (42 
U.S.C. 1395w–4(a)(5)(A)) is amended— 
(A) in clause (i), by striking ‘‘or any subsequent year’’ 
and inserting ‘‘, 2013 or 2014’’; and 
(B) in clause (ii), by striking ‘‘and each subsequent 
year’’. 
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123 STAT. 477 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w– 
4(m)(2)) is amended— 
(A) in subparagraph (A), by striking ‘‘For 2009’’ and 
inserting ‘‘Subject to subparagraph (D), for 2009’’; and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(D) LIMITATION WITH RESPECT TO EHR INCENTIVE PAY-
MENTS.—The provisions of this paragraph shall not apply 
to an eligible professional (or, in the case of a group practice 
under paragraph (3)(C), to the group practice) if, for the 
EHR reporting period the eligible professional (or group 
practice) receives an incentive payment under subsection 
(o)(1)(A) with respect to a certified EHR technology (as 
defined in subsection (o)(4)) that has the capability of elec-
tronic prescribing.’’. 
SEC. 4102. INCENTIVES FOR HOSPITALS. 
(a) INCENTIVE PAYMENT.— 
(1) IN GENERAL.—Section 1886 of the Social Security Act 
(42 U.S.C. 1395ww) is amended by adding at the end the 
following new subsection: 
‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL USE OF CER-
TIFIED EHR TECHNOLOGY.— 
‘‘(1) IN GENERAL.—Subject to the succeeding provisions of 
this subsection, with respect to inpatient hospital services fur-
nished by an eligible hospital during a payment year (as defined 
in paragraph (2)(G)), if the eligible hospital is a meaningful 
EHR user (as determined under paragraph (3)) for the EHR 
reporting period with respect to such year, in addition to the 
amount otherwise paid under this section, there also shall 
be paid to the eligible hospital, from the Federal Hospital 
Insurance Trust Fund established under section 1817, an 
amount equal to the applicable amount specified in paragraph 
(2)(A) for the hospital for such payment year. 
‘‘(2) PAYMENT AMOUNT.— 
‘‘(A) IN GENERAL.—Subject to the succeeding subpara-
graphs of this paragraph, the applicable amount specified 
in this subparagraph for an eligible hospital for a payment 
year is equal to the product of the following: 
‘‘(i) INITIAL AMOUNT.—The sum of— 
‘‘(I) the base amount specified in subparagraph 
(B); plus 
‘‘(II) the discharge related amount specified 
in subparagraph (C) for a 12-month period selected 
by the Secretary with respect to such payment 
year. 
‘‘(ii) MEDICARE
SHARE.—The Medicare share as 
specified in subparagraph (D) for the eligible hospital 
for a period selected by the Secretary with respect 
to such payment year. 
‘‘(iii) TRANSITION
FACTOR.—The transition factor 
specified in subparagraph (E) for the eligible hospital 
for the payment year. 
‘‘(B) BASE AMOUNT.—The base amount specified in this 
subparagraph is $2,000,000. 
‘‘(C) DISCHARGE
RELATED
AMOUNT.—The discharge 
related amount specified in this subparagraph for a 12- 
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123 STAT. 478 
PUBLIC LAW 111–5—FEB. 17, 2009 
month period selected by the Secretary shall be determined 
as the sum of the amount, estimated based upon total 
discharges for the eligible hospital (regardless of any source 
of payment) for the period, for each discharge up to the 
23,000th discharge as follows: 
‘‘(i) For the first through 1,149th discharge, $0. 
‘‘(ii) For the 1,150th through the 23,000th dis-
charge, $200. 
‘‘(iii) For any discharge greater than the 23,000th, 
$0. 
‘‘(D) MEDICARE SHARE.—The Medicare share specified 
under this subparagraph for an eligible hospital for a period 
selected by the Secretary for a payment year is equal 
to the fraction— 
‘‘(i) the numerator of which is the sum (for such 
period and with respect to the eligible hospital) of— 
‘‘(I) the estimated number of inpatient-bed- 
days (as established by the Secretary) which are 
attributable to individuals with respect to whom 
payment may be made under part A; and 
‘‘(II) the estimated number of inpatient-bed- 
days (as so established) which are attributable 
to individuals who are enrolled with a Medicare 
Advantage organization under part C; and 
‘‘(ii) the denominator of which is the product of— 
‘‘(I) the estimated total number of inpatient- 
bed-days with respect to the eligible hospital 
during such period; and 
‘‘(II) the estimated total amount of the eligible 
hospital’s 
charges 
during 
such 
period, 
not 
including any charges that are attributable to 
charity care (as such term is used for purposes 
of hospital cost reporting under this title), divided 
by the estimated total amount of the hospital’s 
charges during such period. 
Insofar as the Secretary determines that data are not avail-
able on charity care necessary to calculate the portion 
of the formula specified in clause (ii)(II), the Secretary 
shall use data on uncompensated care and may adjust 
such data so as to be an appropriate proxy for charity 
care including a downward adjustment to eliminate bad 
debt data from uncompensated care data. In the absence 
of the data necessary, with respect to a hospital, for the 
Secretary to compute the amount described in clause (ii)(II), 
the amount under such clause shall be deemed to be 1. 
In the absence of data, with respect to a hospital, necessary 
to compute the amount described in clause (i)(II), the 
amount under such clause shall be deemed to be 0. 
‘‘(E) TRANSITION FACTOR SPECIFIED.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the transi-
tion factor specified in this subparagraph for an eligible 
hospital for a payment year is as follows: 
‘‘(I) For the first payment year for such hos-
pital, 1. 
‘‘(II) For the second payment year for such 
hospital, 3⁄4. 
Data. 
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123 STAT. 479 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(III) For the third payment year for such 
hospital, 1⁄2. 
‘‘(IV) For the fourth payment year for such 
hospital, 1⁄4. 
‘‘(V) For any succeeding payment year for such 
hospital, 0. 
‘‘(ii) PHASE DOWN FOR ELIGIBLE HOSPITALS FIRST 
ADOPTING EHR AFTER 2013.—If the first payment year 
for an eligible hospital is after 2013, then the transition 
factor specified in this subparagraph for a payment 
year for such hospital is the same as the amount 
specified in clause (i) for such payment year for an 
eligible hospital for which the first payment year is 
2013. If the first payment year for an eligible hospital 
is after 2015 then the transition factor specified in 
this subparagraph for such hospital and for such year 
and any subsequent year shall be 0. 
‘‘(F) FORM OF PAYMENT.—The payment under this sub-
section for a payment year may be in the form of a single 
consolidated payment or in the form of such periodic install-
ments as the Secretary may specify. 
‘‘(G) PAYMENT YEAR DEFINED.— 
‘‘(i) IN GENERAL.—For purposes of this subsection, 
the term ‘payment year’ means a fiscal year beginning 
with fiscal year 2011. 
‘‘(ii) FIRST, SECOND, ETC. PAYMENT
YEAR.—The 
term ‘first payment year’ means, with respect to 
inpatient hospital services furnished by an eligible hos-
pital, the first fiscal year for which an incentive pay-
ment is made for such services under this subsection. 
The terms ‘second payment year’, ‘third payment year’, 
and ‘fourth payment year’ mean, with respect to an 
eligible hospital, each successive year immediately fol-
lowing the first payment year for that hospital. 
‘‘(3) MEANINGFUL EHR USER.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (1), an 
eligible hospital shall be treated as a meaningful EHR 
user for an EHR reporting period for a payment year 
(or, for purposes of subsection (b)(3)(B)(ix), for an EHR 
reporting period under such subsection for a fiscal year) 
if each of the following requirements are met: 
‘‘(i) MEANINGFUL
USE
OF
CERTIFIED
EHR
TECH-
NOLOGY.—The eligible hospital demonstrates to the 
satisfaction of the Secretary, in accordance with 
subparagraph (C)(i), that during such period the hos-
pital is using certified EHR technology in a meaningful 
manner. 
‘‘(ii) INFORMATION
EXCHANGE.—The eligible hos-
pital demonstrates to the satisfaction of the Secretary, 
in accordance with subparagraph (C)(i), that during 
such period such certified EHR technology is connected 
in a manner that provides, in accordance with law 
and standards applicable to the exchange of informa-
tion, for the electronic exchange of health information 
to improve the quality of health care, such as pro-
moting care coordination. 
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123 STAT. 480 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(iii) REPORTING ON MEASURES USING EHR.—Sub-
ject to subparagraph (B)(ii) and using such certified 
EHR technology, the eligible hospital submits informa-
tion for such period, in a form and manner specified 
by the Secretary, on such clinical quality measures 
and such other measures as selected by the Secretary 
under subparagraph (B)(i). 
The Secretary shall seek to improve the use of electronic 
health records and health care quality over time by 
requiring more stringent measures of meaningful use 
selected under this paragraph. 
‘‘(B) REPORTING ON MEASURES.— 
‘‘(i) SELECTION.—The Secretary shall select meas-
ures for purposes of subparagraph (A)(iii) but only 
consistent with the following: 
‘‘(I) The Secretary shall provide preference to 
clinical quality measures that have been selected 
for purposes of applying subsection (b)(3)(B)(viii) 
or that have been endorsed by the entity with 
a contract with the Secretary under section 
1890(a). 
‘‘(II) Prior to any measure (other than a clin-
ical quality measure that has been selected for 
purposes of applying subsection (b)(3)(B)(viii)) 
being selected under this subparagraph, the Sec-
retary shall publish in the Federal Register such 
measure and provide for a period of public com-
ment on such measure. 
‘‘(ii) LIMITATIONS.—The Secretary may not require 
the electronic reporting of information on clinical 
quality measures under subparagraph (A)(iii) unless 
the Secretary has the capacity to accept the informa-
tion electronically, which may be on a pilot basis. 
‘‘(iii) COORDINATION
OF
REPORTING
OF
INFORMA-
TION.—In selecting such measures, and in establishing 
the form and manner for reporting measures under 
subparagraph (A)(iii), the Secretary shall seek to avoid 
redundant or duplicative reporting with reporting 
otherwise required, including reporting under sub-
section (b)(3)(B)(viii). 
‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED 
EHR TECHNOLOGY AND INFORMATION EXCHANGE.— 
‘‘(i) IN GENERAL.—An eligible hospital may satisfy 
the demonstration requirement of clauses (i) and (ii) 
of subparagraph (A) through means specified by the 
Secretary, which may include— 
‘‘(I) an attestation; 
‘‘(II) the submission of claims with appropriate 
coding (such as a code indicating that inpatient 
care was documented using certified EHR tech-
nology); 
‘‘(III) a survey response; 
‘‘(IV) reporting under subparagraph (A)(iii); 
and 
‘‘(V) other means specified by the Secretary. 
Federal Register, 
publication. 
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123 STAT. 481 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) USE OF PART D DATA.—Notwithstanding sec-
tions 1860D–15(d)(2)(B) and 1860D–15(f)(2), the Sec-
retary may use data regarding drug claims submitted 
for purposes of section 1860D–15 that are necessary 
for purposes of subparagraph (A). 
‘‘(4) APPLICATION.— 
‘‘(A) LIMITATIONS
ON
REVIEW.—There shall be no 
administrative or judicial review under section 1869, sec-
tion 1878, or otherwise, of— 
‘‘(i) the methodology and standards for determining 
payment amounts under this subsection and payment 
adjustments under subsection (b)(3)(B)(ix), including 
selection of periods under paragraph (2) for deter-
mining, and making estimates or using proxies of, 
discharges under paragraph (2)(C) and inpatient-bed- 
days, hospital charges, charity charges, and Medicare 
share under paragraph (2)(D); 
‘‘(ii) the methodology and standards for deter-
mining a meaningful EHR user under paragraph (3), 
including selection of measures under paragraph (3)(B), 
specification of the means of demonstrating meaningful 
EHR use under paragraph (3)(C), and the hardship 
exception under subsection (b)(3)(B)(ix)(II); and 
‘‘(iii) the specification of EHR reporting periods 
under paragraph (6)(B) and the selection of the form 
of payment under paragraph (2)(F). 
‘‘(B) POSTING ON WEBSITE.—The Secretary shall post 
on the Internet website of the Centers for Medicare & 
Medicaid Services, in an easily understandable format, a 
list of the names of the eligible hospitals that are meaning-
ful EHR users under this subsection or subsection 
(b)(3)(B)(ix) (and a list of the names of critical access hos-
pitals to which paragraph (3) or (4) of section 1814(l) 
applies), and other relevant data as determined appropriate 
by the Secretary. The Secretary shall ensure that an 
eligible hospital (or critical access hospital) has the oppor-
tunity to review the other relevant data that are to be 
made public with respect to the hospital (or critical access 
hospital) prior to such data being made public. 
‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.—The term ‘cer-
tified EHR technology’ has the meaning given such term in 
section 1848(o)(4). 
‘‘(6) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) 
EHR 
REPORTING
PERIOD.—The 
term 
‘EHR 
reporting period’ means, with respect to a payment year, 
any period (or periods) as specified by the Secretary. 
‘‘(B) ELIGIBLE HOSPITAL.—The term ‘eligible hospital’ 
means a subsection (d) hospital.’’. 
(2) CRITICAL
ACCESS
HOSPITALS.—Section 1814(l) of the 
Social Security Act (42 U.S.C. 1395f(l)) is amended— 
(A) in paragraph (1), by striking ‘‘paragraph (2)’’ and 
inserting ‘‘the subsequent paragraphs of this subsection’’; 
and 
(B) by adding at the end the following new paragraph: 
‘‘(3)(A) The following rules shall apply in determining payment 
and reasonable costs under paragraph (1) for costs described in 
subparagraph (C) for a critical access hospital that would be a 
Regulations. 
Applicability. 
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123 STAT. 482 
PUBLIC LAW 111–5—FEB. 17, 2009 
meaningful EHR user (as would be determined under paragraph 
(3) of section 1886(n)) for an EHR reporting period for a cost 
reporting period beginning during a payment year if such critical 
access hospital was treated as an eligible hospital under such 
section: 
‘‘(i) The Secretary shall compute reasonable costs by 
expensing such costs in a single payment year and not depre-
ciating such costs over a period of years (and shall include 
as costs with respect to cost reporting periods beginning during 
a payment year costs from previous cost reporting periods to 
the extent they have not been fully depreciated as of the period 
involved). 
‘‘(ii) There shall be substituted for the Medicare share 
that would otherwise be applied under paragraph (1) a percent 
(not to exceed 100 percent) equal to the sum of— 
‘‘(I) the Medicare share (as would be specified under 
paragraph (2)(D) of section 1886(n)) for such critical access 
hospital if such critical access hospital was treated as an 
eligible hospital under such section; and 
‘‘(II) 20 percentage points. 
‘‘(B) The payment under this paragraph with respect to a crit-
ical access hospital shall be paid through a prompt interim payment 
(subject to reconciliation) after submission and review of such 
information (as specified by the Secretary) necessary to make such 
payment, including information necessary to apply this paragraph. 
In no case may payment under this paragraph be made with respect 
to a cost reporting period beginning during a payment year after 
2015 and in no case may a critical access hospital receive payment 
under this paragraph with respect to more than 4 consecutive 
payment years. 
‘‘(C) The costs described in this subparagraph are costs for 
the purchase of certified EHR technology to which purchase depre-
ciation (excluding interest) would apply if payment was made under 
paragraph (1) and not under this paragraph. 
‘‘(D) For purposes of this paragraph, paragraph (4), and para-
graph (5), the terms ‘certified EHR technology’, ‘eligible hospital’, 
‘EHR reporting period’, and ‘payment year’ have the meanings 
given such terms in sections 1886(n).’’. 
(b) INCENTIVE MARKET BASKET ADJUSTMENT.— 
(1) IN GENERAL.—Section 1886(b)(3)(B) of the Social Secu-
rity Act (42 U.S.C. 1395ww(b)(3)(B)) is amended— 
(A) in clause (viii)(I), by inserting ‘‘(or, beginning with 
fiscal year 2015, by one-quarter)’’ after ‘‘2.0 percentage 
points’’; and 
(B) by adding at the end the following new clause: 
‘‘(ix)(I) For purposes of clause (i) for fiscal year 2015 and each 
subsequent fiscal year, in the case of an eligible hospital (as defined 
in subsection (n)(6)(A)) that is not a meaningful EHR user (as 
defined in subsection (n)(3)) for an EHR reporting period for such 
fiscal year, three-quarters of the applicable percentage increase 
otherwise applicable under clause (i) for such fiscal year shall 
be reduced by 331⁄3 percent for fiscal year 2015, 662⁄3 percent 
for fiscal year 2016, and 100 percent for fiscal year 2017 and 
each subsequent fiscal year. Such reduction shall apply only with 
respect to the fiscal year involved and the Secretary shall not 
take into account such reduction in computing the applicable 
percentage increase under clause (i) for a subsequent fiscal year. 
Applicability. 
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123 STAT. 483 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(II) The Secretary may, on a case-by-case basis, exempt a 
subsection (d) hospital from the application of subclause (I) with 
respect to a fiscal year if the Secretary determines, subject to 
annual renewal, that requiring such hospital to be a meaningful 
EHR user during such fiscal year would result in a significant 
hardship, such as in the case of a hospital in a rural area without 
sufficient Internet access. In no case may a hospital be granted 
an exemption under this subclause for more than 5 years. 
‘‘(III) For fiscal year 2015 and each subsequent fiscal year, 
a State in which hospitals are paid for services under section 
1814(b)(3) shall adjust the payments to each subsection (d) hospital 
in the State that is not a meaningful EHR user (as defined in 
subsection (n)(3)) in a manner that is designed to result in an 
aggregate reduction in payments to hospitals in the State that 
is equivalent to the aggregate reduction that would have occurred 
if payments had been reduced to each subsection (d) hospital in 
the State in a manner comparable to the reduction under the 
previous provisions of this clause. The State shall report to the 
Secretary the methodology it will use to make the payment adjust-
ment under the previous sentence. 
‘‘(IV) For purposes of this clause, the term ‘EHR reporting 
period’ means, with respect to a fiscal year, any period (or periods) 
as specified by the Secretary.’’. 
(2) CRITICAL
ACCESS
HOSPITALS.—Section 1814(l) of the 
Social Security Act (42 U.S.C. 1395f(l)), as amended by sub-
section (a)(2), is further amended by adding at the end the 
following new paragraphs: 
‘‘(4)(A) Subject to subparagraph (C), for cost reporting periods 
beginning in fiscal year 2015 or a subsequent fiscal year, in the 
case of a critical access hospital that is not a meaningful EHR 
user (as would be determined under paragraph (3) of section 1886(n) 
if such critical access hospital was treated as an eligible hospital 
under such section) for an EHR reporting period with respect to 
such fiscal year, paragraph (1) shall be applied by substituting 
the applicable percent under subparagraph (B) for the percent 
described in such paragraph (1). 
‘‘(B) The percent described in this subparagraph is— 
‘‘(i) for fiscal year 2015, 100.66 percent; 
‘‘(ii) for fiscal year 2016, 100.33 percent; and 
‘‘(iii) for fiscal year 2017 and each subsequent fiscal year, 
100 percent. 
‘‘(C) The provisions of subclause (II) of section 1886(b)(3)(B)(ix) 
shall apply with respect to subparagraph (A) for a critical access 
hospital with respect to a cost reporting period beginning in a 
fiscal year in the same manner as such subclause applies with 
respect to subclause (I) of such section for a subsection (d) hospital 
with respect to such fiscal year. 
‘‘(5) There shall be no administrative or judicial review under 
section 1869, section 1878, or otherwise, of— 
‘‘(A) the methodology and standards for determining the 
amount of payment and reasonable cost under paragraph (3) 
and payment adjustments under paragraph (4), including selec-
tion of periods under section 1886(n)(2) for determining, and 
making estimates or using proxies of, inpatient-bed-days, hos-
pital charges, charity charges, and Medicare share under 
subparagraph (D) of section 1886(n)(2); 
Applicability. 
Applicability. 
Reports. 
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123 STAT. 484 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(B) the methodology and standards for determining a 
meaningful EHR user under section 1886(n)(3) as would apply 
if the hospital was treated as an eligible hospital under section 
1886(n), and the hardship exception under paragraph (4)(C); 
‘‘(C) the specification of EHR reporting periods under sec-
tion 1886(n)(6)(B) as applied under paragraphs (3) and (4); 
and 
‘‘(D) the identification of costs for purposes of paragraph 
(3)(C).’’. 
(c) APPLICATION
TO CERTAIN MA-AFFILIATED ELIGIBLE HOS-
PITALS.—Section 1853 of the Social Security Act (42 U.S.C. 1395w– 
23), as amended by section 4101(c), is further amended by adding 
at the end the following new subsection: 
‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCENTIVES FOR CER-
TAIN MA ORGANIZATIONS
FOR ADOPTION
AND MEANINGFUL USE 
OF CERTIFIED EHR TECHNOLOGY.— 
‘‘(1) APPLICATION.—Subject to paragraphs (3) and (4), in 
the case of a qualifying MA organization, the provisions of 
sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with respect 
to eligible hospitals described in paragraph (2) of the organiza-
tion which the organization attests under subsection (l)(6) to 
be meaningful EHR users in a similar manner as they apply 
to eligible hospitals under such sections. Incentive payments 
under paragraph (3) shall be made to and payment adjustments 
under paragraph (4) shall apply to such qualifying organiza-
tions. 
‘‘(2) ELIGIBLE
HOSPITAL
DESCRIBED.—With respect to a 
qualifying MA organization, an eligible hospital described in 
this paragraph is an eligible hospital (as defined in section 
1886(n)(6)(A)) that is under common corporate governance with 
such organization and serves individuals enrolled under an 
MA plan offered by such organization. 
‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAYMENTS.— 
‘‘(A) IN GENERAL.—In applying section 1886(n)(2) under 
paragraph (1), instead of the additional payment amount 
under section 1886(n)(2), there shall be substituted an 
amount determined by the Secretary to be similar to the 
estimated amount in the aggregate that would be payable 
if payment for services furnished by such hospitals was 
payable under part A instead of this part. In implementing 
the previous sentence, the Secretary— 
‘‘(i) shall, insofar as data to determine the dis-
charge related amount under section 1886(n)(2)(C) for 
an eligible hospital are not available to the Secretary, 
use such alternative data and methodology to estimate 
such discharge related amount as the Secretary deter-
mines appropriate; and 
‘‘(ii) shall, insofar as data to determine the medi-
care share described in section 1886(n)(2)(D) for an 
eligible hospital are not available to the Secretary, 
use such alternative data and methodology to estimate 
such share, which data and methodology may include 
use of the inpatient-bed-days (or discharges) with 
respect to an eligible hospital during the appropriate 
period which are attributable to both individuals for 
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123 STAT. 485 
PUBLIC LAW 111–5—FEB. 17, 2009 
whom payment may be made under part A or individ-
uals enrolled in an MA plan under a Medicare Advan-
tage organization under this part as a proportion of 
the estimated total number of patient-bed-days (or dis-
charges) with respect to such hospital during such 
period. 
‘‘(B) AVOIDING DUPLICATION OF PAYMENTS.— 
‘‘(i) IN GENERAL.—In the case of a hospital that 
for a payment year is an eligible hospital described 
in paragraph (2) and for which at least one-third of 
their discharges (or bed-days) of Medicare patients for 
the year are covered under part A, payment for the 
payment year shall be made only under section 1886(n) 
and not under this subsection. 
‘‘(ii) METHODS.—In the case of a hospital that is 
an eligible hospital described in paragraph (2) and 
also is eligible for an incentive payment under section 
1886(n) but is not described in clause (i) for the same 
payment period, the Secretary shall develop a 
process— 
‘‘(I) to ensure that duplicate payments are not 
made with respect to an eligible hospital both 
under this subsection and under section 1886(n); 
and 
‘‘(II) to collect data from Medicare Advantage 
organizations to ensure against such duplicate pay-
ments. 
‘‘(4) PAYMENT ADJUSTMENT.— 
‘‘(A) Subject to paragraph (3), in the case of a qualifying 
MA organization (as defined in section 1853(l)(5)), if, 
according to the attestation of the organization submitted 
under subsection (l)(6) for an applicable period, one or 
more eligible hospitals (as defined in section 1886(n)(6)(A)) 
that are under common corporate governance with such 
organization and that serve individuals enrolled under a 
plan offered by such organization are not meaningful EHR 
users (as defined in section 1886(n)(3)) with respect to 
a period, the payment amount payable under this section 
for such organization for such period shall be the percent 
specified in subparagraph (B) for such period of the pay-
ment amount otherwise provided under this section for 
such period. 
‘‘(B) SPECIFIED PERCENT.—The percent specified under 
this subparagraph for a year is 100 percent minus a 
number of percentage points equal to the product of— 
‘‘(i) the number of the percentage point reduction 
effected under section 1886(b)(3)(B)(ix)(I) for the period; 
and 
‘‘(ii) the Medicare hospital expenditure proportion 
specified in subparagraph (C) for the year. 
‘‘(C) MEDICARE HOSPITAL EXPENDITURE PROPORTION.— 
The Medicare hospital expenditure proportion under this 
subparagraph for a year is the Secretary’s estimate of 
the proportion, of the expenditures under parts A and 
B that are not attributable to this part, that are attrib-
utable to expenditures for inpatient hospital services. 
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123 STAT. 486 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(D) APPLICATION OF PAYMENT ADJUSTMENT.—In the 
case that a qualifying MA organization attests that not 
all eligible hospitals are meaningful EHR users with 
respect to an applicable period, the Secretary shall apply 
the payment adjustment under this paragraph based on 
a methodology specified by the Secretary, taking into 
account the proportion of such eligible hospitals, or dis-
charges from such hospitals, that are not meaningful EHR 
users for such period. 
‘‘(5) POSTING ON WEBSITE.—The Secretary shall post on 
the Internet website of the Centers for Medicare & Medicaid 
Services, in an easily understandable format— 
‘‘(A) a list of the names, business addresses, and busi-
ness phone numbers of each qualifying MA organization 
receiving an incentive payment under this subsection for 
eligible hospitals described in paragraph (2); and 
‘‘(B) a list of the names of the eligible hospitals for 
which such incentive payment is based. 
‘‘(6) LIMITATIONS ON REVIEW.—There shall be no adminis-
trative or judicial review under section 1869, section 1878, 
or otherwise, of— 
‘‘(A) the methodology and standards for determining 
payment amounts and payment adjustments under this 
subsection, including avoiding duplication of payments 
under paragraph (3)(B); 
‘‘(B) the methodology and standards for determining 
eligible hospitals under paragraph (2); and 
‘‘(C) the methodology and standards for determining 
a meaningful EHR user under section 1886(n)(3), including 
specification of the means of demonstrating meaningful 
EHR use under subparagraph (C) of such section and selec-
tion of measures under subparagraph (B) of such section.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 1814(b) of the Social Security Act (42 U.S.C. 
1395f(b)) is amended— 
(A) in paragraph (3), in the matter preceding subpara-
graph 
(A), 
by 
inserting 
‘‘, 
subject 
to 
section 
1886(d)(3)(B)(ix)(III),’’ after ‘‘then’’; and 
(B) by adding at the end the following: ‘‘For purposes 
of applying paragraph (3), there shall be taken into account 
incentive payments, and payment adjustments under sub-
section (b)(3)(B)(ix) or (n) of section 1886.’’. 
(2) Section 1851(i)(1) of the Social Security Act (42 U.S.C. 
1395w–21(i)(1)) is amended by striking ‘‘and 1886(h)(3)(D)’’ and 
inserting ‘‘1886(h)(3)(D), and 1853(m)’’. 
(3) Section 1853 of the Social Security Act (42 U.S.C. 
1395w–23), as amended by section 4101(d), is amended— 
(A) in subsection (c)— 
(i) in paragraph (1)(D)(i), by striking ‘‘1848(o)’’ and 
inserting ‘‘, 1848(o), and 1886(n)’’; and 
(ii) in paragraph (6)(A), by inserting ‘‘and sub-
sections (b)(3)(B)(ix) and (n) of section 1886’’ after ‘‘sec-
tion 1848’’; and 
(B) in subsection (f), by inserting ‘‘and subsection (m)’’ 
after ‘‘under subsection (l)’’. 
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123 STAT. 487 
PUBLIC LAW 111–5—FEB. 17, 2009 
SEC. 4103. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTA-
TION FUNDING. 
(a) PREMIUM HOLD HARMLESS.— 
(1) IN GENERAL.—Section 1839(a)(1) of the Social Security 
Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end 
the following: ‘‘In applying this paragraph there shall not be 
taken into account additional payments under section 1848(o) 
and section 1853(l)(3) and the Government contribution under 
section 1844(a)(3).’’. 
(2) PAYMENT.—Section 1844(a) of such Act (42 U.S.C. 
1395w(a)) is amended— 
(A) in paragraph (2), by striking the period at the 
end and inserting ‘‘; plus’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(3) a Government contribution equal to the amount of 
payment incentives payable under sections 1848(o) and 
1853(l)(3).’’. 
(b) MEDICARE IMPROVEMENT FUND.—Section 1898 of the Social 
Security Act (42 U.S.C. 1395iii), as added by section 7002(a) of 
the Supplemental Appropriations Act, 2008 (Public Law 110–252) 
and as amended by section 188(a)(2) of the Medicare Improvements 
for Patients and Providers Act of 2008 (Public Law 110–275; 122 
Stat. 2589) and by section 6 of the QI Program Supplemental 
Funding Act of 2008, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘medicare’’ before ‘‘fee-for-service’’; and 
(B) by inserting before the period at the end the fol-
lowing: ‘‘including, but not limited to, an increase in the 
conversion factor under section 1848(d) to address, in whole 
or in part, any projected shortfall in the conversion factor 
for 2014 relative to the conversion factor for 2008 and 
adjustments to payments for items and services furnished 
by providers of services and suppliers under such original 
medicare fee-for-service program’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘during fiscal year 
2014,’’ and all that follows and inserting the following: 
‘‘during— 
‘‘(A) fiscal year 2014, $22,290,000,000; and 
‘‘(B) fiscal year 2020 and each subsequent fiscal year, 
the Secretary’s estimate, as of July 1 of the fiscal year, 
of the aggregate reduction in expenditures under this title 
during the preceding fiscal year directly resulting from 
the 
reduction 
in 
payment 
amounts 
under 
sections 
1848(a)(7), 1853(l)(4), 1853(m)(4), and 1886(b)(3)(B)(ix).’’; 
and 
(B) by adding at the end the following new paragraph: 
‘‘(4) NO
EFFECT
ON
PAYMENTS
IN
SUBSEQUENT
YEARS.— 
In the case that expenditures from the Fund are applied to, 
or otherwise affect, a payment rate for an item or service 
under this title for a year, the payment rate for such item 
or service shall be computed for a subsequent year as if such 
application or effect had never occurred.’’. 
(c) IMPLEMENTATION FUNDING.—In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appro-
priated, there are appropriated to the Secretary of Health and 
Human Services for the Center for Medicare & Medicaid Services 
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123 STAT. 488 
PUBLIC LAW 111–5—FEB. 17, 2009 
Program Management Account, $100,000,000 for each of fiscal years 
2009 through 2015 and $45,000,000 for fiscal year 2016, which 
shall be available for purposes of carrying out the provisions of 
(and amendments made by) this subtitle. Amounts appropriated 
under this subsection for a fiscal year shall be available until 
expended. 
SEC. 4104. STUDIES AND REPORTS ON HEALTH INFORMATION TECH-
NOLOGY. 
(a) STUDY
AND REPORT
ON APPLICATION
OF EHR PAYMENT 
INCENTIVES FOR PROVIDERS NOT RECEIVING OTHER INCENTIVE PAY-
MENTS.— 
(1) STUDY.— 
(A) IN GENERAL.—The Secretary of Health and Human 
Services shall conduct a study to determine the extent 
to which and manner in which payment incentives (such 
as under title XVIII or XIX of the Social Security Act) 
and other funding for purposes of implementing and using 
certified EHR technology (as defined in section 1848(o)(4) 
of the Social Security Act, as added by section 4101(a)) 
should be made available to health care providers who 
are receiving minimal or no payment incentives or other 
funding under this Act, under title XIII of division A, 
under title XVIII or XIX of such Act, or otherwise, for 
such purposes. 
(B) DETAILS OF STUDY.—Such study shall include an 
examination of— 
(i) the adoption rates of certified EHR technology 
by such health care providers; 
(ii) the clinical utility of such technology by such 
health care providers; 
(iii) whether the services furnished by such health 
care providers are appropriate for or would benefit 
from the use of such technology; 
(iv) the extent to which such health care providers 
work in settings that might otherwise receive an incen-
tive payment or other funding under this Act, under 
title XIII of division A, under title XVIII or XIX of 
the Social Security Act, or otherwise; 
(v) the potential costs and the potential benefits 
of making payment incentives and other funding avail-
able to such health care providers; and 
(vi) any other issues the Secretary deems to be 
appropriate. 
(2) REPORT.—Not later than June 30, 2010, the Secretary 
shall submit to Congress a report on the findings and conclu-
sions of the study conducted under paragraph (1). 
(b) STUDY
AND REPORT
ON AVAILABILITY
OF OPEN SOURCE 
HEALTH INFORMATION TECHNOLOGY SYSTEMS.— 
(1) STUDY.— 
(A) IN GENERAL.—The Secretary of Health and Human 
Services shall, in consultation with the Under Secretary 
for Health of the Veterans Health Administration, the 
Director of the Indian Health Service, the Secretary of 
Defense, the Director of the Agency for Healthcare 
Research and Quality, the Administrator of the Health 
Resources and Services Administration, and the Chairman 
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123 STAT. 489 
PUBLIC LAW 111–5—FEB. 17, 2009 
of the Federal Communications Commission, conduct a 
study on— 
(i) the current availability of open source health 
information technology systems to Federal safety net 
providers (including small, rural providers); 
(ii) the total cost of ownership of such systems 
in comparison to the cost of proprietary commercial 
products available; 
(iii) the ability of such systems to respond to the 
needs of, and be applied to, various populations 
(including children and disabled individuals); and 
(iv) the capacity of such systems to facilitate inter-
operability. 
(B) CONSIDERATIONS.—In conducting the study under 
subparagraph (A), the Secretary of Health and Human 
Services shall take into account the circumstances of 
smaller health care providers, health care providers located 
in rural or other medically underserved areas, and safety 
net providers that deliver a significant level of health care 
to uninsured individuals, Medicaid beneficiaries, SCHIP 
beneficiaries, and other vulnerable individuals. 
(2) REPORT.—Not later than October 1, 2010, the Secretary 
of Health and Human Services shall submit to Congress a 
report on the findings and the conclusions of the study con-
ducted under paragraph (1), together with recommendations 
for such legislation and administrative action as the Secretary 
determines appropriate. 
Subtitle B—Medicaid Incentives 
SEC. 4201. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAY-
MENTS; IMPLEMENTATION FUNDING. 
(a) IN GENERAL.—Section 1903 of the Social Security Act (42 
U.S.C. 1396b) is amended— 
(1) in subsection (a)(3)— 
(A) by striking ‘‘and’’ at the end of subparagraph (D); 
(B) by striking ‘‘plus’’ at the end of subparagraph (E) 
and inserting ‘‘and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(F)(i) 100 percent of so much of the sums expended 
during such quarter as are attributable to payments to 
Medicaid providers described in subsection (t)(1) to encour-
age the adoption and use of certified EHR technology; 
and 
‘‘(ii) 90 percent of so much of the sums expended during 
such quarter as are attributable to payments for reasonable 
administrative expenses related to the administration of 
payments described in clause (i) if the State meets the 
condition described in subsection (t)(9); plus’’; and 
(2) by inserting after subsection (s) the following new sub-
section: 
‘‘(t)(1) For purposes of subsection (a)(3)(F), the payments 
described in this paragraph to encourage the adoption and use 
of certified EHR technology are payments made by the State in 
accordance with this subsection — 
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123 STAT. 490 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) to Medicaid providers described in paragraph (2)(A) 
not in excess of 85 percent of net average allowable costs 
(as defined in paragraph (3)(E)) for certified EHR technology 
(and support services including maintenance and training that 
is for, or is necessary for the adoption and operation of, such 
technology) with respect to such providers; and 
‘‘(B) to Medicaid providers described in paragraph (2)(B) 
not in excess of the maximum amount permitted under para-
graph (5) for the provider involved. 
‘‘(2) In this subsection and subsection (a)(3)(F), the term ‘Med-
icaid provider’ means— 
‘‘(A) an eligible professional (as defined in paragraph 
(3)(B))— 
‘‘(i) who is not hospital-based and has at least 30 
percent of the professional’s patient volume (as estimated 
in accordance with a methodology established by the Sec-
retary) attributable to individuals who are receiving med-
ical assistance under this title; 
‘‘(ii) who is not described in clause (i), who is a pediatri-
cian, who is not hospital-based, and who has at least 20 
percent of the professional’s patient volume (as estimated 
in accordance with a methodology established by the Sec-
retary) attributable to individuals who are receiving med-
ical assistance under this title; and 
‘‘(iii) who practices predominantly in a Federally quali-
fied health center or rural health clinic and has at least 
30 percent of the professional’s patient volume (as esti-
mated in accordance with a methodology established by 
the Secretary) attributable to needy individuals (as defined 
in paragraph (3)(F)); and 
‘‘(B)(i) a children’s hospital, or 
‘‘(ii) an acute-care hospital that is not described in clause 
(i) and that has at least 10 percent of the hospital’s patient 
volume (as estimated in accordance with a methodology estab-
lished by the Secretary) attributable to individuals who are 
receiving medical assistance under this title. 
An eligible professional shall not qualify as a Medicaid provider 
under this subsection unless any right to payment under sections 
1848(o) and 1853(l) with respect to the eligible professional has 
been waived in a manner specified by the Secretary. For purposes 
of calculating patient volume under subparagraph (A)(iii), insofar 
as it is related to uncompensated care, the Secretary may require 
the adjustment of such uncompensated care data so that it would 
be an appropriate proxy for charity care, including a downward 
adjustment to eliminate bad debt data from uncompensated care. 
In applying subparagraphs (A) and (B)(ii), the methodology estab-
lished by the Secretary for patient volume shall include individuals 
enrolled in a Medicaid managed care plan (under section 1903(m) 
or section 1932). 
‘‘(3) In this subsection and subsection (a)(3)(F): 
‘‘(A) The term ‘certified EHR technology’ means a qualified 
electronic health record (as defined in 3000(13) of the Public 
Health Service Act) that is certified pursuant to section 
3001(c)(5) of such Act as meeting standards adopted under 
section 3004 of such Act that are applicable to the type of 
record involved (as determined by the Secretary, such as an 
Definitions. 
Applicability. 
Definition. 
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123 STAT. 491 
PUBLIC LAW 111–5—FEB. 17, 2009 
ambulatory electronic health record for office-based physicians 
or an inpatient hospital electronic health record for hospitals). 
‘‘(B) The term ‘eligible professional’ means a— 
‘‘(i) physician; 
‘‘(ii) dentist; 
‘‘(iii) certified nurse mid-wife; 
‘‘(iv) nurse practitioner; and 
‘‘(v) physician assistant insofar as the assistant is prac-
ticing in a rural health clinic that is led by a physician 
assistant or is practicing in a Federally qualified health 
center that is so led. 
‘‘(C) The term ‘average allowable costs’ means, with respect 
to certified EHR technology of Medicaid providers described 
in paragraph (2)(A) for— 
‘‘(i) the first year of payment with respect to such 
a provider, the average costs for the purchase and initial 
implementation or upgrade of such technology (and support 
services including training that is for, or is necessary for 
the adoption and initial operation of, such technology) for 
such providers, as determined by the Secretary based upon 
studies conducted under paragraph (4)(C); and 
‘‘(ii) a subsequent year of payment with respect to 
such a provider, the average costs not described in clause 
(i) relating to the operation, maintenance, and use of such 
technology for such providers, as determined by the Sec-
retary based upon studies conducted under paragraph 
(4)(C). 
‘‘(D) The term ‘hospital-based’ means, with respect to an 
eligible professional, a professional (such as a pathologist, 
anesthesiologist, or emergency physician) who furnishes 
substantially all of the individual’s professional services in a 
hospital setting (whether inpatient or outpatient) and through 
the use of the facilities and equipment, including qualified 
electronic health records, of the hospital. The determination 
of whether an eligible professional is a hospital-based eligible 
professional shall be made on the basis of the site of service 
(as defined by the Secretary) and without regard to any employ-
ment or billing arrangement between the eligible professional 
and any other provider. 
‘‘(E) The term ‘net average allowable costs’ means, with 
respect to a Medicaid provider described in paragraph (2)(A), 
average allowable costs reduced by any payment that is made 
to such Medicaid provider from any other source (other than 
under this subsection or by a State or local government) that 
is directly attributable to payment for certified EHR technology 
or support services described in subparagraph (C). 
‘‘(F) The term ‘needy individual’ means, with respect to 
a Medicaid provider, an individual— 
‘‘(i) who is receiving assistance under this title; 
‘‘(ii) who is receiving assistance under title XXI; 
‘‘(iii) who is furnished uncompensated care by the pro-
vider; or 
‘‘(iv) for whom charges are reduced by the provider 
on a sliding scale basis based on an individual’s ability 
to pay. 
‘‘(4)(A) With respect to a Medicaid provider described in para-
graph (2)(A), subject to subparagraph (B), in no case shall— 
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123 STAT. 492 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(i) the net average allowable costs under this sub-
section for the first year of payment (which may not be 
later than 2016), which is intended to cover the costs 
described in paragraph (3)(C)(i), exceed $25,000 (or such 
lesser amount as the Secretary determines based on studies 
conducted under subparagraph (C)); 
‘‘(ii) the net average allowable costs under this sub-
section for a subsequent year of payment, which is intended 
to cover costs described in paragraph (3)(C)(ii), exceed 
$10,000; and 
‘‘(iii) payments be made for costs described in clause 
(ii) after 2021 or over a period of longer than 5 years. 
‘‘(B) In the case of Medicaid provider described in paragraph 
(2)(A)(ii), the dollar amounts specified in subparagraph (A) shall 
be 2⁄3 of the dollar amounts otherwise specified. 
‘‘(C) For the purposes of determining average allowable costs 
under this subsection, the Secretary shall study the average costs 
to Medicaid providers described in paragraph (2)(A) of purchase 
and initial implementation and upgrade of certified EHR technology 
described in paragraph (3)(C)(i) and the average costs to such 
providers of operations, maintenance, and use of such technology 
described in paragraph (3)(C)(ii). In determining such costs for 
such providers, the Secretary may utilize studies of such amounts 
submitted by States. 
‘‘(5)(A) In no case shall the payments described in paragraph 
(1)(B) with respect to a Medicaid provider described in paragraph 
(2)(B) exceed— 
‘‘(i) in the aggregate the product of— 
‘‘(I) the overall hospital EHR amount for the pro-
vider computed under subparagraph (B); and 
‘‘(II) the Medicaid share for such provider com-
puted under subparagraph (C); 
‘‘(ii) in any year 50 percent of the product described in 
clause (i); and 
‘‘(iii) in any 2-year period 90 percent of such product. 
‘‘(B) For purposes of this paragraph, the overall hospital EHR 
amount, with respect to a Medicaid provider, is the sum of the 
applicable amounts specified in section 1886(n)(2)(A) for such pro-
vider for the first 4 payment years (as estimated by the Secretary) 
determined as if the Medicare share specified in clause (ii) of 
such section were 1. The Secretary shall establish, in consultation 
with the State, the overall hospital EHR amount for each such 
Medicaid provider eligible for payments under paragraph (1)(B). 
For purposes of this subparagraph in computing the amounts under 
section 1886(n)(2)(C) for payment years after the first payment 
year, the Secretary shall assume that in subsequent payment years 
discharges increase at the average annual rate of growth of the 
most recent 3 years for which discharge data are available per 
year. 
‘‘(C) The Medicaid share computed under this subparagraph, 
for a Medicaid provider for a period specified by the Secretary, 
shall be calculated in the same manner as the Medicare share 
under section 1886(n)(2)(D) for such a hospital and period, except 
that there shall be substituted for the numerator under clause 
(i) of such section the amount that is equal to the number of 
inpatient-bed-days (as established by the Secretary) which are 
attributable to individuals who are receiving medical assistance 
Study. 
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123 STAT. 493 
PUBLIC LAW 111–5—FEB. 17, 2009 
under this title and who are not described in section 1886(n)(2)(D)(i). 
In computing inpatient-bed-days under the previous sentence, the 
Secretary shall take into account inpatient-bed-days attributable 
to inpatient-bed-days that are paid for individuals enrolled in a 
Medicaid managed care plan (under section 1903(m) or section 
1932). 
‘‘(D) In no case may the payments described in paragraph 
(1)(B) with respect to a Medicaid provider described in paragraph 
(2)(B) be paid— 
‘‘(i) for any year beginning after 2016 unless the provider 
has been provided payment under paragraph (1)(B) for the 
previous year; and 
‘‘(ii) over a period of more than 6 years of payment. 
‘‘(6) Payments described in paragraph (1) are not in accordance 
with this subsection unless the following requirements are met: 
‘‘(A)(i) The State provides assurances satisfactory to the 
Secretary that amounts received under subsection (a)(3)(F) with 
respect to payments to a Medicaid provider are paid, subject 
to clause (ii), directly to such provider (or to an employer 
or facility to which such provider has assigned payments) with-
out any deduction or rebate. 
‘‘(ii) Amounts described in clause (i) may also be paid 
to an entity promoting the adoption of certified EHR technology, 
as designated by the State, if participation in such a payment 
arrangement is voluntary for the eligible professional involved 
and if such entity does not retain more than 5 percent of 
such payments for costs not related to certified EHR technology 
(and support services including maintenance and training) that 
is for, or is necessary for the operation of, such technology. 
‘‘(B) A Medicaid provider described in paragraph (2)(A) 
is responsible for payment of the remaining 15 percent of 
the net average allowable cost. 
‘‘(C)(i) Subject to clause (ii), with respect to payments to 
a Medicaid provider— 
‘‘(I) for the first year of payment to the Medicaid pro-
vider under this subsection, the Medicaid provider dem-
onstrates that it is engaged in efforts to adopt, implement, 
or upgrade certified EHR technology; and 
‘‘(II) for a year of payment, other than the first year 
of payment to the Medicaid provider under this subsection, 
the Medicaid provider demonstrates meaningful use of cer-
tified EHR technology through a means that is approved 
by the State and acceptable to the Secretary, and that 
may be based upon the methodologies applied under section 
1848(o) or 1886(n). 
‘‘(ii) In the case of a Medicaid provider who has completed 
adopting, implementing, or upgrading such technology prior 
to the first year of payment to the Medicaid provider under 
this subsection, clause (i)(I) shall not apply and clause (i)(II) 
shall apply to each year of payment to the Medicaid provider 
under this subsection, including the first year of payment. 
‘‘(D) To the extent specified by the Secretary, the certified 
EHR technology is compatible with State or Federal administra-
tive management systems. 
For purposes of subparagraph (B), a Medicaid provider described 
in paragraph (2)(A) may accept payments for the costs described 
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123 STAT. 494 
PUBLIC LAW 111–5—FEB. 17, 2009 
in such subparagraph from a State or local government. For pur-
poses of subparagraph (C), in establishing the means described 
in such subparagraph, which may include clinical quality reporting 
to the State, the State shall ensure that populations with unique 
needs, such as children, are appropriately addressed. 
‘‘(7) With respect to Medicaid providers described in paragraph 
(2)(A), the Secretary shall ensure coordination of payment with 
respect to such providers under sections 1848(o) and 1853(l) and 
under this subsection to assure no duplication of funding. Such 
coordination shall include, to the extent practicable, a data matching 
process between State Medicaid agencies and the Centers for Medi-
care & Medicaid Services using national provider identifiers. For 
such purposes, the Secretary may require the submission of such 
data relating to payments to such Medicaid providers as the Sec-
retary may specify. 
‘‘(8) In carrying out paragraph (6)(C), the State and Secretary 
shall seek, to the maximum extent practicable, to avoid duplicative 
requirements from Federal and State governments to demonstrate 
meaningful use of certified EHR technology under this title and 
title XVIII. In doing so, the Secretary may deem satisfaction of 
requirements for such meaningful use for a payment year under 
title XVIII to be sufficient to qualify as meaningful use under 
this subsection. The Secretary may also specify the reporting periods 
under this subsection in order to carry out this paragraph. 
‘‘(9) In order to be provided Federal financial participation 
under subsection (a)(3)(F)(ii), a State must demonstrate to the satis-
faction of the Secretary, that the State— 
‘‘(A) is using the funds provided for the purposes of admin-
istering payments under this subsection, including tracking 
of meaningful use by Medicaid providers; 
‘‘(B) is conducting adequate oversight of the program under 
this subsection, including routine tracking of meaningful use 
attestations and reporting mechanisms; and 
‘‘(C) is pursuing initiatives to encourage the adoption of 
certified EHR technology to promote health care quality and 
the exchange of health care information under this title, subject 
to applicable laws and regulations governing such exchange. 
‘‘(10) The Secretary shall periodically submit reports to the 
Committee on Energy and Commerce of the House of Representa-
tives and the Committee on Finance of the Senate on status, 
progress, and oversight of payments described in paragraph (1), 
including steps taken to carry out paragraph (7). Such reports 
shall also describe the extent of adoption of certified EHR technology 
among Medicaid providers resulting from the provisions of this 
subsection and any improvements in health outcomes, clinical 
quality, or efficiency resulting from such adoption.’’. 
(b) IMPLEMENTATION FUNDING.—In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appro-
priated, there are appropriated to the Secretary of Health and 
Human Services for the Centers for Medicare & Medicaid Services 
Program Management Account, $40,000,000 for each of fiscal years 
2009 through 2015 and $20,000,000 for fiscal year 2016, which 
shall be available for purposes of carrying out the provisions of 
(and the amendments made by) this section. Amounts appropriated 
under this subsection for a fiscal year shall be available until 
expended. 
Reports. 
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123 STAT. 495 
PUBLIC LAW 111–5—FEB. 17, 2009 
Subtitle C—Miscellaneous Medicare 
Provisions 
SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS. 
(a) DELAY IN PHASE OUT OF MEDICARE HOSPICE BUDGET NEU-
TRALITY ADJUSTMENT FACTOR DURING FISCAL YEAR 2009.—Notwith-
standing any other provision of law, including the final rule pub-
lished on August 8, 2008, 73 Federal Register 46464 et seq., relating 
to Medicare Program; Hospice Wage Index for Fiscal Year 2009, 
the Secretary of Health and Human Services shall not phase out 
or eliminate the budget neutrality adjustment factor in the Medicare 
hospice wage index before October 1, 2009, and the Secretary shall 
recompute and apply the final Medicare hospice wage index for 
fiscal year 2009 as if there had been no reduction in the budget 
neutrality adjustment factor. 
(b) NON-APPLICATION OF PHASED-OUT INDIRECT MEDICAL EDU-
CATION (IME) ADJUSTMENT FACTOR FOR FISCAL YEAR 2009.— 
(1) IN GENERAL.—Section 412.322 of title 42, Code of Fed-
eral Regulations, shall be applied without regard to paragraph 
(c) of such section, and the Secretary of Health and Human 
Services shall recompute payments for discharges occurring 
on or after October 1, 2008, as if such paragraph had never 
been in effect. 
(2) NO EFFECT ON SUBSEQUENT YEARS.—Nothing in para-
graph (1) shall be construed as having any effect on the applica-
tion of paragraph (d) of section 412.322 of title 42, Code of 
Federal Regulations. 
(c) FUNDING FOR IMPLEMENTATION.—In addition to funds other-
wise available, for purposes of implementing the provisions of sub-
sections (a) and (b), including costs incurred in reprocessing claims 
in carrying out such provisions, the Secretary of Health and Human 
Services shall provide for the transfer from the Federal Hospital 
Insurance Trust Fund established under section 1817 of the Social 
Security Act (42 U.S.C. 1395i) to the Centers for Medicare & Med-
icaid Services Program Management Account of $2,000,000 for fiscal 
year 2009. 
SEC. 4302. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS. 
(a) PAYMENT.—Subsection (c) of section 114 of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110– 
173) is amended— 
(1) in paragraph (1)— 
(A) by amending the heading to read as follows: ‘‘DELAY 
IN APPLICATION OF 25 PERCENT PATIENT THRESHOLD PAY-
MENT ADJUSTMENT’’; 
(B) by striking ‘‘the date of the enactment of this 
Act’’ and inserting ‘‘July 1, 2007,’’; and 
(C) in subparagraph (A), by inserting ‘‘or to a long- 
term care hospital, or satellite facility, that as of December 
29, 2007, was co-located with an entity that is a provider- 
based, off-campus location of a subsection (d) hospital which 
did not provide services payable under section 1886(d) of 
the Social Security Act at the off-campus location’’ after 
‘‘freestanding long-term care hospitals’’; and 
(2) in paragraph (2)— 
42 USC 1395ww 
note. 
Applicability. 
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123 STAT. 496 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) in subparagraph (B)(ii), by inserting ‘‘or that is 
described in section 412.22(h)(3)(i) of such title’’ before the 
period; and 
(B) in subparagraph (C), by striking ‘‘the date of the 
enactment of this Act’’ and inserting ‘‘October 1, 2007 (or 
July 1, 2007, in the case of a satellite facility described 
in section 412.22(h)(3)(i) of title 42, Code of Federal Regula-
tions)’’. 
(b) MORATORIUM.—Subsection (d)(3)(A) of such section is 
amended by striking ‘‘if the hospital or facility’’ and inserting ‘‘if 
the hospital or facility obtained a certificate of need for an increase 
in beds that is in a State for which such certificate of need is 
required and that was issued on or after April 1, 2005, and before 
December 29, 2007, or if the hospital or facility’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall be effective and apply as if included in the enactment of 
the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
Law 110–173). 
TITLE V—STATE FISCAL RELIEF 
SEC. 5000. PURPOSES; TABLE OF CONTENTS. 
(a) PURPOSES.—The purposes of this title are as follows: 
(1) To provide fiscal relief to States in a period of economic 
downturn. 
(2) To protect and maintain State Medicaid programs 
during a period of economic downturn, including by helping 
to avert cuts to provider payment rates and benefits or services, 
and to prevent constrictions of income eligibility requirements 
for such programs, but not to promote increases in such require-
ments. 
(b) TABLE OF CONTENTS.—The table of contents for this title 
is as follows: 
TITLE V—STATE FISCAL RELIEF 
Sec. 5000. Purposes; table of contents. 
Sec. 5001. Temporary increase of Medicaid FMAP. 
Sec. 5002. Temporary increase in DSH allotments during recession. 
Sec. 5003. Extension of moratoria on certain Medicaid final regulations. 
Sec. 5004. Extension of transitional medical assistance (TMA). 
Sec. 5005. Extension of the qualifying individual (QI) program. 
Sec. 5006. Protections for Indians under Medicaid and CHIP. 
Sec. 5007. Funding for oversight and implementation. 
Sec. 5008. GAO study and report regarding State needs during periods of national 
economic downturn. 
SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP. 
(a) PERMITTING MAINTENANCE OF FMAP.—Subject to subsections 
(e), (f), and (g), if the FMAP determined without regard to this 
section for a State for— 
(1) fiscal year 2009 is less than the FMAP as so determined 
for fiscal year 2008, the FMAP for the State for fiscal year 
2008 shall be substituted for the State’s FMAP for fiscal year 
2009, before the application of this section; 
(2) fiscal year 2010 is less than the FMAP as so determined 
for fiscal year 2008 or fiscal year 2009 (after the application 
of paragraph (1)), the greater of such FMAP for the State 
for fiscal year 2008 or fiscal year 2009 shall be substituted 
42 USC 1396d 
note. 
42 USC 1396a 
note. 
42 USC 1395ww 
note. 
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123 STAT. 497 
PUBLIC LAW 111–5—FEB. 17, 2009 
for the State’s FMAP for fiscal year 2010, before the application 
of this section; and 
(3) fiscal year 2011 is less than the FMAP as so determined 
for fiscal year 2008, fiscal year 2009 (after the application 
of paragraph (1)), or fiscal year 2010 (after the application 
of paragraph (2)), the greatest of such FMAP for the State 
for fiscal year 2008, fiscal year 2009, or fiscal year 2010 shall 
be substituted for the State’s FMAP for fiscal year 2011, before 
the application of this section, but only for the first calendar 
quarter in fiscal year 2011. 
(b) GENERAL 6.2 PERCENTAGE POINT INCREASE.— 
(1) IN GENERAL.—Subject to subsections (e), (f), and (g) 
and paragraph (2), for each State for calendar quarters during 
the recession adjustment period (as defined in subsection (h)(3)), 
the FMAP (after the application of subsection (a)) shall be 
increased (without regard to any limitation otherwise specified 
in section 1905(b) of the Social Security Act (42 U.S.C. 
1396d(b))) by 6.2 percentage points. 
(2) SPECIAL ELECTION FOR TERRITORIES.—In the case of 
a State that is not one of the 50 States or the District of 
Columbia, paragraph (1) shall only apply if the State makes 
a one-time election, in a form and manner specified by the 
Secretary and for the entire recession adjustment period, to 
apply the increase in FMAP under paragraph (1) and a 15 
percent increase under subsection (d) instead of applying a 
30 percent increase under subsection (d). 
(c) ADDITIONAL RELIEF BASED
ON INCREASE
IN UNEMPLOY-
MENT.— 
(1) IN GENERAL.—Subject to subsections (e), (f), and (g), 
if a State is a qualifying State under paragraph (2) for a 
calendar quarter occurring during the recession adjustment 
period, the FMAP for the State shall be further increased 
by the number of percentage points equal to the product of— 
(A) the State percentage applicable for the State under 
section 1905(b) of the Social Security Act (42 U.S.C. 
1396d(b)) after the application of subsection (a) and after 
the application of 1⁄2 of the increase under subsection (b); 
and 
(B) the applicable percent determined in paragraph 
(3) for the calendar quarter (or, if greater, for a previous 
such calendar quarter). 
(2) QUALIFYING CRITERIA.— 
(A) IN
GENERAL.—For purposes of paragraph (1), a 
State qualifies for additional relief under this subsection 
for a calendar quarter occurring during the recession 
adjustment period if the State is 1 of the 50 States or 
the District of Columbia and the State satisfies any of 
the following criteria for the quarter: 
(i) The State unemployment increase percentage 
(as defined in paragraph (4)) for the quarter is at 
least 1.5 percentage points but less than 2.5 percentage 
points. 
(ii) The State unemployment increase percentage 
for the quarter is at least 2.5 percentage points but 
less than 3.5 percentage points. 
(iii) The State unemployment increase percentage 
for the quarter is at least 3.5 percentage points. 
Applicability. 
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123 STAT. 498 
PUBLIC LAW 111–5—FEB. 17, 2009 
(B) MAINTENANCE OF STATUS.—If a State qualifies for 
additional relief under this subsection for a calendar 
quarter, it shall be deemed to have qualified for such 
relief for each subsequent calendar quarter ending before 
July 1, 2010. 
(3) APPLICABLE PERCENT.— 
(A) IN GENERAL.—For purposes of paragraph (1), sub-
ject to subparagraph (B), the applicable percent is— 
(i) 5.5 percent, if the State satisfies the criteria 
described in paragraph (2)(A)(i) for the calendar 
quarter; 
(ii) 8.5 percent if the State satisfies the criteria 
described in paragraph (2)(A)(ii) for the calendar 
quarter; and 
(iii) 11.5 percent if the State satisfies the criteria 
described in paragraph (2)(A)(iii) for the calendar 
quarter. 
(B) MAINTENANCE OF HIGHER APPLICABLE PERCENT.— 
(i) HOLD HARMLESS PERIOD.—If the percent applied 
to a State under subparagraph (A) for any calendar 
quarter in the recession adjustment period beginning 
on or after January 1, 2009, and ending before July 
1, 2010, (determined without regard to this subpara-
graph) is less than the percent applied for the pre-
ceding 
quarter 
(as 
so 
determined), 
the 
higher 
applicable percent shall continue in effect for each 
subsequent calendar quarter ending before July 1, 
2010. 
(ii) NOTICE OF LOWER APPLICABLE PERCENT.—The 
Secretary shall notify a State at least 60 days prior 
to applying any lower applicable percent to the State 
under this paragraph. 
(4) COMPUTATION
OF
STATE
UNEMPLOYMENT
INCREASE 
PERCENTAGE.— 
(A) IN
GENERAL.—In this subsection, the ‘‘State 
unemployment increase percentage’’ for a State for a cal-
endar quarter is equal to the number of percentage points 
(if any) by which— 
(i) the average monthly unemployment rate for 
the State for months in the most recent previous 3- 
consecutive-month period for which data are available, 
subject to subparagraph (C); exceeds 
(ii) the lowest average monthly unemployment rate 
for the State for any 3-consecutive-month period pre-
ceding the period described in clause (i) and beginning 
on or after January 1, 2006. 
(B) 
AVERAGE
MONTHLY
UNEMPLOYMENT
RATE 
DEFINED.—In this paragraph, the term ‘‘average monthly 
unemployment rate’’ means the average of the monthly 
number unemployed, divided by the average of the monthly 
civilian labor force, seasonally adjusted, as determined 
based on the most recent monthly publications of the 
Bureau of Labor Statistics of the Department of Labor. 
(C) SPECIAL RULE.—With respect to— 
(i) the first 2 calendar quarters of the recession 
adjustment period, the most recent previous 3-consecu-
tive-month period described in subparagraph (A)(i) 
Deadline. 
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123 STAT. 499 
PUBLIC LAW 111–5—FEB. 17, 2009 
shall be the 3-consecutive-month period beginning with 
October 2008; and 
(ii) the last 2 calendar quarters of the recession 
adjustment period, the most recent previous 3-consecu-
tive-month period described in such subparagraph shall 
be the 3-consecutive-month period beginning with 
December 2009, or, if it results in a higher applicable 
percent under paragraph (3), the 3-consecutive-month 
period beginning with January 2010. 
(d) INCREASE IN CAP ON MEDICAID PAYMENTS TO TERRITORIES.— 
Subject to subsections (f) and (g), with respect to entire fiscal 
years occurring during the recession adjustment period and with 
respect to fiscal years only a portion of which occurs during such 
period (and in proportion to the portion of the fiscal year that 
occurs during such period), the amounts otherwise determined for 
Puerto Rico, the Virgin Islands, Guam, the Northern Mariana 
Islands, and American Samoa under subsections (f) and (g) of sec-
tion 1108 of the Social Security Act (42 6 U.S.C. 1308) shall each 
be increased by 30 percent (or, in the case of an election under 
subsection (b)(2), 15 percent). In the case of such an election by 
a territory, subsection (a)(1) of such section shall be applied without 
regard to any increase in payment made to the territory under 
part E of title IV of such Act that is attributable to the increase 
in FMAP effected under subsection (b) for the territory. 
(e) SCOPE OF APPLICATION.—The increases in the FMAP for 
a State under this section shall apply for purposes of title XIX 
of the Social Security Act and shall not apply with respect to— 
(1) disproportionate share hospital payments described in 
section 1923 of such Act (42 U.S.C. 1396r–4); 
(2) payments under title IV of such Act (42 U.S.C. 601 
et seq.) (except that the increases under subsections (a) and 
(b) shall apply to payments under part E of title IV of such 
Act (42 U.S.C. 670 et seq.) and, for purposes of the application 
of this section to the District of Columbia, payments under 
such part shall be deemed to be made on the basis of the 
FMAP applied with respect to such District for purposes of 
title XIX and as increased under subsection (b)); 
(3) payments under title XXI of such Act (42 U.S.C. 1397aa 
et seq.); 
(4) any payments under title XIX of such Act that are 
based on the enhanced FMAP described in section 2105(b) 
of such Act (42 U.S.C. 1397ee(b)); or 
(5) any payments under title XIX of such Act that are 
attributable to expenditures for medical assistance provided 
to individuals made eligible under a State plan under title 
XIX of the Social Security Act (including under any waiver 
under such title or under section 1115 of such Act (42 U.S.C. 
1315)) because of income standards (expressed as a percentage 
of the poverty line) for eligibility for medical assistance that 
are higher than the income standards (as so expressed) for 
such eligibility as in effect on July 1, 2008, (including as such 
standards were proposed to be in effect under a State law 
enacted but not effective as of such date or a State plan amend-
ment or waiver request under title XIX of such Act that was 
pending approval on such date). 
(f) STATE INELIGIBILITY; LIMITATION; SPECIAL RULES.— 
(1) MAINTENANCE OF ELIGIBILITY REQUIREMENTS.— 
Applicability. 
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123 STAT. 500 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C), a State is not eligible for an increase in its FMAP 
under subsection (a), (b), or (c), or an increase in a cap 
amount under subsection (d), if eligibility standards, meth-
odologies, or procedures under its State plan under title 
XIX of the Social Security Act (including any waiver under 
such title or under section 1115 of such Act (42 U.S.C. 
1315)) are more restrictive than the eligibility standards, 
methodologies, or procedures, respectively, under such plan 
(or waiver) as in effect on July 1, 2008. 
(B) STATE REINSTATEMENT OF ELIGIBILITY PERMITTED.— 
Subject to subparagraph (C), a State that has restricted 
eligibility standards, methodologies, or procedures under 
its State plan under title XIX of the Social Security Act 
(including any waiver under such title or under section 
1115 of such Act (42 U.S.C. 1315)) after July 1, 2008, 
is no longer ineligible under subparagraph (A) beginning 
with the first calendar quarter in which the State has 
reinstated eligibility standards, methodologies, or proce-
dures that are no more restrictive than the eligibility stand-
ards, methodologies, or procedures, respectively, under such 
plan (or waiver) as in effect on July 1, 2008. 
(C) SPECIAL RULES.—A State shall not be ineligible 
under subparagraph (A)— 
(i) for the calendar quarters before July 1, 2009, 
on the basis of a restriction that was applied after 
July 1, 2008, and before the date of the enactment 
of this Act, if the State prior to July 1, 2009, has 
reinstated eligibility standards, methodologies, or 
procedures that are no more restrictive than the eligi-
bility standards, methodologies, or procedures, respec-
tively, under such plan (or waiver) as in effect on 
July 1, 2008; or 
(ii) on the basis of a restriction that was directed 
to be made under State law as in effect on July 1, 
2008, and would have been in effect as of such date, 
but for a delay in the effective date of a waiver under 
section 1115 of such Act with respect to such restric-
tion. 
(2) COMPLIANCE WITH PROMPT PAY REQUIREMENTS.— 
(A) APPLICATION TO PRACTITIONERS.— 
(i) IN GENERAL.—Subject to the succeeding provi-
sions of this subparagraph, no State shall be eligible 
for an increased FMAP rate as provided under this 
section for any claim received by a State from a practi-
tioner subject to the terms of section 1902(a)(37)(A) 
of the Social Security Act (42 U.S.C. 1396a(a)(37)(A)) 
for such days during any period in which that State 
has failed to pay claims in accordance with such section 
as applied under title XIX of such Act. 
(ii) REPORTING
REQUIREMENT.—Each State shall 
report to the Secretary, on a quarterly basis, its compli-
ance with the requirements of clause (i) as such 
requirements pertain to claims made for covered serv-
ices during each month of the preceding quarter. 
(iii) WAIVER
AUTHORITY.—The Secretary may 
waive the application of clause (i) to a State, or the 
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123 STAT. 501 
PUBLIC LAW 111–5—FEB. 17, 2009 
reporting requirement imposed under clause (ii), 
during any period in which there are exigent cir-
cumstances, including natural disasters, that prevent 
the timely processing of claims or the submission of 
such a report. 
(iv) APPLICATION TO CLAIMS.—Clauses (i) and (ii) 
shall only apply to claims made for covered services 
after the date of enactment of this Act. 
(B) APPLICATION
TO
NURSING
FACILITIES
AND
HOS-
PITALS.— 
(i) IN GENERAL.—Subject to clause (ii), the provi-
sions of subparagraph (A) shall apply with respect 
to a nursing facility or hospital, insofar as it is paid 
under title XIX of the Social Security Act on the basis 
of submission of claims, in the same or similar manner 
(but within the same timeframe) as such provisions 
apply to practitioners described in such subparagraph. 
(ii) GRACE PERIOD.—Notwithstanding clause (i), no 
period of ineligibility shall be imposed against a State 
prior to June 1, 2009, on the basis of the State failing 
to pay a claim in accordance with such clause. 
(3) STATE’S APPLICATION TOWARD RAINY DAY FUND.—A State 
is not eligible for an increase in its FMAP under subsection 
(b) or (c), or an increase in a cap amount under subsection 
(d), if any amounts attributable (directly or indirectly) to such 
increase are deposited or credited into any reserve or rainy 
day fund of the State. 
(4) NO WAIVER AUTHORITY.—Except as provided in para-
graph (2)(A)(iii), the Secretary may not waive the application 
of this subsection or subsection (g) under section 1115 of the 
Social Security Act or otherwise. 
(5) LIMITATION OF FMAP TO 100 PERCENT.—In no case shall 
an increase in FMAP under this section result in an FMAP 
that exceeds 100 percent. 
(6) TREATMENT OF CERTAIN EXPENDITURES.—With respect 
to expenditures described in section 2105(a)(1)(B) of the Social 
Security Act (42 U.S.C. 1397ee(a)(1)(B)), as in effect before 
April 1, 2009, that are made during the period beginning on 
October 1, 2008, and ending on March 31, 2009, any additional 
Federal funds that are paid to a State as a result of this 
section that are attributable to such expenditures shall not 
be counted against any allotment under section 2104 of such 
Act (42 U.S.C. 1397dd). 
(g) REQUIREMENTS.— 
(1) STATE REPORTS.—Each State that is paid additional 
Federal funds as a result of this section shall, not later than 
September 30, 2011, submit a report to the Secretary, in such 
form and such manner as the Secretary shall determine, 
regarding how the additional Federal funds were expended. 
(2) ADDITIONAL REQUIREMENT FOR CERTAIN STATES.—In the 
case of a State that requires political subdivisions within the 
State to contribute toward the non-Federal share of expendi-
tures under the State Medicaid plan required under section 
1902(a)(2) of the Social Security Act (42 U.S.C. 1396a(a)(2)), 
the State is not eligible for an increase in its FMAP under 
subsection (b) or (c), or an increase in a cap amount under 
subsection (d), if it requires that such political subdivisions 
Time period. 
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123 STAT. 502 
PUBLIC LAW 111–5—FEB. 17, 2009 
pay for quarters during the recession adjustment period a 
greater percentage of the non-Federal share of such expendi-
tures, or a greater percentage of the non-Federal share of 
payments under section 1923, than the respective percentage 
that would have been required by the State under such plan 
on September 30, 2008, prior to application of this section. 
(h) DEFINITIONS.—In this section, except as otherwise provided: 
(1) FMAP.—The term ‘‘FMAP’’ means the Federal medical 
assistance percentage, as defined in section 1905(b) of the Social 
Security Act (42 U.S.C. 1396d(b)), as determined without regard 
to this section except as otherwise specified. 
(2) POVERTY
LINE.—The term ‘‘poverty line’’ has the 
meaning given such term in section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 9902(2)), including any 
revision required by such section. 
(3) RECESSION ADJUSTMENT PERIOD.—The term ‘‘recession 
adjustment period’’ means the period beginning on October 
1, 2008, and ending on December 31, 2010. 
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Health and Human Services. 
(5) STATE.—The term ‘‘State’’ has the meaning given such 
term in section 1101(a)(1) of the Social Security Act (42 U.S.C. 
1301(a)(1)) for purposes of title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.). 
(i) SUNSET.—This section shall not apply to items and services 
furnished after the end of the recession adjustment period. 
(j) LIMITATION
ON FMAP CHANGE.—The increase in FMAP 
effected under section 614 of the Children’s Health Insurance Pro-
gram Reauthorization Act of 2009 shall not apply in the computation 
of the enhanced FMAP under title XXI or XIX of the Social Security 
Act for any period (notwithstanding subsection (i)). 
SEC. 5002. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING 
RECESSION. 
Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r– 
4(f)(3)) is amended— 
(1) in subparagraph (A), by striking ‘‘paragraph (6)’’ and 
inserting ‘‘paragraph (6) and subparagraph (E)’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(E) TEMPORARY
INCREASE
IN
ALLOTMENTS
DURING 
RECESSION.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the DSH 
allotment for any State— 
‘‘(I) for fiscal year 2009 is equal to 102.5 per-
cent of the DSH allotment that would be deter-
mined under this paragraph for the State for fiscal 
year 2009 without application of this subpara-
graph, notwithstanding subparagraphs (B) and (C); 
‘‘(II) for fiscal year 2010 is equal to 102.5 
percent of the DSH allotment for the State for 
fiscal year 2009, as determined under subclause 
(I); and 
‘‘(III) for each succeeding fiscal year is equal 
to the DSH allotment for the State under this 
paragraph determined without applying sub-
clauses (I) and (II). 
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123 STAT. 503 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(ii) APPLICATION.—Clause (i) shall not apply to 
a State for a year in the case that the DSH allotment 
for such State for such year under this paragraph 
determined without applying clause (i) would grow 
higher than the DSH allotment specified under clause 
(i) for the State for such year.’’. 
SEC. 5003. EXTENSION OF MORATORIA ON CERTAIN MEDICAID FINAL 
REGULATIONS. 
(a) FINAL REGULATIONS RELATING TO OPTIONAL CASE MANAGE-
MENT
SERVICES
AND
ALLOWABLE
PROVIDER
TAXES.—Section 
7001(a)(3)(A) of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252) is amended by striking ‘‘April 1, 2009’’ and inserting 
‘‘July 1, 2009’’. 
(b) FINAL REGULATION RELATING TO SCHOOL-BASED ADMINIS-
TRATION AND SCHOOL-BASED TRANSPORTATION.—Section 206 of the 
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
Law 110–173), as amended by section 7001(a)(2) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252), is amended 
by inserting ‘‘(July 1, 2009, in the case of the final regulation 
relating to school-based administration and school-based transpor-
tation)’’ after ‘‘April 1, 2009,’’. 
(c) FINAL REGULATION RELATING
TO OUTPATIENT HOSPITAL 
FACILITY SERVICES.—Notwithstanding any other provision of law, 
with respect to expenditures for services furnished during the period 
beginning on December 8, 2008, and ending on June 30, 2009, 
the Secretary of Health and Human Services shall not take any 
action (through promulgation of regulation, issuance of regulatory 
guidance, use of Federal payment audit procedures, or other 
administrative action, policy, or practice, including a Medical Assist-
ance Manual transmittal or letter to State Medicaid directors) to 
implement the final regulation relating to clarification of the defini-
tion of outpatient hospital facility services under the Medicaid 
program published on November 7, 2008 (73 Federal Register 
66187). 
(d) SENSE
OF CONGRESS.—It is the sense of Congress that 
the Secretary of Health and Human Services should not promulgate 
as final regulations any of the following proposed Medicaid regula-
tions: 
(1) COST LIMITS FOR CERTAIN PROVIDERS.—The proposed 
regulation published on January 18, 2007, (72 Federal Register 
2236) (and the purported final regulation published on May 
29, 2007 (72 Federal Register 29748) and determined by the 
United States District Court for the District of Columbia to 
have been ‘‘improperly promulgated’’, Alameda County Medical 
Center, et al., v. Leavitt, et al., Civil Action No. 08-0422, Mem. 
at 4 (D.D.C. May 23, 2008)). 
(2) PAYMENTS FOR GRADUATE MEDICAL EDUCATION.—The 
proposed regulation published on May 23, 2007 (72 Federal 
Register 28930). 
(3) REHABILITATIVE
SERVICES.—The proposed regulation 
published on August 13, 2007 (72 Federal Register 45201). 
SEC. 5004. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA). 
(a) 18-MONTH EXTENSION.— 
(1) IN GENERAL.—Sections 1902(e)(1)(B) and 1925(f) of the 
Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are 
Time period. 
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123 STAT. 504 
PUBLIC LAW 111–5—FEB. 17, 2009 
each amended by striking ‘‘September 30, 2003’’ and inserting 
‘‘December 31, 2010’’. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on July 1, 2009. 
(b) STATE OPTION OF INITIAL 12-MONTH ELIGIBILITY.—Section 
1925 of the Social Security Act (42 U.S.C. 1396r–6) is amended— 
(1) in subsection (a)(1), by inserting ‘‘but subject to para-
graph (5)’’ after ‘‘Notwithstanding any other provision of this 
title’’; 
(2) by adding at the end of subsection (a) the following: 
‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY PERIOD.—A 
State may elect to treat any reference in this subsection to 
a 6-month period (or 6 months) as a reference to a 12-month 
period (or 12 months). In the case of such an election, subsection 
(b) shall not apply.’’; and 
(3) in subsection (b)(1), by inserting ‘‘but subject to sub-
section (a)(5)’’ after ‘‘Notwithstanding any other provision of 
this title’’. 
(c) REMOVAL OF REQUIREMENT FOR PREVIOUS RECEIPT OF MED-
ICAL ASSISTANCE.—Section 1925(a)(1) of such Act (42 U.S.C. 1396r– 
6(a)(1)), as amended by subsection (b)(1), is further amended— 
(1) by inserting ‘‘subparagraph (B) and’’ before ‘‘paragraph 
(5)’’; 
(2) by redesignating the matter after ‘‘REQUIREMENT.—’’ 
as a subparagraph (A) with the heading ‘‘IN GENERAL.—’’ and 
with the same indentation as subparagraph (B) (as added by 
paragraph (3)); and 
(3) by adding at the end the following: 
‘‘(B) STATE
OPTION
TO
WAIVE
REQUIREMENT
FOR
3 
MONTHS BEFORE RECEIPT OF MEDICAL ASSISTANCE.—A State 
may, at its option, elect also to apply subparagraph (A) 
in the case of a family that was receiving such aid for 
fewer than three months or that had applied for and was 
eligible for such aid for fewer than 3 months during the 
6 immediately preceding months described in such subpara-
graph.’’. 
(d) CMS REPORT ON ENROLLMENT AND PARTICIPATION RATES 
UNDER TMA.—Section 1925 of such Act (42 U.S.C. 1396r–6), as 
amended by this section, is further amended by adding at the 
end the following new subsection: 
‘‘(g) COLLECTION AND REPORTING OF PARTICIPATION INFORMA-
TION.— 
‘‘(1) COLLECTION
OF
INFORMATION
FROM
STATES.—Each 
State shall collect and submit to the Secretary (and make 
publicly available), in a format specified by the Secretary, 
information on average monthly enrollment and average 
monthly participation rates for adults and children under this 
section and of the number and percentage of children who 
become ineligible for medical assistance under this section 
whose medical assistance is continued under another eligibility 
category or who are enrolled under the State’s child health 
plan under title XXI. Such information shall be submitted 
at the same time and frequency in which other enrollment 
information under this title is submitted to the Secretary. 
‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using the information 
submitted under paragraph (1), the Secretary shall submit 
42 USC 1396a 
note. 
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123 STAT. 505 
PUBLIC LAW 111–5—FEB. 17, 2009 
to Congress annual reports concerning enrollment and partici-
pation rates described in such paragraph.’’. 
(e) EFFECTIVE DATE.—The amendments made by subsections 
(b) through (d) shall take effect on July 1, 2009. 
SEC. 5005. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PRO-
GRAM. 
(a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking 
‘‘December 2009’’ and inserting ‘‘December 2010’’. 
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR ALLOCATION.— 
Section 1933(g) of such Act (42 U.S.C. 1396u–3(g)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘and’’ at the end of subparagraph (K); 
(B) in subparagraph (L), by striking the period at the 
end and inserting a semicolon; and 
(C) by adding at the end the following new subpara-
graphs: 
‘‘(M) for the period that begins on January 1, 2010, 
and ends on September 30, 2010, the total allocation 
amount is $412,500,000; and 
‘‘(N) for the period that begins on October 1, 2010, 
and ends on December 31, 2010, the total allocation amount 
is $150,000,000.’’; and 
(2) in paragraph (3), in the matter preceding subparagraph 
(A), by striking ‘‘or (L)’’ and inserting ‘‘(L), or (N)’’. 
SEC. 5006. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP. 
(a) PREMIUMS AND COST SHARING PROTECTION UNDER MED-
ICAID.— 
(1) IN GENERAL.—Section 1916 of the Social Security Act 
(42 U.S.C. 1396o) is amended— 
(A) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘and (i)’’ and inserting ‘‘, (i), and (j)’’; and 
(B) by adding at the end the following new subsection: 
‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS FURNISHED 
ITEMS OR SERVICES DIRECTLY BY INDIAN HEALTH PROGRAMS OR 
THROUGH REFERRAL UNDER CONTRACT HEALTH SERVICES.— 
‘‘(1) NO COST SHARING FOR ITEMS OR SERVICES FURNISHED 
TO INDIANS THROUGH INDIAN HEALTH PROGRAMS.— 
‘‘(A) IN
GENERAL.—No enrollment fee, premium, or 
similar charge, and no deduction, copayment, cost sharing, 
or similar charge shall be imposed against an Indian who 
is furnished an item or service directly by the Indian Health 
Service, an Indian Tribe, Tribal Organization, or Urban 
Indian Organization or through referral under contract 
health services for which payment may be made under 
this title. 
‘‘(B) NO REDUCTION IN AMOUNT OF PAYMENT TO INDIAN 
HEALTH PROVIDERS.—Payment due under this title to the 
Indian Health Service, an Indian Tribe, Tribal Organiza-
tion, or Urban Indian Organization, or a health care pro-
vider through referral under contract health services for 
the furnishing of an item or service to an Indian who 
is eligible for assistance under such title, may not be 
reduced by the amount of any enrollment fee, premium, 
or similar charge, or any deduction, copayment, cost 
Time period. 
Time period. 
42 USC 1396r–6 
note. 
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123 STAT. 506 
PUBLIC LAW 111–5—FEB. 17, 2009 
sharing, or similar charge that would be due from the 
Indian but for the operation of subparagraph (A). 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed as restricting the application of any other 
limitations on the imposition of premiums or cost sharing that 
may apply to an individual receiving medical assistance under 
this title who is an Indian.’’. 
(2) CONFORMING AMENDMENT.—Section 1916A(b)(3) of such 
Act (42 U.S.C. 1396o–1(b)(3)) is amended— 
(A) in subparagraph (A), by adding at the end the 
following new clause: 
‘‘(vii) An Indian who is furnished an item or service 
directly by the Indian Health Service, an Indian Tribe, 
Tribal Organization or Urban Indian Organization or 
through referral under contract health services.’’; and 
(B) in subparagraph (B), by adding at the end the 
following new clause: 
‘‘(x) Items and services furnished to an Indian 
directly by the Indian Health Service, an Indian Tribe, 
Tribal Organization or Urban Indian Organization or 
through referral under contract health services.’’. 
(b) TREATMENT OF CERTAIN PROPERTY FROM RESOURCES FOR 
MEDICAID AND CHIP ELIGIBILITY.— 
(1) MEDICAID.—Section 1902 of the Social Security Act 
(42 U.S.C. 1396a), as amended by sections 203(c) and 
211(a)(1)(A)(ii) of the Children’s Health Insurance Program 
Reauthorization Act of 2009 (Public Law 111–3), is amended 
by adding at the end the following new subsection: 
‘‘(ff) Notwithstanding any other requirement of this title or 
any other provision of Federal or State law, a State shall disregard 
the following property from resources for purposes of determining 
the eligibility of an individual who is an Indian for medical assist-
ance under this title: 
‘‘(1) Property, including real property and improvements, 
that is held in trust, subject to Federal restrictions, or otherwise 
under the supervision of the Secretary of the Interior, located 
on a reservation, including any federally recognized Indian 
Tribe’s reservation, pueblo, or colony, including former reserva-
tions in Oklahoma, Alaska Native regions established by the 
Alaska Native Claims Settlement Act, and Indian allotments 
on or near a reservation as designated and approved by the 
Bureau of Indian Affairs of the Department of the Interior. 
‘‘(2) For any federally recognized Tribe not described in 
paragraph (1), property located within the most recent bound-
aries of a prior Federal reservation. 
‘‘(3) Ownership interests in rents, leases, royalties, or usage 
rights related to natural resources (including extraction of nat-
ural resources or harvesting of timber, other plants and plant 
products, animals, fish, and shellfish) resulting from the exer-
cise of federally protected rights. 
‘‘(4) Ownership interests in or usage rights to items not 
covered by paragraphs (1) through (3) that have unique reli-
gious, spiritual, traditional, or cultural significance or rights 
that support subsistence or a traditional lifestyle according 
to applicable tribal law or custom.’’. 
(2) APPLICATION TO CHIP.—Section 2107(e)(1) of such Act 
(42 U.S.C. 1397gg(e)(1)), as amended by sections 203(a)(2), 
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123 STAT. 507 
PUBLIC LAW 111–5—FEB. 17, 2009 
203(d)(2), 214(b), 501(d)(2), and 503(a)(1) of the Children’s 
Health Insurance Program Reauthorization Act of 2009 (Public 
Law 111–3), is amended— 
(A) by redesignating subparagraphs (C) through (I), 
as subparagraphs (D) through (J), respectively; and 
(B) by inserting after subparagraph (B), the following 
new subparagraph: 
‘‘(C) Section 1902(ff) (relating to disregard of certain 
property for purposes of making eligibility determina-
tions).’’. 
(c) CONTINUATION OF CURRENT LAW PROTECTIONS OF CERTAIN 
INDIAN PROPERTY FROM MEDICAID ESTATE RECOVERY.—Section 
1917(b)(3) of the Social Security Act (42 U.S.C. 1396p(b)(3)) is 
amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) The standards specified by the Secretary under 
subparagraph (A) shall require that the procedures estab-
lished by the State agency under subparagraph (A) exempt 
income, resources, and property that are exempt from the 
application of this subsection as of April 1, 2003, under 
manual instructions issued to carry out this subsection 
(as in effect on such date) because of the Federal responsi-
bility for Indian Tribes and Alaska Native Villages. Nothing 
in this subparagraph shall be construed as preventing the 
Secretary from providing additional estate recovery exemp-
tions under this title for Indians.’’. 
(d) RULES APPLICABLE UNDER MEDICAID AND CHIP TO MANAGED 
CARE ENTITIES WITH RESPECT TO INDIAN ENROLLEES AND INDIAN 
HEALTH CARE PROVIDERS AND INDIAN MANAGED CARE ENTITIES.— 
(1) IN GENERAL.—Section 1932 of the Social Security Act 
(42 U.S.C. 1396u–2) is amended by adding at the end the 
following new subsection: 
‘‘(h) SPECIAL RULES WITH RESPECT
TO INDIAN ENROLLEES, 
INDIAN HEALTH CARE PROVIDERS, AND INDIAN MANAGED CARE ENTI-
TIES.— 
‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN HEALTH CARE 
PROVIDER AS PRIMARY CARE PROVIDER.—In the case of a non- 
Indian Medicaid managed care entity that— 
‘‘(A) has an Indian enrolled with the entity; and 
‘‘(B) has an Indian health care provider that is partici-
pating as a primary care provider within the network of 
the entity, 
insofar as the Indian is otherwise eligible to receive services 
from such Indian health care provider and the Indian health 
care provider has the capacity to provide primary care services 
to such Indian, the contract with the entity under section 
1903(m) or under section 1905(t)(3) shall require, as a condition 
of receiving payment under such contract, that the Indian 
shall be allowed to choose such Indian health care provider 
as the Indian’s primary care provider under the entity. 
‘‘(2) ASSURANCE OF PAYMENT TO INDIAN HEALTH CARE PRO-
VIDERS FOR PROVISION OF COVERED SERVICES.—Each contract 
with a managed care entity under section 1903(m) or under 
section 1905(t)(3) shall require any such entity, as a condition 
of receiving payment under such contract, to satisfy the fol-
lowing requirements: 
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123 STAT. 508 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘(A) DEMONSTRATION
OF
ACCESS
TO
INDIAN
HEALTH 
CARE PROVIDERS AND APPLICATION OF ALTERNATIVE PAY-
MENT ARRANGEMENTS.—Subject to subparagraph (C), to— 
‘‘(i) demonstrate that the number of Indian health 
care providers that are participating providers with 
respect to such entity are sufficient to ensure timely 
access to covered Medicaid managed care services for 
those Indian enrollees who are eligible to receive serv-
ices from such providers; and 
‘‘(ii) agree to pay Indian health care providers, 
whether such providers are participating or nonpartici-
pating providers with respect to the entity, for covered 
Medicaid managed care services provided to those 
Indian enrollees who are eligible to receive services 
from such providers at a rate equal to the rate nego-
tiated between such entity and the provider involved 
or, if such a rate has not been negotiated, at a rate 
that is not less than the level and amount of payment 
which the entity would make for the services if the 
services were furnished by a participating provider 
which is not an Indian health care provider. 
The Secretary shall establish procedures for applying the 
requirements of clause (i) in States where there are no 
or few Indian health providers. 
‘‘(B) PROMPT PAYMENT.—To agree to make prompt pay-
ment (consistent with rule for prompt payment of providers 
under section 1932(f)) to Indian health care providers that 
are participating providers with respect to such entity or, 
in the case of an entity to which subparagraph (A)(ii) 
or (C) applies, that the entity is required to pay in accord-
ance with that subparagraph. 
‘‘(C) APPLICATION OF SPECIAL PAYMENT REQUIREMENTS 
FOR FEDERALLY-QUALIFIED HEALTH CENTERS AND FOR SERV-
ICES
PROVIDED
BY
CERTAIN
INDIAN
HEALTH
CARE
PRO-
VIDERS.— 
‘‘(i) FEDERALLY-QUALIFIED HEALTH CENTERS.— 
‘‘(I) MANAGED CARE ENTITY PAYMENT REQUIRE-
MENT.—To agree to pay any Indian health care 
provider that is a federally-qualified health center 
under this title but not a participating provider 
with respect to the entity, for the provision of 
covered Medicaid managed care services by such 
provider to an Indian enrollee of the entity at 
a rate equal to the amount of payment that the 
entity would pay a federally-qualified health center 
that is a participating provider with respect to 
the entity but is not an Indian health care provider 
for such services. 
‘‘(II) 
CONTINUED
APPLICATION
OF
STATE 
REQUIREMENT TO MAKE SUPPLEMENTAL PAYMENT.— 
Nothing in subclause (I) or subparagraph (A) or 
(B) shall be construed as waiving the application 
of section 1902(bb)(5) regarding the State plan 
requirement to make any supplemental payment 
due under such section to a federally-qualified 
health center for services furnished by such center 
to an enrollee of a managed care entity (regardless 
Procedures. 
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123 STAT. 509 
PUBLIC LAW 111–5—FEB. 17, 2009 
of whether the federally-qualified health center 
is or is not a participating provider with the 
entity). 
‘‘(ii) PAYMENT
RATE
FOR
SERVICES
PROVIDED
BY 
CERTAIN
INDIAN
HEALTH
CARE
PROVIDERS.—If the 
amount paid by a managed care entity to an Indian 
health care provider that is not a federally-qualified 
health center for services provided by the provider 
to an Indian enrollee with the managed care entity 
is less than the rate that applies to the provision 
of such services by the provider under the State plan, 
the plan shall provide for payment to the Indian health 
care provider, whether the provider is a participating 
or nonparticipating provider with respect to the entity, 
of the difference between such applicable rate and 
the amount paid by the managed care entity to the 
provider for such services. 
‘‘(D) CONSTRUCTION.—Nothing in this paragraph shall 
be construed as waiving the application of section 
1902(a)(30)(A) (relating to application of standards to 
assure that payments are consistent with efficiency, 
economy, and quality of care). 
‘‘(3) SPECIAL RULE FOR ENROLLMENT FOR INDIAN MANAGED 
CARE ENTITIES.—Regarding the application of a Medicaid man-
aged care program to Indian Medicaid managed care entities, 
an Indian Medicaid managed care entity may restrict enroll-
ment under such program to Indians in the same manner 
as Indian Health Programs may restrict the delivery of services 
to Indians. 
‘‘(4) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) INDIAN HEALTH CARE PROVIDER.—The term ‘Indian 
health care provider’ means an Indian Health Program 
or an Urban Indian Organization. 
‘‘(B) INDIAN
MEDICAID
MANAGED
CARE
ENTITY.—The 
term ‘Indian Medicaid managed care entity’ means a man-
aged care entity that is controlled (within the meaning 
of the last sentence of section 1903(m)(1)(C)) by the Indian 
Health Service, a Tribe, Tribal Organization, or Urban 
Indian Organization, or a consortium, which may be com-
posed of 1 or more Tribes, Tribal Organizations, or Urban 
Indian Organizations, and which also may include the 
Service. 
‘‘(C) NON-INDIAN MEDICAID MANAGED CARE ENTITY.— 
The term ‘non-Indian Medicaid managed care entity’ means 
a managed care entity that is not an Indian Medicaid 
managed care entity. 
‘‘(D) COVERED MEDICAID MANAGED CARE SERVICES.— 
The term ‘covered Medicaid managed care services’ means, 
with respect to an individual enrolled with a managed 
care entity, items and services for which benefits are avail-
able with respect to the individual under the contract 
between the entity and the State involved. 
‘‘(E) MEDICAID
MANAGED
CARE
PROGRAM.—The term 
‘Medicaid managed care program’ means a program under 
sections 1903(m), 1905(t), and 1932 and includes a man-
aged care program operating under a waiver under section 
1915(b) or 1115 or otherwise.’’. 
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123 STAT. 510 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) APPLICATION TO CHIP.—Section 2107(e)(1) of such Act 
(42 U.S.C. 1397gg(1)), as amended by subsection (b)(2), is 
amended— 
(A) by redesignating subparagraph (J) as subparagraph 
(K); and 
(B) by inserting after subparagraph (I) the following 
new subparagraph: 
‘‘(J) Subsections (a)(2)(C) and (h) of section 1932.’’. 
(e) CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH 
CARE
PROGRAMS
FUNDED
UNDER
THE
SOCIAL
SECURITY
ACT 
INVOLVING
INDIAN
HEALTH
PROGRAMS
AND
URBAN
INDIAN 
ORGANIZATIONS.— 
(1) CONSULTATION WITH TRIBAL TECHNICAL ADVISORY GROUP 
(TTAG).—The Secretary of Health and Human Services shall 
maintain within the Centers for Medicaid & Medicare Services 
(CMS) a Tribal Technical Advisory Group (TTAG), which was 
first established in accordance with requirements of the charter 
dated September 30, 2003, and the Secretary of Health and 
Human Services shall include in such Group a representative 
of a national urban Indian health organization and a represent-
ative of the Indian Health Service. The inclusion of a represent-
ative of a national urban Indian health organization in such 
Group shall not affect the nonapplication of the Federal 
Advisory Committee Act (5 U.S.C. App.) to such Group. 
(2) SOLICITATION OF ADVICE UNDER MEDICAID AND CHIP.— 
(A) 
MEDICAID
STATE
PLAN
AMENDMENT.—Section 
1902(a) of the Social Security Act (42 U.S.C. 1396a(a)), 
as amended by section 501(d)(1) of the Children’s Health 
Insurance Program Reauthorization Act of 2009 (Public 
Law 111–3), (42 U.S.C. 1396a(a)) is amended— 
(i) in paragraph (71), by striking ‘‘and’’ at the 
end; 
(ii) in paragraph (72), by striking the period at 
the end and inserting ‘‘; and’’; and 
(iii) by inserting after paragraph (72), the following 
new paragraph: 
‘‘(73) in the case of any State in which 1 or more Indian 
Health Programs or Urban Indian Organizations furnishes 
health care services, provide for a process under which the 
State seeks advice on a regular, ongoing basis from designees 
of such Indian Health Programs and Urban Indian Organiza-
tions on matters relating to the application of this title that 
are likely to have a direct effect on such Indian Health Pro-
grams and Urban Indian Organizations and that— 
‘‘(A) shall include solicitation of advice prior to submis-
sion of any plan amendments, waiver requests, and pro-
posals for demonstration projects likely to have a direct 
effect on Indians, Indian Health Programs, or Urban Indian 
Organizations; and 
‘‘(B) may include appointment of an advisory committee 
and of a designee of such Indian Health Programs and 
Urban Indian Organizations to the medical care advisory 
committee advising the State on its State plan under this 
title.’’. 
(B) APPLICATION TO CHIP.—Section 2107(e)(1) of such 
Act (42 U.S.C. 1397gg(1)), as amended by subsections (b)(2) 
and (d) (2), is amended— 
Establishment. 
42 USC 
1320b–24. 
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123 STAT. 511 
PUBLIC LAW 111–5—FEB. 17, 2009 
(i) by redesignating subparagraphs (B), (C), (D), 
(E), (F), (G), (H), (I), (J), and (K) as subparagraphs 
(D), (F), (B), (E), (G), (I), (H), (J), (K), and (L), respec-
tively; 
(ii) by moving such subparagraphs so as to appear 
in alphabetical order; and 
(iii) by inserting after subparagraph (B) (as so 
redesiganted and moved) the following new subpara-
graph: 
‘‘(C) Section 1902(a)(73) (relating to requiring certain 
States to seek advice from designees of Indian Health 
Programs and Urban Indian Organizations).’’. 
(3) RULE OF CONSTRUCTION.—Nothing in the amendments 
made by this subsection shall be construed as superseding 
existing advisory committees, working groups, guidance, or 
other advisory procedures established by the Secretary of 
Health and Human Services or by any State with respect 
to the provision of health care to Indians. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on July 1, 2009. 
SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION. 
(a) OVERSIGHT.—For purposes of ensuring the proper expendi-
ture of Federal funds under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.), there is appropriated to the Office of 
the Inspector General of the Department of Health and Human 
Services, out of any money in the Treasury not otherwise appro-
priated and without further appropriation, $31,250,000 for fiscal 
year 2009, which shall remain available for expenditure until Sep-
tember 30, 2011, and shall be in addition to any other amounts 
appropriated or made available to such Office for such purposes. 
(b) IMPLEMENTATION OF INCREASED FMAP.—For purposes of 
carrying out section 5001, there is appropriated to the Secretary 
of Health and Human Services, out of any money in the Treasury 
not otherwise appropriated and without further appropriation, 
$5,000,000 for fiscal year 2009, which shall remain available for 
expenditure until September 30, 2011, and shall be in addition 
to any other amounts appropriated or made available to such Sec-
retary for such purposes. 
SEC. 5008. GAO STUDY AND REPORT REGARDING STATE NEEDS 
DURING PERIODS OF NATIONAL ECONOMIC DOWNTURN. 
(a) IN GENERAL.—The Comptroller General of the United States 
shall study the period of national economic downturn in effect 
on the date of enactment of this Act, as well as previous periods 
of national economic downturn since 1974, for the purpose of devel-
oping recommendations for addressing the needs of States during 
such periods. As part of such analysis, the Comptroller General 
shall study the past and projected effects of temporary increases 
in the Federal medical assistance percentage under the Medicaid 
program with respect to such periods. 
(b) REPORT.—Not later than April 1, 2011, the Comptroller 
General of the United States shall submit a report to the appro-
priate committees of Congress on the results of the study conducted 
under paragraph (1). Such report shall include the following: 
(1) Such recommendations as the Comptroller General 
determines appropriate for modifying the national economic 
downturn assistance formula for temporary adjustment of the 
42 USC 1396a 
note. 
42 USC 1396a 
note. 
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123 STAT. 512 
PUBLIC LAW 111–5—FEB. 17, 2009 
Federal medical assistance percentage under Medicaid (also 
referred to as a ‘‘countercyclical FMAP’’) described in GAO 
report number GAO–07–97 to improve the effectiveness of the 
application of such percentage in addressing the needs of States 
during periods of national economic downturn, including rec-
ommendations for— 
(A) improvements to the factors that would begin and 
end the application of such percentage; 
(B) how the determination of the amount of such 
percentage could be adjusted to address State and regional 
economic variations during such periods; and 
(C) how the determination of the amount of such 
percentage could be adjusted to be more responsive to 
actual Medicaid costs incurred by States during such 
periods. 
(2) An analysis of the impact on States during such periods 
of— 
(A) declines in private health benefits coverage; 
(B) declines in State revenues; and 
(C) caseload maintenance and growth under Medicaid, 
the Children’s Health Insurance Program, or any other 
publicly-funded programs to provide health benefits cov-
erage for State residents. 
(3) Identification of, and recommendations for addressing, 
the effects on States of any other specific economic indicators 
that the Comptroller General determines appropriate. 
TITLE VI—BROADBAND TECHNOLOGY 
OPPORTUNITIES PROGRAM 
SEC. 6000. TABLE OF CONTENTS. 
The table of contents of this title is as follows: 
TITLE VI—BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM 
Sec. 6000. Table of contents. 
Sec. 6001. Broadband Technology Opportunities Program. 
SEC. 6001. BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM. 
(a) The Assistant Secretary of Commerce for Communications 
and Information (Assistant Secretary), in consultation with the 
Federal Communications Commission (Commission), shall establish 
a national broadband service development and expansion program 
in conjunction with the technology opportunities program, which 
shall be referred to as the Broadband Technology Opportunities 
Program. The Assistant Secretary shall ensure that the program 
complements and enhances and does not conflict with other Federal 
broadband initiatives and programs. 
(b) The purposes of the program are to— 
(1) provide access to broadband service to consumers 
residing in unserved areas of the United States; 
(2) provide improved access to broadband service to con-
sumers residing in underserved areas of the United States; 
(3) provide broadband education, awareness, training, 
access, equipment, and support to— 
(A) schools, libraries, medical and healthcare providers, 
community colleges and other institutions of higher edu-
cation, and other community support organizations and 
47 USC 1305. 
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123 STAT. 513 
PUBLIC LAW 111–5—FEB. 17, 2009 
entities to facilitate greater use of broadband service by 
or through these organizations; 
(B) organizations and agencies that provide outreach, 
access, equipment, and support services to facilitate greater 
use of broadband service by low-income, unemployed, aged, 
and otherwise vulnerable populations; and 
(C) job-creating strategic facilities located within a 
State-designated economic zone, Economic Development 
District designated by the Department of Commerce, 
Renewal Community or Empowerment Zone designated by 
the Department of Housing and Urban Development, or 
Enterprise Community designated by the Department of 
Agriculture; 
(4) improve access to, and use of, broadband service by 
public safety agencies; and 
(5) stimulate the demand for broadband, economic growth, 
and job creation. 
(c) The Assistant Secretary may consult a State, the District 
of Columbia, or territory or possession of the United States with 
respect to— 
(1) the identification of areas described in subsection (b)(1) 
or (2) located in that State; and 
(2) the allocation of grant funds within that State for 
projects in or affecting the State. 
(d) The Assistant Secretary shall— 
(1) establish and implement the grant program as expedi-
tiously as practicable; 
(2) ensure that all awards are made before the end of 
fiscal year 2010; 
(3) seek such assurances as may be necessary or appro-
priate from grantees under the program that they will substan-
tially complete projects supported by the program in accordance 
with project timelines, not to exceed 2 years following an award; 
and 
(4) report on the status of the program to the Committees 
on Appropriations of the House of Representatives and the 
Senate, the Committee on Energy and Commerce of the House 
of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate, every 90 days. 
(e) To be eligible for a grant under the program, an applicant 
shall— 
(1)(A) be a State or political subdivision thereof, the District 
of Columbia, a territory or possession of the United States, 
an Indian tribe (as defined in section 4 of the Indian Self- 
Determination and Education Assistance Act (25 U.S.C. 450(b)) 
or native Hawaiian organization; 
(B) a nonprofit— 
(i) foundation, 
(ii) corporation, 
(iii) institution, or 
(iv) association; or 
(C) any other entity, including a broadband service 
or infrastructure provider, that the Assistant Secretary 
finds by rule to be in the public interest. In establishing 
such rule, the Assistant Secretary shall to the extent prac-
ticable promote the purposes of this section in a techno-
logically neutral manner; 
Reports. 
Deadlines. 
Deadline. 
Grants. 
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123 STAT. 514 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) submit an application, at such time, in such form, 
and containing such information as the Assistant Secretary 
may require; 
(3) provide a detailed explanation of how any amount 
received under the program will be used to carry out the 
purposes of this section in an efficient and expeditious manner, 
including a showing that the project would not have been 
implemented during the grant period without Federal grant 
assistance; 
(4) demonstrate, to the satisfaction of the Assistant Sec-
retary, that it is capable of carrying out the project or function 
to which the application relates in a competent manner in 
compliance with all applicable Federal, State, and local laws; 
(5) demonstrate, to the satisfaction of the Assistant Sec-
retary, that it will appropriate (if the applicant is a State 
or local government agency) or otherwise unconditionally obli-
gate, from non-Federal sources, funds required to meet the 
requirements of subsection (f); 
(6) disclose to the Assistant Secretary the source and 
amount of other Federal or State funding sources from which 
the applicant receives, or has applied for, funding for activities 
or projects to which the application relates; and 
(7) provide such assurances and procedures as the Assistant 
Secretary may require to ensure that grant funds are used 
and accounted for in an appropriate manner. 
(f) The Federal share of any project may not exceed 80 percent, 
except that the Assistant Secretary may increase the Federal share 
of a project above 80 percent if— 
(1) the applicant petitions the Assistant Secretary for a 
waiver; and 
(2) the Assistant Secretary determines that the petition 
demonstrates financial need. 
(g) The Assistant Secretary may make competitive grants under 
the program to— 
(1) acquire equipment, instrumentation, networking capa-
bility, hardware and software, digital network technology, and 
infrastructure for broadband services; 
(2) construct and deploy broadband service related infra-
structure; 
(3) ensure access to broadband service by community 
anchor institutions; 
(4) facilitate access to broadband service by low-income, 
unemployed, aged, and otherwise vulnerable populations in 
order to provide educational and employment opportunities to 
members of such populations; 
(5) construct and deploy broadband facilities that improve 
public safety broadband communications services; and 
(6) undertake such other projects and activities as the 
Assistant Secretary finds to be consistent with the purposes 
for which the program is established. 
(h) The Assistant Secretary, in awarding grants under this 
section, shall, to the extent practical— 
(1) award not less than 1 grant in each State; 
(2) consider whether an application to deploy infrastructure 
in an area— 
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123 STAT. 515 
PUBLIC LAW 111–5—FEB. 17, 2009 
(A) will, if approved, increase the affordability of, and 
subscribership to, service to the greatest population of users 
in the area; 
(B) will, if approved, provide the greatest broadband 
speed possible to the greatest population of users in the 
area; 
(C) will, if approved, enhance service for health care 
delivery, education, or children to the greatest population 
of users in the area; and 
(D) will, if approved, not result in unjust enrichment 
as a result of support for non-recurring costs through 
another Federal program for service in the area; and 
(3) consider whether the applicant is a socially and 
economically disadvantaged small business concern as defined 
under section 8(a) of the Small Business Act (15 U.S.C. 637). 
(i) The Assistant Secretary— 
(1) shall require any entity receiving a grant pursuant 
to this section to report quarterly, in a format specified by 
the Assistant Secretary, on such entity’s use of the assistance 
and progress fulfilling the objectives for which such funds were 
granted, and the Assistant Secretary shall make these reports 
available to the public; 
(2) may establish additional reporting and information 
requirements for any recipient of any assistance made available 
pursuant to this section; 
(3) shall establish appropriate mechanisms to ensure appro-
priate use and compliance with all terms of any use of funds 
made available pursuant to this section; 
(4) may, in addition to other authority under applicable 
law, deobligate awards to grantees that demonstrate an insuffi-
cient level of performance, or wasteful or fraudulent spending, 
as defined in advance by the Assistant Secretary, and award 
these funds competitively to new or existing applicants con-
sistent with this section; and 
(5) shall create and maintain a fully searchable database, 
accessible on the Internet at no cost to the public, that contains 
at least a list of each entity that has applied for a grant 
under this section, a description of each application, the status 
of each such application, the name of each entity receiving 
funds made available pursuant to this section, the purpose 
for which such entity is receiving such funds, each quarterly 
report submitted by the entity pursuant to this section, and 
such other information sufficient to allow the public to under-
stand and monitor grants awarded under the program. 
(j) Concurrent with the issuance of the Request for Proposal 
for grant applications pursuant to this section, the Assistant Sec-
retary shall, in coordination with the Commission, publish the 
non-discrimination and network interconnection obligations that 
shall be contractual conditions of grants awarded under this section, 
including, at a minimum, adherence to the principles contained 
in the Commission’s broadband policy statement (FCC 05-15, 
adopted August 5, 2005). 
(k)(1) Not later than 1 year after the date of enactment of 
this section, the Commission shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate, a report containing a national broadband plan. 
Deadline. 
Reports. 
Broadband plan. 
Publication. 
Database. 
Web site. 
Records. 
Reports. 
Deadlines. 
Public 
information. 
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123 STAT. 516 
PUBLIC LAW 111–5—FEB. 17, 2009 
(2) The national broadband plan required by this section 
shall seek to ensure that all people of the United States have 
access to broadband capability and shall establish benchmarks 
for meeting that goal. The plan shall also include— 
(A) an analysis of the most effective and efficient 
mechanisms for ensuring broadband access by all people 
of the United States; 
(B) a detailed strategy for achieving affordability of 
such service and maximum utilization of broadband infra-
structure and service by the public; 
(C) an evaluation of the status of deployment of 
broadband service, including progress of projects supported 
by the grants made pursuant to this section; and 
(D) a plan for use of broadband infrastructure and 
services in advancing consumer welfare, civic participation, 
public safety and homeland security, community develop-
ment, health care delivery, energy independence and effi-
ciency, education, worker training, private sector invest-
ment, entrepreneurial activity, job creation and economic 
growth, and other national purposes. 
(3) In developing the plan, the Commission shall have 
access to data provided to other Government agencies under 
the Broadband Data Improvement Act (47 U.S.C. 1301 note). 
(l) The Assistant Secretary shall develop and maintain a com-
prehensive nationwide inventory map of existing broadband service 
capability and availability in the United States that depicts the 
geographic extent to which broadband service capability is deployed 
and available from a commercial provider or public provider 
throughout each State. Not later than 2 years after the date of 
the enactment of this Act, the Assistant Secretary shall make 
the broadband inventory map developed and maintained pursuant 
to this section accessible by the public on a World Wide Web 
site of the National Telecommunications and Information Adminis-
tration in a form that is interactive and searchable. 
(m) The Assistant Secretary shall have the authority to pre-
scribe such rules as are necessary to carry out the purposes of 
this section. 
TITLE VII—LIMITS ON EXECUTIVE 
COMPENSATION 
SEC. 7000. TABLE OF CONTENTS. 
The table of contents of this title is as follows: 
TITLE VII—LIMITS ON EXECUTIVE COMPENSATION 
Sec. 7000. Table of contents. 
Sec. 7001. Executive compensation and corporate governance. 
Sec. 7002. Applicability with respect to loan modifications. 
SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERN-
ANCE. 
Section 111 of the Emergency Economic Stabilization Act of 
2008 (12 U.S.C. 5221) is amended to read as follows: 
Regulations. 
Deadline. 
Web posting. 
Public 
information. 
Broadband map. 
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123 STAT. 517 
PUBLIC LAW 111–5—FEB. 17, 2009 
‘‘SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERN-
ANCE. 
‘‘(a) DEFINITIONS.—For purposes of this section, the following 
definitions shall apply: 
‘‘(1) SENIOR EXECUTIVE OFFICER.—The term ‘senior execu-
tive officer’ means an individual who is 1 of the top 5 most 
highly paid executives of a public company, whose compensation 
is required to be disclosed pursuant to the Securities Exchange 
Act of 1934, and any regulations issued thereunder, and non- 
public company counterparts. 
‘‘(2) GOLDEN PARACHUTE PAYMENT.—The term ‘golden para-
chute payment’ means any payment to a senior executive officer 
for departure from a company for any reason, except for pay-
ments for services performed or benefits accrued. 
‘‘(3) TARP RECIPIENT.—The term ‘TARP recipient’ means 
any entity that has received or will receive financial assistance 
under the financial assistance provided under the TARP. 
‘‘(4) COMMISSION.—The term ‘Commission’ means the Secu-
rities and Exchange Commission. 
‘‘(5) PERIOD IN WHICH OBLIGATION IS OUTSTANDING; RULE 
OF CONSTRUCTION.—For purposes of this section, the period 
in which any obligation arising from financial assistance pro-
vided under the TARP remains outstanding does not include 
any period during which the Federal Government only holds 
warrants to purchase common stock of the TARP recipient. 
‘‘(b) EXECUTIVE
COMPENSATION
AND
CORPORATE
GOVERN-
ANCE.— 
‘‘(1) ESTABLISHMENT OF STANDARDS.—During the period in 
which any obligation arising from financial assistance provided 
under the TARP remains outstanding, each TARP recipient 
shall be subject to— 
‘‘(A) the standards established by the Secretary under 
this section; and 
‘‘(B) the provisions of section 162(m)(5) of the Internal 
Revenue Code of 1986, as applicable. 
‘‘(2) STANDARDS
REQUIRED.—The Secretary shall require 
each TARP recipient to meet appropriate standards for execu-
tive compensation and corporate governance. 
‘‘(3) SPECIFIC REQUIREMENTS.—The standards established 
under paragraph (2) shall include the following: 
‘‘(A) Limits on compensation that exclude incentives 
for senior executive officers of the TARP recipient to take 
unnecessary and excessive risks that threaten the value 
of such recipient during the period in which any obligation 
arising from financial assistance provided under the TARP 
remains outstanding. 
‘‘(B) A provision for the recovery by such TARP 
recipient of any bonus, retention award, or incentive com-
pensation paid to a senior executive officer and any of 
the next 20 most highly-compensated employees of the 
TARP recipient based on statements of earnings, revenues, 
gains, or other criteria that are later found to be materially 
inaccurate. 
‘‘(C) A prohibition on such TARP recipient making 
any golden parachute payment to a senior executive officer 
or any of the next 5 most highly-compensated employees 
of the TARP recipient during the period in which any 
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123 STAT. 518 
PUBLIC LAW 111–5—FEB. 17, 2009 
obligation arising from financial assistance provided under 
the TARP remains outstanding. 
‘‘(D)(i) A prohibition on such TARP recipient paying 
or accruing any bonus, retention award, or incentive com-
pensation during the period in which any obligation arising 
from financial assistance provided under the TARP remains 
outstanding, except that any prohibition developed under 
this paragraph shall not apply to the payment of long- 
term restricted stock by such TARP recipient, provided 
that such long-term restricted stock— 
‘‘(I) does not fully vest during the period in which 
any obligation arising from financial assistance pro-
vided to that TARP recipient remains outstanding; 
‘‘(II) has a value in an amount that is not greater 
than 1⁄3 of the total amount of annual compensation 
of the employee receiving the stock; and 
‘‘(III) is subject to such other terms and conditions 
as the Secretary may determine is in the public 
interest. 
‘‘(ii) The prohibition required under clause (i) shall 
apply as follows: 
‘‘(I) For any financial institution that received 
financial assistance provided under the TARP equal 
to less than $25,000,000, the prohibition shall apply 
only to the most highly compensated employee of the 
financial institution. 
‘‘(II) For any financial institution that received 
financial assistance provided under the TARP equal 
to at least $25,000,000, but less than $250,000,000, 
the prohibition shall apply to at least the 5 most highly- 
compensated employees of the financial institution, or 
such higher number as the Secretary may determine 
is in the public interest with respect to any TARP 
recipient. 
‘‘(III) For any financial institution that received 
financial assistance provided under the TARP equal 
to at least$250,000,000, but less than $500,000,000, 
the prohibition shall apply to the senior executive offi-
cers and at least the 10 next most highly-compensated 
employees, or such higher number as the Secretary 
may determine is in the public interest with respect 
to any TARP recipient. 
‘‘(IV) For any financial institution that received 
financial assistance provided under the TARP equal 
to $500,000,000 or more, the prohibition shall apply 
to the senior executive officers and at least the 20 
next most highly-compensated employees, or such 
higher number as the Secretary may determine is in 
the public interest with respect to any TARP recipient. 
‘‘(iii) The prohibition required under clause (i) shall 
not be construed to prohibit any bonus payment required 
to be paid pursuant to a written employment contract 
executed on or before February 11, 2009, as such valid 
employment contracts are determined by the Secretary or 
the designee of the Secretary. 
‘‘(E) A prohibition on any compensation plan that would 
encourage manipulation of the reported earnings of such 
Applicability. 
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123 STAT. 519 
PUBLIC LAW 111–5—FEB. 17, 2009 
TARP recipient to enhance the compensation of any of 
its employees. 
‘‘(F) A requirement for the establishment of a Board 
Compensation Committee that meets the requirements of 
subsection (c). 
‘‘(4) CERTIFICATION OF COMPLIANCE.—The chief executive 
officer and chief financial officer (or the equivalents thereof) 
of each TARP recipient shall provide a written certification 
of compliance by the TARP recipient with the requirements 
of this section— 
‘‘(A) in the case of a TARP recipient, the securities 
of which are publicly traded, to the Securities and Exchange 
Commission, together with annual filings required under 
the securities laws; and 
‘‘(B) in the case of a TARP recipient that is not a 
publicly traded company, to the Secretary. 
‘‘(c) BOARD COMPENSATION COMMITTEE.— 
‘‘(1) ESTABLISHMENT
OF
BOARD
REQUIRED.—Each TARP 
recipient shall establish a Board Compensation Committee, 
comprised entirely of independent directors, for the purpose 
of reviewing employee compensation plans. 
‘‘(2) MEETINGS.—The Board Compensation Committee of 
each TARP recipient shall meet at least semiannually to discuss 
and evaluate employee compensation plans in light of an assess-
ment of any risk posed to the TARP recipient from such plans. 
‘‘(3) COMPLIANCE BY NON-SEC REGISTRANTS.—In the case 
of any TARP recipient, the common or preferred stock of which 
is not registered pursuant to the Securities Exchange Act of 
1934, and that has received $25,000,000 or less of TARP assist-
ance, the duties of the Board Compensation Committee under 
this subsection shall be carried out by the board of directors 
of such TARP recipient. 
‘‘(d) LIMITATION
ON LUXURY EXPENDITURES.—The board of 
directors of any TARP recipient shall have in place a company- 
wide policy regarding excessive or luxury expenditures, as identified 
by the Secretary, which may include excessive expenditures on— 
‘‘(1) entertainment or events; 
‘‘(2) office and facility renovations; 
‘‘(3) aviation or other transportation services; or 
‘‘(4) other activities or events that are not reasonable 
expenditures for staff development, reasonable performance 
incentives, or other similar measures conducted in the normal 
course of the business operations of the TARP recipient. 
‘‘(e) SHAREHOLDER APPROVAL OF EXECUTIVE COMPENSATION.— 
‘‘(1) ANNUAL SHAREHOLDER APPROVAL OF EXECUTIVE COM-
PENSATION.—Any proxy or consent or authorization for an 
annual or other meeting of the shareholders of any TARP 
recipient during the period in which any obligation arising 
from financial assistance provided under the TARP remains 
outstanding shall permit a separate shareholder vote to approve 
the compensation of executives, as disclosed pursuant to the 
compensation disclosure rules of the Commission (which disclo-
sure shall include the compensation discussion and analysis, 
the compensation tables, and any related material). 
‘‘(2) NONBINDING VOTE.—A shareholder vote described in 
paragraph (1) shall not be binding on the board of directors 
of a TARP recipient, and may not be construed as overruling 
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123 STAT. 520 
PUBLIC LAW 111–5—FEB. 17, 2009 
a decision by such board, nor to create or imply any additional 
fiduciary duty by such board, nor shall such vote be construed 
to restrict or limit the ability of shareholders to make proposals 
for inclusion in proxy materials related to executive compensa-
tion. 
‘‘(3) DEADLINE FOR RULEMAKING.—Not later than 1 year 
after the date of enactment of the American Recovery and 
Reinvestment Act of 2009, the Commission shall issue any 
final rules and regulations required by this subsection. 
‘‘(f) REVIEW OF PRIOR PAYMENTS TO EXECUTIVES.— 
‘‘(1) IN
GENERAL.—The Secretary shall review bonuses, 
retention awards, and other compensation paid to the senior 
executive officers and the next 20 most highly-compensated 
employees of each entity receiving TARP assistance before the 
date of enactment of the American Recovery and Reinvestment 
Act of 2009, to determine whether any such payments were 
inconsistent with the purposes of this section or the TARP 
or were otherwise contrary to the public interest. 
‘‘(2) NEGOTIATIONS FOR REIMBURSEMENT.—If the Secretary 
makes a determination described in paragraph (1), the Sec-
retary shall seek to negotiate with the TARP recipient and 
the subject employee for appropriate reimbursements to the 
Federal Government with respect to compensation or bonuses. 
‘‘(g) NO IMPEDIMENT TO WITHDRAWAL BY TARP RECIPIENTS.— 
Subject to consultation with the appropriate Federal banking agency 
(as that term is defined in section 3 of the Federal Deposit Insurance 
Act), if any, the Secretary shall permit a TARP recipient to repay 
any assistance previously provided under the TARP to such finan-
cial institution, without regard to whether the financial institution 
has replaced such funds from any other source or to any waiting 
period, and when such assistance is repaid, the Secretary shall 
liquidate warrants associated with such assistance at the current 
market price. 
‘‘(h) REGULATIONS.—The Secretary shall promulgate regulations 
to implement this section.’’. 
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123 STAT. 521 
PUBLIC LAW 111–5—FEB. 17, 2009 
LEGISLATIVE HISTORY—H.R. 1 (S. 336) (S. 350): 
SENATE REPORTS: No. 111–3 (Comm. on Appropriations) accompanying S. 336. 
CONGRESSIONAL RECORD, Vol. 155 (2009): 
Jan. 27, 28, considered and passed House. 
Feb. 2–7, 9, 10, considered and passed Senate, amended. 
Feb. 13, House and Senate agreed to conference report. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009): 
Feb. 17, Presidential remarks and statement. 
SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS. 
Section 109(a) of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5219(a)) is amended— 
(1) by striking ‘‘To the extent’’ and inserting the following: 
‘‘(1) IN GENERAL.—To the extent’’; and 
(2) by adding at the end the following: 
‘‘(2) WAIVER OF CERTAIN PROVISIONS IN CONNECTION WITH 
LOAN MODIFICATIONS.—The Secretary shall not be required to 
apply executive compensation restrictions under section 111, 
or to receive warrants or debt instruments under section 113, 
solely in connection with any loan modification under this sec-
tion.’’. 
Approved February 17, 2009. 
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