[DOCID: f:hr659.110] From the House Reports Online via GPO Access [wais.access.gpo.gov] 110th Congress Report HOUSE OF REPRESENTATIVES 2d Session 110-659 _______________________________________________________________________ CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009 ---------- CONFERENCE REPORT to accompany S. CON. RES. 70 <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> May 20, 2008.--Ordered to be printed CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009 110th Congress 2d Session Report HOUSE OF REPRESENTATIVES 110-659 _______________________________________________________________________ CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009 __________ CONFERENCE REPORT to accompany S. CON. RES. 70 <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> May 20, 2008.--Ordered to be printed 110th Congress Report HOUSE OF REPRESENTATIVES 2d Session 110-659 ====================================================================== CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009 _______ May 20, 2008.--Ordered to be printed _______ Mr. Spratt, from the committee of conference, submitted the following CONFERENCE REPORT [To accompany S. Con. Res. 70] The committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the concurrent resolution (S. Con. Res. 70), setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its disagreement to the amendment of the House and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the House amendment, insert the following: SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2009. (a) Declaration.--Congress declares that this resolution is the concurrent resolution on the budget for fiscal year 2009 and that this resolution sets forth the appropriate budgetary levels for fiscal year 2008 and for fiscal years 2010 through 2013. (b) Table of Contents.-- Sec. 1. Concurrent resolution on the budget for fiscal year 2009. TITLE I--RECOMMENDED LEVELS AND AMOUNTS Sec. 101. Recommended levels and amounts. Sec. 102. Social Security. Sec. 103. Postal Service discretionary administrative expenses. Sec. 104. Major functional categories. TITLE II--RESERVE FUNDS Subtitle A--House Reserve Funds Sec. 201. Deficit-neutral reserve fund for SCHIP legislation. Sec. 202. Deficit-neutral reserve fund for America's veterans and servicemembers. Sec. 203. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families. Sec. 204. Deficit-neutral reserve fund for infrastructure investment. Sec. 205. Deficit-neutral reserve fund for renewable energy and energy efficiency. Sec. 206. Deficit-neutral reserve fund for middle-income tax relief and economic equity. Sec. 207. Deficit-neutral reserve fund for reform of the alternative minimum tax. Sec. 208. Deficit-neutral reserve fund for higher education. Sec. 209. Deficit-neutral reserve fund for affordable housing. Sec. 210. Deficit-neutral reserve fund for Medicare improvements. Sec. 211. Deficit-neutral reserve fund for health care quality, effectiveness, and efficiency. Sec. 212. Deficit-neutral reserve fund for Medicaid and other programs. Sec. 213. Deficit-neutral reserve fund for a 9/11 health program. Sec. 214. Deficit-neutral reserve fund for trade adjustment assistance and unemployment insurance modernization. Sec. 215. Deficit-neutral reserve fund for county payments legislation. Sec. 216. Deficit-neutral reserve fund for San Joaquin River restoration and Navajo Nation water rights settlements. Sec. 217. Deficit-neutral reserve fund for the National Park Centennial Fund. Sec. 218. Deficit-neutral reserve fund for child support enforcement. Sec. 219. Deficit-neutral reserve fund for children and families. Sec. 220. Reserve fund adjustment for revenue measures in the House. Subtitle B--Senate Reserve Funds Sec. 221. Deficit-neutral reserve fund to strengthen and stimulate the American economy and provide economic relief to American families. Sec. 222. Deficit-neutral reserve fund for improving education. Sec. 223. Deficit-neutral reserve fund for investments in America's infrastructure. Sec. 224. Deficit-neutral reserve fund to invest in clean energy, preserve the environment, and provide for certain settlements. Sec. 225. Deficit-neutral reserve fund for America's veterans and servicemembers. Sec. 226. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families. Sec. 227. Deficit-neutral reserve fund to improve America's health. Sec. 228. Deficit-neutral reserve fund for reform of the alternative minimum tax. Sec. 229. Deficit-neutral reserve fund for judicial pay and judgeships. Sec. 230. Deficit-neutral reserve fund for immigration enforcement and reform. Sec. 231. Deficit-neutral reserve fund for science parks. Sec. 232. Deficit-neutral reserve fund to terminate deductions from mineral revenue payments to States. Sec. 233. Deficit-reduction reserve fund for increased use of recovery audits. Sec. 234. Deficit-neutral reserve fund for food safety. Sec. 235. Deficit-neutral reserve fund for demonstration project regarding Medicaid coverage of low-income HIV-infected individuals. Sec. 236. Deficit-neutral reserve fund for reducing the income threshold for the refundable child tax credit, and other selected tax relief policies. Sec. 237. Deficit-neutral reserve fund for a 9/11 health program. TITLE III--BUDGET ENFORCEMENT Subtitle A--House Enforcement Provisions Sec. 301. Program integrity initiatives and other adjustments. Sec. 302. Point of order against advance appropriations. Subtitle B--Senate Enforcement Provisions Sec. 311. Senate point of order against legislation increasing long-term deficits. Sec. 312. Discretionary spending limits, program integrity initiatives, and other adjustments. Sec. 313. Point of order against advance appropriations. Sec. 314. Senate point of order against provisions of appropriations legislation that constitute changes in mandatory programs with net costs. Sec. 315. Senate point of order against legislation increasing short- term deficit. Subtitle C--Other Provisions Sec. 321. Oversight of government performance. Sec. 322. Budgetary treatment of certain discretionary administrative expenses. Sec. 323. Application and effect of changes in allocations and aggregates. Sec. 324. Adjustments to reflect changes in concepts and definitions. Sec. 325. Exercise of rulemaking powers. TITLE IV--POLICY Sec. 401. Policy of the House on middle-income tax relief. Sec. 402. Policy on defense priorities. TITLE V--SENSE OF THE SENATE AND CONGRESS Subtitle A--Sense of the Senate Sec. 501. Sense of the Senate regarding Medicaid administrative regulations. Subtitle B--Sense of the Congress Sec. 511. Sense of the Congress on servicemembers' and veterans' health care and other priorities. Sec. 512. Sense of the Congress on homeland security. Sec. 513. Sense of the Congress regarding long-term fiscal reform. Sec. 514. Sense of the Congress regarding waste, fraud, and abuse. Sec. 515. Sense of the Congress regarding extension of the statutory pay-as-you-go rule. Sec. 516. Sense of the Congress on long-term budgeting. Sec. 517. Sense of the Congress regarding affordable health coverage. Sec. 518. Sense of the Congress regarding pay parity. Sec. 519. Sense of the Congress regarding subprime lending and foreclosures. Sec. 520. Sense of the Congress regarding the need to maintain and build upon efforts to fight hunger. Sec. 521. Sense of the Congress regarding the importance of child support enforcement. Sec. 522. Sense of the Congress on the Innovation Agenda and America COMPETES Act. TITLE I--RECOMMENDED LEVELS AND AMOUNTS SEC. 101. RECOMMENDED LEVELS AND AMOUNTS. The following budgetary levels are appropriate for each of fiscal years 2008 through 2013: (1) Federal revenues.--For purposes of the enforcement of this resolution: (A) The recommended levels of Federal revenues are as follows: Fiscal year 2008: $1,875,392,000,000. Fiscal year 2009: $2,029,612,000,000. Fiscal year 2010: $2,204,652,000,000. Fiscal year 2011: $2,413,249,000,000. Fiscal year 2012: $2,506,049,000,000. Fiscal year 2013: $2,626,582,000,000. (B) The amounts by which the aggregate levels of Federal revenues should be changed are as follows: Fiscal year 2008: -$4,000,000,000. Fiscal year 2009: -$67,755,000,000. Fiscal year 2010: $21,270,000,000. Fiscal year 2011: -$14,824,000,000. Fiscal year 2012: -$151,572,000,000. Fiscal year 2013: -$123,689,000,000. (2) New budget authority.--For purposes of the enforcement of this resolution, the appropriate levels of total new budget authority are as follows: Fiscal year 2008: $2,563,262,000,000. Fiscal year 2009: $2,530,703,000,000. Fiscal year 2010: $2,562,856,000,000. Fiscal year 2011: $2,693,843,000,000. Fiscal year 2012: $2,736,865,000,000. Fiscal year 2013: $2,868,813,000,000. (3) Budget outlays.--For purposes of the enforcement of this resolution, the appropriate levels of total budget outlays are as follows: Fiscal year 2008: $2,465,711,000,000. Fiscal year 2009: $2,565,903,000,000. Fiscal year 2010: $2,621,939,000,000. Fiscal year 2011: $2,712,795,000,000. Fiscal year 2012: $2,722,056,000,000. Fiscal year 2013: $2,860,225,000,000. (4) Deficits (on-budget).--For purposes of the enforcement of this resolution, the amounts of the deficits (on-budget) are as follows: Fiscal year 2008: $590,319,000,000. Fiscal year 2009: $536,291,000,000. Fiscal year 2010: $417,287,000,000. Fiscal year 2011: $299,546,000,000. Fiscal year 2012: $216,007,000,000. Fiscal year 2013: $233,643,000,000. (5) Debt subject to limit.--Pursuant to section 301(a)(5) of the Congressional Budget Act of 1974, the appropriate levels of the public debt are as follows: Fiscal year 2008: $9,575,000,000,000. Fiscal year 2009: $10,207,000,000,000. Fiscal year 2010: $10,732,000,000,000. Fiscal year 2011: $11,137,000,000,000. Fiscal year 2012: $11,484,000,000,000. Fiscal year 2013: $11,832,000,000,000. (6) Debt held by the public.--The appropriate levels of debt held by the public are as follows: Fiscal year 2008: $5,404,000,000,000. Fiscal year 2009: $5,761,000,000,000. Fiscal year 2010: $5,989,000,000,000. Fiscal year 2011: $6,080,000,000,000. Fiscal year 2012: $6,075,000,000,000. Fiscal year 2013: $6,081,000,000,000. SEC. 102. SOCIAL SECURITY. (a) Social Security Revenues.--For purposes of Senate enforcement under sections 302 and 311 of the Congressional Budget Act of 1974, the amounts of revenues of the Federal Old- Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows: Fiscal year 2008: $666,706,000,000. Fiscal year 2009: $695,870,000,000. Fiscal year 2010: $733,562,000,000. Fiscal year 2011: $772,459,000,000. Fiscal year 2012: $809,789,000,000. Fiscal year 2013: $845,034,000,000. (b) Social Security Outlays.--For purposes of Senate enforcement under sections 302 and 311 of the Congressional Budget Act of 1974, the amounts of outlays of the Federal Old- Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows: Fiscal year 2008: $463,746,000,000. Fiscal year 2009: $493,602,000,000. Fiscal year 2010: $520,149,000,000. Fiscal year 2011: $540,478,000,000. Fiscal year 2012: $566,240,000,000. Fiscal year 2013: $595,534,000,000. (c) Social Security Administrative Expenses.--In the Senate, the amounts of new budget authority and budget outlays of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund for administrative expenses are as follows: Fiscal year 2008: (A) New budget authority, $5,010,000,000. (B) Outlays, $4,944,000,000. Fiscal year 2009: (A) New budget authority, $5,233,000,000. (B) Outlays, $5,160,000,000. Fiscal year 2010: (A) New budget authority, $5,359,000,000. (B) Outlays, $5,332,000,000. Fiscal year 2011: (A) New budget authority, $5,500,000,000. (B) Outlays, $5,475,000,000. Fiscal year 2012: (A) New budget authority, $5,653,000,000. (B) Outlays, $5,626,000,000. Fiscal year 2013: (A) New budget authority, $5,817,000,000. (B) Outlays, $5,789,000,000. SEC. 103. POSTAL SERVICE DISCRETIONARY ADMINISTRATIVE EXPENSES. In the Senate, the amounts of new budget authority and budget outlays of the Postal Service for discretionary administrative expenses are as follows: Fiscal year 2008: (A) New budget authority, $250,000,000. (B) Outlays, $237,000,000. Fiscal year 2009: (A) New budget authority, $258,000,000. (B) Outlays, $258,000,000. Fiscal year 2010: (A) New budget authority, $267,000,000. (B) Outlays, $267,000,000. Fiscal year 2011: (A) New budget authority, $275,000,000. (B) Outlays, $275,000,000. Fiscal year 2012: (A) New budget authority, $284,000,000. (B) Outlays, $284,000,000. Fiscal year 2013: (A) New budget authority, $293,000,000. (B) Outlays, $293,000,000. SEC. 104. MAJOR FUNCTIONAL CATEGORIES. The Congress determines and declares that the appropriate levels of new budget authority and outlays for fiscal years 2008 through 2013 for each major functional category are: (1) National Defense (050): Fiscal year 2008: (A) New budget authority, $590,686,000,000. (B) Outlays, $576,173,000,000. Fiscal year 2009: (A) New budget authority, $542,497,000,000. (B) Outlays, $573,362,000,000. Fiscal year 2010: (A) New budget authority, $550,414,000,000. (B) Outlays, $560,726,000,000. Fiscal year 2011: (A) New budget authority, $557,026,000,000. (B) Outlays, $560,099,000,000. Fiscal year 2012: (A) New budget authority, $565,800,000,000. (B) Outlays, $556,699,000,000. Fiscal year 2013: (A) New budget authority, $576,233,000,000. (B) Outlays, $568,829,000,000. (2) International Affairs (150): Fiscal year 2008: (A) New budget authority, $32,648,000,000. (B) Outlays, $32,843,000,000. Fiscal year 2009: (A) New budget authority, $37,158,000,000. (B) Outlays, $35,749,000,000. Fiscal year 2010: (A) New budget authority, $37,901,000,000. (B) Outlays, $36,591,000,000. Fiscal year 2011: (A) New budget authority, $38,221,000,000. (B) Outlays, $36,864,000,000. Fiscal year 2012: (A) New budget authority, $38,491,000,000. (B) Outlays, $36,824,000,000. Fiscal year 2013: (A) New budget authority, $38,451,000,000. (B) Outlays, $36,537,000,000. (3) General Science, Space, and Technology (250): Fiscal year 2008: (A) New budget authority, $27,407,000,000. (B) Outlays, $26,456,000,000. Fiscal year 2009: (A) New budget authority, $30,639,000,000. (B) Outlays, $29,072,000,000. Fiscal year 2010: (A) New budget authority, $31,701,000,000. (B) Outlays, $31,192,000,000. Fiscal year 2011: (A) New budget authority, $32,863,000,000. (B) Outlays, $32,642,000,000. Fiscal year 2012: (A) New budget authority, $34,115,000,000. (B) Outlays, $33,891,000,000. Fiscal year 2013: (A) New budget authority, $35,450,000,000. (B) Outlays, $34,694,000,000. (4) Energy (270): Fiscal year 2008: (A) New budget authority, $3,550,000,000. (B) Outlays, $1,681,000,000. Fiscal year 2009: (A) New budget authority, $6,514,000,000. (B) Outlays, $2,795,000,000. Fiscal year 2010: (A) New budget authority, $6,615,000,000. (B) Outlays, $4,092,000,000. Fiscal year 2011: (A) New budget authority, $6,450,000,000. (B) Outlays, $4,969,000,000. Fiscal year 2012: (A) New budget authority, $6,550,000,000. (B) Outlays, $5,417,000,000. Fiscal year 2013: (A) New budget authority, $6,474,000,000. (B) Outlays, $5,659,000,000. (5) Natural Resources and Environment (300): Fiscal year 2008: (A) New budget authority, $33,169,000,000. (B) Outlays, $34,723,000,000. Fiscal year 2009: (A) New budget authority, $40,515,000,000. (B) Outlays, $36,868,000,000. Fiscal year 2010: (A) New budget authority, $35,278,000,000. (B) Outlays, $37,472,000,000. Fiscal year 2011: (A) New budget authority, $36,307,000,000. (B) Outlays, $37,865,000,000. Fiscal year 2012: (A) New budget authority, $37,396,000,000. (B) Outlays, $38,356,000,000. Fiscal year 2013: (A) New budget authority, $38,033,000,000. (B) Outlays, $38,923,000,000. (6) Agriculture (350): Fiscal year 2008: (A) New budget authority, $24,296,000,000. (B) Outlays, $22,179,000,000. Fiscal year 2009: (A) New budget authority, $22,572,000,000. (B) Outlays, $22,312,000,000. Fiscal year 2010: (A) New budget authority, $22,145,000,000. (B) Outlays, $21,241,000,000. Fiscal year 2011: (A) New budget authority, $22,026,000,000. (B) Outlays, $21,022,000,000. Fiscal year 2012: (A) New budget authority, $20,889,000,000. (B) Outlays, $17,463,000,000. Fiscal year 2013: (A) New budget authority, $22,304,000,000. (B) Outlays, $21,606,000,000. (7) Commerce and Housing Credit (370): Fiscal year 2008: (A) New budget authority, $11,216,000,000. (B) Outlays, $5,381,000,000. Fiscal year 2009: (A) New budget authority, $9,560,000,000. (B) Outlays, $3,722,000,000. Fiscal year 2010: (A) New budget authority, $13,887,000,000. (B) Outlays, $5,835,000,000. Fiscal year 2011: (A) New budget authority, $8,998,000,000. (B) Outlays, $2,193,000,000. Fiscal year 2012: (A) New budget authority, $9,246,000,000. (B) Outlays, $1,735,000,000. Fiscal year 2013: (A) New budget authority, $9,642,000,000. (B) Outlays, $1,648,000,000. (8) Transportation (400): Fiscal year 2008: (A) New budget authority, $80,189,000,000. (B) Outlays, $77,795,000,000. Fiscal year 2009: (A) New budget authority, $74,682,000,000. (B) Outlays, $80,781,000,000. Fiscal year 2010: (A) New budget authority, $77,999,000,000. (B) Outlays, $84,318,000,000. Fiscal year 2011: (A) New budget authority, $78,900,000,000. (B) Outlays, $86,468,000,000. Fiscal year 2012: (A) New budget authority, $79,741,000,000. (B) Outlays, $88,453,000,000. Fiscal year 2013: (A) New budget authority, $80,641,000,000. (B) Outlays, $90,675,000,000. (9) Community and Regional Development (450): Fiscal year 2008: (A) New budget authority, $20,149,000,000. (B) Outlays, $27,820,000,000. Fiscal year 2009: (A) New budget authority, $15,220,000,000. (B) Outlays, $24,401,000,000. Fiscal year 2010: (A) New budget authority, $15,376,000,000. (B) Outlays, $22,109,000,000. Fiscal year 2011: (A) New budget authority, $15,603,000,000. (B) Outlays, $18,330,000,000. Fiscal year 2012: (A) New budget authority, $15,840,000,000. (B) Outlays, $16,301,000,000. Fiscal year 2013: (A) New budget authority, $16,007,000,000. (B) Outlays, $15,986,000,000. (10) Education, Training, Employment, and Social Services (500): Fiscal year 2008: (A) New budget authority, $90,077,000,000. (B) Outlays, $90,729,000,000. Fiscal year 2009: (A) New budget authority, $94,277,000,000. (B) Outlays, $91,351,000,000. Fiscal year 2010: (A) New budget authority, $103,716,000,000. (B) Outlays, $99,477,000,000. Fiscal year 2011: (A) New budget authority, $105,910,000,000. (B) Outlays, $103,453,000,000. Fiscal year 2012: (A) New budget authority, $107,399,000,000. (B) Outlays, $103,992,000,000. Fiscal year 2013: (A) New budget authority, $100,625,000,000. (B) Outlays, $102,451,000,000. (11) Health (550): Fiscal year 2008: (A) New budget authority, $285,601,000,000. (B) Outlays, $287,188,000,000. Fiscal year 2009: (A) New budget authority, $310,260,000,000. (B) Outlays, $307,474,000,000. Fiscal year 2010: (A) New budget authority, $325,344,000,000. (B) Outlays, $325,681,000,000. Fiscal year 2011: (A) New budget authority, $345,817,000,000. (B) Outlays, $345,055,000,000. Fiscal year 2012: (A) New budget authority, $368,395,000,000. (B) Outlays, $367,257,000,000. Fiscal year 2013: (A) New budget authority, $393,337,000,000. (B) Outlays, $391,872,000,000. (12) Medicare (570): Fiscal year 2008: (A) New budget authority, $390,458,000,000. (B) Outlays, $390,454,000,000. Fiscal year 2009: (A) New budget authority, $420,191,000,000. (B) Outlays, $419,974,000,000. Fiscal year 2010: (A) New budget authority, $445,207,000,000. (B) Outlays, $445,333,000,000. Fiscal year 2011: (A) New budget authority, $494,337,000,000. (B) Outlays, $494,162,000,000. Fiscal year 2012: (A) New budget authority, $491,305,000,000. (B) Outlays, $491,065,000,000. Fiscal year 2013: (A) New budget authority, $552,329,000,000. (B) Outlays, $552,445,000,000. (13) Income Security (600): Fiscal year 2008: (A) New budget authority, $389,926,000,000. (B) Outlays, $394,161,000,000. Fiscal year 2009: (A) New budget authority, $415,547,000,000. (B) Outlays, $416,039,000,000. Fiscal year 2010: (A) New budget authority, $420,430,000,000. (B) Outlays, $420,710,000,000. Fiscal year 2011: (A) New budget authority, $429,946,000,000. (B) Outlays, $429,463,000,000. Fiscal year 2012: (A) New budget authority, $416,447,000,000. (B) Outlays, $416,044,000,000. Fiscal year 2013: (A) New budget authority, $432,148,000,000. (B) Outlays, $431,699,000,000. (14) Social Security (650): Fiscal year 2008: (A) New budget authority, $19,378,000,000. (B) Outlays, $19,378,000,000. Fiscal year 2009: (A) New budget authority, $21,313,000,000. (B) Outlays, $21,313,000,000. Fiscal year 2010: (A) New budget authority, $23,803,000,000. (B) Outlays, $23,803,000,000. Fiscal year 2011: (A) New budget authority, $27,338,000,000. (B) Outlays, $27,338,000,000. Fiscal year 2012: (A) New budget authority, $30,349,000,000. (B) Outlays, $30,349,000,000. Fiscal year 2013: (A) New budget authority, $33,170,000,000. (B) Outlays, $33,170,000,000. (15) Veterans Benefits and Services (700): Fiscal year 2008: (A) New budget authority, $86,365,000,000. (B) Outlays, $83,551,000,000. Fiscal year 2009: (A) New budget authority, $93,320,000,000. (B) Outlays, $92,486,000,000. Fiscal year 2010: (A) New budget authority, $96,233,000,000. (B) Outlays, $95,912,000,000. Fiscal year 2011: (A) New budget authority, $102,038,000,000. (B) Outlays, $101,706,000,000. Fiscal year 2012: (A) New budget authority, $99,359,000,000. (B) Outlays, $98,511,000,000. Fiscal year 2013: (A) New budget authority, $105,344,000,000. (B) Outlays, $104,513,000,000. (16) Administration of Justice (750): Fiscal year 2008: (A) New budget authority, $46,237,000,000. (B) Outlays, $44,282,000,000. Fiscal year 2009: (A) New budget authority, $48,303,000,000. (B) Outlays, $48,097,000,000. Fiscal year 2010: (A) New budget authority, $48,673,000,000. (B) Outlays, $49,291,000,000. Fiscal year 2011: (A) New budget authority, $49,348,000,000. (B) Outlays, $49,763,000,000. Fiscal year 2012: (A) New budget authority, $50,139,000,000. (B) Outlays, $50,172,000,000. Fiscal year 2013: (A) New budget authority, $51,051,000,000. (B) Outlays, $50,767,000,000. (17) General Government (800): Fiscal year 2008: (A) New budget authority, $56,407,000,000. (B) Outlays, $56,920,000,000. Fiscal year 2009: (A) New budget authority, $23,987,000,000. (B) Outlays, $24,411,000,000. Fiscal year 2010: (A) New budget authority, $19,929,000,000. (B) Outlays, $19,974,000,000. Fiscal year 2011: (A) New budget authority, $20,470,000,000. (B) Outlays, $20,369,000,000. Fiscal year 2012: (A) New budget authority, $21,004,000,000. (B) Outlays, $21,026,000,000. Fiscal year 2013: (A) New budget authority, $21,463,000,000. (B) Outlays, $21,251,000,000. (18) Net Interest (900): Fiscal year 2008: (A) New budget authority, $349,351,000,000. (B) Outlays, $349,351,000,000. Fiscal year 2009: (A) New budget authority, $334,409,000,000. (B) Outlays, $334,409,000,000. Fiscal year 2010: (A) New budget authority, $370,805,000,000. (B) Outlays, $370,805,000,000. Fiscal year 2011: (A) New budget authority, $407,916,000,000. (B) Outlays, $407,916,000,000. Fiscal year 2012: (A) New budget authority, $433,193,000,000. (B) Outlays, $433,193,000,000. Fiscal year 2013: (A) New budget authority, $448,812,000,000. (B) Outlays, $448,812,000,000. (19) Allowances (920): Fiscal year 2008: (A) New budget authority, $4,426,000,000. (B) Outlays, $2,075,000,000. Fiscal year 2009: (A) New budget authority, -$13,201,000,000. (B) Outlays, -$6,462,000,000. Fiscal year 2010: (A) New budget authority, -$11,955,000,000. (B) Outlays, -$9,385,000,000. Fiscal year 2011: (A) New budget authority, -$12,307,000,000. (B) Outlays, -$11,769,000,000. Fiscal year 2012: (A) New budget authority, -$12,689,000,000. (B) Outlays, -$13,764,000,000. Fiscal year 2013: (A) New budget authority, -$13,000,000,000. (B) Outlays, -$13,396,000,000. (20) Undistributed Offsetting Receipts (950): Fiscal year 2008: (A) New budget authority, -$86,330,000,000. (B) Outlays, -$86,330,000,000. Fiscal year 2009: (A) New budget authority, -$67,060,000,000. (B) Outlays, -$67,060,000,000. Fiscal year 2010: (A) New budget authority, -$70,645,000,000. (B) Outlays, -$70,645,000,000. Fiscal year 2011: (A) New budget authority, -$73,364,000,000. (B) Outlays, -$73,364,000,000. Fiscal year 2012: (A) New budget authority, -$76,104,000,000. (B) Outlays, -$76,104,000,000. Fiscal year 2013: (A) New budget authority, -$79,691,000,000. (B) Outlays, -$79,691,000,000. (21) Overseas Deployments and Other Activities (970): Fiscal year 2008: (A) New budget authority, $108,056,000,000. (B) Outlays, $28,901,000,000. Fiscal year 2009: (A) New budget authority, $70,000,000,000. (B) Outlays, $74,809,000,000. Fiscal year 2010: (A) New budget authority, $0. (B) Outlays, $47,407,000,000. Fiscal year 2011: (A) New budget authority, $0. (B) Outlays, $18,251,000,000. Fiscal year 2012: (A) New budget authority, $0. (B) Outlays, $5,176,000,000. Fiscal year 2013: (A) New budget authority, $0. (B) Outlays, $1,775,000,000. TITLE II--RESERVE FUNDS Subtitle A--House Reserve Funds SEC. 201. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION. In the House, the Chairman of the Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report, which contains matter within the jurisdiction of the Committee on Energy and Commerce that expands coverage and improves children's health through the State Children's Health Insurance Program (SCHIP) under title XXI of the Social Security Act and the program under title XIX of such Act (commonly known as Medicaid) and that increases new budget authority that will result in no more than $50,000,000,000 in outlays in fiscal years 2008 through 2013, and others which contain offsets so designated for the purpose of this section within the jurisdiction of another committee or committees, if the combined changes would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 202. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS AND SERVICEMEMBERS. The Chairman of the House Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would-- (1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or veterans (including measures to expedite the claims process); (2) maintain affordable health care for military retirees and veterans; (3) expand the number of disabled military retirees who receive both disability compensation and retired pay, or would accelerate the date by which eligible retirees under section 1414 of title 10, United States Code, will fully receive both veterans' disability compensation and retired pay; (4) eliminate the offset between Survivor Benefit Plan annuities and Veterans' Dependency and Indemnity Compensation; (5) provide for the continuing payment to members of the Armed Forces who are retired or separated from the Armed Forces due to a combat-related injury after September 11, 2001, of bonuses that such members were entitled to before the retirement or separation and would continue to be entitled to if such members were not retired or separated; (6) enhance programs and activities to increase the availability of health care and other veterans services for veterans living in rural areas; or (7) provide or increase benefits for Filipino veterans of World War II or their survivors and dependents by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 203. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS FOR SERVICEMEMBERS, VETERANS, AND THEIR FAMILIES. The Chairman of the House Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would-- (1) enhance educational benefits or assistance for servicemembers and veterans with service on active duty in the Armed Forces on or after September 11, 2001; (2) allow for the transfer of education benefits from servicemembers to spouses, survivors, or dependents; or (3) otherwise enhance education benefits or assistance for servicemembers (including Active Duty, National Guard, and Reserve), veterans, or their spouses, survivors, or dependents by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit or decrease the surplus over either the period of fiscal years 2008 through 2013 or the period of fiscal years 2008 through 2018. SEC. 204. DEFICIT-NEUTRAL RESERVE FUND FOR INFRASTRUCTURE INVESTMENT. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for a robust Federal investment in America's infrastructure, which may include projects for transit, rail (including high-speed passenger rail), airport, seaport, public housing, energy, water, highway, bridge, or other infrastructure projects by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 205. DEFICIT-NEUTRAL RESERVE FUND FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides tax incentives for or otherwise encourages the production of renewable energy or increased energy efficiency; encourages investment in emerging energy or vehicle technologies or carbon capture and sequestration; provides for reductions in greenhouse gas emissions; or facilitates the training of workers for these industries (``green collar jobs'') by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 206. DEFICIT-NEUTRAL RESERVE FUND FOR MIDDLE-INCOME TAX RELIEF AND ECONOMIC EQUITY. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for tax relief for middle-income families and taxpayers or enhanced economic equity, such as extension of the child tax credit, extension of marriage penalty relief, extension of the 10 percent individual income tax bracket, elimination of estate taxes on all but a minute fraction of estates by reforming and substantially increasing the unified credit, extension of the research and experimentation tax credit, extension of the deduction for small business expensing, extension of the deduction for State and local sales taxes, or a tax credit for school construction bonds, by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 207. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE ALTERNATIVE MINIMUM TAX. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for reform of the Internal Revenue Code of 1986 by reducing the tax burden of the alternative minimum tax on middle-income families by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 208. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that makes college more affordable or accessible through reforms to the Higher Education Act of 1965 or other legislation by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 209. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE HOUSING. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for an affordable housing fund, offset by reforming the regulation of certain government-sponsored enterprises, by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 210. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE IMPROVEMENTS. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that improves the Medicare program for beneficiaries and protects access to care, which may include measures such as-- (1) increasing the reimbursement rate for physicians while protecting beneficiaries from associated premium increases; (2) providing for-- (A) an increase in the asset allowance under the Medicare Part D low-income subsidy program so that individuals with very limited incomes, but modest retirement savings, can obtain the assistance that the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was intended to deliver with respect to the payment of premiums and cost-sharing under the Medicare Part D prescription drug benefit; (B) an update in the income and asset allowances under the Medicare Savings Program and an annual inflationary adjustment for those allowances; or (C) improved outreach and enrollment under the Medicare Savings Program and the Medicare Part D low-income subsidy program to ensure that low-income senior citizens and other low- income Medicare beneficiaries receive the low- income assistance for which they are eligible in accordance with the improvements provided for in such legislation; (3) reductions in beneficiary cost-sharing for preventive benefits under Medicare Part B; or (4) limiting inappropriate or abusive marketing tactics by private insurers and their agents offering Medicare Advantage or Medicare prescription drug plans by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 211. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH CARE QUALITY, EFFECTIVENESS, AND EFFICIENCY. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that-- (1) provides incentives or other support for adoption of modern information technology, including electronic prescribing, to improve quality and protect privacy in health care; (2) establishes a new Federal or public-private initiative for research on the comparative effectiveness of different medical interventions; (3) provides parity between health insurance coverage of mental health benefits and benefits for medical and surgical services, including parity in public programs; (4) improves health care, provides quality health insurance for the uninsured and underinsured, and protects individuals with current health coverage; or (5) reauthorizes the special diabetes program for Indians and the special diabetes programs for Type 1 diabetes by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 212. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICAID AND OTHER PROGRAMS. (a) Regulations and Administrative Actions.--In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that prevents or delays the implementation or administration of regulations or other administrative actions that would affect the Medicaid, SCHIP, or other programs by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. (b) Transitional Medical Assistance and Qualifying Individuals.--In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that extends the transitional medical assistance program or the qualifying individuals program, which are included in title XIX of the Social Security Act, by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. (c) Demonstration Project Regarding Medicaid Coverage of Low-Income HIV-Infected Individuals.--In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for a demonstration project under which a State may apply under section 1115 of the Social Security Act (42 U.S.C. 1315) to provide medical assistance under a State Medicaid program to HIV-infected individuals who are not eligible for medical assistance under such program under section 1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)) by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. (d) Pediatric Dental Care.--In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that would provide for improved access to pediatric dental care for children from low-income families by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 213. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH PROGRAM. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that would establish a program, including medical monitoring and treatment, addressing the adverse health impacts linked to the September 11, 2001, attacks by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 214. DEFICIT-NEUTRAL RESERVE FUND FOR TRADE ADJUSTMENT ASSISTANCE AND UNEMPLOYMENT INSURANCE MODERNIZATION. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that reauthorizes the trade adjustment assistance program to better meet the challenges of globalization or modernizes the unemployment insurance system to improve access to needed benefits by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 215. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS LEGISLATION. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for the reauthorization of the Secure Rural Schools and Community Self Determination Act of 2000 (Public Law 106-393) or makes changes to the Payments in Lieu of Taxes Act of 1976 (Public Law 94- 565) by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 216. DEFICIT-NEUTRAL RESERVE FUND FOR SAN JOAQUIN RIVER RESTORATION AND NAVAJO NATION WATER RIGHTS SETTLEMENTS. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that would fulfill the purposes of the San Joaquin River Restoration Settlement Act or implement a Navajo Nation water rights settlement and other provisions authorized by the Northwestern New Mexico Rural Water Projects Act by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 217. DEFICIT-NEUTRAL RESERVE FUND FOR THE NATIONAL PARK CENTENNIAL FUND. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that provides for the establishment of the National Park Centennial Fund by the amounts provided in such measure for that purpose if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 218. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD SUPPORT ENFORCEMENT. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that improves Federal child support collection efforts or results in more collected child support reaching families by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 219. DEFICIT-NEUTRAL RESERVE FUND FOR CHILDREN AND FAMILIES. In the House, the Chairman of the Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for any bill, joint resolution, amendment, or conference report that assists children and families by improving child welfare programs, extending and improving provisions in the Temporary Assistance for Needy Families program, or providing up to $5,000,000,000 for the child care entitlement to States by the amounts provided in such measure if such measure would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 220. RESERVE FUND ADJUSTMENT FOR REVENUE MEASURES IN THE HOUSE. (a) In the House, with respect to consideration of any bill, joint resolution, amendment, or conference report that would have the net effect of increasing the deficit or reducing the surplus for the period of fiscal years 2008 through 2013 or the period of fiscal years 2008 through 2018 and that would decrease total revenues for the period of fiscal years 2009 through 2013 below the Congressional Budget Office baseline for this concurrent resolution on the budget, the Chairman of the Committee on the Budget shall increase the revenue aggregates by $340,570,000,000 for the period of fiscal years 2009 through 2013 if the Chairman determines that such legislation does not include language consistent with the applicable provision set forth in the joint explanatory statement of managers accompanying this concurrent resolution. The Chairman may readjust such levels upon disposition of any measure under this section. (b) Section 321 of S. Con. Res. 21, the Concurrent Resolution on the Budget for Fiscal Year 2008, shall no longer apply. Subtitle B--Senate Reserve Funds SEC. 221. DEFICIT-NEUTRAL RESERVE FUND TO STRENGTHEN AND STIMULATE THE AMERICAN ECONOMY AND PROVIDE ECONOMIC RELIEF TO AMERICAN FAMILIES. (a) Tax Relief.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide tax relief, including extensions of expiring and expired tax relief and refundable tax relief, by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (b) Manufacturing.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports, including tax legislation, that would revitalize the United States domestic manufacturing sector by increasing Federal research and development, by expanding the scope and effectiveness of manufacturing programs across the Federal government, by increasing efforts to train and retrain manufacturing workers, by increasing support for development of alternative fuels and leap-ahead automotive and energy technologies, or by establishing tax incentives to encourage the continued production in the United States of advanced technologies and the infrastructure to support such technologies, by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (c) Housing.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide housing assistance, which may include low income rental assistance, or establish an affordable housing fund financed by the housing government sponsored enterprises or other sources, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (d) Flood Insurance Reform.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide for flood insurance reform and modernization, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (e) Trade.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports relating to trade, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (f) Economic Relief for American Families.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports which-- (1) reauthorizes the Temporary Assistance for Needy Families supplemental grants or makes improvements to the Temporary Assistance for Needy Families program, child welfare programs, or the child support enforcement program; (2) provides up to $5,000,000,000 for the child care entitlement to States; (3) provides up to $40,000,000 for the emergency food assistance program established under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.); (4) improves the unemployment compensation program; or (5) reauthorizes trade adjustment assistance programs by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (g) America's Farms and Economic Investment in Rural America.-- (1) Farm bill.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide for the reauthorization of the programs of the Food Security and Rural Investment Act of 2002 or prior Acts, authorize similar or related programs, provide for revenue changes, or any combination of the preceding purposes, by the amounts provided in such legislation for those purposes up to $15,000,000,000 over the period of the total of fiscal years 2008 through 2013, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (2) County payments.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide for the reauthorization of the Secure Rural Schools and Community Self-Determination Act of 2000 (Public Law 106-393), make changes to the Payments in Lieu of Taxes Act of 1976 (Public Law 94-565), or both, by the amounts provided by that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 222. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVING EDUCATION. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would improve education, which may include-- (1) making higher education more accessible or more affordable, which may include increasing funding for the Federal Pell Grant program or increasing Federal student loan limits; (2) facilitating modernization of school facilities through renovation or construction bonds, reducing the cost of teachers' out-of-pocket expenses for school supplies, or providing tax incentives for highly- qualified teachers to serve in high-needs schools; (3) improving student achievement during secondary education, including middle school completion, increasing high school graduation, and preparing students for higher education and the workforce; or (4) promoting flexibility and accountability in Federal education programs by the amounts provided in such legislation for such purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 223. DEFICIT-NEUTRAL RESERVE FUND FOR INVESTMENTS IN AMERICA'S INFRASTRUCTURE. The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide for a robust Federal investment in America's infrastructure, which may include projects for transit, rail (including high-speed passenger rail), airport, seaport, public housing, energy, water, highway, bridge, or other infrastructure projects, by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 224. DEFICIT-NEUTRAL RESERVE FUND TO INVEST IN CLEAN ENERGY, PRESERVE THE ENVIRONMENT, AND PROVIDE FOR CERTAIN SETTLEMENTS. (a) Energy and the Environment.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would decrease greenhouse gas emissions, reduce our Nation's dependence on imported energy, produce green jobs, encourage consumers to install smart electricity meters in homes and businesses, encourage the capture and storage of carbon dioxide emissions from coal projects, or preserve or protect national parks, oceans, or coastal areas, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. The legislation may include tax legislation such as a proposal to extend for 5 years energy tax incentives like the production tax credit for electricity produced from renewable resources, the biodiesel production tax credit, or the Clean Renewable Energy Bond program, to provide a tax credit for clean burning wood stoves, a tax credit for production of cellulosic ethanol, a tax credit for plug-in hybrid vehicles, or provisions to encourage energy efficient buildings, products, and power plants. Tax legislation under this section may be paid for by adjustments to section 167(h)(1) of the Internal Revenue Code of 1986 as it relates to integrated oil companies. (b) Settlements.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would fulfill the purposes of the San Joaquin River Restoration Settlement Act or implement a Navajo Nation water rights settlement and other provisions authorized by the Northwestern New Mexico Rural Water Projects Act, by the amounts provided by that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 225. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS AND SERVICEMEMBERS. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would-- (1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or veterans (including measures to expedite the claims process); (2) maintain affordable health care for military retirees and veterans; (3) expand the number of disabled military retirees who receive both disability compensation and retired pay, or would accelerate the date by which eligible retirees under section 1414 of title 10, United States Code, will fully receive both veterans' disability compensation and retired pay; (4) eliminate the offset between Survivor Benefit Plan annuities and Veterans' Dependency and Indemnity Compensation; (5) provide for the continuing payment to members of the Armed Forces who are retired or separated from the Armed Forces due to a combat-related injury after September 11, 2001, of bonuses that such members were entitled to before the retirement or separation and would continue to be entitled to if such members were not retired or separated; (6) enhance programs and activities to increase the availability of health care and other veterans services for veterans living in rural areas; or (7) provide or increase benefits for Filipino veterans of World War II or their survivors and dependents by the amounts provided in such legislation for those purposes, provided that such legislation does not include increased fees charged to veterans for pharmacy co-payments, annual enrollment, or third-party insurance payment offsets, and further provided that such legislation would not increase the deficit or decrease the surplus for the period of fiscal years 2008 through 2013 or for the period of fiscal years 2008 through 2018. SEC. 226. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS FOR SERVICEMEMBERS, VETERANS, AND THEIR FAMILIES. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would-- (1) enhance educational benefits or assistance for servicemembers and veterans with service on active duty in the Armed Forces on or after September 11, 2001; (2) allow for the transfer of education benefits from servicemembers to spouses, survivors, or dependents; or (3) otherwise enhance education benefits or assistance for servicemembers (including Active Duty, National Guard, and Reserve), veterans, or their spouses, survivors, or dependents by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 227. DEFICIT-NEUTRAL RESERVE FUND TO IMPROVE AMERICA'S HEALTH. (a) SCHIP.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that provides up to $50,000,000,000 in outlays over the period of the total of fiscal years 2008 through 2013 for reauthorization of SCHIP, if such legislation maintains coverage for those currently enrolled in SCHIP, continues efforts to enroll uninsured children who are already eligible for SCHIP or Medicaid but are not enrolled, or supports States in their efforts to move forward in covering more children, by the amounts provided in that legislation for those purposes, provided that the outlay adjustment shall not exceed $50,000,000,000 in outlays over the period of the total of fiscal years 2008 through 2013, and provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (b) Medicare Improvements.-- (1) Physician payments.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that increases the reimbursement rate for physician services under section 1848(d) of the Social Security Act and that includes financial incentives for physicians to improve the quality and efficiency of items and services furnished to Medicare beneficiaries through the use of consensus- based quality measures, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (2) Other improvements to medicare.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that makes improvements to the Medicare program, which may include-- (A) reductions in beneficiary cost-sharing for preventive benefits under Medicare Part B; (B) the preservation or promotion of payment provisions that support America's rural health care delivery system; (C) limits to inappropriate or abusive marketing tactics by private insurers and their agents offering Medicare Advantage or Medicare prescription drug plans by enacting any or all of the recommendations agreed to by leaders of the health insurance industry on March 3, 2008, including prohibitions on cold calling and telephone solicitations for in-home sales appointments with Medicare beneficiaries; (D) a three-year extension of the pilot program for national and State background checks on direct patient access employees of long-term care facilities or providers under section 307 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (42 U.S.C. 1395aa note) and removing the limit on the number of participating States under such pilot program; or (E) measures to encourage physicians to train in primary care residencies and attract more physicians and other health care providers to States that face a shortage of health care providers by the amounts provided in such legislation for those purposes up to $10,000,000,000, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (3) Medicare low-income programs.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that makes improvements to the Medicare Savings Program and the Medicare Part D low-income subsidy program, which may include the provisions that-- (A) provide for an increase in the asset allowance under the Medicare Part D low-income subsidy program so that individuals with very limited incomes, but modest retirement savings, can obtain the assistance that the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was intended to deliver with respect to the payment of premiums and cost-sharing under the Medicare Part D prescription drug benefit; (B) provide for an update in the income and asset allowances under the Medicare Savings Program and provide for an annual inflationary adjustment for those allowances; and (C) improve outreach and enrollment under the Medicare Savings Program and the Medicare Part D low-income subsidy program to ensure that low-income senior citizens and other low- income Medicare beneficiaries receive the low- income assistance for which they are eligible in accordance with the improvements provided for in such legislation by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (c) Health Care Quality, Effectiveness, Efficiency, and Transparency.-- (1) Comparative effectiveness research.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that establish a new Federal or public-private initiative for comparative effectiveness research, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (2) Improving the health care system.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution for a bill, joint resolution, motion, amendment, or conference report that-- (A) creates a framework and parameters for the use of Medicare data for the purpose of conducting research, public reporting, and other activities to evaluate health care safety, effectiveness, efficiency, quality, and resource utilization in Federal programs and the private health care system; and (B) includes provisions to protect beneficiary privacy and to prevent disclosure of proprietary or trade secret information with respect to the transfer and use of such data by the amounts provided for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (3) Health information technology and adherence to best practices.-- (A) Health information technology.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide incentives or other support for adoption of modern information technology, including incentives or other supports for the adoption of electronic prescribing technology, to improve quality and protect privacy in health care, such as activities by the Department of Defense and the Department of Veterans Affairs to integrate their electronic health record data, by the amounts provided in such legislation for that purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (B) Adherence to best practices.--The Chairman of the Committee on the Budget of the Senate may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that provide incentives for Medicare providers or suppliers to comply with, where available and medically appropriate, clinical protocols identified as best practices, by the amounts provided in such legislation for that purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (d) Food and Drug Administration.-- (1) Regulation.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for a bill, joint resolution, motion, amendment, or conference report that authorizes the Food and Drug Administration to regulate products and assess user fees on manufacturers and importers of those products to cover the cost of the Food and Drug Administration's regulatory activities, by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (2) Drug importation.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other levels in this resolution for a bill, joint resolution, motion, amendment, or conference report that permits the safe importation of prescription drugs approved by the Food and Drug Administration from a specified list of countries, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (e) Medicaid.-- (1) Rules or administrative actions.--The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that includes provisions regarding the implementation or administration of regulations or other administrative actions pertaining to Medicaid or SCHIP or includes provisions regarding administrative guidance issued in August 2007 affecting SCHIP or any other administrative action that would affect SCHIP in a similar manner by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the total of the period of fiscal years 2008 through 2013 or the total of the period of fiscal years 2008 through 2018. (2) Transitional medical assistance.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions or conference reports that extend the Transitional Medical Assistance program, included in title XIX of the Social Security Act, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the total of the period of fiscal years 2008 through 2013 or the total of the period of fiscal years 2008 through 2018. (f) Other Improvements in Health.--The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports which-- (1) make health insurance coverage more affordable or available to small businesses and their employees, through pooling arrangements that provide appropriate consumer protections, or through reducing barriers to cafeteria plans; (2) improve health care, provide quality health insurance for the uninsured and underinsured, and protect individuals with current health coverage; (3) reauthorize the special diabetes program for Indians and the special diabetes programs for Type 1 diabetes; (4) improve long-term care, enhance the safety and dignity of patients, encourage appropriate use of institutional and community-based care, promote quality care, or provide for the cost-effective use of public resources; or (5) provide parity between health insurance coverage of mental health benefits and benefits for medical and surgical services, including parity in public programs by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. (g) Pediatric Dental Care.--The Chairman of the Senate Committee on the Budget may revise the aggregates, allocations, and other appropriate levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that would provide for improved access to pediatric dental care for children from low-income families, by the amounts provided in such legislation for such purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 228. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE ALTERNATIVE MINIMUM TAX. The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution for a bill, joint resolution, amendment, motion, or conference report that provides for reform of the Internal Revenue Code of 1986 by reducing the tax burden of the alternative minimum tax on middle-income families, by the amounts provided in such measure for that purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 229. DEFICIT-NEUTRAL RESERVE FUND FOR JUDICIAL PAY AND JUDGESHIPS. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would authorize salary adjustments for justices and judges of the United States or increase the number of Federal judgeships, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 230. DEFICIT-NEUTRAL RESERVE FUND FOR IMMIGRATION ENFORCEMENT AND REFORM. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions or conference reports that would provide for greater border security, enforcement of immigration laws, backlog reduction and improvement of immigration services, reimbursement to states for the costs of incarcerating criminal aliens, or immigration reform, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 231. DEFICIT-NEUTRAL RESERVE FUND FOR SCIENCE PARKS. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide grants and loan guarantees for the development and construction of science parks to promote the clustering of innovation through high technology activities, by the amounts provided in such legislation for such purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 232. DEFICIT-NEUTRAL RESERVE FUND TO TERMINATE DEDUCTIONS FROM MINERAL REVENUE PAYMENTS TO STATES. The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels and limits in this resolution by the amounts provided for those purposes for a bill, joint resolution, amendment, motion, or conference report that would terminate the authority to deduct certain amounts from mineral revenues payable to States under the second undesignated paragraph of the matter under the heading ``administrative provisions'' under the heading ``Minerals Management Service'' of title I of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2109), provided that such legislation would not increase the deficit over the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 233. DEFICIT-REDUCTION RESERVE FUND FOR INCREASED USE OF RECOVERY AUDITS. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that achieves savings by requiring that agencies increase their use of recovery audits authorized under subchapter VI of chapter 35 of title 31, United States Code, (commonly referred to as the Erroneous Payments Recovery Act of 2001) and uses such savings to reduce the deficit, by the amounts provided in such legislation for such purpose, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 234. DEFICIT-NEUTRAL RESERVE FUND FOR FOOD SAFETY. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would expand the level of Food and Drug Administration and Department of Agriculture food safety inspection services, develop effective approaches to the inspection of domestic and imported food products, provide for infrastructure and information technology systems to enhance the safety of the food supply, expand scientific capacity and training programs, invest in improved surveillance and testing technologies, provide for foodborne illness awareness and education programs, or enhance the Food and Drug Administration's recall authority, by the amounts provided in such legislation for such purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 235. DEFICIT-NEUTRAL RESERVE FUND FOR DEMONSTRATION PROJECT REGARDING MEDICAID COVERAGE OF LOW-INCOME HIV- INFECTED INDIVIDUALS. The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels in this resolution for one or more bills, joint resolutions, amendments, motions or conference reports that provide for a demonstration project under which a State may apply under section 1115 of the Social Security Act (42 U.S.C. 1315) to provide medical assistance under a State Medicaid program to HIV-infected individuals who are not eligible for medical assistance under such program under section 1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)), by the amounts provided in that legislation for those purposes, provided that such legislation would not increase the deficit over either the total of the period of fiscal years 2008 through 2013 or the total of the period of fiscal years 2008 through 2018. SEC. 236. DEFICIT-NEUTRAL RESERVE FUND FOR REDUCING THE INCOME THRESHOLD FOR THE REFUNDABLE CHILD TAX CREDIT, AND OTHER SELECTED TAX RELIEF POLICIES. The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would reduce the income threshold for the refundable child tax credit under section 24 of the Internal Revenue Code of 1986 to $10,000 for taxable years 2009 and 2010 with no inflation adjustment; extend enhanced charitable giving from individual retirement accounts, including life-income gifts; or incentivize utilization of accumulated alternative minimum tax and research and development credits, by the amounts provided in such legislation for those purposes, provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. SEC. 237. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH PROGRAM. The Chairman of the Senate Committee on the Budget may revise the allocations, aggregates, and other levels and limits in this resolution for a bill, joint resolution, motion, amendment, or conference report that would establish a program, including medical monitoring and treatment, addressing the adverse health impacts linked to the September 11, 2001 attacks, by the amounts provided in such legislation for those purposes, if such legislation would not increase the deficit over either the period of fiscal years 2008 through 2013 or the period of the total of fiscal years 2008 through 2018. TITLE III--BUDGET ENFORCEMENT Subtitle A--House Enforcement Provisions SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER ADJUSTMENTS. (a) Adjustments to Discretionary Spending Limits.-- (1) Continuing disability reviews and supplemental security income redeterminations.--In the House, prior to consideration of any bill, joint resolution, amendment, or conference report making appropriations for fiscal year 2009 that appropriates $264,000,000 for continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, and provides an additional appropriation of up to $240,000,000, and the amount is designated for continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, the allocation to the Committee on Appropriations shall be increased by the amount of the additional budget authority and outlays resulting from that budget authority for fiscal year 2009. (2) Internal revenue service tax compliance.--In the House, prior to consideration of any bill, joint resolution, amendment, or conference report making appropriations for fiscal year 2009 that appropriates $6,997,000,000 to the Internal Revenue Service and the amount is designated to improve compliance with the provisions of the Internal Revenue Code of 1986 and provides an additional appropriation of up to $490,000,000, and the amount is designated to improve compliance with the provisions of the Internal Revenue Code of 1986, the allocation to the Committee on Appropriations shall be increased by the amount of the additional budget authority and outlays resulting from that budget authority for fiscal year 2009. (3) Health care fraud and abuse control program.-- In the House, prior to consideration of any bill, joint resolution, amendment, or conference report making appropriations for fiscal year 2009 that appropriates up to $198,000,000 and the amount is designated to the health care fraud and abuse control program at the Department of Health and Human Services, the allocation to the Committee on Appropriations shall be increased by the amount of additional budget authority and outlays resulting from that budget authority for fiscal year 2009. (4) Unemployment insurance program integrity activities.--In the House, prior to consideration of any bill, joint resolution, amendment, or conference report making appropriations for fiscal year 2009 that appropriates $10,000,000 for in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews for the Department of Labor and provides an additional appropriation of up to $40,000,000, and the amount is designated for in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews for the Department of Labor, the allocation to the Committee on Appropriations shall be increased by the amount of additional budget authority and outlays resulting from that budget authority for fiscal year 2009. (b) Costs of Overseas Deployments and Emergency Needs.-- (1) Overseas deployments and related activities.-- (A) In the House, if any bill, joint resolution, amendment, or conference report makes appropriations for fiscal year 2008 or fiscal year 2009 for overseas deployments and related activities and such amounts are so designated pursuant to this subparagraph, then the allocation to the Committee on Appropriations may be adjusted by the amounts provided in such legislation for that purpose up to the amounts of budget authority specified in section 104(21) for fiscal year 2008 or fiscal year 2009 and the new outlays resulting therefrom. (B) In the House, if any bill, joint resolution, amendment, or conference report makes appropriations for fiscal year 2008 or fiscal year 2009 for overseas deployments and related activities above the amounts of budget authority and new outlays specified in subparagraph (A) and such amounts are so designated pursuant to this subparagraph, then new budget authority, outlays, or receipts resulting therefrom shall not count for the purposes of titles III and IV of the Congressional Budget Act of 1974. (2) Emergency needs.-- In the House, if any bill, joint resolution, amendment, or conference report makes appropriations for discretionary amounts and such amounts are designated as necessary to meet emergency needs, then the new budget authority and outlays resulting therefrom shall not count for the purposes of titles III and IV of the Congressional Budget Act of 1974. (c) Procedure for Adjustments.-- (1) In general.--In the House, prior to consideration of any bill, joint resolution, amendment, or conference report, the Chairman of the Committee on the Budget shall make the adjustments set forth in subsection (a) for the incremental new budget authority in that measure and the outlays resulting from that budget authority if that measure meets the requirements set forth in subsection (a), except that no adjustment shall be made for provisions exempted for the purposes of titles III and IV of the Congressional Budget Act of 1974 under subsection (b) of this section. (2) Matters to be adjusted.--The adjustments referred to in paragraph (1) are to be made to the allocations made under this concurrent resolution on the budget pursuant to section 302(a) of the Congressional Budget Act of 1974. (d) Supplemental Appropriations for Fiscal Year 2008.--In the House, if any measure making supplemental appropriations for fiscal year 2008 is enacted, the Chairman of the Committee on the Budget shall make the appropriate adjustments in allocations and aggregates to reflect the difference between such measure and the corresponding levels assumed in this resolution. SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. (a) In General.--In the House, except as provided in subsection (b), any bill, joint resolution, amendment, or conference report making a general appropriation or continuing appropriation may not provide for advance appropriations. (b) Exceptions.--In the House, an advance appropriation may be provided for fiscal year 2010 for programs, projects, activities, or accounts identified in the joint explanatory statement of managers to accompany this resolution under the heading ``Accounts Identified for Advance Appropriations'' in an aggregate amount not to exceed $28,852,000,000 in new budget authority, and for 2011, accounts separately identified under the same heading. (c) Definition.--In this section, the term ``advance appropriation'' means any new discretionary budget authority provided in a bill or joint resolution making general appropriations or any new discretionary budget authority provided in a bill or joint resolution continuing appropriations for fiscal year 2009 that first becomes available for any fiscal year after 2009. Subtitle B--Senate Enforcement Provisions SEC. 311. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG- TERM DEFICITS. (a) Congressional Budget Office Analysis of Proposals.--The Director of the Congressional Budget Office shall, to the extent practicable, prepare for each bill and joint resolution reported from committee (except measures within the jurisdiction of the Committee on Appropriations), and amendments thereto and conference reports thereon, an estimate of whether the measure would cause, relative to current law, a net increase in deficits in excess of $5,000,000,000 in any of the 4 consecutive 10-year periods beginning with the first fiscal year that is 10 years after the budget year provided for in the most recently adopted concurrent resolution on the budget. (b) Point of Order.--It shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause a net increase in deficits in excess of $5,000,000,000 in any of the 4 consecutive 10-year periods described in subsection (a). (c) Supermajority Waiver and Appeal in the Senate.-- (1) Waiver.--This section may be waived or suspended only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (2) Appeal.--An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section. (d) Determinations of Budget Levels.--For purposes of this section, the levels of net deficit increases shall be determined on the basis of estimates provided by the Senate Committee on the Budget. (e) Sunset.--This section shall expire on September 30, 2017. (f) Repeal.--In the Senate, subsections (a) through (d) and subsection (f) of section 203 of S. Con. Res. 21 (110th Congress) shall no longer apply. SEC. 312. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY INITIATIVES, AND OTHER ADJUSTMENTS. (a) Senate Point of Order.-- (1) In general.--Except as otherwise provided in this section, it shall not be in order in the Senate to consider any bill or joint resolution (or amendment, motion, or conference report on that bill or joint resolution) that would cause the discretionary spending limits in this section to be exceeded. (2) Supermajority waiver and appeals.-- (A) Waiver.--This subsection may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (B) Appeals.--Appeals in the Senate from the decisions of the Chair relating to any provision of this subsection shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this subsection. (b) Senate Discretionary Spending Limits.--In the Senate and as used in this section, the term ``discretionary spending limit'' means-- (1) for fiscal year 2008, $1,050,478,000,000 in new budget authority and $1,094,944,000,000 in outlays; and (2) for fiscal year 2009, $1,011,718,000,000 in new budget authority and $1,106,112,000,000 in outlays; as adjusted in conformance with the adjustment procedures in subsection (c). (c) Adjustments in the Senate.-- (1) In general.--After the reporting of a bill or joint resolution relating to any matter described in paragraph (2), or the offering of an amendment thereto or the submission of a conference report thereon-- (A) the Chairman of the Senate Committee on the Budget may adjust the discretionary spending limits, budgetary aggregates, and allocations pursuant to section 302(a) of the Congressional Budget Act of 1974, by the amount of new budget authority in that measure for that purpose and the outlays flowing therefrom; and (B) following any adjustment under subparagraph (A), the Senate Committee on Appropriations may report appropriately revised suballocations pursuant to section 302(b) of the Congressional Budget Act of 1974 to carry out this subsection. (2) Matters described.--Matters referred to in paragraph (1) are as follows: (A) Continuing disability reviews and ssi redeterminations.--If a bill or joint resolution is reported making appropriations for fiscal year 2009 that appropriates $264,000,000 for continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, and provides an additional appropriation of up to $240,000,000 for continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration, then the discretionary spending limits, allocation to the Senate Committee on Appropriations, and aggregates may be adjusted by the amounts provided in such legislation for that purpose, but not to exceed $240,000,000 in budget authority and outlays flowing therefrom for fiscal year 2009. (B) Internal revenue service tax enforcement.--If a bill or joint resolution is reported making appropriations for fiscal year 2009 that appropriates $6,997,000,000 for the Internal Revenue Service for enhanced tax enforcement to address the Federal tax gap (taxes owed but not paid) and provides an additional appropriation of up to $490,000,000 for the Internal Revenue Service for enhanced tax enforcement to address the Federal tax gap, then the discretionary spending limits, allocation to the Senate Committee on Appropriations, and aggregates may be adjusted by the amounts provided in such legislation for that purpose, but not to exceed $490,000,000 in budget authority and outlays flowing therefrom for fiscal year 2009. (C) Health care fraud and abuse control.-- If a bill or joint resolution is reported making appropriations for fiscal year 2009 that appropriates up to $198,000,000 to the Health Care Fraud and Abuse Control program at the Department of Health and Human Services, then the discretionary spending limits, allocation to the Senate Committee on Appropriations, and aggregates may be adjusted by the amounts provided in such legislation for that purpose, but not to exceed $198,000,000 in budget authority and outlays flowing therefrom for fiscal year 2009. (D) Unemployment insurance improper payment reviews.--If a bill or joint resolution is reported making appropriations for fiscal year 2009 that appropriates $10,000,000 for in- person reemployment and eligibility assessments and unemployment insurance improper payment reviews, and provides an additional appropriation of up to $40,000,000 for in- person reemployment and eligibility assessments and unemployment insurance improper payment reviews, then the discretionary spending limits, allocation to the Senate Committee on Appropriations, and aggregates may be adjusted by the amounts provided in such legislation for that purpose, but not to exceed $40,000,000 in budget authority and outlays flowing therefrom for fiscal year 2009. (3) Adjustments for overseas deployments and other activities.--The Chairman of the Senate Committee on the Budget may adjust the discretionary spending limits, allocations to the Senate Committee on Appropriations, and aggregates for one or more-- (A) bills reported by the Senate Committee on Appropriations or passed by the House of Representatives; (B) joint resolutions or amendments reported by the Senate Committee on Appropriations; (C) amendments between the Houses received from the House of Representatives or Senate amendments offered by the authority of the Senate Committee on Appropriations; or (D) conference reports; making appropriations for fiscal year 2008 or 2009 for overseas deployments and other activities, by the amounts provided in such legislation for those purposes (and so designated pursuant to this paragraph), up to the amounts of budget authority specified in section 104(21) for fiscal years 2008 and 2009 and the new outlays flowing therefrom. (d) Supplemental Appropriations for Fiscal Year 2008.--If legislation making supplemental appropriations for fiscal year 2008 is enacted, the Chairman of the Senate Committee on the Budget may make the appropriate adjustments in allocations, aggregates, discretionary spending limits, and other levels of new budget authority and outlays for 2008 and 2009 to reflect the difference between such measure and the corresponding levels assumed in this resolution. (e) Inapplicability.--In the Senate, subsections (a), (b), (c), (e), and (f) of section 207 of S. Con. Res. 21 (110th Congress) shall no longer apply. SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS. (a) In General.-- (1) Point of order.--Except as provided in subsection (b), it shall not be in order in the Senate to consider any bill, joint resolution, motion, amendment, or conference report that would provide an advance appropriation. (2) Definition.--In this section, the term ``advance appropriation'' means any new budget authority provided in a bill or joint resolution making appropriations for fiscal year 2009 that first becomes available for any fiscal year after 2009, or any new budget authority provided in a bill or joint resolution making general appropriations or continuing appropriations for fiscal year 2010, that first becomes available for any fiscal year after 2010. (b) Exceptions.--Advance appropriations may be provided-- (1) for fiscal years 2010 and 2011 for programs, projects, activities, or accounts identified in the joint explanatory statement of managers accompanying this resolution under the heading ``Accounts Identified for Advance Appropriations'' in an aggregate amount not to exceed $28,852,000,000 in new budget authority in each year; and (2) for the Corporation for Public Broadcasting. (c) Supermajority Waiver and Appeal.-- (1) Waiver.--In the Senate, subsection (a) may be waived or suspended only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. (2) Appeal.--An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under subsection (a). (d) Form of Point of Order.--A point of order under subsection (a) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974. (e) Conference Reports.--When the Senate is considering a conference report on, or an amendment between the Houses in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report shall be deemed stricken, and the Senate shall proceed to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the Senate shall be debatable. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order. (f) Inapplicability.--In the Senate, section 206(a) of S. Con. Res. 21 (110th Congress) shall no longer apply. SEC. 314. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS LEGISLATION THAT CONSTITUTE CHANGES IN MANDATORY PROGRAMS WITH NET COSTS. (a) In General.--In the Senate, it shall not be in order to consider any appropriations legislation, including any amendment thereto, motion in relation thereto, or conference report thereon, that includes any provision which constitutes a change in a mandatory program producing net costs, as defined in subsection (b), that would have been estimated as affecting direct spending or receipts under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (as in effect prior to September 30, 2002) were they included in legislation other than appropriations legislation. A point of order pursuant to this section shall be raised against such provision or provisions as described in subsections (e) and (f). (b) Changes in Mandatory Programs Producing Net Costs.--A provision or provisions shall be subject to a point of order pursuant to this section if-- (1) the provision would increase budget authority in at least 1 of the 9 fiscal years that follow the budget year and over the period of the total of the budget year and the 9 fiscal years following the budget year; (2) the provision would increase net outlays over the period of the total of the 9 fiscal years following the budget year; and (3) the sum total of all changes in mandatory programs in the legislation would increase net outlays as measured over the period of the total of the 9 fiscal years following the budget year. (c) Determination.--The determination of whether a provision is subject to a point of order pursuant to this section shall be made by the Committee on the Budget of the Senate. (d) Supermajority Waiver and Appeal.--This section may be waived or suspended in the Senate only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section. (e) General Point of Order.--It shall be in order for a Senator to raise a single point of order that several provisions of a bill, resolution, amendment, motion, or conference report violate this section. The Presiding Officer may sustain the point of order as to some or all of the provisions against which the Senator raised the point of order. If the Presiding Officer so sustains the point of order as to some of the provisions (including provisions of an amendment, motion, or conference report) against which the Senator raised the point of order, then only those provisions (including provision of an amendment, motion, or conference report) against which the Presiding Officer sustains the point of order shall be deemed stricken pursuant to this section. Before the Presiding Officer rules on such a point of order, any Senator may move to waive such a point of order as it applies to some or all of the provisions against which the point of order was raised. Such a motion to waive is amendable in accordance with rules and precedents of the Senate. After the Presiding Officer rules on such a point of order, any Senator may appeal the ruling of the Presiding Officer on such a point of order as it applies to some or all of the provisions on which the Presiding Officer ruled. (f) Form of the Point of Order.--When the Senate is considering a conference report on, or an amendment between the Houses in relation to, a bill, upon a point of order being made by any Senator pursuant to this section, and such point of order being sustained, such material contained in such conference report or amendment shall be deemed stricken, and the Senate shall proceed to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion shall be debatable. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order. (g) Effectiveness.--This section shall not apply to any provision constituting a change in a mandatory program in appropriations legislation if such provision has been enacted in each of the 3 fiscal years prior to the budget year. (h) Inapplicability.--In the Senate, section 209 of S. Con. Res. 21 (110th Congress) shall no longer apply. SEC. 315. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING SHORT- TERM DEFICIT. (a) Point of Order.--It shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report (except measures within the jurisdiction of the Committee on Appropriations) that would cause a net increase in the deficit in excess of $10,000,000,000 in any fiscal year provided for in the most recently adopted concurrent resolution on the budget unless it is fully offset over the period of all fiscal years provided for in the most recently adopted concurrent resolution on the budget. (b) Supermajority Waiver and Appeal in the Senate.-- (1) Waiver.--This section may be waived or suspended only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (2) Appeal.--An affirmative vote of three-fifths of the Members, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section. (c) Determinations of Budget Levels.--For purposes of this section, the levels shall be determined on the basis of estimates provided by the Senate Committee on the Budget. (d) Sunset.--This section shall expire on September 30, 2017. Subtitle C--Other Provisions SEC. 321. OVERSIGHT OF GOVERNMENT PERFORMANCE. All committees are directed to review programs within their jurisdiction to root out waste, fraud, and abuse in program spending, giving particular scrutiny to issues raised by Government Accountability Office reports. Based on these oversight efforts and committee performance reviews of programs within their jurisdiction, committees are directed to include recommendations for improved governmental performance in their annual views and estimates reports required under section 301(d) of the Congressional Budget Act of 1974 to the appropriate Committee on the Budget. SEC. 322. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY ADMINISTRATIVE EXPENSES. (a) In General.--In the House and Senate, notwithstanding section 302(a)(1) of the Congressional Budget Act of 1974, section 13301 of the Budget Enforcement Act of 1990, and section 2009a of title 39, United States Code, the joint explanatory statement accompanying the conference report on any concurrent resolution on the budget shall include in its allocations under section 302(a) of the Congressional Budget Act of 1974 to the Committees on Appropriations amounts for the discretionary administrative expenses of the Social Security Administration and of the Postal Service. (b) Special Rule.--In the House, for purposes of applying section 302(f) of the Congressional Budget Act of 1974, estimates of the level of total new budget authority and total outlays provided by a measure shall include any off-budget discretionary amounts. SEC. 323. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND AGGREGATES. (a) Application.--Any adjustments of allocations and aggregates made pursuant to this resolution shall-- (1) apply while that measure is under consideration; (2) take effect upon the enactment of that measure; and (3) be published in the Congressional Record as soon as practicable. (b) Effect of Changed Allocations and Aggregates.--Revised allocations and aggregates resulting from these adjustments shall be considered for the purposes of the Congressional Budget Act of 1974 as allocations and aggregates contained in this resolution. (c) Budget Committee Determinations.--For purposes of this resolution, the levels of new budget authority, outlays, direct spending, new entitlement authority, revenues, deficits, and surpluses for a fiscal year or period of fiscal years shall be determined on the basis of estimates made by the appropriate Committee on the Budget. (d) Adjustments.--The Chairmen of the Budget Committees in the House and the Senate may adjust the aggregates, allocations, and other levels in this resolution for legislation which has received final Congressional approval in the same form by the House of Representatives and the Senate, and is either waiting to be presented to the President or awaiting Presidential signature at the time of final consideration of this resolution. SEC. 324. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS. Upon the enactment of any bill or joint resolution providing for a change in concepts or definitions, the Chairman of the appropriate Committee on the Budget may make adjustments to the levels and allocations in this resolution in accordance with section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 (as in effect prior to September 30, 2002). SEC. 325. EXERCISE OF RULEMAKING POWERS. Congress adopts the provisions of this title-- (1) as an exercise of the rulemaking power of the House of Representatives and the Senate and as such they shall be considered as part of the rules of each House or of that House to which they specifically apply, and these rules shall supersede other rules only to the extent that they are inconsistent with other such rules; and (2) with full recognition of the constitutional right of either the House of Representatives or the Senate to change those rules at any time, in the same manner, and to the same extent as in the case of any other rule of the House of Representatives or the Senate. TITLE IV--POLICY SEC. 401. POLICY OF THE HOUSE ON MIDDLE-INCOME TAX RELIEF. It is the policy of the House to-- (1) minimize fiscal burdens on middle-income families and their children and grandchildren; (2) provide immediate relief for the tens of millions of middle-income households who would otherwise be subject to the alternative minimum tax (AMT) under current law, in the context of permanent, revenue-neutral AMT reform; and (3) support extension of middle-income tax relief and enhanced economic equity through policies such as-- (A) extension of the child tax credit; (B) extension of marriage penalty relief; (C) extension of the 10 percent individual income tax bracket; (D) elimination of estate taxes on all but a minute fraction of estates by reforming and substantially increasing the unified tax credit; (E) extension of the research and experimentation tax credit; (F) extension of the deduction for State and local sales taxes; (G) extension of the deduction for small business expensing; and (H) enactment of a tax credit for school construction bonds. The House assumes that the cost of enacting such policies is offset by reforms within the Internal Revenue Code of 1986 that promote a fairer distribution of taxes across families and generations, economic efficiency, higher rates of tax compliance to close the tax gap, and reduced taxpayer burdens through tax simplification. SEC. 402. POLICY ON DEFENSE PRIORITIES. It is the policy of this resolution that-- (1) the Administration's budget requests should comply with section 1008, Public Law 109-364, the John Warner National Defense Authorization Act for Fiscal Year 2009, and the Administration should no longer attempt to fund overseas military operations through emergency supplemental appropriations requests; (2) the Department of Defense should exclude nonwar requirements from its funding requests for Iraq and Afghanistan; (3) implementing the recommendation of the National Commission on Terrorist Attacks Upon the United States (commonly referred to as the 9/11 Commission) to adequately fund cooperative threat reduction and nuclear nonproliferation programs (securing ``loose nukes'') is a high priority and should receive far greater emphasis than the President's budget provides; (4) readiness of our troops, particularly the National Guard and Reserve, is a high priority, and that greater emphasis needs to be placed on mitigating equipment and training shortfalls; (5) TRICARE fees for military retirees under the age of 65 should not be increased as the President's budget proposes; (6) military pay and benefits should be enhanced to improve the quality of life of military personnel; (7) improving military health care services continues to be a high priority and adequate funding to ensure quality health care for returning combat veterans should be provided; (8) sufficient funds should be provided to the military services to expedite review of cases involving servicemembers who could have been erroneously discharged from service for a personality disorder, which resulted in a loss of benefits or care, as a result of a combat-related psychological injury (such as Post Traumatic Stress Disorder) or a closed head injury (such as Traumatic Brain Injury); (9) higher priority defense needs could be addressed by funding missile defense at an adequate but lower level, not providing funding for development of space-based missile defense interceptors, and by restraining excessive cost and schedule growth in defense research, development and procurement programs; (10) the Department of Defense should reassess current defense plans to ensure that weapons developed to counter Cold War-era threats are not redundant and are applicable to 21st century threats; (11) sufficient resources should be provided for the Department of Defense to do an aggressive job of addressing as many as possible of the 1,260 pending recommendations made by the Government Accountability Office (GAO) over the last 7 years to improve practices at the Department of Defense, including investigation of the billions of dollars of obligations, disbursements and overcharges for which the Department of Defense cannot account; (12) savings from the actions recommended in paragraphs (9) and (11) of this section should be used to fund the priorities identified in paragraphs (3) through (8); (13) the Department of Defense report to Congress on its assessment of cold war weapons and progress on implementing GAO recommendations as outlined in paragraphs (10) and (11) by a time determined by the appropriate authorizing committees; and (14) the GAO report to the appropriate congressional committees by the end of the 110th Congress regarding the Department of Defense's progress in implementing its audit recommendations. TITLE V--SENSE OF THE SENATE AND CONGRESS Subtitle A--Sense of the Senate SEC. 501. SENSE OF THE SENATE REGARDING MEDICAID ADMINISTRATIVE REGULATIONS. (a) Findings.--The Senate makes the following findings: (1) The Medicaid program provides essential health care and long-term care services to approximately 60,000,000 low-income children, pregnant women, parents, individuals with disabilities, and senior citizens. It is a Federal guarantee that ensures the most vulnerable will have access to needed medical services. (2) Medicaid provides critical access to long-term care and other services for the elderly and individuals living with disabilities, and is the single largest provider of long-term care services. Medicaid also pays for personal care and other supportive services that are typically not provided by private health insurance or Medicare, but are necessary to enable individuals with spinal cord injuries, developmental disabilities, neurological degenerative diseases, serious and persistent mental illnesses, HIV/AIDS, and other chronic conditions to remain in the community, to work, and to maintain independence. (3) Medicaid supplements the Medicare program for about 7,500,000 low-income elderly or disabled Medicare beneficiaries, assisting them with their Medicare premiums and co-insurance, wrap-around benefits, and the costs of nursing home care that Medicare does not cover. The Medicaid program spends over $100,000,000,000 on uncovered Medicare services. (4) Medicaid provides health insurance for more than one-quarter of America's children and is the largest purchaser of maternity care, paying for more than one-third of all the births in the United States each year. Medicaid also provides critical access to care for children with disabilities, covering more than 70 percent of poor children with disabilities. (5) More than 21,000,000 women depend on Medicaid for their health care. Women comprise the majority of seniors (64 percent) on Medicaid. Half of nonelderly women with permanent mental or physical disabilities have health coverage through Medicaid. Medicaid provides treatment for low-income women diagnosed with breast or cervical cancer in every State. (6) Medicaid is the Nation's largest source of payment for mental health services, HIV/AIDS care, and care for children with special needs. Much of this care is either not covered by private insurance or limited in scope or duration. Medicaid is also a critical source of funding for health care for children in foster care and for health services in schools. (7) Medicaid funds help ensure access to care for all Americans. Medicaid is the single largest source of revenue for the Nation's safety net hospitals, health centers, and nursing homes, and is critical to the ability of these providers to adequately serve all Americans. (8) Medicaid serves a major role in ensuring that the number of Americans without health insurance, approximately 47,000,000 in 2006, is not substantially higher. The system of Federal matching for State Medicaid expenditures ensures that Federal funds will grow as State spending increases in response to unmet needs, enabling Medicaid to help buffer the drop in private coverage during recessions. (9) The Bush Administration has issued several regulations that shift Medicaid cost burdens onto States and put at risk the continued availability of much-needed services. The regulations relate to Federal payments to public providers, and for graduate medical education, rehabilitation services, school-based administration, school-based transportation, optional case management services. (b) Sense of the Senate.--It is the sense of the Senate that administrative regulations should not-- (1) undermine the role the Medicaid program plays as a critical component of the health care system of the United States; (2) cap Federal Medicaid spending, or otherwise shift Medicaid cost burdens to State or local governments and their taxpayers and health providers, forcing a reduction in access to essential health services for low-income elderly individuals, individuals with disabilities, and children and families; or (3) undermine the Federal guarantee of health insurance coverage Medicaid provides, which would threaten not only the health care safety net of the United States, but the entire health care system. Subtitle B--Sense of the Congress SEC. 511. SENSE OF THE CONGRESS ON SERVICEMEMBERS' AND VETERANS' HEALTH CARE AND OTHER PRIORITIES. It is the sense of the Congress that-- (1) the Congress supports excellent health care for current and former members of the United States Armed Services--they have served well and honorably and have made significant sacrifices for this Nation; (2) this resolution provides $48,202,000,000 in discretionary budget authority for 2009 for Function 700 (Veterans Benefits and Services), including veterans' health care, which is $4,940,000,000 more than the 2008 level, $3,654,000,000 more than the Congressional Budget Office's baseline level for 2009, and $3,284,000,000 more than the President's budget for 2009; and also provides more discretionary budget authority than the President's budget in every year after 2009; (3) this resolution provides funding to continue addressing problems such as those identified at Walter Reed Army Medical Center to improve military and veterans' health care facilities and services; (4) this resolution assumes the rejection of the health care enrollment fees and pharmaceutical co- payment increases in the President's budget; (5) this resolution provides additional funding above the President's inadequate budget levels for the Department of Veterans Affairs to research and treat veterans' mental health, post-traumatic stress disorder, and traumatic brain injury; and (6) this resolution provides additional funding above the President's inadequate budget levels for the Department of Veterans Affairs to improve the speed and accuracy of its processing of disability compensation claims, including funding to hire additional personnel above the President's requested level. SEC. 512. SENSE OF THE CONGRESS ON HOMELAND SECURITY. It is the sense of the Congress that-- (1) this resolution assumes additional homeland security funding above the President's requested level for 2009 and every subsequent year; (2) this resolution assumes funding above the President's requested level for 2009, and additional amounts in subsequent years, in the four budget functions--Function 400 (Transportation), Function 450 (Community and Regional Development), Function 550 (Health), and Function 750 (Administration of Justice)--that fund most nondefense homeland security activities; and (3) the homeland security funding provided in this resolution will help to strengthen the security of our Nation's transportation system, particularly our ports where significant security shortfalls still exist and foreign ports, by expanding efforts to identify and scan all high-risk United States-bound cargo, equip, train and support first responders (including enhancing interoperable communications and emergency management), strengthen border patrol, and increase the preparedness of the public health system. SEC. 513. SENSE OF THE CONGRESS REGARDING LONG-TERM FISCAL REFORM. It is the sense of the Congress that-- (1) both the Government Accountability Office and the Congressional Budget Office have warned that the Federal budget is on an unsustainable path of rising deficits and debt; (2) using recent trend data and reasonable policy assumptions, CBO has projected that the gap between spending and revenues over the next 75 years will reach 6.9 percent of GDP; (3) publicly held debt will rise from 36 percent today to 400 percent of GDP by the decade beginning in 2050 under CBO's alternative policy scenario; (4) the most significant factor affecting the long- term Federal fiscal landscape is the expectation that total public and private health spending will continue to grow faster than the economy; (5) the Congress calls upon governmental and nongovernmental experts to develop specific options to reform the health care system and control costs, that further research and analysis on topics including comparative effectiveness, health information technology, preventative care, and provider incentives is needed, and that of critical importance is the development of a consensus on the appropriate methods for estimating the budgetary impact and health outcome effects of these proposals; and (6) immediate policy action is needed to address the long-term fiscal challenges facing the United States, including the rising costs of entitlements, in a manner that is fiscally responsible, equitable, and lasting, and that also honors commitments made to beneficiaries, and that such action should be bipartisan, bicameral, involve both legislative and executive branch participants, as well as public participation, and be conducted in a manner that ensures full, fair, and timely Congressional consideration. SEC. 514. SENSE OF THE CONGRESS REGARDING WASTE, FRAUD, AND ABUSE. It is the sense of the Congress that-- (1) all committees should examine programs within their jurisdiction to identify wasteful and fraudulent spending; (2) title III of this resolution includes cap adjustments to provide appropriations for agencies that control programs that accounted for a significant share of improper payments reported by Federal agencies: Social Security Administration Continuing Disability Reviews, the Medicare/Medicaid Health Care Fraud and Abuse Control Program, and Unemployment Insurance Program Integrity; (3) title III also includes a cap adjustment for the Internal Revenue Services for tax compliance efforts to close the $345,000,000,000 tax gap; (4) the resolution's deficit-neutral reserve funds require authorizing committees to cut lower priority and wasteful spending to accommodate any new high- priority entitlement benefits; and (5) title III of the resolution directs all committees to review the performance of programs within their jurisdiction and report recommendations annually to the appropriate Committee on the Budget as part of the views and estimates process required by section 301(d) of the Congressional Budget Act. SEC. 515. SENSE OF THE CONGRESS REGARDING EXTENSION OF THE STATUTORY PAY-AS-YOU-GO RULE. It is the sense of the Congress that to reduce the deficit, Congress should extend PAYGO consistent with provisions of the Budget Enforcement Act of 1990. SEC. 516. SENSE OF THE CONGRESS ON LONG-TERM BUDGETING. It is the sense of the Congress that the determination of the congressional budget for the United States Government and the President's budget request should include consideration of the Financial Report of the United States Government, especially its information regarding the Government's net operating cost, financial position, and long-term liabilities. SEC. 517. SENSE OF THE CONGRESS REGARDING AFFORDABLE HEALTH COVERAGE. It is the sense of the Congress that-- (1) nearly 47 million Americans, including nine million children, lack health insurance; (2) people without health insurance are more likely to experience problems getting medical care and to be hospitalized for avoidable health problems; (3) most Americans receive health coverage through their employers, and a major issue facing all employers is the rising cost of health insurance; (4) small businesses, which have generated most of the new jobs annually over the last decade, have an especially difficult time affording health coverage, because of higher administrative costs and fewer people over whom to spread the risk of catastrophic costs; (5) because it is especially costly for small businesses to provide health coverage, their employees make up a large proportion of the Nation's uninsured individuals; and (6) legislation consistent with the pay-as-you-go principle should be adopted that makes health insurance more affordable and accessible, with attention to the special circumstances affecting employees of small businesses, and that lowers costs and improves the quality of health care by encouraging integration of health information technology tools into the practice of medicine, by expanding comparative effectiveness research, and by promoting improvements in disease management and disease prevention. SEC. 518. SENSE OF THE CONGRESS REGARDING PAY PARITY. It is the sense of the Congress that rates of compensation for civilian employees of the United States should be adjusted at the same time, and in the same proportion, as are rates of compensation for members of the uniformed services. SEC. 519. SENSE OF THE CONGRESS REGARDING SUBPRIME LENDING AND FORECLOSURES. It is the sense of the Congress that-- (1) over the last six months, the Nation has experienced a significant increase in the number of homeowners facing the risk of foreclosure with estimates of as many as 2.8 million subprime and other distressed borrowers facing the loss of their homes over the next five years; (2) the rise in foreclosures not only has an immediate, devastating impact on homeowners and their families, but it also has ripple effects-- (A) local communities experiencing high levels of foreclosures experience deterioration as a result of the large number of vacant foreclosed and abandoned homes; (B) rising foreclosure rates can accelerate drops in home prices, affecting all homeowners; and (C) home mortgage default and foreclosure rates increase risk for lenders, further restricting the availability of credit, which can in turn slow economic growth; and (3) the rise in foreclosures is not only a crisis for subprime borrowers, but a larger problem for communities as a whole, and considering the multi- layered effects of increasing foreclosures, the Congress should consider steps to address this complex problem. SEC. 520. SENSE OF THE CONGRESS REGARDING THE NEED TO MAINTAIN AND BUILD UPON EFFORTS TO FIGHT HUNGER. It is the sense of the Congress that-- (1) 35.5 million Americans (12.6 million of them children) are food insecure--uncertain of having, or unable to acquire, enough food, and that 11.1 million Americans are hungry because of lack of food; (2) despite the critical contributions of the Department of Agriculture nutrition programs (particularly the food stamp program), which significantly reduced payment error rates while providing help to partially mitigate the effects of rising poverty and unemployment, significant need remains, even among families that receive food stamps; (3) nearly 25 million people, including more than nine million children and nearly three million seniors, sought emergency food assistance from food pantries, soup kitchens, shelters, and local charities last year; (4) additional resources are needed to ensure that nutrition assistance keeps up with inflation and rising food prices; and (5) Department of Agriculture programs that help us fight hunger should be maintained and the Congress should continue to seize opportunities to reach Americans in need and to fight hunger. SEC. 521. SENSE OF THE CONGRESS REGARDING THE IMPORTANCE OF CHILD SUPPORT ENFORCEMENT. It is the sense of the Congress that-- (1) additional legislative action is needed to ensure that States have the necessary resources to collect all child support that is owed to families and to allow them to pass 100 percent of support on to families without financial penalty; and (2) when 100 percent of child support payments are passed to the child, rather than administrative expenses, program integrity is improved and child support participation increases. SEC. 522. SENSE OF THE CONGRESS ON THE INNOVATION AGENDA AND AMERICA COMPETES ACT. It is the sense of the Congress that-- (1) the Congress should provide sufficient funding so that our Nation may continue to be the world leader in education, innovation and economic growth; (2) last year, Congress passed and the President signed the America COMPETES Act, bipartisan legislation designed to ensure that American students, teachers, businesses, and workers are prepared to continue leading the world in innovation, research, and technology well into the future; (3) this resolution supports the efforts authorized in the America COMPETES Act, providing substantially increased funding above the President's requested level for 2009, and increased amounts after 2009 in Function 250 (General Science, Space and Technology) and other functions; (4) additional increases for scientific research and education are included in Function 270 (Energy), Function 300 (Environment and Natural Resources), Function 500 (Education, Employment, Training and Social Services), and Function 550 (Health), all of which receive more funding than the President's budget provides; (5) because America's greatest resource for innovation resides within classrooms across the country, the increased funding provided in this resolution will support initiatives within the America COMPETES Act to educate tens of thousands of new scientists, engineers, and mathematicians, and place highly qualified teachers in math and science K-12 classrooms; and (6) because independent scientific research provides the foundation for innovation and future technologies, this resolution will keep us on the path toward doubling funding for the National Science Foundation, basic research in the physical sciences, and collaborative research partnerships, and toward achieving energy independence through the development of clean and sustainable alternative energy technologies. And the House agree to the same. John Spratt, Rosa L. DeLauro, Chet Edwards, Managers on the Part of the House. Kent Conrad, Patty Murray, Ron Wyden, Managers on the Part of the Senate. JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the House to the concurrent resolution (S. Con. Res. 70), setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: The House amendment struck all of the Senate concurrent resolution after the resolving clause and inserted the House- passed concurrent resolution on the budget (H. Con. Res. 312) as a substitute text. The Senate recedes from its disagreement to the amendment of the House with an amendment that is a substitute for the Senate concurrent resolution and the House amendment. The differences between the Senate concurrent resolution, the House amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clarifying changes. DISPLAYS AND AMOUNTS The required contents of concurrent budget resolutions are set forth in section 301(a) of the Congressional Budget Act of 1974. The years in this document are fiscal years unless otherwise noted. The treatment of budget function levels in the House- passed and Senate-passed budget resolutions and the conference report is as follows: House-passed Resolution The House resolution includes all of the items required as part of a concurrent budget resolution under section 301(a) of the Congressional Budget Act other than the spending and revenue levels for Social Security (which are used to enforce a point of order applicable only in the Senate). Senate-passed Resolution The Senate concurrent resolution includes all of the items required under section 301(a) of the Congressional Budget Act. Conference Agreement The conference agreement includes all of the items required by section 301(a) of the Congressional Budget Act. AGGREGATE AND FUNCTION LEVELS Pursuant to section 301(a)(4) of the Congressional Budget Act, the budget resolution must set appropriate levels for each major functional category based on the 302(a) allocations and the budgetary totals. The respective levels of the House concurrent resolution, the Senate concurrent resolution, and conference agreement for each major budget function, as well as revenue totals, are discussed in the section after the numerical tables. A summary of the overall budget policy is as follows: Total spending is $3.034 trillion in budget authority (BA) and $3.066 trillion in outlays in 2009, and $16.155 trillion in BA and $16.228 trillion in outlays over 2009-2013. Discretionary spending for 2009 totals $1.088 trillion in BA and $1.183 trillion in outlays in 2009, and $5.328 trillion in BA and $5.719 trillion in outlays over 2009-2013. Excluding funding for overseas deployments and other activities, discretionary spending for 2009 totals $1.013 trillion in BA and $1.075 trillion in outlays. These aggregate amounts (minus cap adjustments for program integrity initiatives) are allocated to the Appropriations Committees to be suballocated among their respective appropriations subcommittees. Mandatory spending totals $1.945 trillion in BA and $1.883 trillion in outlays in 2009, and $10.827 trillion in BA and $10.509 trillion in outlays over 2009-2013. Revenue totals $2.725 trillion in 2009, and $15.637 trillion over five years. Specific policies will be determined by the Committee on Finance in the Senate and the Committee on Ways and Means in the House. The conference agreement uses the Congressional Budget Office (CBO) March baseline, updated for legislation that has passed the Congress since the baseline was developed. The conference agreement reduces the budget deficit from $340.4 billion in 2009, to a surplus of $21.9 billion in 2012 and remains in surplus in 2013. The following section describes the conference agreement's revenue levels and spending according to the budget's functional categories. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> REVENUES Summary The revenue component of the budget resolution reflects all of the federal government's tax receipts that are classified as ``on-budget.'' This includes individual income taxes; corporate income taxes; excise taxes, such as the gasoline tax; and other taxes, such as estate and gift taxes. Taxes collected for the Social Security system--the Old Age and Survivors and Disability Insurance (OASDI) payroll tax--are ``off-budget.'' The Hospital Insurance payroll tax portion of Medicare, the Federal Unemployment Tax Act payroll tax, railroad retirement and other retirement systems are all ``on- budget.'' Customs duties, tariffs, and other miscellaneous receipts are also included in the revenue component. Pursuant to the Congressional Budget Act of 1974 and the Budget Enforcement Act of 1990, Social Security payroll taxes are not included in the budget resolution. House-passed Resolution The House budget resolution matches the total level of revenues under the CBO baseline over the 2008-2013 period, with revenue losses in 2009 and an offsetting gain in 2010-2013, consistent with the resolution's reconciliation instruction to the Ways and Means Committee regarding revenue. For the unified budget, the House resolution calls for a total of $2.7 trillion in revenues for 2009, and $16.0 trillion over five years. (The budget resolution provides only the on-budget amounts, which are $2.0 trillion in revenues for 2009, and $12.1 trillion over five years.) By following the baseline revenue total for 2008-2013, the House resolution achieves current-law total revenue levels, but does not assume maintaining current tax law. Thus, the House-passed budget resolution accommodates reform of the Alternative Minimum Tax (AMT) and extension of tax cuts benefitting middle-income households (including, but not limited to, the child tax credit, marriage penalty relief, the 10 percent bracket, and the deduction for State and local sales taxes), as long as such changes to tax law are accomplished, consistent with the House pay-as-you-go rule, in a deficit- neutral manner over the 2008-2013 and 2008-2018 periods. The House resolution also accommodates deficit-neutral extension of other expiring tax provisions, such as the research and experimentation tax credit and the deduction for small business expensing. In addition, the House resolution accommodates deficit-neutral elimination of estate taxes on all but a minute fraction of estates by reforming and substantially increasing the unified tax credit. It also accommodates other high priority deficit-neutral revenue adjustments, such as tax incentives for energy efficiency and renewable energy, and a tax credit for local bonds to support the repair or construction of public schools. Senate-passed Resolution The Senate budget resolution includes $2.0 trillion in on-budget revenues for 2009, and $11.7 trillion over 2009-2013. (The corresponding revenue figures on a unified basis are $2.7 trillion for 2009 and $15.6 trillion over five years.) The revenue level in the Senate resolution is $407.5 billion below the levels in the CBO baseline over 2008-2013. This provides for one year of relief from the AMT, protecting more than 20 million taxpayers from being subject to the AMT in 2008. It also provides for the extension after 2010 of middle- class tax relief--child tax credit, the 10 percent bracket, and marriage penalty relief--as well as continuation of the estate tax at 2009 levels adjusted for inflation. In addition, this revenue level accommodates a number of other tax policies, such as property tax relief; relief to those whose homes were damaged or destroyed by Hurricanes Katrina and Rita; tax relief for America's troops and veterans; enhancement of the refundable portion of the child tax credit; and extension of the adoption and dependent care tax credits. Finally, this total accommodates revenue provisions that could be part of an overall economic stimulus package. The Senate resolution also includes the effects of a number of other tax policies whose cost is offset over the period covered by the resolution. For instance, the resolution reflects tax relief to make college education more affordable and reflects incentives to encourage the development of renewable energy, promote more conservation and energy efficiency, and reduce dependence on foreign energy supplies. In a similar fashion, the resolution assumes that tax provisions that have been routinely extended in the past will be extended and that their cost will be offset. In addition, the Senate resolution includes several reserve funds that provide for tax relief, including refundable tax relief and the extension of expiring tax relief, as long as the costs of these provisions are offset. These deficit-neutral reserve funds would accommodate, for instance, tax policies designed to encourage the continued production in the United States of advanced technologies, extend enhanced charitable giving from individual retirement accounts, make it easier for companies to use accumulated alternative minimum tax and research and development credits, reduce the cost of teacher out-of-pocket expenses for classroom supplies, encourage highly qualified teachers to serve in high-needs schools, extend existing energy tax incentives as well as provide additional incentives for clean-burning wood stoves, cellulosic ethanol production, plug-in hybrid vehicles, and energy-efficient buildings, products, and power plants. Deficit-neutral reserve funds in the resolution also address AMT reform and reducing the income threshold for the refundable portion of the child tax credit starting in 2009. The Senate resolution assumes that any additional revenues needed under the resolution can be achieved by closing the tax gap, shutting down abusive tax shelters, addressing offshore tax havens, and without raising taxes. To help close the tax gap and bolster Internal Revenue Service (IRS) enforcement, the resolution fully funds the President's budget request for the IRS, including additional resources available through a discretionary cap adjustment that directs $490 million to IRS enforcement activities. Conference Agreement The conference agreement includes $2.0 trillion in on- budget revenues for 2009, and $11.8 trillion over 2009-2013. (The corresponding revenue figures on a unified basis are $2.7 trillion for 2009 and $15.6 trillion over five years.) The conference agreement provides immediate relief from the AMT, with its cost fully offset. The agreement supports tax relief to benefit the middle class--including extension of the child tax credit, 10 percent bracket, and marriage penalty relief-- and provides for estate tax reform. In addition, the agreement reflects the effects of tax policies in other areas, such as energy and education tax incentives and the extension of expiring and expired provisions, whose costs are offset over the period covered by the resolution. Further, the agreement includes several deficit-neutral reserve funds that provide for a wide range of tax policies. The revenue level in the conference agreement is $340.570 billion below the levels under current law over 2008-2013. Revenue legislation is subject to House and Senate pay-as-you- go rules. In addition, the House reserve fund adjustment for revenue measures (section 220)--the House ``trigger'' mechanism--creates a second procedural hurdle in the House only, in addition to the pay-as-you-go rule, to ensure fiscal responsibility. NATIONAL DEFENSE: FUNCTION 050 Function Summary The National Defense function includes the military activities of the Department of Defense (DoD), the nuclear weapons-related activities of the Department of Energy (DOE) and the National Nuclear Security Administration, and the national security activities of several other agencies such as the Selective Service, Coast Guard, and Federal Bureau of Investigation. The programs in this function include: the pay and benefits of active, Guard, and reserve military personnel; DoD operations including training, maintenance of equipment, and facilities; health care for military personnel and dependents; procurement of weapons; research and development; construction of military facilities, including housing; research on nuclear weapons; and the cleanup of nuclear weapons production facilities. House-passed Resolution The House resolution reflects a total of $542.5 billion in BA and $573.4 billion in outlays in 2009, and $2.8 trillion in BA and outlays over five years. There is no higher priority than the defense of our nation. The House resolution accordingly provides robust funding for Function 050 (National Defense). The House resolution calls, however, for a reallocation of resources to address the most severe threats facing the nation, to emphasize readiness, to guarantee first- rate health care for members of our armed forces, and to improve the quality of life of our troops and their families. The House resolution also calls for greater accountability at the Department of Defense. It includes assumptions on specific defense policy in Title V, section 502. The National Commission on Terrorist Attacks Upon the United States (commonly referred to as the 9/11 Commission) identified terrorists with weapons of mass destruction as one of the nation's gravest threats. It recommended that Congress supply more resources to secure nuclear weapons and the fissile materials used in making these weapons. It is the policy of the House resolution that non-proliferation programs, such as the Cooperative Threat Reduction program, be given greater priority and higher funding. As a result of our overseas deployments, military readiness has suffered, especially the readiness of our National Guard and Reserve. The Commission on National Guard and Reserve concluded in its final report, issued on January 31, 2008, that there are substantial shortcomings in the nation's ability to respond during a national crisis. In view of this, the House resolution calls for greater attention to mitigating readiness shortfalls to ensure our military is ready when called upon. The country owes a great debt of gratitude to those who have sacrificed and to those who are currently sacrificing by serving in the Armed Forces. To honor their service, the country should not only support the troops when they are called to duty, but it should also improve the quality of life of the troops and their families, and ensure that the resources are available when they are discharged from service to provide them the excellent health care they deserve and the assistance they need to make the transition to civilian life. For that reason, the House resolution opposes TRICARE fee increases proposed by the President and calls for a substantial increase in funding for the veterans' health care system. The House resolution provides funding to continue addressing problems such as those identified at Walter Reed Army Medical Center. The House resolution also calls for enhanced pay and benefits to improve the quality of life of the troops and their families, including emphasis on providing adequate funding for programs like the Yellow Ribbon Reintegration Program, which provides support and assistance to troops and their families while they are deployed and when they return from deployments to readjust to civilian life. The President's 2009 budget is noncompliant with section 1008, Public Law 109-364, the John Warner National Defense Authorization Act for Fiscal Year 2007, by excluding a full request for overseas military operations. The House resolution reaffirms section 1008. It also calls on the Administration to end the practice of including non-war requirements in funding requests for overseas military operations as a way to avoid making tradeoffs in the defense budget. The Congressional Budget Office reported in September 2007 that 40 percent of supplemental funds requested for Army ``reset'' (fixing and replacing equipment) was instead used for upgrading the capability of weapons systems and procuring new equipment to eliminate shortfalls, and in some cases, shortfalls that were long-standing. It is the policy of the House resolution that missile defense acquisition be funded at lower, but still adequate levels and development of space-based interceptors as part of the missile defense program should be de-emphasized. The House resolution also points out the need to restrain excessive cost and schedule growth in defense research, development, and procurement programs. DoD has allowed the cost of its major acquisition programs to grow at an unsustainable rate. The Department's major acquisition programs grew by more than $392 billion above their initial projections from 2002 to 2007. The House resolution recognizes the need for DoD to root out wasteful spending with far more diligence. Eighteen years after passage of the Chief Financial Officers Act of 1990, DoD still cannot pass a standard audit. The Department cannot adequately track what it owns or what it spends in its annual budgets. DoD has awarded contracts for its foreign deployments that have been grossly more wasteful than domestic contracts, especially in Iraq. Furthermore, DoD continues to fund weapons systems that were developed years ago to counter Cold War era threats, which may not be as effective in protecting the nation from today's threats. Over the last seven years, the Government Accountability Office (GAO) has performed numerous audits of DoD's financial management, contracting, and business practices. GAO made 2,864 recommendations, of which 1,260 have yet to be implemented. The House resolution assumes that enhancing accounting practices at DoD and implementing many GAO recommendations would yield substantial savings that could be applied to other security needs, including those mentioned above. The House resolution also encourages the committees with jurisdiction over defense to conduct more oversight with the objective of ferreting out wasteful practices, fraud, and abuse. It encourages the committees to require DoD to report to Congress on its progress in implementing GAO audit recommendations and to report on the applicability of Cold War era weapons to 21st century challenges. The House resolution also directs GAO to report by the end of the 110th Congress on DoD's progress in implementing its audit recommendations. The House resolution also recognizes the need for DoD to do a better job of reconciling its plans with its budget, including the Navy's shipbuilding plan. Unrealistic expectations of technology development and ship designs have led to high unit costs and a plan that is not viable in terms of providing the Navy with an adequate ship force, or the shipbuilding industrial base with a sustainable level of work. The House resolution therefore encourages more congressional oversight to ensure the Administration puts more emphasis on developing a viable shipbuilding plan to maintain a naval ship force and a shipbuilding industrial base that meets the challenges of the 21st century. In addition to emphasizing nuclear nonproliferation programs at the Department of Energy, the House recognizes the importance of the Department's Environmental Management program and that nuclear cleanup activities are a high priority. For mandatory programs, the House resolution matches the President's request. Senate-passed Resolution The Senate resolution calls for a total of $612.5 billion in BA and $645.4 billion in outlays for 2009, and $2.9 trillion in BA and $3.0 trillion in outlays over five years. This includes full funding for the President's requests for war costs in 2008 and 2009. Excluding requested war funds, the Senate resolution provides $542.5 billion in BA for defense in 2009, an increase of $26.2 billion in BA over the 2008 level adjusted for inflation. The Senate resolution provides for a 3.4 percent pay raise for military personnel, and again rejects the President's proposals for new TRICARE enrollment fees and deductibles for military retirees under the age of 65. The Senate resolution also assumes no less than $5.8 billion in funding for the Defense Environmental Cleanup account, an increase of $500 million compared to the President's request. The environmental management program is charged with efficiently cleaning up the environmental damage resulting from 50 years of nuclear weapons production. The President's budget underfunded cleanup efforts at several major sites addressed under this program including Hanford, Idaho Falls, Oak Ridge, and Savannah River. This increase brings total environmental management funding for nuclear site cleanup (including amounts in other budget functions) to $6.4 billion. The National Guard has a long history of outstanding service to our nation, and our nation's reliance on the Guard has only increased since September 11, 2001. The Senate resolution assumes that the Department of Defense will provide at least $49.1 billion to recruit, train, equip, and sustain National Guard and Reserve units. The Appropriations Committee is encouraged to identify additional resources within the defense budget to address critical needs for National Guard equipment left unfunded in the President's budget. Some servicemembers injured in Iraq and Afghanistan have been inappropriately given ``personality disorder'' discharges that cost them access to various veterans' benefits and care. The defense funding level in the Senate resolution includes an amendment addressing the backlog at the military services' respective Boards for the Correction of Military Records to allow these servicemembers to have their discharges promptly reviewed and, if appropriate, upgraded to ``honorable'' status. The Administration continues to seek war funding as an emergency, five years into the war in Iraq. The Armed Services and Foreign Relations Committees have indicated that they believe these costs should no longer be handled on an emergency basis. The Senate resolution includes a $70 billion cap adjustment provision that allows the Chairman of the Budget Committee to revise the discretionary spending cap for non- emergency appropriations related to the wars in Iraq and Afghanistan. The Senate resolution's levels of deficits and debt assume that this cap adjustment is fully utilized. The existence of this cap adjustment would not prevent the Appropriations Committee from reporting emergency supplemental appropriations legislation if war costs exceed the allotted level. Emergency funding falls outside the discretionary spending caps included in the resolution, and hence does not require an adjustment. The Senate resolution also includes a program integrity cap adjustment dedicated to reducing waste in defense contracting. The cap adjustment allows the Chairman of the Budget Committee to increase the discretionary spending cap by up to $100 million to accommodate legislation appropriating funding for the Department of Defense for additional activities to reduce waste, fraud, abuse and overpayments in defense contracting; achieve the legal requirement for the Pentagon to submit auditable financial statements; reduce waste by improving accounting for and ordering of spare parts; or subject contracts performed outside the United States to the same ethical standards as those performed domestically. When billions of dollars are wasted due to poor contracting practices, ordering of unneeded spare parts, or other waste, fraud and abuse, it is our troops that suffer. Conference Agreement The conference agreement for Function 050 includes a total of $542.5 billion in BA and $573.4 billion in outlays in 2009, and $2.8 trillion in BA and outlays over five years. The conference agreement does not assume enactment of the President's proposals for new TRICARE enrollment fees and deductibles for military retirees under the age of 65. Consistent with both the House- and Senate-passed resolutions, the conference agreement affirms the need for increased emphasis on programs to provide support to troops and their families while troops are deployed and to assist with reintegration when troops return from deployments. The conference agreement also reaffirms the importance of adequate funding for atomic energy defense environmental cleanup activities. For mandatory programs, the conference agreement is consistent with current law. The conference agreement reflects the cost of overseas deployments and other activities in Function 970, as in the House-passed resolution. The conference agreement also includes two deficit- neutral reserve funds (section 202 and section 203 in the House, and section 225 and section 226 in the Senate) to accommodate initiatives related to meeting our commitments to the nation's military personnel and veterans, and their survivors. The conference agreement includes a statement of policy on defense issues (section 402) that outlines key priorities to be funded within the defense allocation and the need for the Department of Defense to do a better job of reining in wasteful spending, particularly with regard to contracting practices and continuing funding of Cold War era weapons systems that may not be as effective against today's threats. Consistent with the Senate-passed resolution, the statement of policy also calls for expediting review of cases involving former servicemembers suffering from post traumatic stress disorder or a traumatic brain injury and whose discharge from service was handled erroneously, resulting in a loss of benefits or care. INTERNATIONAL AFFAIRS: FUNCTION 150 Function Summary Function 150 covers funding for U.S. international activities, including: operating and securing U.S. embassies and consulates throughout the world; providing military assistance to allies; assisting refugees; aiding developing nations; dispensing economic assistance to fledgling democracies; promoting U.S. exports abroad; making U.S. payments to international organizations; and contributing to international peacekeeping efforts. The major agencies in this function include the Departments of State, Agriculture, and the Treasury; the U.S. Agency for International Development; and the Millennium Challenge Corporation. House-passed Resolution The House resolution calls for a total of $37.1 billion in BA and $35.7 billion in outlays for 2009, and for $196.0 billion in BA and $186.8 billion in outlays over five years. The function's negative mandatory budget authority and outlay levels reflect receipts of the foreign military sales trust fund, the repayment of loans and credits by foreign nations, and the liquidation of economic assistance loans, foreign military financing loans, Export-Import Bank loans, and housing and other credit guaranty programs. The House resolution's discretionary budget authority for 2009 is $4.0 billion (11.6 percent) above the 2008 level excluding emergencies and $3.3 billion (9.6 percent) more than the amount needed to maintain purchasing power at the 2008 level. The House resolution matches the President's Function 150 request for HIV/AIDS relief. The House resolution also provides funding for the Department of State to hire a significant number of new staff to strengthen the United States' diplomacy and national security. Consistent with the President's budget, the House resolution provides $2.6 billion for Foreign Military Financing (FMF) for Israel. The United States signed a new agreement with Israel in 2007 to provide $30 billion in FMF over ten years. The House resolution provides additional funding above the President's requested level for 2009 for the McGovern-Dole International Food for Education and Child Nutrition Program. This additional funding will be used to maintain and expand the number of children, especially girls, who benefit from this program as food and transportation costs rise. The House notes the importance of robust funding for child survival and health programs, development assistance, and the United States' contributions to international organizations and peacekeeping. The House notes the large amount of funding for the Millennium Challenge Corporation (MCC) that remains unobligated or unspent. MCC has received about $7.5 billion in total appropriations from 2004 through 2008. The House recognizes the humanitarian problem of millions of Iraqis who are refugees in neighboring countries or are internally displaced in Iraq. The House notes the strong support for H.R. 1595, the Guam World War II Loyalty Recognition Act, which the House approved on May 8, 2007. The bill authorizes compensation to the Guamanian victims of the Imperial Japanese military occupation during World War II. Senate-passed Resolution The Senate resolution calls for a total of $38.6 billion in BA and $39.5 billion in outlays in 2009, and $184.5 billion in BA and $183.4 billion in outlays over five years, excluding emergencies. The amount provided in 2009 is $2 million less than the President's request. Overall, the Senate resolution assumes a U.S. contribution to the Global Fund for HIV/AIDS, Tuberculosis and Malaria of $1.35 billion. In addition, the Senate resolution assumes additional funds will be provided to respond to international appeals for Iraqi refugee assistance, and for victims of humanitarian disasters in Africa and the Middle East. Conference Agreement The conference agreement provides a total of $37.2 billion in BA and $35.7 billion in outlays for 2009, and $190.2 billion in BA and $182.6 billion in outlays over five years, excluding emergencies. The conference agreement provides $38.3 billion in BA for 2009 for discretionary programs, which is $3.3 billion (9.6 percent) more than the amount needed to maintain purchasing power at the 2008 level, excluding emergencies. (The total BA and outlay levels are lower than the discretionary BA and outlay levels because this function has negative mandatory BA and outlay levels, reflecting various U.S. receipts from other nations.) GENERAL SCIENCE, SPACE AND TECHNOLOGY: FUNCTION 250 Function Summary The General Science, Space, and Technology function includes funding for the National Aeronautics and Space Administration (NASA), except aviation programs, the National Science Foundation (NSF), as well as programs in the Department of Energy (DOE) Office of Science. House-passed Resolution The House resolution calls for a total of $29.9 billion in BA and $28.7 billion in outlays for 2009, and for $162.7 billion in BA and $159.5 billion in outlays over five years. Funding in Function 250 exceeds the funding levels in the President's budget and the current services level for all five years in the budget window. Additional increases for scientific research and education are included in Function 270 (Energy), Function 300 (Environment and Natural Resources), Function 350 (Agriculture), Function 370 (Commerce and Housing Credit), Function 400 (Transportation), Function 500 (Education, Training, Employment, and Social Services), and Function 550 (Health), all of which receive more funding than the President requested. These increases will support the goals of the House Leadership's Innovation Agenda and the America COMPETES Act: To put NSF funding on a path toward doubling, to train more qualified science and math teachers, and to invest in basic research on energy technologies. Senate-passed Resolution The Senate resolution calls for a total of $30.5 billion in BA and $29.0 billion in outlays for 2009, and $154.9 billion in BA and $153.9 billion in outlays over five years. The Senate resolution assumes $18.7 billion for NASA, $1 billion above the President's 2009 request. This level of funding reflects the ongoing need to reimburse NASA for the catastrophic loss of Space Shuttle Columbia as well as the costs of investigating the Columbia tragedy. The United States' goals for space exploration were defined in the President's ``Vision for Space Exploration'' and included in the National Aeronautics and Space Administration Authorization Act of 2005, which is scheduled to be updated and renewed during the current session of Congress. The Senate resolution recognizes the importance of our nation's space program and endorsed the Act's balanced goals of exploration, science and aeronautics. The Act calls for retirement of the Space Shuttle by 2010 and launching the Crew Exploration Vehicle (CEV) as close to 2010 as possible. NASA currently projects that the CEV will not be operational before 2015, thus creating a five-year gap in U.S. human space flight capability. The Senate resolution recognizes the strategic importance of uninterrupted access to space and supports efforts to reduce this five-year gap in U.S. human space flight. In addition, the Senate resolution fully funds the President's 2009 request for programs authorized in the America COMPETES Act. These programs help to ensure that the U.S. maintains its technological innovation advantage in the global economy. Conference Agreement The conference agreement includes $30.6 billion in BA and $29.1 billion in outlays in 2009, and $164.8 billion in BA and $161.5 billion in outlays over five years. The conference agreement provides significant increases in this function in every year within the budget window for competitiveness programs that support the goals of the COMPETES Act and other Innovation programs, with additional resources provided in other functions. In addition, for NASA, the conference agreement recognizes the contributions of our nation's space program and the strategic importance of uninterrupted access to space. The conference agreement provides $18.7 billion for NASA, $1 billion above the President's budget in 2009, and significant increases in the outyears. ENERGY: FUNCTION 270 Function Summary Function 270 covers energy-related programs including research and development, environmental clean-up, and rural utility loans. Most of these programs are within the Department of Energy (DOE). This function covers about 20 percent of appropriated funding for DOE but does not include DOE's national security activities, which are in Function 050 (National Defense), or its basic research and science activities, which are in Function 250 (General Science, Space and Technology). This function also includes the Agriculture Department's Rural Utilities Service, the Tennessee Valley Authority, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission. House-passed Resolution The House resolution calls for a total of $4.7 billion in BA and $2.2 billion in outlays for 2009, and for $23.7 billion in BA and $16.2 billion in outlays over five years. The House resolution provides $1.1 billion in appropriated funding above the 2008 level and $1.2 billion above the President's budget for 2009, funding that could be used for energy efficiency and renewable energy programs. The House resolution maintains the Weatherization Assistance Program, which the President's budget unwisely terminates. The House resolution also invests in new initiatives for renewable energy and energy efficiency, emerging energy and vehicle technologies, carbon capture and sequestration, and worker training for green collar jobs. Senate-passed Resolution The Senate resolution calls for a total of $7.0 billion in BA and $2.8 billion in outlays for 2009, and $34.6 billion in BA and $25.0 billion in outlays over five years. This funding level would provide a significant commitment of resources to invest in clean energy, create green collar jobs in our communities, and reduce our dependence on imported energy. The resolution assumes $8.45 billion in 2009 energy discretionary spending. This would represent the highest discretionary spending level for the energy function since 1981. The Senate resolution includes $2.7 billion to invest in green jobs in our nation's communities (including $100 million in Function 500). This funding level could accommodate significant increases in a variety of loan guarantee and grant programs which would fund energy efficiency and conservation activities, the production of fuel efficient vehicles, worker training programs, and biofuels production. These programs were authorized in the Energy Independence and Security Act of 2007 and not adequately funded in the President's budget. Funding these programs will move our nation towards energy independence, cleaner energy, and energy efficiency while also developing new industries and creating green jobs. The resolution also assumes funding increases for similar programs authorized in the Energy Policy Act of 2005. The Senate resolution assumes approximately $2 billion for DOE's Energy Efficiency and Renewable Energy program. This funding level is $738 million above the President's request and would accommodate significant increases for programs such as wind, solar, geothermal, biomass and biorefinery R&D, hydrogen, and vehicle/building technologies. This funding level would also provide $450 million for the Weatherization Assistance Program, a program which was zeroed out in the President's budget. The resolution significantly increases funding for the Energy Efficiency and Conservation Block Grant Program and Energy Grants for Universities and Institutions. The Senate resolution includes significant increases for fossil energy R&D. This funding would provide additional resources for programs such as carbon sequestration and clean coal research. The resolution also significantly increases funding for DOE's Office of Electricity Delivery and Energy Reliability. The Senate resolution supports consideration by the Budget Committees of the reclassification of receipts for the annual operating expenses of Southeastern, Southwestern, and Western Area Power Administrations. By reclassifying the receipts, power rates will become more closely linked to the annual appropriations they fund. This direct link will promote long-term planning and improve the overall efficiency and reliability of the federal power program. The Senate resolution includes a deficit-neutral reserve fund for legislation that would decrease greenhouse gas emissions, reduce our nation's dependence on imported energy, produce green jobs, or preserve or protect national parks, oceans, or coastal areas. The legislation may include tax legislation. The resolution also includes deficit-neutral reserve funds for legislation that would improve energy efficiency and production or provide for investments in energy infrastructure. Conference Agreement The conference agreement provides a total of $6.5 billion in BA and $2.8 billion in outlays for 2009, and $32.6 billion in BA and $22.9 billion in outlays over five years. The conference agreement provides $7.7 billion for discretionary programs in this function. This amount is $2.8 billion more than the President's proposed funding level for 2009. (The total BA and outlay levels are lower than the discretionary BA and outlay levels because this function has negative mandatory BA and outlay levels, reflecting that the U.S. government collects more money than it spends marketing federally produced power and collects fees from commercial nuclear reactors.) The conference agreement includes $2.0 billion to create green collar jobs in our nation's communities. The conference agreement includes a significant commitment of resources to invest in cleaner energy, promote renewable energy and energy efficiency, and reduce our nation's dependence on imported energy. It also provides increases for the Weatherization Assistance Program and emerging energy technologies such as carbon capture and sequestration. The conference agreement includes deficit-neutral reserve funds to accommodate energy legislation in both the House and the Senate. NATURAL RESOURCES AND ENVIRONMENT: FUNCTION 300 Function Summary The Natural Resources and Environment function consists of funding for water resources, conservation, land management, pollution control and abatement, and recreational resources. Major departments and agencies in this function are the Department of the Interior (including the National Park Service, the Bureau of Land Management, the Bureau of Reclamation, the Fish and Wildlife Service, and the Minerals Management Service), conservation-oriented and land management agencies within the Department of Agriculture (including the Forest Service), the National Oceanic and Atmospheric Administration at the Department of Commerce, the Army Corps of Engineers, and the Environmental Protection Agency (EPA). House-passed Resolution The House resolution calls for a total of $38.7 billion in BA and $35.6 billion in outlays for 2009, and for $179.2 billion in BA and $182.2 billion in outlays over five years. The House resolution rejects the President's deep and misguided cuts to priority programs, such as the Land and Water Conservation Fund, the Fish and Wildlife Service's wildlife refuge system, the EPA's Clean Water State Revolving Fund and other grants to States and Tribes to address water and air quality, and other EPA programs. It also includes funding to address high-priority brownfield redevelopment concerns. In addition, the House resolution accommodates the President's emergency Army Corps spending for efforts related to Hurricane Katrina rebuilding. Additionally, the House resolution recognizes that in recent years, fire suppression costs have overwhelmed the Forest Service's budget, and that Congress should work to identify solutions to this problem and to address the impact of increasing fire suppression costs. The House resolution includes deficit-neutral reserve funds for Secure Rural Schools and Payments in Lieu of Taxes, San Joaquin River Restoration and Navajo Nation Water Rights Settlements, and the establishment of the National Park Centennial Fund. Additional funding addressing environmental quality is accommodated in the House resolution's deficit- neutral renewable energy and energy efficiency reserve fund. Senate-passed Resolution The Senate resolution calls for a total of $39.8 billion in BA and $36.3 billion in outlays for 2009, and $182.9 billion in BA and $185.7 billion in outlays over five years. The Senate resolution includes approximately $7.9 billion for the EPA. This funding level will accommodate significant increases for programs such as Superfund and EPA's programs to support clean and safe drinking water. The resolution rejects the President's proposal to cut a variety of environmental protection programs. The resolution also rejects the President's cuts to a variety of discretionary programs which fund climate change research. The Senate resolution provides significant increases for the Army Corps of Engineers and the Bureau of Reclamation and includes a deficit-neutral reserve fund to accommodate legislation that provides for investments in water infrastructure. The Senate resolution includes $5.8 billion in 2009 emergency funding for the Corps of Engineers to continue its Katrina-related recovery work in Louisiana. The Senate resolution also includes increases sufficient to fully fund ongoing Everglades Restoration Activities at the Army Corps of Engineers and the Department of the Interior. These additional funds are provided to commence construction of the Indian River Lagoon which received only planning funding in the President's request. Additionally, these funds will provide increases to Modified Water Deliveries, the C-111 canal, and the Kissimmee River Restoration, all critical components of Everglades Restoration. The Senate resolution rejects the President's proposal to cut crucial Great Lakes funding. The resolution recognizes the importance of the Great Lakes, as they make up 90 percent of the United States' surface fresh water and serve as a source of drinking water for over 35 million people. The Senate resolution also recognizes that the approximately 5,000 miles of U.S. shoreline along the Great Lakes is greater than that of either the Eastern or Western seaboard. Unfortunately, the Great Lakes continue to face unique and challenging problems such as toxic sediment remediation, invasive species, non-point source pollution, and habitat loss. The Senate resolution includes $175 million for Great Lakes programs including the Great Lakes Legacy Act, the Great Lakes Fish and Wildlife Restoration Act, Great Lakes Fishery and Ecosystem Restoration, Remedial Action Plan (RAP) Assistance, Great Lakes Environmental Research Lab and the Great Lakes Basin Program. The Senate resolution includes a reserve fund to invest in clean energy, preserve the environment, and provide for certain settlements. The reserve fund would accommodate legislation that would decrease greenhouse gas emissions, reduce our Nation's dependence on imported energy, produce green jobs, or preserve or protect national parks, oceans, or coastal areas. It would also accommodate legislation that would fulfill the purposes of the San Joaquin River Restoration Settlement Act or implement a Navajo Nation water rights settlement and other provisions authorized by the Northwestern New Mexico Rural Water Projects Act. The Senate resolution rejects the President's cuts to numerous programs at the Department of the Interior and the Forest Service. The Senate resolution reflects concerns that, in recent years, the President's budget has significantly underestimated fire suppression costs. The Senate resolution also responds to concerns that increasing fire suppression costs are having a negative impact on funding levels for other discretionary programs at agencies such as the Forest Service. The funding levels in the resolution assume that if the severity of the fire season requires additional funding, wildland fire suppression activities will be funded for 2009 at no less than $500 million above the ten-year average. The Senate resolution does not assume savings from proposals to permit oil and gas leasing in the Arctic National Wildlife Refuge. The Senate resolution also does not assume any savings from the President's proposal to sell federal lands. The Senate resolution includes a deficit-neutral reserve fund that would accommodate legislation that terminates deductions from mineral revenue payments to states. The Senate resolution rejects the proposal in the President's budget to reallocate the repayment of the capital costs of the Pick-Sloan Missouri Basin irrigation program to power customers. The Senate resolution recognizes the importance of the Bureau of Reclamation rural water program to support ongoing Municipal, Rural, and Industrial (MR&I) systems for the Great Plains Region. The Bureau of Reclamation supplies drinking water to 2.6 million people in the Great Plains region and is encouraged to prioritize the completion of the Pick- Sloan Missouri Basin Program--Garrison Diversion Unit, Mni Wiconi, Lewis and Clark, Perkins County, Fort Peck Reservation/ Dry Prairie, and Rocky Boy's/North Central rural water system projects. The Senate supports funding these vital rural water development projects at a level that is as close to $306 million as possible. The Senate resolution includes increases for the United States Geological Survey and Endangered Species Act assistance. Conference Agreement The conference agreement includes a total of $40.5 billion in BA and $36.9 billion in outlays for 2009, and $187.5 billion in BA and $189.5 billion in outlays over five years. The conference agreement includes significant increases for natural resources and environment programs, including a variety of programs at the EPA. The agreement provides additional resources for agencies such as the Army Corps of Engineers and the Bureau of Reclamation to invest in national water infrastructure priorities. It also increases funding for a number of other programs throughout the Department of the Interior and the Forest Service. The funding levels in the conference agreement assume that if the severity of the fire season requires additional funding, wildland fire suppression activities will be funded for 2009 at a level that is above the ten-year average. AGRICULTURE: FUNCTION 350 Function Summary The Agriculture function includes farm income stabilization, agricultural research, and other services administered by the U.S. Department of Agriculture. The discretionary programs include research and education programs, economics and statistics services, administration of the farm support programs, farm loan programs, meat and poultry inspection, and a portion of the Public Law 480 international food aid program. The mandatory programs include commodity programs, crop insurance, and certain farm loans. House-passed Resolution The House resolution calls for a total of $21.5 billion in BA and $21.3 billion in outlays for 2009, and for $110.0 billion in BA and $106.1 billion in outlays over five years. The budget resolution provides greater funds than the President to ensure sufficient resources to bolster commodity support, agricultural research, and animal and plant inspection programs. The House resolution also assumes sufficient resources for the farm bill, providing resources for such objectives as to secure an economic safety net for agricultural producers, conserve our natural resources, and address nutrition needs. Senate-passed Resolution The Senate resolution reflects a total of $21.4 billion in BA and $21.1 billion in outlays for 2009, and $108.9 billion in BA and $105.0 billion in outlays over five years. With the 2002 Farm Bill expiring, the Senate resolution provides a deficit-neutral reserve fund for the reauthorization of agricultural programs. To address the needs of rural America and promote new sources of renewable energy from U.S. farm products, it would provide a $15.0 billion deficit-neutral reserve fund for the 2008 through 2013 period to reauthorize the Farm Bill. The reauthorization of the Farm Bill will provide an economic safety net for agricultural producers, enhance the stewardship of our natural resources, address domestic nutrition needs, increase agricultural research, and improve our export competitiveness. Conference Agreement The conference agreement calls for a total of $22.6 billion in BA and $22.3 billion in outlays for 2009, and for $109.9 billion in BA and $103.6 billion in outlays over five years. For discretionary spending, the agreement matches CBO's baseline estimate in 2009. For mandatory spending, the agreement incorporates the effects of the recently passed Farm Bill in this and several other functions where its effects appear. In addition, in the event further action is required by Congress, the conference agreement includes a Senate-only deficit-neutral reserve fund (section 221(g)(1)) for the Farm Bill and related changes. COMMERCE AND HOUSING CREDIT: FUNCTION 370 Function Summary The Commerce and Housing Credit function includes mortgage credit, the Postal Service, deposit insurance, and other advancement of commerce (the majority of the discretionary and mandatory spending in this function). The mortgage credit component of this function includes housing assistance through the Federal Housing Administration, the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae), and rural housing programs of the Department of Agriculture. The function also includes net Postal Service spending and spending for deposit insurance activities of banks, thrifts, and credit unions. Most of the Commerce Department is provided for in this function, including the International Trade Administration, the Bureau of Economic Analysis, the Patent and Trademark Office, the National Institute of Standards and Technology, the National Telecommunications and Information Administration, and the Bureau of the Census. Finally, the function also includes funding for independent agencies such as the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Trade Commission, the Federal Communications Commission, and the majority of the Small Business Administration. House-passed Resolution For the unified budget, the House resolution calls for a total of $10.8 billion in BA and $5.0 billion in outlays for 2009, and for $53.1 billion in BA and $16.9 billion in outlays over five years. (The budget resolution provides only the on- budget amounts, which are $9.6 billion in BA and $3.7 billion in outlays for 2009, and $51.3 billion in BA and $15.1 billion in outlays over five years.) The discretionary function total includes significantly increased funding for the Bureau of the Census, reflecting continued preparation for the 2010 census, and continues to support agencies such as the National Institute of Standards and Technology. For 2009, and over the following four years, funding in Function 370 is above the level in the President's budget. Senate-passed Resolution The Senate resolution calls for a total of $10.6 billion in unified BA and $5.0 billion in unified outlays for 2009, and $46.3 billion in unified BA and $10.6 billion in unified outlays over five years. (The corresponding on-budget figures are $9.4 billion in BA and $3.8 billion in outlays for 2009, and $44.5 billion in BA over five years and $8.8 billion in outlays over five years.) The Senate resolution rejects the President's proposal to cut assistance to America's small businesses. The President proposes to eliminate the Manufacturing Extension Program, which helps small businesses adopt advanced manufacturing technologies. The Senate resolution restores funding to this vital program to the level authorized in the America COMPETES Act. The Senate resolution also provides robust resources for the Small Business Administration and the Census Bureau. Conference Agreement For the unified budget, the conference agreement calls for a total of $10.8 billion in BA and $5.0 billion in outlays for 2009, and for $53.1 billion in BA and $16.9 billion in outlays over five years. (The conference agreement provides only the on-budget amounts, which are $9.6 billion in BA and $3.7 billion in outlays for 2009, and $51.3 billion in BA and $15.1 billion in outlays over five years.) The discretionary function total includes significantly increased funding for the Bureau of the Census, reflecting continued preparation for the 2010 census, and continues to support programs such as the Manufacturing Extension Program and the Technology Innovation Program. For 2009, and over the following four years, funding in Function 370 is above the level in the President's budget. TRANSPORTATION: FUNCTION 400 Function Summary The Transportation function consists mostly of the programs administered by the Department of Transportation, including programs for highways, mass transit, aviation, and maritime activities. This function also includes two components of the Department of Homeland Security: the Coast Guard and the Transportation Security Administration. In addition, this function includes several small transportation-related agencies and the research program for civilian aviation at NASA. House-passed Resolution The House resolution calls for a total of $73.4 billion in BA and $80.4 billion in outlays for 2009, and for $389.4 billion in BA and $428.9 billion in outlays over five years. This resolution recognizes the importance of investing in infrastructure systems on which our Nation depends. Our society depends on transportation systems to integrate the economies of our communities. However, those systems are stressed from growing congestion and a backlog of repair needs. It is imperative that, in the last year of the current surface transportation authorization, the budget place these systems in a position to address the challenges of the 21st century. To that end, the House resolution fully funds the highway, transit, and highway safety programs at the levels originally authorized in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). Specifically, considering the country's infrastructure challenges, the House resolution does not accept the President's estimate of revenue aligned budget authority (RABA), or the further cuts in highway and transit funding included in the President's 2009 budget. Rather, the House resolution continues to invest in infrastructure, laying the groundwork for a reauthorization of these programs in 2010. The House resolution increases funding for Amtrak and provides additional funding for grants to airports, in anticipation of a new aviation authorization. Senate-passed Resolution The Senate resolution calls for a total of $75.1 billion in BA and $83.3 billion in outlays for 2009, and $392.5 billion in BA and $434.6 billion in outlays over five years. The Senate resolution rejects the President's cuts to transportation programs and fully funds the highway, transit, and highway safety programs authorized in SAFETEA-LU for 2009. The Senate resolution also provides an additional $7 billion for ``ready- to-go'' infrastructure projects. Additionally, the Senate resolution provides $1.8 billion in BA for Amtrak, a funding level that is $1 billion above the President's request. Amtrak is a vital link to many small communities, and the Senate resolution will help Amtrak pay off debt and continue to improve its operations. Conference Agreement The conference agreement calls for a total of $74.7 billion in BA and $80.8 billion in outlays for 2009, and for $392.0 billion in BA and $430.7 billion in outlays over five years. This agreement recognizes the importance of investing in infrastructure systems on which our Nation depends. Our society depends on transportation systems to integrate the economies of our communities. However, those systems are stressed from growing congestion and a backlog of repair needs. The conference agreement fully funds the highway, transit, and highway safety programs at the levels originally authorized in SAFETEA-LU. Specifically, considering the country's infrastructure challenges, the agreement does not accept the President's estimate of RABA, or the further cuts in highway and transit funding included in the President's 2009 budget. Rather, the agreement continues to invest in infrastructure, laying the groundwork for a reauthorization of these programs in 2010. The conference agreement provides $1.8 billion in BA for Amtrak and provides additional funding for grants to airports, in anticipation of a new aviation authorization. COMMUNITY AND REGIONAL DEVELOPMENT: FUNCTION 450 Function Summary The Community and Regional Development function includes federal programs to improve community economic conditions, promote rural development, and assist in federal preparations for and response to disasters. This function provides appropriated funding for the Community Development Block Grant, Department of Agriculture rural development programs, the Bureau of Indian Affairs (BIA), the Federal Emergency Management Agency (FEMA) (including homeland security grants), and other disaster mitigation and community development-related programs. It also provides mandatory funding for the federal flood insurance program. House-passed Resolution The House resolution calls for a total of $14.6 billion in BA and $24.3 billion in outlays for 2009, and for $75.7 billion in BA and $95.3 billion in outlays over five years. The budget resolution provides substantially more than the President's 2009 discretionary funding level for Function 450, rejecting the President's deep cuts to the Community Development Block Grant program, first responder grants, and rural development. Senate-passed Resolution The Senate resolution calls for a total of $15.2 billion in BA and $24.5 billion in outlays for 2009, and $77.7 billion in BA and $96.9 billion in outlays over five years. This level restores cuts proposed in the President's budget for community development programs and several Department of Homeland Security grant programs, including first responder grants. In addition, the Senate resolution includes increases in funding for interoperable communications equipment grants, FEMA operations and management, and BIA tribal justice programs. Conference Agreement The conference agreement includes a total of $15.2 billion in BA and $24.4 billion in outlays for 2009, and $78.0 billion in BA and $97.1 billion in outlays over five years. The conference agreement rejects the President's deep cuts to community and rural development programs, including the Community Development Block Grant, and to several Department of Homeland Security grant programs, including first responder grants. The agreement accommodates higher funding for programs such as interoperable communications equipment grants, FEMA operations and management, a new Department of Homeland Security headquarters, and BIA tribal justice programs. EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES: FUNCTION 500 Function Summary The Education, Training, Employment and Social Services function includes funding for the Department of Education, as well as programs in the Department of Health and Human Services (HHS) and the Department of Labor. This function provides funding for elementary and secondary, career and technical, and post-secondary educational programs; job training and employment services; children and family services; and statistical analysis and research related to these areas. It also contains funding for the Library of Congress and independent research and arts agencies such as the Corporation for Public Broadcasting, the Smithsonian Institution, the National Gallery of Art, the John F. Kennedy Center for the Performing Arts, the National Endowment for the Arts, and the National Endowment for the Humanities. House-passed Resolution The House budget resolution calls for a total of $95.2 billion in BA and $90.9 billion in outlays for 2009, and for $513.0 billion in BA and $500.3 billion in outlays over five years. The House resolution specifically rejects the President's cuts to education funding, including his plan to eliminate many education programs, including all vocational education programs. The House resolution also rejects the President's steep cuts to job training and social services programs--programs needed now more than ever when the economy is slowing and the cost of living is rising. In contrast to the President's funding cuts, the House budget resolution makes a down payment toward addressing long- standing needs in education, training, employment, and social services. To that end, the House resolution provides an appropriated program level for Function 500 that is $7.1 billion above the 2009 level in the President's budget. The House resolution's increased funding could be used to support vital assistance to help children learn and succeed. Increased funding could support key programs such as Head Start, Impact Aid, and the Individuals with Disabilities Education Act. It also could support the No Child Left Behind Act programs to ensure that children can read and achieve at grade level, including programs such as Title I, school improvement programs, teacher quality improvement, and education technology state grants. Finally, the House resolution's funding increase for education can help make college more affordable and accessible by raising the maximum Pell grant, maintaining Supplemental Educational Opportunity Grants and Perkins Loans, and broadening access to Historically Black Colleges and Universities as well as Hispanic-serving institutions and other minority-serving institutions, which continue to make important contributions towards increasing the percentage of minority students gaining a college degree. Increased funding could be used to enhance funding for the Workforce Investment Act programs, which provide important job training and assistance. It could also support training for green collar jobs in renewable energy and energy efficiency fields. Other aspects of the Democratic leadership's innovation agenda could also be supported, including math and science education, development of basic and applied research, as well as demonstrations of effective approaches to innovative learning such as those in H.R. 3631, the Revolutionizing Education Through Digital Investment Act of 2007. The House resolution rejects the President's proposed cuts to the Corporation for Public Broadcasting, and provides a funding level that could be used to support an increase. The House continues to support two-year advance funding for the Corporation. The House resolution also contains a reserve fund to accommodate legislation that makes college more affordable, consistent with the House pay-as-you-go rule. Senate-passed Resolution The Senate resolution calls for a total of $94.7 billion in BA and $91.3 billion in outlays for 2009, and $515.0 billion in BA and $502.2 billion in outlays over five years. The Senate-passed budget resolution recognizes that strong education and training programs at all levels are critical for building a highly skilled workforce that can compete in the global marketplace. It makes this effort a high priority by providing an increase for discretionary education and training program-level funding of $9.3 billion above the President's request, or $6 billion above 2009 baseline levels. The Senate-passed resolution rejects the President's proposed cuts in education, training and social services, including his proposal to eliminate programs and slash resources for the Corporation for Public Broadcasting. It assumes that additional funding will be invested in critical areas from birth through post-secondary education, including Head Start; key programs authorized by the No Child Left Behind Act, especially Title I; the Individuals with Disabilities Education Act (IDEA); Pell Grants; and job training. The increased investments will: <bullet> ensure that more preschool children will be ready for school; <bullet> help grade schools, middle schools, and high schools close achievement gaps, increase graduation rates, and reduce the need for remedial education; <bullet> ensure that all schools can attract, train, and retain high-quality teachers and reduce class sizes; <bullet> keep our commitment to educate students with disabilities; <bullet> expand access to higher education by making college more affordable; <bullet> ensure that employers have increasingly well-educated employees that can compete in the global marketplace; and <bullet> expand job training opportunities to help workers respond to shifts in the economic landscape, including training for green jobs. With regard to the Department of Education, the Senate resolution increases overall program-level funding by $5.7 billion above the President's requested level. In contrast, the President cuts Department of Education funding by $612 million in 2009, or one percent, below the 2008 inflation-adjusted level. To help schools meet the requirements of the No Child Left Behind Act and IDEA, the Senate resolution provides the largest increase for elementary and secondary education programs since 2002. In addition, the Senate resolution assumes an increase in the maximum Pell grant award, and fully funds the Pell shortfall. The Senate adopted amendments to increase funding for the Teacher Incentive Fund, adult literacy and civics programs, and programs under the Older Americans Act, including the Lifespan Respite Care Act at the Administration on Aging. The Senate resolution provides deficit-neutral reserve funds to facilitate enactment of legislation to improve college access and affordability, facilitate modernization of school facilities through renovation or construction bonds, reduce the cost of teachers' out-of-pocket expenses for school supplies, provide tax incentives for highly qualified teachers to serve in high-needs schools, improve student achievement during secondary education, and promote flexibility in existing federal education programs. Conference Agreement The conference agreement calls for a total of $94.3 billion in BA and $91.4 billion in outlays for 2009, and for $511.9 billion in BA and $500.7 billion in outlays over five years. The conference agreement rejects the cuts to education, training, and social services programs in the President's 2009 budget, including the President's proposal to eliminate many programs that boost student achievement, provide needed social services, and provide workers with training and assistance. In contrast to the President's funding cuts, the conference agreement increases funds for vital programs, providing $8.4 billion more than the President's budget for program year 2009. The conference agreement recognizes the importance of investing in strong education and training programs and supporting social services, particularly when the cost of living is rising rapidly and we are building a highly skilled workforce that can compete in the global marketplace. It therefore includes significant increases for education programs to help students from early childhood through post-secondary education, which include programs such as Head Start, Title I, services under the Individuals with Disabilities Education Act, Pell Grants, and other key programs. The conference agreement contains a deficit-neutral reserve fund for the House to accommodate legislation that makes college more affordable. It also includes a Senate reserve fund to facilitate enactment of legislation to make higher education more accessible or more affordable, facilitate modernization of school facilities through renovation or construction bonds, reduce the cost of teachers' out-of-pocket expenses for school supplies, provide tax incentives for highly qualified teachers to serve in high-needs schools, improve student achievement during secondary education, and promote flexibility and accountability in federal education programs. HEALTH: FUNCTION 550 Function Summary The Health function includes most direct health care service programs as well as funding for anti-bioterrorism activities, national biomedical research, protecting the health of the general population and workers in their places of employment, providing health services for under-served populations, and promoting training for the health care workforce. The major programs in this function include Medicaid, the State Children's Health Insurance Program (SCHIP), health benefits for federal workers and retirees, the National Institutes of Health (NIH), the Food and Drug Administration (FDA), the Health Resources and Services Administration (HRSA), the Centers for Disease Control and Prevention (CDC), the Substance Abuse and Mental Health Services Administration (SAMHSA), the Indian Health Service (IHS), and the Agency for Healthcare Research and Quality. House-passed Resolution The House resolution calls for a total of $306.8 billion in BA and $305.3 billion in outlays for 2009, and for $1.7 trillion in BA and $1.7 trillion in outlays over five years. The budget resolution rejects the Administration's harmful cuts to Medicaid. The discretionary resources for Function 550 for 2009 represent an increase over both the 2008 level and the President's 2009 request, with a particular focus on NIH, CDC, FDA, and the Occupational Safety & Health Administration (OSHA). The House resolution increases resources for public health, which includes programs focused on addressing health promotion and disease prevention. Preventative health care measures and disease management have the potential to lead to more efficient use of health care spending, and reduced illness, as well as an improvement in the health of the public. The House resolution also includes increased funding for food safety, access to quality health care for under-served populations, and other important programs. Programs in Function 550 are also addressed in the House resolution's deficit-neutral reserve funds for SCHIP and for Medicaid. Senate-passed Resolution The Senate resolution calls for a total of $313.1 billion in BA and $310.6 billion in outlays for 2009, and $1.7 trillion in BA and $1.7 trillion in outlays over five years. The Senate resolution includes increases above the 2008 enacted level adjusted for inflation and above the President's request for NIH, HRSA, FDA, CDC, and IHS. Significant increases for Community Health Centers, health professions, and the National Health Service Corps within HRSA are also included. The Senate resolution rejects the President's proposed cuts for Rural Health Activities in HRSA. The Senate resolution also supports funding demonstration programs to provide patient navigator services as authorized in the Patient Navigator, Outreach, and Chronic Disease Prevention Act under HRSA as well as funding to support research into the causes, diagnoses, and treatments for postpartum depression. The Senate resolution also includes increases for the Maternal and Child Health Block Grant, for autism research, education, and early detection, and for the organ transplantation program. In addition, the Senate resolution contains various health care related deficit-neutral reserve funds, including a reserve fund for SCHIP legislation. Conference Agreement The conference agreement includes a total of $310.3 billion in BA and $307.5 billion in outlays for 2009, and $1.7 trillion in BA and $1.7 trillion in outlays over five years. The conference agreement rejects the Administration's harmful cuts to Medicaid. The discretionary resources for Function 550 for 2009 include increases above the 2008 enacted level adjusted for inflation and above the President's request for NIH, HRSA, FDA, CDC, IHS, and OSHA. The conference agreement includes an increase for the Indian Health Service to help meet the health needs of American Indians and Alaska Natives. The conference agreement assumes additional FDA funding to give the agency resources to protect and promote the health of American families. Significant increases for Community Health Centers, the National Health Service Corps, and health professions within HRSA are also included as well as increases for patient navigator services, the Maternal and Child Health Block Grant, and resources to enhance federal efforts on autism. The conference agreement increases resources for programs focused on addressing health promotion and disease prevention. Preventative health care measures and disease management have the potential to lead to more efficient use of health care spending, and reduced illness, as well as an improvement in the health of the public. Programs in Function 550 are also addressed in various deficit-neutral reserve funds, including those addressing SCHIP and Medicaid. MEDICARE: FUNCTION 570 Function Summary The Medicare function includes funding to administer and to provide benefits under the Medicare program. Medicare is a federal health insurance program that currently covers 44 million Americans aged 65 and older, as well as younger adults who are disabled or suffer from end-stage renal disease. Congress provides an annual appropriation for the costs of administering Medicare, including resources to conduct program integrity activities to guard against improper payments, fraud, and abuse. The remainder of spending in this function is mandatory and reflects payments to health care providers and private insurance plans, as well as beneficiary premiums and other receipts and payments to the Medicare trust funds, under the Part A Hospital Insurance (HI) program, the Part B Supplementary Medical Insurance (SMI) program, the Part C Medicare Advantage program, and the Part D Prescription Drug program. House-passed Resolution The House resolution reflects a total of $420.2 billion in BA and $420.0 billion in outlays in 2009, and $2.4 trillion in BA and $2.4 trillion in outlays over five years. The House resolution rejects the Administration's harmful cuts to Medicare. The House resolution assumes the extension of Medicare premium assistance for qualified individuals with incomes between 120 and 135 percent of the federal poverty level and limited financial resources. The House resolution assumes that savings from Medicare program efficiency improvements will offset the costs of extending the premium assistance program as well as other initiatives to improve the Medicare program for beneficiaries. The House resolution assumes targeted assistance to hospitals with 100 beds or more that have faced a reduction in Medicare disproportionate share hospital payments due to assignment to a Micropolitan area. The House resolution provides a discretionary cap adjustment of $198 million for additional activities aimed at detecting and preventing Medicare fraud. The Health Care Fraud and Abuse Control program--a joint effort of the Department of Health and Human Services, the HHS Office of Inspector General, and the Department of Justice--generated roughly $4 in program savings for every dollar spent in 2004 and 2005. The House resolution also contains a reserve fund to accommodate legislation for Medicare program improvements. Senate-passed Resolution The Senate resolution calls for a total of $420.4 billion in BA and $420.2 billion in outlays for 2009, and $2.4 trillion in BA and $2.4 trillion in outlays over five years. For 2009, the discretionary funding levels in this function include a discretionary cap adjustment of up to $198 million for program integrity activities of the Health Care Fraud and Abuse Control (HCFAC program) to address improper payments, fraud, and abuse in the Medicare program. In addition, the mandatory funding levels in this function assume Medicare savings of $1.3 billion in 2013, allowing for legislation to delay the Medicare trigger. Specific policies to enact these savings will be determined by the Senate Finance Committee. Conference Agreement The conference agreement reflects a total of $420.2 billion in BA and $420.0 billion in outlays in 2009, and $2.4 trillion in BA and $2.4 trillion in outlays over five years. Discretionary and mandatory spending levels in this function are consistent with the CBO baseline funding levels. For 2009, the discretionary funding levels in Function 920 include a discretionary cap adjustment of up to $198 million for program integrity activities of the Health Care Fraud and Abuse Control program, to address improper payments, fraud, and abuse in the Medicare program. INCOME SECURITY: FUNCTION 600 Function Summary The Income Security function contains a range of income security programs including: 1) major cash and in-kind means- tested entitlements; 2) general retirement, disability, and pension programs excluding Social Security and veterans' compensation programs; 3) federal and military retirement programs; 4) unemployment compensation; 5) low-income housing programs; and 6) other low-income support programs. Major federal entitlement programs in this function include unemployment insurance, food stamps, child nutrition, Temporary Assistance to Needy Families (TANF), foster care, child support enforcement, child care, Supplemental Security Income, and spending for the refundable portion of the Earned Income Credit. House-passed Resolution The House resolution calls for a total of $411.7 billion in BA and $414.0 billion in outlays for 2009, and for $2.1 trillion in BA and $2.1 trillion in outlays over five years. The discretionary resources for Function 600 represent an increase over both the 2008 level and the President's request. The funding will support efforts to reduce the unacceptable number of Americans who live in poverty and to provide assistance to those in need. The budget resolution includes additional funding to address the current shortfall in the project-based rental assistance program, prevent a shortfall in the tenant-based rental assistance program which would occur under the President's budget, and improve supportive housing for the elderly, as in H.R. 2930 as passed by the House. The House resolution also specifically rejects the President's cut to the Low-Income Home Energy Assistance Program (LIHEAP). Economic uncertainty and rising costs are increasing the need for food assistance for children and adults. The House budget resolution rejects the President's proposals to terminate food stamps for 390,000 working families and eliminate the Commodity Supplemental Food Program and notes that legislation that passed the House with bipartisan support was an appropriate first step toward ensuring that nutrition assistance keeps up with inflation and rising food prices. Mandatory programs in Function 600 are also addressed in the House resolution's deficit-neutral reserve funds for trade adjustment assistance and unemployment insurance modernization, and child support enforcement. Senate-passed Resolution The Senate resolution calls for a total of $414.4 billion in BA and $419.0 billion in outlays for 2009, and $2.1 trillion in BA and $2.1 trillion in outlays over five years. The Senate resolution includes increases for the Low-Income Home Energy Assistance Program to continue providing heating and cooling assistance to over five million low income households, including the working poor, disabled persons, elderly, and families with young children. The Senate resolution rejects the President's proposals to cut various housing assistance programs and includes significant resources for Section 8 housing assistance in order to address the funding shortfall for the project-based Section 8 program. The Senate resolution also provides increases for the Child Care Development Block Grant and for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Senate resolution also includes several deficit-neutral reserve funds including reserve funds for up to an additional $5.0 billion in mandatory child care funding, for the reauthorization of the Temporary Assistance for Needy Families supplemental grants, for improvements to TANF, child welfare, or child support enforcement, for improvements to the unemployment compensation program, and the reauthorization of the trade adjustment assistance programs. Conference Agreement The conference agreement calls for a total of $415.5 billion in BA and $416.0 billion in outlays for 2009, and for $2.1 trillion in BA and $2.1 trillion in outlays over five years. The conference agreement supports a total funding level of $5.1 billion for LIHEAP--$3.1 billion in regular funding and $2 billion in contingency funding. Rising fuel costs have strained family budgets. The conference agreement level for LIHEAP will provide heating and cooling assistance to over five million low income households, including the working poor, disabled persons, elderly, and families with young children. The conference agreement also recognizes that additional funding above the 2008 level adjusted for inflation will be needed for WIC. The conference agreement accommodates additional funding for the project-based rental assistance program shortfall and to increase funding for the tenant-based rental assistance program. The conference agreement also includes funding to improve supportive housing for the elderly, as in H.R. 2930 as passed by the House. Mandatory programs in Function 600 are addressed in several deficit-neutral reserve funds in the House and the Senate, including reserve funds for up to an additional $5.0 billion in mandatory child care funding, for reauthorization or expansion of TANF grants, for child welfare or child support enforcement, for modernization of the unemployment compensation program, and for the reauthorization of the trade adjustment assistance programs. SOCIAL SECURITY: FUNCTION 650 Function Summary The Social Security function includes funding for the Old-Age, Survivors, and Disability Insurance (OASDI) programs, which provide earned Social Security benefits to nearly 50 million eligible retired workers, disabled persons, and their spouses and survivors. In addition, this function provides funding to the Social Security Administration (SSA) and the Office of the Inspector General (OIG) to administer the Social Security program and ensure program integrity. Under provisions of the Congressional Budget Act and the Budget Enforcement Act, the Old-Age and Survivors Insurance (OASI) trust fund and the Disability Insurance (DI) trust fund are off-budget and do not appear in the budget resolution totals. A small portion of spending in Function 650, the general fund transfer of income taxes on Social Security benefits to the trust funds, is considered on-budget and appears in the budget resolution totals. House-passed Resolution For the unified budget, the House resolution calls for a total of $654.3 billion in BA and $651.4 billion in outlays for 2009, and for $3.6 trillion in BA and outlays over five years. (The budget resolution provides only the on-budget amounts, which are $21.3 billion in BA and outlays for 2009, and $135.9 billion in BA and outlays over five years.) The House resolution rejects the President's private account proposal for Social Security. The administrative budget for the SSA includes resources in Function 570 (Medicare) and Function 600 (Income Security) as well as Function 650. The House resolution assumes a $10.4 billion discretionary funding level for the administrative expenses of SSA and the OIG. The increased resources will enable SSA to address the significant number of individuals waiting for disability and hearing decisions and thereby reduce its unacceptable backlog in case reviews. The House resolution also accommodates an additional $240 million above the funding level through a discretionary cap adjustment for program integrity initiatives. The cap adjustment allows the agency to conduct an increasing number of Continuing Disability Reviews (CDRs) and Supplemental Security Income redeterminations. Senate-passed Resolution The Senate resolution calls for $21.3 billion in on- budget BA and outlays for 2009, and $135.9 billion in on-budget BA and outlays over five years. (The corresponding figures on a unified basis are $654.5 billion in BA and $651.7 billion in outlays for 2009 and $3.6 trillion in BA and outlays over five years.) This spending reflects the general fund transfer of income taxes on Social Security benefits to the trust funds. For 2009, the Senate resolution provides $5.5 billion in BA and $5.5 billion in outlays for SSA administrative expenses, as outlined in section 102(c) of the resolution, which represents a $240 million increase over the President's request. The resolution also provides $150 million in additional one-time funding for SSA administrative expenses. The additional funding is intended to help address the serious backlog of Social Security disability claims and hearings, as well as other backlog workloads for which additional resources are needed. Conference Agreement For the unified budget, the conference agreement calls for $654.3 billion in BA and $651.4 billion in outlays for 2009, and $3.6 trillion in BA and outlays over five years. (The conference agreement provides only the on-budget amounts, which are $21.3 billion in BA and outlays for 2009, and $136.0 billion in BA and outlays over five years.) The conference agreement rejects the President's private account proposal for Social Security. For 2009, the conference agreement provides total net discretionary resources for the administrative expenses of SSA and the OIG (across all relevant functions) of $10.7 billion, $240 million above the President's requested level. The total SSA funding level in the conference agreement assumes both the President's full request for a cap adjustment in Function 920 for program integrity efforts (including CDRs and SSI redeterminations), and additional resources to address the serious backlog of disability claims and hearings, as well as other backlog workloads for which additional resources are needed. VETERANS BENEFITS AND SERVICES: FUNCTION 700 Function Summary Function 700 covers the programs of the Department of Veterans Affairs (VA), including veterans' medical care, compensation and pensions, education and rehabilitation benefits, and housing programs. It also includes the Department of Labor's Veterans' Employment and Training Service, the United States Court of Appeals for Veterans Claims, and the American Battle Monuments Commission. More than 99 percent of appropriated veterans' funding goes to VA, and more than 85 percent of this funding is for VA medical care and hospital services. House-passed Resolution The House resolution calls for a total of $93.3 billion in BA and $92.4 billion in outlays for 2009, and for $495.3 billion in BA and $492.2 billion in outlays over five years. For 2009, the House resolution provides $4.9 billion of discretionary budget authority over the 2008 level and $3.2 billion above the President's 2009 budget. The House resolution reflects the very high priority that Congress places on adequately funding veterans' medical care. The House resolution also rejects the health care enrollment fees and drug co- payment increases proposed by the President's budget. The House resolution provides full funding to support excellent health care for veterans. The House resolution provides funding to continue addressing problems such as those identified at Walter Reed Army Medical Center to improve military and veterans' health care facilities and services. The House resolution provides funding in Function 700 above the President's requested level for 2009 to address important priorities including veterans' mental health, post- traumatic stress disorder, and traumatic brain injury. There have been many traumatic brain injuries in Iraq and Afghanistan. The House notes that there is legislation to address the prevalence of epilepsy among veterans, especially those with traumatic brain injury. Research conducted by VA and the Department of Defense found that about half of Vietnam veterans who suffered penetrating head injuries developed epilepsy. The House resolution also has additional funding for disability compensation claims processing so that VA can continue to address the inventory of pending claims. The House notes that many military service families are experiencing financial difficulties due to overseas military deployments and that Congress should consider ways to address these difficulties. Senate-passed Resolution The Senate resolution calls for a total of $93.3 billion in BA and $92.4 billion in outlays for 2009, and $490.9 billion in BA and $488.1 billion in outlays over five years. The Senate resolution provides $48.2 billion in BA in 2009 for discretionary veterans' programs, including medical care. This amount is $3.3 billion more than the President's proposed funding level. The funding in the Senate resolution will ensure that the Veterans Health Administration within VA can provide the highest quality health care for all veterans. Over the past several years, the President has consistently underestimated the needs of veterans, and Congress has made up the shortfall. In 2005, the President's budget underfunded the Veterans Health Administration, which required Congress to pass two supplemental funding bills. Last year, the nation was shocked to learn of the mistreatment of soldiers recuperating from wounds at the Walter Reed Army Medical Center. To address these and other funding shortfalls in the President's budget, last year's budget resolution paved the way for the largest funding increase in VA's history. The Senate resolution also recognizes the difficulties veterans leaving active duty have in transitioning their medical records to the VA. These administrative disconnects can have dramatic and sometimes dire consequences on our young men and women when they leave the military. It is also difficult for VA to evaluate and treat veterans because VA may not have a complete medical record. Therefore, the Senate resolution supports efforts to implement fully the Wounded Warrior Act, section 1635 in the National Defense Authorization Act. This provision requires the Department of Defense and VA to develop a ``fully interoperable electronic personal health information system'' as well as establish a joint program office to oversee the creation of this new healthcare system. Additionally, the Senate resolution recognizes that the President's proposed funding for VA major construction projects will result in significant delays and cost-growth to on-going projects. Therefore, the Senate resolution provides robust resources for VA major projects. The Senate resolution also notes the importance of medical research at VA, including the Air Force Health Study, and provides the resources for this important priority. The Senate resolution also supports robust funding for State Veterans Cemeteries. Conference Agreement The conference agreement provides a total of $93.3 billion in BA and $92.5 billion in outlays for 2009, and $496.3 billion in BA and $493.1 billion in outlays over five years. The conference agreement provides $48.2 billion for 2009 for discretionary veterans' programs, including medical care. This amount is $4.9 billion more than the 2008 enacted level, $3.7 billion more than the amount needed to maintain purchasing power at the 2008 level, and $3.3 billion more than the President's proposed funding level for 2009. Over five years (2009-2013) the agreement provides $39.0 billion more than the President's budget. The conference agreement level enjoys the strong support of major veterans organizations, including the Independent Budget--which is developed by AMVETS, Disabled American Veterans, Paralyzed Veterans of America, and Veterans of Foreign Wars--the American Legion, Iraq and Afghanistan Veterans of America, and Vietnam Veterans of America. ADMINISTRATION OF JUSTICE: FUNCTION 750 Function Summary The Administration of Justice function includes funding for federal law enforcement activities at the Department of Justice (DOJ) including criminal investigations by the Federal Bureau of Investigation (FBI) and the Drug Enforcement Agency (DEA). The function also includes funding for border enforcement by the Department of Homeland Security (DHS). Additionally, the function includes funding for civil rights enforcement and prosecution; federal block, categorical, and formula law enforcement grant programs to state and local governments; prison construction and operation; the United States Attorneys; and the federal judiciary. House-passed Resolution The House resolution calls for a total of $48.1 billion in BA and $47.9 billion in outlays for 2009, and for $252.1 billion in BA and $252.2 billion in outlays over five years. For Function 750, the House resolution rejects the President's repeated cut of local law enforcement programs. Instead, the function total includes enough resources to increase homeland security programs and provide for law enforcement programs, such as the State Criminal Alien Assistance Program (SCAAP)-- and recognizes the importance of this critical reimbursement program. In addition to rejecting the repeated cuts to SCAAP in the President's budget, the House resolution also rejects the President's cuts to Community Oriented Policing Services (COPS) and Edward Byrne Memorial Justice Assistance Grants--both of which are important priorities for keeping our communities safe. The House resolution values the funding Byrne-JAG provides to local law enforcement at a time when many communities are combating problems including a methamphetamine epidemic and other crimes. In addition, the House resolution protects both our youth and victims of crime by restoring cuts to both juvenile justice and programs to prevent violence against women and by limiting amounts diverted from the Crime Victims Fund. The House resolution provides funding above the President's budget level for 2009 for these purposes and to protect the border. Senate-passed Resolution The Senate resolution calls for a total of $49.4 billion in BA and $46.9 billion in outlays for 2009, and $246.9 billion in BA and $247.5 billion in outlays over five years. This level restores cuts proposed in the President's budget and provides additional resources for several law enforcement grant programs such as COPS, including meth hotspot grants, and the Edward Byrne Memorial Justice Assistance Grant program. In addition, the Senate resolution restores cuts and provides additional resources to the State Criminal Alien Assistance Program, Violence Against Women Act programs, and DOJ Tribal Justice programs. The Senate resolution also includes increases in funding proposed in the President's budget for border security. Conference Agreement The conference agreement calls for a total of $48.3 billion in BA and $48.1 billion in outlays for 2009, and for $247.5 billion in BA and $248.1 billion in outlays over five years. For Function 750, the agreement rejects the President's repeated cuts and provides additional resources for law enforcement programs such as COPS, including meth hotspot grants, the Edward Byrne Memorial Justice Assistance Grant program, and SCAAP--an important reimbursement program for our state and local law enforcement agencies. In addition, the conference agreement protects both our youth and victims of crime by rejecting cuts to juvenile justice, programs to prevent violence against women, and DOJ tribal justice programs. The agreement provides funding for these purposes and to protect the border. GENERAL GOVERNMENT: FUNCTION 800 Function Summary The General Government function consists of the activities of the Legislative Branch, the Executive Office of the President, general tax collection and fiscal operations of the Department of the Treasury (including the IRS), the Office of Personnel Management, the property and personnel costs of the General Services Administration, and general purpose fiscal assistance to states, localities, the District of Columbia, and U.S. territories. House-passed Resolution The House resolution calls for a total of $23.5 billion in BA and $23.9 billion in outlays for 2009, and for $107.4 billion in BA and $107.5 billion in outlays over five years. The budget resolution includes a program integrity initiative to increase IRS tax compliance efforts to collect unpaid taxes from those who are not paying what they owe. Funding in this function could be used for items such as H.R. 3548, the Plain Language in Government Communications Act of 2007, to enhance citizen access to government information and services by establishing plain language as the standard style of covered government documents issued to the public. Senate-passed Resolution The Senate resolution calls for $24.5 billion in BA and $24.4 billion in outlays for 2009, and $106.8 billion in BA and $106.9 billion in outlays over five years. The Senate resolution fully funds the President's budget request for the IRS, including additional resources available through a discretionary cap adjustment that directs an additional $490 million to IRS enforcement activities. The Senate resolution includes funding to carry out the Freedom of Information Act (FOIA) by establishing the Office of Government Information Services at the National Archives. The Senate resolution also includes funding to construct a new headquarters for the Department of Homeland Security. The Senate resolution includes a deficit-neutral reserve fund to accommodate legislation that provides for the reauthorization of the Secure Rural Schools and Community Self- Determination Act of 2000, or makes changes to the Payments in Lieu of Taxes Act of 1976, or both. The Senate resolution also includes a deficit-neutral reserve fund for legislation that achieves savings by requiring that agencies increase their use of recovery audits. Conference Agreement The conference agreement includes $24.0 billion in BA and $24.4 billion in outlays for 2009, and $106.9 billion in BA and $107.0 billion in outlays over five years. It fully funds the President's budget request for the IRS, including additional resources available through a discretionary cap adjustment (included in Function 920) that directs $490 million to IRS enforcement activities. The conference agreement includes a deficit-neutral reserve fund to accommodate legislation that provides for the reauthorization of the Secure Rural Schools and Community Self-Determination Act of 2000, or makes changes to the Payments in Lieu of Taxes Act of 1976, or both. NET INTEREST: FUNCTION 900 Function Summary The Net Interest function is entirely mandatory with no discretionary components. It consists primarily of the interest paid by the federal government to private and foreign government holders of U.S. Treasury securities. It includes the interest on the public debt after deducting the interest income received by the federal government from trust fund investments, loans and cash balances, and earnings of the National Railroad Retirement Investment Trust. House-passed Resolution For the unified budget, the House resolution calls for a total of $216.8 billion in BA and outlays for 2009, and for $1.3 trillion in BA and outlays over five years. (The budget resolution provides only the on-budget amounts, which are $334.2 billion in BA and outlays for 2009, and $2.0 trillion in BA and outlays over five years.) Since 2001, the federal government's net interest payments on its debt have grown dramatically, becoming one of the largest and fastest-growing components of the federal budget, exceeding spending on education, veterans' affairs, and homeland security combined. Senate-passed Resolution The Senate resolution calls for BA and outlays of $217.7 billion in unified net interest payments in 2009 and a total of $1.3 trillion over five years. (The on-budget totals for BA and outlays are $335.1 billion for 2009 and $2.0 trillion over five years.) Conference Agreement For the unified budget, the conference agreement calls for a total of $217.0 billion in BA and outlays for 2009, and for $1.3 trillion in BA and outlays over five years. (The on- budget amounts are $334.4 billion in BA and outlays for 2009, and $2.0 trillion in BA and outlays over five years.) ALLOWANCES: FUNCTION 920 Function Summary The Allowances function is used for planning purposes to address the budgetary effects of proposals or assumptions that cross several budget functions. Once such changes are enacted, the budgetary effects are distributed to the appropriate budget function. House-passed Resolution The House resolution calls for a total of $0.0 billion in BA and $0.3 billion in outlays for 2009, and for -$0.8 billion in BA and -$0.3 billion in outlays over five years. The House resolution includes $1.0 billion in 2008 discretionary budget authority to cover unanticipated needs, should they arise. The House resolution also includes $750 million in mandatory savings over six years. These savings reflect a reconciliation instruction to the Ways and Means Committee. To meet the instructions, savings can be achieved in any program within the Committee's jurisdiction, other than Social Security, which reconciliation cannot impact. Senate-passed Resolution The Senate resolution calls for a total of -$14.9 billion in BA and -$4.1 billion in outlays for 2009, and -$49.6 billion in BA and -$43.7 billion in outlays over five years. Conference Agreement The conference agreement includes a total of -$13.2 billion in BA and -$6.5 billion in outlays for 2009, and -$63.2 billion in BA and -$54.8 billion in outlays over five years. These funding levels reflect adjustments for program integrity and other non-security adjustments. UNDISTRIBUTED OFFSETTING RECEIPTS: FUNCTION 950 Function Summary The Undistributed Offsetting Receipts function includes major offsetting receipt items that would distort the funding levels of other functional categories if they were distributed to them. Examples of such items include the employer share of federal employee retirement benefits, outer continental shelf rents and royalties, and the sale of major assets. House-passed Resolution For the unified budget, the House resolution calls for a total of -$81.0 billion in BA and outlays for 2009, and for -$444.9 billion in BA and outlays over five years. (The budget resolution provides only the on-budget amounts, which are -$67.1 billion in BA and outlays for 2009, and -$366.9 billion in BA and outlays over five years.) The negative spending in Function 950 represents CBO's baseline estimate of undistributed offsetting receipts. Senate-passed Resolution The Senate resolution calls for unified undistributed offsetting receipts of $81.0 billion in BA and outlays for 2009 and -$444.9 billion in BA and outlays over five years. (The on- budget totals for BA and outlays are -$67.1 billion for 2009 and -$366.9 billion over five years.) The Senate resolution matches CBO's baseline estimate of undistributed offsetting receipts. Conference Agreement For the unified budget, the conference agreement includes undistributed offsetting receipts of -$81.0 billion in BA and outlays for 2009, and -$444.9 billion in BA and outlays over five years. (The on-budget amounts are -$67.1 billion in BA and outlays for 2009, and -$366.9 billion in BA and outlays over five years.) OVERSEAS DEPLOYMENTS AND OTHER ACTIVITIES: FUNCTION 970 Function Summary This function includes funding for overseas deployments and other activities. House-passed Resolution The House resolution includes, as a placeholder, an amount equal to the President's pending request for 2008 and 2009 to account for any future House consideration of appropriations for overseas deployments and other activities. Senate-passed Resolution The Senate resolution did not include Function 970. Conference Agreement The conference agreement includes Function 970 in an amount equal to the President's pending request for 2008 and 2009 as a placeholder to account for any future consideration of appropriations for overseas deployments and other activities. RECONCILIATION House-passed Resolution Section 201 of the House-passed resolution contains reconciliation instructions. Reconciliation is a special congressional procedure used to implement the spending and revenue targets in a budget resolution. The instructions direct a committee to make changes in laws under its jurisdiction that affect revenues or direct spending to achieve a specified budgetary result. The legislation used to implement those instructions is reported as a reconciliation bill. Section 201 contains two separate instructions to the House Committee on Ways and Means. Subsection (a) directs the Committee to report a measure by September 12, 2008, that reduces direct spending by $750 million for the period of 2008 through 2013. Subsection (b) directs the Committee to report a measure by July 15, 2008, to decrease revenues by $70 billion in 2009 and to increase revenues by $70 billion for the period of 2010 through 2013. When only one committee receives an instruction the measure is reported directly to the House. Last year the House adopted a rule relating to reconciliation instructions (clause 7, Rule XXI). The rule requires that any reconciliation instruction must not increase the deficit or reduce the surplus over the pay-as-you-go time periods. These instructions satisfy the requirement established under clause 7 of Rule XXI. Senate-passed Resolution The Senate resolution did not include any reconciliation instructions. Conference Agreement The conference agreement does not include any reconciliation instructions. RESERVE FUNDS The House and the Senate use reserve funds in connection with consideration of deficit-neutral legislation that complies with each chamber's rules. The conference agreement therefore contains reserve funds for the House and for the Senate to address the rules and procedures that apply in each chamber. House-passed Resolution Sec. 301. Deficit-neutral reserve fund for the State Children's Health Insurance Program The reserve fund accommodates legislation, within the jurisdiction of the Committee on Energy and Commerce, of up to $50 billion in additional outlays to improve children's health through reauthorization of the State Children's Health Insurance Program (SCHIP) as long as the authorizing legislation placed before the House complies with the pay-as- you-go principle. These additional resources will sustain current caseloads, expand coverage, and reduce the number of uninsured children. There are over nine million uninsured children in this nation. Last year, Congress twice passed bipartisan legislation that would have expanded coverage to nearly four million additional children if the President had not twice vetoed the legislation. Sec. 302. Deficit-neutral reserve fund for veterans and servicemembers The reserve fund accommodates legislation that enhances medical care for wounded or disabled military personnel or veterans; maintains affordable health care for military retirees and veterans; improves disability benefits or evaluations for wounded or disabled military personnel or veterans, including measures to expedite the claims process; expands eligibility to permit additional disabled military retirees to receive both disability compensation and retired pay; eliminates the offset between Survivor Benefit Plan annuities and veterans' Dependency and Indemnity Compensation; or provides or increases benefits for Filipino veterans of World War II or their survivors and dependents, to the extent that any such legislation complies with the pay-as-you-go principle. Sec. 303. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families The reserve fund accommodates legislation that enhances education benefits or assistance for servicemembers, members of the National Guard, reservists, veterans, or their spouses, survivors, or dependents, to the extent that such legislation complies with the pay-as-you-go principle. Among the proposals that the reserve fund could accommodate is H.R. 3882, which would address a provision in law that results in certain members of the National Guard and Reserves receiving less in Montgomery GI bill (MGIB) education benefits than servicemembers who served about the same amount of time on active duty. The current requirement for receiving full MGIB benefits is active-duty service of 24 months. Sec. 304. Deficit-neutral reserve fund for infrastructure investment The reserve fund accommodates legislation that provides for increased investment in infrastructure projects, so long as it complies with the pay-as-you-go principle. The fund accommodates new investment in highways, bridges, transit, rail, aviation, ports, waterways, and water treatment facilities, among other types of infrastructure. Sec. 305. Deficit-neutral reserve fund for renewable energy and energy efficiency The reserve fund accommodates legislation that provides tax incentives for or otherwise encourages the production of renewable energy or increased energy efficiency; encourages investment in emerging energy or vehicle technologies or carbon capture and sequestration; provides for reductions in greenhouse gas emissions; or facilitates the training of workers for these industries (green collar jobs), to the extent that any such legislation complies with the pay-as-you-go principle. For example, one item that the reserve fund could accommodate is extension of the solar energy and fuel cell investment tax credit. Sec. 306. Deficit-neutral reserve fund for middle-income tax relief and economic equity The reserve fund for middle-income tax relief supports legislation to reduce tax burdens on middle-income families and taxpayers that complies with the pay-as-you-go principle. This includes legislation such as the extension of the 10 percent individual income tax rate, marriage penalty relief, the child tax credit, the research and experimentation tax credit, the deduction for small business expensing, and the deduction for State and local sales taxes. It also accommodates elimination of estate taxes on all but a minute fraction of estates, and a tax credit for school construction. Sec. 307. Deficit-neutral reserve fund for reform of the alternative minimum tax The reserve fund for Alternative Minimum Tax (AMT) relief accommodates legislation that reforms the tax code to shield middle-income families from the AMT as long as it adheres to the pay-as-you-go principle. Without reform, the number of taxpayers subject to the AMT will rise from 4.2 million in 2007 to 25.7 million in 2008 and to 28.3 million in 2009, according to the Joint Committee on Taxation. Sec. 308. Deficit-neutral reserve fund for higher education The reserve fund accommodates reforms to the student loan programs or changes in law that increase benefits to students, consistent with the pay-as-you-go principle adopted by the House. Both the House and the Senate have passed bills to reauthorize the Higher Education Act, and this reserve fund will provide committees maximum flexibility in finding offsets to make college more affordable and accessible for students. Sec. 309. Deficit-neutral reserve fund for affordable housing The reserve fund accommodates legislation that creates an affordable housing fund, offset by savings from reforming the regulation of certain government-sponsored entities, such as Fannie Mae and Freddie Mac, to the extent that such legislation complies with the pay-as-you-go principle. Sec. 310. Deficit-neutral reserve fund for Medicare improvements The reserve fund accommodates additional mandatory spending for Medicare program improvements such as increasing the Medicare reimbursement rate for physicians while holding beneficiaries harmless from associated premium increases, as long as the legislation is consistent with the House pay-as- you-go principle. Under current law, physicians face a 10.6 percent cut in their Medicare payment rate on July 1 of this year, and further cuts every year through 2016. The reserve fund also accommodates other program improvements, such as greater access to preventive benefits; additional assistance for low-income beneficiaries; and better efficiencies within the Part D program, such as prompt payment of prescription drug claims; as long as the legislation is consistent with the pay- as-you-go principle. Sec. 311. Deficit-neutral reserve fund for health care quality, effectiveness, and efficiency The reserve fund accommodates legislation that: provides incentives or other support for adoption of modern health information technology; establishes a new federal or public- private initiative for research on the comparative effectiveness of different medical interventions; or that provides parity between health insurance coverage of mental health benefits and benefits for medical and surgical services, including parity in public programs; as long as the legislation is consistent with the House pay-as-you-go principle. Sec. 312. Deficit-neutral reserve fund for Medicaid and other programs The reserve fund accommodates legislation that prevents or delays the implementation or administration of regulations or administrative actions affecting Medicaid, SCHIP, or other programs, as well as extension of the Transitional Medical Assistance (TMA) or Qualified Individuals (QI) programs, as long as the legislation complies with the pay-as-you-go principle. TMA provides temporary Medicaid assistance for families transitioning to the workforce and QI provides premium assistance for lower-income Medicare beneficiaries. Sec. 313. Deficit-neutral reserve fund for trade adjustment assistance and unemployment insurance modernization The reserve fund accommodates legislation to reauthorize and expand the trade adjustment assistance program (TAA) and modernize the unemployment insurance (UI) system, consistent with the pay-as-you-go rule adopted by the House. Last year, the House passed legislation that included much-needed reforms to substantially increase the number of workers able to receive needed income support and job training. Sec. 314. Deficit-neutral reserve fund for county payments legislation The reserve fund accommodates any legislation that reauthorizes the Secure Rural Schools and Community Self- Determination Act (Public Law 106-393) or makes changes to the Payments in Lieu of Taxes Act of 1976 (Public Law 94-565), to the extent that such legislation complies with the pay-as-you- go principle. Public Law 106-393 provides economic assistance for roads and schools in rural communities affected by the loss of receipts from sales on federal lands in their communities. Federal payments under Public Law 94-565 to local governments are designed to offset lost property tax revenue from federal lands within the localities. Both forms of assistance are intended to compensate local governments for the tax-exempt status of the national forests and other federal lands. Sec. 315. Deficit-neutral reserve fund for San Joaquin River restoration and Navajo Nation water rights settlements The reserve fund accommodates legislation that would fulfill the purposes of the San Joaquin River Restoration Settlement Act, implement a Navajo Nation water rights settlement as authorized by the Northwestern New Mexico Rural Water Projects Act, or both, to the extent that the legislation complies with the pay-as-you-go principle. Sec. 316. Deficit-neutral reserve fund for the National Park Centennial Fund The reserve fund accommodates any legislation that provides for the establishment of the National Park Centennial Fund, so long as it complies with the pay-as-you-go principle. The Centennial Fund would provide additional funding for specific Interior-approved, community-supported projects within the National Park system to improve parks and provide better visitor experiences. Sec. 317. Deficit-neutral reserve fund for child support enforcement The reserve fund accommodates legislation to increase the number of children who receive the full child support that is owed to them by enhancing federal collection efforts or supporting state initiatives to pass through 100 percent of collected child support to families, as long as the legislation complies with the pay-as-you-go principle. For every dollar the federal government spends on child support enforcement, $6.50 is collected on behalf of working families. Last year, the child support enforcement system collected $22 billion in private support for 17 million children. Senate-passed Resolution Sec. 301. Strengthening and stimulating the American economy and providing economic relief to American families (a) Tax Relief. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for one or more pieces of tax relief legislation, which may include extensions of expiring tax cuts and reinstatement of expired tax relief, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (b) Manufacturing. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation aimed at revitalizing the manufacturing sector in the United States, which may include tax incentives, increased research and development, and other important support, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (c) Housing. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide housing assistance, which may include low-income rental assistance, or establish an affordable housing fund to finance low-income housing investments, financed by contributions from the government-sponsored enterprises or other sources, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (d) Flood Insurance Reform. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation that authorizes flood insurance reform and modernization, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (e) Trade. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation to address our nation's trade agreements, preferences, sanctions, enforcement, or customs laws, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (f) Economic Relief for American Families. The Senate- passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation in the following areas, provided it is deficit-neutral over the total of 2008-2013 and 2008-2018: (1) TANF--legislation reauthorizing Temporary Assistance for Needy Families supplemental grants or making improvements to the TANF program, child welfare programs, or child support enforcement. The legislation for improving child welfare includes steps to help support foster children being raised by grandparents, older youth aging out of foster care, and other improvements in child welfare financing to prevent child abuse and neglect and promote permanent families for children. In addition, legislation that strengthens support for treatment options for families struggling with substance abuse and addiction, and in particular takes steps to prevent the increased use of methamphetamines as well as provides treatment for addicted individuals and families can be accommodated within this reserve fund to improve child welfare. (2) Child Care--legislation providing up to $5 billion for the child care entitlement to states. (3) Emergency Food Assistance--legislation providing up to $40 million for the emergency food assistance program. (4) Unemployment Compensation--legislation improving the unemployment compensation program. (5) TAA--legislation reauthorizing trade adjustment assistance programs. (g) America's Farms and Rural America. (1) Farm Bill. The Senate-passed resolution allows the Chairman of the Budget Committee to revise the levels in the resolution for legislation to reauthorize agricultural programs, address the needs of rural America, promote new sources of renewable energy from U.S. farm products, provide an economic safety net for agricultural producers, enhance the stewardship of our natural resources, address domestic nutrition needs, increase agricultural research, and improve our export competitiveness, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (2) County Payments. The Senate-passed resolution includes a deficit-neutral reserve fund allowing the Chairman of the Budget Committee to revise the levels and limits in the resolution for legislation that provides for the reauthorization of the Secure Rural Schools and Community Self- Determination Act of 2000, makes changes to the Payments in Lieu of Taxes Act of 1976, or both, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 302. Improving education The Senate-passed resolution includes deficit-neutral reserve funds allowing the Chairman of the Budget Committee to revise the levels in the resolution for-- (a) legislation to make higher education more accessible or more affordable, which may include increasing funding for the federal Pell Grant program or increasing federal student loan limits, modernize school facilities through renovation or construction bonds, reduce the cost to teachers of out-of-pocket expenses for school supplies, or provide tax incentives for highly-qualified teachers to serve in high-needs schools; and (b) legislation to improve student achievement during secondary education-- provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 303. Investing in infrastructure The Senate-passed resolution provides a reserve fund allowing the Chairman of the Budget Committee to revise the levels and limits in the resolution for legislation to provide a sustained, robust federal investment in our nation's infrastructure, which may include transit, housing, energy, water, highways, bridges, or other important infrastructure projects, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 304. Investing in clean energy, preserving the environment, and providing for certain settlements (a) Energy and the Environment: The Senate-passed resolution includes a deficit-neutral reserve fund that will allow the Chairman of the Budget Committee to revise the levels and limits in the resolution for energy legislation or environmental legislation that would decrease greenhouse gas emissions, reduce our nation's dependence on imported energy, produce ``green'' jobs, or protect national parks, oceans, or coastal areas, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. The legislation may include tax provisions. (b) Settlements: The Senate-passed resolution includes a deficit-neutral reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation to carry out the San Joaquin River Restoration Settlement Act, or legislation to implement a Navajo Nation water rights settlement and other provisions authorized by the Northwestern New Mexico Rural Water Projects Act, provided the legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 305. Providing for America's veterans, wounded servicemembers, and a post-9/11 G.I. bill The Senate-passed resolution includes deficit-neutral reserve funds allowing the Chairman of the Budget Committee to revise the levels in the resolution for-- (a) Veterans and Wounded Servicemembers: Legislation that would-- (1) enhance medical care, disability evaluations, or disability benefits for wounded or disabled military personnel or veterans; (2) provide for or increase benefits to Filipino veterans of World War II, their survivors and dependents; (3) allow for the transfer of education benefits from servicemembers to family members or veterans (including the elimination of the offset between Survivor Benefit Plan annuities and veterans' dependency and indemnity compensation); (4) provide for continuing payment to Armed Forces Members retired or separated due to combat-related injury after September 11, 2001, of bonuses they were entitled to prior to retirement or separation; or (5) enhance availability of health care and other services for veterans in rural areas --provided the legislation does not include increased fees charged to veterans for pharmacy co-payments, annual enrollment, or other third-party insurance payment offsets, and provided it is deficit-neutral over the total of 2008-2013 and 2008-2018. (b) A Post-9/11 G.I. Bill: Legislation to enhance educational benefits of servicemembers and veterans with service on active duty in the Armed Forces on or after September 11, 2001, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 306. Improving America's health The Senate-passed resolution includes deficit-neutral reserve funds allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation in the following areas, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. (a) SCHIP: Legislation to reauthorize the State Children's Health Insurance Program, expand coverage of the estimated six million children eligible but not enrolled in either SCHIP or Medicaid, and maintain coverage for all currently-enrolled children. (b) Medicare Improvements-- (1) Physician Payments: Legislation to increase the reimbursement rate for physician services under Medicare Part B. Under current law, without further Congressional action, physician payments under Medicare Part B will be cut over ten percent on July 1, 2008, and an additional five percent in subsequent years. The President's budget does not propose to prevent this cut. If no adjustments are made, over time, more and more physicians will stop providing services to Medicare patients, reducing seniors' access to care. (2) Other Medicare Improvements: Legislation to make other improvements to the Medicare program, including improvements to the prescription drug benefit under Medicare Part D, adjustments to the Medicare Savings Program, reductions to beneficiary cost-sharing for preventive benefits under Medicare Part B, and to encourage physicians to train in primary care residencies and attract more physicians and other health care providers to States that face a shortage of health care providers. (3) Electronic Prescribing: Legislation to promote deployment and use of electronic prescribing technologies. (4) Rural Equity Payment Policies: Legislation to preserve existing Medicare payment provisions supporting rural health care and promote Medicare payment policies that increase access to quality health care in isolated and undeserved rural areas. (5) Medicare Low-Income Programs: Legislation making improvements to the Medicare Savings Program and the Medicare Part D low-income subsidy program. (c) Health Care Quality, Effectiveness, Efficiency, and Transparency, including: (1) Comparative Effectiveness Research: Legislation to establish a new federal or public-private initiative for comparative effectiveness research. (2) Improving the Health Care System: Legislation to create a framework and parameters for the use of Medicare data for the purpose of conducting research, public reporting, and other activities to evaluate health care safety, effectiveness, efficiency, quality, and resource utilization in federal programs and the private health care system, while protecting the privacy of beneficiaries and other proprietary information. (3) Health Information Technology and Best Practices-- (A) Health Information Technology: Legislation to provide incentives or other support for adoption of modern health information technology, including the adoption of electronic prescribing technology, to improve quality and protect privacy in health care, such as activities by the Department of Defense and the Department of Veterans Affairs to integrate their electronic health record data. (B) Best Practices: Legislation that provides for payments that are based on adherence to clinical ``best practices.'' (d) FDA, including: (1) Regulation: Legislation that authorizes the Food and Drug Administration (FDA) to regulate products and assess user fees on manufacturers and importers of these products to cover the cost of FDA's regulatory activities, and (2) Drug Importation: Legislation allowing for the safe importation of prescription drugs approved by the FDA. (e) Medicaid, including: (1) Rules or Administrative Actions: Legislation addressing certain rules or administrative actions, and (2) TMA: Legislation extending the Transitional Medical Assistance program. (f) Other Improvements in Health, including legislation making health insurance coverage more affordable and available to small businesses and their employees, improving health care and provide quality health insurance for the uninsured and underinsured, reauthorizing special diabetes programs, improving long-term care, or providing for mental health parity. (g) Pediatric Dental Care, for legislation providing for improved access to pediatric dental care for children from low- income families. The Senate recognizes the importance of pediatric dental services in the overall health of children and the potential preventative dental care services have to save costs in the long run. However, access to pediatric dental services can be improved. For example, community-based dental clinics cite low reimbursement as a strain on their ability to treat uninsured patients and improve access to Medicaid and SCHIP beneficiaries. To address this issue, the Senate-passed resolution includes a deficit-neutral reserve fund for legislation to improve pediatric oral health and increase access to such services, including adequately compensating qualified dental clinics and other oral health providers for treatment of children from low-income families. Sec. 308. Judicial pay and judgeships The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that authorizes salary adjustments for justices and judges of the United States or increases the number of federal judgeships, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 309. Reforming the AMT for individuals The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would reinstate the pre-1993 rates for the alternative minimum tax for individuals, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 310. Repealing the 1993 increase in the income tax on Social Security benefits The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would repeal the 1993 increase in the income tax on Social Security benefits, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 311. Improving energy efficiency and production The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation including specific proposals to improve energy efficiency and production, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 312. Immigration reform and enforcement The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide increased border security, immigration law enforcement, staffing, reform measures, and penalties against employers hiring undocumented immigrants; prohibit employers hiring undocumented immigrants from receiving federal contracts; provide funding for enforcing sanctions against such employers; deploy National Guard troops to the northern or southern borders of the U.S. under certain circumstances; evaluate noncitizen prison populations for removable criminal aliens; or implement exit data, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 313. Border security, immigration enforcement, and criminal alien removal The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that funds border security, immigration enforcement, and criminal alien removal programs, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 314. Science parks The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that provides grants and loan guarantees for developing and constructing science parks to promote innovation through high technology, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 315. Pilot program for background checks on long-term care employees The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that provides for a three-year extension of the pilot program for national and state background checks on direct patient access employees of long-term care facilities or providers under section 307 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and removes the limit on the number of participating states under the pilot program, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 316. Studying the effect of cooperation with local law enforcement The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that requires an assessment of the impact of local ordinances prohibiting cooperation with the Department of Homeland Security regarding the effectiveness of law enforcement, success rates of criminal prosecutions, reporting of criminal activities by immigrant victims of crime, and level of public safety; changes in the number of reported incidents or complaints of racial profiling; or wrongful detention of U.S. citizens and lawful permanent residents, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 317. Terminating deductions from mineral revenue payments to states The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would terminate the authority to deduct certain amounts from mineral revenues payable to states, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 318. Establishing state internet sites for disclosure of information regarding payments made under the state Medicaid program The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution if legislation is reported by the Finance Committee that provides for states to disclose through a publicly accessible internet site institutional providers receiving payment under the state Medicaid program, amounts paid to each provider each year, the number of patients treated by each provider, and the dollar amount paid per patient to each provider, provided that the Finance Committee is within its committee allocation pursuant to section 302(a) of the Congressional Budget Act of 1974 and such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 319. Traumatic brain injury The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide at least $9 million for 2009 to fund traumatic brain injury programs, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 320. Improving the animal health and disease program The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would fully fund the animal health and disease program, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 321. Implementing yellow ribbon reintegration program for National Guard and Reserve members The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide for implementation of the Yellow Ribbon Reintegration Program for members of the National Guard and Reserve, provided such legislation is deficit-neutral over the total of 2008-2013. Sec. 322. Reimbursing states for costs of housing undocumented criminal aliens The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would reimburse states and local governments for costs incurred to house undocumented criminal aliens, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 323. Acceleration of phased-in eligibility for concurrent receipt of benefits The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would change the date from December 31, 2013, to September 30, 2008, by which eligibility of members of the Armed Forces for concurrent receipt of retired pay and veterans' disability compensation would be fully phased in, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 324. Increased use of recovery audits The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would achieve savings by requiring agencies to increase their use of recovery audits and use those savings to reduce the deficit, provided such legislation would not increase the deficit over the total of 2008-2013 or 2008-2018. Sec. 325. Food safety The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would expand FDA and Department of Agriculture food safety inspection services, develop risk-based approaches to inspecting domestic and imported food products, provide for infrastructure and information technology systems to enhance the safety of the food supply, expand scientific capacity and training, invest in improved surveillance and testing technologies, provide for foodborne illness awareness and education, and enhance the FDA's recall authority, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 326. Demonstration project regarding Medicaid coverage of low-income HIV-infected individuals The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide for a demonstration project under which a state may apply to provide medical assistance under a state Medicaid program to HIV-infected individuals who are otherwise ineligible for such medical assistance, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 327. Reducing the income threshold for the refundable child tax credit The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would reduce the income threshold for the refundable child tax credit to $10,000 for 2009 and 2010 with no inflation adjustment, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 329. Education reform The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would promote flexibility in federal education programs, restore state and local authority in education, ensure that public schools are held accountable for results, and prevent discrimination against homeschoolers, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 330. Processing naturalization applications The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would provide for adjudication of name check and security clearances by the FBI or provide for adjudication of applicants, including interviewing and swearing-in of applicants by the Department of Homeland Security/U.S. Citizenship and Immigration Services by October 1, 2008, for individuals who have submitted applications for naturalization before March 1, 2008, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 331. Access to quality and affordable health insurance The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would promote choice and competition to drive down costs and improve access to health care for all Americans without increasing taxes, strengthen health care quality by promoting wellness and empowering consumers with information on quality and cost, protect Americans' economic security from catastrophic events by expanding insurance options and improving health insurance portability, and promote advanced research and development of new treatments and cures, provided such legislation is deficit- neutral over the total of 2008-2013 and 2008-2018. Sec. 332. 9/11 health program The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution if the HELP Committee reports legislation to establish a program that includes medical monitoring and treatment to address adverse health impacts linked to the September 11, 2001 attacks, and if the HELP Committee finds that previously spent World Trade Center Health Program funds were used to provide screening, monitoring, and treatment services and directly related program support, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Sec. 333. Banning Medicare Advantage and Medicare prescription drug plan sales and marketing abuses The Senate-passed resolution includes a reserve fund allowing the Chairman of the Budget Committee to revise the levels in the resolution for legislation that would limit inappropriate or abusive marketing tactics by private insurers and their agents offering Medicare Advantage or Medicare prescription drug plans by enacting recommendations agreed to by leaders of the health insurance industry on March 3, 2008, provided such legislation is deficit-neutral over the total of 2008-2013 and 2008-2018. Conference Agreement Title II of the conference agreement contains reserve funds. Subtitle A: House reserve funds Subtitle A of the conference agreement contains the following reserve funds that apply only in the House: Sec. 201. Deficit-neutral reserve fund for SCHIP legislation (Sec. 301 of the House-passed resolution) Sec. 202. Deficit-neutral reserve fund for America's veterans and servicemembers (Sec. 302 of the House-passed resolution, as modified) Sec. 203. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families (Sec. 303 of the House-passed resolution, as modified) Sec. 204. Deficit-neutral reserve fund for infrastructure investment (Sec. 304 of the House-passed resolution, as modified) Sec. 205. Deficit-neutral reserve fund for renewable energy and energy efficiency (Sec. 305 of the House-passed resolution) Sec. 206. Deficit-neutral reserve fund for middle- income tax relief and economic equity (Sec. 306 of the House-passed resolution) Sec. 207. Deficit-neutral reserve fund for reform of the alternative minimum tax (Sec. 307 of the House- passed resolution) Sec. 208. Deficit-neutral reserve fund for higher education (Sec. 308 of the House-passed resolution) Sec. 209. Deficit-neutral reserve fund for affordable housing (Sec. 309 of the House-passed resolution) Sec. 210. Deficit-neutral reserve fund for Medicare improvements (Sec. 310 of the House-passed resolution, as modified) Sec. 211. Deficit-neutral reserve fund for health care quality, effectiveness, and efficiency (Sec. 311 of the House-passed resolution, as modified) Sec. 212. Deficit-neutral reserve fund for Medicaid and other programs (Sec. 312 of the House-passed resolution, as modified) Sec. 213. Deficit-neutral reserve fund for a 9/11 health program (Sec. 332 of the Senate-passed resolution, as modified) Sec. 214. Deficit-neutral reserve fund for trade adjustment assistance and unemployment insurance modernization (Sec. 313 of the House-passed resolution) Sec. 215. Deficit-neutral reserve fund for county payments legislation (Sec. 314 of the House-passed resolution) Sec. 216. Deficit-neutral reserve fund for San Joaquin River restoration and Navajo Nation water rights settlements (Sec. 315 of the House-passed resolution, as modified) Sec. 217. Deficit-neutral reserve fund for the National Park Centennial Fund (Sec. 316 of the House- passed resolution) Sec. 218. Deficit-neutral reserve fund for child support enforcement (Sec. 317 of the House-passed resolution) Sec. 219. Deficit-neutral reserve fund for children and families (Sec. 301(f) of the Senate-passed resolution, as modified) Sec. 220. Reserve fund adjustment for revenue measures in the House Last year, section 321 of the Conference Report to accompany S. Con. Res. 21 created a reserve fund for consideration of any revenue measure (including a conference report) in the House. This section supersedes last year's provision. It applies to revenue measures that would increase the deficit or reduce the surplus in violation of the House PAYGO rule and would reduce revenues below the revenue levels for the period of fiscal years 2009 through 2013 as measured against the Congressional Budget Office baseline used for consideration of this concurrent resolution. The revenue measure can become effective only upon certification by the Secretary of the Treasury and the Director of the Office of Management and Budget that any reduction in revenues for the period comprising the fiscal years through 2013 will not exceed the lesser of $340.570 billion or 80 percent of the sum of the unified budget surplus for fiscal years 2012 and 2013, as estimated by them no earlier than October 1, 2009. If this certification provision is not included in the language of the measure, the Chairman of the House Budget Committee will adjust aggregate revenue levels in the resolution to create a point of order in the House against the measure under section 311 of the Congressional Budget Act. The Chairman would readjust the levels upon disposition of any measure considered in violation of this section. This point of order would be in addition to a House PAYGO point of order, which lies against any bill that is not deficit-neutral over the periods specified in the PAYGO rule, notwithstanding any other provisions of this conference agreement. Any measure, including a conference report, that is in violation of the PAYGO rule and decreases revenues in fiscal years 2009 through 2013 below the CBO baseline for that period, would have this additional point of order against it in the House, unless the measure includes a provision consistent with the following: None of the provisions of this Act or amendments made by it shall have legal force or effect unless on or after October 1, 2009, the Secretary of the Treasury and the Director of the Office of Management and Budget project a unified budget surplus for the fiscal years 2012 and 2013, estimate the budgetary impact of this Act, and certify by a joint communication, published in the Federal Register, that the estimated reduction in revenues for the period comprising the fiscal years through 2013 resulting from this Act (including any amendments made by this Act) will not exceed the lesser of $340.570 billion or 80 percent of the sum of the projected unified surplus for fiscal years 2012 and 2013. Section 220 is a reserve fund that applies in the House only. It does not apply in the Senate. Its inclusion in this conference report, and the inclusion of the above language by the House of Representatives in this joint statement regarding the operation of this section in the House, is not to be construed as setting any procedural precedent in the Senate and does not reflect the Senate's agreement to any provisions in any conference agreement on revenue measures that are affected in the House by the requirements of this reserve fund. Subtitle B: Senate reserve funds Subtitle B of the conference agreement contains the following reserve funds that apply only in the Senate: Sec. 221. Deficit-neutral reserve fund to strengthen and stimulate the American economy and provide economic relief to American families (Sec. 301 of the Senate-passed resolution, as modified) Sec. 222. Deficit-neutral reserve fund for improving education (Secs. 302 and 329 of the Senate- passed resolution, as modified) Sec. 223. Deficit-neutral reserve fund for investments in America's infrastructure (Sec. 303 of the Senate-passed resolution) Sec. 224. Deficit-neutral reserve fund to invest in clean energy, preserve the environment, and provide for certain settlements (combines provisions from Sec. 304 and Sec. 311 of the Senate-passed resolution, as modified) Sec. 225. Deficit-neutral reserve fund for America's veterans and servicemembers (Sec. 305(a) of the Senate-passed resolution, as modified) Sec. 226. Deficit-neutral reserve fund for education benefits for servicemembers, veterans, and their families (Sec. 305(b) of the Senate-passed resolution, as modified) Sec. 227. Deficit-neutral reserve fund to improve America's health (Secs. 306, 315, and 333 of the Senate-passed resolution, as modified) Sec. 228. Deficit-neutral reserve fund for reform of the alternative minimum tax (Sec. 309 of the Senate- passed resolution, as modified) Sec. 229. Deficit-neutral reserve fund for judicial pay and judgeships (Sec. 308 of the Senate-passed resolution) Sec. 230. Deficit-neutral reserve fund for immigration enforcement and reform (replaces Secs. 312, 313, 316, 322, and 330 of the Senate-passed resolution) Sec. 231. Deficit-neutral reserve fund for science parks (Sec. 314 of the Senate-passed resolution, as modified) Sec. 232. Deficit-neutral reserve fund to terminate deductions from mineral revenue payments to States (Sec. 317 of the Senate-passed resolution, as modified) Sec. 233. Deficit-neutral reserve fund for increased used of recovery audits (Sec. 324 of the Senate-passed resolution) Sec. 234. Deficit-neutral reserve fund for food safety (Sec. 325 of the Senate-passed resolution, as modified) Sec. 235. Deficit-neutral reserve fund for demonstration project regarding Medicaid coverage of low-income HIV-infected individuals (Sec. 326 of the Senate-passed resolution) Sec. 236. Deficit-neutral reserve fund for reducing the income threshold for the refundable child tax credit, and other selected tax relief policies (Sec. 327 of the Senate-passed resolution, as modified) Sec. 237. Deficit-neutral reserve fund for a 9/11 health program (Sec. 332 of the Senate-passed resolution, as modified) Throughout this subtitle, the use of the word ``limits'' refers to the discretionary spending limits in the Senate. BUDGET ENFORCEMENT The House and the Senate use enforcement provisions to ensure that legislation is consistent with the budget plan set forth in the budget resolution. The conference agreement contains enforcement provisions for the House and Senate to accommodate the procedures that apply to consideration of legislation in each chamber. Other provisions applicable in both the House and Senate are included in Subtitle C. House-passed Resolution Sec. 401. Program Integrity Initiatives Section 401 provides for specific allocation adjustments for the Committee on Appropriations when the Committee reports legislation that includes increased appropriations for the following four program integrity initiatives: (1) continuing disability reviews and Supplemental Security Income redeterminations for the Social Security Administration; (2) improved compliance with the provisions of the Internal Revenue Code; (3) the Health Care Fraud and Abuse Control program at the Department of Health and Human Services; and (4) unemployment insurance in-person reemployment and eligibility assessments and improper payment reviews. The adjustments under this section are intended to do no more than provide additional administrative funding for current program integrity activities to eliminate errors or fraud in the operation of a number of federal programs and to promote compliance with federal tax laws. For example, the adjustment for unemployment compensation programs is provided to increase limited administrative funding for current program integrity activities, and not to finance other proposals that would adversely affect workers who have received unemployment benefits. The section outlines procedures for these allocation adjustments. Sec. 402. Oversight of Government Performance Section 402 directs Committees of the House of Representatives to review programs within their jurisdiction for waste, fraud, and abuse and to include recommendations for improved governmental performance in views and estimates submitted to the Budget Committee pursuant to section 301(d) of the Congressional Budget Act. Sec. 403. Advance Appropriations Section 403 limits the amount and type of advance appropriations for fiscal years 2010 and 2011. Under this section, advance appropriations for fiscal year 2010 are restricted to $27.558 billion for the programs, projects, activities, or accounts to be included in the joint explanatory statement of managers to accompany the conference report on this resolution. Advances for 2011 are listed separately. The section defines advance appropriations as any new discretionary budget authority provided in a bill or joint resolution making general or continuing appropriations for fiscal year 2009 that first becomes available for any fiscal year after 2009. Sec. 404. Overseas Deployments and Emergency Needs Section 404 establishes a procedure whereby provisions or measures reported by the Committee on Appropriations will be exempt from the restrictions under titles III and IV of the Congressional Budget Act of 1974. The exemption will apply if: (1) the Committee determines and designates that amounts appropriated are necessary for overseas deployments and related activities; or, (2) the Committee provides discretionary appropriations and designates those amounts as necessary to meet emergency needs. Sec. 405. Budgetary Treatment of Certain Discretionary Administrative Expenses Section 405 provides that administrative expenses of the Social Security Administration and of the Postal Service shall be part of the annual appropriations process by including those expenses in the allocation to the Committee on Appropriations pursuant to section 302 of the Congressional Budget Act. Sec. 406. Application and Effect of Changes in Allocations and Aggregates Section 406 details the allocation and aggregate adjustment procedures that are required to accommodate legislation for the reserve funds and program integrity initiatives in this resolution. This section provides that the adjustments shall apply while the legislation is under consideration and take effect upon enactment of the legislation. In addition, the section requires the adjustments to be printed in the Congressional Record. The section also notes that, for purposes of enforcement, aggregate and allocation levels resulting from adjustments made pursuant to this resolution will have the same effect as if adopted in the original levels of Title I of this budget resolution. This section also provides that the Committee on the Budget shall determine the budgetary levels and estimates which are required to enforce points of order under the Congressional Budget Act. Sec. 407. Adjustments to Reflect Changes in Concepts and Definitions Section 407 requires the chairman of the Committee on the Budget to adjust levels and allocations in this budget resolution upon enactment of legislation that changes concepts or definitions. Sec. 408. Exercise of Rulemaking Powers Section 408 provides that, once adopted, the provisions of the budget resolution are incorporated into the rules of the House of Representatives and shall supersede inconsistent rules. The section recognizes the constitutional right of the House of Representatives to change those rules at any time. Senate-passed Resolution The FY2008 budget resolution (S. Con. Res. 21, 110th Congress) included many important enforcement provisions which remain in effect in the Senate. These include: <bullet> The Senate pay-as-you-go point of order (Sec. 201), requiring that new mandatory spending and tax cuts be offset or get 60 votes. The Senate-passed resolution assumed that all existing balances on the Senate pay-as-you-go ledger would be eliminated, and the scorecard reset to zero for 2008-2013 and 2008- 2018; <bullet> The 60-vote point of order against reconciliation increasing the deficit (Sec. 202); <bullet> The 60-vote point of order against emergency designations (Sec. 204); <bullet> Continued 60-vote enforcement of Senate budgetary points of order (Sec. 205); and <bullet> The requirement that the discretionary administrative expenses of the Social Security Administration be included in the Appropriations Committee's 302(a) allocation in any budget resolution (Sec. 210). The Senate-passed resolution for 2009, S. Con. Res. 70, included the following enforcement provisions, most of which updated provisions that were part of the 2008 budget resolution. Subtitle A--Direct Spending and Receipts Sec. 201. Point of order against legislation increasing long-term deficits The Senate-passed resolution included a point of order in the Senate against legislation that would cause a net deficit increase (including changes in revenues and mandatory spending, but excluding debt service) in any of the four consecutive ten- year periods beginning with the first fiscal year that is ten years after the budget year provided for in the most recently- adopted budget resolution (for 2009 these time periods would be 2019-2028, 2029-2038, 2039-2048, and 2049-2058). The point of order could be waived with 60 votes, and it would sunset at the end of 2017. Sec. 202. Point of order--20 percent limit on new direct spending in reconciliation legislation The Senate-passed resolution would create a 60-vote point of order against provisions of any reconciliation legislation that would increase outlays if the effect of all the provisions in any committee's jurisdiction would create gross new direct spending exceeding 20% of the total savings instruction to that committee. Subtitle B--Discretionary Spending Sec. 211. Discretionary spending caps The Senate-passed resolution would strengthen fiscal responsibility by establishing discretionary spending limits for 2008 and 2009, and enforce them with a point of order in the Senate that could only be waived with 60 votes. For 2008, it provides a cap of $1,055.478 billion in budget authority and $1,093.343 billion in outlays. For 2009, it sets a cap of $1,008.482 billion in budget authority and $1,108.449 billion in outlays. As in past years, the Senate resolution would permit adjustments to the discretionary spending limits in 2009 for program integrity initiatives, such as Social Security Administration continuing disability reviews (CDRs) and Supplemental Security Income redeterminations, enhanced Internal Revenue Service tax enforcement to address the tax gap, appropriations for the Health Care Fraud and Abuse Control (HCFAC) program at the Department of Health and Human Services, and unemployment insurance improper payments reviews at the Department of Labor. It also provides for adjustments in 2008 and 2009 for the wars in Iraq and Afghanistan, as well as adjustments in 2009 for comparative effectiveness research at the Agency for Healthcare Research and Quality (AHRQ). The Senate resolution also includes a program integrity cap adjustment dedicated to reducing waste in defense contracting. It allows the Chairman of the Budget Committee to increase the discretionary spending cap by up to $100,000,000 to accommodate legislation appropriating funding for the Department of Defense for additional activities to reduce waste, fraud, abuse, and overpayments in defense contracting; achieve the legal requirement for the Pentagon to submit auditable financial statements; subject contracts performed outside the U.S. to the same requirements as those performed domestically; or improve accounting for and ordering of spare parts. Sec. 212. Advance appropriations As in past years, the Senate-passed resolution provided a supermajority point of order in the Senate against appropriations in fiscal year 2009 bills that would first become effective in any year after fiscal year 2009, and against appropriations in fiscal year 2010 bills that would first become effective in any year after fiscal year 2010. It would not apply against appropriations for the Corporation for Public Broadcasting, nor against changes in mandatory programs or deferrals of mandatory budget authority from one year to the next. There is an exemption for each of fiscal years 2009 and 2010 of up to $29.352 billion for the following: ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE Labor, HHS: Employment and Training Administration Job Corps Education for the Disadvantaged School Improvement Children and Family Services (Head Start) Special Education Career, Technical, and Adult Education Financial Services and General Government: Payment to Postal Service Transportation, Housing and Urban Development: Section 8 Renewals Sec. 213. Appropriations changes in mandatory programs (ChIMPs) with net costs The Senate-passed resolution again included a 60-vote point of order against any provision of appropriations legislation that would have been estimated as affecting direct spending or receipts if it were included in legislation other than appropriations legislation, if all three of the following conditions are met: (1) the provision would increase BA in-- (a) at least one of the nine fiscal years that follow the budget year, and (b) over the period of the total of the budget year and the nine fiscal years following the budget year; (2) the provision would increase net outlays over the period of the total of the nine fiscal years following the budget year; and (3) the sum total of all changes in mandatory programs in the legislation would increase net outlays as measured over the period of the total of the nine fiscal years following the budget year. The point of order would not apply against any ChIMPs that were enacted in each of the three fiscal years prior to the budget year. The point of order works like the Byrd rule in that it applies against individual provisions of legislation rather than against an entire bill, amendment, or conference report. If the point of order is not waived then the offending provision is stricken. Sec. 214. Treatment of Postal Service administrative expenses The 2008 budget resolution included a provision, which remains in effect, requiring that all budget resolutions include the Administrative Expenses of the Social Security Administration in the 302(a) allocations to the Appropriations Committee. The Senate-passed resolution for 2009 included a new, similar requirement, that all budget resolutions include the Administrative Expenses of the Postal Service in the 302(a) allocations to the Appropriations Committee. Subtitle C--Other Provisions Sec. 221. Application and effect of changes in allocations and aggregates This section of the Senate-passed resolution details the adjustment procedures required to accommodate legislation provided for in this resolution, and requires adjustments made to be printed in the Congressional Record. For purposes of enforcement, the levels resulting from adjustments made pursuant to this resolution will have the same effect as if adopted in the levels of Title I of this resolution. The Committee on the Budget of the Senate determines the budgetary levels and estimates required to enforce budgetary points of order, including those pursuant to this resolution and the Congressional Budget Act of 1974. Sec. 222. Adjustments to reflect changes in concepts and definitions This section of the Senate-passed resolution allows the Chairman of the Committee on the Budget to adjust levels in this resolution upon the enactment of legislation that changes concepts or definitions. Secs. 223 and 224. Debt disclosure These sections reflected an amendment adopted in the Senate Budget Committee regarding the levels of debt assumed in the budget resolution and to require budget resolutions to contain a debt disclosure section. Sec. 225. Exercise of rulemaking powers This section of the Senate-passed resolution recognizes that the provisions of this resolution are adopted pursuant to the rulemaking power of the Senate, and also recognizes the Constitutional right of the Senate to change those rules as they apply to the Senate. Sec. 226. Circuit breaker to protect Social Security This section of the Senate resolution would create a 60- vote point of order, in any year in which CBO projects an on- budget deficit for the budget year or any subsequent fiscal year, against a budget resolution for that year (and amendments thereto) which would fail to reduce on-budget deficits relative to CBO's projections and put the budget on a path to achieve on-budget balance within five years. There is an exception during times of war and low economic growth. Conference Agreement Title III contains the following enforcement provisions: Subtitle A: House Enforcement Provisions Sec. 301. Program integrity initiatives and other adjustments (Secs. 401 and 404 of the House-passed resolution, as modified, and Sec. 211(d) of the Senate-passed resolution, as made applicable in the House) Sec. 302. Point of order against advance appropriations (Sec. 403 of the House-passed resolution, as modified) Accounts identified for advance appropriations in the House: Advance Appropriations for Fiscal Year 2010: Employment and Training Administration Job Corps Education for the Disadvantaged School Improvement Children and Family Services (Head Start) Special Education Career, Technical and Adult Education Payment to Postal Service Tenant-based Rental Assistance Project-based Rental Assistance Advance Appropriations for Fiscal Year 2011: The Corporation for Public Broadcasting Subtitle B: Senate Enforcement Provisions The FY2008 budget resolution (S. Con Res. 21, 110th Congress) included many important enforcement provisions which remain in effect in the Senate. These include: <bullet> The Senate pay-as-you-go point of order (Sec. 201), requiring that new mandatory spending and tax cuts be offset or get 60 votes. The Senate-passed resolution assumed that all existing balances on the Senate pay-as-you-go ledger would be eliminated, and the scorecard reset to zero for 2008-2013 and 2008- 2018; <bullet> The 60-vote point of order against reconciliation increasing the deficit (Sec. 202); <bullet> The 60-vote point of order against emergency designations (Sec. 204); <bullet> Continued 60-vote enforcement of Senate budgetary points of order (Sec. 205); and <bullet> The requirement that the discretionary administrative expenses of the Social Security Administration be included in the Appropriations Committee's 302(a) allocation in any budget resolution (Sec. 210). Sec. 311. Senate point of order against legislation increasing long-term deficits (Sec. 201 of the Senate-passed resolution, as modified) Sec. 312. Discretionary spending limits, program integrity initiatives, and other adjustments (Sec. 211 of the Senate-passed resolution, as modified) Sec. 313. Point of order against advance appropriations (Sec. 212 of the Senate-passed resolution, as modified) Accounts identified for advance appropriations in the Senate: Labor, HHS: Employment and Training Administration Job Corps Education for the Disadvantaged School Improvement Children and Family Services (Head Start) Special Education Career, Technical, and Adult Education Financial Services and General Government: Payment to Postal Service Transportation, Housing and Urban Development: Tenant-based Rental Assistance Project-based Rental Assistance Sec. 314. Senate point of order against provisions of appropriations legislation that constitute changes in mandatory programs with net costs (Sec. 213 of the Senate-passed resolution, as modified) Sec. 315. Senate point of order against legislation increasing short-term deficit This section creates a point of order in the Senate against legislation other than appropriations measures that would increase the on-budget deficit by more than $10 billion in any year covered by the budget resolution, unless the legislation is fully offset over the total of all of the years covered by the budget resolution. Its purpose is to complement paygo, by requiring that any measure with a cost of over $10 billion in any year be paid for over the budget window. The point of order can be waived only with 60 votes. Like paygo and other Senate points of order, it will remain in place until September 30, 2017. Subtitle C: Other Provisions Sec. 321. Oversight of government performance (Sec. 402 of the House-passed resolution and Sec. 211(d) of the Senate- passed resolution, as modified) Sec. 322. Budgetary treatment of certain discretionary administrative expenses (Sec. 405 of the House-passed resolution and Sec. 214 of the Senate-passed resolution, as modified) Sec. 323. Application and effect of changes in allocations and aggregates (Sec. 406 of the House-passed resolution and Sec. 221 of the Senate-passed resolution, as modified) Sec. 324. Adjustments to reflect changes in concepts and definitions (Sec. 407 of the House-passed resolution and Sec. 222 of the Senate-passed resolution, as modified) Sec. 325. Exercise of rulemaking powers (Sec. 408 of the House-passed resolution and Sec. 225 of the Senate-passed resolution, as modified) POLICY House-passed Resolution Title V of the House-passed resolution contains the following policy sections: Sec. 501. Policy on middle-income tax relief Sec. 502. Policy on defense priorities Senate-passed Resolution Unlike Title V of the House-passed resolution, the Senate resolution did not contain a policy statement title. Conference Agreement Title IV of the conference agreement contains the following policy sections: Sec. 401. Policy on middle-income tax relief Sec. 401 applies only in the House. The policy of the Senate with regard to middle-income tax relief is as follows: The Senate adopted by a vote of 99 to 1 an amendment to S. Con. Res. 70 as reported by the Senate Committee on the Budget which, with regard to tax relief, reduced the revenue aggregates by $340.570 billion to provide for-- (A) extension of the child tax credit; (B) extension of marriage penalty relief; (C) extension of the 10 percent individual income tax bracket; (D) reform of the estate tax to protect small businesses and family farms; (E) extension of the adoption tax credit; (F) extension of the dependent care tax credit; (G) tax relief for America's troops and veterans; (H) property tax relief for homeowners; (I) expansion of the availability of the child tax credit for low-income families; (J) relief for those whose homes were damaged or destroyed by Hurricanes Katrina and Rita; and (K) other, unspecified tax relief. It is the policy of the Senate that this resolution supports both the enactment of the policies listed above and the Senate pay-as-you-go rule in section 201 of the FY2008 budget resolution (S. Con Res. 21, 110th Congress), and that any additional revenues needed to meet the Senate's tax policy goals can be achieved by closing the tax gap, shutting down abusive tax shelters, addressing offshore tax havens, and without raising taxes. Sec. 402. Policy on defense priorities Sec. 402 applies in both the House and the Senate. SENSE OF THE HOUSE, SENATE, AND CONGRESS House-passed Resolution Title VI of the House-passed resolution contains the following Sense of the House sections: Sec. 601. Sense of the House on the Innovation Agenda and America COMPETES Act Sec. 602. Sense of the House on servicemembers' and veterans' health care and other priorities Sec. 603. Sense of the House on homeland security Sec. 604. Sense of the House regarding long-term fiscal reform Sec. 605. Sense of the House regarding waste, fraud, and abuse Sec. 606. Sense of the House regarding extension of the statutory pay-as-you-go rule Sec. 607. Sense of the House on long-term budgeting Sec. 608. Sense of the House regarding the need to maintain and build upon efforts to fight hunger Sec. 609. Sense of the House regarding affordable health coverage Sec. 610. Sense of the House regarding pay parity Sec. 611. Sense of the House regarding subprime lending and foreclosures Sec. 612. Sense of the House regarding the importance of child support enforcement Senate-passed Resolution Title III of the Senate-passed resolution contains the following Sense of the Senate sections: Sec. 307. Sense of the Senate regarding Medicaid administrative regulations The Senate-passed resolution expresses the sense of the Senate that administrative regulations should not undermine Medicaid's role as a critical component of health care in the United States, cap Medicaid spending or otherwise shift Medicaid cost burdens to state or local governments and their taxpayers and health providers, or undermine the federal guarantee of health insurance coverage that Medicaid provides. Sec. 328. Sense of the Senate regarding diversion of funds set aside for USPTO The Senate-passed resolution expresses the sense of the Senate that none of the funds recommended by this resolution or appropriated or otherwise made available under any other Act to the U.S. Patent and Trademark Office shall be diverted, redirected, transferred, or used for any purpose other than that for which the funds were intended. Sec. 334. Sense of the Senate regarding ``moving to work agreement'' The Senate-passed resolution expresses the sense of the Senate that the Philadelphia Housing Authority should be granted a one-year extension of its ``Moving to Work Agreement'' with the U.S. Department of Housing and Urban Development. Sec. 335. Sense of the Senate regarding balanced budget amendment to the Constitution of the United States The Senate-passed resolution expresses the sense of the Senate that a balanced budget amendment to the Constitution should be voted on at the earliest opportunity. Sec. 336. Sense of the Senate regarding comprehensive legislation to legalize importation of prescription drugs from highly-industrialized countries with safe pharmaceutical infrastructures The Senate-passed resolution expresses the sense of the Senate in support of Senate consideration of comprehensive legislation to legalize the importation of prescription drugs from highly-industrialized countries with safe pharmaceutical infrastructures and create a regulatory pathway to ensure such drugs are safe. Conference Agreement Title V of the conference agreement contains the following sense of the Senate and Congress provisions: Subtitle A: Sense of the Senate Sec. 501. Sense of the Senate regarding Medicaid administrative regulations Subtitle B: Sense of the Congress Sec. 511. Sense of the Congress on servicemembers' and veterans' health care and other priorities Sec. 512. Sense of the Congress on homeland security Sec. 513. Sense of the Congress regarding long-term fiscal reform Sec. 514. Sense of the Congress regarding waste, fraud, and abuse Sec. 515. Sense of the Congress regarding extension of the statutory pay-as-you-go rule Sec. 516. Sense of the Congress on long-term budgeting Sec. 517. Sense of the Congress regarding affordable health coverage Sec. 518. Sense of the Congress regarding pay parity Sec. 519. Sense of the Congress regarding subprime lending and foreclosures Sec. 520. Sense of the Congress regarding the need to maintain and build upon efforts to fight hunger Sec. 521. Sense of the Congress regarding the importance of child support enforcement Sec. 522. Sense of the Congress on the Innovation Agenda and America COMPETES Act ECONOMIC ASSUMPTIONS Section 301(g)(2) of the Congressional Budget Act requires that the joint explanatory statement accompanying a conference report on a budget resolution set forth the common economic assumptions upon which the joint statement and conference report are based. The conference agreement is built upon the economic forecasts developed by the Congressional Budget Office, as updated in March 2008 to include the forecasted economic effects of the fiscal stimulus package. House-passed Resolution CBO's economic assumptions were used. Senate-passed Resolution CBO's economic assumptions were used. Conference Agreement CBO's economic assumptions were used. ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION [Calendar Years] ---------------------------------------------------------------------------------------------------------------- 2008 2009 2010 2011 2012 2013 ---------------------------------------------------------------------------------------------------------------- Real GDP, Percent Change, Year Over Year........................ 1.9 2.3 3.9 3.6 2.7 2.6 GDP Price Index, Percent Change, Year Over Year................. 1.8 1.7 1.9 1.9 1.9 1.9 Consumer Prices, Percent Change, Year Over Year................. 2.8 1.9 1.9 2.1 2.2 2.2 Unemployment Rate, Percent, Yearly Average...................... 5.2 5.5 5.1 4.8 4.8 4.8 3-Month Treasury Bill Rate, Percent, Yearly Average............. 2.1 2.4 4.4 4.6 4.7 4.7 10-Year Treasury Bond Rate, Percent, Yearly Average............. 3.6 3.8 5.0 5.2 5.2 5.2 ---------------------------------------------------------------------------------------------------------------- ALLOCATIONS As required in section 302 of the Congressional Budget Act, the joint statement of managers includes an allocation, based on the conference agreement, of total budget authority and total budget outlays among each of the appropriate committees. The allocations are as follows: <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> PAY-AS-YOU-GO SCORECARD FOR THE SENATE REFLECTING LEVELS FOR THE CONFERENCE AGREEMENT Period of the current fiscal year, the budget year, and the four fiscal years following the budget year: $0. Period of the current fiscal year, the budget year, and the nine fiscal years following the budget year: $0. HOUSE RULE XXVIII The adoption of this conference agreement by the two houses would result in the engrossment of a House Joint Resolution changing the statutory limit on the public debt pursuant to House Rule XXVIII, clause 3. The rule requires a joint resolution in the following form: Resolved, by the Senate and the House of Representatives of the United States in Congress assembled, that 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 in lieu thereof $10,615,000,000,000. Legislative jurisdiction over the public debt remains with the Finance Committee in the Senate and the Committee on Ways and Means in the House. John Spratt, Rosa L. DeLauro, Chet Edwards, Managers on the Part of the House. Kent Conrad, Patty Murray, Ron Wyden, Managers on the Part of the Senate. <all>