[DOCID: f:hr659.110]
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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>